The Bank of Fincastle Announces Third Quarter Earnings for 2020


The Bank of Fincastle [SYMBOL: BFTL] has reported an unaudited quarterly net income of $512,463 for the third quarter of 2020, with assets of $256.9 million and total liabilities of $227.5 million.

"Our essential employees at all levels have accepted the challenges of 2020 with hard work and dedication," said President and CEO Scott Steele. "We are pleased to report a net income of $512,463, up 70.4 percent, net loans at $213.7 million, up 34.8 percent while total deposits ended the quarter at $225.5 million, up 16.8 percent, all increases from the same quarter last year."

"As our market has continued to recover from the economic effects of the pandemic, COVID deferrals are down 72.5 percent from their peak with $31.7 million returning to full payment status and the first scheduled payments received," Steele continued.

"While adjusting to our new working environment and putting in long hours to support our PPP customers, we began processing over 100 forgiveness applications representing $27.5 million in PPP loans, with 30 forgiveness applications already approved," confirmed Steele. "Discounting the impact of the PPP loans, the bank has achieved year-over-year loan growth of 9 percent."

The bank conducted its annual commercial loan portfolio stress test in the 3rd quarter whereby internal credit officers put the bank through various adverse economic scenarios to see if regulatory capital could withstand a severe hypothetical downturn. Commenting on the portfolio stress test Steele stated "Our results confirm The Bank of Fincastle is well capitalized and well positioned to withstand a severe economic downturn. I am pleased to see we once again passed our annual loan portfolio stress test." Consistent with being more encouraged and optimistic about the local economic conditions, allocations to the bank's loan loss reserve were $100,000, which is less than the 2nd quarter allocation of $150,000. At quarter end, The Bank of Fincastle exceeded all Basel III capital requirements.

Key Highlights

  • Net income of $512,463 vs. net income of $300,683 for same quarter last year
  • Third quarter Return on Average Assets was 0.80 percent versus 0.53 percent for the third quarter of 2019.
  • Return on Average Equity was 6.90 percent versus 4.41 percent for the same period in 2019.
  • Year-over-year net loan growth of 34.8 percent, or 8.8 percent discounting the impact of the PPP loans
  • Year-over-year increase in total assets of 20.1 percent and total deposits of 16.8 percent
  • Originated 255 PPP loans totaling $41.8 million in rounds 1 and 2 of the program
  • Total gross PPP fees are forecasted to be approximately $996,000, with earnings recognition amortized through April 2022.
  • Net Interest income and Noninterest income increased 12.81 percent and 21.94 percent respectively.
  • Net Interest Margin increased two basis points in the second quarter to 3.69 percent.

For a detailed news release on our 2020 second quarter earnings, including our income statement and balance sheet please click here or visit our website at

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. 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 or call 540-473-2761. The Bank of Fincastle is a Member FDIC, Equal Housing Lender and Equal Opportunity Employer.

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