Farmers Bankshares reports third quarter, year-to-date earnings

Published 2:09 pm Thursday, October 27, 2016

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 percent 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 percent 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 percent for the third quarter of 2016 is improved from the third quarter of 2015 of 0.87 percent. Return on average equity during the third quarter of 2016 was 9.43 percent as compared to the prior year third quarter of 9.05 percent.

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 Sept. 30. Deposit balances have remained stable only decreasing $128 thousand or 0.04 percent 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 percent 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 percent from third quarter of 2015. Service charges continue to increase by 18.03 percent or $73 thousand when compared to the third quarter of 2015. Non-interest expense remained consistent, only decreasing by approximately 1.36 percent 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,” said 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, and is a community bank which operates six branches and services areas throughout Tidewater Virginia. Additional information is available at the company’s website,