Farmers Bankshares, Inc. Revised Financial Highlights for Third Quarter

Rhea-AI Summary

Farmers Bankshares (FBVA) issued a revised press release on October 21, 2021, clarifying financial ratios for Q3 2021 and YTD earnings. The revised ratios were inconsistent with previously reported data. However, there was no impact on the consolidated balance sheets or income statements, with all other financial information remaining unchanged.

The bank reported a basic net income of $0.51 per share for Q3 2021, a decrease from $1.19 in Q2 2021. Book value per share also declined to $21.15 from $21.51.

Positive

• Maintained consistent overall financial information despite the revision.
• Continued operation of multiple branches in Tidewater, Virginia.

Negative

• Basic net income per share dropped from $1.19 in Q2 2021 to $0.51 in Q3 2021.
• Book value per share decreased from $21.51 to $21.15.

WINDSOR, Va., Nov. 17, 2021 /PRNewswire/ -- On October 21, 2021, Farmers Bankshares, Inc. (OTC-PINK: FBVA), the Windsor-based holding company for Farmers Bank, issued a press release reporting its third quarter and year-to-date earnings for 2021.  Under the heading "Financial Highlights" in the original press release, the Company included ratios for return on average assets, return on average stockholders' equity and return on average tangible stockholders' equity for the periods ended September 30 and June 30, 2021 that used financial data for the nine and six month periods, respectively.  This presentation was inconsistent with other data for the September 30 and June 30, 2021 periods, which were reported for the three months ended September 30 and June 30, 2021. 

Set forth below is a revised Financial Highlights table from the original press release reflecting the above ratios for the three months ended September 30 and June 30, 2021.  There was no impact on the consolidated balance sheets or income statements included in the original press release, and all other financial information remains unchanged. 

The common stock of Farmers Bankshares, Inc. trades on the OTC Pink Marketplace under the symbol FBVA.  Any stockbroker can assist with purchase of the company's stock, as well as with sales of holdings.

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

Financial Highlights
	September 30,	June 30,	March 31,	December 31,	September 30,
At or For the Three Months Ended,	2021	2021	2021	2020	2020
Per Share and Shares Outstanding (1)
Basic net income	$               0.51	$               1.19	$               0.63	$               0.57	$               0.41
Book value at end of period	$             21.15	$             21.51	$             19.77	$             20.65	$             19.92
Tangible book value at end of period	$             17.96	$             18.29	$             16.52	$             17.35	$             16.60
Basic weighted average shares outstanding	3,122,886	3,121,308	3,116,938	3,104,776	3,104,004
Dividends per share	$               0.15	$               0.13	$               0.13	$               0.12	$               0.12
Shares outstanding at period end	3,127,048	3,125,678	3,125,678	3,108,462	3,106,809
Selected Performance Ratios
Return on average assets	1.10%	2.58%	1.38%	1.05%	0.96%
Return on average stockholders' equity	9.44%	22.31%	12.14%	8.70%	7.90%
Return on average tangible stockholders' equity	11.09%	26.33%	14.41%	10.45%	9.54%
Net interest margin, tax equivalent (2)	3.22%	3.20%	3.22%	3.53%	3.37%
Cost of deposits	0.26%	0.28%	0.35%	0.38%	0.39%
Non-interest income as a percentage of total revenue (3)	37.66%	58.18%	41.69%	44.17%	37.23%
Efficiency ratio (4)	69.55%	48.28%	63.58%	69.09%	69.63%
Balance Sheet Ratios
Loans to deposits	46.29%	51.51%	53.78%	61.29%	65.03%
Tangible common equity to tangible assets	11.06%	11.57%	10.91%	11.92%	11.74%
Nonperforming loans to period-end loans	0.52%	0.14%	0.10%	0.13%	0.10%
Allowance for loan losses to period-end loans	2.49%	2.32%	2.32%	2.23%	2.20%
Net charge-offs (recoveries) to average loans outstanding	-0.01%	0.04%	0.04%	0.09%	0.09%
(1) Computed based on the weighted average number of shares outstanding during each period.
(2) Net interest margin is net interest income divided by average interest earning assets.
(3) Total revenue consists of net interest income and non-interest income.
(4) Efficiency ratio is non-interest expense divided by the sum of net interest income and non-interest income.

 

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SOURCE Farmers Bankshares, Inc.

FAQ

What is Farmers Bankshares' recent financial performance as reported on November 17, 2021?

Farmers Bankshares reported a basic net income of $0.51 per share for Q3 2021, down from $1.19 in Q2 2021.

How did the book value of Farmers Bankshares change in Q3 2021?

The book value per share for Farmers Bankshares decreased from $21.51 in Q2 2021 to $21.15 in Q3 2021.

Did the recent press release affect Farmers Bankshares' financial statements?

No, the revised ratios did not impact the consolidated balance sheets or income statements.

What inconsistencies existed in Farmers Bankshares' financial reporting?

The revised ratios for return on assets and equity were inconsistent with earlier reported data for the same periods.

What is the ticker symbol for Farmers Bankshares?

The ticker symbol for Farmers Bankshares is FBVA.