Farmers reports fourth quarter and full year decreases in net profit

Staff report

Farmers National Banc Corp. on Wednesday reported decreases in net income for the fourth quarter and full year 2013.

In the fourth quarter, net income fell to $2.3 million, or 12 cents per diluted share, compared with $2.6 million, or 14 cents per diluted share, during the same period the previous year.

On the year, Farmers National reported $7.8 million in net income, down from $9.9 million in 2012.

The company blamed some of last year’s falloff on $1.3 million in charges related to severance costs for terminated employees. Without those expenses, 2013 net income would have been $8.6 million, the bank said.

Some highlights included gains in the bank’s efficiency ratio and net loans.

“The improvement in our efficiency ratio is consistent with our strategy to increase fee income and decrease noninterest expenses. We are also pleased to report that net loans increased 7.5 percent during 2013,” Kevin J. Helmick, president and CEO, said in a statement. “Most of this growth came from our commercial real estate, residential real estate and indirect loan portfolios.”

Farmers announced it will expand to the greater Cleveland market with the opening of a branch office in Rocky River.

The expansion spurred the hiring of David E. Simko as vice president of commercial banking and Ted Grabowski as vice president and private client relationship manager.