Farmers Reports Net Income of $11.2M in Q1

CANFIELD, Ohio – Farmers National Banc Corp. on Wednesday announced a net income of $11.2 million, or $0.30 per diluted share, for the first quarter of 2024.

That was up from the $7.1 million, or $0.19 per diluted share, in the first quarter of 2023.

Farmers’ 2024 first-quarter performance was affected by a pretax item of $2.1 million for the loss on the sale of investment securities. Excluding that item, net income for the first quarter was $12.9 million, or $.34 per diluted share.

“I am encouraged by the solid start to 2024 as we focus on leveraging the investments we made over the past year, pursuing actions to strategically improve our balance sheet, and maintaining the company’s longstanding commitment to strong asset quality,” said Kevin J. Helmick, president and CEO of Farmers. “While we expect the economic and interest rate environment to remain fluid in 2024, we believe we are well positioned to help our local communities build a better future by continuing to provide our customers with leading financial services.”

Total assets as of March 31, 2024, were $5.08 billion, which was unchanged from the end of December 2023. Loans decreased to $3.18 billion at the end of the quarter, compared with $3.2 billion at the end of 2023. Farmers is projecting a 1% to 2% loan growth over the course of the year, reflecting a more challenging economic and interest rate environment.

Additionally, Farmers had $1.27 billion in securities available as of the end of March, down from $1.3 billion at the end of 2023. Gross unrealized losses on the portfolio totaled $234.2 million at the end of March, compared with the gross unrealized losses of $217.1 million at the end of December.

The company sold approximately $44.3 million in securities as part of a security restructure during the first quarter and reinvested the proceeds into securities, with yields 200 basis points higher than those sold.

Total deposits increased to $4.2 billion, an increase of $4.18 billion at the end of 2023. Noninterest bearing deposits declined $49.2 million, while interest bearing deposits increased $69.9 million.

The company’s nonperforming loans dropped to $12 million at the end of the first quarter from $15.1 million at the end of the year.

Other highlights include:

• Deposit growth of $20.7 million, or 2% annualized, for the first quarter of 2024.
• Net interest income of $31.7 million in the first quarter, down from $36.6 million in the first quarter of 2023.
• Noninterest income of $8.4 million, compared with $10.4 million in the first quarter of 2023.
• Noninterest expense of $27 million in the first quarter, compared with $30.7 million for the same period in 2023.

Farmers has enjoyed 165 consecutive quarters of profitability. The complete report can be found HERE.

Published by The Business Journal, Youngstown, Ohio.