Fauquier Bankshares Inc. (FBSS, Financial) filed Quarterly Report for the period ended 2009-06-30.
Fauquier Bankshares Inc. is a bank holding company and owns all of the voting shares of The Fauquier Bank. The basic services offered by the bank include: demand interest bearing and non-interest bearing accounts money market deposit accounts NOW accounts time deposits safe deposit services credit cards cash management direct deposits notary services money orders night depository traveler\'s checks cashier\'s checks domestic collections savings bonds bank drafts automated tellerservices drive-in tellers internet banking and banking by mail. Fauquier Bankshares Inc. has a market cap of $50.4 million; its shares were traded at around $14 with a P/E ratio of 14 and P/S ratio of 1.5. The dividend yield of Fauquier Bankshares Inc. stocks is 5.7%. Fauquier Bankshares Inc. had an annual average earning growth of 7.2% over the past 5 years.
The Banks non-performing assets totaled $3.2 million or 0.70% of total loans and repossessed assets, including real estate owned, at June 30, 2009, as compared with $4.3 million or 0.97% of total loans and repossessed assets at December 31, 2008, and $3.0 million or 0.70% of total loans and repossessed assets at June 30, 2008. The provision for loan losses was $560,000 for the first six months of 2009 compared with $1.29 million for the first six months of 2008. Loan chargeoffs, net of recoveries, totaled $249,000 or 0.06% of total average loans for the first six months of 2009, compared with $1.16 million or 0.28% of total average loans for the first six months of 2008. The $730,000 decrease in the provision for loan losses from the first six months of 2008 to the first six months of 2009 was largely in response to the $907,000 decline in net charge-offs for the respective six month periods, as well as the decline in non-performing assets since September 30, 2008. Total allowance for loan losses was $5.1 million or 1.11% of total
Net income was $724,000 for the second quarter of 2009, a 23.2% decrease from the second quarter of 2008 net income of $942,000. Earnings per share on a fully diluted basis were $0.20 in 2009 compared to $0.26 in 2008. Profitability as measured by return on average assets decreased from 0.76% in the second quarter of 2008 to 0.55% for the same period in 2009. Profitability as measured by return on average equity decreased from 8.80% to 7.02% over the same respective second quarters in 2008 and 2009. The decline in net income and the corresponding profitability measures was primarily due to the increase of $374,000 in FDIC insurance including a $240,000 special assessment at June 30, 2009, expenses of approximately $291,000 related to the contested election of directors at the 2009 annual meeting of shareholders (proxy contest), and the $113,000 loss on the impairment of the Companys investment in Silverton Banks common stock. This was partially offset by a $299,000 increase in net interest income in the second quarter of 2009 compared with the second quarter of 2008, and a $474,000 reduction in provision for loan losses for the same time periods. The impact of the proxy contest on net income was approximately $192,000, net of tax benefit, or $0.053 per share on a fully diluted basis for the quarter. The impact of the $240,000 FDIC special assessment was approximately $158,000, net of tax benefit, or $0.044 per share on a fully diluted basis for the quarter. The impact of the $113,000 loss on the impairment of the investment in Silverton Banks common stock, having no corresponding tax benefit at this time, had the impact of approximately $0.031 per share on a fully diluted basis for the quarter.
Net interest income increased $299,000 or 6.2% to $5.17 million for the quarter ended June 30, 2009 from $4.87 million for the quarter ended June 30, 2008. The increase in net interest income was partially due to the impact of total average earning assets increasing 6.0% from $462.4 million during the second quarter of 2008 to $490.3 million during the second quarter of 2009. In addition, the Companys net interest margin increased from 4.22% in the second quarter of 2008 to 4.23% in the second quarter of 2009.
Average investment security balances decreased $4.0 million from $38.6 million in the second quarter of 2008 to $34.6 million in the second quarter of 2009. The tax-equivalent average yield on investments decreased from 5.11% for the second quarter of 2008 to 4.82% for the second quarter of 2009. Together, there was a decrease in interest and dividend income on security investments of $73,000 or 15.8%, from $462,000 for the second quarter of 2008 to $390,000 for the second quarter of 2009. This decrease was primarily due to the suspension of dividend income on FHLB of Atlanta stock for the second quarter of 2009. Interest income on deposits in other banks decreased $1,000 from second quarter 2008 to second quarter 2009. Interest income on federal funds sold decreased $4,000 from the second quarter of 2008 to the second quarter of 2009, reflecting a decline in the average balances from $549,000 to $75,000.
Total interest expense decreased $482,000 or 22.0% from $2.19 million for the second quarter of 2008 to $1.71 million for the second quarter of 2009 primarily due to the overall decline in shorter-term market interest rates. Interest paid on deposits decreased $209,000 or 12.6% from $1.65 million for the second quarter of 2008 to $1.44 million for the second quarter of 2009. Average NOW deposit balances decreased $12.3 million from the second quarter of 2008 to the second quarter of 2009, while the average rate on NOW accounts decreased from 0.89% to 0.40% resulting in a reduction of $122,000 in NOW interest expense for the second quarter of 2009. Average money market account balances decreased $23.5 million from second quarter 2008 to second quarter 2009, while their average rate decreased from 1.94% to 0.79% over the same period resulting in a decrease of $315,000 of interest expense for the second quarter of 2009. Average time deposit balances increased $63.0 million from second quarter of 2008 to the second quarter of 2009 while the average rate on time deposits decreased from 3.66% to 2.86% resulting in an increase of $243,000 in interest expense for the second quarter of 2009.
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Fauquier Bankshares Inc. is a bank holding company and owns all of the voting shares of The Fauquier Bank. The basic services offered by the bank include: demand interest bearing and non-interest bearing accounts money market deposit accounts NOW accounts time deposits safe deposit services credit cards cash management direct deposits notary services money orders night depository traveler\'s checks cashier\'s checks domestic collections savings bonds bank drafts automated tellerservices drive-in tellers internet banking and banking by mail. Fauquier Bankshares Inc. has a market cap of $50.4 million; its shares were traded at around $14 with a P/E ratio of 14 and P/S ratio of 1.5. The dividend yield of Fauquier Bankshares Inc. stocks is 5.7%. Fauquier Bankshares Inc. had an annual average earning growth of 7.2% over the past 5 years.
Highlight of Business Operations:
Net income of $724,000 for the second quarter of 2009, was a 23.2% decrease from the net income for the second quarter of 2008 of $942,000. Net income of $1.65 million for the six months ending June 30, 2009, was a 15.6% decrease from the net income for the six months ending June 30, 2008 of $1.95 million. Loans, net of reserve, totaling $452.1 million at June 30, 2009, increased 4.0% when compared with December 31, 2008, and increased 6.4% when compared with June 30, 2008. Deposits, totaling $412.6 million at June 30, 2009, increased 3.1% compared with year-end 2008, and increased 6.3% when compared with June 30, 2008. Assets under WMS management, totaling $279.3 million in market value at June 30, 2009, declined 3.1% from $288.2 million in market value at June 30, 2008, due to the decline in valuations of common stock under management. For example, from June 30, 2008 to June 30, 2009, stocks measured in the Standard & Poors 500 index declined by approximately 28.5%.The Banks non-performing assets totaled $3.2 million or 0.70% of total loans and repossessed assets, including real estate owned, at June 30, 2009, as compared with $4.3 million or 0.97% of total loans and repossessed assets at December 31, 2008, and $3.0 million or 0.70% of total loans and repossessed assets at June 30, 2008. The provision for loan losses was $560,000 for the first six months of 2009 compared with $1.29 million for the first six months of 2008. Loan chargeoffs, net of recoveries, totaled $249,000 or 0.06% of total average loans for the first six months of 2009, compared with $1.16 million or 0.28% of total average loans for the first six months of 2008. The $730,000 decrease in the provision for loan losses from the first six months of 2008 to the first six months of 2009 was largely in response to the $907,000 decline in net charge-offs for the respective six month periods, as well as the decline in non-performing assets since September 30, 2008. Total allowance for loan losses was $5.1 million or 1.11% of total
Net income was $724,000 for the second quarter of 2009, a 23.2% decrease from the second quarter of 2008 net income of $942,000. Earnings per share on a fully diluted basis were $0.20 in 2009 compared to $0.26 in 2008. Profitability as measured by return on average assets decreased from 0.76% in the second quarter of 2008 to 0.55% for the same period in 2009. Profitability as measured by return on average equity decreased from 8.80% to 7.02% over the same respective second quarters in 2008 and 2009. The decline in net income and the corresponding profitability measures was primarily due to the increase of $374,000 in FDIC insurance including a $240,000 special assessment at June 30, 2009, expenses of approximately $291,000 related to the contested election of directors at the 2009 annual meeting of shareholders (proxy contest), and the $113,000 loss on the impairment of the Companys investment in Silverton Banks common stock. This was partially offset by a $299,000 increase in net interest income in the second quarter of 2009 compared with the second quarter of 2008, and a $474,000 reduction in provision for loan losses for the same time periods. The impact of the proxy contest on net income was approximately $192,000, net of tax benefit, or $0.053 per share on a fully diluted basis for the quarter. The impact of the $240,000 FDIC special assessment was approximately $158,000, net of tax benefit, or $0.044 per share on a fully diluted basis for the quarter. The impact of the $113,000 loss on the impairment of the investment in Silverton Banks common stock, having no corresponding tax benefit at this time, had the impact of approximately $0.031 per share on a fully diluted basis for the quarter.
Net interest income increased $299,000 or 6.2% to $5.17 million for the quarter ended June 30, 2009 from $4.87 million for the quarter ended June 30, 2008. The increase in net interest income was partially due to the impact of total average earning assets increasing 6.0% from $462.4 million during the second quarter of 2008 to $490.3 million during the second quarter of 2009. In addition, the Companys net interest margin increased from 4.22% in the second quarter of 2008 to 4.23% in the second quarter of 2009.
Average investment security balances decreased $4.0 million from $38.6 million in the second quarter of 2008 to $34.6 million in the second quarter of 2009. The tax-equivalent average yield on investments decreased from 5.11% for the second quarter of 2008 to 4.82% for the second quarter of 2009. Together, there was a decrease in interest and dividend income on security investments of $73,000 or 15.8%, from $462,000 for the second quarter of 2008 to $390,000 for the second quarter of 2009. This decrease was primarily due to the suspension of dividend income on FHLB of Atlanta stock for the second quarter of 2009. Interest income on deposits in other banks decreased $1,000 from second quarter 2008 to second quarter 2009. Interest income on federal funds sold decreased $4,000 from the second quarter of 2008 to the second quarter of 2009, reflecting a decline in the average balances from $549,000 to $75,000.
Total interest expense decreased $482,000 or 22.0% from $2.19 million for the second quarter of 2008 to $1.71 million for the second quarter of 2009 primarily due to the overall decline in shorter-term market interest rates. Interest paid on deposits decreased $209,000 or 12.6% from $1.65 million for the second quarter of 2008 to $1.44 million for the second quarter of 2009. Average NOW deposit balances decreased $12.3 million from the second quarter of 2008 to the second quarter of 2009, while the average rate on NOW accounts decreased from 0.89% to 0.40% resulting in a reduction of $122,000 in NOW interest expense for the second quarter of 2009. Average money market account balances decreased $23.5 million from second quarter 2008 to second quarter 2009, while their average rate decreased from 1.94% to 0.79% over the same period resulting in a decrease of $315,000 of interest expense for the second quarter of 2009. Average time deposit balances increased $63.0 million from second quarter of 2008 to the second quarter of 2009 while the average rate on time deposits decreased from 3.66% to 2.86% resulting in an increase of $243,000 in interest expense for the second quarter of 2009.
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