WINDSOR, Va., July 19, 2019 /PRNewswire/ -- Farmers Bankshares, Inc. (FBVA) reports unaudited earnings of $1,300,387, or $0.42 per share for the second quarter of 2019, which is an increase of approximately 22.19% from the $1,064,194, or $0.35 per share, earned during the second quarter of 2018. Net income through the six months ended June 30, 2019 amounted to $2,653,558 or $0.86 per share, up 35.13% from the $1,963,661 or $0.64 per share, reported through the first six months of 2018.
Return on average assets on an annualized basis of 1.15% for the second quarter of 2019 increased from the second quarter of 2018 of 0.86%. Return on average equity during the second quarter of 2019 was 10.38% as compared to the prior year second quarter of 8.35%.
Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, "We have had success in growing loans over the last year, but more importantly the majority of this growth has come from developing relationships. While transactions can grow the balance sheet, we strive to develop long term, mutually beneficial relationships with our customers. We believe we are reaping the benefits of the strategic initiatives we put into place over the past several years. Throughout 2019 we are celebrating 100 years of serving the community and are more determined than ever to remain a sound and profitable independent bank."
Net loans in the second quarter of 2019 increased by $18.1 million or 6.99% as compared to June 30, 2018. Deposit balances have increased $4.8 million to a total of $368.9 million as of June 30, 2019 from $364.0 million as of June 30, 2018. Non-interest bearing deposits increased by $3.2 million or 3.16% from June 30, 2018 and still make up approximately 28.63% of total deposits.
Net interest income increased 6.47% as of the second quarter of 2019 when compared to second quarter of 2018. Non-interest income through the second quarter of 2019 was approximately $3.9 million and was increased by 81.33% over the same period in the prior year. The first half of 2019 included a pre-tax, non-recurring gain on the sale of securities of approximately $329 thousand. Exclusive of this transaction, non-interest income increased 66.02% over the first half of 2018. On January 1, 2019, our insurance subsidiary, Manry Rawls, LLC, acquired a crop insurance agency headquartered in Williamston, North Carolina. The growth in non-interest income is largely due to additional insurance commissions from this acquisition. Non-interest expense has increased by approximately $917 thousand or 11.77% during the first half of 2019 compared to same period in 2018, largely due to employee expenses related to the same insurance acquisition.
Capital ratios at the Bank level remain strong and well above regulatory requirements for "Well Capitalized" financial institutions.
"We purchased a permanent location for our Chesapeake branch during the second quarter and are very excited to finalize renovations and occupy this space prior to year-end. As we continue to look eastward for further expansion we are strengthening our staff with bankers familiar and committed to the Chesapeake and Virginia Beach markets. With the combination of experienced bankers and technology, we have the ability to conduct business in new markets even prior to securing a physical presence," 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 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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