WINDSOR, Va., Oct. 23, 2018 /PRNewswire/ -- Farmers Bankshares, Inc. (FBVA) reports unaudited earnings of $1,447,279, or $0.47 per share for the third quarter of 2018, which is an increase of approximately 5.45% from the $1,372,455, or $0.45 per share, earned during the third quarter of 2017. Net income through the nine months ended September 30, 2018 amounted to $3,410,940 or $1.11 per share, down 7.16% from the $3,673,701 or $1.20 per share, reported through the first nine months of 2017.
Return on average assets on an annualized basis of 1.00% through the third quarter of 2018 decreased from the third quarter of 2017 of 1.16%. Return on average equity during the third quarter of 2018 was 9.64% as compared to the prior year third quarter of 10.87%.
Richard J. Holland, Jr., Chairman and Chief Executive Officer, stated, "We are pleased to report continued improvement in earnings this quarter. Though the first two quarters of 2018 were negatively impacted by elevated expenses related to our core conversion, the most recent quarter reflects more normalized expenses. While an increase in net interest income contributed to our increased earnings, our investment in Manry Rawls Insurance and other non-interest income opportunities continue to produce favorable results."
Net loans in the third quarter of 2018 decreased by 3.05% compared to September 30, 2017 due to several large loans being repaid in the first quarter. Deposit balances have increased $4.6 million to a total of $364.8 million as of September 30, 2018 from $360.2 million as of September 30, 2017. Non-interest bearing deposits increased by $3.1 million or 3.24% from September 30, 2017 and make up approximately 27.02% of total deposits.
Net interest income has been positively impacted by the rise in interest rates and increased 4.60% as of the third quarter of 2018 when compared to third quarter of 2017. Non-interest income through the third quarter of 2018 was approximately $4.4 million and increased by 9.76% 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 28.54% in the third quarter of 2018 over the third quarter of 2017. Non-interest expense increased by approximately $1.8 million through the third 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.
"Pricing pressure on both loans and deposits has caused us to be selective when growing the balance sheet. While we strive to remain competitive in our local market, we are focused on growth strategies that perpetuate the Bank and our earnings potential in the long-term. As we approach our 100th anniversary we are investing in technology and people that will help to broaden our product offerings and customer base. It is very exciting to be a part of a century-old institution that truly values the needs of its customers and community," 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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