Farmers reports $2.3 million profit

Staff report

Farmers National Bank reported a second-quarter profit of $2.3 million, or 12 cents per share, Wednesday.

The company’s profits increased 8 percent from the previous year’s second- quarter earnings of $2.1 million.

Wednesday’s earnings report means 118 consecutive quarters of profit for the bank. Deposits increased by 15 percent from 2011.

Farmers also reported an improved credit quality with provisions for loan losses decreasing by $675,000 and loan delinquencies dropping by $2.3 million.

John S. Gulas, Farmers chief executive, said the positive earnings reflect the bank’s strategy to “diversify revenue.”

Shareholder equity was up 10 percent from the previous year, and net loans increased to $5.6 million compared with the second quarter of 2011.

The company attributed the increase in deposits to recent developments in Marcellus and Utica shale activity throughout the region.