Farmers reports strong income in first quarter

CANFIELD — In marking its 165th consecutive quarter of profitability, Canfield-based Farmers National Banc Corp. reported a first quarter net income of $11.2 million, compared with $7.1 million for the same three-month period last year.

That translates to 30 cents per share in the first quarter that ended March 31, compared with 19 cents per share March 31, 2023.

Net income for the latest quarter included a pretax item of $2.1 million for a loss on the sale of securities. Excluding the loss, net income was $12.9 million, or 34 cents per share.

Farmers is the holding company for Farmers National Bank.

“I am encouraged by the solid start to 2024 as we focus on leveraging the investments we made over the past year, pursuing actions to strategically improve our balance sheet, and maintaining the company’s longstanding commitment to strong asset quality. While we expect the economic and interest rate environment to remain fluid in 2024, we believe we are well-positioned to help our local communities build a better future by continuing to provide our customers with leading financial services,” Kevin J. Helmick, president / CEO, said.

At the end of the quarter, Farmers reported assets of $5.08 billion, which was unchanged from Dec. 31. Loans decreased from $3.2 billion to $3.1 billion over the period, but the company predicts loan growth of 1% to 2% in 2024 “reflecting a more challenging economic and interest rate environment, as well as the company’s focus on maintaining excellent asset quality,” an earnings report states.

Deposits, meanwhile, increased to $4.2 billion at March 31, compared with $4.1 billion at Dec 31, 2023. Noninterest-bearing deposits declined $49.2 million during the first quarter as interest-bearing deposits increased $69.9 million, showing “customers continue to seek higher rates on their deposit balances, but the pace of activity has slowed somewhat,” the report states.

Earlier in May, the company’s board announced the second quarter cash dividend for its common stock was 17 cents per share for shareholders of record on June 14. The dividend is payable June 28.

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