Farmers Bankshares, Inc. Reports Record Earnings in 2015

07 Mar, 2016, 10:23 ET from Farmers Bankshares, Inc.

WINDSOR, Va., March 7, 2016 /PRNewswire/ -- Farmers Bankshares, Inc. reports unaudited earnings of $1,097,082, or $0.36 per share for the fourth quarter of 2015.  These results are an increase of approximately 21% from the $907,173, or $0.30 per share, earned during the fourth quarter of 2014.  Record earnings for the year amounted to $3,774,388 or $1.24 per share, up 12.3% from the $3,360,889 or $1.11 per share, reported for 2014.   

Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, "Consolidated earnings for 2015 were approximately $3.8 million, an improvement over 2014 of twelve percent.  Core earnings, which excludes loan loss recoveries, for 2015 increased fifty percent over 2014.  This progress in our earnings was reflected in our dividends to our shareholders, which also increased fifty percent over the prior year.  Of equal importance, we have significantly improved asset quality, reduced the efficiency ratio and managed the balance sheet to ensure future growth."

Return on average assets on an annualized basis of 0.91% for 2015 increased over 2014's results of 0.80%.  Return on average equity as of December 31, 2015 was 9.57% as compared to 8.98% for the same period of the prior year. 

Net loans increased from September 30, 2015 by 3.7% or $8.6 million, while year over year growth was slightly lower at approximately 1.1% due to a few large pay downs during the third quarter of 2015.  Deposit balances increased 3.25% or $10.6 million to $336 million as of December 31, 2015; up from $325 million as September 30, 2015.  Non-interest bearing deposits increased approximately $12.8 million, and make up approximately 29% of total deposits.  The deposit balance increases are mainly due to the seasonal nature of municipality deposits.     

Non-interest income, exclusive of securities transactions, increased 69% as compared to 2014.  Income related to the Bank's investment in Manry Rawls, LLC contributed $262 thousand of additional year to date income in 2015 over the same period in 2014.  Service charges increased $260 thousand or 74% for the year ended December 31, 2015 when compared to the same period of 2014.  Non-interest expense, exclusive of the prepayment penalty of $355 thousand discussed in the prior quarter, decreased 1.6% or $181 thousand during the 2015 as compared to same period in 2014. 

"Strategically, the Board and Management have set an aggressive course for the Bank's future.  Our focuses include growing loans and non-interest deposits, managing expenses and increasing our mortgage business within our markets.  Our focus on the insurance partnership with Manry Rawls will include organic growth, as well as, growth through acquisitions.   We are also planning to expand our footprint with a loan production office in the Chesapeake area in the second quarter of 2016.  As always, we continue to explore alternative sources of revenue that may fall slightly outside of traditional banking," stated Vernon M. Towler, President. 

The common stock of Farmers Bankshares, Inc. trades on the NASDAQ market as an Over-the-Counter Bulletin Board stock under the symbol FBVA (Other OTC: FBVA). Any stockbroker can assist with purchases of the company's stock, as well as with sales of holdings.

Farmers Bank, founded in 1919, is headquartered in Windsor, VA, and is a full-service community bank which operates six branches throughout Western Tidewater Virginia.  Additional information is available at the company's website, www.farmersbankva.com.

 

Farmers Bankshares, Inc. 

Consolidated Balance Sheets

($ in thousands)

12/31/2015

12/31/2014

Assets

(Unaudited)

Total cash & due from banks

$      14,637

$      18,947

Federal funds sold

1,648

8,632

Total investments

134,740

136,634

Mortgage loans held for sale

911

986

Loans held for investment

248,376

247,507

Allowance for loan losses

(6,344)

(8,182)

Total net loans 

242,032

239,325

Premises and equipment, net

3,548

3,806

Other real estate owned 

613

1,499

Total other assets

16,804

16,962

Total assets

$414,933

$426,791

Liabilities & Stockholders' Equity

Deposits

Non-interest bearing 

$      96,421

$      86,085

Other transaction 

144,579

142,068

Certificates of deposit

94,877

114,656

Total deposits

335,877

342,809

Repurchase agreements

823

1,930

Capital notes

9,928

11,253

FHLB borrowings

25,000

30,000

Total other borrowings 

35,751

43,183

Total other liabilities

2,698

2,824

Total liabilities

374,326

388,816

Common stock 

381

383

Capital surplus

2,754

2,723

Retained earnings

35,071

31,849

Unrealized gain on securities

2,401

3,020

Total stockholders' equity

40,607

37,975

Total liabilities & stockholders' equity

$414,933

$426,791

 

Farmers Bankshares, Inc. 

Consolidated Income Statement

For the Years Ended December 31, 

2015

2014

Interest income 

(Unaudited)

Interest on loans

$   12,000,584

$   11,917,161

Interest on mortgage loans held for sale

21,202

2,470

Interest on federal funds sold

33,505

41,970

Interest on investments

3,988,376

4,166,272

Total interest income

16,043,667

16,127,873

Interest expense

Interest on deposits

1,589,455

1,966,110

Interest on borrowings

623,165

620,637

Interest on capital notes

517,478

569,160

Total interest expense

2,730,098

3,155,907

Net interest income 

13,313,569

12,971,966

Provision for loan losses

-

(850,000)

Net interest income after provision 

13,313,569

13,821,966

Non-interest income

Service charges

613,468

353,212

Other fee income

31,977

25,642

Other income

1,851,267

1,075,219

Gain on sale of fixed assets

(58)

20,404

Gain on disposition of investments

422,821

288,847

Total non-interest income

2,919,475

1,763,324

Non-interest expense

Salaries & employee benefits

6,134,982

5,755,188

Occupancy & equipment

1,267,734

1,347,096

FDIC insurance

246,032

286,513

Data processing 

855,719

843,361

Other non-interest expense 

2,987,068

3,085,014

Total non-interest expense

11,491,535

11,317,172

Income before income taxes

4,741,509

4,268,118

Income tax expense

967,121

907,229

Net income

$3,774,388

$3,360,889

 

 

SOURCE Farmers Bankshares, Inc.



RELATED LINKS

http://www.farmersbankva.com