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Farmers National Bank reports $9 million profit for 2014
CANFIELD
Farmers National Banc Corp. reported a profit of $2.1 million, or 12 cents per share, for the fourth quarter of 2014 compared with a profit of $2.3 million, or 12 cents per share, in the fourth quarter of 2013.
Net income for 2014 was $9 million, a 15.2 percent increase compared with $7.8 million for 2013.
“Our improvement in net income for the year ended December 31 is a result of a 10 percent increase in noninterest income, a 2.3 percent decrease in noninterest expenses and a $440,000 improvement in net interest income,” Kevin J. Helmick, president and CEO, said in a statement.
Noninterest income, which includes deposits and transaction fees, increased to $15.3 million for 2014 compared with $13.9 million in 2013. According to the company, it has remained committed to managing the level of noninterest expenses. Noninterest expenses, or fixed operating costs, were $38.2 million for 2014, less than the $39.1 million reported in 2013.
The net interest income was $36.3 million in 2014 compared with $35.9 million in 2013, a 1.2 percent increase.
Loans in the fourth quarter of 2014 grew by 5.3 percent to $663.9 million compared with $630.7 million in the fourth quarter of 2013.
The fourth-quarter earnings were released the day after Farmers announced its merger with National Bancshares Corp., the parent company of First National Bank of Orrville. The transaction is valued at about $74 million with all 14 branches of First National to become branches of Farmers, giving it a total of 33 banking locations in Ohio. The company expects the transaction to close in the first half of this year.
“We are excited about our recently announced merger with National Bancshares Corp.,” Helmick said. “This transaction is an important step in the long-term strategy to expand our footprint and enhance profitability.”
Farmers is the seventh-largest bank in the Youngstown area.