Farmers National Banc Corp. Posts Another Profitable Quarter

CANFIELD, Ohio – The Farmers National Banc Corp. reported second quarter earnings of $16 million, up from $15.6 million from the same quarter a year ago.

Diluted earnings per share were 47¢ for the second quarter of 2022 compared to 55¢ for the second quarter of 2021.

With Farmers entering into a merger agreement with Pennsylvania-based Emclaire Financial Corp. in March, the results of the second quarter 2022 included pretax items of $674,000 in merger related costs. Additionally, Farmers reported pretax security losses of $60,000 and a gain of $92,000 on the sale of assets. Excluding those items, the net income for the quarter ending June 30, 2022 would have been $16.5 million or 49¢ per diluted share.

“Our results for the second quarter were very solid and we are particularly pleased with the growth of our loan portfolio,” said Kevin J. Helmick, president and CEO. “Our lending teams have been working hard over the past several quarters and we are excited to see strong organic loan growth return to our balance sheet.”

Loan growth for the quarter was $89.6 million, excluding PPP loans, or 15.7% on an annualized basis. The efficiency ratio was 48.5%, the return on average assets was 1.59% and the ROAE and ROATE were 18.6% and 26.1% respectively, all excluding certain items, non-GAAP.

Total assets of Farmers was $4.11 billion at the end of the quarter, compared to $4.21 billion at the end of March and $4.14 billion at the end of 2021. Gross loans, excluding PPP loans and those loans held for sale were at $2.37 billion on June 30, up from $2.28 billion at the end of March. The PPP loans were at $2.5 million before deferred fees still to be forgiven.

Emclaire’s stockholders approved the merger with Farmers on July 20. The bank operates 19 branches in 10 counties throughout western Pennsylvania. As of the end of June, Emclaire had total assets of $1 billion, gross loans of $810.7 million, deposits of $937.6 million and equity of $80.2 milliion.

Some additional highlights of the Farmers second-quarter report:

  • Total deposits declined $68.3 million from $3.69 billion in March to $3.63 billion at the end of June, which was still above the $3.55 billion in deposits reported at the end of 2021.
  • Total stockholder equity decreased to $321.4 million at the end of the second quarter, compared to $393.9 million on March 31, 2022 and 472.4 million at Dec. 31, 2021.
  • Net interest income increased by 19.7% for the second quarter of 2022, compared to the same period in 2021 due to the acquisition of Cortland Bancorp offset by a reduction in PPP interest and fees.
  • Net interest margin was 3.25% in the second quarter compared to $3.27% for the first quarter of 2022 and 3.52% in the second quarter of 2021.
  • The second quarter noninterest income decreased $31,000 to $9.5 million from the second quarter of 2021.

Published by The Business Journal, Youngstown, Ohio.