Farmers Bank reports earnings
Published 9:14 pm Thursday, April 21, 2016
Farmers Bankshares Inc. has reported unaudited earnings of 31 cents per share for the first quarter of 2016, up about 16 percent from the first quarter of 2015, bank officials stated in a press release.
“We are optimistic about the bank’s performance in 2016,” Richard J. Holland Jr., chairman and chief executive officer of the Windsor-based bank, stated in a press release.
“We developed a pace in 2015 which we hope to sustain. Our strategic initiatives will help to enhance shareholder value while continuing to serve our customers and contribute, in a meaningful way, to our surrounding communities.”
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Return on average assets and return on average equity were also up from 2015.
Loan demand held consistent, as net loans increased by $580,000 since Dec. 31. Deposit balances decreased $1.1 million, to $335 million, in the first quarter. Non-interest bearing deposits decreased 2.89 percent from Dec. 31 but still make up approximately 28 percent of total deposits.
In March 2016, Farmers Bankshares, Inc. redeemed $475 thousand 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.
Management and the Board plan to execute a mandatory redemption of approximately $1.5 million of the remaining capital notes during the second quarter of 2016, pending regulatory approval, according to the release.
“We are extremely excited about our focus for 2016,” stated President Vernon M. Towler said.
“We expect to have our loan production office open in the Greenbrier section of Chesapeake during the second quarter. We believe the recent consolidations of local banks will open the door for traditional community banking in this part of Hampton Roads. Further, we believe customers can benefit from the personal attention we are able to offer.”