WINDSOR, Va., July 24, 2020 /PRNewswire/ -- Farmers Bankshares, Inc. (OTC-PINK: FBVA) reports unaudited earnings of $1.3 million, or $0.42 per share, for the second quarter of 2020. These results are in line with the $1.3 million, or $0.42 per share, earned during the second quarter of 2019.
Return on average assets on an annualized basis was 0.96% for the second quarter of 2020, a decrease from 1.15% for the second quarter of 2019. Return on average equity during the second quarter of 2020 was 7.94% as compared to 10.38% for the second quarter of 2019. Return on average tangible common equity (1) was 9.64% for the period ended June 30, 2020 and compared to 12.83% for the period ended June 30, 2019.
Net loans have increased $25.9 million, or 9.92%, as compared to December 31, 2019. The increase was primarily driven by loans associated with the Company's participation in the CARES Act's Paycheck Protection Program ("PPP"). The Bank serviced customers through the PPP with 257 loans totaling approximately $24.9 million processed through the end of the second quarter. Deposit balances have increased by $42.1 million to $427.6 million as of June 30, 2020 from $385.5 million as of December 31, 2019. Non-interest bearing deposits increased by $25.0 million and make up approximately 33.04% of total deposits. Customer stimulus payments and PPP loan fundings both contributed to this increase in deposits. Net interest income decreased 3.03% when comparing the second quarter of 2020 to the second quarter of 2019. Net interest margin for the second quarter decreased to 3.47%, including PPP and 3.55% excluding PPP, when compared to the second quarter of 2019 of 3.85%. This reduction is primarily due to the impact of significantly lower market interest rates since the second quarter of 2019 and the rate associated with loans originated through the PPP.
"I am pleased with our financial results for the first half of 2020, especially given the current interest rate environment and challenging economic situation. I am most proud of the way our entire team have shown a new level of commitment and support for our customers and communities while navigating these unparalleled times. Being a community bank, we strive to be flexible to meet the changing needs of our customers and present conditions have proven we are able to do that. We successfully opened our branch in the Pungo area of Virginia Beach during the second quarter and are very encouraged with the reception from that community." said Vernon M. Towler, President and Chief Executive Officer.
Non-interest income through the second quarter of 2020 was approximately $4.3 million and was increased by 9.61% over the same period in the prior year due primarily to increased insurance revenues from Manry Rawls Insurance and our investment in Tidewater Home Funding. Non-interest expense decreased by 2.61% during the second quarter 2020 compared to same period in 2019. This decrease was partially due to deferred salary costs related to participation in the PPP and reduced marketing expenses after celebrating our 100th anniversary in the prior year. Provision for loan losses of $526 thousand was added during the second quarter, bringing year to date provisions to $651 thousand for 2020 compared to $0 for the same period in 2019. Our allowance for loan losses was 2.11% of gross loans as of June 30, 2020, including loans originated through the PPP, and 2.30% of gross loans excluding loan originated through the PPP (1). Of the $37.6 million in loans that were on a payment deferral plan as of the end of the first quarter of 2020, $36.6 million have returned to a normal payment schedule as of June 30, 2020.
"We remain committed to managing our balance sheet in a manner that enables us to meet our long-term strategic goals while providing shareholders a competitive rate of return. A large deposit repriced, to lower current market rates, during the second quarter and helped to stabilize net interest margin when compared to the first quarter of 2020. While our credit metrics remain very healthy and have shown little deterioration, we did increase loan loss reserves during the second quarter to account for the high level of economic uncertainty. Consistent returns from our insurance subsidiary and favorable results from our mortgage partnership also contributed positively to second quarter earnings. Liquidity and capital levels remain strong and position us well for future opportunities." stated Kristy DeJarnette, Chief Financial Officer.
Non-GAAP financial measure. Return on average tangible common equity excludes goodwill and intangibles.
Farmers Bank, founded in 1919, is headquartered in Windsor, VA, and is a community bank which operates eight 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.
Farmers Bankshares, Inc.
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SOURCE Farmers Bankshares, Inc.
Raven Industries, Inc. (the Company; NASDAQ:RAVN) announced today that it is Great Place to Work-Certified™. Certification is a significant achievement. Using validated employee feedback gathered with Great Place to Work’s rigorous, data-driven methodology, certification confirms at least 7 out of 10 employees have a consistently positive experience at Raven Industries. Great Place to Work® is the global authority on workplace culture, employee experience and the leadership behaviors proven to deliver market-leading revenue and increased innovation.
"We are thrilled to be Great Place to Work-Certified,” said Nicole Freesemann, Vice President of Human Resources. "The Raven culture is something we are extremely proud of, and our team members reported a consistently positive experience with their coworkers, their leaders, and their jobs. We know that when our team members have a high-trust experience every day, they are more productive, drive better business results and make a difference to our customers.”
Surveyed with the Great Place to Work Trust Index™ Survey in August 2020, 85 percent of team members at Raven say it is a great place to work, versus 59 percent at a typical company. The following statements were also confirmed:
90 percent: I’m proud to tell others I work here.
89 percent: When I look at what we accomplish, I feel a sense of pride.
89 percent: When you join the company, you are made to feel welcome.
88 percent: People care about each other here.
"We congratulate Raven Industries on their Certification,” said Sarah Lewis-Kulin, Vice President of Best Workplace List Research at Great Place to Work. "Organizations that earn their employees’ trust create great workplace cultures that deliver outstanding business results.”
Learn more about Raven’s award-winning culture and career opportunities at ravenind.com/careers.
About Raven Industries, Inc.
Raven Industries (NASDAQ: RAVN) is dedicated to providing innovative, high-value products and solutions that solve great challenges throughout the world. Raven is a leader in precision agriculture, high-performance specialty films, and lighter-than-air technologies. Since 1956, Raven has designed, produced, and delivered exceptional solutions, earning the company a reputation for innovation, product quality, high performance, and unmatched service. For more information, visit https://ravenind.com.
About Great Place to Work®
Great Place to Work® is the global authority on workplace culture. Since 1992, they have surveyed more than 100 million employees around the world and used those deep insights to define what makes a great workplace: trust. Great Place to Work helps organizations quantify their culture and produce better business results by creating a high-trust work experience for all employees. Their unparalleled benchmark data is used to recognize Great Place to Work-Certified™ companies and the Best Workplaces™ in the U.S. and more than 60 countries, including the 100 Best Companies to Work For® and World’s Best list published annually in Fortune.
To learn more, visit greatplacetowork.com, listen to the podcast Better by Great Place to Work, and read "A Great Place to Work for All.” Join the community on LinkedIn, Twitter, and Instagram.
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