17 Nov2021

Farmers Bankshares, Inc. Revised Financial Highlights for Third Quarter

Written by Farmers Bank. Posted in Invest, Press Releases

WINDSOR, VA, November 17, 2021 – On October 21, 2021, Farmers Bankshares, Inc. (OTC-PINK: FBVA), the Windsor-based holding company for Farmers Bank, issued a press release reporting its third quarter and year-to-date earnings for 2021. Under the heading “Financial Highlights” in the original press release, the Company included ratios for return on average assets, return on average stockholders’ equity and return on average tangible stockholders’ equity for the periods ended September 30 and June 30, 2021 that used financial data for the nine and six month periods, respectively. This presentation was inconsistent with other data for the September 30 and June 30, 2021 periods, which were reported for the three months ended September 30 and June 30, 2021.

Set forth below is a revised Financial Highlights table from the original press release reflecting the above ratios for the three months ended September 30 and June 30, 2021. There was no impact on the consolidated balance sheets or income statements included in the original press release, and all other financial information remains unchanged.

The common stock of Farmers Bankshares, Inc. trades on the OTC Pink Marketplace 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, Virginia, and is a community bank which operates eight branches and services areas throughout Tidewater, Virginia. Additional information is available at the company’s website, www.farmersbankva.com.

Contact: Vernon M. Towler, President and Chief Executive Officer, 757-242-6111

3rd Qtr Press Release Financials – Revised snip

21 Oct2021

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

Written by Farmers Bank. Posted in Invest, Press Releases

WINDSOR, VA, Oct. 21, 2021 — Farmers Bankshares, Inc. (OTC-PINK: FBVA) reports unaudited earnings of $1.6 million, or $0.51 per share, for the third quarter of 2021. These results increased approximately 27.54% from the $1.3 million, or $0.41 per share, earned during the third quarter of 2020. Net income through the nine months ended September 30, 2021 amounted to $7.3 million or $2.33 per share, which is a 100.99% increase from the $3.6 million or $1.17 per share, reported for 2020.

At September 30, 2021, select financial information and key highlights include:

Return on average assets of 1.66%, compared to 0.96% in 2020.
Return on average equity of 14.28%, compared to 7.90% in 2020.
Return on average tangible common equity (1) of 16.77%, compared to 9.54% in 2020.
Net interest margin was 3.22%, reduced from 3.37% in the prior year.
Total cost of deposits decreased to 0.26% from 0.39% at September 30, 2020.

Consolidated Balance Sheet

Net loans decreased $17.6 million, or 6.85%, as compared to June 30, 2021. The decrease was primarily driven by the continued high cash balances held by customers, reducing borrowing needs, as well as one large loan payoff near the end of the quarter. The Company had approximately $5.3 million in the CARES Act’s Paycheck Protection Program (“PPP”) loans on the balance sheet as of September 30, 2021 and had received forgiveness of principal totaling $31.8 million. Deposit balances have increased by $18.2 million to $518.3 million as of September 30, 2021 from $500.1 million as of June 30, 2021. Non-interest bearing deposits increased by $7.5 million and make up approximately 34.53% of total deposits. The increase in the consumer savings rate, PPP loan funds and seasonal municipality deposits all contributed to this increase in deposits.

Capital ratios at the bank level remain well within the well-capitalized guidelines of the regulatory framework.

“While we saw a decline in loans this quarter we are optimistic about our ability to grow loans organically as the economy and uncertainty surrounding the business community improves. We have hired an experienced lender that is very familiar with the Virginia Beach market and will be devoted to growing our customer relationships in that area. Management and our Board believe we are very well positioned for future expansion and growth in both core banking and non-interest income business lines. Our capital position is strong and our balance sheet and income streams are diversified. We were pleased to increase our dividend declared in the third quarter showing our continued commitment to increasing shareholder value,” stated Vernon M. Towler, President and Chief Executive Officer.

Results of Operations

Net interest income increased 1.41% in the third quarter of 2021 compared to the third quarter of 2020. Recognizing fees related to forgiven PPP loans and deploying excess cash into our securities portfolio both contributed to this slight increase. Continued repricing of deposits and prepaying FHLB advances in 2020 also aided in holding net interest income from further downward pressure.

Non-interest income through the third quarter of 2021 was approximately $10.4 million and was increased by 59.93% over the same period in the prior year primarily driven by the gain from unwinding an interest rate swap that occurred in the first quarter and the gain on other real estate owned recognized in the second quarter. Excluding these two extraordinary items, on a pre-tax basis, non-interest income would have increased 5.78% year over year.

Non-interest expense increased 2.88% through the third quarter of 2021 compared to same period in 2020. Investing in talent to expand our Virginia Beach market predominantly drove this increase.

No provision for loan losses was added during the third quarter of 2021. The Company considers local and national unemployment, housing and market trends when determining the estimated allowance. Our allowance for loan losses was 2.49% of gross loans as of September 30, 2021.

Asset Quality

Non-performing assets, which consists of nonaccrual loans and other real estate owned increased from $277 thousand at June 30, 2021 to $1.3 million at September 30, 2021. The increase was due to one loan being added to nonaccrual status during the quarter. This loan has been on the bank’s watch list for several quarters.

Loans are considered past due if the required principal and interest income have not been received as of the date such payments were due. As of September 30, 2021, loans greater than thirty days past due totaled $1.3 million, or 0.52% of total gross loans. This compared to $374 thousand or 0.14% of total gross loans as of June 30, 2021.

(1) Non-GAAP financial measure. Return on average tangible common equity excludes goodwill and intangibles.

Headquartered in Windsor, Virginia, Farmers Bankshares, Inc. is the holding company for Farmers Bank, Windsor, Virginia. Farmers Bank was founded in 1919, and is a community bank which operates eight branches and services areas throughout Tidewater Virginia. Additional information is available at the company’s website, www.farmersbankva.com.

Q3 2021 Balance Sheet

2021 Q3 Income Statement

Financial Highlights 2021 Q3

30 Sep2021

Budgeting using the 50-20-30 Rule

Written by Farmers Bank. Posted in Community, Farmers Bank

Is budgeting stressful to you? Do you feel overwhelmed? We understand that sometimes when it feels like too much of a challenge, it is easier to just give up. Farmers Bank is here to help. We have outlined important tips including the 50.20.30 budget rule. It’s part of a simple plan to help you reach your financial goals.

When you use the 50-20-30 budget rule, you should spend up to 50% of your net income on needs–things you must have or cannot live without. These include rent or mortgage payments, car payments, groceries, insurance, health care and utilities. Half of your net income should be all that is required to cover your needs and obligations.

Kari VanWassen – headshot Next, try to allocate 20% of your net income to savings, debt payments and investments. A best practice is to have at least three months of emergency savings on hand in case of job loss or another unforeseen event. After that, focus on retirement, paying off debt and meeting other future financial goals.

Allowing yourself to check some of your “wants” off of your bucket list is also important. The final 30% of your net income should go toward these wants. A dinner out followed by a movie, a new outfit, or a vacation to a dream destination are all possible when you budget wisely.

While budgeting can seem impossible at times, the 50.20.30 budget rule can keep you on track to ensure that you set yourself up for financial success. Farmers Bank has many different products to provide every individual customer options for their budgeting needs. Please contact us for details.

Blogpost written by:
Kari VanWassen
BSA/Security/Information Security Specialist
CBAP

Watch this fun video about the 50-20-30 Budgeting Rule

20 Sep2021

Farmers Bankshares, Inc. Reports Third Quarter Dividend

Written by Farmers Bank. Posted in Invest, Press Releases

WINDSOR, VA, Sept. 20, 2021 – Farmers Bankshares, Inc. (OTC-PINK: FBVA), the Windsor-based holding company for Farmers Bank, announced that the Board of Directors has declared a quarterly dividend of $0.15 per share to holders of common stock of the company. On an annualized basis the $0.15 per share dividend is increased 15% from the dividend declared in June 2021 of $0.13 per share.

The record date for stockholders entitled to payment of the dividend will be the close of normal trading on October 1, 2021, with payment to occur by October 15, 2021.

Contact: Vernon M. Towler, President and Chief Executive Officer, 757-242-6111

09 Jul2021

Farmers Bank Announces 2021 Scholarship Recipients

Written by Farmers Bank. Posted in Community, Press Releases

Windsor, VA, July 9, 2021 – Farmers Bank is pleased to announce the recipients of their 2021 Farmers Bank Scholarship Program. Each of these area students will receive $2,500.00 which will be applied toward their future education. Farmers Bank received more than 200 applications this year from highly impressive students across the Tidewater region. Winners are selected by an external committee and are based on financial need, academic achievement and community involvement. Special thanks are extended to the community members who make up the Farmers Bank Scholarship Committee. This team was led by Luann Scott who spent countless hours reviewing applications and return year after year for this important assignment.

Congratulations to the 2021 Farmers Bank Scholarship winners and best of luck! The recipients and their higher education institution are as follows:

Erin Brownlow – Great Bridge High School attending the College of William & Mary

Annika Eng – Smithfield High School attending Christopher Newport University

Caleb Fulford – Great Bridge High School attending the College of William & Mary

David Lee – Ocean Lakes High School attending Virginia Tech

Nina Dao – Ocean Lakes High School attending Duke University

Samantha O’Prandy – Western Branch High School attending James Madison University

Anna Claire Sanzone – Princess Anne High School attending the College of William & Mary

Shivam Patal – Windsor High School attending the University of Virginia

Information about the Farmers Bank Scholarship can be found at farmersbankva.com . The application period is open from January through March annually.

Farmers Bank, founded in 1919, is headquartered in Windsor, VA, and is a community bank operating eight branches and services areas throughout Tidewater, Virginia. Additional information is available at the company’s website, www.farmersbankva.com.