Farmers Bank Q3 Net Income Reported at $15.4M, Loan Growth of $27.3M
YOUNGSTOWN – Farmers National Banc Corp. reports third-quarter net income of $15.4 million — its 159th consecutive quarter of profitability. This compares to $16.0 million for the three months ended Sept. 30, 2021.
Diluted earnings per share were 46 cents for the third quarter compared to 56 cents inm the third-quarter 2021 and the net income of $16 million for the same third-quarter.
Third-quarter 2022 results include pretax items of $872,000 for merger related costs and combined net losses of $6,000 on the sale of securities and the sale of other assets. Excluding these items, net income for the quarter ended Sept. 30, 2022 would have been $16.2 million or 48 cents per diluted share.
“We’re extremely pleased with another quarter of solid loan growth and continue to see lending opportunities in the market,” said Kevin J. Helmick, president and CEO. “Our quarterly earnings were strong, we opened a new lab branch in Canton during the quarter and we look forward to receiving regulatory approval for our acquisition of Emclaire Financial Corp.”
On March 23, Farmers entered into a mergerplan with Emclaire Financial Corp., a Pennsylvania corporation and the parent company of The Farmers National Bank of Emlenton. Emclaire’s shareholders approved the transaction July 20 and the merger is expected to completed once the remaining closing conditions are met and regulatory approvals are received. As of Sept. 30, 2022, Emclaire reported total assets of $1 billion, gross loans of $810.1 million, deposits of $927.7 million and equity of $71 million.
For the third quarter Farmers reports total assets of $4.12 billion, up from $4.11 billion at the end of the 2022 second quarter, but down from $4.14 billion at the end of December 2021.
Gross loans, excluding those loans held for sale and Paycheck Protection Program loans, increased to $2.4 billion during the third quarter, compared to $2.37 billion in the second quarter.
Growth of $27.3 million for the third-quarter was equal to the growth of 4.6% on an annualized basis. As of Sept. 30, Farmers PPP loans had declined to a minimal $637,000 before deferred fees still to be forgiven and $13,000 in net deferred fees associated with these loans yet to be recognized as income.
Farmers reports the quarter again exhibited strength across multiple sectors of the loan portfolio with loan pipelines still showing solid volume.
Additionally, for the third quarter Farmers reports an efficiency ratio of 48.5%, a return on average assets of 1.55% and a ROAE and ROAT of 19.6% and 28.3% respectively. All those figures exclude certain items and are non-GAAP.
The company’s available sale securities decreased $66.5 million from the $1.36 billion reported in the second quarter of 2022 to $1.3 billion for the third-quarter. Deposits also declined from $3.63 billion reported on June 30 to $3.57 billion on Sept. 30. Deposit balances were $3.55 billion at the end of 2021.
Total stockholders’ equity also decreased to $265.6 million at the end of the third quarter from the $321.4 million at the end of June and $472.4 million at the end of 2021.
Net interest income increased to $31.8 million for the third quarter from $26.5 million a year ago. Noninterest income decreased $188,000 to $8.8 million for the third quarter of 2022 compared to the same quarter in 2021.
Founded in 1887, Farmers National Banc Corp. has $4.1 billion in banking assets. Wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, with 46 banking locations in Mahoning, Trumbull, Columbiana, Portage, Stark, Wayne, Medina, Geauga and Cuyahoga counties in Ohio and Beaver County in Pennsylvania, and Farmers Trust Company, which operates five trust offices and offers services in the same geographic markets. Total wealth management assets under care at Sept. 30 are $2.9 billion. Farmers National Insurance, a wholly-owned subsidiary of The Farmers National Bank of Canfield, offers a variety of insurance products.
Published by The Business Journal, Youngstown, Ohio.