WINDSOR, Va., Oct. 27, 2017 /PRNewswire/ -- Farmers Bankshares, Inc. (OTC-PINK: FBVA) reports unaudited earnings of $1,372,455, or $0.45 per share for the third quarter of 2017. These results are an increase of approximately 32.24% from the $1,037,890, or $0.34 per share, earned during the third quarter of 2016. Net income through the first nine months of the year amounted to $3,673,701 or $1.20 per share, up 21.33% from the $3,027,981 or $0.99 per share, reported through the first six months of 2016.
Return on average assets on an annualized basis of 1.16% for the third quarter of 2017 is improved from the third quarter of 2016 of 0.98%. Return on average equity during the third quarter of 2017 was 10.87% as compared to the prior year third quarter of 9.43%.
Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, "Our earnings results through the third quarter of 2017 are on target with our expectations. Management and the board have remained focused on the strategic roadmap we have been laying out over the past several years. As many of those plans have been executed we now have the opportunity to expand upon them to further enhance shareholder returns."
Loan demand increased by 5.46%, as net loans increased by $13.8 million as compared to September 30, 2016. Deposit balances increased $35.1 million or 10.78% to $360.2 million as of September 30, 2017 from $325.2 million as of September 30, 2016. Non-interest-bearing deposits increased by $6.6 million or 26.5% from September 30, 2016 and still make up approximately 26.51% of total deposits. Net interest income increased 3.55% when compared to third 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 117.43% from third 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 16.34% as compared to year to date for the third quarter of 2016, largely due to expenses related to our expansion into the Chesapeake market and the increased expenses when consolidating Manry Rawls.
During the second quarter, the Bank purchased an additional one-third interest in Manry Rawls, LLC ("Manry Rawls"), bringing the Bank's total ownership percentage to two-thirds. 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.
"We remain committed to our new Chesapeake market and are encouraged by the opportunities that have presented themselves. This market represents a significant part of our organic loan growth on a year over year basis. With the continued consolidation of financial institutions in the market we believe our franchise value comes from being able to still offer true community banking service that many consumers and businesses in the area are accustomed to receiving," 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.