This Virginia bank just reported a good quarter and raised its dividend. The shares have a current annual dividend yield of 3.87%, paid quarterly.
Fauquier Bankshares, Inc. (FBSS)
From Hughes Investment Management
Today we added a little more Fauquier Bankshares, Inc. at $12.75: cheap, smart old bankers, nice yield, plus good markets and good asset quality. Trades plenty some days. Over 110,000 shares left on its buyback; should be bought soon. The company owns most of its locations as well—maybe some hidden value there also. Insiders buying some this month. NWIN added a few shares under $30. Many insiders have also been buying.
Fauquier Bankshares’ regulatory capital ratios continue to be deemed “Well Capitalized,” the highest category assigned by the Federal Deposit Insurance Corporation (FDIC). At September 30, 2008, the company’s leverage ratio was 9.38%, compared with 9.35% one year earlier, and its total risk-based capital ratio was 13.13% compared with 12.71% at the same respective dates.
“With our level of capital strength, we can continue to extend credit and execute our growth strategies, including the building of new branch locations,” said Randy Ferrell, Fauquier President and CEO. While we are seeing some increase in our non-performing loans, it has been commensurate with the current economic conditions and continues to compare favorably with our bank peers. Our conservative principles have kept us away from the sub-prime mortgage and other high-risk lending activities that are making headlines recently.”
Fauquier reported the following performance strength indicators for the quarter ended September 30, 2008:
-- Net interest income before the loan loss provision for the third quarter of 2008 increased by 5.2% compared with the same quarter in 2007.
-- Net interest margin of 4.10% was slightly higher in the third quarter versus the same period in 2007.
-- Total deposits grew $17.4 million or 4.5% from June 30, 2008.
-- Charge-offs, net of recoveries, for the third quarter of 2008 was $66,000 compared with $114,000 for the same quarter in 2007.
Ferrell said, “The primary mission of The Fauquier Bank is to provide our community with the financial products and services that they need during both good times and difficult times. We continue to make loans available to our community as we have done during our 106-year history, and our management and Board are confident that we can continue to do so without requiring government support.”
Wow that’s some great numbers in hard times.
Douglas Hughes, Hughes Investment Management, banknewsletter.com, 888-814-7575, May 21, 2020