Farmers Banc Corp. Reports 2017 Net Income of $22.71M
CANFIELD, Ohio – Farmers National Banc Corp., holding company of Farmers Bank and Farmers Trust Co., Wednesday reported fourth-quarter net income of $5.23 million, or 19 cents a share, and full-year 2017 net income of $22.71 million, or 82 cents a share, a 10.5% increase from the full-year 2016 net income of $20.56 million, or 76 cents a share.
Excluding a $1.8 million adjustment of the net deferred tax asset resulting from the Tax Cuts and Jobs Act, offset by tax equated, net acquisition-related adjustments of $48,000, net income for the three month period ended Dec. 31 would have been $7.0 million, Farmers reported.
The fourth-quarter net income compares to third-quarter of $5.98 million, or 22 cents a share, and fourth-quarter 2016 income of $5.36 million, or 20 cents a share.
In its earnings release, Farmers cited these highlights: Total loan growth rose to $1.580 billion, 10.5% higher than the year-ago quarter, noninterest income decreased slightly to $6.05 million, compared to $6.08 million from the year-ago quarter, and the ratio of nonperforming assets to total assets remains a low 0.36%.
In a prepared statement, the president and CEO of the holding company and the bank, Kevin J. Helmick, said, “We are happy to report a record year in net income for Farmers, and we are excited about our success and entrance into expanded markets and remain focused on our strategic growth plan which has paved the way for the company to exceed $2 billion in assets in 2017. We continue to be encouraged by our loan growth, which has increased 10.5% during the past twelve months, and our 3.5% increase in noninterest income on a year over year basis.”
Key performance ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2016:
- Return on average assets annualized, 0.96%, 1.12%, 1.08%.
- Return on average equity annualized, 8.60%, 10.15%, 9.74%.
- Net interest margin annualized, 3.98%, 3.96%, 3.95%.
- Efficiency ratio, 59.13%, 59.93%, 60.37%.
Loans grew to $1.580 billion at Dec. 31, up from $1.427 billion at Dec. 31, 2017, and total assets grew to $2.159 billion from $1.966 billion year over year.
Net interest income was $19.07 million, up from $18.66 million the preceding quarter and $17.29 million the year-ago quarter.
Noninterest income (such as fees from mortgage services, trust services and insurance commissions) was $6.05 million, same as the second quarter, but down from $6.08 million the quarter ended Dec. 31, 2016.
Noninterest expense (includes salaries and employee benefits, rents, data processing, marketing, taxes, Federal Deposit Insurance Corp. premiums) was $15.40 million, compared to $15.80 million the second quarter and $15.00 million the year-ago quarter. Employee compensation led the category, $8.69 million, down from $8.92 million the second quarter and up from $8.24 million the year-ago quarter.
Deposits fell slightly to $1.604 billion at Dec. 31, from $1.609 billion the second quarter, but up from $1.524 billion the year-ago quarter.
Copyright 2018 The Business Journal, Youngstown, Ohio.
Published by The Business Journal, Youngstown, Ohio.
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