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Section 1: 8-K (8-K)

fbss-8k_20190331.htm

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 22, 2019

 

Fauquier Bankshares, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Virginia

000-25805

54-1288193

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

10 Courthouse Square,

Warrenton, Virginia

 

20186

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (540) 347-2700

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On April 22, 2019, Fauquier Bankshares, Inc. issued a press release reporting its first quarter 2019 financial results.  A copy of the press release is attached as Exhibit 99.1 to this current report on Form 8-K.

The information in this Form 8-K, and the exhibit hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

 

Exhibit

Number

 

Description

99.1

 

Fauquier Bankshares, Inc. Press Release First Quarter 2019 Results

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Fauquier Bankshares, Inc.

 

 

 

 

Date: April 22, 2019

 

By:

/s/ Christine E. Headly

 

 

 

Christine E. Headly

 

 

 

Executive Vice President and Chief Financial Officer

 

 

 

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Section 2: EX-99.1 (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 First QUARTER 2019 RESULTS

 

 

Net income was $1.6 million for the first quarter, a slight increase when compared with the prior quarter and the first quarter of 2018;  

 

 

Net loans decreased $4.5 million for the first quarter compared with the prior quarter and increased $42.0 million when compared with the first quarter of 2018;

 

 

Deposits decreased $43.3 million to $592.4 million for the first quarter compared with the prior quarter and increased  $15.2 million when compared with the first quarter of 2018;

 

 

Net interest margin increased to 3.89% for the first quarter compared with 3.79% for the prior quarter and 3.74% for the first quarter of 2018;  and

 

 

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

 

 

WARRENTON, VA., April 22, 2019 - Fauquier Bankshares, Inc. (the Company) (NASDAQ: FBSS), parent company of The Fauquier Bank, reported net income of $1.6 million, or $0.43 per diluted share for the quarter ended March 31, 2019, compared with $1.6 million, or $0.42 per diluted share for the prior quarter and for the first quarter of 2018.  

 

For the quarter ended March 31, 2019, the Company’s return on average equity (ROE) and return on average assets (ROA) were 10.83% and 0.96%, respectively, compared with 10.58% and 0.92% for the prior quarter, respectively, and 11.44% and 0.97%, for the first quarter of 2018, respectively.  

 

Marc Bogan, President and CEO said, “Performance in the first quarter of 2019 was good, especially given the challenging interest rate environment and competitive marketplace.  Loan and deposit growth has been difficult, but we are focused on maintaining strong margins and managing our costs, which has led to improvement in earnings available to shareholders.  We are also pleased with our Charity of Choice initiative during the quarter that resulted in $40,000 in charitable contributions to local and national charities.  We believe this is the essence of community banking, A Community Bank Investing in its Community.”

 

Total assets were $700.5 million on March 31, 2019 compared with $730.8 million for the prior quarter and $682.1 million on March 31, 2018.  Net loans were $539.7 million on March 31, 2019 compared with $544.2 million for the prior quarter and $497.7 million on March 31, 2018.  Total deposits were $592.4 million on March 31, 2019 compared with $635.6 million for the prior quarter and $577.2 million on March 31, 2018.  Low cost transaction deposits (demand and interest checking accounts) were $346.7 million on March 31, 2019 compared with $392.6 million for the prior quarter and $351.5 million on March 31, 2018.

 

Net interest margin was 3.89% for the first quarter of 2019 compared with 3.79% for the prior quarter, and 3.74% for the first quarter of 2018.  Net interest income was $6.1 million for the first quarter of 2019 compared with $6.1 million for the prior quarter and $5.7 million for the first 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 $5.3 million or 0.97% of total loans on March 31, 2019 compared with $5.2 million or 0.94% of total loans for the prior quarter and $5.4 million or 1.07% of total loans on March 31, 2018.  

 

Nonperforming assets were $7.8 million on March 31, 2019, compared with $7.9 million for the prior quarter and $10.9 million on March 31, 2018.  Included in nonperforming assets for the quarter were $6.5 million of nonperforming loans and $1.4 million of other real estate owned.  Net loan recoveries were $55,000 for the first quarter of 2019 compared with net loan charge-offs of $38,000 for the prior quarter and net loan recoveries of $7,000 for the first quarter of 2018, respectively.  

 

Noninterest income was $1.5 million in the first quarter of 2019, compared with $1.3 million for the prior quarter and $1.9 million for the first quarter of 2018.  

  

Noninterest expense for the first quarter of 2019 was $5.7 million compared with $5.6 million for the prior quarter and $5.5 million for the first quarter of 2018.  

 

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Shareholders’ equity was $62.1 million on March 31, 2019 compared with $60.0 million for the prior quarter and $56.7 million on March 31, 2018.  Book value per common share was $16.41 on March 31, 2019 compared with $15.90 for the prior quarter and $15.01 on March 31, 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.

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FAUQUIER BANKSHARES, INC.

Selected Financial Data By Quarter

 

 

At or For the Quarter Ended,

 

(Dollars in thousands, except per share data)

 

March 31,

2019

 

 

December 31,

2018

 

 

September 30,

2018

 

 

June 30,

2018

 

 

March 31,

2018

 

EARNINGS STATEMENT DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

7,179

 

 

$

7,094

 

 

$

6,694

 

 

$

6,540

 

 

$

6,370

 

Interest expense

 

 

1,046

 

 

 

1,042

 

 

 

853

 

 

 

686

 

 

 

652

 

Net interest income

 

 

6,133

 

 

 

6,052

 

 

 

5,841

 

 

 

5,854

 

 

 

5,718

 

Provision for loan losses

 

 

50

 

 

 

-

 

 

 

195

 

 

 

12

 

 

 

300

 

Net interest income after provision for loan losses

 

 

6,083

 

 

 

6,052

 

 

 

5,646

 

 

 

5,842

 

 

 

5,418

 

Noninterest income

 

 

1,480

 

 

 

1,263

 

 

 

1,324

 

 

 

1,624

 

 

 

1,863

 

Noninterest expense

 

 

5,718

 

 

 

5,612

 

 

 

5,484

 

 

 

5,574

 

 

 

5,481

 

Income before income taxes

 

 

1,845

 

 

 

1,703

 

 

 

1,486

 

 

 

1,892

 

 

 

1,800

 

Income taxes

 

 

213

 

 

 

130

 

 

 

169

 

 

 

233

 

 

 

214

 

Net income

 

$

1,632

 

 

$

1,573

 

 

$

1,317

 

 

$

1,659

 

 

$

1,586

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share, basic

 

$

0.43

 

 

$

0.42

 

 

$

0.35

 

 

$

0.44

 

 

$

0.42

 

Net income per share, diluted

 

$

0.43

 

 

$

0.42

 

 

$

0.35

 

 

$

0.44

 

 

$

0.42

 

Cash dividends

 

$

0.12

 

 

$

0.12

 

 

$

0.12

 

 

$

0.12

 

 

$

0.12

 

Weighted average shares outstanding, basic

 

 

3,778,895

 

 

 

3,773,836

 

 

 

3,773,836

 

 

 

3,773,739

 

 

 

3,768,197

 

Weighted average shares outstanding, diluted

 

 

3,788,910

 

 

 

3,779,289

 

 

 

3,780,547

 

 

 

3,783,159

 

 

 

3,777,114

 

Book value

 

$

16.41

 

 

$

15.90

 

 

$

15.44

 

 

$

15.29

 

 

$

15.01

 

BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

700,502

 

 

$

730,805

 

 

$

669,977

 

 

$

651,529

 

 

$

682,120

 

Loans, net

 

$

539,672

 

 

$

544,188

 

 

$

527,802

 

 

$

505,623

 

 

$

497,691

 

Securities, including restricted investments

 

$

72,344

 

 

$

74,124

 

 

$

75,124

 

 

$

75,018

 

 

$

72,520

 

Deposits

 

$

592,358

 

 

$

635,638

 

 

$

566,231

 

 

$

565,835

 

 

$

577,241

 

Transaction accounts

(demand & interest checking accounts)

 

$

346,687

 

 

$

392,583

 

 

$

345,862

 

 

$

345,063

 

 

$

351,485

 

Shareholders' equity

 

$

62,133

 

 

$

60,007

 

 

$

58,277

 

 

$

57,698

 

 

$

56,666

 

PERFORMANCE RATIOS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (1)

 

 

3.89

%

 

 

3.79

%

 

 

3.81

%

 

 

3.88

%

 

 

3.74

%

Return on average assets

 

 

0.96

%

 

 

0.92

%

 

 

0.79

%

 

 

1.02

%

 

 

0.97

%

Return on average equity

 

 

10.83

%

 

 

10.58

%

 

 

8.96

%

 

 

11.66

%

 

 

11.44

%

Efficiency ratio (2)

 

 

75.41

%

 

 

76.29

%

 

 

76.02

%

 

 

77.16

%

 

 

77.24

%

Yield on earning assets

 

 

4.55

%

 

 

4.44

%

 

 

4.37

%

 

 

4.33

%

 

 

4.16

%

Cost of funds

 

 

0.69

%

 

 

0.67

%

 

 

0.71

%

 

 

0.58

%

 

 

0.54

%

 

  

(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)

 

March 31,

2019

 

 

December 31,

2018

 

 

September 30,

2018

 

 

June 30,

2018

 

 

March 31,

2018

 

ASSET QUALITY RATIOS:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

1,969

 

 

$

1,993

 

 

$

2,381

 

 

$

2,661

 

 

$

3,688

 

Restructured loans still accruing

 

 

3,319

 

 

 

3,361

 

 

 

3,402

 

 

 

3,442

 

 

 

3,744

 

Loans 90+ days past due and accruing

 

 

1,163

 

 

 

1,227

 

 

 

1,841

 

 

 

1,665

 

 

 

2,102

 

Total nonperforming loans

 

 

6,451

 

 

 

6,581

 

 

 

7,624

 

 

 

7,768

 

 

 

9,534

 

Other real estate owned, net

 

 

1,356

 

 

 

1,356

 

 

 

1,356

 

 

 

1,356

 

 

 

1,356

 

Total nonperforming assets

 

$

7,807

 

 

$

7,937

 

 

$

8,980

 

 

$

9,124

 

 

$

10,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

$

5,281

 

 

$

5,176

 

 

$

5,214

 

 

$

4,978

 

 

$

5,400

 

Allowance for loan losses to total loans

 

 

0.97

%

 

 

0.94

%

 

 

0.98

%

 

 

0.98

%

 

 

1.07

%

Nonaccrual loans to total loans

 

 

0.36

%

 

 

0.36

%

 

 

0.45

%

 

 

0.52

%

 

 

0.73

%

Allowance for loan losses to nonperforming loans

 

 

81.86

%

 

 

78.65

%

 

 

68.39

%

 

 

64.08

%

 

 

56.64

%

Nonperforming loans to total loans

 

 

1.18

%

 

 

1.20

%

 

 

1.43

%

 

 

1.52

%

 

 

1.90

%

Nonperforming assets to total assets

 

 

1.11

%

 

 

1.09

%

 

 

1.34

%

 

 

1.40

%

 

 

1.60

%

Net loan charge-offs (recoveries)

 

$

(55

)

 

$

38

 

 

$

(41

)

 

$

434

 

 

$

(7

)

Net loan charge-offs (recoveries) to average loans

 

 

(0.01

)%

 

 

0.01

%

 

 

(0.01

)%

 

 

0.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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