Farmers Reports Record 3Q Income of $9.2M
CANFIELD, Ohio — Farmers National Banc Corp. reports net income for the three months ended Sept. 30 of $9.2 million, a 13% increase from the same period last year.
Following 147 consecutive quarters of profitability, the company reports a 1.51% annualized return on average assets and 12.49% annualized return on average equity for the third quarter, and has seen 5.5% loan growth since Sept. 30, 2018.
“As a result of solid loan growth over the past twelve months, 15% increase in noninterest income, careful management of our noninterest expenses and continued strong asset quality, we are pleased to report a 13% increase in net income compared to the same quarter one year ago,” said President and CEO Kevin J. Helmick in a release. “We are also pleased to report a 25% increase in cash dividends paid to our shareholders, from $0.08 per share paid in the third quarter of 2018 to $0.10 paid for the same quarter in 2019.”
Net income for the nine months ending Sept. 30 was $26.1 million, up from $23.9 million during the same period in 2018.
On Aug. 30, Farmers entered into an agreement and plan of merger with Maple Leaf Financial, the holding company for Geauga Savings Bank. Pending Maple Leaf shareholder approval and customary regulatory approvals, the transaction is expected to close during the first quarter of 2020, and will increase Farmers’ market share in Cuyahoga and Geauga counties, according to the release.
Other financial highlights for the third quarter include:
- Total loans were $1.78 billion, compared to $1.69 billion at Sept. 30, 2018.
- Nonperforming assets to total assets are at 0.28%, while early stage delinquencies are at $9.1 million, or 0.51% of total loans.
- Net interest margin was 3.79%, a 7 basis-point decrease from the same quarter last year at 3.84%. Asset yields increased 16 basis points, while the cost of interest-bearing liabilities increased 30 basis points.
- Noninterest income increased 14.9% to $7.4 million for the quarter, compared to $6.5 million in the same quarter last year.
- Total noninterest expenses for the third quarter increased 1.5% to $16.4 million compared to $16.2 million in the same quarter in 2018.
- The efficiency ratio for the quarter decreased to 55.90% compared to 58.70% for the same quarter in 2018.
Copyright 2020 The Business Journal, Youngstown, Ohio.