- 124 consecutive quarters of profitability
- Net income per diluted share for three months ended December 31,
2013 was $0.12, compared to $0.09 for the third quarter, 2013.
- Efficiency ratio for the fourth quarter improved to 67.96%,
compared to 72.48% for the same quarter in 2012
- Loans increased 7.5% since December 31, 2012
- Non-performing assets to total assets remain at low levels, 0.81%
at December 31, 2013
- Announces expansion to Rocky River, Ohio
CANFIELD, Ohio--(BUSINESS WIRE)--
Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported
financial results for the three and twelve months ended December 31,
2013.
Net income for the three months ended December 31, 2013 was $2.3
million, or $0.12 per diluted share compared to $2.6 million, or $0.14
per diluted share for the fourth quarter ended December 31, 2012. Net
income for the year ended December 31, 2013 was $7.8 million, or $0.41
per diluted share compared to $9.9 million, or $0.53 per diluted share
for 2012. During the 2013 third quarter, the Company recorded charges of
$1.3 million related to severance costs for terminated employees.
Excluding these severance expenses, net income for 2013 would have been
$8.6 million, or $0.46 per share.
Kevin J. Helmick, President and CEO, stated, “Excluding security gains
of $586 thousand in the fourth quarter of 2012 and compared to $8
thousand in the fourth quarter of 2013, net income for the current
quarter increased $40 thousand. Our efficiency ratio improved to 67.96%,
in the 2013 fourth quarter, representing the lowest quarter in the past
two years. The improvement in our efficiency ratio is consistent with
our strategy to increase fee income and decrease noninterest expenses.
We are also pleased to report that net loans increased 7.5% during 2013.
Most of this growth came from our commercial real estate, residential
real estate and indirect loan portfolios.”
Northeast Ohio Expansion
Farmers is excited to announce it is establishing a branch office in
Rocky River in the previously-acquired NAI building. Farmers will take
its unique brand of business banking into the Greater Cleveland market
utilizing a model similar to the Farmers’ Canton office. The expansion
kicked-off with the hiring of two key associates, David E. Simko, Vice
President/Commercial Banking and Ted Grabowski, Vice President/Private
Client Relationship Manager. Farmers will also hire a Financial Advisor,
Mortgage Loan Consultant and Universal Banker for the office located at
20325 Center Ridge Road.
2013 Financial Highlights
- Loan growth
Total loans were $630.7 million at year-end
2013, compared to $586.6 million at year-end 2012. This represents an
increase of 7.52%. The improvement in the local economy is the main
factor driving the increase in loans. Most of the increase in loans
has occurred in the commercial real estate, residential real estate
and indirect loan portfolios. Loans comprised 56.2% of the Bank's
average earning assets in 2013, compared to 54.8% in 2012.
- Loan quality
Net charge-offs decreased from $2.9 million
for the year ended December 31, 2012 to $1.4 million in 2013. Most of
the improvement occurred in the commercial and commercial real estate
loan portfolios. Non-performing assets to total assets remain at a
safe level, currently at 0.81%. Early stage delinquencies also remain
at low levels, down $58 thousand from December 31, 2012 to $3.6
million at December 31, 2013.
- Net interest margin
The net interest margin for the
quarter ended December 31, 2013 was 3.53%, an improvement of 6 basis
points over the 3.47% reported for the quarter ended September 30,
2013. Asset yields increased 6 basis points, while the cost of
interest-bearing liabilities remain unchanged.
- Cost saving initiatives
The Company underwent a cost
reduction program in 2013 that included the closure of two retail
branch locations and the elimination of several full time positions.
In addition to the cost savings initiatives, the Company also made
adjustments to the fee structure for its retail and commercial banking
products and services. As a result of these actions, the Company’s
efficiency ratio improved to 67.96% for the quarter ended December 31,
2013, which compares favorably to the 72.48% reported in the fourth
quarter in 2012.
2014 Outlook
Mr. Helmick continued: “While the economy continues to slowly improve,
we are excited about the opportunities to sustain the momentum our
company has seen in loan growth while maintaining our consistent asset
quality levels. We also continue our discipline of closely monitoring
levels of non-interest income while growing non-interest revenues.”
Farmers National Banc Corp. is the bank holding company for the Farmers
National Bank of Canfield, Farmers National Insurance, LLC, Farmers
Trust Company and National Associates, Inc. Farmers’ operates eighteen
banking offices throughout Mahoning, Trumbull, Columbiana and Stark
Counties and two trust offices located in Boardman and Howland. Farmers
offers a wide range of banking and investment services to companies and
individuals, and maintains a website at www.farmersbankgroup.com.
Non-GAAP Disclosure
This press release includes disclosures of Farmers tangible common
equity ratio and pre-tax, pre-provision income and pre-tax,
pre-provision income, excluding gains (losses) on sales of securities,
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. 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, 2012, which
has been filed with the Securities and Exchange Commission and is
available on Farmers’ website (www.farmersbankgroup.com)
and on the Securities and Exchange Commission’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 |
| | 2013 |
| 2013 |
| 2013 |
| 2013 |
| 2012 |
| 2013 |
| 2012 |
| Change |
|
Total interest income
| | $10,298 | | $10,122 | | $10,273 | | $10,266 | | $10,691 | | $40,959 | | $43,110 | |
-5.0%
|
|
Total interest expense
| |
1,257
|
|
1,274
|
|
1,234
|
|
1,298
|
|
1,435
|
|
5,063
|
|
6,212
|
|
-18.5%
|
| Net interest income | |
9,041
| |
8,848
| |
9,039
| |
8,968
| |
9,256
| |
35,896
| |
36,898
| |
-2.7%
|
|
Provision for loan losses
| |
525
| |
340
| |
170
| |
255
| |
0
| |
1,290
| |
725
| |
77.9%
|
|
Other income
| |
3,641
| |
4,173
| |
3,225
| |
2,875
| |
3,671
| |
13,914
| |
12,578
| |
10.6%
|
|
Other expense
| |
9,221
|
|
10,926
|
|
9,822
|
|
9,088
|
|
9,465
|
|
39,057
|
|
35,764
|
|
9.2%
|
| Income before income taxes | |
2,936
| |
1,755
| |
2,272
| |
2,500
| |
3,462
| |
9,463
| |
12,987
| |
-27.1%
|
|
Income taxes
| |
641
|
|
143
|
|
404
|
|
495
|
|
825
|
|
1,683
|
|
3,055
|
|
-44.9%
|
| Net income | | $2,295 |
| $1,612 |
| $1,868 |
| $2,005 |
| $2,637 |
| $7,780 |
| $9,932 |
|
-21.7%
|
| | | | | | | | | | | | | | | |
|
|
Average shares outstanding
| |
18,776
| |
18,776
| |
18,747
| |
18,795
| |
18,799
| |
18,773
| |
18,792
| | |
|
Pre-tax pre-provision income
| | $3,461 | | $2,095 | | $2,442 | | $2,755 | | $3,462 | | $10,753 | | $13,712 | | |
|
Basic and diluted earnings per share
| |
0.12
| |
0.09
| |
0.10
| |
0.11
| |
0.14
| |
0.41
| |
0.53
| | |
|
Cash dividends
| |
563
| |
563
| |
557
| |
564
| |
1,128
| |
2,248
| |
3,382
| | |
|
Cash dividends per share
| |
0.03
| |
0.03
| |
0.03
| |
0.03
| |
0.06
| |
0.12
| |
0.18
| | |
| Performance Ratios | | | | | | | | | | | | | | | | |
|
Net Interest Margin (Annualized)
| |
3.53%
| |
3.47%
| |
3.63%
| |
3.68%
| |
3.67%
| |
3.58%
| |
3.76%
| | |
|
Efficiency Ratio (Tax equivalent basis)
| |
67.96%
| |
81.64%
| |
77.16%
| |
72.57%
| |
72.48%
| |
74.82%
| |
69.94%
| | |
|
Return on Average Assets (Annualized)
| |
0.78%
| |
0.56%
| |
0.66%
| |
0.72%
| |
0.92%
| |
0.68%
| |
0.89%
| | |
|
Return on Average Equity (Annualized)
| |
7.23%
| |
5.60%
| |
6.21%
| |
6.70%
| |
8.65%
| |
6.66%
| |
8.42%
| | |
|
Dividends to Net Income
| |
24.53%
| |
34.93%
| |
29.82%
| |
28.13%
| |
42.78%
| |
28.89%
| |
34.05%
| | |
| | | | | | | | | | | | | | | |
|
| Consolidated Statements of Financial Condition |
| | Dec 31, | | Sept 30, | | June 30, | | March 31, | | Dec 31, | | | | | | |
| | 2013 | | 2013 | | 2013 | | 2013 | | 2012 | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
|
Cash and cash equivalents
| | $27,513 | | $40,303 | | $26,587 | | $57,312 | | $37,759 | | | | | | |
|
Securities available for sale
| |
422,985
| |
438,127
| |
443,833
| |
439,540
| |
464,088
| | | | | | |
| | | | | | | | | | | | | | | |
|
|
Loans held for sale
| |
158
| |
1,016
| |
4,612
| |
4,330
| |
3,624
| | | | | | |
|
Loans
| |
630,684
| |
611,349
| |
596,838
| |
592,520
| |
586,592
| | | | | | |
|
Less allowance for loan losses
| |
7,568
|
|
7,369
|
|
7,590
|
|
7,508
|
|
7,629
| | | | | | |
|
Net Loans
| |
623,116
|
|
603,980
|
|
589,248
|
|
585,012
|
|
578,963
| | | | | | |
| | | | | | | | | | | | | | | |
|
|
Other assets
| |
63,554
|
|
64,693
|
|
59,209
|
|
56,905
|
|
55,261
| | | | | | |
| Total Assets | | $1,137,326 |
| $1,148,119 |
| $1,123,489 |
| $1,143,099 |
| $1,139,695 | | | | | | |
| | | | | | | | | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | |
|
Deposits
| | $915,216 | | $903,410 | | $901,886 | | $915,855 | | $919,009 | | | | | | |
|
Other interest-bearing liabilities
| |
101,439
| |
118,322
| |
101,589
| |
101,659
| |
90,309
| | | | | | |
|
Other liabilities
| |
7,664
|
|
13,863
|
|
5,698
|
|
5,009
|
|
9,585
| | | | | | |
|
Total liabilities
| |
1,024,319
| |
1,035,595
| |
1,009,173
| |
1,022,523
| |
1,018,903
| | | | | | |
|
Stockholders' Equity
| |
113,007
|
|
112,524
|
|
114,316
|
|
120,576
|
|
120,792
| | | | | | |
| Total Liabilities | | | | | | | | | | | | | | | | |
| and Stockholders' Equity | | $1,137,326 |
| $1,148,119 |
| $1,123,489 |
| $1,143,099 |
| $1,139,695 | | | | | | |
| | | | | | | | | | | | | | | |
|
|
Period-end shares outstanding
| |
18,776
| |
18,776
| |
18,547
| |
18,795
| |
18,795
| | | | | | |
|
Book value per share
| | $6.02 | | $5.99 | | $6.16 | | $6.42 | | $6.43 | | | | | | |
|
Tangible book value per share
| |
5.47
| |
5.43
| |
5.85
| |
6.10
| |
6.11
| | | | | | |
| Capital and Liquidity | | | | | | | | | | | | | | | | |
|
Total Capital to Risk Weighted Assets (a)
| |
16.23%
| |
16.28%
| |
17.25%
| |
17.48%
| |
17.35%
| | | | | | |
|
Tier 1 Capital to Risk Weighted Assets (a)
| |
15.16%
| |
15.22%
| |
16.08%
| |
16.31%
| |
16.18%
| | | | | | |
|
Tier 1 Capital to Average Assets (a)
| |
9.36%
| |
9.29%
| |
9.64%
| |
9.77%
| |
9.54%
| | | | | | |
|
Equity to Asset Ratio
| |
9.94%
| |
9.80%
| |
10.18%
| |
10.55%
| |
10.60%
| | | | | | |
|
Tangible Common Equity Ratio
| |
9.11%
| |
8.96%
| |
9.71%
| |
10.08%
| |
10.12%
| | | | | | |
|
Net Loans to Assets
| |
54.79%
| |
52.61%
| |
52.45%
| |
51.18%
| |
50.80%
| | | | | | |
|
Loans to Deposits
| |
68.91%
| |
67.67%
| |
66.18%
| |
64.70%
| |
63.83%
| | | | | | |
| Asset Quality | | | | | | | | | | | | | | | | |
|
Non-performing loans (b)
| | $9,091 | | $9,124 | | $8,079 | | $7,368 | | $8,202 | | | | | | |
|
Other Real Estate Owned
| |
171
| |
208
| |
295
| |
410
| |
334
| | | | | | |
|
Non-performing assets
| |
9,262
| |
9,332
| |
8,374
| |
7,778
| |
8,536
| | | | | | |
|
Loans 30 - 89 days delinquent (b)
| |
3,600
| |
2,348
| |
2,497
| |
3,536
| |
3,658
| | | | | | |
|
Charged-off loans
| |
620
| |
915
| |
456
| |
663
| |
1,377
| | | | | | |
|
Recoveries
| |
294
| |
354
| |
367
| |
287
| |
382
| | | | | | |
|
Net Charge-offs
| |
326
| |
561
| |
89
| |
376
| |
995
| | | | | | |
|
Annualized Net Charge-offs to
| | | | | | | | | | | | | | | | |
|
Average Net Loans Outstanding
| |
0.22%
| |
0.38%
| |
0.06%
| |
0.26%
| |
0.71%
| | | | | | |
|
Allowance for Loan Losses to Total Loans
| |
1.20%
| |
1.21%
| |
1.27%
| |
1.27%
| |
1.30%
| | | | | | |
|
Non-performing Loans to Total Loans
| |
1.44%
| |
1.49%
| |
1.35%
| |
1.24%
| |
1.40%
| | | | | | |
|
Allowance to Non-performing Loans
| |
83.25%
| |
80.77%
| |
93.95%
| |
101.90%
| |
93.01%
| | | | | | |
|
Non-performing Assets to Total Assets
| |
0.81%
| |
0.81%
| |
0.75%
| |
0.68%
| |
0.75%
| | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Dec 31, 2013 ratio is estimated
|
|
(b) Amounts reported are unpaid principal balance
|
| | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | |
|
| Reconciliation of Common Stockholders' Equity to Tangible Common
Equity |
| | Dec 31, | | Sept 30, | | June 30, | | March 31, | | Dec 31, | | | | | | |
| | 2013 | | 2013 | | 2013 | | 2013 | | 2012 | | | | | | |
|
Stockholders' Equity
| | $113,007 | | $112,524 | | $114,316 | | $120,576 | | $120,792 | | | | | | |
|
Less Goodwill and other intangibles
| |
10,343
|
|
10,546
|
|
5,836
|
|
5,934
|
|
6,032
| | | | | | |
|
Tangible Common Equity
| | $102,664 |
| $101,978 |
| $108,480 |
| $114,642 |
| $114,760 | | | | | | |
| | | | | | | | | | | | | | | |
|
| Reconciliation of Total Assets to Tangible Assets |
| | Dec 31, | | Sept 30, | | June 30, | | March 31, | | Dec 31, | | | | | | |
| | 2013 | | 2013 | | 2013 | | 2013 | | 2012 | | | | | | |
|
Total Assets
| | $1,137,326 | | $1,148,119 | | $1,123,489 | | $1,143,099 | | $1,139,695 | | | | | | |
|
Less Goodwill and other intangibles
| |
10,343
|
|
10,546
|
|
5,836
|
|
5,934
|
|
6,032
| | | | | | |
|
Tangible Assets
| | $1,126,983 |
| $1,137,573 |
| $1,117,653 |
| $1,137,165 |
| $1,133,663 | | | | | | |
| | | | | | | | | | | | | | | |
|
| Reconciliation of Income Before Taxes to Pre-Tax, Pre-Provision
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, | | |
| | 2013 | | 2013 | | 2013 | | 2013 | | 2012 | | 2013 | | 2012 | | |
|
Income before income taxes
| | $2,936 | | $1,755 | | $2,272 | | $2,500 | | $3,462 | | $9,463 | | $12,987 | | |
|
Provision for loan losses
| |
525
|
|
340
|
|
170
|
|
255
|
|
0
|
|
1,290
|
|
725
| | |
|
Pre-tax, pre-provision income
| | $3,461 |
| $2,095 |
| $2,442 |
| $2,755 |
| $3,462 |
| $10,753 |
| $13,712 | | |
Farmers National Banc Corp.
Kevin J. Helmick, President and CEO,
330-533-3341
Email: exec@farmersbankgroup.com
Source: Farmers National Banc Corp.