Farmers National Banc Corp. (FMNB) has reported a 68.91 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $5.36 million, or $0.20 a share in the quarter, compared with $3.18 million, or $0.12 a share for the same period last year. On an adjusted basis, net profit for the quarter was $5.38 million, when compared with $4.32 million in the last year period.
Revenue during the quarter grew 8.40 percent to $22.38 million from $20.64 million in the previous year period. Net interest income for the quarter rose 5.06 percent over the prior year period to $17.29 million. Non-interest income for the quarter rose 17.41 percent over the last year period to $6.08 million.
Net interest margin contracted 4 basis points to 3.95 percent in the quarter from 3.99 percent in the last year period. Efficiency ratio for the quarter improved to 60.37 percent from 73.07 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Kevin J. Helmick, president and chief executive officer, stated, "We are happy to report a record year in net income, which has been achieved through the successful integration of our recent mergers, our 10% organic loan growth, and our continued focus on increasing noninterest income and careful management of noninterest expenses."
Assets outpace liabilities growth
Total assets stood at $1,966.11 million as on Dec. 31, 2016, up 5.15 percent compared with $1,869.90 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,752.90 million as on Dec. 31, 2016, up 4.85 percent from $1,671.86 million on Dec. 31, 2015.
Loans outpace deposit growth
Net loans stood at $1,416.78 million as on Dec. 31, 2016, up 10.01 percent compared with $1,287.89 million on Dec. 31, 2015. Deposits stood at $1,524.76 million as on Dec. 31, 2016, up 8.21 percent compared with $1,409.05 million on Dec. 31, 2015.
Loans to deposits ratio was 93.63 percent for the quarter, up from 92.04 percent for the previous year quarter.
Noninterest-bearing deposit liabilities were $366.87 million or 24.06 percent of total deposits on Dec. 31, 2016, compared with $314.65 million or 22.33 percent of total deposits on Dec. 31, 2015.
Investments stood at $370 million as on Dec. 31, 2016, down 6.17 percent or $24.32 million from year-ago. Shareholders equity stood at $213.22 million as on Dec. 31, 2016, up 7.66 percent or $15.17 million from year-ago.
Return on average assets moved up 40 basis points to 1.08 percent in the quarter from 0.68 percent in the last year period. At the same time, return on average equity increased 323 basis points to 9.74 percent in the quarter from 6.51 percent in the last year period.
Nonperforming assets moved down 24.02 percent or $2.74 million to $8.65 million on Dec. 31, 2016 from $11.39 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.44 percent in the quarter, down from 0.61 percent in the last year period.
Capital ratios improve
Farmers National Banc Corp. recorded an improvement in capital ratios during the quarter. Tier-1 leverage ratio stood at 9.32 percent for the quarter, up from 9.21 percent for the previous year quarter. Equity to assets ratio was 10.84 percent for the quarter, up from 10.59 percent for the previous year quarter. Book value per share was $7.88 for the quarter, up 7.21 percent or $0.53 compared to $7.35 for the same period last year.
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