- Earnings per diluted share increased to $0.22 for the quarter ended
September 30, 2017 compared to $0.20 for same quarter in 2016
- 139 consecutive quarters of profitability
- 10% organic loan growth since September 30, 2016
- Annualized return on average assets was 1.12% and annualized return
on average equity 10.15% for the quarter ended September 30, 2017
- Non-performing assets to total assets remain at low levels, 0.33%
at September 30, 2017
CANFIELD, Ohio--(BUSINESS WIRE)--
Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported
financial results for the three and nine months ended September 30, 2017.
Net income for the three months ended September 30, 2017 was $6.0
million, or $0.22 per diluted share, which compares to $5.4 million, or
$0.20 per diluted share, for the three months ended September 30, 2016
and $5.7 million or $0.21 per diluted share for the linked quarter.
Excluding acquisition expenses, net income for the three month period
ended September 30, 2017 would have been $6.2 million. Annualized return
on average assets and return on average equity were 1.12% and 10.15%,
respectively, for the three month period ending September 30, 2017,
compared to 1.10% and 9.97% for the same three month period in 2016, and
1.11% and 10.25% for the linked quarter. Farmers’ return on average
tangible equity (Non-GAAP) was 12.69% for the quarter ended September
30, 2017 compared to 12.73% for the same quarter in 2016 and 12.77% for
the linked quarter.
Net income for the nine months ended September 30, 2017 was $17.5
million, or $0.64 per diluted share, compared to $15.2 million or $0.56
per diluted share for the same nine month period in 2016. Return on
average assets and return on average equity were 1.14% and 10.41%,
respectively, for the nine months ended September 30, 2017, compared to
1.06% and 9.74% for the same period in 2016. Excluding expenses related
to acquisition activities, net income for the nine month period ended
September 30, 2017 would have been $17.8 million or $0.66 per diluted
share.
On March 13, 2017, Farmers entered into an agreement and plan of merger
with Monitor Bancorp, Inc. (Monitor), the holding company for The
Monitor Bank, located in Holmes County, Ohio. This transaction obtained
all regulatory approvals and was completed on August 15, 2017. This
transaction serves as an entrance into the attractive Holmes County
market for Farmers and will help Farmers continue to grow its market
share, balance sheet and earnings. As of August 15, 2017, Monitor had
total assets of $42.4 million, which included loans of $19.3 million and
deposits of $34.6 million.
Kevin J. Helmick, President and CEO, stated, “In addition to another
strong quarter of financial performance, we are pleased to close our
fourth acquisition in the past two years. This acquisition further
enhances Farmers’ brand and delivers long-term value for our
shareholders. We are excited about our success in 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 also continue to
be encouraged by our organic loan growth, which has increased 10% during
the past twelve months, and our 5% increase in noninterest income on a
year-to-date basis.”
2017 Third Quarter Financial Highlights
- Loan growth
Total loans were $1.55 billion at September
30, 2017, compared to $1.40 billion at September 30, 2016,
representing an increase of 11.2%. 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 77.6% of the Bank's average earning assets for the quarter
ended September 30, 2017, an improvement compared to 76.5% 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 in the third quarter of 2017 compared to the same quarter in
2016.
- Loan quality
Non-performing assets to total assets remain
at a low level, currently 0.33%. Early stage delinquencies, which are
loans 30 – 89 days delinquent, also continue to remain at low levels,
at $8.7 million, or 0.56% of total loans, at September 30, 2017. Net
charge-offs for the current quarter were $592 thousand, compared to
$312 thousand in the same quarter in 2016 and total net charge-offs as
a percentage of average net loans outstanding was only 0.16% for the
quarter ended September 30, 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 September 30, 2017 was 3.96%, a 1 basis point decrease
from the quarter ended September 30, 2016. In comparing the third
quarter of 2017 to the same period in 2016, asset yields increased 11
basis points, while the cost of interest-bearing liabilities increased
18 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
8 basis points for the quarters ended September 30, 2017 and 2016,
respectively.
- Noninterest income
Noninterest income decreased 6.6% to
$6.1 million for the quarter ended September 30, 2017 compared to $6.5
million in 2016. Gains on the sale of mortgage loans decreased $305
thousand, or 29% in the current year’s quarter compared to the same
quarter in 2016, however it is important to note that on a
year-to-date basis gains on the sale of mortgage loans have increased
$251 thousand or 12.5%. Investment commissions also decreased $124
thousand or 40.3%. Debit card interchange fees increased $117 thousand
or 17.9% in comparing the third quarter of 2017 to the same quarter in
2016.
- Noninterest expenses
Farmers has remained committed to
managing the level of noninterest expenses. Total noninterest expenses
for the third quarter of 2017 increased to $15.8 million compared to
$15.2 million in the same quarter in 2016, primarily as a result of
increases in salaries and employee benefits of $556 thousand and
merger related costs of $239 thousand, offset by a $220 thousand
decrease in other operating expenses. There was also a $53 thousand
loss on the sale of land and building during the current quarter
compared to none in the same quarter in 2016. It is important to note
that annualized noninterest expenses measured as a percentage of
quarterly average assets decreased from 3.10% in the third quarter of
2016 to 2.96% in the third quarter of 2017.
- Efficiency ratio
The efficiency ratio for the quarter
ended September 30, 2017 improved to 59.9% compared to 60.9% 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.
2017 Outlook
Mr. Helmick added, “We are pleased by the improvement in our financial
results for the first 9 months of 2017. We will 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 39 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
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, return on average tangible assets, return on average
tangible equity and net income excluding costs related to acquisition
activity expenses, 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 Nine Months Ended |
| | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | Sept. 30, | | Sept. 30, | | Sept. 30 | | Percent |
| | 2017 |
| 2017 |
| 2017 |
| 2016 |
| 2016 |
| 2017 |
| 2016 |
| Change |
|
Total interest income
| | $20,551 | | $20,042 | | $18,850 | | $18,469 | | $18,332 | | $59,443 | | $54,029 | |
10.0%
|
|
Total interest expense
| |
1,876
|
|
1,669
|
|
1,319
|
|
1,178
|
|
1,139
|
|
4,864
|
|
3,200
|
|
52.0%
|
| Net interest income | |
18,675
| |
18,373
| |
17,531
| |
17,291
| |
17,193
| |
54,579
| |
50,829
| |
7.4%
|
|
Provision for loan losses
| |
950
| |
950
| |
1,050
| |
990
| |
1,110
| |
2,950
| |
2,880
| |
2.4%
|
|
Noninterest income
| |
6,058
| |
6,055
| |
5,887
| |
6,076
| |
6,485
| |
18,000
| |
17,168
| |
4.8%
|
|
Merger related costs
| |
270
| |
104
| |
62
| |
19
| |
31
| |
436
| |
544
| |
-19.9%
|
|
Other expense
| |
15,521
|
|
15,660
|
|
14,551
|
|
14,981
|
|
15,194
|
|
45,732
|
|
43,908
|
|
4.2%
|
| Income before income taxes | |
7,992
| |
7,714
| |
7,755
| |
7,377
| |
7,343
| |
23,461
| |
20,665
| |
13.5%
|
|
Income taxes
| |
2,009
|
|
2,004
|
|
1,972
|
|
2,014
|
|
1,967
|
|
5,985
|
|
5,471
|
|
9.4%
|
| Net income | | $5,983 |
| $5,710 |
| $5,783 |
| $5,363 |
| $5,376 |
| $17,476 |
| $15,194 |
|
15.0%
|
| | | | | | | | | | | | | | | |
|
|
Average shares outstanding
| |
27,654
| |
27,337
| |
27,278
| |
27,216
| |
27,261
| |
27,698
| |
27,168
| | |
|
Basic and diluted earnings per share
| |
0.22
| |
0.21
| |
0.21
| |
0.20
| |
0.20
| |
0.64
| |
0.56
| | |
|
Cash dividends
| |
1,653
| |
1,353
| |
1,353
| |
1,082
| |
1,082
| |
4,359
| |
3,242
| | |
|
Cash dividends per share
| |
0.06
| |
0.05
| |
0.05
| |
0.04
| |
0.04
| |
0.16
| |
0.12
| | |
| Performance Ratios | | | | | | | | | | | | | | | | |
|
Net Interest Margin (Annualized)
| |
3.96%
| |
4.05%
| |
4.01%
| |
3.95%
| |
3.97%
| |
4.01%
| |
4.04%
| | |
|
Efficiency Ratio (Tax equivalent basis)
| |
59.93%
| |
60.79%
| |
58.79%
| |
60.37%
| |
60.85%
| |
59.85%
| |
62.00%
| | |
|
Return on Average Assets (Annualized)
| |
1.12%
| |
1.11%
| |
1.17%
| |
1.08%
| |
1.10%
| |
1.14%
| |
1.06%
| | |
|
Return on Average Equity (Annualized)
| |
10.15%
| |
10.25%
| |
10.87%
| |
9.74%
| |
9.97%
| |
10.41%
| |
9.74%
| | |
|
Dividends to Net Income
| |
27.63%
| |
23.70%
| |
23.40%
| |
20.18%
| |
20.13%
| |
24.94%
| |
21.34%
| | |
| Other Performance Ratios (Non-GAAP) | | | | | | | | | | | | | | | | |
|
Return on Average Tangible Assets
| |
1.15%
| |
1.14%
| |
1.18%
| |
1.11%
| |
1.13%
| |
1.16%
| |
1.09%
| | |
|
Return on Average Tangible Equity
| |
12.69%
| |
12.77%
| |
13.54%
| |
12.34%
| |
12.73%
| |
12.98%
| |
12.33%
| | |
| | | | | | | | | | | | | | | |
|
| Consolidated Statements of Financial Condition |
|
| Sept. 30, |
| June 30, |
| March 31, |
| Dec. 31, |
| Sept. 30, |
| | 2017 |
| 2017 |
| 2017 |
| 2016 |
| 2016 |
| Assets | | | | | | | | | | |
|
Cash and cash equivalents
| | $84,006 | | $64,640 | | $61,251 | | $41,778 | | $67,372 |
|
Securities available for sale
| |
395,235
| |
391,628
| |
377,072
| |
369,995
| |
368,729
|
| | | | | | | | | |
|
|
Loans held for sale
| |
502
| |
583
| |
1,098
| |
355
| |
2,148
|
|
Loans
| |
1,551,437
| |
1,505,273
| |
1,461,461
| |
1,427,635
| |
1,395,620
|
|
Less allowance for loan losses
| |
12,104
|
|
11,746
|
|
11,319
|
|
10,852
|
|
10,518
|
|
Net Loans
| |
1,539,333
|
|
1,493,527
|
|
1,450,142
|
|
1,416,783
|
|
1,385,102
|
| | | | | | | | | |
|
|
Other assets
| |
143,129
|
|
135,286
|
|
136,924
|
|
137,202
|
|
137,657
|
| Total Assets | | $2,162,205 |
| $2,085,664 |
| $2,026,487 |
| $1,966,113 |
| $1,961,008 |
| | | | | | | | | |
|
| Liabilities and Stockholders' Equity | | | | | | | | | | |
|
Deposits
| | | | | | | | | | |
|
Noninterest-bearing
| | $413,991 | | $387,596 | | $374,399 | | $366,870 | | $352,441 |
|
Interest-bearing
| |
1,195,533
| |
1,153,407
| |
1,165,821
| |
1,157,886
| |
1,139,724
|
|
Total deposits
| |
1,609,524
| |
1,541,003
| |
1,540,220
| |
1,524,756
| |
1,492,165
|
|
Other interest-bearing liabilities
| |
295,270
| |
298,827
| |
245,069
| |
213,496
| |
235,757
|
|
Other liabilities
| |
19,348
|
|
19,147
|
|
23,136
|
|
14,645
|
|
17,649
|
|
Total liabilities
| |
1,924,142
| |
1,858,977
| |
1,808,425
| |
1,752,897
| |
1,745,571
|
|
Stockholders' Equity
| |
238,063
|
|
226,687
|
|
218,062
|
|
213,216
|
|
215,437
|
| Total Liabilities | | | | | | | | | | |
| and Stockholders' Equity | | $2,162,205 |
| $2,085,664 |
| $2,026,487 |
| $1,966,113 |
| $1,961,008 |
| | | | | | | | | |
|
|
Period-end shares outstanding
| |
27,544
| |
27,067
| |
27,067
| |
27,048
| |
27,048
|
|
Book value per share
| | $8.64 | | $8.38 | | $8.06 | | $7.88 | | $7.96 |
|
Tangible book value per share
(Non-GAAP)*
| |
6.98
| |
6.73
| |
6.40
| |
6.21
| |
6.29
|
|
* 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)
| |
11.95%
| |
11.80%
| |
11.75%
| |
11.69%
| |
11.67%
|
|
Total Risk Based Capital Ratio (a)
| |
12.67%
| |
12.67%
| |
12.61%
| |
12.53%
| |
12.51%
|
|
Tier 1 Risk Based Capital Ratio (a)
| |
11.95%
| |
11.93%
| |
11.89%
| |
11.83%
| |
11.81%
|
|
Tier 1 Leverage Ratio (a)
| |
9.60%
| |
9.47%
| |
9.47%
| |
9.41%
| |
9.35%
|
|
Equity to Asset Ratio
| |
11.01%
| |
10.87%
| |
10.76%
| |
10.84%
| |
10.99%
|
|
Tangible Common Equity Ratio
| |
9.08%
| |
8.93%
| |
8.74%
| |
8.75%
| |
8.88%
|
|
Net Loans to Assets
| |
71.19%
| |
71.61%
| |
71.56%
| |
72.06%
| |
70.63%
|
|
Loans to Deposits
| |
96.39%
| |
97.68%
| |
94.89%
| |
93.63%
| |
93.53%
|
| Asset Quality | | | | | | | | | | |
|
Non-performing loans
| | $6,900 | | $6,355 | | $6,553 | | $8,170 | | $8,003 |
|
Other Real Estate Owned
| |
219
| |
236
| |
318
| |
482
| |
506
|
|
Non-performing assets
| |
7,119
| |
6,591
| |
6,871
| |
8,652
| |
8,509
|
|
Loans 30 - 89 days delinquent
| |
8,680
| |
7,052
| |
8,258
| |
12,747
| |
10,986
|
|
Charged-off loans
| |
809
| |
725
| |
943
| |
841
| |
562
|
|
Recoveries
| |
217
| |
202
| |
360
| |
185
| |
250
|
|
Net Charge-offs
| |
592
| |
523
| |
583
| |
656
| |
312
|
|
Annualized Net Charge-offs to
| | | | | | | | | | |
|
Average Net Loans Outstanding
| |
0.16%
| |
0.14%
| |
0.16%
| |
0.20%
| |
0.09%
|
|
Allowance for Loan Losses to Total Loans
| |
0.78%
| |
0.78%
| |
0.77%
| |
0.76%
| |
0.75%
|
|
Non-performing Loans to Total Loans
| |
0.44%
| |
0.42%
| |
0.45%
| |
0.57%
| |
0.57%
|
|
Allowance to Non-performing Loans
| |
175.42%
| |
184.83%
| |
172.73%
| |
132.83%
| |
131.43%
|
|
Non-performing Assets to Total Assets
| |
0.33%
| |
0.32%
| |
0.34%
| |
0.44%
| |
0.43%
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) September 30, 2017 ratio is estimated
|
|
| |
| |
| |
| |
| |
| 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 |
| | 2017 |
| 2017 |
| 2017 |
| 2016 |
| 2016 |
| 2017 |
| 2016 |
|
Stockholders' Equity
| | $238,063 | | $226,687 | | $218,062 | | $213,216 | | $215,437 | | $238,063 | | $215,437 |
|
Less Goodwill and other intangibles
| |
45,936
|
|
44,425
|
|
44,789
|
|
45,154
|
|
45,299
|
|
45,936
|
|
45,299
|
|
Tangible Common Equity
| | $192,127 |
| $182,262 |
| $173,273 |
| $168,062 |
| $170,138 |
| $192,127 |
| $170,138 |
|
Average Stockholders' Equity
| |
233,843
| |
223,544
| |
215,819
| |
219,028
| |
214,484
| |
224,496
| |
208,281
|
|
Less Average Goodwill and other intangibles
| |
45,263
|
|
44,665
|
|
45,028
|
|
45,173
|
|
45,575
|
|
44,986
|
|
43,986
|
|
Average Tangible Common Equity
| | $188,580 |
| $178,879 |
| $170,791 |
| $173,855 |
| $168,909 |
| $179,510 |
| $164,295 |
| | | | | | | | | | | | 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 |
| | 2017 |
| 2017 |
| 2017 |
| 2016 |
| 2016 |
| 2017 |
| 2016 |
|
Total Assets
| | $2,162,205 | | $2,085,664 | | $2,026,487 | | $1,966,113 | | $1,961,008 | | $2,162,205 | | $1,961,008 |
|
Less Goodwill and other intangibles
| |
45,936
|
|
44,425
|
|
44,789
|
|
45,154
|
|
45,299
|
|
45,936
|
|
45,299
|
|
Tangible Assets
| | $2,116,269 |
| $2,041,239 |
| $1,981,698 |
| $1,920,959 |
| $1,915,709 |
| $2,116,269 |
| $1,915,709 |
|
Average Assets
| |
2,118,170
| |
2,055,758
| |
2,001,084
| |
1,977,589
| |
1,949,204
| |
2,056,800
| |
1,909,500
|
|
Less average Goodwill and other intangibles
| |
45,263
|
|
44,665
|
|
45,028
|
|
45,173
|
|
45,575
|
|
44,986
|
|
43,986
|
|
Average Tangible Assets
| | $2,072,907 |
| $2,011,093 |
| $1,956,056 |
| $1,932,416 |
| $1,903,629 |
| $2,011,814 |
| $1,865,514 |
| | | | | | | | | | | | | |
|
| Reconciliation of Net Income, Excluding Costs Related to
Acquisition Activities | | For the Nine Months
Ended |
| | For the Three Months Ended |
|
| | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | Sept. 30, | | Sept. 30, | | Sept. 30 |
| | 2017 |
| 2017 |
| 2017 |
| 2016 |
| 2016 |
| 2017 |
| 2016 |
|
Income before income taxes - Reported
| | $7,992 | | $7,714 | | $7,755 | | $7,377 | | $7,343 | | $23,461 | | $20,665 |
|
Acquisition Costs
| |
270
|
|
104
|
|
62
|
|
19
|
|
31
|
|
436
|
|
544
|
|
Income before income taxes - Adjusted
| |
8,262
| |
7,818
| |
7,817
| |
7,396
| |
7,374
| |
23,897
| |
21,209
|
|
Income tax expense (b)
| |
2,089
|
|
2,014
|
|
1,987
|
|
2,018
|
|
1,973
|
|
6,090
|
|
5,618
|
|
Net income - Adjusted
| | $6,173 |
| $5,804 |
| $5,830 |
| $5,378 |
| $5,401 |
| $17,807 |
| $15,591 |
|
(b) The income tax expense change from actual income tax expense
relates to the deductibility of certain acquisition costs
|
|
|
|
| For the Three Months Ended |
| | Sept. 30, |
| June 30, |
| March 31, |
| Dec. 31, |
| Sept. 30, |
| End of Period Loan Balances | | 2017 |
| 2017 |
| 2017 |
| 2016 |
| 2016 |
|
Commercial real estate
| | $500,426 | | $476,844 | | $456,917 | | $446,975 | | $426,657 |
|
Commercial
| |
218,946
| |
215,676
| |
208,913
| |
204,771
| |
207,228
|
|
Residential real estate
| |
459,702
| |
445,991
| |
441,593
| |
430,674
| |
423,009
|
|
Consumer
| |
213,918
| |
220,454
| |
216,648
| |
212,836
| |
205,466
|
|
Agricultural loans
| |
155,336
|
|
142,687
|
|
133,868
|
|
128,981
|
|
129,959
|
|
Total, excluding net deferred loan costs
| | $1,548,328 |
| $1,501,652 |
| $1,457,939 |
| $1,424,237 |
| $1,392,319 |
| | | | | | | | | |
|
| | For the Three Months Ended |
| | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | Sept. 30, |
| Noninterest Income | | 2017 |
| 2017 |
| 2017 |
| 2016 |
| 2016 |
|
Service charges on deposit accounts
| | $1,077 | | $989 | | $951 | | $1,031 | | $1,057 |
|
Bank owned life insurance income
| |
193
| |
191
| |
201
| |
208
| |
194
|
|
Trust fees
| |
1,608
| |
1,523
| |
1,678
| |
1,482
| |
1,693
|
|
Insurance agency commissions
| |
531
| |
672
| |
674
| |
559
| |
569
|
|
Security gains
| |
0
| |
(14)
| |
13
| |
1
| |
31
|
|
Retirement plan consulting fees
| |
480
| |
399
| |
513
| |
444
| |
561
|
|
Investment commissions
| |
184
| |
253
| |
222
| |
310
| |
308
|
|
Net gains on sale of loans
| |
758
| |
891
| |
607
| |
838
| |
1,063
|
|
Debit card and EFT fees
| |
770
| |
836
| |
653
| |
722
| |
653
|
|
Other operating income
| |
457
|
|
315
|
|
375
|
|
481
|
|
356
|
|
Total Noninterest Income
| | $6,058 |
| $6,055 |
| $5,887 |
| $6,076 |
| $6,485 |
| | | | | | | | | |
|
| | For the Three Months Ended |
| | Sept. 30, | | June 30, | | March 31, | | Dec. 31, | | Sept. 30, |
| Noninterest Expense | | 2017 |
| 2017 |
| 2017 |
| 2016 |
| 2016 |
|
Salaries and employee benefits
| | $8,922 | | $8,853 | | $8,287 | | $8,248 | | $8,366 |
|
Occupancy and equipment
| |
1,546
| |
1,631
| |
1,587
| |
1,748
| |
1,587
|
|
State and local taxes
| |
436
| |
424
| |
417
| |
363
| |
394
|
|
Professional fees
| |
726
| |
775
| |
747
| |
803
| |
671
|
|
Merger related costs
| |
270
| |
104
| |
62
| |
19
| |
31
|
|
Litigation settlement expense
| |
0
| |
155
| |
0
| |
0
| |
0
|
|
Advertising
| |
405
| |
317
| |
244
| |
241
| |
383
|
| FDIC insurance
| |
235
| |
234
| |
235
| |
199
| |
287
|
|
Intangible amortization
| |
379
| |
364
| |
365
| |
368
| |
421
|
|
Core processing charges
| |
702
| |
717
| |
655
| |
743
| |
738
|
|
Telephone and data
| |
249
| |
242
| |
241
| |
275
| |
206
|
|
Other operating expenses
| |
1,921
|
|
1,948
|
|
1,773
|
|
1,993
|
|
2,141
|
|
Total Noninterest Expense
| | $15,791 |
| $15,764 |
| $14,613 |
| $15,000 |
| $15,225 |
| | | | | | | | | |
|
| Average Balance Sheets and Related Yields and Rates |
|
(Dollar Amounts in Thousands)
|
|
| |
| |
| |
| |
| |
| |
| | Three Months Ended | | Three Months Ended |
| | September 30, 2017 |
| September 30, 2016 |
| |
AVERAGE
| | | | | |
AVERAGE
| | | | |
| |
BALANCE
| |
INTEREST (1)
| |
RATE (1)
| |
BALANCE
| |
INTEREST (1)
| |
RATE (1)
|
|
EARNING ASSETS
| | | | | | | | | | | | |
|
Loans (2)
| | $1,517,589 | | $17,952 | |
4.69%
| | $1,365,637 | | $ 16,212 | |
4.72
|
%
|
|
Taxable securities
| |
215,490
| |
1,271
| |
2.34
| |
229,630
| |
1,160
| |
2.01
| |
|
Tax-exempt securities (2)
| |
173,113
| |
1,887
| |
4.32
| |
131,714
| |
1,365
| |
4.12
| |
|
Equity securities
| |
10,474
| |
136
| |
5.15
| |
9,607
| |
177
| |
7.33
| |
|
Federal funds sold and other
| |
38,815
|
|
126
| |
1.29
| |
47,850
|
|
54
| |
0.45
| |
|
Total earning assets
| |
1,955,481
| |
21,372
| |
4.34
| |
1,784,438
| |
18,968
| |
4.23
| |
|
Nonearning assets
| |
162,689
| | | | | |
164,766
| | | | |
|
Total assets
| | $2,118,170 | | | | | | $1,949,204 | | | | |
|
INTEREST-BEARING LIABILITIES
| | | | | | | | | | | | |
|
Time deposits
| | $242,654 | | $680 | |
1.11%
| | $250,268 | | $ 490 | |
0.78
|
%
|
|
Savings deposits
| |
525,919
| |
189
| |
0.14
| |
552,037
| |
191
| |
0.14
| |
|
Demand deposits
| |
406,123
| |
313
| |
0.31
| |
322,511
| |
177
| |
0.22
| |
|
Short term borrowings
| |
280,490
| |
644
| |
0.91
| |
215,859
| |
166
| |
0.31
| |
|
Long term borrowings
| |
9,333
|
|
50
| |
2.13
| |
19,404
|
|
115
| |
2.36
| |
|
Total interest-bearing liabilities
| | $1,464,519 | |
1,876
| |
0.51
| | $1,360,079 | |
1,139
| |
0.33
| |
|
NONINTEREST-BEARING LIABILITIES
| | | | | | | | | | | | |
|
AND STOCKHOLDERS' EQUITY
| | | | | | | | | | | | |
|
Demand deposits
| |
405,959
| | | | | |
359,291
| | | | |
|
Other liabilities
| |
13,849
| | | | | |
15,350
| | | | |
|
Stockholders' equity
| |
233,843
| | | | | |
214,484
| | | | |
|
TOTAL LIABILITIES AND
| | | | | | | | | | | | |
|
STOCKHOLDERS' EQUITY
| | $2,118,170 |
|
| | | | $1,949,204 |
|
| | |
|
Net interest income and interest rate spread
| | | | $19,496 |
|
3.83%
| | | | $ 17,829 |
|
3.90
|
%
|
|
Net interest margin
| | | | | |
3.96%
| | | | | |
3.97
|
%
|
| | | | | | | | | | | |
|
(1) Interest and yields are calculated on a tax-equivalent basis where
applicable.
(2) For 2017, adjustments of $166 thousand and $655 thousand,
respectively, were made to tax equate income on tax exempt loans and tax
exempt securities. For 2016, adjustments of $164 thousand and $472
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.
|
| Nine Months Ended |
| Nine Months Ended |
| | September 30, 2017 |
| September 30, 2016 |
| |
AVERAGE
|
| |
| | |
AVERAGE
|
| |
| |
| |
BALANCE
| |
INTEREST (1)
| |
RATE (1)
| |
BALANCE
| |
INTEREST (1)
| |
RATE (1)
|
|
EARNING ASSETS
| | | | | | | | | | | | |
|
Loans (2)
| | $1,475,807 | | $52,162 | |
4.73%
| | $1,326,536 | | $47,429 | |
4.78
|
%
|
|
Taxable securities
| |
214,552
| |
3,654
| |
2.28
| |
245,578
| |
3,885
| |
2.11
| |
|
Tax-exempt securities
| |
163,539
| |
5,317
| |
4.35
| |
130,010
| |
4,098
| |
4.21
| |
|
Equity securities (2)
| |
10,207
| |
374
| |
4.90
| |
9,601
| |
403
| |
5.61
| |
|
Federal funds sold and other
| |
35,148
|
|
271
| |
1.03
| |
33,625
|
|
119
| |
0.47
| |
|
Total earning assets
| |
1,899,253
| |
61,778
| |
4.35
| |
1,745,350
| |
55,934
| |
4.28
| |
|
Nonearning assets
| |
157,547
| | | | | |
164,150
| | | | |
|
Total assets
| | $2,056,800 | | | | | | $1,909,500 | | | | |
|
INTEREST-BEARING LIABILITIES
| | | | | | | | | | | | |
|
Time deposits
| | $237,695 | | $1,833 | |
1.03%
| | $247,327 | | $1,371 | |
0.74
|
%
|
|
Savings deposits
| |
524,154
| |
542
| |
0.14
| |
541,746
| |
501
| |
0.12
| |
|
Demand deposits
| |
396,791
| |
838
| |
0.28
| |
321,302
| |
486
| |
0.20
| |
|
Short term borrowings
| |
267,217
| |
1,472
| |
0.74
| |
213,341
| |
485
| |
0.30
| |
|
Long term borrowings
| |
10,432
|
|
179
| |
2.29
| |
20,719
|
|
357
| |
2.30
| |
|
Total interest-bearing liabilities
| | $1,436,289 | |
4,864
| |
0.45
| | $1,344,435 | |
3,200
| |
0.32
| |
|
NONINTEREST-BEARING LIABILITIES
| | | | | | | | | | | | |
|
AND STOCKHOLDERS' EQUITY
| | | | | | | | | | | | |
|
Demand deposits
| | $382,963 | | | | | | $342,673 | | | | |
|
Other liabilities
| |
13,052
| | | | | |
14,111
| | | | |
|
Stockholders' equity
| |
224,496
| | | | | |
208,281
| | | | |
|
TOTAL LIABILITIES AND
| | | | | | | | | | | | |
|
STOCKHOLDERS' EQUITY
| | $2,056,800 |
|
| | | | $1,909,500 |
|
| | |
|
Net interest income and interest rate spread
| | | | $56,914 |
|
3.90%
| | | | $52,734 |
|
3.96
|
%
|
|
Net interest margin
| | | | | |
4.01%
| | | | | |
4.04
|
%
|
| | | | | | | | | | | |
|
(1) Interest and yields are calculated on a tax-equivalent basis where
applicable.
(2) 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. For 2016, adjustments of $488 thousand and $1.4
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171025005933/en/
Farmers National Banc Corp.
Kevin J. Helmick, 330-533-3341
President
and CEO
exec@farmersbankgroup.com
Source: Farmers National Banc Corp.