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Press Release

Farmers National Banc Corp. Announces 2018 Third Quarter Financial Results

Company Release - 10/24/2018 8:00 AM ET
  • Record net income for the quarter of $8.1 million, 35% higher than the same quarter in 2017
  • 143 consecutive quarters of profitability
  • Annualized return on average assets was 1.42% and annualized return on average equity 12.80% for the quarter ended September 30, 2018
  • 9% loan growth since September 30, 2017
  • Non-performing assets to total assets remain at low levels, 0.40% at September 30, 2018

CANFIELD, Ohio--(BUSINESS WIRE)-- Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported financial results for the three months ended September 30, 2018.

Net income for the three months ended September 30, 2018 was $8.1 million, or $0.29 per diluted share, which compares to $6.0 million, or $0.22 per diluted share, for the three months ended September 30, 2017 and $8.1 million, or $0.29 per diluted share, for the linked quarter. Annualized return on average assets and return on average equity were 1.42% and 12.80%, respectively, for the three month period ending September 30, 2018, compared to 1.12% and 10.15% for the same three month period in 2017, and 1.47% and 13.28% for the linked quarter. Farmers’ return on average tangible equity (Non-GAAP) was 15.70% for the quarter ended September 30, 2018 compared to 12.69% for the same quarter in 2017 and 16.24% for the linked quarter.

Net income for the nine months ended September 30, 2018 was $23.9 million, or $0.85 per diluted share, compared to $17.5 million or $0.64 per diluted share for the same nine month period in 2017. Return on average assets and return on average equity were 1.45% and 13.00%, respectively, for the nine months ended September 30, 2018, compared to 1.14% and 10.41% for the same period in 2017. Farmers’ return on average tangible equity (Non-GAAP) was 15.86% for the nine month period ended September 30, 2018 compared to 12.98% for the same period in 2017.

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, reduced the corporate income tax rate to 21% effective January 1, 2018. As a result of passage of the new tax law, Farmers effective tax rate decreased from 25.5% for the nine months ended September 30, 2017 to 14.7% for the nine months ended September 30, 2018. It is important to note that also as a result of the new tax law, Farmers determined that its net deferred tax assets needed to be reduced in the fourth quarter of 2017 by approximately $1.8 million, representing an impact on earnings per share of approximately $0.06 per diluted share for that fourth quarter, based on that quarter’s weighted average diluted shares outstanding of approximately 27.5 million.

Kevin J. Helmick, President and CEO, stated, “We are pleased to report another strong quarter which is the result of the successful execution of our strategic plan, continued strong loan growth, higher levels of noninterest income and a lower effective income tax rate.”

2018 Third Quarter Financial Highlights

  • Loan growth
    Total loans were $1.69 billion at September 30, 2018, compared to $1.55 billion at September 30, 2017, representing an increase of 9.0%. The increase in loans is a direct 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 in the commercial and commercial real estate, residential real estate and agricultural loan portfolios. Loans now comprise 78.8% of the Bank's average earning assets for the quarter ended September 30, 2018, an improvement compared to 77.6% for the same period in 2017. This improvement, along with the interest rate environment, has resulted in a 15.4% increase in loan income in the third quarter of 2018 compared to the same quarter in 2017.
  • Loan quality
    Non-performing assets to total assets remain at a low level, currently at 0.40%. Early stage delinquencies also continue to remain at low levels, at $10.6 million, or 0.63% of total loans, at September 30, 2018. Net charge-offs for the current quarter were $338 thousand, compared to $592 thousand in the same quarter in 2017 and annualized net charge-offs as a percentage of average net loans outstanding is only 0.08% for the quarter ended September 30, 2018. 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 September 30, 2018 was 3.86%, a 10 basis points decrease from the quarter ended September 30, 2017. In comparing the third quarter of 2018 to the same period in 2017, asset yields increased 21 basis points, while the cost of interest-bearing liabilities increased 41 basis points. Most of this increase was the result of higher rates paid on short-term borrowings and time deposits, consistent with increases in the federal funds sold rate. 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 4 and 3 basis points for the quarters ended September 30, 2018 and 2017, respectively.
  • Noninterest income
    Noninterest income increased 6.9% to $6.5 million for the quarter ended September 30, 2018 compared to $6.1 million in the same quarter of 2017. Trust fees increased $219 thousand or 13.6% in comparing the third quarter of 2018 to the same quarter in 2017. In the third quarter of 2018 investment commissions increased $89 thousand or 48.4%, service charges on deposit accounts increased $74 thousand or 6.9% and net gains on sale of loans increased $46 thousand or 6.1% from the third quarter in 2017. These increases were offset by a drop in other operating income of $70 thousand or 15%.
  • Noninterest expenses
    Farmers has remained committed to managing its level of noninterest expenses. Total noninterest expenses for the third quarter of 2018 increased 2.5% to $16.2 million compared to $15.8 million in the same quarter in 2017, primarily a result of increases in other operating expenses of $397 thousand which included $150 thousand in captive insurance losses and core processing charges of $76 thousand, offset by a $270 thousand decrease in merger related costs. It is important to note that annualized noninterest expenses measured as a percentage of quarterly average assets decreased from 2.96% in the third quarter of 2017 to 2.85% in the third quarter of 2018.
  • Efficiency ratio
    The efficiency ratio for the quarter ended September 30, 2018 improved to 58.70% compared to 59.93% for the same quarter in 2017. The main factors leading to this improvement were the increase in net interest income and noninterest income and a lower level of noninterest expenses relative to average assets as explained in the preceding paragraphs.

2018 Outlook

Mr. Helmick added, “We are encouraged by our financial results for the first three quarters of 2018 and look to use this momentum to sustain strong performance for the remainder of the year. As always, we will remain focused on delivering for the businesses, families and communities we serve.”

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $2.3 billion in banking 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 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. Total wealth management assets under care at September 30, 2018 are $2.7 billion. 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 activities, 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, 2017, 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 Nine Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, Percent
2018   2018   2018   2017   2017   2018   2017     Change
Total interest income $ 23,563 $ 22,474 $ 21,282 $ 21,084 $ 20,551 $ 67,319 $ 59,443 13.2 %
Total interest expense   3,644       2,912       2,336       2,017       1,876       8,892       4,864     82.8 %
Net interest income 19,919 19,562 18,946 19,067 18,675 58,427 54,579 7.1 %
Provision for loan losses 950 750 775 400 950 2,475 2,950 -16.1 %
Noninterest income 6,478 6,306 6,010 6,051 6,058 18,794 18,000 4.4 %
Acquisition related costs 0 0 25 88 270 25 436 -94.3 %
Other expense   16,180       15,458       15,071       15,311       15,521       46,709       45,732     2.1 %
Income before income taxes 9,267 9,660 9,085 9,319 7,992 28,012 23,461 19.4 %
Income taxes   1,183       1,587       1,359       4,084       2,009       4,129       5,985     -31.0 %
Net income $ 8,084     $ 8,073     $ 7,726     $ 5,235     $ 5,983     $ 23,883     $ 17,476     36.7 %
 
Average basic shares outstanding 27,695 27,641 27,918 27,941 27,654 27,639 27,437
Basic earnings per share 0.29 0.29 0.28 0.19 0.22 0.86 0.64
Diluted earnings per share 0.29 0.29 0.28 0.19 0.22 0.85 0.64
Cash dividends 2,222 1,935 1,935 1,653 1,653 6,092 4,359
Cash dividends per share 0.08 0.07 0.07 0.06 0.06 0.22 0.16
Performance Ratios
Net Interest Margin (Annualized) 3.86 % 3.93 % 3.92 % 3.98 % 3.96 % 3.90 % 4.01 %
Efficiency Ratio (Tax equivalent basis) 58.70 % 57.31 % 57.98 % 59.13 % 59.93 % 58.00 % 59.85 %
Return on Average Assets (Annualized) 1.42 % 1.47 % 1.45 % 0.96 % 1.12 % 1.45 % 1.14 %
Return on Average Equity (Annualized) 12.80 % 13.28 % 13.03 % 8.60 % 10.15 % 13.00 % 10.41 %
Dividends to Net Income 27.49 % 23.97 % 25.05 % 31.58 % 27.63 % 25.51 % 24.94 %
Other Performance Ratios (Non-GAAP)
Return on Average Tangible Assets 1.46 % 1.50 % 1.46 % 0.99 % 1.15 % 1.47 % 1.16 %
Return on Average Tangible Equity 15.70 % 16.24 % 15.84 % 10.69 % 12.69 % 15.86 % 12.98 %
Return on Average Tangible Equity excluding acquisition costs and deferred tax asset adjustments 15.70 % 16.24 % 15.88 % 14.25 % 13.09 % 15.87 % 13.30 %
 
 
Consolidated Statements of Financial Condition
 
  Sept. 30,   June 30,   March 31,   Dec. 31,   Sept. 30,
2018   2018   2018   2017   2017
Assets
Cash and cash equivalents $ 75,635 $ 76,623 $ 52,149 $ 57,614 $ 84,006
Securities available for sale 389,996 388,890 384,396 392,937 394,853
Equity securities 6,892 6,344 6,009 5,579 5,030
 
Loans held for sale 1,428 1,987 399 272 502
Loans 1,691,532 1,639,191 1,599,339 1,577,381 1,551,437
Less allowance for loan losses   13,377       12,764       12,550       12,315       12,104  
Net Loans   1,678,155       1,626,427       1,586,789       1,565,066       1,539,333  
 
Other assets   140,572       137,668       137,775       137,601       138,301  
Total Assets $ 2,292,678     $ 2,237,939     $ 2,167,517     $ 2,159,069     $ 2,162,025  
 
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing $ 426,689 $ 420,991 $ 402,499 $ 412,346 $ 413,991
Interest-bearing   1,332,022       1,229,346       1,234,660       1,192,373       1,195,533  
Total deposits 1,758,711 1,650,337 1,637,159 1,604,719 1,609,524
Other interest-bearing liabilities 270,273 322,565 274,816 296,559 295,270
Other liabilities   14,905       17,527       14,302       15,717       19,348  
Total liabilities 2,043,889 1,990,429 1,926,277 1,916,995 1,924,142
Stockholders' Equity   248,789       247,510       241,240       242,074       237,883  

Total Liabilities and Stockholders' Equity

$ 2,292,678     $ 2,237,939     $ 2,167,517     $ 2,159,069     $ 2,162,025  
 
Period-end shares outstanding 27,777 27,641 27,641 27,544 27,544
Book value per share $ 8.96 $ 8.95 $ 8.73 $ 8.79 $ 8.64
Tangible book value per share (Non-GAAP)* 7.36 7.34 7.10 7.14 6.98
 
* 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) 12.09 % 12.11 % 12.06 % 11.86 % 12.00 %
Total Risk Based Capital Ratio (a) 12.84 % 12.97 % 12.94 % 12.73 % 12.86 %
Tier 1 Risk Based Capital Ratio (a) 12.19 % 12.24 % 12.19 % 11.99 % 12.13 %
Tier 1 Leverage Ratio (a) 9.75 % 9.81 % 9.68 % 9.50 % 9.70 %
Equity to Asset Ratio 10.85 % 11.06 % 11.13 % 11.21 % 11.00 %
Tangible Common Equity Ratio 9.09 % 9.25 % 9.24 % 9.31 % 9.08 %
Net Loans to Assets 73.20 % 72.68 % 73.21 % 72.49 % 71.20 %
Loans to Deposits 96.18 % 99.32 % 97.69 % 98.30 % 96.39 %
Asset Quality
Non-performing loans $ 9,222 $ 8,406 $ 7,893 $ 7,695 $ 6,900
Other Real Estate Owned 0 0 59 171 219
Non-performing assets 9,222 8,406 7,952 7,866 7,119
Loans 30 - 89 days delinquent 10,626 10,636 6,973 10,191 8,680
Charged-off loans 544 777 782 809 809
Recoveries 207 241 242 620 217
Net Charge-offs 337 536 540 189 592
Annualized Net Charge-offs to
Average Net Loans Outstanding 0.08 % 0.13 % 0.14 % 0.05 % 0.16 %
Allowance for Loan Losses to Total Loans 0.79 % 0.78 % 0.78 % 0.78 % 0.78 %
Non-performing Loans to Total Loans 0.55 % 0.51 % 0.49 % 0.49 % 0.44 %
Allowance to Non-performing Loans 145.06 % 151.84 % 159.00 % 160.04 % 175.42 %
Non-performing Assets to Total Assets 0.40 % 0.38 % 0.37 % 0.36 % 0.33 %
                                         

(a) September 30, 2018 ratio is estimated

           

For the Nine Months Ended

Reconciliation of Total Assets to Tangible Assets

Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30,   Sept. 30,
2018   2018   2018   2017   2017   2018   2017
Total Assets $ 2,292,678 $ 2,237,939 $ 2,167,517 $ 2,159,069 $ 2,162,025 $ 2,292,678 $ 2,162,025
Less Goodwill and other intangibles   44,305       44,661     45,015     45,369       45,755     44,305     45,755
Tangible Assets $ 2,248,373     $ 2,193,278   $ 2,122,502   $ 2,113,700     $ 2,116,270   $ 2,248,373   $ 2,116,270
Average Assets 2,255,049 2,199,960 2,162,706 2,158,895 2,118,170 2,206,379 2,056,800
Less average Goodwill and other intangibles   44,541       44,893     45,248     45,622       45,263     44,891     44,986
Average Tangible Assets $ 2,210,508     $ 2,155,067   $ 2,117,458   $ 2,113,273     $ 2,072,907   $ 2,161,488   $ 2,011,814
 
For the Nine Months Ended
Reconciliation of Common Stockholders' Equity to Tangible Common Equity
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
2018   2018   2018   2017   2017   2018   2017
Stockholders' Equity $ 248,789 $ 247,510 $ 241,240 $ 242,074 $ 237,883 $ 248,789 $ 237,883
Less Goodwill and other intangibles   44,305       44,661     45,015     45,369       45,755     44,305     45,755
Tangible Common Equity $ 204,484     $ 202,849   $ 196,225   $ 196,705     $ 192,128   $ 204,484   $ 192,128
Average Stockholders' Equity 250,503 243,792 240,387 241,554 233,843 245,691 224,496
Less average Goodwill and other intangibles   44,541       44,893     45,248     45,622       45,263     44,891     44,986
Average Tangible Common Equity $ 205,962     $ 198,899   $ 195,139   $ 195,932     $ 188,580   $ 200,800   $ 179,510

 

Reconciliation of Net Income, Excluding Acquisition Related Costs and Deferred Tax Asset Adjustments
For the Nine Months Ended
For the Three Months Ended  
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
2018   2018   2018   2017   2017   2018   2017
Net income $ 8,084 $ 8,073 $ 7,726 $ 5,235 $ 5,983 $ 23,883 $ 17,476
Acquisition related costs - tax equated 0 0 22 (48 ) 190 22 436
Deferred tax asset adjustments   0       0     0     1,793       0     0     0
Net income - Adjusted $ 8,084     $ 8,073   $ 7,748   $ 6,980     $ 6,173   $ 23,905   $ 17,912
Average shares outstanding 27,695 27,641 27,918 27,941 27,654 27,639 27,654
EPS excluding acquisition costs and deferred tax asset adjustments $ 0.29     $ 0.29   $ 0.28   $ 0.25     $ 0.22   $ 0.86   $ 0.65
 
For the Three Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
End of Period Loan Balances 2018   2018   2018   2017   2017
Commercial real estate $ 562,272 $ 523,417 $ 511,628 $ 513,707 $ 500,426
Commercial 233,188 232,672 231,498 220,441 218,946
Residential real estate 489,851 479,486 472,350 469,442 459,702
Consumer 220,826 219,138 210,088 207,851 213,918
Agricultural loans   182,038       181,173     170,725     163,081       155,336
Total, excluding net deferred loan costs $ 1,688,175     $ 1,635,886   $ 1,596,289   $ 1,574,522     $ 1,548,328
 
For the Three Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
Noninterest Income 2018   2018   2018   2017   2017
Service charges on deposit accounts $ 1,151 $ 985 $ 1,003 $ 1,060 $ 1,077
Bank owned life insurance income 219 219 222 246 193
Trust fees 1,827 1,740 1,807 1,622 1,608
Insurance agency commissions 567 713 699 530 531
Security gains (34 ) 27 18 5 0
Retirement plan consulting fees 470 465 379 465 480
Investment commissions 273 315 256 260 184
Net gains on sale of loans 804 606 487 810 758
Debit card and EFT fees 814 870 806 830 770
Other operating income   387       366     333     223       457
Total Noninterest Income $ 6,478     $ 6,306   $ 6,010   $ 6,051     $ 6,058
 
For the Three Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
Noninterest Expense 2018   2018   2018   2017   2017
Salaries and employee benefits $ 8,966 $ 8,828 $ 8,738 $ 8,697 $ 8,922
Occupancy and equipment 1,597 1,611 1,704 1,528 1,546
State and local taxes 475 479 459 386 436
Professional fees 687 737 698 643 726
Merger related costs 0 0 25 88 270
Advertising 489 379 275 561 405
FDIC insurance 218 225 222 165 235
Intangible amortization 354 355 354 386 379
Core processing charges 778 794 739 806 702
Telephone and data 298 238 237 241 249
Other operating expenses   2,318       1,812     1,645     1,898       1,921
Total Noninterest Expense $ 16,180     $ 15,458   $ 15,096   $ 15,399     $ 15,791
 
Average Balance Sheets and Related Yields and Rates
(Dollar Amounts in Thousands)
           
Three Months Ended Three Months Ended
September 30, 2018   September 30, 2017
AVERAGE AVERAGE
BALANCE INTEREST (1) RATE (1) BALANCE INTEREST (1) RATE (1)
EARNING ASSETS
Loans (2) $ 1,650,128 $ 20,623 4.96 % $ 1,517,589 $ 17,952 4.69 %
Taxable securities 200,765 1,226 2.42 215,490 1,271 2.34
Tax-exempt securities (2) 198,683 1,842 3.68 173,113 1,887 4.32
Equity securities 11,594 167 5.71 10,474 136 5.15
Federal funds sold and other   33,936     178 2.08   38,815     126 1.29
Total earning assets 2,095,106 24,036 4.55 1,955,481 21,372 4.34
Nonearning assets   159,943   162,689
Total assets $ 2,255,049 $ 2,118,170
INTEREST-BEARING LIABILITIES
Time deposits $ 293,719 $ 1,091 1.47 % $ 242,654 $ 680 1.11 %
Savings deposits 463,859 293 0.25 525,919 189 0.14
Demand deposits 523,433 858 0.65 406,123 313 0.31
Short term borrowings 278,884 1,353 1.92 280,490 644 0.91
Long term borrowings   6,344     49 3.06   9,333     50 2.13
Total interest-bearing liabilities $ 1,566,239 3,644 0.92 $ 1,464,519 1,876 0.51

NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY

Demand deposits 424,936 405,959
Other liabilities 13,371 13,849
Stockholders' equity   250,503   233,843

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$ 2,255,049     $ 2,118,170    
Net interest income and interest rate spread $ 20,392   3.63 % $ 19,496   3.83 %
Net interest margin 3.86 % 3.96 %

(1)

 

Interest and yields are calculated on a tax-equivalent basis where applicable.

(2)

For 2018, adjustments of $92 thousand and $381 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2017, adjustments of $166 thousand and $655 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 21% for 2018 and 35% for 2017, less disallowances.

 
   
Nine Months Ended Nine Months Ended
September 30, 2018   September 30, 2017
AVERAGE     AVERAGE    
BALANCE INTEREST (1) RATE (1) BALANCE INTEREST (1) RATE (1)
EARNING ASSETS
Loans (2) $1,607,753 $58,768 4.89% $1,475,807 $52,162 4.73%
Taxable securities 203,213 3,687 2.43 214,552 3,654 2.28
Tax-exempt securities 191,627 5,259 3.67 163,539 5,317 4.35
Equity securities (2) 11,234 467 5.56 10,207 374 4.90
Federal funds sold and other 35,499   490 1.85 35,148   271 1.03
Total earning assets 2,049,326 68,671 4.48 1,899,253 61,778 4.35
Nonearning assets 157,053 157,547
Total assets $2,206,379 $2,056,800
INTEREST-BEARING LIABILITIES
Time deposits $283,018 $2,861 1.35% $237,695 $1,833 1.03%
Savings deposits 474,474 731 0.21 524,154 542 0.14
Demand deposits 481,709 1,784 0.50 396,791 838 0.28
Short term borrowings 286,689 3,374 1.57 267,217 1,472 0.74
Long term borrowings 6,626   142 2.87 10,432   179 2.29
Total interest-bearing liabilities $1,532,516 8,892 0.78 $1,436,289 4,864 0.45

NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY

Demand deposits $414,450 $382,963
Other liabilities 13,722 13,052
Stockholders' equity 245,691 224,496

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$2,206,379     $2,056,800    
Net interest income and interest rate spread $59,779   3.70% $56,914   3.90%
Net interest margin 3.90% 4.01%

(1)

 

Interest and yields are calculated on a tax-equivalent basis where applicable.

(2)

For 2018, adjustments of $265 thousand and $1.1 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2017, adjustments of $491 thousand and $1.8 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 21% for 2018 and 35% for 2017, less disallowances.

 

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

Source: Farmers National Banc Corp.

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