Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Farmers Reports Net Income of $2.52M for Quarter
CANFIELD, Ohio – Farmers National Banc Corp., parent of Farmers National Bank and Farmers Trust Co., Wednesday reported first-quarter net income of $2.52 million, or 13 cents per share.
This compares to net income of $3.04 million the preceding quarter, or 16 cents per share, and $1.69 million, or a dime a share, the first quarter of 2011.
The results reflect the 117th consecutive quarter of positive earnings, Farmers noted.
Over the course of the last four quarters, deposits grew 16%, Farmers reported, reaching $886.60 million March 31, up from $765.28 million March 31, 2011.
Key performance measures for the quarters ended March 31, Dec. 31 and March 31, 2011:
- Return on average assets (annualized), 0.94%, 1.13%, 0.69%.
- Return on average equity (annualized), 8.82%, 11.37%, 7.12%.
- Net interest margin (annualized), 3.90%, 3.80%, 4.22%.
- Efficiency ratio (tax equivalent basis), 68.42%, 76.90%, 62.57%.
- Dividends to net income, 44.68%, 18.49%, 33.08%.
Capital ratios for the same periods:
- Tier 1 capital to risk-weighted assets, 16.24%, 16.16%, 15.46%.
- Tier 1 capital to average assets, 9.43%, 9.50%, 9.43%.
“Our net income increased to $2.5 million for the three months ended March 31, which represents a 49% increase over the $1.7 million for the same period in 2011. Noninterest income increased 4% during the same three-month period. This increase reflects the continued benefit from our strategy to diversify income streams,” said John S. Gulas, president and CEO, in a prepared statement. “The provision for loan losses decreased from $1.9 million for the three-month period ended March 31, 2011, to $0 for the three months ended March 31. This decrease is a result of improved credit quality as net charge-offs have declined from $1.0 million for the three months ended March 31, 2011, to $374,000 for the same period in 2012. We have seen a decline in our 30- to 89-day delinquencies from $3.4 million at March 31, 2011, to $2.9 million at March 31. Even with the reduction in our provision, because of improved credit quality, we continue to maintain strong reserves against probable incurred losses.”
Net loans were $567.18 million March 31, up from $561.99 million Dec. 31 and $566.31 March 31, 2011. Most of the growth in the first quarter occurred in the commercial real estate portfolio, Farmers said.
Net interest income was $9.22 million during the quarter compared to $9.12 million the last quarter of 2011 and $9.08 million the first quarter a year ago. At March 31, loans, which yield more than securities, were 56% of average earning assets compared to 62% a year earlier.
Noninterest income – including trust fees and loan service charges – was $2.73 million during the quarter compared to $4.53 million the preceding quarter and $2.62 million the first quarter of 2011. Trust fees generated $1.4 million the first quarter, Farmers reported, $80,000 or 6% above first-quarter 2011 figures.
Noninterest expense – salaries, benefits, Federal Deposit Insurance Corp. premiums, rents and maintenance of repossessed real estate – was $8.64 million for the quarter compared to $9.65 million the previous quarter and $7.81 million the same quarter a year ago. “Most of this increase,” Farmers said, “is a result of the $541,000 or 12.9% increase in salaries and employee benefits [because of] a higher number of employees in the current quarter,” which it attributed to new employees in North Canton and secondary mortgage project expansions. Advertising expense rose $103,000 in the quarter.
Nonperforming loans – those 90 days and longer past due – held steady as reflected in the $11.03 million posted at March 31, $10.98 million at Dec. 31 and $11.01 at March 31, 2011. Repossessed real estate (other real estate owned) continued to decline over 2011, beginning at $856,000 March 31 and falling to $585,000 at Dec. 31. It stood at $544,000 March 31.
Charged-off loans were $374,000 for the quarter, down from $1.40 million for the quarter ended Dec. 31 and $1.26 million the first quarter a year ago.
Total assets rose slightly to $1.106 billion, up from $1.068 billion at year-end and $1.015 billion at March 31, 2011. Stockholders’ equity also continues to rise, standing at $115.40 million March 31, up from $114.45 million at year end and $103.12 million March 31, 2011.
Published by The Business Journal, Youngstown, Ohio.