Farmers National Banc Corp. Reports Earnings for Third Quarter 2005.CANFIELD, Ohio Canfield is a city located in Mahoning County, Ohio, United States, at the intersection of U.S. Route 224 and State Route 46, about ten miles southwest of Youngstown. As of the 2000 census, the city population was 7,374. -- Farmers National Banc Corp. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :FMNB), today reported net income for the three months ended September September: see month. 30, 2005 of $2.028 million, compared with $1.995 million in the preceding quarter and $2.415 million in the prior-year quarter. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of were $0.16 for the current quarter compared with $0.15 for the preceding quarter and $0.19 for the third quarter in 2004. For the nine months ended September 30, 2005, Farmers National Banc Corp. recorded net income of $6.197 million, or $0.48 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $7.047 million, or $0.54 per diluted share in net income for the same nine month period in 2004. The company's total assets ended the third quarter of 2005 at $833 million, an increase of $23 million over the $810 million in total assets recorded at September 30, 2004, and up approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $500 thousand from the $832.5 million in assets as of June June: see month. 30, 2005. Net loans at September 30, 2005 were $505.8 million, up 3.8% over the $487.1 million in net loans at September 30, 2004 and 2.8% over the $491.8 million in net loans at the end of the second quarter of 2005. Net Interest Income -- Net interest income was $6.833 million for the third quarter of 2005, which compares to $6.896 million in the preceding quarter and $7.262 million in the third quarter of 2004. For the nine months ended September 30, 2005, the net interest income was $20.6 million compared to $21.9 million for the same nine-month period in 2004. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net interest margin, on a fully taxable equivalent basis, was 3.72% for the nine months ended September 30, 2005, compared to 3.96% at this same time in 2004, and 3.76% through June 30, 2005. While the company was able to increase the balances and yields on average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin during this past three months, the major factor contributing to the decline in the net interest margin continues to be the competitive pressure and the flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. yield curve between short and long term interest rates. Non-Interest Income -- Non-interest income, including gains on the sale of securities, was $1.2 million in the third quarter of 2005, compared to $929 thousand in the preceding quarter and $1.1 million in the third quarter in 2004. For the nine month period ended September 30, 2005, non-interest income was $3.3 million, an increase of $547 thousand, or 19.7% over the $2.8 million reported for the first nine months in 2004. Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. -- Non-interest expenses totaled $5.066 million for the third quarter of 2005, which compares to $4.747 million for the third quarter of 2004 and $5.165 million for the second quarter of 2005. For the nine months ended September 30, 2005, operating expenses increased by 5.6% from $14.3 million in 2004 to $15.1 million for the nine months ended September 30, 2005. The company's efficiency ratio for the nine months ended September 30, 2005 was 63.83%, as compared to 58.08% in the prior year. The year-over-year increases in operating expenses can be partially attributed to normal growth and expansion reasons, but the majority of the increase during the past year is a direct result of increases in the employee medical group insurance expenses. Asset Quality -- At the end of the third quarter, the non-performing loans/total loan ratio was .31%, compared to .33% at this same time in 2004. As of September 30, 2005, total non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. were $1.593 million, compared to $1.609 million at this same time in 2004. On September 30, 2005, the ratio of the allowance for loan losses (ALLL ALLL Allowance for Loan and Lease Losses ) to non-performing loans was 386%, compared to 382% in September 2004 and 322% in June 2005. Net chargeoffs during the past quarter were $267 thousand and management provided a total of $260 thousand to the ALLL. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, the Company realized an annualized net charge off/average loan ratio of .14%, compared to .30% at the end of 2004. Consistent with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. , the company uses a systematic methodology to estimate its allowance for loan losses. The methodology takes into consideration not only charge-offs but also the quality of the company's loans and the types and amounts of loans comprising the loan portfolio, while considering adjustments and estimates based on various environmental factors. As of September 30, 2005, the ALLL/total loan ratio was 1.20% compared to 1.24% at the end of the second quarter of 2005. Farmers National Banc Corp., is the bank holding company for the Farmers National Bank of Canfield can·field n. Games A form of solitaire. [After Richard Albert Canfield (1855-1914), American gambler.] Noun 1. . Farmers operates sixteen banking offices throughout Mahoning Mahoning (məhōn`ĭng), river, c.90 mi (140 km) long, rising in NE Ohio, E of Canton. It flows northwest to Alliance, then northeast past Warren, where it turns southeast to flow past Youngstown into NW Pennsylvania and joins the Shenango , Trumbull Trumbull, town (1990 pop. 32,016), Fairfield co., SW Conn.; settled in the 1660s, inc. 1797. Largely residential, the town has some light industry. The Nasdaq's data center is there. and Columbiana Columbiana is the name of several places in the United States of America:
This earnings announcement presents a brief analysis of the assets and liability structure of the Corporation and a brief discussion of the results of operations for each of the periods presented. Certain statements in this announcement that relate to Farmers National Banc Corp.'s plans, objectives, or future performance may be deemed to be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are based on management's current expectations. Actual strategies and results in future periods may differ materially from those currently expected because of various risks and uncertainties. Among the important factors that could cause actual results to differ materially are asset quality, interest rates, changes in the mix of the company's business, competitive pressures, general economic conditions and the risk factors detailed in the company's other periodic reports and registration statements filed with the Securities and Exchange Commission.
Farmers National Banc Corp. and Subsidiary
Consolidated Financial Highlights
(Amounts in thousands, except per share data)
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Consolidated Statements of For the Three For the Nine
Income Months Ended Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2005 2004 2005 2004
Total interest income $10,818 $10,445 $31,635 $31,371
Total interest expense 3,985 3,183 10,995 9,510
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Net interest income 6,833 7,262 20,640 21,861
Provision for loan losses 260 240 529 540
Other income 1,188 1,063 3,323 2,776
Other expense 5,066 4,747 15,111 14,310
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Income before income taxes 2,695 3,338 8,323 9,787
Income taxes 667 923 2,126 2,740
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Net income $2,028 $2,415 $6,197 $7,047
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Basic earnings per share $0.16 $0.19 $0.48 $0.55
Diluted earnings per share 0.16 0.19 0.48 0.54
Cash dividends 2,079 2,025 6,232 6,071
Cash dividends per share 0.16 0.16 0.48 0.47
Book value per share 5.93 6.15 5.93 6.15
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Consolidated Statements of Sept. 30, Sept. 30,
Financial Condition 2005 2004
Assets
Cash and cash equivalents $30,311 $30,706
Securities available for sale 272,820 269,067
Loans 511,896 493,232
Less allowance for loan
losses 6,144 6,143
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Net Loans 505,752 487,089
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Other assets 24,102 23,173
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Total Assets $832,985 $810,035
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Liabilities and Stockholders'
Equity
Deposits $627,069 $618,683
Other interest-bearing
liabilities 125,870 107,921
Other liabilities 2,551 3,758
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Total liabilities 755,490 730,362
Stockholders' Equity: 77,495 79,673
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Total Liabilities and
Stockholders' Equity $832,985 $810,035
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Period-end shares outstanding 13,061 12,704
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Ratios
Return on Average Assets
(Annualized) 1.00% 1.16%
Return on Average Equity
(Annualized) 10.63 11.89
Efficiency Ratio (Year-to-
date) 63.83 58.08
Capital to Asset Ratio 9.30 9.84
Dividends to Net Income (Year-
to-date) 100.56 86.15
Loans to Assets 61.45 60.89
Net Loans to Deposits 80.65 78.73
Allowance for Loan Losses to
Total Loans 1.20 1.25
Non-performing Loans to Total
Loans 0.31 0.33
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Without audit.
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