Farmers Reports $11M in 2Q Income

CANFIELD, Ohio – Farmers National Banc. Corp. reports second-quarter net income of $11 million, or 39 cents per share, marking 150 consecutive quarters of profitability.

That figure is up from $8.5 million, or 31 cents per share, for the year-ago quarter and the first quarter’s $8.6 million, or 30 cents per share

“For over 133 years, our success has been driven by supporting our local communities and doing what’s right for our customers. This win-win spirit is more important than ever as our communities face significant uncertainties brought on by the COVID-19 pandemic,” said President and CEO Kevin Helmick in a statement. 

Farmers is offering financial assistance to customers who have been affected by the coronavirus pandemic, including three-month loan payment deferrals. After the initial offer was made in March, the bank offered a second deferral to select customers within specific industries that have higher credit risks.

As of July 24, the bank had deferred payments on 17  commercial real estate loans totaling $27.7 million, 36 commercial loans totaling $5.85 million, 12 agricultural loans totaling $2.51 million, 15 residential real estate loans totaling $1.39 million and 36 consumer loans totaling $539,000. At the end of the first quarter, Farmers National Bank reported 338 total deferred payments totaling $97.49 million.

The bank also offered Paycheck Protection Program loans, with 1,675 businesses receiving $199.1 million as of June 30.

“Farmers is uniquely prepared to address the current economic environment as we benefit from diverse sources of income, proactive risk management, and a proven and motivated management team,” Helmick said. “As a result, Farmers ended the quarter with record quarterly noninterest income, regulatory capital well in excess of required minimums, a tangible common equity ratio at a solid 9.86% (non-GAAP), and a second quarter dividend payout ratio of 28.15%.”

Key performance ratios for the quarters ended June 30, March 31 and June 30, 2019, include:

• Return on average assets annualized, 1.56%, 1.32%, 1.51%.
• Return on average equity annualized, 14.02%, 11.53%, 12.49%.
• Net interest margin annualized, 3.74%, 3.75%, 3.79%.
• Efficiency ratio tax-equivalent basis, 50.75%, 59.72%, 55.9%.

Net interest income was $23.92 million, up from $22.3 million in the first quarter of the year, as well as from $20.49 million in the year-ago quarter.

Noninterest income was $9.14 million, up from both the previous quarter’s $7.87 million and the year-ago quarter’s $7.13 million.

Net loans totaled $2.132 billion in the second quarter of 2020, up from both the first quarter mark of $1.961 billion and the $1.766 billion reported in the second quarter last year.

Total assets were at $2.885 billion to end the second quarter, up from $2.668 billion in the previous quarter and $2.405 billion in the same period a year ago.

Deposits totaled $2.439 billion, up from $2.246 billion in the first quarter and $2 billion in the second quarter of 2019.

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