Farmers National Banc Corp. (FMNB)

[56Chevy]

Farmers National Banc Corp. Reports Results for Fourth Quarter 2012

Date : 01/31/2013 @ 4:05PM
Source : Business Wire
Stock : Farmers National Banc Corp. (MM) (FMNB)
Quote : $6.53 -0.1 (-1.51%) @ 5:00PM

Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported financial results for the three and twelve months ended December 31, 2012.

Net income for the twelve months ended December 31, 2012 was $9.9 million, compared to $9.2 million for the same twelve month period in 2011. On a per share basis, net income for the twelve months ended December 31, 2012 was $0.53, an increase of 6% compared to the same twelve month period in 2011. The tangible book value increased to $6.11 per share at December 31, 2012, compared to $5.76 per share at December 31, 2011, mainly as a result of retained net income. Farmers’ total assets reported at December 31, 2012 were $1.14 billion, representing a 6.7% increase compared to $1.07 billion in total assets recorded at December 31, 2011. Net income for the three months ended December 31, 2012 was $2.6 million, compared to $3.0 million for the same three month period in 2011. On a per share basis, net income for the fourth quarter ended December 31, 2012 was $0.14 per diluted share, compared to $0.16 for the fourth quarter ended December 31, 2011 and $0.13 for the third quarter ended September 30, 2012.

John S. Gulas, President and CEO, stated “We are pleased with our 8% improvement in net income for 2012 compared to 2011. It is important to note that noninterest income excluding security gains increased 7% in 2012 compared to 2011, which is consistent with our strategy to diversify revenue. We are encouraged that asset quality continues to improve, evidenced by the reduction in the provision for loan losses from $3.7 million for the twelve month period ending December 31, 2011 to $725 thousand for the twelve months ended December 31, 2012. We have also seen a decline in our non-performing loans, from $11.0 million at December 31, 2011 to $8.2 million at December 31, 2012. Even with the reduction in our provision for loan losses, because of improved credit quality, we continue to maintain strong reserves against probable incurred losses.”

Net loans increased $17.0 million (or 3%) in comparing the fourth quarter of 2012 to the same quarter of 2011. Most of the loan growth in the past twelve months has occurred in the commercial and industrial loan portfolio. Net loans were reported at $579.0 million at December 31, 2012, which compares to $562.0 million at the same time in 2011. Deposits increased $78.9 million, or 9.4%, from $840.1 million at December 31, 2011 to $919.0 million at December 31, 2012, as customers continue to seek the safety and security of FDIC insured deposit accounts. The Company’s deposits are also being affected positively by the recent development of the Marcellus and Utica shale activity within the local region. At December 31, 2012, the Company had deposits totaling approximately $58 million that customers have received from energy exploration companies from the leasing or sale of mineral rights. (this is simular to what has happened in North Dakota with BNCC and the Bakken shale land owners with mineral rights.)

Stockholders’ equity totaled $120.8 million, or 10.6% of total assets, at December 31, 2012, an increase of $6.3 million, or 5.6%, compared to $114.4 million at December 31, 2011. The increase is mainly the result of net income, offset by cash dividends paid to shareholders during the past twelve months. Shareholders received a total of $0.18 per share in cash dividends paid in the past four quarters, including two special $0.03 cash dividends paid on February 28 and December 31, 2012. Book value per share increased 5.4% from $6.10 per share at December 31, 2011 to $6.43 per share at December 31, 2012.

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*I do not own shares of FMNB at this time.