The Bank of Fincastle Announces Second Quarter Earnings for 2018
FINCASTLE, Va., July 31, 2018 /PRNewswire/ -- The Bank of Fincastle [SYMBOL: BFTL] has announced its 2018 second quarter financial report and is pleased to report unaudited net income of $226,171 for the quarter ended June 30, 2018. This is a considerable improvement when compared to the second quarter 2017 net income of $17,682.
"We are gaining momentum," said Scott Steele, President and CEO. "Our second quarter earnings reflect the outstanding job our employees have done thus far in 2018. In addition to improving our earnings, we developed and implemented several new product features such as Mobile Deposit, Business Mobile Banking and a rewards program for our debit card users called uChoose Rewards®. We also added the ability to apply for Home Equity Lines and Mortgages online."
In addition to a positive net income for the quarter, other key highlights include an increase in total assets by $3,213,000 and an increase in total deposits by $2,682,000 since December 31, 2017. Asset quality continues to improve with total nonperforming assets being reduced by 12% during the past twelve months. Net interest income has improved as the Bank continues to increase its loan portfolio.
The Bank's strong capital position exceeds the BASEL III capital requirements. As of June 30, 2018 The Bank of Fincastle reported total capital of 16.33% and tier 1 leverage capital of 11.86%. Both common equity tier 1 and tier 1 capital ratios were 15.06%.
Key Highlights
- The bank has achieved two profitable quarters in a row with the 2nd quarter net income representing an improvement of 18.78% over the first quarter net income of $190,406.
- For the first 6 months of the year, we have achieved a Return on Average Assets of 0.45% and Return on Average Equity 3.68%.
- Asset quality continues to improve.
- Quarter end 30-89 day delinquencies are 0.16% of the portfolio vs. 0.52% on 6/30/2017.
- Nonaccrual loans are 2.35% of the loan portfolio, an improvement from 3.02% on 6/30/2017.
- OREO as a percentage of total assets has improved from 3.13% at 6/30/2017 to 2.00% at 6/30/2018.
- Our net interest margin, a key measure which reflects the difference between interest income earned and interest expense paid relative to the banks interest-earning assets, has improved to 3.93% versus 3.37% the same quarter last year.
- Non-interest expense to average assets continues its dramatic improvement as the bank is able to reduce its expenses related to past asset quality issues. At 6/30/2018, non-interest expense to average assets was 3.53% vs. 5.45% on 6/30/2017.
- The bank is seeing steady growth for total assets and total loans. Annualized net growth for total assets was 3.26% and annualized net growth for loans was 4.81%.
- The bank continues to exceed capital requirements.
For a detailed news release on our second quarter 2018 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.
Media Contact:
Cindy Bailey
Marketing Director
540-966-0248
[email protected]
SOURCE The Bank of Fincastle
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