Farmers Bankshares, Inc. Reports Third Quarter and Year-to-Date Earnings USA - English Français

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Oct 26, 2016, 10:23 ET

WINDSOR, Va., Oct. 26, 2016 /PRNewswire/ -- Farmers Bankshares, Inc. (OTC-PINK: FBVA) reports unaudited earnings of $1,037,890, or $0.34 per share for the third quarter of 2016. These results are an increase of approximately 8% from the $961,896, or $0.32 per share, earned during the third quarter of 2015. Net income through the first nine months of the year amounted to $3,027,981 or $0.99 per share, up 13% from the $2,677,306 or $0.88 per share, reported through the first nine months of 2015.

Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, "The Board and management set out 2016 with a focused vision and an extensive list of initiatives. As we enter into the last quarter of this year we are pleased with the progress we have made and optimistic for those goals that are still evolving. The improvement in the liquidity of our stock and in our dividend are two of the accomplishments we are proud to pass on to our shareholders."

Return on average assets on an annualized basis of 0.98% for the third quarter of 2016 is improved from the third quarter of 2015 of 0.87%. Return on average equity during the third quarter of 2016 was 9.43% as compared to the prior year third quarter of 9.05%.

Loan demand has added approximately $18.7 million in net loans since the third quarter of 2015, with net loans at $252 million as of September 30, 2016. Deposit balances have remained stable only decreasing $128 thousand or 0.04% to $325 million as of the end of the third quarter of 2016. Non-interest bearing deposits increased approximately $5.2 million from the third quarter of 2015 and make up approximately 27% of total deposits. Funding costs continue to show improvement and help to offset the sustained low interest rate environment on the asset side of the balance sheet. Non-interest income, exclusive of securities transactions, increased 4.76% from third quarter of 2015. Service charges continue to increase by 18.03% or $73 thousand when compared to the third quarter of 2015. Non-interest expense remained consistent, only decreasing by approximately 1.36% during the third quarter of 2016 compared to same period in 2015.

"Because of strategic decisions we have made over the last few years we have been able to invest in employees and resources to enhance our presence in Hampton Roads without substantially increasing non-interest expenses. Specifically, we plan to expand our offerings and further our commitment to the Chesapeake area in early 2017. We remain focused on the Hampton Roads community and serving our customer's individual needs," 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 purchase 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 community bank which operates six branches and services areas throughout Tidewater Virginia. Additional information is available at the company's website, www.farmersbankva.com.

Farmers Bankshares, Inc.
Consolidated Balance Sheets
($ in thousands)

	9/30/2016	9/30/2015
Assets	(Unaudited)
Total cash & due from banks	$ 5,706	$ 11,398
Federal funds sold	30	2,126
Total investments	128,162	136,355
Mortgage loans held for sale	1,753	1,132

Loans held for investment	258,859	239,938
Allowance for loan losses	(6,724)	(6,542)
Total net loans	252,135	233,396

Premises and equipment, net	3,543	3,608
Other real estate owned	877	613
Total other assets	15,499	16,392

Total assets	$407,705	$405,020

Liabilities & Stockholders' Equity
Deposits
Non-interest bearing	$ 88,864	$ 83,643
Other transaction	152,317	143,580
Certificates of deposit	84,008	98,094
Total deposits	325,189	325,317

Repurchase agreements	1,171	1,936
Capital notes	7,888	9,928
FHLB borrowings	25,000	25,000
Total other borrowings	34,059	36,864

Total other liabilities	4,645	2,764

Total liabilities	363,893	364,945

Common stock	382	382
Capital surplus	2,754	2,666
Retained earnings	37,491	34,125
Unrealized gain on securities	3,185	2,902
Total stockholders' equity	43,812	40,075

Total liabilities & stockholders' equity	$407,705	$405,020

Farmers Bankshares, Inc.
Consolidated Income Statement
For the Nine Months Ended September 30,

	2016	2015
Interest income	(Unaudited)
Interest on loans	$ 9,153,964	$ 8,931,146
Interest on mortgage loans held for sale	18,527	15,275
Interest on federal funds sold	33,808	26,787
Interest on investments	2,825,183	3,006,972
Total interest income	12,031,482	11,980,180

Interest expense
Interest on deposits	927,802	1,241,561
Interest on borrowings	349,338	507,016
Interest on capital notes	342,010	392,141
Total interest expense	1,619,150	2,140,718

Net interest income	10,412,332	9,839,462
Provision for loan losses	-	-
Net interest income after provision	10,412,332	9,839,462

Non-interest income
Service charges	476,542	403,737
Other fee income	22,191	23,919
Other income	1,343,071	1,330,539
Gain on sale of fixed assets	-	-
Gain on disposition of investments	110,850	401,952
Total non-interest income	1,952,654	2,160,147

Non-interest expense
Salaries & employee benefits	4,753,320	4,556,496
Occupancy & equipment	999,282	945,070
FDIC insurance	176,000	184,532
Data processing	708,748	638,991
Other non-interest expense	1,910,791	2,341,137
Total non-interest expense	8,548,141	8,666,226

Income before income taxes	3,816,845	3,333,383
Income tax expense	788,864	656,077

Net income	$3,027,981	$2,677,306