Farmers Reports Net Income Rises to $5.78M
CANFIELD, Ohio – Farmers National Banc Corp. Wednesday reported first-quarter net income of $5.78 million, or 21 cents a share.
This compares to fourth-quarter 2016 net income of $5.36 million, or 20 cents a share, and first-quarter 2016 net income of $4.80 million, or 18 cents a share.
Farmers is the holding company of Farmers National Bank, the Farmers Trust Co., and the Bowers Insurance Agency.
Excluding merger and acquisition expense, first-quarter net income was $5.83 million, still 21 cents a share, the company said.
In a prepared statement, the president and CEO of the holding company and the bank, Kevin J. Helmick, said, “… We have stayed focused on our strategic growth plan that has paved the way for the company to reach over $2 billion in assets at the end of the first quarter. … We are also pleased to report that our earnings have increased through the successful integration of our previous mergers and we continue to be encouraged by our organic loan growth, which has increased 11% during the past 12 months and improvements in our level of noninterest income.”
Among the highlights Farmers cited:
- Total loans were $1.46 billion at March 31 compared $1.32 billion a year earlier. Loans comprise 77.9% of Farmers average earning assets, up from 75.3% at March 31, 2016.
- Net loans were $1.45 billion compared to $1.31 billion a year earlier.
- Loan quality remains strong. Nonperforming loans (those 90 days past due) were $6.55 million, less than the $8.17 million reported for Dec. 31 and $9.71 million reported a year ago.
- Loans 30 to 89 days delinquent stood at $8.26 million at the end of the quarter compared to $12.75 million the previous quarter and $10.07 million the year-ago quarter.
- The loan loss allowance rose to 172.73% of questionable loans, up from 132.83% at Dec. 31 and 96.70% at March 31, 2016.
Key performance ratios for the quarters ended March 31 and Dec. 31 and March 31, 2016:
- Net interest margin (annualized), 4.01%, 3.95%, 4.07%.
- Efficiency ratio (tax equivalent basis), 58.79%, 60.37%, 62.65%.
- Return on average assets (annualized), 1.17%, 1.08%, 1.03%.
- Return on average equity (annualized), 10.87%, 9.74%, 9.41%.
Noninterest expense (includes salaries and employee benefits, rents, merger-related, data processing, marketing, Federal Deposit Insurance Corp. premiums) was $14.61 million, down from $15 million the fourth quarter but slightly higher than the $14.44 million reported the year-ago quarter.
Salaries and benefits rose to $8.29 million from $8.25 million the preceding quarter and $7.55 million the year-ago quarter but merger-related expense recognized was only $3,000 higher than the $241,000 booked for the quarter ended Dec. 31 and $101,000 less than the $345,000 entered for the year-ago quarter.
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