Farmers Bank Reports Q1 Net Income of $7.1M

CANFIELD, Ohio – Farmers National Banc Corp. reported net income of $7.1 million during the three months ended March 31, compared with $15.8 million during the same period last year.

Diluted earnings were 19 cents per share during the first quarter of 2023, compared with 47 cents for the first quarter of 2022.

The results for the first quarter include items related to Farmers’ acquisition of Emclaire Financial Corp. of Emlenton, Pa.  Among these items were provision for credit loss expenses of $7.7 million, $4.3 million for acquisition-related costs and combined net gains of $91,000 on the sale of securities and sales of other assets.

Excluding these items, net income for the first quarter would have been $16.5 million, or 44 cents per diluted share, Farmers reported. The merger with Emclaire closed Jan. 1.

The first-quarter results make for 161 consecutive profitable quarters for Farmers.

“As volatility within the macro-economic environment has increased, we have remained focused on serving our retail, commercial and wealth customers, controlling expenses, and managing capital levels,” said Kevin J. Helmick, president and CEO. “In addition, we continue to allocate capital to support our dividend policy and share repurchase program.”

“We remain well positioned to navigate the current challenges in the banking industry and interest rate environment as a result of our experienced leadership team, diverse revenue streams, enhanced scale, and legendary customer service. I am proud of our team’s performance during the first quarter, and encouraged by the direction Farmers is headed,” Helmick said.

Farmers reported total assets of $5.11 billion at March 31, 2023, compared with $4.08 billion as of Dec. 31, 2022. The increase was primarily because of the acquisition of Emclaire, which added $1.05 billion in assets.

Gross loans increased to $3.1 billion during the first quarter, compared with $2.3 billion a year ago, Farmers reported.

Also, Farmers reported an efficiency ratio of 53.5%, a return on average assets of 1.30%, and ROAE and ROATE of 18.0% and 38.1%, respectively, during the first quarter. All those figures exclude certain items and are non-GAAP.

Net interest income totaled $36.6 million in the first quarter of 2023, compared with $31.2 million for the first quarter of 2022. Noninterest income totaled $10.4 million during the quarter, compared with $17.7 million during the first quarter of 2022.

Published by The Business Journal, Youngstown, Ohio.