Farmers Bankshares reports record earnings for ’18

Published 5:10 pm Friday, February 22, 2019

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Farmers Bankshares Inc. (the “Company”) (OTC-PINK: FBVA) has reported unaudited earnings of $1,464,312, or $0.48 per share for the fourth quarter of 2018, which is an increase of approximately 76.20 percent from the $831,079, or $0.27 per share, earned during the fourth quarter of 2017. The Company posted record earnings for the year, which amounted to $4,875,252 or $1.59 per share, up 8.23 percent from the $4,504,779 or $1.47 per share, reported for 2017.

Return on average assets on an annualized basis of 1.07 percent for 2018 has improved from the 2017 results of 1.05 percent. Return on average equity as of Dec. 31, 2018, was 10.31 percent as compared to 9.82 percent for the same period of the prior year.

Richard J. Holland Jr., chairman and chief executive officer, stated, “Announcing record earnings for the fourth consecutive year is an exciting way to commence our 100th year as an independent community bank. As we celebrate this milestone we want to remain focused on our core values to ensure we continue to provide prompt, reliable, secure and courteous service to our customers and community for another 100 years. It is a privilege and very motivating to work alongside a Board of Directors, management team and staff that are committed to this mission.”

While year-over-year loan growth was sluggish and increased only by $2.8 million, net loans in the fourth quarter of 2018 increased by $11.7 million or 4.55 percent compared to Sept. 30, 2018. Deposit balances have increased $15.8 million to a total of $386.7 million as of Dec. 31, 2018, from $370.9 million as of Dec. 31, 2017. Non-interest bearing deposits increased by $8.5 million or 7.93 percent from Dec. 31, 2017, and make up approximately 29.97 percent of total deposits.

Net interest income has been positively impacted by the rise in interest rates and increased 5.63 percent when compared to annualized results of 2017. Non-interest income, exclusive of securities gain totaled $6.1 million in 2018 and increased by 21.44 percent over the same period in the prior year. Non-interest expense increased by approximately $2.5 million through the fourth quarter 2018 compared to same period in 2017, largely due to expenses related to our technology conversion and the consolidation of Manry Rawls LLC, which began in May 2017. Conversion related expenses increased non-interest expenses by approximately $457 thousand, net of tax.

“While 2018 was a challenging year from an operational standpoint, we realized several of our strategic goals that will position us for future expansion and efficiency,” stated Vernon M. Towler, president.

We are beginning to realize proficiencies from our core conversion that will aid in managing non-interest expenses in the future. Our investment in the Chesapeake market is gaining traction and is producing favorable results, which is encouraging as we continue to evaluate markets east of our traditional area. We continue to concentrate on organic, balanced growth that has long-term benefits and perpetuates our franchise value.”

Farmers Bank, founded in 1919, is headquartered in Windsor, and is a community bank that operates seven branches and services areas throughout Tidewater Virginia. Additional information is available at the company’s website,

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.

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