Farmers Banc Corp. Reports 3Q Net Income of $6M
CANFIELD, Ohio – Farmers National Banc Corp. Wednesday reported third-quarter net income of $5.98 million, or 22 cents per diluted share.
This compares to second-quarter net income of $5.71 million, or 21 cents a share, and third-quarter 2016 income of $5.38 million, or 20 cents a share.
Farmers is the holding company of Farmers National Bank, Farmers Trust Co. and Bowers Insurance Agency Inc.
In its earnings release, Farmers cited these highlights: Total loan growth rose to $1.539 billion, 11.2% higher than the year-ago quarter, 10% organic loan growth from the year-ago quarter, noninterest income fell to $6.06 million, a decline of 6.6% from the year-ago quarter, and the ratio of nonperforming assets to total assets remains a low 0.33%.
In a prepared statement, the president and CEO of the corporation and the bank, Kevin J. Helmick, said, “In addition to another strong quarter of financial performance, we are pleased to close our fourth acquisition in the past two years. This acquisition further enhances Farmers’ brand and delivers long-term value for our shareholders. We are excited about our success in expanded markets and remain focused on our strategic growth plan, which has paved the way for the company to exceed $2 billion in assets in 2017.”
A merger of Monitor Bancorp, Inc. holding company of The Monitor Bank in Holmes County, was completed Aug. 15.
Key performance ratios for the quarters ended Sept. 30, June 30, and Sept. 30, 2016:
- Return on average assets (annualized), 1.12%, 1.11%, 1.10%.
- Return on average equity (annualized), 10.15%, 10.25%, 9.97%.
- Net interest margin (annualized), 3.96%, 4.05%, 3.97%.
- Efficiency ratio, 59.93%, 60.79%, 60.85%.
Loans grew to $1.551 billion at Sept. 30, up from $1.366 billion at Sept. 30, 2016, and total assets grew to $2.162 billion from $1.961 billion year over year.
Net interest income was $18.68 million, up from $18.37 million the preceding quarter and $17.19 million the year-ago quarter.
Noninterest income (such as fees from mortgage services, trust services and insurance commissions) was $6.06 million, same as the second quarter, but down from $6.49 million the quarter ended Sept. 30, 2016.
Noninterest expense (includes salaries and employee benefits, rents, data processing, marketing, taxes, Federal Deposit Insurance Corp. premiums) was $15.79 million, a slight increase from $15.76 million the second quarter and $15.23 million the year-ago quarter. Employee compensation led the category, $8.92 million, up from $8.85 million the second quarter and $8.37 million the year-ago quarter.
Deposits rose to $1.609 billion at Sept 30, up from $1.541 billion the second quarter and $1.492 billion the year-ago quarter.
Copyright 2023 The Business Journal, Youngstown, Ohio.