Farmers National Reports Net Income of $2.5 Million
CANFIELD, Ohio – Farmers National Banc Corp. Wednesday reported net income of $2.49 million for the quarter ended Sept. 30, or 13 cents per diluted share.
This compares to second-quarter net income of $2.27 million, or 12 cents a share, and third-quarter 2011 net income of $2.37 million, or 13 cents a share.
For the first nine months, net income was $7.30 million, or 39 cents a share, an increase of 14.7% compared to the same period a year ago when net income was $6.18 million or 34 cents per share.
Farmers National is the holding company of Farmers National Bank of Canfield and Farmers Trust Co.
In a prepared statement, the president and CEO, John S. Gulas, said, “We are pleased with our 5% improvement in net income compared to the same quarter in 2011. It is important to note that noninterest income increased 22% during the same three-month period, which is consistent with our strategy to diversify revenue. We are encouraged that asset quality continues to improve by the reduction in the provision for loan losses from $700,000 for the [third quarter of 2011] to $325,000. We have also seen a decline in our 30- to 89-day delinquencies, from $3.4 million at Sept. 30, 2011, to $3.2 million. 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.”
Performance measures for the quarters ended Sept. 30, June 30 and Sept. 30, 2011:
- Net interest margin 3.67%, 3.80%, 3.97%.
- Efficiency ratio, 70.07%, 68.54%, 64.64%.
- Return on average assets, 0.88%, 0.82%, 0.90%.
- Return on average equity, 8.22%, 7.81%, 8.56%.
Net loans rose 1%, or $7.27 million, from the third quarter a year ago, Gulas reported, to $564.28 million from $557.01 million. They stood at $563.41 million at June 30.
Deposits were $900.13 million at Sept. 30 compared to $886.60 million at June 30 and $806.20 million at the end of the third quarter of 2011.
Noninterest expense (which includes salaries, benefits, rents, Federal Deposit Insurance Corp. premiums) was $8.83 million for the quarter, $50,000 less than the second quarter but $65,000 more than the third quarter of 2011.
Nonperforming loans (those 90 days past due) fell to $8.66 million from $9.90 million the second quarter and from $10.88 million the third quarter of 2011.
Other real estate owned (repossessed residences) fell to $171,000 from $412,000 the second quarter and $569,000 the same quarter a year ago.
Net charge-offs were $748,000 in the third quarter compared to $798,000 in the second and $591,000 the third quarter of 2011.
The ratio of nonperforming assets to total assets fell to 0.78% for the quarter compared to 0.92% the preceding quarter and 1.05% the third quarter in 2011.
Total assets continue to increase. At Sept. 30 they stood at $1.133 billion, up from $1.117 billion at June 30 and $1.086 billion Sept. 30, 2011.
Publlished by The Business Journal, Youngstown, Ohio.