FINCASTLE, Va., Jan. 31, 2019 /PRNewswire/ -- The Bank of Fincastle [SYMBOL: BFTL] has announced its 2018 year-end financial report and is pleased to report unaudited net income of $221,672 for the quarter ended December 31, 2018. This is a considerable improvement when compared to the fourth quarter 2017 net loss of $1,072,204.
"Our strategies for growth continue to demonstrate success and we are happy to report The Bank of Fincastle earned a profit each quarter in 2018," said Scott Steele, President and CEO. "Net income for 2018 was $875,000, a dramatic improvement of more than $4.5 million when compared to 2017. We continue to generate positive outcomes with our asset quality control initiatives. For the first time since 2013, the Bank's non-performing assets to total assets ratio is now less than four percent."
Key highlights include an increase in total assets of $6,424,328 and an increase in total deposits of $5,654,941, since December 31, 2017. Asset quality continues to improve with total nonperforming assets being reduced by 44% during the past twelve months. Net interest income has improved as the Bank continues to grow its loan portfolio.
The Bank's strong capital position exceeds the BASEL III capital requirements. As of December 31, 2018 The Bank of Fincastle reported total capital of 16.17% and tier 1 leverage capital of 11.89%. Both common equity tier 1 and tier 1 capital ratios were 14.91%.
- The Bank has achieved four profitable quarters in a row.
- Increase in total assets by $6,424,328 and an increase in total deposits by $5,654,941, since December 31, 2017
- For the year, the Bank has achieved a Return on Average Assets of 0.43% and Return on Average Equity 3.48%.
- Asset quality continues to improve.
- Quarter-end 30-89 day delinquencies are 0.34% of the portfolio vs. 0.32% on 12/31/2017.
- Nonaccrual loans are 2.00% of the loan portfolio, an improvement from 2.91% on 12/31/2017.
- OREO as a percentage of total assets has improved from 2.80% at 12/31/2017 to 1.02% at 12/31/2018.
- Quarterly non-interest income was $261,048, down 9.00% from the same quarter last year. Non-interest income declined as management reorganized a subsidiary company and implemented new strategies to increase noninterest income.
- Quarterly non-interest expense was $1.64 million for the three months ended December 31, 2018 compared to $1.61 million for the three months ended December 31, 2017. Non-interest expense increased primarily due to expenses associated with nonperforming assets. The bank had $64,600 in OREO net losses for the three months ended December 31, 2018 as compared to net gains of $407,007 for the three months ending December 31, 2017.
- The bank continues to exceed capital requirements.
For a detailed news release on our 2018 year-end earnings, including our income statement and balance sheet please click here or visit our website at https://www.bankoffincastle.bank/investor-relations/
For additional information, please contact Scott Steele, President and CEO, at 540-473-2761.
About The Bank of Fincastle
The Bank of Fincastle has been a leading financial services provider in the Roanoke region since 1875, and offers a full range of banking, lending and investment products. The Bank of Fincastle is a Member FDIC, Equal Housing Lender and Equal Opportunity Employer.
Information in this press release may contain forward-looking statements that might involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, and changes in interest rates.
SOURCE The Bank of Fincastle