Farmers Posts Record Annual Income of $35.8M
CANFIELD, Ohio – Farmers National Banc Corp. reports net income of $35.8 million for 2019, a record figure. That income is equivalent to $1.28 per diluted share. That’s up from $32.56 million, or $1.16 per share, in 2018
For the fourth quarter, the company reported net income of $9.7 million – also a record – or 35 cents per diluted share, up from $8.7 million, or 31 cents per share, in the final quarter of 2018.
“As a result of solid loan and deposit growth over the past 12 months, 14% increase in noninterest income, careful management of our noninterest expenses and continued strong asset quality, we are pleased to report an 11% increase in net income compared to the same quarter one year ago,” said President and CEO Kevin J. Helmick in a statement. “We are also pleased to report a 25% increase in cash dividends paid to our shareholders, from eight cents per share paid in the fourth quarter of 2018 to 10 cents paid for the same quarter in 2019.”
In its earnings release, Farmers National Banc Corp., the holding company of Farmers National Bank and Farmers Trust Co., highlighted its 148 consecutive quarters of profitability, 14% growth in noninterest income and nonperforming asset levels at 0.26%.
On Jan. 7, Farmers completed its merger with Maple Leaf Financial, the holding company of Geauga Savings Bank. As of the end of the third quarter of 2019, Maple Leaf had assets of $275.6 million, including gross loans of $183.5 million and deposits of $183.4 million.
Key performance ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2018:
- Return on average assets annualized: 1.58%, 1.51%, 1.5%.
- Return on average equity annualized: 12.78%, 12.49%, 13.65%.
- Net interest margin annualized: 3.84%, 3.79%, 3.8%.
- Efficiency ratio tax equivalent basis: 54.51%, 55.9%, 57.73%.
Loans totaled $1.81 billion at the end of the year, up from $1.74 billion at the end of 2019.
Noninterest income rose to $7.6 million in the fourth quarter, a 14% rise from $6.7 million in the same period of 2018.
Noninterest expenses, which includes includes salaries and employee benefits, rents, data processing, marketing, taxes, Federal Deposit Insurance Corp. premiums, rose to $16.4 million, up $400,000 from a year before. The increase was “primarily as a result of increases in merger related costs of $284 thousand and other operating expenses of $236 thousand, offset by a $316 thousand decrease in salaries and employee benefits and a $155 thousand decrease in FDIC insurance expense,” Farmers said in its earnings report.
Deposits totaled $2.008 billion, up from $1.799 billion as of Dec. 31, 2018.
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