- Earnings per diluted share of $0.31 ($0.33 excluding certain
items, non-GAAP) for the second quarter of 2024
- 166 consecutive quarters of profitability
- Sequential net interest margin stabilization and
expansion
- Loan growth of $56.1 million, or 7.0% annualized, for the
second quarter of 2024
- Strong asset quality as non-performing loans to total loans
were 0.40% at June 30, 2024
Farmers National Banc Corp. (“Farmers” or the “Company”)
(NASDAQ: FMNB) today announced net income of $11.8 million, or
$0.31 per diluted share, for the three months ended June 30, 2024,
compared to $15.0 million, or $0.40 per diluted share, for the
three months ended June 30, 2023. Net income for the second quarter
of 2024 included pretax items of $515,000 for the loss on the sale
of investment securities and write downs on certain other assets
held for sale. Excluding these items (non-GAAP), net income for the
second quarter of 2024 was $12.2 million, or $0.33 per diluted
share.
Kevin J. Helmick, President and CEO, stated, “Our second quarter
financial results are encouraging as we experienced strong loan
growth along with sequential improvement in net interest income. We
are pleased that asset quality also continues to be a source of
strength. Over the near term, we remain focused on supporting the
financial needs of our communities, while ensuring the Company is
well positioned to create long-term value for our
shareholders.”
Balance Sheet
Total assets were $5.16 billion at June 30, 2024, up from $5.08
billion at March 31, 2024, and $5.08 billion at December 31, 2023.
Loans increased to $3.24 billion at June 30, 2024 compared to $3.18
billion at March 31, 2024 and $3.20 billion at December 31, 2023.
While loan growth accelerated sharply in the second quarter of
2024, the Company still anticipates total loan growth of
approximately 1.5% - 2% in 2024, reflecting the challenging
economic and interest rate environment, as well as the Company’s
focus on maintaining excellent asset quality.
The Company had securities available for sale of $1.25 billion
at June 30, 2024, compared to $1.27 billion at March 31, 2024, and
$1.30 billion at December 31, 2023. Gross unrealized losses on the
portfolio totaled $242.3 million at June 30, 2024, an increase from
$234.2 million at March 31, 2024, and $217.1 million at December
31, 2023. The Company expects bond market volatility to continue in
2024 and anticipates that it will continue to reduce the size of
the securities portfolio via runoff to optimize profitability and
enhance liquidity.
Total deposits increased to $4.21 billion at June 30, 2024, up
slightly from $4.20 billion at March 31, 2024, and $4.18 billion at
December 31, 2023. Noninterest bearing deposits declined to $968.7
million at June 30, 2024, from $977.5 million at March 31, 2024,
and $1.03 billion at December 31, 2023 even as growth in interest
bearing deposits offset this decline. Customers continue to seek
higher rates on their deposit balances but the pace of activity
continues to slow.
Total stockholders’ equity was $396.7 million at June 30, 2024,
compared to $397.0 million at March 31, 2024, and $404.4 million at
December 31, 2023. The decline since December has been driven by an
increase in the unrealized losses on investment securities offset
by earnings net of dividend payments to shareholders.
Credit Quality
The Company’s non-performing loans increased slightly to $12.9
million at June 30, 20024, compared to $12.0 million at March 31,
2024, but were down from $15.1 million at December 31, 2023.
Non-performing loans to total loans were 0.40% at June 30, 2024,
0.38% at March 31, 2024, and 0.47% at December 31, 2023.
Non-performing assets to total assets were 0.25% at June 30, 2024,
0.24% at March 31, 2024, and 0.30% at December 31, 2023. The
Company’s loans which were 30-89 days delinquent were $18.5 million
at June 30, 2024, or 0.57% of total loans, compared to $16.7
million, or 0.52% of total loans, at December 31, 2023.
The provision for credit losses and unfunded commitments totaled
$1.1 million for the three months ended June 30, 2024, compared to
$25,000 for the three months ended June 30, 2023. The increased
provision for credit losses was primarily due to loan growth of
$56.1 million in the second quarter of 2024 compared to loan
shrinkage of $2.9 million in the second quarter of 2023. Annualized
net charge-offs as a percentage of average loans were 0.07% for the
second quarter of 2024, compared to 0.10% for the second quarter of
2023. The allowance for credit losses to total loans was 1.05% at
June 30, 2024, compared to 1.04% at March 31, 2024 and 1.08% at
December 31, 2023.
Net Interest Income
Net interest income for the second quarter of 2024 was $32.1
million compared to $34.6 million in the second quarter of 2023.
Average interest earning assets are down $5.4 million when
comparing the second quarter of 2024 to the second quarter of 2023.
The net interest margin has declined from 2.92% for the second
quarter of 2023 to 2.71% for the second quarter of 2024. This
decline in net interest margin was due to increased funding costs
outstripping the increase in yields on earning assets. The increase
in funding costs has been due to the rapid increase in deposit
rates due to intense competition for deposits, the Federal
Reserve’s rate hiking cycle, and runoff of deposit balances which
are being replaced with more costly wholesale funding. Excluding
acquisition marks and PPP interest, non-GAAP, the Company’s net
interest margin was 2.51% in the second quarter of 2024 compared to
2.68% in the second quarter of 2023.
Noninterest Income
The Company recorded noninterest income of $9.6 million for the
second quarter of 2024 compared to $9.4 million for the second
quarter of 2023. This increase is due to increases in several
categories of noninterest income offset by declines in other
noninterest income and losses on the sale of securities.
Service charges on deposit accounts were $1.8 million for the
second quarter of 2024 compared to $1.5 million for the same period
in 2023. The Company undertook a review of all service charges in
late 2023 and early 2024 and implemented fee increases across
deposit product lines in the second quarter. Bank owned life
insurance income increased from $584,000 in the second quarter of
2023 to $652,000 in the second quarter of 2024 as crediting rates
on the insurance policies continue to increase. Trust fees
increased to $2.6 million in the second quarter of 2024 from $2.2
million in the second quarter of 2023 due to continued strong
growth in this line of business. Losses on the sale of securities
totaled $124,000 in the second quarter of 2024 compared to gains on
the sale of securities of $13,000 during the second quarter of
2023. Other noninterest income declined from $463,000 in the second
quarter of 2023 to $162,000 in the second quarter of 2024. The
Company recorded write downs totaling $391,000 on other assets held
for sale during the second quarter of 2024. No write downs occurred
in the second quarter of 2023.
Noninterest Expense
The Company’s noninterest expense totaled $26.4 million for the
three months ended June 30, 2024 compared to $26.4 million for the
three months ended June 30, 2023. The second quarter of 2023
included $442,000 of merger related charges. There were no merger
related expenses during the second quarter of 2024. Salaries and
employee benefits were $14.6 million in the second quarter of 2024
compared to $13.6 million in the second quarter of 2023. The
increase was primarily driven by higher salaries associated with
employee raises along with higher health care expenses. FDIC and
state and local taxes decreased by $309,000 to $1.2 million for the
first three months of 2024 compared to $1.5 million for the first
three months of 2023 due to lower FDIC premiums. Intangible
amortization declined to $630,000 in the second quarter of 2024
from $1.2 million for the second quarter of 2023. This decrease was
driven by accelerated amortization that occurred in the second
quarter of 2023 that did not reoccur in 2024 and amortization from
a prior acquisition running off. Other noninterest expense
increased $545,000 in the second quarter of 2024 compared to the
second quarter of 2023. Timing surrounding postage expense and
ATM/debit card charges drove much of this increase.
Liquidity
The Company’s loan to deposit ratio was 77.0% at June 30, 2024
while the Company’s average deposit balance per account (excluding
collateralized deposits) was $22,375 for the same period. At June
30, 2024, the Company had access to an additional $679.7 million of
FHLB borrowing capacity, along with $238.1 million in available for
sale securities that are not pledged.
About Farmers National Banc Corp.
Founded in 1887, Farmers National Banc Corp. is a diversified
financial services company headquartered in Canfield, Ohio, with
$5.2 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 62 banking locations in
Mahoning, Trumbull, Columbiana, Portage, Stark, Wayne, Medina,
Geauga and Cuyahoga Counties in Ohio and Beaver, Butler, Allegheny,
Jefferson, Clarion, Venango, Clearfield, Mercer, Elk and Crawford
Counties 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 June 30, 2024
are $3.7 billion. Farmers National Insurance, LLC, a wholly-owned
subsidiary of The Farmers National Bank of Canfield, offers 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 certain items, return on average assets
excluding merger costs and certain items, return on average equity
excluding merger costs and certain items, net interest margin
excluding acquisition marks and related accretion and PPP interest
and fees and efficiency ratio less certain items, 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.
Cautionary Statements Regarding Forward-Looking
Statements
We make statements in this news release and our related investor
conference call, and we may from time to time make other
statements, that are 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 certain forward-looking statements include significant
changes in near-term local, regional, and U.S. economic conditions
including those resulting from continued high rates of inflation,
tightening monetary policy of the Board of Governors of the Federal
Reserve, and possibility of a recession; and the other factors
contained in Farmers’ Annual Report on Form 10-K for the year ended
December 31, 2023 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 For the Six Months
Ended June 30, March 31, Dec. 31, Sept.
30, June 30, June 30, June 30,
Percent
2024
2024
2023
2023
2023
2024
2023
Change
Total interest income
$
56,846
$
55,054
$
55,069
$
54,229
$
52,804
$
111,900
$
104,037
7.6
%
Total interest expense
24,780
23,367
22,239
20,461
18,226
48,147
32,849
46.6
%
Net interest income
32,066
31,687
32,830
33,768
34,578
63,753
71,188
-10.4
%
Provision (credit) for credit losses
1,112
(449
)
286
243
25
663
8,624
-92.3
%
Noninterest income
9,606
8,357
12,156
9,831
9,449
17,963
19,874
-9.6
%
Acquisition related costs
0
0
452
268
442
0
4,755
-100.0
%
Other expense
26,403
27,039
26,520
27,448
25,944
53,442
52,353
2.1
%
Income before income taxes
14,157
13,454
17,728
15,640
17,616
27,611
25,330
9.0
%
Income taxes
2,374
2,214
3,151
2,326
2,650
4,588
3,289
39.5
%
Net income
$
11,783
$
11,240
$
14,577
$
13,314
$
14,966
$
23,023
$
22,041
4.5
%
Average diluted shares outstanding
37,487
37,479
37,426
37,379
37,320
37,480
37,624
Basic earnings per share
0.32
0.30
0.39
0.36
0.40
0.62
0.59
Diluted earnings per share
0.31
0.30
0.39
0.36
0.40
0.61
0.59
Cash dividends per share
0.17
0.17
0.17
0.17
0.17
0.34
0.34
Performance Ratios Net Interest Margin (Annualized)
2.71
%
2.70
%
2.78
%
2.86
%
2.92
%
2.70
%
3.00
%
Efficiency Ratio (Tax equivalent basis)
60.80
%
61.54
%
57.84
%
60.11
%
56.28
%
61.17
%
59.50
%
Return on Average Assets (Annualized)
0.93
%
0.90
%
1.17
%
1.06
%
1.18
%
0.91
%
0.87
%
Return on Average Equity (Annualized)
12.15
%
11.47
%
17.98
%
14.49
%
16.12
%
11.76
%
11.94
%
Dividends to Net Income
54.04
%
56.65
%
43.68
%
47.82
%
42.54
%
55.61
%
58.09
%
Other Performance Ratios (Non-GAAP) Return on Average
Tangible Assets
0.97
%
0.93
%
1.22
%
1.09
%
1.23
%
0.95
%
0.90
%
Return on Average Tangible Equity
23.74
%
21.88
%
43.77
%
30.29
%
33.55
%
22.79
%
25.05
%
Consolidated Statements of Financial Condition
June 30, March 31, Dec. 31, Sept. 30,
June 30,
2024
2024
2023
2023
2023
Assets Cash and cash equivalents
$
180,987
$
148,630
$
103,658
$
93,923
$
116,063
Debt securities available for sale
1,246,730
1,270,149
1,299,701
1,210,736
1,316,878
Other investments
37,594
34,619
35,311
35,342
44,975
Loans held for sale
2,577
1,854
3,711
1,910
2,197
Loans
3,237,369
3,181,318
3,198,127
3,168,554
3,155,200
Less allowance for credit losses
33,991
33,159
34,440
34,753
34,957
Net Loans
3,203,378
3,148,159
3,163,687
3,133,801
3,120,243
Other assets
485,587
476,599
472,282
495,451
473,098
Total Assets
$
5,156,853
$
5,080,010
$
5,078,350
$
4,971,163
$
5,073,454
Liabilities and Stockholders' Equity Deposits
Noninterest-bearing
$
968,693
$
977,475
$
1,026,630
$
1,039,524
$
1,084,232
Interest-bearing
3,237,142
3,220,650
3,150,756
3,217,869
3,165,381
Brokered time deposits
0
0
0
254,257
21,135
Total deposits
4,205,835
4,198,125
4,177,386
4,511,650
4,270,748
Other interest-bearing liabilities
494,890
433,777
443,663
88,550
388,437
Other liabilities
59,434
51,082
52,886
54,981
47,278
Total liabilities
4,760,159
4,682,984
4,673,935
4,655,181
4,706,463
Stockholders' Equity
396,694
397,026
404,415
315,982
366,991
Total Liabilities and Stockholders' Equity
$
5,156,853
$
5,080,010
$
5,078,350
$
4,971,163
$
5,073,454
Period-end shares outstanding
37,575
37,546
37,503
37,489
37,457
Book value per share
$
10.56
$
10.57
$
10.78
$
8.43
$
9.80
Tangible book value per share (Non-GAAP)*
5.53
5.52
5.71
3.33
4.67
* Tangible book value per share is calculated by dividing
tangible common equity by outstanding shares
For the Three Months Ended For the Six Months Ended
June 30, March 31, Dec. 31, Sept. 30,
June 30, June 30, June 30,
Capital and Liquidity
2024
2024
2023
2023
2023
2024
2023
Common Equity Tier 1 Capital Ratio (a)
10.95
%
10.88
%
10.61
%
10.37
%
10.25
%
Total Risk Based Capital Ratio (a)
14.39
%
14.38
%
14.06
%
13.83
%
13.76
%
Tier 1 Risk Based Capital Ratio (a)
11.44
%
11.37
%
11.10
%
10.86
%
10.74
%
Tier 1 Leverage Ratio (a)
8.26
%
8.19
%
8.02
%
7.84
%
7.68
%
Equity to Asset Ratio
7.69
%
7.82
%
7.96
%
6.36
%
7.23
%
Tangible Common Equity Ratio (b)
4.18
%
4.24
%
4.38
%
2.61
%
3.58
%
Net Loans to Assets
62.12
%
61.97
%
62.30
%
63.04
%
61.50
%
Loans to Deposits
76.97
%
75.78
%
76.56
%
70.23
%
73.88
%
Asset Quality Non-performing loans
$
12,870
$
11,951
$
15,063
$
18,368
$
17,956
Non-performing assets
12,975
12,215
15,321
18,522
18,167
Loans 30 - 89 days delinquent
18,546
14,069
16,705
13,314
12,321
Charged-off loans
661
1,282
972
525
971
1,943
1,440
Recoveries
98
271
172
139
172
369
370
Net Charge-offs
563
1,011
800
386
799
1,574
1,070
Annualized Net Charge-offs to Average Net Loans
0.07
%
0.13
%
0.10
%
0.05
%
0.10
%
0.10
%
0.07
%
Allowance for Credit Losses to Total Loans
1.05
%
1.04
%
1.08
%
1.10
%
1.11
%
Non-performing Loans to Total Loans
0.40
%
0.38
%
0.47
%
0.58
%
0.57
%
Loans 30 - 89 Days Delinquent to Total Loans
0.57
%
0.44
%
0.52
%
0.42
%
0.39
%
Allowance to Non-performing Loans
264.11
%
277.46
%
228.64
%
189.20
%
194.68
%
Non-performing Assets to Total Assets
0.25
%
0.24
%
0.30
%
0.37
%
0.36
%
(a) June 30, 2024 ratio is estimated (b) This is a non-GAAP
financial measure. A reconciliation to GAAP is shown below
For the Three Months Ended June 30, March 31,
Dec. 31, Sept. 30, June 30, End of Period
Loan Balances
2024
2024
2023
2023
2023
Commercial real estate
$
1,348,675
$
1,339,372
$
1,335,806
$
1,295,847
$
1,284,974
Commercial
343,694
335,747
346,354
357,691
362,664
Residential real estate
849,561
836,252
843,697
842,729
849,533
HELOC
151,511
143,696
142,441
140,772
138,535
Consumer
268,606
256,846
259,784
261,136
260,326
Agricultural loans
265,035
260,425
261,288
261,738
250,807
Total, excluding net deferred loan costs
$
3,227,082
$
3,172,338
$
3,189,370
$
3,159,913
$
3,146,839
For the Three Months Ended End of Period
Customer Deposit Balances June 30,2024 March
31,2024 Dec. 31,2023 Sept.
30,2023 June 30,2023 Noninterest-bearing
demand
$
968,693
$
977,474
$
1,026,630
$
1,039,524
$
1,084,232
Interest-bearing demand
1,380,266
1,381,383
1,362,609
1,426,349
1,383,326
Money market
677,058
646,308
593,975
588,043
610,051
Savings
433,166
452,949
468,890
488,991
511,642
Certificate of deposit
746,652
740,011
725,282
714,486
660,362
Total customer deposits
$
4,205,835
$
4,198,125
$
4,177,386
$
4,257,393
$
4,249,613
For the Three Months Ended For the Six
Months Ended June 30, March 31, Dec. 31,
Sept. 30, June 30, June 30, June 30,
Noninterest Income
2024
2024
2023
2023
2023
2024
2023
Service charges on deposit accounts
$
1,846
$
1,583
$
1,677
$
1,712
$
1,501
$
3,429
$
2,933
Bank owned life insurance income, including death benefits
652
707
617
694
584
1,359
1,131
Trust fees
2,638
2,793
2,656
2,617
2,248
5,431
4,835
Insurance agency commissions
1,255
1,528
1,540
1,116
1,332
2,783
2,788
Security gains (losses), including fair value changes for equity
securities
(124
)
(2,120
)
19
(624
)
13
(2,244
)
134
Retirement plan consulting fees
330
334
357
360
382
664
689
Investment commissions
478
432
589
520
476
910
869
Net gains on sale of loans
417
297
1,280
395
406
714
716
Other mortgage banking fee income (loss), net
192
125
139
185
234
317
387
Debit card and EFT fees
1,760
1,567
1,697
1,763
1,810
3,327
3,599
Other noninterest income
162
1,111
1,585
1,093
463
1,273
1,793
Total Noninterest Income
$
9,606
$
8,357
$
12,156
$
9,831
$
9,449
$
17,963
$
19,874
For the Three Months Ended For the Six
Months Ended June 30, March 31, Dec. 31,
Sept. 30, June 30, June 30, June 30,
Noninterest Expense
2024
2024
2023
2023
2023
2024
2023
Salaries and employee benefits
$
14,558
$
15,069
$
14,871
$
14,233
$
13,625
$
29,627
$
28,270
Occupancy and equipment
3,815
3,730
3,896
3,810
3,859
7,545
7,728
FDIC insurance and state and local taxes
1,185
1,345
1,484
1,648
1,494
2,530
2,716
Professional fees
1,194
1,254
1,004
1,043
1,190
2,448
2,304
Merger related costs
0
0
452
268
442
0
4,755
Advertising
445
431
414
492
478
876
887
Intangible amortization
630
688
578
725
1,222
1,318
2,131
Core processing charges
1,099
1,135
1,057
1,274
1,144
2,234
2,308
Other noninterest expenses
3,477
3,387
3,216
4,223
2,932
6,864
6,009
Total Noninterest Expense
$
26,403
$
27,039
$
26,972
$
27,716
$
26,386
$
53,442
$
57,108
Average Balance Sheets and Related Yields and Rates (Dollar
Amounts in Thousands)
Three Months Ended Three
Months Ended June 30, 2024 June 30, 2023 AVERAGE
YIELD/ AVERAGE YIELD/ BALANCE INTEREST (1) RATE (1) BALANCE
INTEREST (1) RATE (1) EARNING ASSETS Loans (2)
$
3,215,141
$
46,590
5.80
%
$
3,144,461
$
42,422
5.40
%
Taxable securities
1,118,598
6,813
2.44
1,157,284
6,654
2.30
Tax-exempt securities (2)
379,761
2,973
3.13
415,003
3,278
3.16
Other investments
33,441
322
3.85
41,361
594
5.74
Federal funds sold and other
78,591
743
3.78
72,801
551
3.03
Total earning assets
4,825,532
57,441
4.76
4,830,910
53,499
4.43
Nonearning assets
218,984
225,131
Total assets
$
5,044,516
$
5,056,041
INTEREST-BEARING LIABILITIES Time deposits
$
744,422
$
7,233
3.89
%
$
646,782
$
4,525
2.80
%
Brokered time deposits
0
0
0.00
59,402
686
4.62
Savings deposits
1,102,443
4,117
1.49
1,133,371
2,402
0.85
Demand deposits - interest bearing
1,391,767
8,810
2.53
1,428,409
6,878
1.93
Total interest-bearing deposits
3,238,632
20,160
2.49
3,267,964
14,491
1.77
Short term borrowings
299,543
3,585
4.79
213,549
2,727
5.11
Long term borrowings
88,834
1,035
4.66
88,382
1,008
4.56
Total borrowed funds
388,377
4,620
4.76
301,931
3,735
4.95
Total interest-bearing liabilities
3,627,009
24,780
2.73
3,569,895
18,226
2.04
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits - noninterest bearing
972,290
1,067,605
Other liabilities
57,336
47,120
Stockholders' equity
387,881
371,421
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
5,044,516
$
5,056,041
Net interest income and interest rate spread
$
32,661
2.03
%
$
35,273
2.39
%
Net interest margin
2.71
%
2.92
%
(1) Interest and yields are calculated on a tax-equivalent
basis where applicable. (2) For 2024, adjustments of $77 thousand
and $518 thousand, respectively, were made to tax equate income on
tax exempt loans and tax exempt securities. For 2023, adjustments
of $91 thousand and $604 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.
Six Months Ended Six Months
Ended June 30, 2024 June 30, 2023 AVERAGE YIELD/
AVERAGE YIELD/ BALANCE INTEREST (1) RATE (1) BALANCE INTEREST (1)
RATE (1) EARNING ASSETS Loans (2)
$
3,198,239
$
91,686
5.73
%
$
3,140,500
$
83,365
5.31
%
Taxable securities
1,109,972
13,227
2.38
1,164,400
13,204
2.27
Tax-exempt securities (2)
393,918
6,182
3.14
426,743
6,797
3.19
Other investments
33,924
684
4.03
38,976
970
4.98
Federal funds sold and other
75,174
1,369
3.64
77,870
1,161
2.98
Total earning assets
4,811,227
113,148
4.70
4,848,489
105,497
4.35
Nonearning assets
223,014
221,955
Total assets
$
5,034,241
$
5,070,444
INTEREST-BEARING LIABILITIES Time deposits
$
738,159
$
14,281
3.87
%
$
618,637
$
7,864
2.54
%
Brokered time deposits
0
0
0.00
144,747
3,007
4.15
Savings deposits
1,093,511
7,716
1.41
1,143,539
4,356
0.76
Demand deposits - interest bearing
1,371,058
16,553
2.41
1,423,211
11,971
1.68
Total interest-bearing deposits
3,202,728
38,550
2.41
3,330,134
27,198
1.63
Short term borrowings
312,167
7,524
4.82
147,436
3,648
4.95
Long term borrowings
88,778
2,073
4.67
88,326
2,003
4.54
Total borrowed funds
400,945
9,597
4.79
235,762
5,651
4.79
Total interest-bearing liabilities
3,603,673
48,147
2.67
3,565,896
32,849
1.84
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits - noninterest bearing
$
983,728
$
1,087,403
Other liabilities
55,125
47,996
Stockholders' equity
391,715
369,149
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
5,034,241
$
5,070,444
Net interest income and interest rate spread
$
65,001
2.03
%
$
72,648
2.51
%
Net interest margin
2.70
%
3.00
%
(1) Interest and yields are calculated on a tax-equivalent
basis where applicable. (2) For 2024, adjustments of $156 thousand
and $1.1 million, respectively, were made to tax equate income on
tax exempt loans and tax exempt securities. For 2023, adjustments
of $178 thousand and $1.3 million, respectively, were made to tax
equate income on tax exempt loans and tax exempt securities. These
adjustments were based on a marginal federal income tax rate of
21%, less disallowances.
Reconciliation of Total Assets to
Tangible Assets For the Three Months Ended For the
Six Months Ended June 30, March 31, Dec.
31, Sept. 30, June 30, June 30, June
30,
2024
2024
2023
2023
2023
2024
2023
Total Assets
$
5,156,853
$
5,080,010
$
5,078,350
$
4,971,163
$
5,073,454
$
5,156,853
$
5,073,454
Less Goodwill and other intangibles
188,970
189,599
190,288
191,326
192,052
188,970
192,052
Tangible Assets
$
4,967,883
$
4,890,411
$
4,888,062
$
4,779,837
$
4,881,402
$
4,967,883
$
4,881,402
Average Assets
5,044,516
5,023,966
4,980,314
5,058,969
5,070,444
5,034,241
5,070,444
Less average Goodwill and other intangibles
189,382
190,040
191,108
191,804
192,972
189,712
193,169
Average Tangible Assets
$
4,855,134
$
4,833,926
$
4,789,206
$
4,867,165
$
4,877,472
$
4,844,529
$
4,877,275
Reconciliation of Common Stockholders' Equity to
Tangible Common Equity For the Three Months Ended For
the Six Months Ended June 30, March 31, Dec.
31, Sept. 30, June 30, June 30, June
30,
2024
2024
2023
2023
2023
2024
2023
Stockholders' Equity
$
396,694
$
397,026
$
404,415
$
315,982
$
366,991
$
396,694
$
366,991
Less Goodwill and other intangibles
188,970
189,599
190,288
191,326
192,052
188,970
192,052
Tangible Common Equity
$
207,724
$
207,427
$
214,127
$
124,656
$
174,939
$
207,724
$
174,939
Average Stockholders' Equity
387,881
395,549
324,332
367,600
371,421
391,715
369,149
Less average Goodwill and other intangibles
189,382
190,040
191,108
191,804
192,972
189,712
193,169
Average Tangible Common Equity
$
198,499
$
205,509
$
133,224
$
175,796
$
178,449
$
202,003
$
175,980
Reconciliation of Net Income, Less Merger and
Certain Items For the Three Months Ended For the Six
Months Ended June 30, March 31, Dec. 31,
Sept. 30, June 30, June 30, June 30,
2024
2024
2023
2023
2023
2024
2023
Net income
$
11,783
$
11,240
$
14,577
$
13,314
$
14,966
$
23,023
$
22,041
Acquisition related costs - after tax
0
0
358
234
354
0
3,803
Acquisition related provision - after tax
0
0
0
0
0
0
6,077
Employee severence - after tax
0
0
798
0
0
0
0
Lawsuit settlement expense - after tax
0
0
0
620
0
0
0
Net (gain) on loan sale - after tax
0
0
(723
)
0
0
0
0
Net loss (gain) on asset/security sales - after tax
407
1,675
171
604
(5
)
2,082
(77
)
Net income - Adjusted
$
12,190
$
12,915
$
15,181
$
14,772
$
15,315
$
25,105
$
31,844
Diluted EPS excluding merger and certain items
$
0.33
$
0.34
$
0.41
$
0.40
$
0.41
$
0.67
$
0.85
Return on Average Assets excluding merger and certain items
(Annualized)
0.97
%
1.03
%
1.22
%
1.17
%
1.21
%
1.00
%
1.26
%
Return on Average Equity excluding merger and certain items
(Annualized)
12.57
%
13.06
%
18.72
%
16.07
%
16.49
%
12.82
%
17.25
%
Return on Average Tangible Equity excluding acquisition costs and
certain items (Annualized)
24.56
%
25.14
%
45.58
%
33.61
%
34.33
%
24.86
%
36.19
%
Efficiency ratio excluding certain items
For the Three Months Ended For the Six Months Ended
June 30, March 31, Dec. 31, Sept. 30,
June 30, June 30, June 30,
2024
2024
2023
2023
2023
2024
2023
Net interest income, tax equated
$
32,661
$
32,341
$
33,494
$
34,448
$
35,273
$
65,001
$
72,648
Noninterest income
9,606
8,357
12,156
9,831
9,449
17,963
19,874
Net (gain) on loan sale
0
0
(915
)
0
0
0
0
Net loss (gain) on asset/security sales
515
2,120
217
764
(6
)
2,635
(97
)
Net interest income and noninterest income adjusted
42,782
42,818
44,952
45,043
44,716
85,599
92,425
Noninterest expense less intangible amortization
25,773
26,351
26,394
26,991
25,163
52,124
54,976
Legal settlement expense
0
0
0
785
0
0
0
Employee severence
0
0
1,010
0
0
0
0
Acquisition related costs
0
0
452
268
442
0
4,755
Noninterest expense adjusted
25,773
26,351
24,932
25,938
24,721
52,124
50,221
Efficiency ratio excluding certain items
60.24
%
61.54
%
55.46
%
57.58
%
55.28
%
60.89
%
54.34
%
Net interest margin excluding acquisition marks
and PPP interest and fees For the Three Months Ended
For the Six Months Ended June 30, March 31,
Dec. 31, Sept. 30, June 30, June 30,
June 30,
2024
2024
2023
2023
2023
2024
2023
Net interest income, tax equated
$
32,661
$
32,341
$
33,494
$
34,448
$
35,273
$
65,001
$
72,648
Acquisition marks
2,391
2,370
2,475
2,959
2,884
4,761
5,512
PPP interest and fees
1
1
1
1
2
2
3
Adjusted and annualized net interest income
121,076
119,880
124,072
125,952
129,548
120,476
134,266
Average earning assets
4,825,532
4,796,922
4,816,409
4,820,888
4,830,910
4,811,227
4,848,489
Less PPP average balances
171
213
229
247
277
192
271
Adjusted average earning assets
4,825,361
4,796,709
4,816,180
4,820,641
4,830,633
4,811,035
4,848,218
Net interest margin excluding marks and PPP interest and fees
2.51
%
2.50
%
2.58
%
2.61
%
2.68
%
2.50
%
2.77
%
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240723596416/en/
Farmers National Banc Corp. Kevin J. Helmick, President and CEO
330.533.3341 Email: exec@farmersbankgroup.com
Farmers National Banc (NASDAQ:FMNB)
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