October 19, 2020
Fauquier Bankshares profit totals $1.5 million in 3Q
File Photo/Lawrence Emerson
For the first nine months of 2020, Fauquier Bankshares reported profits of $4.5 million, compared with $5.2 million a year earlier.
The Fauquier Bank’s parent company reported net income of $1.5 million for the third quarter, down 24.6 percent from the same period of 2019, when profits totaled $2.1 million.
While COVID-19 continues to impact our operations and earnings, our financial results were better than expected considering the continued increases to our loan loss provision.
— President/CEO Marc Bogan
For the nine months that ended Sept. 30, Fauquier Bankshares Inc. reported net income of $4.5 million, compared with $5.2 million a year earlier.
“On October 1, 2020, we announced a definitive agreement to combine in a strategic merger of equals with Virginia National Bankshares,” President/CEO Marc Bogan, President said. “The enhanced scale and complementary business lines resulting from this transaction provides the best opportunity for both banks to better serve our major constituencies: our clients, our employees, our shareholders and our communities. We are committed to using the best practices of both companies to increase our market share across Virginia.
“While COVID-19 continues to impact our operations and earnings, our financial results were better than expected considering the continued increases to our loan loss provision,” Mr. Bogan added. “Compression in our net interest margin continues as a result of the current economic and interest rate environments, however, core loan and deposit growth for the quarter was strong. 2020 has presented its challenges for the banking industry, but we are excited by the opportunities that are ahead and we look forward to serving the banking and financial needs of our clients and communities in our new combined organization.”
During the second quarter of 2020, the bank originated 543 Paycheck Protection Program (PPP) loans, totaling $52.8 million. The loans averaged $97,200, representing a loan yield of 3.38 percent and a weighted average fee of percent.
Because of the ongoing development of the loan forgiveness process and the lack of operational guidance as of Sept. 30, the bank did not extend loan forgiveness to any borrower who obtained a PPP loan.
As of June 30, the bank granted 90-day payment deferrals for 194 loans, totaling $92.8 million in principal balances. By the end of September, 97 percent of those deferments had ended and returned to their normal payment schedules.
Fauquier Bankshares total assets stood at $840.3 million Sept. 30, compared with $726.3 million a year earlier.
Loans totaled $638.1 million versus $545.2 million on Sept. 30, 2019.
Total deposits stood at $739.8 million compared to $614 million.
Nonperforming assets stood at $11.6 million, compared to $6.7 million on Sept. 30, 2019. They included $10.3 million of nonperforming loans and $1.4 million of other real estate owned.
Shareholders’ equity rose to $72.2 million from $66 million a year earlier.
Book value per common share stood at $19.03 on Sept. 30 versus $17.43 on the same date in 2019.
Founded in 1902, the Warrenton-based company operates six banking offices in Fauquier and five in Prince William County or Manassas.
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