Farmers Reports 2Q Income of $15.6M
CANFIELD, Ohio – Farmers National Banc Corp. reports net income of $15.6 million, or 55 cents per diluted share, for the second quarter of 2021.
That’s up from the $11 million, or 39 cents per share, reported in the comparable quarter of 2020 and the $14.6 million, or 51 cents per share, in the first quarter of this year.
“Our record year-to-date financial results demonstrates Farmers’ strong position to grow earnings, despite the current low interest rate and loan environment. This success is a direct result of our win-win culture and providing business and retail customers with local, personal, and diversified financial services,” said President Kevin J. Helmick in a statement.“As a high-performing financial institution, we believe we have significant opportunities to create value for shareholders. The recently announced acquisition of Cortland Bank immediately enhances economies of scale and our ability to expand Farmers’ diversified product offerings to Cortland Bank’s customer base.”
On June 23, Farmers announced it had entered into a merger agreement with Cortland Bank that will see the Canfield-based bank acquired Cortland’s asset. The deal is expected to close in the fourth quarter. The combined entity will have about $4.1 billion in assets.
During the first phase of the Paycheck Protection Program, Farmers provided $199.8 million in loans to 1,714 borrowers. As of June 30, 90.8% of those loans – $181.6 million – have been forgiven. In the second round of PPP funding that ran from early January through the end of May, Farmers processed $83.9 million in loans.
Among the second-quarter highlights Farmers provided in its quarterly earnings report are:
- Total loans of $1.96 billion, compared to $2.15 billion as of June 30, 2020. The decrease in loans has occurred primarily due to PPP loans, with $92.1 million, net of deferred fees, in outstanding balances at June 30, compared to $193.0 million at June 30, 2020.
- Nonperforming assets to total assets remains at a low level, currently at 0.43% which is the same ratio reported one year ago. Early stage delinquencies, defined as 30-89 days past due, were $7.6 million, or 0.39% of total loans, at June 30 compared to $10.3 million, or 0.43% of total loans, for the quarter ended June 30, 2020.
- Net interest margin in the second quarter was 3.54%, down 20 basis points from the same quarter last year and down four basis points from the first quarter.
- Noninterest income rose 8.1% to $9.9 million as the wealth management division saw trust fee income rise $506,000 and the insurance division saw commissions rise $267,000.
Key performance ratios for the quarters ended June 30, March 31 and June 30, 2020 are:
- Return on average assets annualized: 1.9%, 1.87%, 1.46%.
- Return on average equity annualized: 17.17%, 16.81%, 14.02%.
- Efficiency ratio tax-equivalent basis: 46.14%, 48.24%, 50.75%.
Total assets for Farmers National Banc Corp. – which includes Farmers National Bank, Farmers Trust Co. and Farmers National Insurance – was $3.26 billion, down from $3.32 billion in the previous quarter and up from $2.88 billion in the year-ago quarter.
Copyright 2023 The Business Journal, Youngstown, Ohio.