The Bank of Fincastle Announces First Quarter Earnings for 2021

Rhea-AI Summary

The Bank of Fincastle (BFTL) reported a quarterly net income of $345,680 for Q1 2021, reflecting a significant increase of 300% from $86,000 in Q1 2019. Total assets rose to $272.1 million with liabilities at $241.4 million. Key highlights include a 21.5% year-over-year growth in assets and 16.4% in loans. Additionally, 85% of processed PPP loans are anticipated to be forgiven. A shareholder vote for the merger with First National Corporation is scheduled for mid-June 2021.

Positive

• Net income increased 300% to $346,000 from $86,000 in Q1 2019.
• Return on average assets improved to 0.56% from 0.17% in Q1 2020.
• Total assets grew by $48,110,357 or 21.5% year over year.
• Loan growth of $27,816,628 or 16.4% year over year.
• Total deposit growth of $46,429,899 or 24.0% year over year.

Negative

• None.

FINCASTLE, Va., April 29, 2021 /PRNewswire/ -- The Bank of Fincastle [SYMBOL: BFTL] has reported an unaudited quarterly net income of $345,680 for the first quarter of 2021, with assets of $272.1 million and total liabilities of $241.4 million.

"As the COVID-19 pandemic continues to impact our daily lives, we are nonetheless encouraged to see local economic activity returning to more normal levels and improvement in our financial performance.  The level of COVID-19 related payment deferrals decreased in the first quarter and now represent 2.92% of the loan portfolio (net of PPP loans), down 89% from their peak," said Scott Steele, President and CEO.

Steele added, "We continue to help our borrowers with the SBA Paycheck Protection Program (PPP) and out of the 238 PPP loans processed in 2020, 85 percent of the borrowers have applied for and received full loan forgiveness.  At quarter-end, the bank had $25,211,393 in first and second round PPP loans on its books, all which are anticipated to be fully forgiven in 2021.  In January, the bank began receiving applications for the Second Draw PPP.  Since then, we have processed 166 Second Draw PPP loan applications totaling more than $7,761,800."

Regarding the announced merger with First National Corporation Steele commented, "I am pleased to share that things have been progressing on schedule and we are planning a special meeting of the shareholders in mid-June whereby shareholders will have an opportunity to vote for the merger."  Special Meeting Notices along with merger related proxy materials are scheduled to be mailed to the shareholders on or about April 30, 2021.       

Key Highlights

• Net income for the three months ended March 31, 2021 increased 300 percent to $346,000 from $86,000 for the same period in 2019.
• First quarter return on average assets was 0.56% versus 0.17% for the first quarter of 2020. Return on Average Equity was 4.81% versus 1.33% for the same period in 2020.
• Total asset growth was $48,110,357 or 21.5% year over year.
• Loan growth was $27,816,628 or 16.4% year over year.
• Total deposit growth was $46,429,899 or 24.0% year over year.
• OREO was reduced by $878,000 or 71.7% year over year.
• 30-89 past dues were 0.17% at March 31, 2021.

For a detailed news release on our 2021 first quarter 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 email shareholderrelations@bankoffincastle.bank.

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. Headquartered in Fincastle, Virginia, the Bank has six full-service branches, thirteen ATM locations, a 7 am to 7 pm drive through location and offers online deposit account opening, online real-estate and consumer loan applications, online banking, mobile banking and 24/7 telephone banking. To reach one of our professionals visit www.bankoffincastle.bank or call 540-473-2761. 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
cindy.bailey@bankoffincastle.bank

 

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SOURCE The Bank of Fincastle

FAQ

What is The Bank of Fincastle's net income for Q1 2021?

The Bank of Fincastle reported a net income of $345,680 for Q1 2021.

How much has the total asset growth been for BFTL?

Total asset growth for The Bank of Fincastle was $48,110,357 or 21.5% year over year.

What is the current status of the PPP loans processed by BFTL?

85% of the processed PPP loans have applied for and received full loan forgiveness.

When is the shareholder meeting for the merger with First National Corporation?

The special meeting of shareholders for the merger is scheduled for mid-June 2021.

What was BFTL's return on average equity in Q1 2021?

The return on average equity for BFTL was 4.81% in Q1 2021.