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Farmers National Bank Records Drop in Income
CANFIELD, Ohio -- Farmers National Banc Corp. parent holding company of the Farmers National Bank of Canfield, today reported net income for the three months ended June 30 of $2.295 million, or 19 cents per share, compared to $2.423 million, or 19 cents per share for the second quarter of 2003. Net income for the six-month period ending June 30 was $4.632 million, compared to $4.629 million reported for the 2003 period , or 37 cents per share for both six-month periods."Our second quarter's results are slightly behind our internal projections," said Frank L. Paden, president and chief executive officer. "This is due in part to the continued trend in the compression of our net interest rate margin that we have experienced over the past year," he noted. "We anticipate less pressure on asset yields and liability costs during the second half of the year taking into consideration the Federal Reserve Bank's recently announced interest rate hike. Management anticipates the challenge for the remainder of this year will be to generate asset growth through the loan portfolio and continue to improve on ways to increase our non-interest income."Annualized returns on average equity and average assets for the first six months were 11.89% and 1.18%, respectively, compared to 11.33% and 1.21% for the 2003 period, the company said.Total assets increased slightly over the prior year, ending the second quarter at $805 million as compared to $798 million at June 30. Asset growth includes an $11.8 million net increase in loans. Commercial real estate lending remained strong during the past six months, while residential real estate mortgage loans and consumer loans experienced minimal growth. The bank reported non-performing loans represent only .33% of total loans and .19% of total assets. Deposits increased $20.6 million, or 3%, from June 2003, the company said. Total shareholders' equity is down $5.7 million from this time last year. As part of management's capital plan, Farmers' stock repurchase program permitted the company to re-purchase 290,878 shares during the last 12 months, accounting for approximately $4.8 million of the decrease in shareholders' equity. At the end of June, book value per share was $6.08 and shareholders' equity was 9.59% of total assets, the company said.Farmers National Bank operates 16 banking offices throughout Mahoning, Trumbull and Columbiana counties. Visit Farmers National Bank at www.fnbcanfield.com. "