WINDSOR, VA, October 28, 2019 – Farmers Bankshares, Inc. (OTC-PINK: FBVA) reports unaudited earnings of $1,521,429, or $0.49 per share for the third quarter of 2019, which is an increase of approximately 5.12% from the $1,447,279, or $0.47 per share, earned during the third quarter of 2018. Net income through the nine months ended September 30, 2019 amounted to $4,174,987, or $1.35 per share, up 22.40% from the $3,410,940, or $1.11 per share, reported through the first nine months of 2018.
Return on average assets on an annualized basis of 1.21% for the third quarter of 2019 increased from the third quarter of 2018 of 1.00%. Return on average equity during the third quarter of 2019 was 10.57% as compared to the prior year third quarter of 9.64%.
Richard “Dick” J. Holland, Jr., Chairman and Chief Executive Officer, stated, “During our 2019 annual shareholder’s meeting I announced my retirement planned for year end 2019 and assured shareholders that the Company would continue to be led by a dedicated and talented management team. The financial results we have achieved during our 100th year have been a testament to that team and our staff as a whole. I look forward to continuing as Chairman of the Board and supporting Vernon Towler and the management team as they continue to seek out strategic opportunities and build on the Company’s strengths that align with the values that have been established over the last 100 years.”
Net loans in the third quarter of 2019 increased by $14.9 million or 5.80% as compared to September 30, 2018. Deposit balances have remained steady, increasing by $278 thousand to a total of $365.1 million as of September 30, 2019 from $364.8 million as of September 30, 2018. Non-interest bearing deposits increased by $4.1 million or 4.17% from September 30, 2018 and still make up approximately 28.12% of total deposits.
Net interest income increased 5.44% as of the third quarter of 2019 when compared to third quarter of 2018. Non-interest income through the third quarter of 2019 was approximately $6.2 million and was increased by 39.66% over the same period in the prior year. The first nine months of 2019 included a pre-tax, non-recurring gain on the sale of securities of approximately $329 thousand. Exclusive of this transaction, non-interest income increased 32.23% over the first nine months of 2018. On January 1, 2019, our insurance subsidiary, Manry Rawls, LLC, acquired a crop insurance agency headquartered in Williamston, North Carolina. The growth in non-interest income is largely due to additional insurance commissions from this acquisition. Non-interest expense has increased by approximately $1.2 million or 10.55% during the first nine months of 2019 compared to same period in 2018, largely due to employee expenses related to the same insurance acquisition.
Capital ratios at the Bank level remain strong and well above regulatory requirements for “Well Capitalized” financial institutions.
“2019 has been an exciting and productive year for Farmers Bank. We are celebrating our 100th year in business, we recently opened a loan production office in Virginia Beach, we have secured a permanent location in Chesapeake and we are realizing record financial results for the fifth consecutive year. Like many financial institutions, we will be focused on the effect of market interest rates on net interest margin for 2020 and beyond. While we are concerned about margin compression, we have concentrated on preparing our balance sheet for different economic cycles from an interest rate and credit risk perspective. Our credit culture remains disciplined and our credit metrics reflect that priority. I feel very honored to have worked very closely with Dick over the last twelve years and am committed to continuing to perpetuate the Farmers Bank franchise.” stated Vernon M. Towler, President.
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.
The common stock of Farmers Bankshares, Inc. trades 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.