FNB reports quarterly gain

Staff report

CANFIELD

Farmers National Bank reported its 119th consecutive quarter of positive earnings in the third quarter, which included a 5 percent increase in income over the same time last year.

The net income for Farmers was $2.5 million from July through September, up from $2.4 million for the same time period in 2011. Additional deposits increased by 12 percent in the third quarter over the previous year, according to Farmers financial results reported Wednesday.

“We are pleased with our 5 percent improvement in net income for the third quarter of 2012 compared to the same quarter in 2011. It is important to note that noninterest income increased 22 percent during the same three-month period, which is consistent with our strategy to diversify revenue,” said John Gulas, president and CEO of Farmers. “We are encouraged that asset quality continues to improve, evidenced by the reduction in the provision for loan losses from $700,000 for the three-month period ending Sept. 30, 2011 to $325,000 for the three months ended Sept. 30, 2012.”

Net interest income improved to $27.6 million through the end of September, an increase from $27.5 million. The annualized net-interest margin to average earning assets on a fully taxable equivalent basis was 3.8 percent through the end of the third quarter down from 4.08 percent last year through the same time last year.

Nonperforming loans represented 1.51 percent of total loans at the end of the third quarter, down from the 1.92 percent reported by Farmers at the same time last year. Loans that are between 30 and 89 days delinquent decreased 6.3 percent to $3.2 million since Sept. 30, 2011.