Farmers Reports 2Q Net Income of $5.7M

CANFIELD, Ohio – Farmers National Banc Corp. Wednesday reported second-quarter net income of $5.7 million, or 21 cents a share, compared to $5.0 million, or 19 cents a share from the year-ago quarter, and remained the same at $5.7 million, or 21 cents a share from the first-quarter.

Farmers is the holding company of Farmers National Bank, Farmers Trust Co. and the Bowers Insurance Group.

On March 13, farmers entered into an agreement and plan of a merger with Monitor Bancorp, Inc., the holding company for The Monitor Bank, located in Holmes County in Ohio.

In a prepared statement, the president and CEO of the holding company and the bank, Kevin J. Helmick, said, “We are looking forward to close our fourth acquisition in the past two years, which further enhances farmers’ brand and delivers long-term value for our shareholders.

This transaction is expected to close during the third quarter of 2017.

“We remain focused on our strategic growth plan, which has paved the way for the company to reach over $2 billion in assets in 2017. We continue to be encouraged by our organic loan growth, which has increased 11% during the past twelve months, and improvements in our level of noninterest income,” Helmick said.

Key performance ratios for the quarters ended June 30, March 31 and June 30, 2016:

• Return on average assets annualized, 1.11%, 1.17%, 1.06%.
• Return on average equity annualized, 10.25%, 10.87%, 9.69%.
• Net interest margin annualized, 4.05%, 4.01%, 4.06%.
• Efficiency ratio tax equivalent basis, 60.79%, 58.79%, 62.60%.

Net interest income for the quarter was $18.3 million, up from $17.5 million the first quarter and $16.8 million the year-ago quarter.

Net loans were $1.490 billion at June 30 compared to $1.450 billion at March 31 and $1.348 billion at June 30, 2016.

Nonperforming assets to total assets remained at low levels at 0.32%.

Noninterest expense (includes salaries and benefits, data processing, occupancy and rents, marketing and Federal Deposit Insurance Corp. premiums) was $15.8 million, up from $14.8 the year-ago quarter.

At June 30, total deposits stood at $1.541 billion.

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