Farmers National Reports Net Income of $15M in Q2
CANFIELD – Farmers National Banc Corp. reported a net income of $15 million for the second quarter of 2023, or 40 cents per diluted share, compared with $16 million in the second quarter a year ago.
The profitable quarter marks more than 40 years of consecutive profitable quarters for Farmers.
The net income for the second quarter also includes $442,000 in acquisition-related costs from the acquisition of Emclaire Financial Corp. and combined net gains of $6,000 on the sale of securities and other assets. Excluding these items, the net income would have been $15.3 million, or 41 cents per diluted share.
The company’s total assets were $5.07 billion at the end of June 2023, compared with $5.11 billion at the end of March 2023 and $4.08 billion at the end of 2022.
“As we navigate an extremely fluid banking landscape, we will continue to focus on prudent expense management, growing revenue and maintaining a strong balance sheet, while supporting our communities and investing in our growth strategies,” said Kevin J. Helmick, president and CEO. “We believe this approach will drive long-term shareholder value as we emerge from this challenging period a stronger and more profitable company.”
In the second quarter, Farmers recorded net interest income of $34.6 million, up from a year ago. Non-interest income was $9.4 million, compared with $9.5 million with non-interest expenses at $26.4 million.
Securities available for sale were $1.32 billion at the end of June, and total customer deposits sat at $4.25 billion, compared with $4.31 billion at the end of the first quarter and $3.42 billion at the end of 2022.
Total stockholders equity was $367 million at the end of the quarter, compared with $374.6 million in the first quarter and $293.3 million at the end of 2022.
Farmers is attributing many of the increases between the end of 2022 and the end of the first quarter of 2023 to the Emclaire acquisition.
Farmers also reports:
- Additional FHLB borrowing capacity of $707.8 million as of June 30.
- Uninsured deposits (excluding collateralized deposits) are approximately 15% of customer deposit base.
- Available for sale securities not pledged totaled $290 million as of June 30.
- Efficiency ratio of 56.3%, or 55.3% excluding certain items, non-GAAP, for the second quarter.
- Return on average assets of 1.18% for the second quarter.
- ROAE and ROATE (non-GAAP) of 16.1% and 33.6%, respectively, for the second quarter.
Published by The Business Journal, Youngstown, Ohio.