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

Company Release - 7/26/2018 11:46 AM ET

WINDSOR, Va., July 26, 2018 /PRNewswire/ -- Farmers Bankshares, Inc. (OTC-PINK: FBVA) reports unaudited earnings of $1,064,194, or $0.35 per share for the second quarter of 2018, which is an increase of approximately 6.20% from the $1,002,112, or $0.33 per share, earned during the second quarter of 2017.  Net income through the six months ended June 30, 2018 amounted to $1,963,661 or $0.64 per share, down 14.67% from the $2,301,245 or $0.75 per share, reported through the first six months of 2017. 

Farmers Bank Logo (PRNewsfoto/Farmers Bankshares, Inc.)

Return on average assets on an annualized basis of 0.86% for the second quarter of 2018 decreased from the second quarter of 2017 of 1.10%.  Return on average equity during the second quarter of 2018 was 8.35% as compared to the prior year second quarter of 10.44%. 

Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, "While first quarter earnings were negatively impacted by our technology advancements, second quarter earnings normalized and were more consistent with prior quarters.  We expect the second half of 2018 to compare favorably to the first half and look forward to continuing to increase shareholder value through our strategic initiatives."

Net loans in the second quarter of 2018 remained fairly consistent decreasing by 1.09% compared to June 30, 2017.  Deposit balances have increased $25.1 million to a total of $364.1 million as of June 30, 2018 from $338.9 million as of June 30, 2017.  Non-interest bearing deposits increased by $3.8 million or 3.81% from June 30, 2017 and still make up approximately 28.12% of total deposits. 

Net interest income increased 4.38% as of the second quarter of 2018 when compared to second quarter of 2017.  While we have enjoyed the benefits of rising interest rates on variable rate loans and investments, we continue to experience pressure on market deposit rates.  Non-interest income in the second quarter of 2018 was approximately $2.2 million and increased by 0.56% over the same period in the prior year.  The first quarter of 2017 included a pre-tax, non-recurring gain on the sale of other real estate owned of approximately $590 thousand.  Exclusive of this transaction, non-interest income increased 38.86% in the second quarter of 2018 over the second quarter of 2017.   Non-interest expense increased by approximately $1.4 million during the second 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.   

"We continue to feel the effects of several large loans being repaid in the first quarter and commercial loan demand remains sluggish.  While our desire is to increase loan balances we are not interested in sacrificing credit standards to do so.  We continue to see improvement in net interest income even with stagnant loan growth.  We also remain focused on non-interest income as a driver for increasing profitability," 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,

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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SOURCE Farmers Bankshares, Inc.

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