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Farmers posts second-quarter earnings, talks mergers
By Kalea Hall
YOUNGSTOWN
One-time expenses from acquisition activities recently made by Canfield-based Farmers National Banc Corp. led the bank to post a significant difference in this year’s second quarter compared with last year’s.
On Monday, Farmers reported net income for the second quarter was $812,000 or $0.04 per diluted share. Second-quarter earnings in 2014 were $2.4 million or $0.13 per diluted share.
Net income this quarter would have been $2.4 million or $0.12 per share if not for the one-time expenses from recent acquisitions.
In comparing the second-quarter’s results with the most-recent previous quarter, net income, excluding acquisition activities, increased $140,000 or 6 percent.
Net income for the six months ending June 30 was $3 million or $0.16 per share, compared with $4.5 million or $0.24 per share for the same period in 2014. Excluding expenses related to acquisition activities, net income would have been $4.7 million or $0.25 per share.
“We are overall pleased with the quarter,” said Kevin J. Helmick, president and chief executive officer of the thrift.
The bank closed its merger with National Bancshares Corp., the holding company of First National Bank of Orr-ville, Ohio, on June 19.
This transaction resulted in the addition of $540 million in assets and 14 branch locations in Wayne, Medina and Stark counties in Ohio.
On June 23, Farmers entered into a merger agreement with Tri State 1st Banc Inc. of East Liverpool, and its subsidiary, First National Community Bank, which has five banking locations – four in Columbiana County and one in western Pennsylvania.
The transaction is expected to close during the fourth quarter.
Helmick said the bank has been strategic about the mergers it has made this year, which are the first mergers since 2000 when the bank merged with Security Financial Corp. of Niles.
“We have planned for it for a number of years,” he said. “We are strong and healthy.”
The bank is entering the Pennsylvania market with its proposed merger with Tri State.
Before the mergers, the bank had $1.1 billion in asset size, was in six counties and had 20 offices. Now, the bank will have $1.8 billion in asset size, nine counties and 38 offices.
“We are pleased to have closed our merger with National Bancshares Corp. and to have announced our proposed merger with Tri-State during the second quarter,” Helmick said in a statement.
Total loans were $1.13 billion June 30, 2015, compared with $637.8 million June 30, 2014.
Noninterest income increased 16.1 percent to $4.4 million for the quarter ending June 30, 2015, compared with $3.8 million in 2014.