Farmers National Bank reports 1st quarter income increase

Staff report

YOUNGSTOWN

Farmers National Banc Corp., the parent of Farmers National Bank, reported increases in net income and loans for the first quarter of this year.

The income rose 9 percent to $2.2 million from $2 million during the same period last year.

The company said loans, totaling $626.2 million, increased 5.7 percent from the first quarter of 2013, driven by disciplined underwriting in its lending and credit team.

Farmers saw gains in its net interest margin and noninterest income.

“It is important to note that noninterest income has increased 19.4 percent in comparing the first quarter of 2014 to the first quarter of 2013, while noninterest expenses increased only 0.58 percent,” Kevin J. Helmick, president and CEO, said in a statement Wednesday.

On the back of a cost-reduction program that closed two retail branches, Farmers increased its efficiency ratio to 72.57 percent in the first quarter.

Farmers also reported it expects to see growth in loan production going forward.

“Although loan production was moderate in the first quarter of 2014, we look forward to the ensuing quarters as the economic outlook begins to improve,” Helmick said. “We also continue our discipline of closely monitoring levels of noninterest expense while growing noninterest revenues.”