Farmers National Reports Net Income of $13.3M in Q3
CANFIELD – Farmers National Banc Corp. on Wednesday reported a net income of $13.3 million for the third quarter of 2023, or 36 cents per diluted share, compared with $15.4 million, or 46 cents per diluted share, in the third quarter a year ago.
Farmers has seen more than 40 years of consecutive profitable quarters.
Net income for the third quarter included pretax items of $268,000 for acquisition-related costs, $785,000 for the settlement of a lawsuit and combined net losses of $764,000 on the sale of securities and the sale of other assets. Excluding these items (non-GAAP), net income for the third quarter would have been $14.8 million, or 40 cents per diluted share, a news release states.
“Despite the rapid increase in interest rates over the past year and a half, Farmers produced solid third quarter financial results reflecting the benefits of our diverse business model as well as our focus on maintaining strong asset quality and controlling operating expenses,” said Kevin J. Helmick, Farmers president and CEO. “These core banking principals create a solid foundation for Farmers to navigate an increasingly uncertain near-term economic environment, while supporting our long-term growth strategies.”
The company’s total assets were $4.97 billion at the end of September, compared with $5.07 billion at the end of June and $4.08 billion at the end of 2022. The increase from December was primarily due to the acquisition of Emclaire Financial Corp., which added $1.05 billion in assets in the first quarter of 2023.
In the third quarter, Farmers recorded net interest income of $33.8 million. Non-interest income was $9.8 million.
Securities available for sale were $1.21 billion at the end of September, and total customer deposits sat at $4.26 billion, compared with $4.25 billion at the end of the second quarter and $3.42 billion at the end of 2022.
Other highlights reported by Farmers include:
- Additional FHLB borrowing capacity of $892.6 million as of Sept. 30.
- Available for sale securities not pledged totaled $353.8 million as of Sept. 30.
- Strong asset quality with nonperforming asset to total assets of 0.58% as of Sept. 30.
- Return on average assets of 1.06% for the third quarter.
- ROAE and ROATE (non-GAAP) of 14.5% and 30.3%, respectively, for the third quarter.
Published by The Business Journal, Youngstown, Ohio.