Farmers Reports Q2 Net Income Increases to $8.07M

CANFIELD, Ohio – Farmers National Banc Corp. Wednesday reported a second-quarter net income of $8.07 million, or 29 cents a share.

This is 41% higher than the year-ago quarter of $5.71 million, or 21 cents a share, and an increase from $7.72 million, or 28 cents a share from the first-quarter.

This quarter brings Farmers to 142 consecutive quarters of profitability.

In a prepared statement, the president and CEO of the holding company and the bank, Kevin J. Helmick, said, “We are pleased to report record earnings which are the result of the successful integration of previous mergers, continued strong loan growth, higher levels of noninterest income and a lower effective income tax rate.”

Key performance ratios for the quarters ended June 30, March 31 and June 30, 2017:

• Return on average assets annualized, 1.47%, 1.45%, 1.11%.
• Return on average equity annualized, 13.28%, 13.03%, 10.25%.
• Net interest margin annualized, 3.93%, 3.92%, 4.05%.
• Efficiency ratio tax equivalent basis, 57.31%, 57.98%, 60.79%.

Net interest income for the quarter was $19.56 million, up from $18.94 million the first quarter and $18.37 million the year-ago quarter.

Noninterest income (such as fees from mortgage services, trust services and insurance commissions) was $6.30 million, slightly up from $6.01 million the first quarter of 2018 and up from $6.05 million the year-ago quarter.

Net loans were $1.626 billion at June 30 compared to $1.586 billion at March 31 and $1.493 billion at June 30, 2017.

Total assets were at $2.237 billion the second quarter, compared to $2.167 billion the first quarter and $2.085 billion the year-ago quarter.

Nonperforming assets to total assets remained at low levels at 0.38%.

Noninterest expense (includes salaries and benefits, data processing, occupancy and rents, marketing and Federal Deposit Insurance Corp. premiums) was $15.54 million, up from $15.09 million the first quarter and $15.76 million

Total loans grew 8.9% from the year-ago quarter. Loans for the second quarter were at $1.639 billion, compared to the first quarter of $1.599 billion and the year-ago quarter of $1.505 billion.

Total deposits rose to $1.650 billion, compared to $1.637 billion at March 31 and $1.541 billion at June 30, 2017.

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