Farmers Bank releases earnings report

Published 9:39 pm Thursday, April 23, 2015

Farmers Bankshares Inc., the Windsor-based holding company for Farmers Bank, has announced its common stock will begin trading on the OTC Market exchange under the ticker symbol “FBVA.”

Company officials said in a press release they believe this will increase the visibility of their company and will provide shareholders the opportunity for greater liquidity.

The bank also reported unaudited earnings of $811,296, or $1.33 per share for the first quarter of 2015. These results are increased approximately 3 percent from the $786,016, or $1.29 per share, earned during the first quarter of 2014.

Email newsletter signup

Richard J. Holland Jr., chairman and chief executive officer, stated, “We are pleased to report these consistent positive results to our shareholders and am proud of the bank’s position through the first quarter of 2015.”

Return on average assets on an annualized basis of 0.76 percent for the first quarter of 2015 is unchanged from the first quarter of 2014. Return on average equity during the first quarter of 2015 was 8.42 percent, as compared to the prior year first quarter of 9.34 percent.

Net interest income increased 2.3 percent in the first quarter of 2015, compared to first quarter of 2014. Loan demand held consistent, but due to seasonal activity mainly related to agricultural lines of credit, total loans decreased by $2.6 million as compared to Dec. 31, 2014.

Deposit balances decreased 1.02 percent or $3.5 million to $340 million in the first quarter of 2015 from $344 million as of Dec. 31, 2014. The slight decrease in deposits is largely due to the cyclical nature of several large municipal deposits, according to the company.

In March, Farmers Bankshares, Inc. redeemed $925,000 worth of capital notes at a price of 102 percent, plus accrued and unpaid interest. This transaction was to accommodate investor’s liquidity needs and reduce debt-service obligations.

“We are extremely proud of the progress we have made by focusing on non-interest income,” stated Vernon M. Towler, president. “The diversification of our revenue streams has helped to ease the continuation of compressed net interest margins. We are also pleased to further service our customers and local community by persistently broadening our financial related offerings.”

Farmers Bank, founded in 1919, is headquartered in Windsor.