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Farmers Reports Q2 Net Income of $2.35 Million
CANFIELD, Ohio -- Farmers National Banc Corp., parent of Farmers National Bank and Farmers Trust Co., reports $2.35 million in net income, or 13 cents per diluted share, for the quarter ended June 30.
This compares to first-quarter net income of $2.19 million, or 12 cents a share, and second-quarter 2013 net income of $1.87 million, or 10 cents per share.
In its earnings report, released Wednesday, Farmers points to loan growth of 6.9% since June 30, 2013. Net loans stood at $630.42 million at June 30, $618.80 million at March 31, and $589.25 million at June 30, 2013. The company credits its “focus on loan growth utilizing a talented lending and credit team while adhering to a sound underwriting discipline.” Most of the increase was in commercial real estate, commercial and industrial lending and residential mortgages, Farmers said.
Noninterest income, much of it from Farmers Trust Co. and Farmers’ insurance subsidiary, was $3.80 million, up from $3.43 million the first quarter and up $3.23 million compared to the second quarter a year ago.
In a prepared statement, the president and CEO of Farmers National Banc Corp. and Farmers National Bank, Kevin J. Helmick, said, “Our improvement in net income … is a result of our continued focus on increasing fee [noninterest] income and control of noninterest expenses.”
Noninterest expenses include wages and benefits, rent, computers, marketing and Federal Deposit Insurance Corp. premiums.
Helmick continued, “The continued focus on increasing fee-based revenues and reducing expenses has also contributed to an improvement in our efficiency ratio [how much is spent to generate a dollar of revenue] to 69.8% from 74.9% the first six months compared to the same period in 2013.”
Noninterest income, he pointed out, was 17.7% higher than for the second quarter of 2013.
Key performance ratios for the quarters ended June 30, March 31, and June 30, 2013:
- Net interest margin, 3.54%, 3.56%, 3.63%.
- Efficiency ratio, 69.68%, 69.87%, 77.16%.
- Return on average assets, 0.83%, 0.78%, 0.66%.
- Return on average equity, 7.85%, 7.65%, 6.21%.
Asset quality remains strong, the company said, as reflected by nonperforming loans (those past due 90 days and longer), $8.14 million at June 30, $8.49 million at March 31, and $8.08 million at June 30, 2013.
Net charge-offs, $331,000 recognized during the second quarter, were less than the $511,000 recognized the first quarter but above the $89,000 recognized the second quarter of 2013.
The ratio of nonperforming loans to total loans was 1.28% compared to 1.36% the first quarter and 1.35% the second quarter last year.
Noninterest expense was $9.39 million for the quarter, slightly above the $9.14 million the previous quarter and $9.82 million the same quarter a year ago.
Total assets have held steady over the last 12 months, $1.133 billion at June 30, $1.141 billion at March 31, and $1.123 billion at June 30, 2013.
So have total deposits. They were $907.44 million, down from $923.03 million the preceding quarter but above the $901.89 million recorded for June 30, 2013.
Source: Farmers National Banc Corp.
Published by The Business Journal, Youngstown, Ohio.
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