Fauquier Bankshares Announces Fourth Quarter 2017 Results
The results for the year and quarter ended
For the year ended
Total assets were
Net interest margin was 3.75% for the fourth quarter of 2017, unchanged from the prior quarter and 3.50% for the same period in 2016. Net interest income for the fourth quarter of 2017 increased
Nonperforming assets were
Net loan recoveries for the fourth quarter of 2017 were
Noninterest income increased
Shareholders' equity increased
At
The Company will continue to focus on its growth and profitability strategy. Our outlook for 2018 and beyond includes a number of strategic initiatives intended to grow the business and enhance shareholder value. The following is an update on the Company's progress toward those goals.
- Maintain a strong net interest margin – quarterly results indicate an improved interest rate margin since the fourth quarter of 2016.
- Increase commercial and consumer loans at or above the local market while maintaining strong asset quality – growth in net loans of
$39.1 million sinceDecember 31, 2016 and a decrease in nonperforming assets of$2.7 million sinceDecember 31, 2016 . - Grow noninterest income from secondary market loan sales originated by our mortgage banking business – received necessary approvals and originated our first secondary market loan which resulted in the recognition of noninterest income of
$10,000 during the fourth quarter of 2017. - Lower operating expenses by cost containment through process, technology and staffing efficiencies – reduced noninterest expenses for the year by
$87,000 compared to year end 2016.
This news release may contain "forward-looking statements" as defined by federal securities laws. These statements address issues that involve risks, uncertainties, estimates and assumptions made by management, and actual results could differ materially from the results contemplated by these forward-looking statements. Factors that could have a material adverse effect on our operations and future prospects include, but are not limited to, changes in: interest rates and the shape of the interest rate yield curve, general economic conditions, legislative/regulatory policies, monetary and fiscal policies of the
|
||||||||||||||
SELECTED FINANCIAL DATA |
||||||||||||||
For the Quarter Ended, |
||||||||||||||
(Dollars in thousands, except per share data) |
|
|
|
|
|
|||||||||
EARNINGS STATEMENT DATA: |
||||||||||||||
Interest income |
$ |
6,191 |
$ |
6,001 |
$ |
5,713 |
$ |
5,415 |
$ |
5,569 |
||||
Interest expense |
556 |
515 |
509 |
469 |
489 |
|||||||||
Net interest income |
5,635 |
5,486 |
5,204 |
4,946 |
5,080 |
|||||||||
Provision for loan losses |
125 |
110 |
235 |
50 |
— |
|||||||||
Net interest income after provision for loan losses |
5,510 |
5,376 |
4,969 |
4,896 |
5,080 |
|||||||||
Noninterest income |
1,378 |
1,285 |
1,393 |
1,412 |
1,283 |
|||||||||
Noninterest expense |
5,286 |
4,993 |
5,150 |
5,415 |
5,357 |
|||||||||
Income before income taxes |
1,602 |
1,668 |
1,212 |
893 |
1,006 |
|||||||||
Income taxes |
2,146 |
387 |
222 |
125 |
198 |
|||||||||
Net income (loss) |
$ |
(544) |
$ |
1,281 |
$ |
990 |
$ |
768 |
$ |
808 |
||||
PER SHARE DATA: |
||||||||||||||
Net income (loss) per share, basic |
$ |
(0.14) |
$ |
0.34 |
$ |
0.26 |
$ |
0.20 |
$ |
0.22 |
||||
Net income (loss) per share, diluted |
$ |
(0.14) |
$ |
0.34 |
$ |
0.26 |
$ |
0.20 |
$ |
0.22 |
||||
Cash dividends |
$ |
0.12 |
$ |
0.12 |
$ |
0.12 |
$ |
0.12 |
$ |
0.12 |
||||
Weighted average shares, basic |
3,762,677 |
3,765,359 |
3,769,201 |
3,761,501 |
3,753,698 |
|||||||||
Weighted average shares, diluted |
3,772,700 |
3,773,813 |
3,778,532 |
3,768,676 |
3,763,002 |
|||||||||
Book value at period end |
$ |
14.92 |
$ |
15.20 |
$ |
14.93 |
$ |
14.66 |
$ |
14.51 |
||||
BALANCE SHEET DATA: |
||||||||||||||
Total assets |
$ |
644,613 |
$ |
631,717 |
$ |
646,265 |
$ |
630,032 |
$ |
624,445 |
||||
Loans, net |
497,705 |
485,326 |
463,309 |
451,166 |
458,608 |
|||||||||
Investment securities |
73,699 |
68,682 |
65,539 |
58,212 |
51,755 |
|||||||||
Deposits |
570,023 |
556,209 |
571,902 |
551,103 |
546,157 |
|||||||||
Transaction accounts (Demand & interest checking accounts) |
361,246 |
348,005 |
359,725 |
344,324 |
348,819 |
|||||||||
Shareholders' equity |
56,142 |
57,185 |
56,259 |
55,267 |
54,451 |
|||||||||
PERFORMANCE RATIOS: |
||||||||||||||
Net interest margin(1) |
3.75% |
3.75% |
3.60% |
3.52% |
3.50% |
|||||||||
Return on average assets |
(0.33)% |
0.80% |
0.63% |
0.50% |
0.51% |
|||||||||
Return on average equity |
(3.77)% |
8.96% |
7.10% |
5.68% |
5.91% |
|||||||||
Efficiency ratio(2) |
74.35% |
72.62% |
76.81% |
83.95% |
83.01% |
|||||||||
Yield on earning assets |
4.12% |
4.09% |
3.94% |
3.85% |
3.86% |
|||||||||
Cost of interest bearing liabilities |
0.47% |
0.45% |
0.45% |
0.43% |
0.43% |
(1) |
Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Company's net yield on its earning assets. |
(2) |
Efficiency ratio is computed by dividing noninterest expense by the sum of fully taxable equivalent net interest income and noninterest income, net of securities gains or losses. |
|
|||||||||||||||||||
SELECTED FINANCIAL DATA |
|||||||||||||||||||
For the Quarter Ended, |
|||||||||||||||||||
(Dollars in thousands, except for ratios) |
|
|
|
|
|
||||||||||||||
ASSET QUALITY RATIOS: |
|||||||||||||||||||
Nonperforming loans |
$ |
3,180 |
$ |
2,431 |
$ |
2,322 |
$ |
3,207 |
$ |
3,523 |
|||||||||
Other real estate owned (OREO) |
1,356 |
1,356 |
1,356 |
1,356 |
1,356 |
||||||||||||||
Total nonperforming loans and OREO |
4,536 |
3,787 |
3,678 |
4,563 |
4,879 |
||||||||||||||
Restructured loans still accruing |
4,182 |
4,361 |
4,506 |
4,541 |
5,305 |
||||||||||||||
Student loans (U. S. Government 98% guaranteed) past due 90 or more days and still accruing |
1,616 |
2,129 |
2,397 |
2,438 |
2,538 |
||||||||||||||
Other loans past due 90 or more days and still accruing |
49 |
565 |
104 |
1 |
321 |
||||||||||||||
Total nonperforming assets |
$ |
10,383 |
$ |
10,842 |
$ |
10,685 |
$ |
11,543 |
$ |
13,043 |
|||||||||
Nonperforming loans to total loans, period end |
0.63% |
0.50% |
0.50% |
0.70% |
0.76% |
||||||||||||||
Nonperforming assets to period end total assets |
0.70% |
0.60% |
0.57% |
0.72% |
0.78% |
||||||||||||||
Allowance for loan losses |
$ |
5,094 |
$ |
4,428 |
$ |
4,279 |
$ |
4,447 |
$ |
4,525 |
|||||||||
Allowance for loan losses to period end loans |
1.01% |
0.90% |
0.92% |
0.98% |
0.98% |
||||||||||||||
Allowance for loan losses as percentage of nonperforming loans, period end |
160.19% |
182.15% |
184.28% |
139.60% |
128.44% |
||||||||||||||
Net loan charge-offs (recoveries) for the quarter |
$ |
(541) |
$ |
(39) |
$ |
434 |
$ |
97 |
$ |
(108) |
|||||||||
Net loan charge-offs (recoveries) to average loans |
(0.11)% |
(0.01)% |
0.09% |
0.02% |
(0.02)% |
||||||||||||||
CAPITAL RATIOS: |
|||||||||||||||||||
Tier 1 leverage ratio (Bank only) |
9.17% |
* |
9.51% |
* |
9.36% |
* |
9.44% |
* |
9.23% |
* |
|||||||||
Common equity tier 1 capital ratio (Bank only) |
11.43% |
* |
12.07% |
* |
12.35% |
* |
12.43% |
* |
12.22% |
* |
|||||||||
Tier 1 risk-based capital ratio (Bank only) |
11.43% |
* |
12.07% |
* |
12.35% |
* |
12.43% |
* |
12.22% |
* |
|||||||||
Total risk-based capital ratio (Bank only) |
12.41% |
* |
12.96% |
* |
13.24% |
* |
13.38% |
* |
13.17% |
* |
|||||||||
Tangible equity to total assets ( |
8.71% |
9.05% |
8.71% |
8.77% |
8.72% |
* |
Reflects Basel III capital requirements effective |
FAUQUIER BANKSHARES, INC. AND SUBSIDIARIES |
|||||
SELECTED FINANCIAL DATA |
|||||
(Dollars in thousands, except per share data) |
For the Year Ended, |
||||
|
|
||||
EARNINGS STATEMENT DATA: |
|||||
Interest income |
$ |
23,320 |
$ |
21,574 |
|
Interest expense |
2,049 |
1,843 |
|||
Net interest income |
21,271 |
19,731 |
|||
Provision for (recovery of) loan losses |
520 |
(508) |
|||
Net interest income after provision for (recovery of) loan losses |
20,751 |
20,239 |
|||
Noninterest income |
5,468 |
5,297 |
|||
Noninterest expense |
20,844 |
20,925 |
|||
Income before income taxes |
5,375 |
4,611 |
|||
Income taxes |
2,879 |
937 |
|||
Net income |
$ |
2,496 |
$ |
3,674 |
|
PER SHARE DATA: |
|||||
Net income per share, basic |
$ |
0.66 |
$ |
0.98 |
|
Net income per share, diluted |
$ |
0.66 |
$ |
0.98 |
|
Cash dividends |
$ |
0.48 |
$ |
0.48 |
|
Weighted average shares, basic |
3,764,690 |
3,753,757 |
|||
Weighted average shares, diluted |
3,773,010 |
3,763,929 |
|||
PERFORMANCE RATIOS: |
|||||
Net interest margin(1) |
3.66% |
3.50% |
|||
Return on average assets |
0.39% |
0.60% |
|||
Return on average equity |
4.44% |
6.82% |
|||
Efficiency ratio(2) |
76.80% |
82.36% |
|||
Net loan charge-offs (recoveries) |
$ |
(49) |
$ |
(840) |
|
Net loan charge-offs (recoveries) to average loans |
(0.01)% |
(0.19)% |
(1) |
Net interest margin is calculated as fully taxable equivalent net interest income divided by average earning assets and represents the Company's net yield on its earning assets. |
(2) |
Efficiency ratio is computed by dividing noninterest expense by the sum of fully taxable equivalent net interest income and noninterest income, net of securities gains or losses. |
|
||||||||||||
Reconciliation of Certain Non-GAAP Financial Measures |
||||||||||||
(Dollars in thousands, except for ratios) |
(1) |
For the Quarter Ended |
For the Year Ended |
|||||||||
|
|
|
|
|||||||||
Adjusted Net Income and Earnings Per Share |
||||||||||||
Net income (loss), as reported |
A |
$ |
(544) |
$ |
808 |
$ |
2,496 |
$ |
3,674 |
|||
Net deferred tax asset revaluation adjustment |
1,669 |
— |
1,669 |
— |
||||||||
Adjusted net income |
B |
$ |
1,125 |
$ |
808 |
$ |
4,165 |
$ |
3,674 |
|||
Weighted average shares, assuming dilution |
C |
3,772,700 |
3,763,002 |
3,773,010 |
3,763,929 |
|||||||
Weighted average shares, basic |
D |
3,762,677 |
3,753,698 |
3,764,690 |
3,753,757 |
|||||||
Earnings (loss) per share, assuming dilution |
||||||||||||
Earnings (loss) per share, assuming dilution, as reported |
A/C |
$ |
(0.14) |
$ |
0.22 |
$ |
0.66 |
$ |
0.98 |
|||
Adjusted earnings per share, assuming dilution |
B/C |
0.30 |
0.22 |
1.10 |
0.98 |
|||||||
Earnings (loss) per share, basic |
||||||||||||
Earnings (loss) per share, basic, as reported |
A/D |
(0.14) |
0.22 |
0.66 |
0.98 |
|||||||
Adjusted earnings per share, basis |
B/D |
$ |
0.30 |
$ |
0.22 |
$ |
1.11 |
$ |
0.98 |
|||
Adjusted Return on Average Equity (ROE) |
||||||||||||
Average shareholders' equity |
E |
57,848 |
54,354 |
56,360 |
53,839 |
|||||||
ROE, as reported |
A/E |
(3.73)% |
5.91% |
4.43% |
6.82% |
|||||||
Adjusted ROE |
B/E |
7.72% |
5.91% |
7.39% |
6.82% |
|||||||
Adjusted Return on Average Assets (ROA) |
||||||||||||
Average assets |
F |
$ |
648,040 |
$ |
630,499 |
$ |
633,946 |
$ |
616,793 |
|||
ROA, as reported |
A/F |
(0.33)% |
0.51% |
0.39% |
0.60% |
|||||||
Adjusted ROA |
B/F |
0.69% |
0.51% |
0.66% |
0.60% |
(1) |
The letters included in this column are provided to show how certain non-GAAP amounts presented in the Reconciliation of Certain Non-GAAP Financial Measures are calculated. |
View original content:http://www.prnewswire.com/news-releases/fauquier-bankshares-announces-fourth-quarter-2017-results-300596192.html
SOURCE
Unum boosts parental leave, employee pay, adds $1 million to community giving
Evans Insurance Announced the Launch of Auto Insurance in Hurricane and Charleston West Virginia
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News