EX-99.1 2 fbss-ex991_6.htm EX-99.1 fbss-ex991_6.htm

Exhibit 99.1

PRESS RELEASE

 

CONTACT CHRIS HEADLY

(540) 349-0218

chris.headly@tfb.bank

 

FAUQUIER BANKSHARES, INC. ANNOUNCES Third QUARTER 2019 RESULTS

 

 

•

Net income increased 31.20% to $2.1 million for the third quarter when compared with the prior quarter and increased 55.81% when compared to the third quarter of 2018;  

 

 

•

Net loans increased $1.2 million for the third quarter compared with the prior quarter and increased $12.0 million when compared with the third quarter of 2018;

 

 

•

Deposits increased $6.7 million for the third quarter compared with the prior quarter and increased $47.8 million when compared with the third quarter of 2018;

 

 

•

Net interest margin was 3.73%, unchanged when compared with the prior quarter and decreased  from 3.81% for the third quarter of 2018;  and

 

 

•

Regulatory capital remains strong with ratios exceeding the well capitalized thresholds in all categories.  

 

 

WARRENTON, VA., October 21, 2019 - Fauquier Bankshares, Inc. (the Company) (NASDAQ: FBSS), parent company of The Fauquier Bank, reported net income of $2.1 million, or $0.54 per diluted share for the quarter ended September 30, 2019, compared with $1.6 million, or $0.41 per diluted share for the prior quarter and $1.3 million, or $0.35 per diluted share for the third quarter of 2018.  

 

For the quarter ended September 30, 2019, the Company’s return on average equity (ROE) and return on average assets (ROA) were 12.46% and 1.14%, respectively, compared with 9.94% and 0.89% for the prior quarter, respectively, and 8.96% and 0.79%, for the third quarter of 2018, respectively.  

 

Marc Bogan, President and CEO said, “We experienced sound third quarter financial results, which were driven by a constant net interest margin, a decline in nonperforming loans, growth in income generated by wealth management services and continued improvement in our efficiency ratio.  While loan growth continues to be competitive, we are encouraged by the strength of our loan pipeline and the future funding of unused commitments.  Deposit growth is steady as we evaluate new and existing products to meet the needs of our customers in the markets we serve.”

 

Total assets were $726.3 million on September 30, 2019 compared with $717.5 million for the prior quarter and $670.0 million on September 30, 2018.  Net loans were $539.8 million on September 30, 2019 compared with $538.6 million for the prior quarter and $527.8 million on September 30, 2018.  Total deposits were $614.0 million on September 30, 2019 compared with $607.3 million for the prior quarter and $566.2 million on September 30, 2018.  Lower cost transaction deposits (demand and interest checking accounts) were $354.5 million on September 30, 2019 compared with $351.9 million for the prior quarter and $345.9 million on September 30, 2018.

 

Net interest margin was 3.73% for the third quarter of 2019, unchanged when compared with the prior quarter, and 3.81% for the third quarter of 2018.  Net interest income was $6.2 million for the third quarter of 2019, relatively unchanged when compared with the prior quarter and $5.8 million for the third quarter of 2018.  

 

The Company’s allowance for loan loss methodology determines the level of loan provision at the end of each quarter.  Based on loan portfolio growth, net charge-off history, asset quality indicators, impaired loans and other qualitative factors, the allowance for loan losses was $5.4 million or 0.99% of total loans on September 30, 2019 relatively unchanged when compared the prior quarter and  $5.2 million or 0.98% of total loans on September 30, 2018.  

 

Nonperforming assets were $6.7 million on September 30, 2019, compared with $7.1 million for the prior quarter and $9.0 million on September 30, 2018.  Included in nonperforming assets for the quarter were $5.3 million of nonperforming loans and $1.4 million of other real estate owned.  Net loan charge-offs were $14,000 for the third quarter of 2019 compared with $77,000 for the prior quarter and net loan recoveries of $41,000 for the third quarter of 2018.  

 

Noninterest income was $1.6 million in the third quarter of 2019, compared with $1.4 million for the prior quarter and $1.3 million for the third quarter of 2018.  

  

1

 

Noninterest expense for the third quarter of 2019 was $5.4 million compared with $5.5 million for the prior quarter and $5.5 million for the third quarter of 2018.  

 

Shareholders’ equity was $66.0 million on September 30, 2019 compared with $64.1 million for the prior quarter and $58.3 million on September 30, 2018.  Book value per common share was $17.43 on September 30, 2019 compared with $16.94 for the prior quarter and $15.44 on September 30, 2018.    

 

Fauquier Bankshares, through its operating subsidiary, The Fauquier Bank, is an independent community bank offering a full range of financial services, including internet banking, mobile banking with mobile deposit, commercial, retail, insurance, wealth management, and financial planning services through eleven banking offices throughout Fauquier and Prince William counties in Virginia. Additional information is available at www.tfb.bank or by calling Investor Relations at (800) 638-3798.

 

This press 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 U.S. Government, including policies of the U.S. Treasury, the FDIC and the Board of Governors of the Federal Reserve System, the quality or composition of the loan and/or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in our market area, our plans to expand our branch network and increase our market share, and accounting principles, policies and guidelines. Readers should consider these risks and uncertainties in evaluating our forward-looking statements and should not place undue reliance on such statements. We undertake no obligation to update these statements following the date of this news release.

2

 

FAUQUIER BANKSHARES, INC.

Selected Financial Data By Quarter

 

 

At or For the Quarter Ended,

 

(Dollars in thousands, except per share data)

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

December 31,

2018

 

 

September 30,

2018

 

EARNINGS STATEMENT DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

7,362

 

 

$

7,279

 

 

$

7,179

 

 

$

7,094

 

 

$

6,694

 

Interest expense

 

 

1,171

 

 

 

1,195

 

 

 

1,046

 

 

 

1,042

 

 

 

853

 

Net interest income

 

 

6,191

 

 

 

6,084

 

 

 

6,133

 

 

 

6,052

 

 

 

5,841

 

Provision for loan losses

 

 

-

 

 

 

205

 

 

 

50

 

 

 

-

 

 

 

195

 

Net interest income after provision for loan losses

 

 

6,191

 

 

 

5,879

 

 

 

6,083

 

 

 

6,052

 

 

 

5,646

 

Noninterest income

 

 

1,610

 

 

 

1,400

 

 

 

1,480

 

 

 

1,263

 

 

 

1,324

 

Noninterest expense

 

 

5,419

 

 

 

5,509

 

 

 

5,718

 

 

 

5,612

 

 

 

5,484

 

Income before income taxes

 

 

2,382

 

 

 

1,770

 

 

 

1,845

 

 

 

1,703

 

 

 

1,486

 

Income taxes

 

 

330

 

 

 

206

 

 

 

213

 

 

 

130

 

 

 

169

 

Net income

 

$

2,052

 

 

$

1,564

 

 

$

1,632

 

 

$

1,573

 

 

$

1,317

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share, basic

 

$

0.54

 

 

$

0.41

 

 

$

0.43

 

 

$

0.42

 

 

$

0.35

 

Net income per share, diluted

 

$

0.54

 

 

$

0.41

 

 

$

0.43

 

 

$

0.42

 

 

$

0.35

 

Cash dividends

 

$

0.12

 

 

$

0.12

 

 

$

0.12

 

 

$

0.12

 

 

$

0.12

 

Weighted average shares outstanding, basic

 

 

3,784,934

 

 

 

3,784,934

 

 

 

3,778,895

 

 

 

3,773,836

 

 

 

3,773,836

 

Weighted average shares outstanding, diluted

 

 

3,790,846

 

 

 

3,793,966

 

 

 

3,788,910

 

 

 

3,779,289

 

 

 

3,780,547

 

Book value

 

$

17.43

 

 

$

16.94

 

 

$

16.41

 

 

$

15.90

 

 

$

15.44

 

BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

726,339

 

 

$

717,528

 

 

$

700,502

 

 

$

730,805

 

 

$

669,977

 

Loans, net

 

$

539,832

 

 

$

538,593

 

 

$

539,672

 

 

$

544,188

 

 

$

527,802

 

Securities, including restricted investments

 

$

75,128

 

 

$

74,310

 

 

$

72,344

 

 

$

74,124

 

 

$

75,124

 

Deposits

 

$

614,000

 

 

$

607,256

 

 

$

592,358

 

 

$

635,638

 

 

$

566,231

 

Transaction accounts

(demand & interest checking accounts)

 

$

354,534

 

 

$

351,891

 

 

$

346,687

 

 

$

392,583

 

 

$

345,862

 

Shareholders' equity

 

$

65,976

 

 

$

64,106

 

 

$

62,133

 

 

$

60,007

 

 

$

58,277

 

PERFORMANCE RATIOS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (1)

 

 

3.73

%

 

 

3.73

%

 

 

3.89

%

 

 

3.79

%

 

 

3.81

%

Return on average assets

 

 

1.14

%

 

 

0.89

%

 

 

0.96

%

 

 

0.92

%

 

 

0.79

%

Return on average equity

 

 

12.46

%

 

 

9.94

%

 

 

10.83

%

 

 

10.58

%

 

 

8.96

%

Efficiency ratio (2)

 

 

69.11

%

 

 

73.16

%

 

 

75.41

%

 

 

76.29

%

 

 

76.02

%

Yield on earning assets

 

 

4.43

%

 

 

4.46

%

 

 

4.55

%

 

 

4.44

%

 

 

4.37

%

Cost of funds

 

 

0.73

%

 

 

0.76

%

 

 

0.69

%

 

 

0.67

%

 

 

0.71

%

 

  

(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.

3

 

FAUQUIER BANKSHARES, INC.

Selected Financial Data By Quarter

 

 

At or For the Quarter Ended,

 

(Dollars in thousands, except for ratios)

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

December 31,

2018

 

 

September 30,

2018

 

ASSET QUALITY RATIOS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

1,941

 

 

$

2,278

 

 

$

1,969

 

 

$

1,993

 

 

$

2,381

 

Restructured loans still accruing

 

 

2,518

 

 

 

2,979

 

 

 

3,319

 

 

 

3,361

 

 

 

3,402

 

Loans 90+ days past due and accruing

 

 

867

 

 

 

484

 

 

 

1,163

 

 

 

1,227

 

 

 

1,841

 

Total nonperforming loans

 

 

5,326

 

 

 

5,741

 

 

 

6,451

 

 

 

6,581

 

 

 

7,624

 

Other real estate owned, net

 

 

1,356

 

 

 

1,356

 

 

 

1,356

 

 

 

1,356

 

 

 

1,356

 

Total nonperforming assets

 

$

6,682

 

 

$

7,097

 

 

$

7,807

 

 

$

7,937

 

 

$

8,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

5,395

 

 

$

5,409

 

 

$

5,281

 

 

$

5,176

 

 

$

5,214

 

Allowance for loan losses to total loans

 

 

0.99

%

 

 

0.99

%

 

 

0.97

%

 

 

0.94

%

 

 

0.98

%

Nonaccrual loans to total loans

 

 

0.36

%

 

 

0.42

%

 

 

0.36

%

 

 

0.36

%

 

 

0.45

%

Allowance for loan losses to nonperforming loans

 

 

101.30

%

 

 

94.22

%

 

 

81.86

%

 

 

78.65

%

 

 

68.39

%

Nonperforming loans to total loans

 

 

0.98

%

 

 

1.06

%

 

 

1.18

%

 

 

1.20

%

 

 

1.43

%

Nonperforming assets to total assets

 

 

0.92

%

 

 

0.99

%

 

 

1.11

%

 

 

1.09

%

 

 

1.34

%

Net loan charge-offs (recoveries)

 

$

14

 

 

$

77

 

 

$

(55

)

 

$

38

 

 

$

(41

)

Net loan charge-offs (recoveries) to average loans

 

 

0.003

%

 

 

0.01

%

 

 

(0.01

)%

 

 

0.01

%

 

 

(0.01

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


4

 

FAUQUIER BANKSHARES, INC.

Selected Financial Data

 

(Dollars in thousands, except per share data)

 

For the Nine Months Ended

 

 

 

September 30, 2019

 

 

September 30, 2018

 

EARNINGS STATEMENT DATA:

 

 

 

 

 

 

 

 

Interest income

 

$

21,821

 

 

$

19,604

 

Interest expense

 

 

3,413

 

 

 

2,191

 

Net interest income

 

 

18,408

 

 

 

17,413

 

Provision for loan losses

 

 

255

 

 

 

507

 

Net interest income after provision for loan losses

 

 

18,153

 

 

 

16,906

 

Noninterest income

 

 

4,487

 

 

 

4,811

 

Noninterest expense

 

 

16,643

 

 

 

16,539

 

Income before income taxes

 

 

5,997

 

 

 

5,178

 

     Income taxes

 

 

749

 

 

 

616

 

Net income

 

$

5,248

 

 

$

4,562

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA:

 

 

 

 

 

 

 

 

Net income per share, basic

 

$

1.39

 

 

$

1.21

 

Net income per share, diluted

 

$

1.38

 

 

$

1.21

 

Cash dividends

 

$

0.36

 

 

$

0.36

 

Weighted average shares outstanding, basic

 

 

3,782,943

 

 

 

3,771,945

 

Weighted average shares outstanding, diluted

 

 

3,791,263

 

 

 

3,779,388

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS:

 

 

 

 

 

 

 

 

Net interest margin (1)

 

 

3.78

%

 

 

3.81

%

Return on average assets

 

 

1.00

%

 

 

0.93

%

Return on average equity

 

 

11.10

%

 

 

10.66

%

Efficiency ratio (2)

 

 

72.52

%

 

 

76.80

%

 

 

 

 

 

 

 

 

 

Net loan charge-offs

 

$

36

 

 

$

386

 

Net loan charge-offs to average loans

 

 

0.007

%

 

 

0.08

%

 

  

(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.

 

5