Farmers Reports Q1 Income of $14.6M
CANFIELD, Ohio – Farmers National Banc Corp. reports first-quarter net income of $14.6 million, or 51 cents per diluted share, a jump from the $8.6 million, or 40 cents per share, posted in the same quarter of 2020.
“Our success is a direct result of our commitment to do what’s right for our customers and I am thankful for the hard work and dedication of our colleagues who continually embody Farmers’ win-win spirit,” said President and CEO Kevin Helmick in a statement. “While the COVID-19 pandemic continues to impact many of our communities, our strong start to 2021 is encouraging and we believe we are well positioned for 2021 to be another good year for Farmers.”
During the first quarter, Farmers National Bank processed $75.1 million in new Paycheck Protection Program loans. To date, the bank has gotten forgiveness payments from the Small Business Administration for $137.2 million of PPP loans, or 68.7% of Farmers’ first-round PPP lending. The Canfield-based bank is also continuing its loan deferral offering, with five loans totaling $16.6 million outstanding. All deferred loans are in the commercial real estate sector.
Among the first-quarter highlights offered by Farmers in its earnings statement are:
- Total loans of $2.04 billion, up from $1.98 billion at the end of the first quarter of 2020. The increase was primarily in PPP loans, with $136.8 million, net of deferred fees, in outstanding balances. Loans comprise 69.5% of the bank’s average earning assets, down from 78.6% in the same period of 2020.
- Nonbrokered deposits increased to $2.8 billion, up 32% from from the first quarter of 2020. Farmers’ loan-to-deposit ratio is 71.9%, down substantially from 88% a year ago.
- Nonperforming assets are 0.35%, down from 0.45% in the first quarter last year.
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Key performance ratios for the quarters ended March 31, Dec. 31 and March 31, 2020, are:
- Return on average assets annualized: 1.87%, 1.49%, 1.32%.
- Return on average equity annualized: 16.81%, 13.1%, 11.53%.
- Net interest margin annualized: 3.58%, 3.73%, 3.75%.
- Efficiency ratio tax-equivalent basis: 48.24%, 50.25%, 59.72%.
Net interest income was $25.3 million, down slightly from the $25.8 million reported at the end of the fourth quarter and up from $22.3 million in the year-ago quarter.
Noninterest income was $10.6 million, down from $10.7 million in the previous quarter and up from $7.9 million in the first quarter of 2020.
Total assets for Farmers National Banc Corp. – which includes Farmers National Bank, Farmers Trust Co. and Farmers National Insurance – at the end of the first quarter were $3.32 billion, up from $3.07 billion in the previous quarter and $2.67 billion in the first quarter of 2020.
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