Farmers 2020 Income Totals $41.9M

CANFIELD, Ohio – Farmers National Banc Corp., the parent company of Farmers National Bank, reports 2020 net income of $41.9 million, or $1.47 per diluted share, up from $35.8 million, or $1.28 per share, in 2019.

For the fourth quarter alone, net income was $11.4 million, or 40 cents per share, up from $9.7 million, or 35 cents per share, in the final quarter of 2019.

“In an unprecedented year, I must take time to reflect on the challenges we faced this year with the onset of the pandemic. Farmers Associates stood strong by delivering creative and steadfast customer service and support to our stakeholders,” said President and CEO Kevin J. Helmick in a statement  I would like to thank all of our Associates for helping deliver another outstanding quarter and year of record results.  Our record fourth quarter financial results demonstrate that when our customers and communities win, we win, and we remain focused on ensuring our customers are well positioned to achieve their financial goals.”  

In the initial period of the Paycheck Protection Program, Farmers provided 1,714 loans totaling $199.8 million. Of those, $67.6 million has been forgiven by the Small Business Administration. Numbers on the newest round of PPP funding were not released, though Farmers is processing applications.

Among the highlights cited by Farmers in its quarterly earnings report are:

  • Loans totaled $2.08 billion at Dec. 31, up from $1.81 billion at the close of 2019. The increase is largely due to PPP loans. Loans now comprise 74.4% of the bank’s average earning assets.
  • Nonperforming assets are low at 0.45%, though that figure is up from 0.26% at the end of 2019.
  • Nonbrokered deposits are $2.6 billion as of Dec. 31, up 34% from Dec. 31, 2019.

Key efficiency ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2019, are:

  • Return on average assets annualized: 1.49%, 1.46%, 1.56%.
  • Return on average equity annualized: 13.1%, 12.87%, 14.02%.
  • Net interest margin annualized: 3.73%, 3.59%, 3.74%.
  • Efficiency ratio tax-equivalent basis: 50.25%, 50.66%, 50.75%.

Net interest income was $25.8 million in the fourth quarter, up from $24.2 million in the third quarter and $23.9 million in the final quarter of 2019.

Noninterest income was $10.7 million, up from $9.5 million in the third quarter and $9.1 million in the fourth quarter of 2019.

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