- 14% organic loan growth since June 30, 2015
- 134 consecutive quarters of profitability
- Net income for quarter ended June 30, 2016 was $5.0 million
compared to $4.8 million for the linked quarter
- Annualized return on assets was 1.05% for the first six months of
2016
- Noninterest income increased 30.1% compared to same quarter in 2015
- Non-performing assets to total assets remain at low levels, 0.46%
at June 30, 2016
CANFIELD, Ohio--(BUSINESS WIRE)--
Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported
financial results for the three and six months ended June 30, 2016.
Net income for the three months ended June 30, 2016 was $5.0 million, or
$0.19 per diluted share, which compares to $812 thousand, or $0.04 per
diluted share, for the three months ended June 30, 2015. Excluding
expenses related to acquisition activities, net income for the two
periods was $5.2 million or $0.19 and $2.4 million or $0.12,
respectively. In comparing the first quarter’s results to the most
recent previous quarter, net income of $5.0 million increased 4.6%
compared to $4.8 million for the quarter ended March 31, 2016.
Annualized return on average assets and return on average equity were
1.06% and 9.69%, respectively, for the three month period ending June
30, 2016, compared to 1.03% and 9.41% for the linked quarter. Excluding
expenses related to acquisition activities, the annualized return on
average assets and return on average equity for the quarter ended June
30, 2016 were 1.10% and 10.02% compared to 0.82% and 8.33% for the same
quarter in 2015.
Net income for the six months ended June 30, 2016 was $9.8 million, or
$0.36 per diluted share, compared to $3.0 million or $0.16 per diluted
share for same six month period in 2015. Excluding expenses related to
acquisition activities, net income for the two six month periods was
$10.2 million, or $0.38 per share and $4.7 million or $0.25 per share,
respectively, and the annualized return on average assets and return on
average equity were 1.08% and 9.98% in 2016, compared to 0.78% and 6.81%
in 2015, respectively.
During 2015, Farmers completed the mergers of National Bancshares
Corporation (NBOH) the holding company for the First National Bank of
Orrville, and Tri-State 1stBanc Inc. (Tri-State), the
holding company for 1st National Community Bank of East Liverpool. These
transactions resulted in the addition of $676 million in assets and 17
full-service branches in Northeastern Ohio and 1 in Beaver County in
Pennsylvania.
On June 1, 2016 Farmers completed the acquisition of Bowers Insurance
Agency, Inc. (The Bowers Group). The Bowers Group will continue to
operate under its name from its current location in Cortland, Ohio, but
is expected to merge with Farmers National Insurance, LLC, Farmers’
wholly-owned insurance agency subsidiary. The strategic acquisition is
expected to enhance Farmers’ current company and product line up, and
offer broader options of commercial, farm, home, and auto
property/casualty insurance carriers to meet all the needs of all
Farmers’ customers.
Kevin J. Helmick, President and CEO, stated, “We are pleased to report
that our earnings have increased through the successful integration of
both bank mergers, and we are encouraged by the early results of our
merger with The Bowers Group. We also continue to be encouraged by our
organic loan growth, which has increased 9.5% on an annualized basis
during the past six months, and improvements in our level of noninterest
income.”
2016 Second Quarter Financial Highlights
- Loan growth
Total loans were $1.36 billion at June 30,
2016, compared to $1.30 billion at December 31, 2015, representing an
annualized growth of 9.5%. 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. Most of the
increase in loans has occurred in the commercial real estate,
commercial and industrial, residential real estate and consumer loan
portfolios. Loans now comprise 76.3% of the Bank's first quarter
average earning assets at June 30, 2016, an improvement compared to
65.9% at the same time in 2015. This improvement along with the growth
in earning assets organically and through merger activity has resulted
in an 80% increase in tax equated loan income from the second quarter
of 2015 to the same quarter in 2016.
- Loan quality
Non-performing assets to total assets remain
at a safe level, currently at 0.46%. Early stage delinquencies also
continue to remain at low levels, at $11.4 million, or 0.84% of total
loans, at June 30, 2016. Net charge-offs for the current quarter were
$660 thousand, down $627 thousand compared to $1.3 million in the same
quarter in 2015. It is important to note that annualized net
charge-offs as a percentage of average net loans outstanding decreased
from 0.71% for the 3 months ended June 30, 2015 to 0.20% for the same
period in 2016. 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 June 30, 2016 was 4.06%, a 40 basis points increase from
the quarter ended June 30, 2015. In comparing the second quarter of
2016 to the same period in 2015, asset yields increased 28 basis
points, while the cost of interest-bearing liabilities decreased 13
basis points. Another key contributor to the increase in net interest
margin was the shift in the mix of earning assets from securities to
loans as explained previously. The increased margin is also partially
due to the additional accretion as a result of the discounted loan
portfolios acquired in the NBOH and Tri-State mergers. Excluding the
amortization of premium on time deposits and FHLB advances along with
the accretion of the acquired loan discount, the net interest margin
would have been 9 basis points lower or 3.97% for the quarter ended
June 30, 2016.
- Noninterest income
Noninterest income increased 30.1% to
$5.7 million for the quarter ended June 30, 2016 compared to $4.4
million in 2015. Deposit account income increased $315 thousand, or
47%, in the current year’s quarter compared to the same quarter in
2015 and gains on the sale of mortgage loans increased $384 thousand,
or 246%, in comparing the same two quarters. Investment commissions
increased $100 thousand or 39% and insurance agency commissions
increased $175 thousand or 148%. Debit card interchange fees also
increased $593 thousand or 86% in comparing the second quarter of 2015
to the same quarter in 2016. The Company also recognized a $262
thousand gain from the sale of land during the second quarter of 2016,
compared to none in the same quarter in 2015.
- Noninterest expenses
Farmers has remained committed to
managing the level of noninterest expenses. Total noninterest expenses
for the second quarter of 2016 were $14.8 million. Excluding expenses
related to acquisition activities of $224 thousand, noninterest
expenses were $14.6 million. Excluding expenses related to acquisition
activities, annualized noninterest expenses measured as a percentage
of quarterly average assets decreased from 3.39% in the second quarter
of 2015 to 3.07% in the second quarter of 2016. Annualized salaries
and employee benefits as a percent of average assets also decreased
from 1.89% to 1.63% in comparing the second quarter of 2015 and 2016.
- Efficiency ratio
The efficiency ratio for the quarter
ended June 30 2016 improved to 62.6% compared to 81.03% for the same
quarter in 2015. Excluding expenses related to acquisition activities,
the efficiency ratio for the same periods was 61.6% and 69.9%,
respectively. The main factors leading to the improvement in the
efficiency ratio was the increase in net interest income and
noninterest income, along with the stabilized level of noninterest
expenses relative to average assets as explained in the preceding
paragraphs.
2016 Outlook
Mr. Helmick added, “We are encouraged by the promising start to 2016 in
our financial results. We will continue to focus our energy on the
seamless integration of the newly acquired companies and customers. 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 $1.9 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 38 banking locations in Mahoning, Trumbull,
Columbiana, Stark, Wayne, Medina and Cuyahoga Counties in Ohio and
Beaver County in Pennsylvania, Farmers Trust Company, which operates
three 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 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, 2015, as
amended, 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 Six Months Ended |
| | June 30, | | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | June 30, | | June 30, | | Percent |
| | 2016 |
| 2016 |
| 2015 |
| 2015 |
| 2015 |
| 2016 |
| 2015 |
| Change |
|
Total interest income
| |
$
|
17,950
| | |
$
|
17,747
| | |
$
|
17,481
| | |
$
|
15,594
| | |
$
|
10,753
| | |
$
|
35,697
| | |
$
|
20,752
| | |
72.0
|
%
|
|
Total interest expense
| |
|
1,061
|
|
|
|
1,000
|
|
|
|
1,023
|
|
|
|
1,056
|
|
|
|
1,004
|
|
|
|
2,061
|
|
|
|
2,011
|
|
|
2.5
|
%
|
| Net interest income | | |
16,889
| | | |
16,747
| | | |
16,458
| | | |
14,538
| | | |
9,749
| | | |
33,636
| | | |
18,741
| | |
79.5
|
%
|
|
Provision for loan losses
| | |
990
| | | |
780
| | | |
990
| | | |
1,220
| | | |
850
| | | |
1,770
| | | |
1,300
| | |
36.2
|
%
|
|
Other income
| | |
5,737
| | | |
4,946
| | | |
5,175
| | | |
4,685
| | | |
4,409
| | | |
10,683
| | | |
8,446
| | |
26.5
|
%
|
|
Merger related costs
| | |
224
| | | |
289
| | | |
1,736
| | | |
2,499
| | | |
1,912
| | | |
513
| | | |
2,157
| | |
-76.2
|
%
|
|
Other expense
| |
|
14,559
|
|
|
|
14,155
|
|
|
|
14,884
|
|
|
|
13,022
|
|
|
|
10,175
|
|
|
|
28,714
|
|
|
|
19,681
|
|
|
45.9
|
%
|
| Income before income taxes | | |
6,853
| | | |
6,469
| | | |
4,023
| | | |
2,482
| | | |
1,221
| | | |
13,322
| | | |
4,049
| | |
229.0
|
%
|
|
Income taxes
| |
|
1,833
|
|
|
|
1,671
|
|
|
|
848
|
|
|
|
625
|
|
|
|
409
|
|
|
|
3,504
|
|
|
|
1,026
|
|
|
241.5
|
%
|
| Net income | |
$
|
5,020
|
|
|
$
|
4,798
|
|
|
$
|
3,175
|
|
|
$
|
1,857
|
|
|
$
|
812
|
|
|
$
|
9,818
|
|
|
$
|
3,023
|
|
|
224.8
|
%
|
| | | | | | | | | | | | | | | |
|
|
Average shares outstanding
| | |
26,965
| | | |
26,937
| | | |
27,027
| | | |
25,672
| | | |
19,366
| | | |
26,951
| | | |
18,890
| | | |
|
Basic and diluted earnings per share
| | |
0.19
| | | |
0.18
| | | |
0.12
| | | |
0.07
| | | |
0.04
| | | |
0.36
| | | |
0.16
| | | |
|
Cash dividends
| | |
1,083
| | | |
1,077
| | | |
809
| | | |
770
| | | |
552
| | | |
2,160
| | | |
1,104
| | | |
|
Cash dividends per share
| | |
0.04
| | | |
0.04
| | | |
0.03
| | | |
0.03
| | | |
0.03
| | | |
0.08
| | | |
0.06
| | | |
| Performance Ratios | | | | | | | | | | | | | | | | |
|
Net Interest Margin (Annualized)
| | |
4.06
|
%
| | |
4.07
|
%
| | |
3.99
|
%
| | |
3.84
|
%
| | |
3.66
|
%
| | |
4.07
|
%
| | |
3.65
|
%
| | |
|
Efficiency Ratio (Tax equivalent basis)
| | |
62.60
|
%
| | |
62.65
|
%
| | |
73.07
|
%
| | |
76.55
|
%
| | |
81.03
|
%
| | |
62.63
|
%
| | |
76.08
|
%
| | |
|
Return on Average Assets (Annualized)
| | |
1.06
|
%
| | |
1.03
|
%
| | |
0.68
|
%
| | |
0.43
|
%
| | |
0.27
|
%
| | |
1.05
|
%
| | |
0.52
|
%
| | |
|
Return on Average Equity (Annualized)
| | |
9.69
|
%
| | |
9.41
|
%
| | |
6.51
|
%
| | |
3.97
|
%
| | |
2.74
|
%
| | |
9.61
|
%
| | |
4.53
|
%
| | |
|
Dividends to Net Income
| | |
21.57
|
%
| | |
22.45
|
%
| | |
25.48
|
%
| | |
41.46
|
%
| | |
67.98
|
%
| | |
22.00
|
%
| | |
36.52
|
%
| | |
| | | | | | | | | | | | | | | |
|
| Consolidated Statements of Financial Condition | | | | | | | | | | | | | | |
| | June 30, | | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | | | | | |
| | 2016 |
| 2016 |
| 2015 |
| 2015 |
| 2015 | | | | | | |
| Assets | | | | | | | | | | | | | | | | |
|
Cash and cash equivalents
| |
$
|
62,184
| | |
$
|
34,619
| | |
$
|
56,014
| | |
$
|
34,344
| | |
$
|
37,028
| | | | | | | |
|
Securities available for sale
| | |
378,432
| | | |
387,093
| | | |
394,312
| | | |
379,138
| | | |
386,319
| | | | | | | |
| | | | | | | | | | | | | | | |
|
|
Loans held for sale
| | |
1,737
| | | |
488
| | | |
1,769
| | | |
566
| | | |
399
| | | | | | | |
|
Loans
| | |
1,358,484
| | | |
1,315,501
| | | |
1,296,865
| | | |
1,183,016
| | | |
1,134,838
| | | | | | | |
|
Less allowance for loan losses
| |
|
9,720
|
|
|
|
9,390
|
|
|
|
8,978
|
|
|
|
8,294
|
|
|
|
7,286
|
| | | | | | |
|
Net Loans
| |
|
1,348,764
|
|
|
|
1,306,111
|
|
|
|
1,287,887
|
|
|
|
1,174,722
|
|
|
|
1,127,552
|
| | | | | | |
| | | | | | | | | | | | | | | |
|
|
Other assets
| |
|
134,002
|
|
|
|
131,996
|
|
|
|
129,920
|
|
|
|
119,027
|
|
|
|
121,105
|
| | | | | | |
| Total Assets | |
$
|
1,925,119
|
|
|
$
|
1,860,307
|
|
|
$
|
1,869,902
|
|
|
$
|
1,707,797
|
|
|
$
|
1,672,403
|
| | | | | | |
| | | | | | | | | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | |
|
Deposits
| |
$
|
1,447,442
| | |
$
|
1,445,882
| | |
$
|
1,409,047
| | |
$
|
1,330,249
| | |
$
|
1,320,569
| | | | | | | |
|
Other interest-bearing liabilities
| | |
247,934
| | | |
192,078
| | | |
247,985
| | | |
179,701
| | | |
155,591
| | | | | | | |
|
Other liabilities
| |
|
17,252
|
|
|
|
18,365
|
|
|
|
14,823
|
|
|
|
11,696
|
|
|
|
13,668
|
| | | | | | |
|
Total liabilities
| | |
1,712,285
| | | |
1,656,325
| | | |
1,671,855
| | | |
1,521,646
| | | |
1,489,828
| | | | | | | |
|
Stockholders' Equity
| |
|
212,491
|
|
|
|
203,982
|
|
|
|
198,047
|
|
|
|
186,151
|
|
|
|
182,575
|
| | | | | | |
Total Liabilities and Stockholders' Equity | |
$
|
1,925,119
|
|
|
$
|
1,860,307
|
|
|
$
|
1,869,902
|
|
|
$
|
1,707,797
|
|
|
$
|
1,672,403
|
| | | | | | |
| | | | | | | | | | | | | | | |
|
|
Period-end shares outstanding
| | |
27,048
| | | |
26,924
| | | |
26,944
| | | |
25,674
| | | |
25,672
| | | | | | | |
|
Book value per share
| |
$
|
7.86
| | |
$
|
7.58
| | |
$
|
7.35
| | |
$
|
7.25
| | |
$
|
7.11
| | | | | | | |
|
Tangible book value per share
| | |
6.17
| | | |
5.99
| | | |
5.77
| | | |
5.72
| | | |
5.57
| | | | | | | |
| Capital and Liquidity | | | | | | | | | | | | | | | | |
|
Common Equity Tier 1 Capital Ratio (a)
| | |
11.60
|
%
| | |
11.82
|
%
| | |
11.59
|
%
| | |
12.12
|
%
| | |
12.61
|
%
| | | | | | |
|
Total Risk Based Capital Ratio (a)
| | |
12.26
|
%
| | |
12.63
|
%
| | |
12.37
|
%
| | |
12.77
|
%
| | |
13.20
|
%
| | | | | | |
|
Tier 1 Risk Based Capital Ratio (a)
| | |
11.60
|
%
| | |
11.97
|
%
| | |
11.74
|
%
| | |
12.12
|
%
| | |
12.61
|
%
| | | | | | |
|
Tier 1 Leverage Ratio (a)
| | |
9.20
|
%
| | |
9.34
|
%
| | |
9.21
|
%
| | |
9.27
|
%
| | |
9.27
|
%
| | | | | | |
|
Equity to Asset Ratio
| | |
11.04
|
%
| | |
10.96
|
%
| | |
10.59
|
%
| | |
10.90
|
%
| | |
10.92
|
%
| | | | | | |
|
Tangible Common Equity Ratio
| | |
8.87
|
%
| | |
8.88
|
%
| | |
8.50
|
%
| | |
8.80
|
%
| | |
8.76
|
%
| | | | | | |
|
Net Loans to Assets
| | |
70.06
|
%
| | |
70.21
|
%
| | |
68.87
|
%
| | |
68.79
|
%
| | |
67.42
|
%
| | | | | | |
|
Loans to Deposits
| | |
93.85
|
%
| | |
90.98
|
%
| | |
92.04
|
%
| | |
88.93
|
%
| | |
85.94
|
%
| | | | | | |
| Asset Quality | | | | | | | | | | | | | | | | |
|
Non-performing loans
| |
$
|
8,360
| | |
$
|
9,710
| | |
$
|
10,445
| | |
$
|
9,620
| | |
$
|
7,984
| | | | | | | |
|
Other Real Estate Owned
| | |
572
| | | |
555
| | | |
942
| | | |
1,052
| | | |
1,128
| | | | | | | |
|
Non-performing assets
| | |
8,932
| | | |
10,265
| | | |
11,387
| | | |
10,672
| | | |
9,112
| | | | | | | |
|
Loans 30 - 89 days delinquent
| | |
11,371
| | | |
10,072
| | | |
9,130
| | | |
6,974
| | | |
7,146
| | | | | | | |
|
Charged-off loans
| | |
820
| | | |
578
| | | |
447
| | | |
631
| | | |
1,496
| | | | | | | |
|
Recoveries
| | |
160
| | | |
210
| | | |
151
| | | |
420
| | | |
209
| | | | | | | |
|
Net Charge-offs
| | |
660
| | | |
368
| | | |
296
| | | |
211
| | | |
1,287
| | | | | | | |
|
Annualized Net Charge-offs to
| | | | | | | | | | | | | | | | |
|
Average Net Loans Outstanding
| | |
0.20
|
%
| | |
0.11
|
%
| | |
0.09
|
%
| | |
0.10
|
%
| | |
0.71
|
%
| | | | | | |
|
Allowance for Loan Losses to Total Loans
| | |
0.72
|
%
| | |
0.71
|
%
| | |
0.69
|
%
| | |
0.70
|
%
| | |
0.64
|
%
| | | | | | |
|
Non-performing Loans to Total Loans
| | |
0.62
|
%
| | |
0.74
|
%
| | |
0.81
|
%
| | |
0.81
|
%
| | |
0.70
|
%
| | | | | | |
|
Allowance to Non-performing Loans
| | |
116.27
|
%
| | |
96.70
|
%
| | |
85.96
|
%
| | |
86.22
|
%
| | |
91.26
|
%
| | | | | | |
|
Non-performing Assets to Total Assets
| | |
0.46
|
%
| | |
0.55
|
%
| | |
0.61
|
%
| | |
0.62
|
%
| | |
0.54
|
%
| | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) June 30, 2016 ratio is estimated
|
|
|
|
| |
| |
| |
| |
| Reconciliation of Common Stockholders' Equity to Tangible Common
Equity |
|
| June 30, |
| March 31, |
| Dec. 31, | | Sept. 30, | | June 30, | | | | |
| | 2016 |
| 2016 |
| 2015 |
| 2015 |
| 2015 | | | | |
|
Stockholders' Equity
| |
$
|
212,491
| |
$
|
203,982
| |
$
|
198,047
| |
$
|
186,151
| |
$
|
182,575
| | | | |
|
Less Goodwill and other intangibles
| |
|
45,718
|
|
|
42,604
|
|
|
42,661
|
|
|
39,265
|
|
|
39,569
| | | | |
|
Tangible Common Equity
| |
$
|
166,773
|
|
$
|
161,378
|
|
$
|
155,386
|
|
$
|
146,886
|
|
$
|
143,006
| | | | |
| | | | | | | | | | | | | |
|
| Reconciliation of Total Assets to Tangible Assets |
| | June 30, | | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | | | |
| | 2016 |
| 2016 |
| 2015 |
| 2015 |
| 2015 | | | | |
|
Total Assets
| |
$
|
1,925,119
| |
$
|
1,860,307
| |
$
|
1,869,902
| |
$
|
1,707,797
| |
$
|
1,672,403
| | | | |
|
Less Goodwill and other intangibles
| |
|
45,718
|
|
|
42,604
|
|
|
42,661
|
|
|
39,265
|
|
|
39,569
| | | | |
|
Tangible Assets
| |
$
|
1,879,401
|
|
$
|
1,817,703
|
|
$
|
1,827,241
|
|
$
|
1,668,532
|
|
$
|
1,632,834
| | | | |
| | | | | | | | | | | | | |
|
| Reconciliation of Net Income, Excluding Costs Related to
Acquisition Activities | | For the Six Months
Ended |
| | For the Three Months Ended | |
| | June 30, | | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | June 30, | | June 30, |
| | 2016 |
| 2016 |
| 2015 |
| 2015 |
| 2015 |
| 2016 |
| 2015 |
|
Income before income taxes - Reported
| |
$
|
6,853
| |
$
|
6,469
| |
$
|
4,023
| |
$
|
2,482
| |
$
|
1,221
| |
$
|
13,322
| |
$
|
4,049
|
|
Acquisition Costs
| |
|
224
|
|
|
289
|
|
|
1,736
|
|
|
2,499
|
|
|
1,912
|
|
|
513
|
|
|
2,157
|
|
Income before income taxes - Adjusted
| | |
7,077
| | |
6,758
| | |
5,759
| | |
4,981
| | |
3,133
| | |
13,835
| | |
6,206
|
|
Income tax expense
| |
|
1,899
|
|
|
1,746
|
|
|
1,434
|
|
|
1,255
|
|
|
698
|
|
|
3,645
|
|
|
1,371
|
|
Net income - Adjusted
| |
$
|
5,178
|
|
$
|
5,012
|
|
$
|
4,325
|
|
$
|
3,726
|
|
$
|
2,435
|
|
$
|
10,190
|
|
$
|
4,835
|
| | | | | | | | | | | | | |
|
| | For the Three Months Ended | | | | |
| | June 30, | | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | | | |
| End of Period Loan Balances | | 2016 |
| 2016 |
| 2015 |
| 2015 |
| 2015 | | | | |
|
Commercial real estate
| |
$
|
503,095
| |
$
|
491,605
| |
$
|
492,430
| |
$
|
442,181
| |
$
|
427,028
| | | | |
|
Commercial
| | |
241,040
| | |
234,369
| | |
228,455
| | |
204,726
| | |
202,552
| | | | |
|
Residential real estate
| | |
419,174
| | |
406,039
| | |
392,849
| | |
360,586
| | |
319,820
| | | | |
|
Consumer
| |
|
192,232
|
|
|
180,791
|
|
|
180,525
|
|
|
173,041
|
|
|
183,785
| | | | |
|
Total, excluding net deferred loan costs
| |
$
|
1,355,541
|
|
$
|
1,312,804
|
|
$
|
1,294,259
|
|
$
|
1,180,534
|
|
$
|
1,133,185
| | | | |
| | | | | | | | | | | | | |
|
| | For the Three Months Ended | | | | |
| | June 30, | | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | | | |
| Noninterest Income | | 2016 |
| 2016 |
| 2015 |
| 2015 |
| 2015 | | | | |
|
Service charges on deposit accounts
| |
$
|
987
| |
$
|
935
| |
$
|
1,049
| |
$
|
929
| |
$
|
672
| | | | |
|
Bank owned life insurance income
| | |
201
| | |
212
| | |
214
| | |
184
| | |
165
| | | | |
|
Trust fees
| | |
1,564
| | |
1,496
| | |
1,518
| | |
1,482
| | |
1,509
| | | | |
|
Insurance agency commissions
| | |
293
| | |
139
| | |
175
| | |
130
| | |
118
| | | | |
|
Security gains
| | |
41
| | |
0
| | |
46
| | |
3
| | |
35
| | | | |
|
Retirement plan consulting fees
| | |
496
| | |
489
| | |
425
| | |
423
| | |
778
| | | | |
|
Investment commissions
| | |
356
| | |
236
| | |
286
| | |
332
| | |
256
| | | | |
|
Net gains on sale of loans
| | |
540
| | |
402
| | |
407
| | |
415
| | |
156
| | | | |
|
Other operating income
| |
|
1,259
|
|
|
1,037
|
|
|
1,055
|
|
|
787
|
|
|
720
| | | | |
|
Total Noninterest Income
| |
$
|
5,737
|
|
$
|
4,946
|
|
$
|
5,175
|
|
$
|
4,685
|
|
$
|
4,409
| | | | |
| | | | | | | | | | | | | |
|
| | For the Three Months Ended | | | | |
| | June 30, | | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | | | |
| Noninterest Expense | | 2016 |
| 2016 |
| 2015 |
| 2015 |
| 2015 | | | | |
|
Salaries and employee benefits
| |
$
|
7,740
| |
$
|
7,554
| |
$
|
8,220
| |
$
|
7,213
| |
$
|
5,663
| | | | |
|
Occupancy and equipment
| | |
1,616
| | |
1,664
| | |
1,772
| | |
1,368
| | |
1,201
| | | | |
|
State and local taxes
| | |
394
| | |
393
| | |
283
| | |
400
| | |
243
| | | | |
|
Professional fees
| | |
754
| | |
529
| | |
833
| | |
738
| | |
546
| | | | |
|
Merger related costs
| | |
224
| | |
289
| | |
1,736
| | |
2,499
| | |
1,912
| | | | |
|
Advertising
| | |
363
| | |
345
| | |
482
| | |
344
| | |
282
| | | | |
| FDIC insurance
| | |
286
| | |
283
| | |
326
| | |
256
| | |
178
| | | | |
|
Intangible amortization
| | |
335
| | |
337
| | |
345
| | |
304
| | |
167
| | | | |
|
Core processing charges
| | |
580
| | |
638
| | |
770
| | |
643
| | |
382
| | | | |
|
Other operating expenses
| |
|
2,491
|
|
|
2,412
|
|
|
1,853
|
|
|
1,756
|
|
|
1,513
| | | | |
|
Total Noninterest Expense
| |
$
|
14,783
|
|
$
|
14,444
|
|
$
|
16,620
|
|
$
|
15,521
|
|
$
|
12,087
| | | | |
|
|
| Average Balance Sheets and Related Yields and Rates |
|
(Dollar Amounts in Thousands)
|
|
| |
| |
| |
| |
| |
| |
| | Three Months Ended | | Three Months Ended |
| | June 30, 2016 | | June 30, 2015 |
| |
AVERAGE
| | | | | |
AVERAGE
| | | | |
| |
BALANCE
| |
INTEREST
(1)
| |
RATE (1)
| |
BALANCE
| |
INTEREST
(1)
| |
RATE (1)
|
|
EARNING ASSETS
| | | | | | | | | | | | |
|
Loans (2)
| |
$
|
1,324,761
| |
$
|
15,787
| |
4.79
|
%
| |
$
|
733,249
| |
$
|
8,780
| |
4.75
|
%
|
|
Taxable securities
| | |
246,590
| | |
1,288
| |
2.10
| | | |
273,799
| | |
1,405
| |
2.04
| |
|
Tax-exempt securities (2)
| | |
129,772
| | |
1,377
| |
4.26
| | | |
84,970
| | |
1,014
| |
4.73
| |
|
Equity securities
| | |
9,637
| | |
113
| |
4.70
| | | |
4,771
| | |
46
| |
3.66
| |
|
Federal funds sold and other
| |
|
26,137
|
|
|
27
| |
0.41
| | |
|
14,310
|
|
|
6
| |
0.17
| |
|
Total earning assets
| |
$
|
1,736,897
| | |
18,592
| |
4.30
| | |
$
|
1,111,099
| | |
11,251
| |
4.02
| |
| | | | | | | | | | | |
|
|
INTEREST-BEARING LIABILITIES
| | | | | | | | | | | | |
|
Time deposits
| |
$
|
249,491
| |
$
|
472
| |
0.76
|
%
| |
$
|
203,193
| |
$
|
736
| |
1.44
|
%
|
|
Savings deposits
| | |
540,251
| | |
159
| |
0.12
| | | |
420,315
| | |
117
| |
0.11
| |
|
Demand deposits
| | |
323,869
| | |
162
| |
0.20
| | | |
152,372
| | |
26
| |
0.07
| |
|
Short term borrowings
| | |
208,660
| | |
144
| |
0.28
| | | |
70,260
| | |
16
| |
0.09
| |
|
Long term borrowings
| |
|
20,746
|
|
|
124
| |
2.40
| | |
|
35,114
|
|
|
109
| |
1.22
| |
|
Total interest-bearing liabilities
| |
$
|
1,343,017
| | |
1,061
| |
0.32
| | |
$
|
881,254
| | |
1,004
| |
0.45
| |
| | | | | | | | | | | |
|
|
Net interest income and interest rate spread
| | | |
$
|
17,531
|
|
3.98
|
%
| | | |
$
|
10,247
|
|
3.57
|
%
|
|
Net interest margin
| | | | | |
4.06
|
%
| | | | | |
3.66
|
%
|
| | | | | | | | | | | | | |
|
|
(1) Interest and yields are calculated on a tax-equivalent basis
where applicable.
|
|
|
|
(2) For 2016, adjustments of $164 thousand and $478 thousand,
respectively, are made to tax equate income on tax exempt loans and
tax exempt securities. For 2015, adjustments of $146 thousand and
$352 thousand, respectively, are made to tax equate income on tax
exempt loans and tax exempt securities. These adjustments are based
on a marginal federal income tax rate of 35%, less disallowances.
|
|
|
|
| |
| |
| | Six Months Ended | | Six Months Ended |
| | June 30, 2016 | | June 30, 2015 |
| |
AVERAGE
|
| |
| | |
AVERAGE
|
| |
| |
| |
BALANCE
| |
INTEREST
(1)
| |
RATE (1)
| |
BALANCE
| |
INTEREST
(1)
| |
RATE (1)
|
|
EARNING ASSETS
| | | | | | | | | | | | |
Loans (2)
| |
$
|
1,306,617
| |
$
|
31,217
| |
4.80
|
%
| |
$
|
698,777
| |
$
|
16,599
| |
4.79
|
%
|
Taxable securities
| | |
253,635
| | |
2,725
| |
2.16
| | | |
285,209
| | |
3,052
| |
2.16
| |
Tax-exempt securities (2)
| | |
129,149
| | |
2,733
| |
4.26
| | | |
85,154
| | |
1,953
| |
4.62
| |
Equity securities
| | |
9,599
| | |
226
| |
4.73
| | | |
4,528
| | |
94
| |
4.10
| |
|
Federal funds sold and other
| |
|
27,340
|
|
|
65
| |
0.48
| | |
|
15,319
|
|
|
11
| |
0.14
| |
|
Total earning assets
| |
$
|
1,726,340
| | |
36,966
| |
4.31
| | |
$
|
1,088,987
| | |
21,709
| |
4.02
| |
| | | | | | | | | | | |
|
|
INTEREST-BEARING LIABILITIES
| | | | | | | | | | | | |
|
Time deposits
| |
$
|
246,219
| |
$
|
882
| |
0.72
|
%
| |
$
|
202,993
| |
$
|
1,504
| |
1.49
|
%
|
|
Savings deposits
| | |
536,543
| | |
310
| |
0.12
| | | |
409,534
| | |
227
| |
0.11
| |
|
Demand deposits
| | |
320,691
| | |
309
| |
0.19
| | | |
141,544
| | |
35
| |
0.05
| |
|
Short term borrowings
| | |
212,068
| | |
316
| |
0.30
| | | |
63,314
| | |
28
| |
0.09
| |
|
Long term borrowings
| |
|
21,384
|
|
|
242
| |
2.28
| | |
|
35,876
|
|
|
217
| |
1.23
| |
|
Total interest-bearing liabilities
| |
$
|
1,336,905
| |
$
|
2,059
| |
0.31
| | |
$
|
853,261
| | |
2,011
| |
0.48
| |
| | | | | | | | | | | |
|
|
Net interest income and interest rate spread
| | | |
$
|
34,907
|
|
4.00
|
%
| | | |
$
|
19,698
|
|
3.54
|
%
|
|
Net interest margin
| | | | | |
4.07
|
%
| | | | | |
3.65
|
%
|
| | | | | | | | | | | |
|
|
(1) Interest and yields are calculated on a tax-equivalent basis
where applicable.
|
|
|
|
(2) For 2016, adjustments of $324 thousand and $945 thousand,
respectively, are made to tax equate income on tax exempt loans and
tax exempt securities. For 2015, adjustments of $281 thousand and
$676 thousand, respectively, are made to tax equate income on tax
exempt loans and tax exempt securities. These adjustments are based
on a marginal federal income tax rate of 35%, less disallowances.
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160720006338/en/
Farmers National Banc Corp.
Kevin J. Helmick, 330-533-3341
President
and CEO
Email: exec@farmersbankgroup.com
Source: Farmers National Banc Corp.