WINDSOR, Va., March 2, 2017 /PRNewswire/ — Farmers Bankshares, Inc. (OTC-PINK: FBVA) reports unaudited earnings of $1,158,706, or $0.38 per share for the fourth quarter of 2016.  These results are an increase of approximately 5.62% from the $1,097,082, or $0.36 per share, earned during the fourth quarter of 2015.  Record earnings for the year amounted to $4,186,686 or $1.37 per share, up approximately 11% from the $3,774,388 or $1.24 per share, reported for 2015. 

Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, «Our Board of Directors and management team have remained determined and focused on our long-term objectives when making strategic decisions.  Reporting record earnings for the second year in a row proves that this discipline is producing successful results.»

Return on average assets on an annualized basis of 1.01% for 2016 increased over 2015’s results of 0.91%.  Return on average equity as of December 31, 2016 was 9.74% as compared to 9.57% for the same period of the prior year.    

Net loans increased from September 30, 2016 by 3.2% or $8.1 million, while year over year growth was slightly higher at approximately 7.5%.  Deposit balances increased 2.39% or $8.0 million to $344 million as of December 31, 2016; up from $336 million as December 31, 2015.  Non-interest bearing deposits increased approximately $5.1 million since December 31, 2015, and make up approximately 29% of total deposits. 

Non-interest income, exclusive of securities transactions, increased 11.4% as compared to 2015.  Income related to the purchase of an annuity, designed to offset the restructuring of executive deferred compensation plans, was realized as a one-time occurrence and increased other income by approximately $251,000 as of December 31, 2016.  Non-interest expense, exclusive of the prepayment penalty of $355 thousand from 2015, increased 3.5% during 2016 as compared to 2015.  The implementation of several technology projects and non-recurring charitable donations accounted for the majority of the additional expense. 

The Company’s quarterly dividend was increased to $0.10 per share in the fourth quarter of 2016 resulting in total dividends of $0.30 per share for 2016, an increase of 67% over 2015.   «We enjoyed considerable improvement in our stock’s liquidity and value during 2016.  The price of our stock increased almost 67% from December 31, 2015 to December 31, 2016.  Raising our dividend payout ratio from 14% in 2015 to 22% in 2016, increasing transparency, and successfully executing on our strategic plan all contributed to this accomplishment,» 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 seven 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)

12/31/2016

12/31/2015

Assets

(Unaudited)

Total cash & due from banks

$        8,808

$      14,637

Federal funds sold

2,329

1,648

Total investments

125,747

134,740

Mortgage loans held for sale

1,444

911

Loans held for investment

265,958

248,376

Allowance for loan losses

(5,756)

(6,344)

Total net loans 

260,202

242,032

Premises and equipment, net

3,477

3,548

Other real estate owned 

877

613

Total other assets

20,677

16,804

Total assets

$423,561

$414,933

Liabilities & Stockholders’ Equity

Deposits

Non-interest bearing 

$    101,552

$      96,421

Certificates of deposit

242,359

239,456

Total deposits

343,911

335,877

Repurchase agreements

1,126

823

Capital notes

7,888

9,928

FHLB borrowings

25,000

25,000

Total other borrowings 

34,014

35,751

Total other liabilities

2,910

2,698

Total liabilities

380,835

374,326

Common stock 

382

382

Capital surplus

2,775

2,754

Retained earnings

38,344

35,071

Accumulated other comprehensive income

1,225

2,400

Total stockholders’ equity

42,726

40,607

Total liabilities & stockholders’ equity

$423,561

$414,933

 

Farmers Bankshares, Inc. 

Consolidated Income Statement

For the Years Ended December 31, 

2016

2015

Interest income 

(Unaudited)

Interest on loans

$   12,275,691

$   12,000,584

Interest on mortgage loans held for sale

25,016

21,202

Interest on federal funds sold

42,293

33,505

Interest on investments

3,719,399

3,988,376

Total interest income

16,062,399

16,043,667

Interest expense

Interest on deposits

1,207,905

1,589,455

Interest on borrowings

466,008

623,165

Interest on capital notes

441,847

517,478

Total interest expense

2,115,760

2,730,098

Net interest income 

13,946,639

13,313,569

Provision for loan losses

Net interest income after provision 

13,946,639

13,313,569

Non-interest income

Service charges

660,431

613,468

Income from ATM and bank card interchange

508,393

514,642

Other income 

1,608,962

1,368,602

Gain (loss) on sale of fixed assets

3,901

(58)

Gain on disposition of investments

115,948

422,821

Total non-interest income

2,897,635

2,919,475

Non-interest expense

Salaries & employee benefits

6,283,217

6,134,982

Occupancy & equipment

1,390,209

1,267,734

FDIC insurance

179,079

246,032

Data processing 

982,496

855,719

Other non-interest expense 

2,693,604

2,987,068

Total non-interest expense

11,528,605

11,491,535

Income before income taxes

5,315,669

4,741,509

Income tax expense

1,128,983

967,121

Net income

$4,186,686

$3,774,388

 

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SOURCE Farmers Bankshares, Inc.