Farmers Banc Corp. Reports 4Q Net Income of $2.64M
CANFIELD, Ohio – Farmers National Banc Corp., holding company of Farmers National Bank and Farmers Trust Co., Thursday reported fourth-quarter net income of $2.64 million, or 14 cents per diluted share, and full-year 2012 net income of $9.93 million, or 53 cents.
These figures compare to third-quarter net income of $2.49 million or 13 cents per share, and fourth-quarter 2011 net income of $3.04 million, or 16 cents a share, and full-year 2011 net income of $9.22 million, or 50 cents per share.
The fourth quarter marked 30 consecutive years and 120 consecutive quarters of positive earnings, the company noted.
Said John S. Gulas, president and CEO of the bank and holding company in a prepared statement, “We are pleased with our 8% improvement in net income for 2012 compared to 2011. It is important to note that noninterest income excluding security gains increased 7% in 2012 compared to 2011, which is consistent with our strategy to diversify revenue. We are encouraged that asset quality continues to improve, evidenced by the reduction in provision for loan losses to $725 million for the 12 months ended Dec. 31 from $3.7 million for the 12 months ended Dec. 31, 2011. We have also seen a decline in our nonperforming loans to $8.2 million at Dec. 31 from $11.0 million at $11.0 million at Dec. 31, 2011. Even with the reduction in our provision for loan losses, because of improved credit quality, we continue to maintain strong reserves against probable incurred losses.”
Net loans rose 3%, or $17 million, to $578.96 million at Dec. 31, from the same date in 2011 when the figure was $561.99 million. At Sept. 30, net loans were $564.29 million. “Most of the loan growth in the past 12 months occurred in the commercial and industrial loan portfolio,” Farmers reported.
Deposits increased $78.9 million, or 9.4%, to $919.01 million at Dec. 31 from $840.13 million the same date in 2011. Deposits were $900.14 million at Sept. 30. Landowners receiving checks from energy companies for leasing their oil and gas rights in the Utica shale and depositing the proceeds at Farmers Bank contributed to the rise, Farmers said. It put proceeds from leases and royalties at $58 million over 2012.
Net interest income for the fourth quarter was $9.26 million compared to $9.10 million in the third quarter and $9.12 million the last quarter of 2011. Full year net income was $36.90 million, up 0.8% over 2011’s $36.60 million.
Noninterest income (such as administrative fees and penalties) was $3.67 million for the fourth quarter, $3.37 million in the third and $4.53 million in the last quarter of 2012. Full-year noninterest income was $12.58 million, 0.3% ahead of $33.73 million in 2011.
Noninterest expense (such as salaries and benefits, rents, administration of repossessed real estate and Federal Deposit Insurance Corp. premiums) was $9.47 million in the fourth quarter, $8.90 million in the third and $9.65 million the last quarter of 2011. Full-year noninterest expense was $35.76 million, 6% higher than $33.73 million in 2011.
Net charge-offs for the fourth quarter were $995,000 ($1.377 million in charged-off loans less $382,000 in recoveries) compared to $748,000 the third quarter and $1.17 million the last quarter of 2011. Nonperforming loans at Dec. 31 were $8.2 million, at Sept. 30 $8.67 million, and at Dec. 31, 2011, $10.95 million.
Repossessed real estate (other real estate owned) was $334,000 at Dec. 31, $171 at Sept. 30 and $585,000 at Dec. 31, 2011.
Nonperforming assets to total assets showed improvement, 0.75% at Dec. 31 compared to 0.78% Sept. 30 and 1.08% Dec. 31, 2011.
Key performance ratios for the quarters ended Dec. 31, Sept. 30, and Dec. 31, 2011:
- Net interest margin, 3.67%, 3.67%, 3.80%.
- Efficiency ratio, 72.48%, 70.12%, 76.90%.
- Return on average assets (annualized), 0.92%, 0.88%, 1.13%.
- Return on average equity (annualized), 8.65%, 8.22%, 11.37%.
Farmers National Banc Corp. remains well capitalized by regulatory standards. Its Tier 1 capital to risk-weighted assets is 16.25% and Tier 1 capital to average assets is 9.54%.
The holding company saw its total assets rise to $1.140 billion at Dec. 31, up from $1.069 billion in a year. Shareholders’ equity stood at $120.79 million at Dec. 31, up from $114.45 million a year earlier.
Shares of Farmers closed at $6.58 Tuesday on the Nasdaq Exchange, up 5 cents from Wednesday, on a volume of 8,367, about 40% of its daily average.
Published by The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our free daily email headlines and to our twice-monthly print edition.