Famers National Bank reports healthy first-quarter earnings

Staff report

CANFIELD

Farmers National Banc Corp., the parent company of Farmers National Bank of Canfield, reported Wednesday the same amount in profits for the first quarter of 2015 compared with the same period a year ago.

The bank reported a profit of $2.2 million, or $0.12 per diluted share, in the first quarter of 2015 compared with $2.2 million, or $0.12 per diluted share, for the first quarter 2014.

In comparing the first-quarter’s results to the most- recent previous quarter, net income of $2.2 million increased 3 percent compared with $2.1 million for the fourth quarter of 2014.

“We are pleased with our improvement in net income for the quarter ended March 31, 2015,” said Kevin J. Helmick, president and CEO of Farmers. “The increase in earnings is a result of the growth of our loan portfolio, the continued improvement in our level of noninterest income and stable asset quality. We have also experienced an increase in our net interest margin, mainly as a result of lower funding costs.”

Total loans increased by 7.6 percent to $673.8 million in the first quarter of 2015 from $626.2 million in the first quarter of 2014. Most of the increase in loans has occurred in the commercial, industrial and residential real-estate loan portfolios.

The company said nonperforming assets remain at a safe level at 0.71 percent of total assets.

Noninterest income increased 17.6 percent to $4 million for the first quarter of 2015 compared with $3.4 million during the same period a year ago.

Helmick said officials are excited about the merger with National Bancshares Corp. in Orrville.

The acquisition announcement came in late January with the transaction valued at about $74 million and would increase Farmers’ asset base by about 50 percent to $1.7 billion. The merger increases its loans to $1.1 billion, and $1.3 billion in deposits.

“We believe that the combination of our company with National Bancshares, a strong community bank headquartered in Orrville, Ohio, will create a top- performing Midwest community bank that has the scale, product depth and efficiencies to compete effectively and deliver best-in-class service to our combined customers, while creating long-term value for our shareholders,” Helmick said. “This transaction is an important step in the long-term strategy to expand our footprint and enhance profitability.”