Farmers Bankshares, Inc. Reports Record Earnings in 2017
WINDSOR, Va., Feb. 16, 2018 /PRNewswire/ -- Farmers Bankshares, Inc. (the "Company") (OTC-PINK: FBVA) reports unaudited earnings of $831,079, or $0.27 per share for the fourth quarter of 2017. These results are a decrease of approximately 28.28% from the $1,158,706, or $0.38 per share, earned during the fourth quarter of 2016. The Company posted record earnings for the year, which amounted to $4,504,779 or $1.47 per share, up 7.60% from the $4,186,686 or $1.37 per share, reported for 2016.
Return on average assets on an annualized basis of 1.05% for 2017 has improved from the 2016 results of 1.01%. Return on average equity as of December 31, 2017 was 9.82% as compared to 9.74% for the same period of the prior year.
Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, "We are very excited to be able to announce record earnings for the third consecutive year. Even though fourth quarter earnings were impacted by the revaluing of our deferred tax asset, the Board and management are pleased with our annual results. The partnership with Manry Rawls, LLC ("Manry Rawls") continues to be beneficial for both organizations and has aided in diversifying our revenue sources. Because of this success we will continue to look for similar opportunities as they arise."
Loan demand increased by 2.52%, as net loans increased by $6.6 million as compared to December 31, 2016. Deposit balances increased $27.0 million or 7.84% to $370.9 million as of December 31, 2017 from $343.9 million as of December 31, 2016. Non-interest-bearing deposits increased by $5.8 million or 5.72% from December 31, 2016 and make up approximately 28.94% of total deposits. Net interest income increased 3.88% when compared to annualized results of 2016. Non-interest income, exclusive of securities transactions, increased approximately 80.83% from fourth quarter 2016. As noted from the first quarter of 2017, this increase included a pre-tax, non-recurring gain on the sale of other real estate owned of approximately $590 thousand. The increase is also partially due to the consolidated gross income from insurance commissions earned through Manry Rawls. Non-interest expense increased approximately 15.87% as compared to year to date for the fourth quarter of 2016, largely due to expenses related to our expansion into the Chesapeake market and the increased expenses when consolidating Manry Rawls.
During the second quarter, Farmers Bank (the "Bank") purchased an additional one-third interest in Manry Rawls, bringing the Bank's total ownership percentage to two-thirds. Due to the change in ownership structure, as of May 12, 2017, Manry Rawls has been consolidated into Farmers Bankshares, Inc. for financial reporting purposes.
"For the past twelve months, we have been preparing for a core operating system conversion that is scheduled to take place in the first quarter of 2018. Associated with the transition will be some one-time expenses that will negatively impact our operating efficiency ratio in 2018; however, the resulting advanced technology benefiting our customers and the long-term efficiencies for the Bank will more than justify the costs. We are excited as this transition will enhance our ability to offer banking products that can service a variety of needs with flexible solutions," stated Vernon M. Towler, President.
Farmers Bank, founded in 1919, is headquartered in Windsor, VA, and is a community bank which operates seven branches and services areas throughout Tidewater Virginia. Additional information is available at the company's website, www.farmersbankva.com.
The common stock of Farmers Bankshares, Inc. trades as an Over-the-Counter Bulletin Board stock under the symbol FBVA. Any stockbroker can assist with purchase of the company's stock, as well as with sales of holdings.
SOURCE Farmers Bankshares, Inc.
Share this article