Farmers Bankshares, Inc. Reports Record Earnings in 2015

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.

SOURCE Farmers Bankshares, Inc.

Related Links

http://www.farmersbankva.com