WINDSOR, Va., Oct. 28, 2015 /PRNewswire/ -- Farmers Bankshares, Inc. reports unaudited earnings of $961,896, or $0.32 per share for the third quarter of 2015 ($1.58 per share on a pre-split basis). These results are an increase of approximately 13% from the $849,191, or $0.28 per share ($1.40 per share on a pre-split basis), earned during the third quarter of 2014. Net income through the first nine months of the year amounted to $2,677,306 or $0.88 per share ($4.39 per share on a pre-split basis), up 9.11% from the $2,453,716 or $0.81 per share ($4.04 on a pre-split basis), reported through the first nine months of 2014. The stock split was effective for shareholders on record as of October 2, 2015 and payable on October 15, 2015.
Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, "We continue to report steady improvement in our earnings. This outcome comes from being very intentional about our focus on diversifying revenues and implementing efficiencies. Our goal has been to achieve consistent and sustainable earnings growth to provide long-term value for our shareholders. Management and the Board feel that our strategic vision for the Bank is doing just that. "
Return on average assets on an annualized basis of 0.87% for the first nine months of 2015 increased over the first nine months of 2014's results of 0.79%. Return on average equity during the nine months of 2015 was 9.05% as compared to 8.97% for the first nine months of the prior year.
While we have had success with new loan demand, net loans decreased from June 30, 2015 by 1.8% or $4.3 million due to a few large pay downs. Deposit balances decreased 0.84% or $2.7 million to $325 million as of September 30, 2015; down from $328 million as June 30, 2015. Non-interest bearing deposits increased approximately $2.2 million, and still make up approximately 26% of total deposits. During the quarter the Bank prepaid a $5 million FHLB advance carrying a rate of 3.69%. The repayment resulted in a prepayment penalty on borrowings equaling $356 thousand. The prepayment of this advance was funded with the sale of securities, which resulted in a gain of $348 thousand. This transaction was executed to enhance future earnings by way of reduction in interest expense.
Non-interest income, exclusive of securities transactions, increased 71% as compared to the third quarter of 2014. Income related to the Bank's investment in Manry Rawls, LLC contributed $175 thousand of additional year to date income in 2015 over the same period in 2014. Service charges increased $167 thousand or 71% for the first nine months of 2015 when compared to the same period of 2014. Non-interest expense, exclusive of the prepayment penalty previously noted, increased 5.5% or $433 thousand during the third quarter of 2015 as compared to same period in 2014.
"The early retirement of the FHLB advance further emphasizes that Management and the Board are constantly looking for ways to improve shareholder return. This transaction will help offset compression of our margin due to the continued low interest rate environment in which we are currently operating. The partnership with Manry Rawls Insurance has also proven beneficial for both parties. We are always pleased when we can service our customer's financial needs through a variety of channels and the Manry Rawls relationship has helped us achieve that goal." stated Vernon M. Towler, President.
The common stock of Farmers Bankshares, Inc. trades on the NASDAQ market as an Over-the-Counter Bulletin Board stock under the symbol FBVA. Any stockbroker can assist with purchases of the company's stock, as well as with sales of holdings.
Farmers Bank, founded in 1919, is headquartered in Windsor, VA, and is a full-service community bank which operates six branches throughout Western Tidewater Virginia. Additional information is available at the company's website, www.farmersbankva.com.
| Farmers Bankshares, Inc. |
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| Consolidated Balance Sheets |
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| ($ in thousands) |
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| 9/30/2015 |
12/31/2014 |
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| Assets |
(Unaudited) |
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| Total cash & due from banks |
$ 11,398 |
$ 18,947 |
|
| Federal funds sold |
2,126 |
8,632 |
|
| Total investments |
136,355 |
136,634 |
|
| Mortgage loans held for sale |
1,132 |
986 |
|
| Loans held for investment |
239,938 |
247,507 |
|
| Allowance for loan losses |
(6,542) |
(8,182) |
|
| Total net loans |
233,396 |
239,325 |
|
| Premises and equipment, net |
3,608 |
3,806 |
|
| Other real estate owned |
613 |
1,499 |
|
| Total other assets |
16,392 |
16,962 |
|
| Total assets |
$405,020 |
$426,791 |
|
| Liabilities & Stockholders' Equity |
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| Deposits |
|||
| Non-interest bearing |
$ 83,643 |
$ 86,085 |
|
| Other transaction |
143,580 |
142,068 |
|
| Certificates of deposit |
98,094 |
114,656 |
|
| Total deposits |
325,317 |
342,809 |
|
| Repurchase agreements |
1,936 |
1,930 |
|
| Capital notes |
9,928 |
11,253 |
|
| FHLB borrowings |
25,000 |
30,000 |
|
| Total other borrowings |
36,864 |
43,183 |
|
| Total other liabilities |
2,764 |
2,824 |
|
| Total liabilities |
364,945 |
388,816 |
|
| Common stock |
382 |
383 |
|
| Capital surplus |
2,666 |
2,723 |
|
| Retained earnings |
34,125 |
31,849 |
|
| Unrealized gain on securities |
2,902 |
3,020 |
|
| Total stockholders' equity |
40,075 |
37,975 |
|
| Total liabilities & stockholders' equity |
$405,020 |
$426,791 |
|
| Farmers Bankshares, Inc. |
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| Consolidated Income Statement |
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| For the Nine Months Ended September 30, |
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| 2015 |
2014 |
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| Interest income |
(Unaudited) |
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| Interest on loans |
$ 8,931,146 |
$ 8,879,939 |
|
| Interest on mortgage loans held for sale |
15,275 |
- |
|
| Interest on federal funds sold |
26,787 |
32,744 |
|
| Interest on investments |
3,006,972 |
3,149,599 |
|
| Total interest income |
11,980,180 |
12,062,282 |
|
| Interest expense |
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| Interest on deposits |
1,241,561 |
1,500,314 |
|
| Interest on borrowings |
507,016 |
445,713 |
|
| Interest on capital notes |
392,141 |
427,260 |
|
| Total interest expense |
2,140,718 |
2,373,287 |
|
| Net interest income |
9,839,462 |
9,688,995 |
|
| Provision for loan losses |
- |
- |
|
| Net interest income after provision |
9,839,462 |
9,688,995 |
|
| Non-interest income |
|||
| Service charges |
403,737 |
236,811 |
|
| Other fee income |
23,919 |
18,283 |
|
| Other income |
1,330,539 |
749,170 |
|
| Gain on sale of fixed assets |
- |
21,921 |
|
| Gain on disposition of investments |
401,952 |
288,848 |
|
| Total non-interest income |
2,160,147 |
1,315,033 |
|
| Non-interest expense |
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| Salaries & employee benefits |
4,556,496 |
4,107,713 |
|
| Occupancy & equipment |
945,070 |
1,018,458 |
|
| FDIC insurance |
184,532 |
217,512 |
|
| Data processing |
638,991 |
610,733 |
|
| Other non-interest expense |
2,341,137 |
1,922,747 |
|
| Total non-interest expense |
8,666,226 |
7,877,163 |
|
| Income before income taxes |
3,333,383 |
3,126,865 |
|
| Income tax expense |
656,077 |
673,149 |
|
| Net income |
$2,677,306 |
$2,453,716 |
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SOURCE Farmers Bankshares, Inc.
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