Farmers Banc Corp. Reports 2013 Net Income of $7.78M
CANFIELD, Ohio -- Farmers National Banc Corp. Wednesday reported fourth-quarter net income of $2.30 million, or 12 cents per common share, and net income for all of 2013 of $7.78 million, or 41 cents per share.
Fourth-quarter figures compare to $1.61 million in net income for the quarter ended Sept. 30, or nine cents a share, and $2.64 million for the quarter ended Dec. 31, 2012, or 14 cents a share.
Full-year 2013 figures compare to $9.93 million in 2012, 21.7% less, or 53 cents a share. Farmers National Banc Corp. is the holding company for Farmers National Bank and Farmers Trust Co.
Farmers pointed to its net loan portfolio growing 7.5% over the year to $623.17 million at Dec. 31 from $578.96 million at Dec. 31, 2012, and its much improved efficiency ratio.
The company attributed the improved efficiency ratio to “a cost reduction program” that included closing two branches and “the elimination of several full-time positions.” Farmers also said it increased the fees on some of its commercial and retail products.
In a prepared statement, the president and CEO, Kevin J. Helmick, said, “Excluding security gains of $586,000 in the fourth quarter of 2012 and compared to $8,000 in the fourth quarter of 2013, net income for the [fourth] quarter increased $40,000. Our efficiency ratio improved to 67.96% … the lowest [figure] in the past two years. The increase in our efficiency ratio is consistent with our strategy to increase fee income and decrease noninterest expenses. We are also pleased to report that net loans increased 7.5% during 2013. Most of this growth came from our commercial real estate, residential real estate and indirect loan portfolios.”
Key performance ratios for the quarters ended Dec. 31, Sept. 30 and Dec. 31, 2012; and full years 2013 and 2012:
- Net interest margin, 3.53%, 3.47%, 3.67%; 3.58%, 3.76%.
- Efficiency ratio, 67.96%, 81.64%, 72.48%; 74.82%, 69.94%.
- Return on average assets (annualized), 0.78%, 0.56%, 0.92%; 0.68%, 0.89%.
- Return on average equity (annualized), 7.23%, 5.60%, 8.65%; 6.66%, 8.42%.
Farmers noted its asset quality improved and cited the net charge-offs on its loans fell to $1.4 million in 2013 compared to $2.9 million the year before. Nonperforming loans (those 90 days past due) stood at $9.09 million at Dec. 31 compared to $9.12 million at Sept. 30 and $8.20 million at Dec. 31, 2012.
Annualized net charge-offs to average net loans outstanding were 0.22% in the fourth quarter, 0.38% in the third and 0.71% the last quarter of 2012. Net sums charged off were $326,000, $561,000 and $995,000 respectively.
Noninterest expenses (such as wages and benefits, rents, data processing and Federal Deposit Insurance Corp. premiums) were $9.22 million in the fourth quarter compared to $10.93 million the preceding quarter and $9.47 million the quarter ended Dec. 31, 2012. Full-year noninterest expense was $39.06 million, 9.2% higher than the $35.76 million incurred in 2012.
Farmers Bank remains well-capitalized by regulatory standards.
Assets at Dec. 31 stood at $1.137 billion, slightly less than the $1.140 billion reported for the year ended Dec. 31, 2012. Deposits were also slightly less than at year-end 2012, $915.22 million compared to $919.01 million.
SOURCE: Farmers National Banc Corp.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our twice-monthly print edition and to our free daily email headlines.