Farmers Banc Corp. Reports Net Income of $2.28M
CANFIELD, Ohio -- Farmers National Banc Corp., holding company of Farmers National Bank and Farmers Trust Co., Wednesday reported third-quarter net income of $2.28 million, or 12 cents a share.
This compares to second-quarter net income of $2.35 million, or 13 cents a share, and third-quarter 2013 net income of $1.61 million, or nine cents a share.
The third-quarter 2013 results “included $1.3 million in severance expenses related to terminated employees,” Farmers said.
In its earnings release, the provider of financial services listed six highlights including loan growth, the “safe level” of its loan quality, the increase in the bank’s net interest margin and lower noninterest expense.
At Sept. 30, the loan portfolio of Farmers National Bank was $646.98 million compared to $637.77 million June 30 and $611.35 million Sep. 30, 2013.
Nonperforming loans (those past due 90 days or longer) were $7.22 million compared to $8.14 million at the end of the second quarter and $9.12 million at Sept. 30, 2013. Also improved were the ratios of nonperforming loans to total loans at Sept. 30, June 30, and Sept. 30, 2013: 1.12%, 1.28% and 1.49% respectively.
The ratios for nonperforming assets (includes nonperforming loans) for the same periods likewise showed improvement: 0.67%, 0.75% and 0.81% respectively.
Delinquencies (loans past due up to 89 days) also “continue to remain at low levels,” Farmers reported, “$4.9 million, or 0.76% of total loans at Sept. 30.”
Noninterest expense -- includes salaries and employee benefits, rents, data processing, Federal Deposit Insurance Corp. premiums -- was $9.78 million for the quarter, more than the $9.38 million reported the preceding quarter but less than the $10.93 million reported for the quarter ended Sept. 30, 2013. “The company has remained committed to managing the level of noninterest expenses,” Farmers said, noting the closing of two offices last year and “elimination of several full-time positions” is helping to reach that goal.
Key performance ratios for the quarters ended Sept. 30, June 30 and Sept. 30, 2013:
- Net interest margin (annualized), 3.58%, 3.54%, 3.47%.
- Efficiency ratio (tax equivalent basis), 70.17%, 69.68%, 81.64%.
- Return on average assets (annualized), 0.79%, 0.83%, 0.56%.
- Return on average equity (annualized), 7.37%, 7.85%, 5.60%.
In a prepared statement, the president and CEO of Farmers, Kevin J. Helmick, noted “Our improvement in net income for the nine months ended Sept. 30” -- $6.82 million to $5.49 million for the same period in 2013 -- “is a result of our focus on increasing noninterest income and control of our noninterest expenses.”
Noninterest income, primarily from Farmers Trust and Farmers National Insurance Co., was $3.88 million for the quarter ended Sept. 30 compared to $3.80 million the preceding quarter and 4.17 million the quarter ended Sept. 30, 2013.
Helmick said, “We continue to experience increases in noninterest income and growth in our loan portfolio, which has resulted in higher total revenue. … We continue our discipline of closely monitoring levels of noninterest expense while growing noninterest revenues.”
SOURCE: Farmers Banc Corp.
Published by The Business Journal, Youngstown, Ohio.
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