Farmers National Banc Corp. Announces 2017 Fourth Quarter Financial Results

  • Record net income for 2017 of $22.7 million, 10.5% higher than 2016 net income of $20.6 million.
  • 140 consecutive quarters of profitability
  • 10.5% loan growth since December 31, 2016
  • Return on average assets was 1.09%
  • Return on average equity 9.92%, for the year ended December 31, 2017
  • Non-performing assets to total assets remain at low levels, 0.36% at December 31, 2017

CANFIELD, Ohio--()--Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported financial results for the three and twelve months ended December 31, 2017.

Net income for the three months ended December 31, 2017 was $5.2 million, or $0.19 per diluted share, which compares to $5.4 million, or $0.20 per diluted share, for the three months ended December 31, 2016 and $6.0 million or $0.22 per diluted share for the linked quarter. Excluding a $1.8 million adjustment of the net deferred tax asset resulting from the Tax Cuts and Jobs Act that became law in December 2017, offset by tax equated, net acquisition-related adjustments of $48 thousand, net income for the three month period ended December 31, 2017 would have been $7.0 million.

Annualized return on average assets and return on average equity were 0.96% and 8.60%, respectively, for the three month period ending December 31, 2017, compared to 1.08% and 9.74% for the same three month period in 2016, and 1.12% and 10.15% for the linked quarter. Excluding the net deferred tax asset adjustment and the acquisition-related adjustments, the annualized return on average assets and annualized return on average equity for the fourth quarter of 2017 would have been 1.29% and 11.56%, respectively. Farmers’ return on average tangible equity (Non-GAAP) was 10.69% for the quarter ended December 31, 2017 compared to 12.34% for the same quarter in 2016 and 12.69% for the linked quarter. Excluding the acquisition expenses and the deferred tax asset adjustment the return on average tangible equity would have been 14.25%.

Net income for the year ended December 31, 2017 was $22.7 million, or $0.82 per diluted share, compared to $20.6 million or $0.76 per diluted share for 2016. Return on average assets and return on average equity were 1.09% and 9.92%, respectively, for the year ending December 31, 2017, compared to 1.07% and 9.72% for 2016. Excluding the net deferred tax asset adjustment and the acquisition-related adjustments, net income for the twelve month period ended December 31, 2017 would have been $24.8 million or $0.90 per diluted share, and the return on average assets and return on average equity would have been 1.19% and 10.83%, while the return on average tangible equity would have been 13.48%.

On December 22, 2017, H.R.1, known as the “Tax Cuts and Jobs Act,” was signed into law. H.R.1, among other things, reduces the corporate income tax rate to 21%, effective January 1, 2018. As a result of passage of the new tax law, Farmers completed a revaluation of its net deferred tax assets. The Company’s deferred tax assets, net of deferred tax liabilities, represent corporate tax benefits anticipated to be realized in the future. The reduction in the federal corporate tax rate, effective January 1, 2018, reduces these benefits. Farmers determined that its net deferred tax assets would be reduced by approximately $1.8 million in the fourth quarter of 2017, representing an impact on earnings per share of approximately $0.06 per diluted share based fourth quarter weighted average diluted shares outstanding of approximately 27.5 million.

Farmers National Bank has expanded the Commercial Lending Team and its footprint with the addition of three new hires at a new office located in Beachwood, Ohio, a high net-worth marketplace. The Beachwood office is comprised of a Commercial Lending Team Leader and Market President, a Senior Commercial Relationship Manager and a Vice President, Senior Commercial Relationship Manager. Management believes this new expansion will enhance its lending presence in Northeastern Ohio.

Kevin J. Helmick, President and CEO, stated, “We are happy to report a record year in net income for Farmers, and we are excited about our success and entrance into expanded markets and remain focused on our strategic growth plan which has paved the way for the company to exceed $2 billion in assets in 2017. We continue to be encouraged by our loan growth, which has increased 10.5% during the past twelve months, and our 3.5% increase in noninterest income on a year over year basis.”

2017 Fourth Quarter Financial Highlights

  • Loan growth
    Total loans were $1.58 billion at December 31, 2017, compared to $1.43 billion at December 31, 2016, representing an increase of 10.5%. The increase in loans is a result of Farmers’ focus on loan growth utilizing a talented lending and credit team, while adhering to a sound underwriting discipline. The increase in loans has occurred mainly in the commercial real estate, residential real estate and agricultural loan categories. Loans now comprise 77.7% of the Bank's average earning assets for the year ended December 31, 2017, an improvement compared to 76.3% for the same period in 2016. This improvement, along with the growth in earning assets, has resulted in a 10.7% increase in tax equated loan income from 2016 to 2017.
  • Loan quality
    Non-performing assets to total assets remain at a low level, currently 0.36%. Early stage delinquencies, which are loans 30 – 89 days delinquent, also continue to remain at low levels, at $10.2 million, or 0.65% of total loans, at December 31, 2017. Net charge-offs for the current quarter were $189 thousand, compared to $656 thousand in the same quarter in 2016 and total net charge-offs as a percentage of average net loans outstanding was only 0.05% for the quarter ended December 31, 2017. Lending to the energy sector is insignificant and less than 1% of the loan portfolio.
  • Net interest margin
    The net interest margin for the three months ended December 31, 2017 was 3.98%, a 3 basis points increase from the quarter ended December 31, 2016. In comparing the fourth quarter of 2017 to the same period in 2016, asset yields increased 17 basis points, while the cost of interest-bearing liabilities increased 20 basis points. The net interest margin is impacted by the additional accretion as a result of the discounted loan portfolios acquired in the previous mergers, which increased the net interest margin by 3 and 7 basis points for the quarters ended December 31, 2017 and 2016, respectively.
  • Noninterest income
    Noninterest income decreased slightly to $6.05 million for the quarter ended December 31, 2017 compared to $6.08 million in 2016. Trust fees increased $140 thousand or 9.5% in the current year’s quarter compared to the same quarter in 2016, and debit card interchange fees also increased $108 thousand or 15%. These increases were offset by a decrease in other operating income of $258 thousand and a decrease in investment commissions of $50 thousand.
  • Noninterest expenses
    Farmers has remained committed to managing the level of noninterest expenses. Total noninterest expenses for the fourth quarter of 2017 increased to $15.4 million compared to $15 million in the same quarter in 2016, primarily as a result of increases in salaries and employee benefits of $449 thousand, merger related costs of $433 thousand and advertising expense of $320 thousand. These increases were offset by decreases in other operating expenses of $459 thousand, occupancy and equipment expense of $220 thousand and professional fees of $160 thousand. It is important to note that annualized noninterest expenses measured as a percentage of quarterly average assets decreased from 3.01% in the fourth quarter of 2016 to 2.83% in the fourth quarter of 2017.
  • Efficiency ratio
    The efficiency ratio for the quarter ended December 31, 2017 improved to 59.1% compared to 60.4% for the same quarter in 2016. The main factors leading to this improvement were the increase in net interest income and the stabilized level of noninterest expenses relative to average assets as explained in the preceding paragraphs.

2018 Outlook

Mr. Helmick added, “We are pleased by the improvement in our financial results for 2017. As we look forward to 2018, we continue to focus our energy on the seamless integration of our newly acquired bank and customers and we remain committed to the businesses and families we serve and to our community banking approach and culture.”

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $2.2 billion in banking assets and $1 billion in trust assets. Farmers National Banc Corp.’s wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 41 banking locations in Mahoning, Trumbull, Columbiana, Stark, Wayne, Medina, Holmes and Cuyahoga Counties in Ohio and Beaver County in Pennsylvania, Farmers Trust Company, which operates four trust offices and offers services in the same geographic markets, and National Associates, Inc. Farmers National Insurance, LLC and Bowers Insurance Agency, Inc., wholly-owned subsidiaries of The Farmers National Bank of Canfield, offer a variety of insurance products.

Non-GAAP Disclosure

This press release includes disclosures of Farmers’ tangible common equity ratio, return on average tangible assets, return on average tangible equity and net income excluding costs related to acquisition activity expenses and adjustments to the net deferred tax asset resulting from the Tax Cuts and Jobs Act, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers’ marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the tables following Consolidated Financial Highlights below.

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Farmers’ financial condition, results of operations, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management’s current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Farmers’ control. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions, as well as any statements related to future expectations of performance or conditional verbs, such as “will,” “would,” “should,” “could” or “may.” Farmers’ actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Farmers’ actual results to differ materially from those described in the forward-looking statements can be found in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2016, which has been filed with the Securities and Exchange Commission (SEC) and is available on Farmers’ website (www.farmersbankgroup.com) and on the SEC’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Farmers does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

             
Farmers National Banc Corp. and Subsidiaries
Consolidated Financial Highlights
(Amounts in thousands, except per share results) Unaudited
 
Consolidated Statements of Income For the Three Months Ended   For the Twelve Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31 Percent
2017   2017   2017   2017   2016   2017   2016   Change
Total interest income $21,084 $20,551 $20,042 $18,850 $18,469 $80,527 $72,498 11.1%
Total interest expense 2,017   1,876   1,669   1,319   1,178   6,881   4,378   57.2%
Net interest income 19,067 18,675 18,373 17,531 17,291 73,646 68,120 8.1%
Provision for loan losses 400 950 950 1,050 990 3,350 3,870 -13.4%
Noninterest income 6,051 6,058 6,055 5,887 6,076 24,051 23,244 3.5%
Acquisition related costs 88 270 104 62 19 524 563 -6.9%
Other expense 15,311   15,521   15,660   14,551   14,981   61,043   58,889   3.7%
Income before income taxes 9,319 7,992 7,714 7,755 7,377 32,780 28,042 16.9%
Income taxes 4,084   2,009   2,004   1,972   2,014   10,069   7,485   34.5%
Net income $5,235   $5,983   $5,710   $5,783   $5,363   $22,711   $20,557   10.5%
 
Average shares outstanding 27,941 27,654 27,337 27,278 27,216 27,568 27,000
Basic and diluted earnings per share 0.19 0.22 0.21 0.21 0.20 0.82 0.76
Cash dividends 1,653 1,653 1,353 1,353 1,082 6,012 4,326
Cash dividends per share 0.06 0.06 0.05 0.05 0.04 0.22 0.16
Performance Ratios
Net Interest Margin (Annualized) 3.98% 3.96% 4.05% 4.01% 3.95% 3.99% 4.01%
Efficiency Ratio (Tax equivalent basis) 59.13% 59.93% 60.79% 58.79% 60.37% 59.66% 61.59%
Return on Average Assets (Annualized) 0.96% 1.12% 1.11% 1.17% 1.08% 1.09% 1.07%
Return on Average Equity (Annualized) 8.60% 10.15% 10.25% 10.87% 9.74% 9.92% 9.72%
Dividends to Net Income 31.58% 27.63% 23.70% 23.40% 20.18% 26.47% 21.04%
Other Performance Ratios (Non-GAAP)
Return on Average Tangible Assets 0.99% 1.15% 1.14% 1.18% 1.11% 1.11% 1.09%
Return on Average Tangible Equity 10.69% 12.69% 12.77% 13.54% 12.34% 12.36% 12.30%
Return on Average Tangible Equity excluding acquisition costs and deferred tax asset adjustments 14.25% 13.09% 12.98% 13.65% 12.37% 13.48% 12.55%
 
 
Consolidated Statements of Financial Condition
  Dec. 31,   Sept. 30,   June 30,   March 31,   Dec. 31,
2017   2017   2017   2017   2016
Assets
Cash and cash equivalents $57,614 $84,006 $64,640 $61,251 $41,778
Securities available for sale 393,331 395,235 391,628 377,072 369,995
 
Loans held for sale 272 502 583 1,098 355
Loans 1,577,381 1,551,437 1,505,273 1,461,461 1,427,635
Less allowance for loan losses 12,315   12,104   11,746   11,319   10,852
Net Loans 1,565,066   1,539,333   1,493,527   1,450,142   1,416,783
 
Other assets 142,786   142,949   135,286   136,924   137,202
Total Assets $2,159,069   $2,162,025   $2,085,664   $2,026,487   $1,966,113
 
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing $412,346 $413,991 $387,596 $374,399 $366,870
Interest-bearing 1,192,373   1,195,533   1,153,407   1,165,821   1,157,886
Total deposits 1,604,719 1,609,524 1,541,003 1,540,220 1,524,756
Other interest-bearing liabilities 296,559 295,270 298,827 245,069 213,496
Other liabilities 15,717   19,348   19,147   23,136   14,645
Total liabilities 1,916,995 1,924,142 1,858,977 1,808,425 1,752,897
Stockholders' Equity 242,074   237,883   226,687   218,062   213,216
Total Liabilities
and Stockholders' Equity $2,159,069   $2,162,025   $2,085,664   $2,026,487   $1,966,113
 
Period-end shares outstanding 27,544 27,544 27,067 27,067 27,048
Book value per share $8.79 $8.64 $8.38 $8.06 $7.88
Tangible book value per share (Non-GAAP)* 7.14 6.98 6.73 6.40 6.21
 
* Tangible book value per share is calculated by dividing tangible common equity by average outstanding shares
 
Capital and Liquidity
Common Equity Tier 1 Capital Ratio (a) 11.85% 12.00% 11.80% 11.75% 11.69%
Total Risk Based Capital Ratio (a) 12.58% 12.86% 12.67% 12.61% 12.53%
Tier 1 Risk Based Capital Ratio (a) 11.85% 12.13% 11.93% 11.89% 11.83%
Tier 1 Leverage Ratio (a) 9.39% 9.70% 9.47% 9.47% 9.41%
Equity to Asset Ratio 11.21% 11.00% 10.87% 10.76% 10.84%
Tangible Common Equity Ratio 9.31% 9.08% 8.93% 8.74% 8.75%
Net Loans to Assets 72.49% 71.20% 71.61% 71.56% 72.06%
Loans to Deposits 98.30% 96.39% 97.68% 94.89% 93.63%
Asset Quality
Non-performing loans $7,695 $6,900 $6,355 $6,553 $8,170
Other Real Estate Owned 171 219 236 318 482
Non-performing assets 7,866 7,119 6,591 6,871 8,652
Loans 30 - 89 days delinquent 10,191 8,680 7,052 8,258 12,747
Charged-off loans 809 809 725 943 841
Recoveries 620 217 202 360 185
Net Charge-offs 189 592 523 583 656
Annualized Net Charge-offs to
Average Net Loans Outstanding 0.05% 0.16% 0.14% 0.16% 0.20%
Allowance for Loan Losses to Total Loans 0.78% 0.78% 0.78% 0.77% 0.76%
Non-performing Loans to Total Loans 0.49% 0.44% 0.42% 0.45% 0.57%
Allowance to Non-performing Loans 160.04% 175.42% 184.83% 172.73% 132.83%
Non-performing Assets to Total Assets 0.36% 0.33% 0.32% 0.34% 0.44%
                     
(a) December 31, 2017 ratio is estimated
 
            For the Twelve Months Ended
Reconciliation of Total Assets to Tangible Assets
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31,   Dec. 31
2017   2017   2017   2017   2016   2017   2016
Total Assets $2,159,069 $2,162,025 $2,085,664 $2,026,487 $1,966,113 $2,159,069 $1,966,113
Less Goodwill and other intangibles 45,369   45,755   44,425   44,789   45,154   45,369   45,154
Tangible Assets $2,113,700   $2,116,270   $2,041,239   $1,981,698   $1,920,959   $2,113,700   $1,920,959
Average Assets 2,158,895 2,118,170 2,055,758 2,001,084 1,977,589 2,082,447 1,924,914
Less average Goodwill and other intangibles 45,622   45,263   44,665   45,028   45,173   45,146   44,284
Average Tangible Assets $2,113,273   $2,072,907   $2,011,093   $1,956,056   $1,932,416   $2,037,301   $1,880,630
 
 
For the Twelve Months Ended
Reconciliation of Common Stockholders' Equity to Tangible Common Equity
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31
2017   2017   2017   2017   2016   2017   2016
Stockholders' Equity $242,074 $237,883 $226,687 $218,062 $213,216 $242,074 $213,216
Less Goodwill and other intangibles 45,369   45,755   44,425   44,789   45,154   45,369   45,154
Tangible Common Equity $196,705   $192,128   $182,262   $173,273   $168,062   $196,705   $168,062
Average Stockholders' Equity 241,554 233,843 223,544 215,819 219,028 228,963 211,408
Less Average Goodwill and other intangibles 45,622   45,263   44,665   45,028   45,173   45,146   44,284
Average Tangible Common Equity $195,932   $188,580   $178,879   $170,791   $173,855   $183,817   $167,124
 
 
Reconciliation of Net Income, Excluding Acquisition Related Costs and Deferred Tax Asset Adjustments
For the Twelve Months Ended
For the Three Months Ended  
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31
2017   2017   2017   2017   2016   2017   2016
Net income $5,235 $5,983 $5,710 $5,783 $5,363 $22,711 $20,557
Acquisition related costs - tax equated (48) 190 94 47 15 283 412
Deferred tax asset adjustments 1,793   0   0   0   0   1,793   0
Net income - Adjusted $6,980   $6,173   $5,804   $5,830   $5,378   $24,787   $20,969
Average shares outstanding 27,941 27,654 27,337 27,278 27,216 27,568 27,000
EPS excluding acquisition costs and deferred tax asset adjustments $0.25   $0.22   $0.21   $0.21   $0.20   $0.90   $0.78
 
 
Reconciliation of Return on Average Assets and Average Equity, Excluding Acquisition Costs and Deferred Tax Asset Adjustments
For the Twelve Months Ended
For the Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Dec. 31, Dec. 31
2017   2017   2017   2017   2016   2017   2016
ROA excluding acquisition costs and deferred tax asset adjustments (b) 1.29% 1.17% 1.13% 1.17% 1.09% 1.19% 1.09%
ROE excluding acquisition costs and deferred tax asset adjustments (c) 11.56% 10.56% 10.39% 10.81% 9.82% 10.83% 9.92%
(b) Net income -adjusted divided by average assets
(c) Net income - adjusted divided by average equity
 
  For the Three Months Ended
Dec. 31,   Sept. 30,   June 30,   March 31,   Dec. 31,
End of Period Loan Balances 2017   2017   2017   2017   2016
Commercial real estate $513,708 $500,426 $476,844 $456,917 $446,975
Commercial 220,440 218,946 215,676 208,913 204,771
Residential real estate 469,442 459,702 445,991 441,593 430,674
Consumer 207,851 213,918 220,454 216,648 212,836
Agricultural loans 163,081   155,336   142,687   133,868   128,981
Total, excluding net deferred loan costs $1,574,522   $1,548,328   $1,501,652   $1,457,939   $1,424,237
 
For the Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
Noninterest Income 2017   2017   2017   2017   2016
Service charges on deposit accounts $1,060 $1,077 $989 $951 $1,031
Bank owned life insurance income 246 193 191 201 208
Trust fees 1,622 1,608 1,523 1,678 1,482
Insurance agency commissions 530 531 672 674 559
Security gains 5 0 (14) 13 1
Retirement plan consulting fees 465 480 399 513 444
Investment commissions 260 184 253 222 310
Net gains on sale of loans 810 758 891 607 838
Debit card and EFT fees 830 770 836 653 722
Other operating income 223   457   315   375   481
Total Noninterest Income $6,051   $6,058   $6,055   $5,887   $6,076
 
For the Three Months Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
Noninterest Expense 2017   2017   2017   2017   2016
Salaries and employee benefits $8,697 $8,922 $8,853 $8,287 $8,248
Occupancy and equipment 1,528 1,546 1,631 1,587 1,748
State and local taxes 386 436 424 417 363
Professional fees 643 726 775 747 803
Merger related costs 452 270 104 62 19
Litigation settlement expense 0 0 155 0 0
Advertising 561 405 317 244 241
FDIC insurance 165 235 234 235 199
Intangible amortization 386 379 364 365 368
Core processing charges 806 702 717 655 743
Telephone and data 241 249 242 241 275
Other operating expenses 1,534   1,921   1,948   1,773   1,993
Total Noninterest Expense $15,399   $15,791   $15,764   $14,613   $15,000
 
 
Average Balance Sheets and Related Yields and Rates
(Dollar Amounts in Thousands)
           
Three Months Ended Three Months Ended
December 31, 2017   December 31, 2016
 
AVERAGE INTEREST AVERAGE INTEREST
BALANCE (1) RATE (1) BALANCE (1) RATE (1)
EARNING ASSETS
Loans (2) $1,546,368 $18,411 4.72% $1,397,289 $16,328 4.65%
Taxable securities 210,913 1,245 2.34 223,731 1,173 2.09
Tax-exempt securities (2) 180,539 1,976 4.34 140,113 1,483 4.21
Equity securities 10,516 163 6.15 9,644 112 4.62
Federal funds sold and other 36,661   123 1.33 37,473   47 0.50
Total earning assets 1,984,997 21,918 4.38 1,808,250 19,143 4.21
Nonearning assets 173,898 169,339
Total assets $2,158,895 $1,977,589
INTEREST-BEARING LIABILITIES
Time deposits $255,414 $732 1.14% $240,415 $463 0.77%
Savings deposits 512,034 186 0.14 537,292 184 0.14
Demand deposits 429,603 359 0.33 364,443 215 0.23
Short term borrowings 282,026 695 0.98 206,852 204 0.39
Long term borrowings 7,684   45 2.32 17,403   111 2.54
Total interest-bearing liabilities $1,486,761 2,017 0.54 $1,366,405 1,177 0.34
NONINTEREST-BEARING LIABILITIES

AND STOCKHOLDERS' EQUITY

Demand deposits 414,719 376,463
Other liabilities 15,861 15,693
Stockholders' equity 241,554 219,028
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,158,895     $1,977,589    
Net interest income and interest rate spread $19,901   3.84% $17,966   3.87%
Net interest margin 3.98% 3.95%
(1) Interest and yields are calculated on a tax-equivalent basis where applicable.
(2) For 2017, adjustments of $148 thousand and $686 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2016, adjustments of $160 thousand and $531 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 35%, less disallowances.
 
   
Twelve Months Ended Twelve Months Ended
December 31, 2017   December 31, 2016
       
AVERAGE INTEREST AVERAGE INTEREST
BALANCE (1) RATE (1) BALANCE (1) RATE (1)
EARNING ASSETS
Loans (2) $1,493,550 $70,573 4.73% $1,344,308 $63,757 4.74%
Taxable securities 213,634 4,899 2.29 240,087 5,058 2.11
Tax-exempt securities 167,824 7,293 4.35 132,550 5,581 4.21
Equity securities (2) 10,285 537 5.22 9,613 515 5.36
Federal funds sold and other 37,880   394 1.04 34,579   166 0.48
Total earning assets 1,923,173 83,696 4.35 1,761,137 75,077 4.26
Nonearning assets 159,274 163,777
Total assets $2,082,447 $1,924,914
INTEREST-BEARING LIABILITIES
Time deposits $242,650 $2,565 1.06% $245,384 $1,834 0.75%
Savings deposits 521,099 728 0.14 540,626 685 0.13
Demand deposits 405,062 1,197 0.30 333,712 701 0.21
Short term borrowings 270,949 2,167 0.80 211,713 689 0.33
Long term borrowings 9,739   224 2.30 19,886   468 2.35
Total interest-bearing liabilities $1,449,499 6,881 0.47 $1,351,321 4,377 0.32
NONINTEREST-BEARING LIABILITIES
AND STOCKHOLDERS' EQUITY
Demand deposits $390,230 $348,003
Other liabilities 13,755 14,182
Stockholders' equity 228,963 211,408
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,082,447     $1,924,914    
Net interest income and interest rate spread $76,815   3.88% $70,700   3.94%
Net interest margin 3.99% 4.01%
(1) Interest and yields are calculated on a tax-equivalent basis where applicable.
(2) For 2017, adjustments of $639 thousand and $2.5 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2016, adjustments of $648 thousand and $1.9 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 35%, less disallowances.

Contacts

Farmers National Banc Corp.
Kevin J. Helmick, President and CEO, 330-533-3341
Email: exec@farmersbankgroup.com

Contacts

Farmers National Banc Corp.
Kevin J. Helmick, President and CEO, 330-533-3341
Email: exec@farmersbankgroup.com