Farmers Banc Corp. Reports Record Annual Net Income

CANFIELD, Ohio – Farmers National Banc Corp. Wednesday reported fourth-quarter net income of $5.36 million, or 20 cents a share, and full-year 2016 net income of $20.56 million, or 76 cents a share, the latter a record.

Farmers is the holding company of Farmers National Bank, Farmers Trust Co. and the Bowers Insurance Group.

This compares to third-quarter net income of $5.38 million, or 20 cents a share, and year-ago net income of $3.18 million, or 12 cents a share. Full-year 2015 income was $8.06 million, or 36 cents a share.

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 of net income, which has been achieved through the successful integration of our recent mergers [National Bancshares, 1st Tri-State and Bowers Insurance], our 10% organic loan growth and our continued focus on increasing noninterest income and careful management of noninterest expenses.”

Key performance ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2015:

  • Return on average assets ($1.978 billion at Dec. 31) annualized, 1.08%, 1.10%, 0.68%.
  • Return on average equity ($219.02 million at Dec. 31) annualized, 9.74%, 9.97%, 6.51%.
  • Net interest margin annualized, 3.95%, 3.97%, 3.99%.
  • Efficiency ratio, 60.37%, 60.85%, 73.07%.

Net interest income for the quarter was $17.29 million, up from $17.19 million the third quarter and $16.46 million the year-ago quarter.

Other income (includes fees, trust, insurance mortgage servicing) was $6.08 million for the three months ended Dec. 31, down from $6.49 million the preceding three months but ahead of the $5.18 million recorded the last three months of 2015.

Net loans were $1.417 billion at Dec. 31 compared to $1.385 billion at Sept. 30 and $1.288 billion at Dec. 31, 2015.

Most of the loan growth occurred in commercial real estate, agriculture and residential real estate, Farmers said.

Asset quality remained strong with the ratio of nonperforming assets to total assets at 0.44%, up only one basis point from the third quarter but down from 0.61% the last quarter of 2015.

Nonperforming loans stood at $8.17 million at Dec. 31, at $8.00 million three months earlier and $10.45 million at Dec. 31, 2015.

Net charge-offs of uncollectable debts were $656,000, $312,000 and $296,000 respectively.

Noninterest expense (includes salaries and benefits, data processing, occupancy and rents, marketing and Federal Deposit Insurance Corp. premiums) was $14.98 million, down from $15.19 million the previous quarter but up slightly from $14.88 the year-ago quarter.

At Dec. 31, total deposits stood at $1.525 billion.

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