Farmers Reports Record 2018 Net Income of $32.56M

CANFIELD, Ohio – Farmers National Banc Corp., holding company of Farmers Bank and Farmers Trust Co., Wednesday reported fourth-quarter net income of $8.68 million, or 31 cents a share, and full-year 2018 net income of $32.56 million, or $1.16 a share, a 43.4% increase from the full-year 2017 net income of $22.71 million, or 82 cents a share.

The fourth-quarter net income compares to third-quarter of $8.08 million, or 29 cents a share, and fourth-quarter 2017 income of $5.23 million, or 19 cents a share.

In its earnings release, Farmers cited these highlights: 144 consecutive quarters of profitability, 10% loan growth since Dec. 31, 2017 and nonperforming assets to total assets remain at low levels, 0.33% at Dec. 31.

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 net income for the quarter and for all of 2018. This is a result of the successful execution of our strategic plan, including the integration of several acquisitions over the previous three years. Our performance was a result of many positive factors, including continued strong loan growth and strong growth in non-interest income, low levels of credit costs and well controlled non-interest expenses.”

Key performance ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2017:

• Return on average assets annualized, 1.50%, 1.42%, 0.96%.
• Return on average equity annualized, 13.65%, 12.80%, 8.60%.
• Net interest margin annualized, 3.80%, 3.86%, 3.98%.
• Efficiency ratio tax equivalent basis, 57.73%, 58.70%, 58.40%.

Loans grew to $1.735 billion at Dec. 31, up from $1.577 billion at Dec. 31, 2017, and total assets grew to $2.328 billion from $1.159 billion year over year.

Net interest income was $20.07 million, up from $19.91 million the preceding quarter and $19.06 million the year-ago quarter.

Noninterest income (such as fees from mortgage services, trust services and insurance commissions) was $6.70 million, up from $6.47 million the third quarter of 2018, and from $6.05 million the quarter ended Dec. 31, 2017.

Noninterest expense (includes salaries and employee benefits, rents, data processing, marketing, taxes, Federal Deposit Insurance Corp. premiums) was $15.98 million, compared to $16.18 million the third quarter and $15.01 million the year-ago quarter. Employee compensation led the category, $9.44 million, up from $8.96 million the third quarter and up from $8.69 million the year-ago quarter.

Deposits rose slightly to $1.799 billion at Dec. 31, from $1.758 billion the third quarter, and up from $1.604 billion the year-ago quarter.

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