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Farmers National Banc Corp. Announces 2021 First Quarter Financial Results

  • Dedicated to assisting associates, customers and communities during the COVID-19 crisis
  • Record net income of $14.6 million for the quarter is 68% higher than same quarter in 2020
  • Net interest income increased 13.3% for the quarter compared to the same period a year ago as a result of higher interest income and lower interest expense
  • Significant mortgage loan activity drives a 34% quarterly increase, from the same period a year ago, in total noninterest income
  • 153 consecutive quarters of profitability
  • Return on average assets, annualized, was 1.87% for the first quarter
  • 32% growth in customer non-brokered deposits in the current quarter compared to March 31, 2020

 

Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported financial results for the three months ended March 31, 2021.

Net income for the three months ended March 31, 2021 was $14.6 million, or $0.51 per diluted share, which compares to $8.6 million, or $0.30 per diluted share, for the three months ended March 31, 2020 and $11.4 million or $0.40 per diluted share for the linked quarter. Net income excluding acquisition costs (non-GAAP) for the quarter ended March 31, 2021 was $14.6 million or $0.51 per share, compared to $9.7 million or $0.34 per share for the same quarter in 2020 and $12.8 million or $0.45 per share for the most recent prior quarter.

Annualized return on average assets and annualized return on average equity were 1.87% and 16.81%, respectively, for the three month period ending March 31, 2021, compared to 1.32% and 11.53% for the same three month period in 2020, and 1.49% and 13.10% for the linked quarter. Farmers’ annualized return on average tangible equity (non-GAAP) was 19.30% for the quarter ended March 31, 2021 compared to 13.81% for the same quarter in 2020 and 15.48% for the linked quarter.

Kevin J. Helmick, President and CEO, stated, “Our record first quarter financial results reflect the power of our diversified business model, our culture of strong asset quality, and our focus on providing our communities with local and individualized financial services. Record quarterly earnings are especially encouraging as we operate in the continuing uncertainty surrounding the economic impacts of the COVID-19 pandemic.”

“Our success is a direct result of our commitment to do what’s right for our customers and I am thankful for the hard work and dedication of our colleagues who continually embody Farmers’ win-win spirit. While the COVID-19 pandemic continues to impact many of our communities, our strong start to 2021 is encouraging and we believe we are well positioned for 2021 to be another good year for Farmers,” concluded Mr. Helmick.

Farmers is offering special financial assistance to support customers who are experiencing financial hardships related to the COVID-19 pandemic. The following table reports the number and amount of payment deferrals by loan type as of dates listed:

 

June 30, 2020

 

Sept. 30, 2020

 

Dec. 31, 2020

 

March 31, 2021

 

(dollars in thousands)

Outstanding

Balance

 

Number

of Loans

 

Outstanding

Balance

 

Number

of Loans

 

Outstanding

Balance

 

Number

of Loans

 

Outstanding

Balance

 

Number

of Loans

 

Commercial real estate

$

43,954

 

 

44

 

$

155

 

 

1

 

$

19,027

 

 

6

 

$

16,584

 

 

5

 

Commercial

 

8,515

 

 

69

 

 

0

 

 

0

 

 

1,424

 

 

2

 

 

0

 

 

0

 

Agricultural

 

8,340

 

 

22

 

 

469

 

 

2

 

 

0

 

 

0

 

 

0

 

 

0

 

Residential real estate

 

3,785

 

 

37

 

 

222

 

 

1

 

 

0

 

 

0

 

 

0

 

 

0

 

Consumer

 

1,858

 

 

100

 

 

2

 

 

1

 

 

2

 

 

1

 

 

0

 

 

0

 

Total

$

66,452

 

 

272

 

$

848

 

 

5

 

$

20,453

 

 

9

 

$

16,584

 

 

5

 

The Company offered three month deferrals upon request by the borrowers, beginning in the middle of March, 2020 and concluding at the end of the three month deferral period. For those borrowers in industries that were greatly impacted by COVID-19, additional deferrals were considered and granted beyond the initial three month period. The range of deferred months for subsequent requests were three to nine months. The decline in deferred loans and balances was due to borrowers not requesting additional deferments and that most continued to pay under the original terms of their loan.

Farmers is also a preferred SBA lender and we dedicated significant additional staff and other resources to help our customers complete and submit their applications and supporting documentation for loans offered under the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, so they could obtain SBA approval and receive funding as quickly as possible. During the initial 2020 period of the PPP program, the Company facilitated PPP assistance to 1,714 business customers totaling $199.8 million. The Company, on behalf of its customers, began processing borrower applications for PPP forgiveness at the beginning of September 2020. The SBA has up to ninety days to review an application for PPP forgiveness and provide a decision at the end of that review. Once forgiveness of the PPP loans has been communicated and payment is received from the SBA, the Company will record the cash received from the SBA, pay-off the loans based on the amount of forgiveness provided and accelerate the amount of net deferred loan fees/costs recognized for the portion of the PPP loans that are forgiven. During the period ended March 31, 2021, the Company had received life to date payments from the SBA for forgiveness of loans totaling $137.2 million, or approximately 68.7% of the first round of total PPP loans. The Company has processed $75.1 million in new loans for the second round of PPP loan funding during the quarter ended March 31, 2021.

2021 First Quarter Financial Highlights

  • Loans

Total loans were $2.04 billion at March 31, 2021, compared to $1.98 billion at March 31, 2020, representing an increase of 3.1%. The increase in loans has occurred primarily in the PPP category, with $136.8 million, net of deferred fees, in outstanding balances at March 31, 2021. Loans now comprise 69.5% of the Bank's average earning assets for the quarter ended March 31, 2021, compared to 78.6% for the same period in 2020. A summary of loans summarized by industries that may have particular vulnerability to the effects of COVID-19 and their outstanding balance as a percentage of total loans, as of March 31, 2021, is shown in the following table:

(dollars in thousands)

Outstanding Balance

% of total loans

Restaurants and Catering Facilities

$44,412

2.18%

Hotels

41,767

2.05%

Golf Courses

7,233

0.35%

Energy

1,340

0.07%

Total

$94,752

4.65%

  • Deposits and Liquidity

Farmers maintains, in the opinion of management, liquidity sufficient to satisfy depositors’ requirements and meet the credit needs of its customers. The Company’s non-brokered deposits increased 32% from $2.1 billion at March 31, 2020 to $2.8 billion at March 31, 2021. As a result of the large increase in deposits, the loan to deposit ratio at March 31, 2021 stands at 71.9%, a significant decrease compared to 88.0% one year ago. The Company has additional borrowing capacity at the Federal Home Loan Bank of Cincinnati and approved lines of credit at two domestic banks.

  • Loan quality

Non-performing assets to total assets remain at a low level, currently at 0.35%, lower than the 0.45% reported one year ago. Early stage delinquencies, defined as 30-89 days past due, were $7.2 million, or 0.35% of total loans, at March 31, 2021, compared to $9.3 million, or 0.45% of total loans, for the quarter ended December 31, 2020. Net charge-offs for the current quarter were $84 thousand, compared to $635 thousand in the same quarter in 2020. Total net charge-offs as a percentage of average net loans outstanding is 0.02% for the quarter ended March 31, 2021, down 0.02% compared to the most recent quarter.

In accordance with the accounting relief provisions of the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act that was signed into law in late December 2020, the Bank had postponed adoption of the current expected credit losses (“CECL”) accounting standards at December 31, 2020. On January 1, 2021 the Bank adopted CECL, and recorded the onetime adjustment from equity into the allowance for credit losses in the amount of $2.5 million or $1.9 million, net of tax.

As a result of the change in methodology from the incurred method to the CECL method, on January 1, 2021, and the equity entry that increased the allowance for credit losses by the $1.9 million, net, the Company was able to decrease its provision for credit losses to $425 thousand for the quarter ended March 31, 2021, a decrease of $675 thousand compared to the $1.1 million provision recorded under the incurred loss methodology in the same quarter one year ago. This reduced provision is the result of the impact of improved factors that exist in the current economic environment when compared to last year. As an overall percentage of loans, the allowance for credit losses increased to 1.22% for the current quarter compared to 0.76% for the quarter ended March 31, 2020. Excluding the PPP loans, this allowance for credit losses to gross loans ratio increases to 1.31% (non-GAAP). The ratio of the allowance for credit losses to gross loans, excluding PPP loans and acquired loans is 1.51% (non-GAAP).

  • Net interest margin

The net interest margin for the three months ended March 31, 2021 was 3.58%, a 17 basis points decrease from the quarter ended March 31, 2020, and 15 basis points less than the 3.73% reported for the linked quarter. In comparing the first quarter of 2021 to the same period in 2020, asset yields decreased 72 basis points, while the cost of interest-bearing liabilities decreased 68 basis points. Most of the decrease in the asset yields was the result of lower rates earned on loans and taxable securities. The cost of interest bearing liabilities decreased as the Federal Funds target rate was lowered to a target of 0-0.25% at the start of the COVID-19 pandemic in the United States. Each of the major interest-bearing liability categories experienced cost decreases compared to one year ago. The net interest margin for the quarter ended March 31, 2021 excluding interest and fees from PPP loans is 3.43% (non-GAAP). The net interest margin is also impacted by the additional accretion as a result of the discounted loan portfolios acquired in previous mergers, which increased the net interest margin by 5 basis points for the quarter ended March 31, 2021 and 6 basis points for the quarter ended March 31, 2020.

  • Noninterest income

Noninterest income increased 34.5% to $10.6 million for the quarter ended March 31, 2021 compared to $7.9 million in the same quarter in 2020. Gains on the sales of mortgage loans increased $1.8 million or 133.16%, as lower interest rates prompted an increase in mortgage loan refinancing and new home purchases. Trust fee income increased $379 thousand or 20.41%, security gains increased $331 thousand, insurance agency commissions increased $118 thousand or 13.36% and debit card interchange fees increased $233 thousand or 27.38%. Those increases were offset by a $287 thousand or 26.21% decrease in deposit account service charge income due to a change in consumer behavior during the COVID-19 pandemic.

  • Noninterest expenses

Farmers has remained committed to managing the level of noninterest expenses. Total noninterest expenses for the first quarter of 2021 decreased 5.17% to $17.8 million compared to $18.7 million in the same quarter in 2020, primarily as a result of decreases in merger related costs of $1.3 million or 99.1%, core processing charges of $234 thousand or 27.18% and salaries and employee benefits of $255 thousand or 2.49%. These decreases were offset by increases of $475 thousand or 26.39% in occupancy and equipment expense, $240 thousand or 29.41% in professional fees and $169 thousand or 7.63% in other operating expenses. Annualized noninterest expenses excluding acquisition costs (non-GAAP) measured as a percentage of quarterly average assets improved from 2.65% in the first quarter of 2020 to 2.28% in the first quarter of 2021.

  • Efficiency ratio

The efficiency ratio for the quarter ended March 31, 2021 improved to 48.24% compared to 59.72% for the same quarter in 2020. The increase in mortgage banking income and net interest income, accompanied with lower noninterest expenses were the main drivers of the improvement.

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $3.3 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, Geauga and Cuyahoga Counties in Ohio and Beaver County in Pennsylvania, and Farmers Trust Company, which operates five trust offices and offers services in the same geographic markets. Total wealth management assets under care at March 31, 2021 are $2.9 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, net income excluding costs related to acquisition activities and allowance for credit losses to gross loans, excluding PPP loans and acquired loans, 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 to their GAAP equivalents 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 include impacts from the COVID-19 pandemic, including further resurgence in the spread of COVID-19, on local, national and global economic conditions; higher default rates on loans made to our customers related to COVID-19 and its impact on our customers’ operations and financial condition; unexpected changes in interest rates or disruptions in the mortgage markets related to COVID-19 or other responses to the health crisis; impacts of the upcoming U.S. elections on the regulatory landscape, capital markets, and response to and management of the COVID-19 pandemic including further economic stimulus from the federal government; and the other factors contained in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and 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

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2021

2020

2020

2020

2020

Total interest income

$27,790

$28,833

$27,635

$28,142

$27,717

Total interest expense

2,523

3,030

3,470

4,221

5,415

Net interest income

25,267

25,803

24,165

23,921

22,302

Provision for credit losses

425

3,000

2,600

2,400

1,100

Noninterest income

10,583

10,682

9,467

9,136

7,870

Acquisition related costs

12

1,798

58

48

1,319

Other expense

17,756

17,979

17,662

17,692

17,418

Income before income taxes

17,657

13,708

13,312

12,917

10,335

Income taxes

3,101

2,351

2,443

1,906

1,696

Net income

$14,556

$11,357

$10,869

$11,011

$8,639

 

 

 

 

 

Average diluted shares outstanding

28,336

28,322

28,291

28,280

28,710

Basic earnings per share

0.52

0.40

0.39

0.39

0.30

Diluted earnings per share

0.51

0.40

0.38

0.39

0.30

Cash dividends

3,107

3,100

3,101

3,100

3,104

Cash dividends per share

0.11

0.11

0.11

0.11

0.11

Performance Ratios

Net Interest Margin (Annualized)

3.58%

3.73%

3.59%

3.74%

3.75%

Efficiency Ratio (Tax equivalent basis)

48.24%

50.25%

50.66%

50.75%

59.72%

Return on Average Assets (Annualized)

1.87%

1.49%

1.46%

1.56%

1.32%

Return on Average Equity (Annualized)

16.81%

13.10%

12.87%

14.02%

11.53%

Dividends to Net Income

21.35%

27.30%

28.53%

28.15%

35.93%

Other Performance Ratios (Non-GAAP)

Return on Average Tangible Assets

1.87%

1.52%

1.50%

1.58%

1.33%

Return on Average Tangible Equity

19.30%

15.48%

15.30%

16.69%

13.81%

Return on Average Tangible Equity excluding acquisition costs

19.31%

17.43%

15.37%

16.75%

15.50%

Consolidated Statements of Financial Condition

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

2021

2020

2020

2020

2020

Assets

Cash and cash equivalents

$326,385

$254,621

$199,575

$103,954

$83,107

Securities available for sale

802,866

575,600

481,509

475,614

448,043

Equity securities

6,902

6,881

8,307

8,375

8,080

Loans held for sale

3,993

4,766

7,076

3,395

3,272

Loans

2,037,404

2,078,044

2,147,158

2,149,690

1,976,582

Less allowance for credit losses (a)

24,935

22,144

19,341

16,960

14,952

Net Loans

2,012,469

2,055,900

2,127,817

2,132,730

1,961,630

 

Other assets

171,909

173,380

164,895

161,612

164,256

Total Assets

$3,324,524

$3,071,148

$2,989,179

$2,885,680

$2,668,388

 

Liabilities and Stockholders' Equity

Deposits

Noninterest-bearing

$675,045

$608,791

$577,334

$593,162

$449,952

Interest-bearing

2,158,009

2,002,087

1,960,998

1,846,323

1,796,325

Total deposits

2,833,054

2,610,878

2,538,332

2,439,485

2,246,277

Other interest-bearing liabilities

79,683

78,906

81,690

80,115

96,852

Other liabilities

64,432

31,267

29,189

34,728

21,523

Total liabilities

2,977,169

2,721,051

2,649,211

2,554,328

2,364,652

Stockholders' Equity

347,355

350,097

339,968

331,352

303,736

Total Liabilities

 

 

 

 

 

and Stockholders' Equity

$3,324,524

$3,071,148

$2,989,179

$2,885,680

$2,668,388

 

Period-end shares outstanding

28,237

28,190

28,186

28,180

28,127

Book value per share

$12.30

$12.42

$12.06

$11.76

$10.80

Tangible book value per share (Non-GAAP)*

10.56

10.66

10.23

9.92

8.94

 

* Tangible book value per share is calculated by dividing tangible common equity by period-end shares outstanding

 

Capital and Liquidity

Common Equity Tier 1 Capital Ratio (b)

13.67%

13.22%

12.98%

12.65%

12.26%

Total Risk Based Capital Ratio (b)

14.85%

14.72%

14.36%

13.92%

13.43%

Tier 1 Risk Based Capital Ratio (b)

13.77%

13.67%

13.43%

13.10%

12.70%

Tier 1 Leverage Ratio (b)

9.38%

9.77%

9.67%

9.71%

10.18%

Equity to Asset Ratio

10.45%

11.40%

11.37%

11.48%

11.38%

Tangible Common Equity Ratio (c)

9.10%

9.94%

9.82%

9.86%

9.61%

Net Loans to Assets

60.53%

66.94%

71.18%

73.91%

73.51%

Loans to Deposits

71.92%

79.59%

84.59%

88.12%

87.99%

Asset Quality

Non-performing loans

$11,640

$13,835

$11,841

$12,225

$11,845

Other Real Estate Owned

30

0

73

41

131

Non-performing assets

11,670

13,835

11,914

12,266

11,976

Loans 30 - 89 days delinquent

7,183

9,297

10,134

10,336

19,067

Charged-off loans

284

387

393

524

749

Recoveries

200

190

174

132

114

Net Charge-offs

84

197

219

392

635

Annualized Net Charge-offs to

Average Net Loans Outstanding

0.02%

0.04%

0.04%

0.08%

0.13%

Allowance for Credit Losses to Total Loans (a)

1.22%

1.07%

0.90%

0.79%

0.76%

Non-performing Loans to Total Loans

0.57%

0.67%

0.55%

0.57%

0.60%

Allowance to Non-performing Loans (a)

214.22%

160.06%

163.34%

138.73%

126.23%

Non-performing Assets to Total Assets

0.35%

0.45%

0.40%

0.43%

0.45%

 

 

 

 

 

 

(a) CECL method used for the March 31, 2021 quarter. Prior periods used the incurred loss methodology.

 

(b) March 31, 2021 ratio is estimated

 

(c) This is a non-GAAP financial measure. A reconciliation to GAAP is shown below.

 

Reconciliation of Total Assets to Tangible Assets

         

March 31,

 

Dec. 31,

 

Sept. 30,

 

June 30,

 

March 31,

 

2021

 

2020

 

2020

 

2020

 

2020

 

Total Assets

$3,324,524

 

$3,071,148

 

$2,989,179

 

$2,885,680

 

$2,668,388

 

Less Goodwill and other intangibles

49,301

 

49,617

 

51,608

 

51,866

 

52,198

 

Tangible Assets

$3,275,223

 

$3,021,531

 

$2,937,571

 

$2,833,814

 

$2,616,190

 

Average Assets

3,155,695

 

3,033,005

 

2,957,702

 

2,842,730

 

2,641,597

 

Less average Goodwill and other intangibles

49,509

 

51,476

 

51,754

 

52,052

 

51,103

 

Average Tangible Assets

$3,106,186

 

$2,981,529

 

$2,905,948

 

$2,790,678

 

$2,590,494

 
         
       

 

 

Reconciliation of Common Stockholders' Equity to Tangible Common Equity

 
 

March 31,

 

Dec. 31,

 

Sept. 30,

 

June 30,

 

March 31,

 
 

2021

 

2020

 

2020

 

2020

 

2020

 

Stockholders' Equity

 

$347,355

 

$350,097

 

$339,968

 

$331,352

 

$303,736

 

Less Goodwill and other intangibles

 

49,301

 

49,617

 

51,608

 

51,866

 

52,198

 

Tangible Common Equity

 

$298,054

 

$300,480

 

$288,360

 

$279,486

 

$251,538

 

Average Stockholders' Equity

 

351,190

 

344,949

 

335,982

 

315,988

 

301,408

 

Less average Goodwill and other intangibles

 

49,509

 

51,476

 

51,754

 

52,052

 

51,103

 

Average Tangible Common Equity

 

$301,681

 

$293,473

 

$284,228

 

$263,936

 

$250,305

 
           
           

Reconciliation of Net Income, Excluding Acquisition Related Costs

 
 

For the Three Months Ended

 
 

March 31,

 

Dec. 31,

 

Sept. 30,

 

June 30,

 

March 31,

 
 

2021

 

2020

 

2020

 

2020

 

2020

 

Net income

 

$14,556

 

$11,357

 

$10,869

 

$11,011

 

$8,639

 

Acquisition related costs - tax equated

 

9

 

1,431

 

50

 

41

 

1,063

 

Net income - Adjusted

 

$14,565

 

$12,788

 

$10,919

 

$11,052

 

$9,702

 

Diluted EPS excluding acquisition costs

 

$0.51

 

$0.45

 

$0.39

 

$0.39

 

$0.34

 

 

           

Reconciliation of Allowance for Credit Losses to Gross Loans, Excluding PPP Loans and Acquired Loans

           
 

For the Three Months Ended

 

March 31,

 

Dec. 31,

 

Sept. 30,

 

June 30,

 

March 31,

 

2021

 

2020

 

2020

 

2020

 

2020

Gross Loans

 

$2,037,404

 

$2,078,044

 

$2,147,158

 

$2,149,690

 

$1,976,582

PPP Loans

 

136,826

 

125,396

 

194,490

 

192,969

 

0

Loans less PPP

 

1,900,578

 

1,952,648

 

1,952,668

 

1,956,721

 

1,976,582

Allowance for Credit Losses to Gross Loans Excluding PPP (a)

 

1.31%

 

1.13%

 

0.99%

 

0.87%

 

0.76%

Acquired Loans

 

251,616

 

272,150

 

294,712

 

320,184

 

352,529

Loans less PPP and Acquired

 

$1,648,962

 

$1,680,498

 

$1,657,956

 

$1,636,537

 

$1,624,053

Allowance for Credit Losses to Gross Loans Excluding PPP and Acquired (a)

 

1.51%

 

1.32%

 

1.17%

 

1.04%

 

0.92%

 (a) CECL method used for the March 31, 2021 quarter. Prior periods used the incurred loss methodology.

           

End of Period Loan Balances

 

 

 

       
 

March 31,

 

Dec. 31,

 

Sept. 30,

 

June 30,

 

March 31,

 

2021

 

2020

 

2020

 

2020

 

2020

Commercial real estate

 

$702,556

 

$713,936

 

$710,730

 

$715,342

 

$714,477

Commercial

 

406,064

 

404,492

 

481,593

 

472,012

 

283,033

Residential real estate

 

508,483

 

524,193

 

526,627

 

528,853

 

541,534

Consumer

 

193,295

 

203,061

 

209,883

 

208,374

 

210,173

Agricultural loans

 

227,073

 

232,129

 

219,896

 

221,556

 

223,977

Total, excluding net deferred loan costs

 

$2,037,471

 

$2,077,811

 

$2,148,729

 

$2,146,137

 

$1,973,194

           
           

For the Three Months Ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

Noninterest Income

2021

2020

2020

2020

2020

Service charges on deposit accounts

$808

$930

$904

$753

$1,095

Bank owned life insurance income

284

187

196

204

208

Trust fees

2,236

1,950

1,973

1,852

1,857

Insurance agency commissions

1,001

776

784

681

883

Security gains (losses)

488

179

70

(26)

157

Retirement plan consulting fees

320

394

341

408

380

Investment commissions

504

450

353

304

423

Net gains on sale of loans

3,185

3,901

3,348

3,658

1,366

Debit card and EFT fees

1,084

1,061

1,048

967

851

Other operating income

673

854

450

335

650

Total Noninterest Income

$10,583

$10,682

$9,467

$9,136

$7,870

 
 

For the Three Months Ended

March 31,

Dec. 31,

Sept. 30,

June 30,

March 31,

Noninterest Expense

2021

2020

2020

2020

2020

Salaries and employee benefits

$9,976

$9,638

$10,244

$9,713

$10,231

Occupancy and equipment

2,275

2,060

1,719

1,675

1,800

State and local taxes

554

515

576

583

464

Professional fees

1,056

341

753

823

816

Merger related costs

12

1,798

58

48

1,319

Advertising

260

478

460

322

271

FDIC insurance

170

100

200

225

225

Intangible amortization

316

332

332

331

332

Core processing charges

627

831

925

934

861

Telephone and data

138

154

182

348

203

Other operating expenses

2,384

3,530

2,271

2,738

2,215

Total Noninterest Expense

$17,768

$19,777

$17,720

$17,740

$18,737

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)

 

Three Months Ended

Three Months Ended

 

March 31, 2021

March 31, 2020

 

AVERAGE

 

 

AVERAGE

 

 

 

BALANCE

INTEREST (1)

RATE (1)

BALANCE

INTEREST (1)

RATE (1)

EARNING ASSETS

 

 

 

 

 

 

Loans (2)

$2,041,485

$23,900

4.75%

$1,927,468

$24,197

5.05%

Taxable securities

329,903

1,719

2.11

220,374

1,547

2.82

Tax-exempt securities (2)

282,044

2,613

3.76

231,213

2,243

3.90

Equity securities

14,840

121

3.31

16,304

140

3.45

Federal funds sold and other

268,872

71

0.11

57,900

149

1.04

Total earning assets

2,937,144

28,424

3.92

2,453,259

28,276

4.64

Nonearning assets

218,551

 

 

188,338

 

 

Total assets

$3,155,695

 

 

$2,641,597

 

 

INTEREST-BEARING LIABILITIES

 

 

 

 

 

 

Time deposits

$440,452

$1,255

1.16%

$495,813

$2,442

1.98%

Brokered time deposits

32,000

46

0.58

105,493

483

1.83

Savings deposits

495,832

193

0.16

425,276

321

0.30

Demand deposits

1,083,597

732

0.27

690,705

1,393

0.81

Short term borrowings

2,808

4

0.58

62,476

320

2.06

Long term borrowings

76,007

293

1.56

100,230

456

1.83

Total interest-bearing liabilities

$2,130,696

2,523

0.48

$1,879,993

5,415

1.16

NONINTEREST-BEARING LIABILITIES

 

 

 

 

 

 

AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Demand deposits

650,588

 

 

448,319

 

 

Other liabilities

23,221

 

 

11,877

 

 

Stockholders' equity

351,190

 

 

301,408

 

 

TOTAL LIABILITIES AND

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

$3,155,695

 

 

$2,641,597

 

 

Net interest income and interest rate spread

 

$25,901

3.44%

 

$22,861

3.48%

Net interest margin

 

 

3.58%

 

 

3.75%

 

 

 

 

 

 

 

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

(2) For 2021, adjustments of $95 thousand and $539 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2020, adjustments of $98 thousand and $461 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%, less disallowances.

Source: Farmers National Banc Corp.

Contacts

Kevin J. Helmick, President and CEO

20 South Broad Street, P.O. Box 555

Canfield, OH 44406

330.533.3341

Email: exec@farmersbankgroup.com

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