Farmers Bankshares, Inc. Reports Record Earnings in 2016

WINDSOR, Va., March 2, 2017 /PRNewswire/ -- Farmers Bankshares, Inc. (OTC-PINK: FBVA) reports unaudited earnings of $1,158,706, or $0.38 per share for the fourth quarter of 2016.  These results are an increase of approximately 5.62% from the $1,097,082, or $0.36 per share, earned during the fourth quarter of 2015.  Record earnings for the year amounted to $4,186,686 or $1.37 per share, up approximately 11% from the $3,774,388 or $1.24 per share, reported for 2015. 

Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, "Our Board of Directors and management team have remained determined and focused on our long-term objectives when making strategic decisions.  Reporting record earnings for the second year in a row proves that this discipline is producing successful results."

Return on average assets on an annualized basis of 1.01% for 2016 increased over 2015's results of 0.91%.  Return on average equity as of December 31, 2016 was 9.74% as compared to 9.57% for the same period of the prior year.    

Net loans increased from September 30, 2016 by 3.2% or $8.1 million, while year over year growth was slightly higher at approximately 7.5%.  Deposit balances increased 2.39% or $8.0 million to $344 million as of December 31, 2016; up from $336 million as December 31, 2015.  Non-interest bearing deposits increased approximately $5.1 million since December 31, 2015, and make up approximately 29% of total deposits. 

Non-interest income, exclusive of securities transactions, increased 11.4% as compared to 2015.  Income related to the purchase of an annuity, designed to offset the restructuring of executive deferred compensation plans, was realized as a one-time occurrence and increased other income by approximately $251,000 as of December 31, 2016.  Non-interest expense, exclusive of the prepayment penalty of $355 thousand from 2015, increased 3.5% during 2016 as compared to 2015.  The implementation of several technology projects and non-recurring charitable donations accounted for the majority of the additional expense. 

The Company's quarterly dividend was increased to $0.10 per share in the fourth quarter of 2016 resulting in total dividends of $0.30 per share for 2016, an increase of 67% over 2015.   "We enjoyed considerable improvement in our stock's liquidity and value during 2016.  The price of our stock increased almost 67% from December 31, 2015 to December 31, 2016.  Raising our dividend payout ratio from 14% in 2015 to 22% in 2016, increasing transparency, and successfully executing on our strategic plan all contributed to this accomplishment," stated Vernon M. Towler, President. 

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.

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.

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SOURCE Farmers Bankshares, Inc.