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

WINDSOR, Va., July 31, 2017 /PRNewswire/ -- Farmers Bankshares, Inc. (OTC-PINK: FBVA) reports unaudited earnings of $1,002,112, or $0.33 per share for the second quarter of 2017.  These results are a decrease of approximately 4% from the $1,046,412, or $0.34 per share, earned during the second quarter of 2016.  Net income through the first six months of the year amounted to $2,301,245 or $0.75 per share, up 15.64% from the $1,990,091 or $0.65 per share, reported through the first six months of 2016. 

Return on average assets on an annualized basis of 1.10% for the second quarter of 2017 is improved from the second quarter of 2016 of 0.96%.  Return on average equity during the second quarter of 2017 was 10.44% as compared to the prior year second quarter of 9.41%. 

During the second quarter the Bank purchased an additional one-third interest in Manry Rawls, LLC ("Manry Rawls"), a local property and casualty insurance agency.  This brings the Bank's total ownership percentage to two-thirds of Manry Rawls.  Due to the change in ownership structure, as of May 12, 2017 Manry Rawls has been consolidated into Farmers Bankshares, Inc. for financial reporting purposes. 

Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, "We increased our ownership in Manry Rawls during the second quarter of 2017.  Although some acquisition related expenses dampened our second quarter earnings slightly, we are optimistic about the future potential this expanded relationship will bring to us from an earnings and customer service perspective.  We are excited to partner with an organization that is committed to the local communities and to superior customer service."

Loan demand increased by 5.30%, as net loans increased by $13.2 million as compared to June 30, 2016.  Deposit balances increased $9.9 million or 3.02% to $338.9 million as of June 30, 2017 from $328.9 million as of June 30, 2016.  Non-interest bearing deposits increased by $5.7 million or 6.19% from June 30, 2016 and still make up approximately 29.10% of total deposits.  Net interest income increased 4.41% when compared to second quarter of 2016.  Both decreased funding costs and higher average outstanding loan balances contributed to this increase.  Non-interest income, exclusive of securities transactions, increased approximately 77.50% from second quarter 2016.  As noted from the first quarter of 2017, this increase included a pre-tax, non-recurring gain on the sale of other real estate owned of approximately $590 thousand.  The increase is also partially due to the consolidated gross income from insurance commissions earned through Manry Rawls.  Non-interest expense increased approximately 11.96% as compared to year to date for the second quarter of 2016, largely due to expenses related to our expansion into the Chesapeake market and the increased expenses when consolidating Manry Rawls. 

"We continue to execute our strategic plan for 2017 while remaining flexible and open to new opportunities that arise.  Our focus on organic growth east of our conventional markets started with Chesapeake and we hope to continue that expansion," 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 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.

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SOURCE Farmers Bankshares, Inc.