Financial News
Farmers National Banc Corp. Announces 2019 Second Quarter Financial Results
Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported financial results for the three months ended June 30, 2019.
Net income for the three months ended June 30, 2019 was $8.5 million, or $0.31 per diluted share, which compares to $8.1 million, or $0.29 per diluted share, for the three months ended June 30, 2018 and $8.4 million or $0.30 per diluted share for the linked quarter. Annualized return on average assets and return on average equity were 1.45% and 12.34%, respectively, for the three month period ending June 30, 2019, compared to 1.47% and 13.28% for the same three month period in 2018, and 1.45% and 12.71% for the linked quarter. Farmers’ return on average tangible equity (Non-GAAP) was 14.59% for the quarter ended June 30, 2019 compared to 16.24% for the same quarter in 2018 and 14.99% for the linked quarter.
Net income for the six months ended June 30, 2019 was $16.9 million, or $0.61 per diluted share, compared to $15.8 million or $0.57 per diluted share for the same six month period in 2018. Return on average assets and return on average equity were 1.45% and 12.54%, respectively, for the six months ended June 30, 2019, compared to 1.46% and 13.13% for the same period in 2018.
Kevin J. Helmick, President and CEO, stated, “As a result of 9% loan growth over the past twelve months, 11% increase in noninterest income, careful management of our noninterest expenses and continued strong asset quality, we are pleased to report a 6% increase in net income compared to the same quarter one year ago. We are also pleased to report a 29% increase in cash dividends paid to our shareholders, from $0.07 per share paid in the second quarter of 2018 to $0.09 paid for the same quarter in 2019.”
2019 Second Quarter Financial Highlights
- Loan growth
Total loans were $1.78 billion at June 30, 2019, compared to $1.64 billion at June 30, 2018, representing an increase of 8.6%. The increase in loans is a direct result of Farmers’ focus on loan growth utilizing talented lending and credit team, while adhering to a sound underwriting discipline. The increase in loans has occurred in the commercial, commercial real estate, residential real estate and agricultural loan portfolios. Loans now comprise 79.6% of the Bank's average earning assets for the quarter ended June 30, 2019, an improvement compared to 78.6% for the same period in 2018. This improvement, along with the growth in earning assets, has resulted in a 14.2% increase in tax equated loan income in the second quarter of 2019 compared to the same quarter in 2018.
- Loan quality
Non-performing assets to total assets remain at a low level, currently at 0.30%. Early stage delinquencies also continue to remain at low levels, at $10.2 million, or 0.57% of total loans, at June 30, 2019. Net charge-offs for the current quarter were $305 thousand, compared to $536 thousand in the same quarter in 2018 and total net charge-offs as a percentage of average net loans outstanding is only 0.07% for the quarter ended June 30, 2019.
- Net interest margin
The net interest margin for the three months ended June 30, 2019 was 3.84%, a 9 basis points decrease from the quarter ended June 30, 2018, but a 3 basis points increase from the linked quarter. In comparing the second quarter of 2019 to the same period in 2018, asset yields increased 25 basis points, while the cost of interest-bearing liabilities increased 47 basis points. Most of this increase was the result of higher rates paid on interest-bearing checking accounts and time deposits, consistent with increases in the federal funds sold rate. The net interest margin is impacted by the additional accretion as a result of the discounted loan portfolios acquired in the previous mergers, which increased the net interest margin by 5 basis points for the quarters ended June 30, 2019 and 2018.
- Noninterest income
Noninterest income increased 10.9% to $7.0 million for the quarter ended June 30, 2019 compared to $6.3 million in the same quarter in 2018. Gains on the sales of mortgage loans increased $449 thousand or 74%, other operating income increased $66 thousand or 18%, trust fees increased $81 thousand or 5% and service charges on deposit accounts increased $108 thousand or 11% in comparing the second quarter of 2019 to the same quarter in 2018. These increases were offset by a decrease of securities gains of $45 thousand or 166.7% and retirement plan consulting fees of $15 thousand or 3.2%.
- Noninterest expenses
Farmers has remained committed to managing the level of noninterest expenses. Total noninterest expenses for the second quarter of 2019 increased 8.1% to $16.7 million compared to $15.5 million in the same quarter in 2018, primarily as a result of an increase in salaries and employee benefits of $438 thousand, offset by a $140 thousand decrease in FDIC insurance expense. Included in other operating expenses in the second quarter of 2019 were $505 thousand in expenses that management does not expect to occur in future quarters. Annualized noninterest expenses measured as a percentage of quarterly average assets rose slightly from 2.82% in the second quarter of 2018 to 2.83% in the second quarter of 2019.
- Efficiency ratio
The efficiency ratio for the quarter ended June 30, 2019 increased slightly to 58.28% compared to 57.31% for the same quarter in 2018. The improvement in net interest income and noninterest income in the second quarter of 2019 was offset by a higher level of noninterest expenses as explained in the preceding paragraphs.
2019 Outlook
Mr. Helmick added, “We continue to build on the momentum gained in the first quarter with another three months of pleasing performance. We are extremely proud of our committed employees that continue to deliver strong results for our stakeholders and remain committed to our community banking approach and culture.”
Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $2.4 billion in banking assets. Farmers National Banc Corp.’s wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 41 banking locations in Mahoning, Trumbull, Columbiana, Stark, Wayne, Medina and Cuyahoga Counties in Ohio and Beaver County in Pennsylvania, Farmers Trust Company, which operates four trust offices and offers services in the same geographic markets, and National Associates, Inc. Total wealth management assets under care at June 30, 2019 are $2.5 billion. Farmers National Insurance, LLC and Bowers Insurance Agency, Inc., wholly-owned subsidiaries of The Farmers National Bank of Canfield, offer a variety of insurance products.
Non-GAAP Disclosure
This press release includes disclosures of Farmers’ tangible common equity ratio, return on average tangible assets, return on average tangible equity and net income excluding costs related to acquisition activities, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers’ marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the tables following Consolidated Financial Highlights below.
Forward-Looking Statements
This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Farmers’ financial condition, results of operations, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management’s current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Farmers’ control. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions, as well as any statements related to future expectations of performance or conditional verbs, such as “will,” “would,” “should,” “could” or “may.” Farmers’ actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Farmers’ actual results to differ materially from those described in the forward-looking statements can be found in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2018, which has been filed with the Securities and Exchange Commission (SEC) and is available on Farmers’ website (www.farmersbankgroup.com) and on the SEC’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Farmers does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
Farmers National Banc Corp. and Subsidiaries | ||||||||
Consolidated Financial Highlights | ||||||||
(Amounts in thousands, except per share results) Unaudited | ||||||||
Consolidated Statements of Income | For the Three Months Ended | For the Six Months Ended | ||||||
June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | Percent | |
2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | Change | |
Total interest income | $25,529 | $24,679 | $24,447 | $23,563 | $22,474 | $50,208 | $43,756 | 14.7% |
Total interest expense | 5,038 | 4,714 | 4,373 | 3,644 | 2,912 | 9,752 | 5,248 | 85.8% |
Net interest income | 20,491 | 19,965 | 20,074 | 19,919 | 19,562 | 40,456 | 38,508 | 5.1% |
Provision for loan losses | 750 | 550 | 525 | 950 | 750 | 1,300 | 1,525 | -14.8% |
Noninterest income | 6,994 | 6,520 | 6,705 | 6,478 | 6,306 | 13,514 | 12,316 | 9.7% |
Acquisition related costs (income) | (19) | 0 | (180) | 0 | 0 | (19) | 25 | -176% |
Other expense | 16,723 | 15,977 | 16,163 | 16,180 | 15,458 | 32,700 | 30,529 | 7.1% |
Income before income taxes | 10,031 | 9,958 | 10,271 | 9,267 | 9,660 | 19,989 | 18,745 | 6.6% |
Income taxes | 1,488 | 1,570 | 1,585 | 1,183 | 1,587 | 3,058 | 2,946 | 3.8% |
Net income | $8,543 | $8,388 | $8,686 | $8,084 | $8,073 | $16,931 | $15,799 | 7.2% |
Average diluted shares outstanding | 27,931 | 27,983 | 27,962 | 28,002 | 27,979 | 27,950 | 27,949 | |
Basic and diluted earnings per share | 0.31 | 0.30 | 0.31 | 0.29 | 0.29 | 0.61 | 0.57 | |
Cash dividends | 2,504 | 2,500 | 2,223 | 2,222 | 1,935 | 5,004 | 3,870 | |
Cash dividends per share | 0.09 | 0.09 | 0.08 | 0.08 | 0.07 | 0.18 | 0.14 | |
Performance Ratios | ||||||||
Net Interest Margin (Annualized) | 3.84% | 3.81% | 3.80% | 3.86% | 3.93% | 3.83% | 3.92% | |
Efficiency Ratio (Tax equivalent basis) | 58.28% | 57.83% | 57.73% | 58.70% | 57.31% | 58.06% | 57.64% | |
Return on Average Assets (Annualized) | 1.45% | 1.45% | 1.50% | 1.42% | 1.47% | 1.45% | 1.46% | |
Return on Average Equity (Annualized) | 12.34% | 12.71% | 13.65% | 12.80% | 13.28% | 12.54% | 13.13% | |
Dividends to Net Income | 29.31% | 29.80% | 25.59% | 27.49% | 23.97% | 29.56% | 24.50% | |
Other Performance Ratios (Non-GAAP) | ||||||||
Return on Average Tangible Assets | 1.47% | 1.46% | 1.54% | 1.46% | 1.50% | 1.47% | 1.48% | |
Return on Average Tangible Equity | 14.59% | 14.99% | 16.68% | 15.70% | 16.24% | 14.82% | 15.99% | |
Return on Average Tangible Equity excluding acquisition costs | 14.55% | 14.99% | 16.34% | 15.70% | 16.24% | 14.80% | 16.01% | |
Consolidated Statements of Financial Condition | ||||||||
June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | ||||
2019 | 2019 | 2018 | 2018 | 2018 | ||||
Assets | ||||||||
Cash and cash equivalents | $64,007 | $69,672 | $57,926 | $75,635 | $76,623 | |||
Securities available for sale | 424,252 | 403,770 | 402,190 | 389,996 | 388,890 | |||
Equity securities | 7,222 | 7,460 | 7,130 | 6,892 | 6,344 | |||
Loans held for sale | 1,093 | 2,360 | 1,237 | 1,428 | 1,987 | |||
Loans | 1,780,504 | 1,743,651 | 1,735,840 | 1,691,532 | 1,639,191 | |||
Less allowance for loan losses | 14,222 | 13,777 | 13,592 | 13,377 | 12,764 | |||
Net Loans | 1,766,282 | 1,729,874 | 1,722,248 | 1,678,155 | 1,626,427 | |||
Other assets | 143,093 | 142,938 | 137,999 | 140,572 | 137,668 | |||
Total Assets | $2,405,949 | $2,356,074 | $2,328,730 | $2,292,678 | $2,237,939 | |||
Liabilities and Stockholders' Equity | ||||||||
Deposits | ||||||||
Noninterest-bearing | $415,935 | $415,131 | $421,950 | $426,689 | $420,991 | |||
Interest-bearing | 1,584,700 | 1,539,202 | 1,377,770 | 1,332,022 | 1,229,346 | |||
Total deposits | 2,000,635 | 1,954,333 | 1,799,720 | 1,758,711 | 1,650,337 | |||
Other interest-bearing liabilities | 96,978 | 109,348 | 250,792 | 270,273 | 322,565 | |||
Other liabilities | 23,511 | 19,442 | 15,898 | 14,905 | 17,527 | |||
Total liabilities | 2,121,124 | 2,083,123 | 2,066,410 | 2,043,889 | 1,990,429 | |||
Stockholders' Equity | 284,825 | 272,951 | 262,320 | 248,789 | 247,510 | |||
Total Liabilities | ||||||||
and Stockholders' Equity | $2,405,949 | $2,356,074 | $2,328,730 | $2,292,678 | $2,237,939 | |||
Period-end shares outstanding | 27,768 | 27,777 | 27,792 | 27,777 | 27,641 | |||
Book value per share | $10.26 | $9.83 | $9.44 | $8.96 | $8.95 | |||
Tangible book value per share (Non-GAAP)* | 8.70 | 8.26 | 7.86 | 7.36 | 7.34 | |||
* Tangible book value per share is calculated by dividing tangible common equity by average outstanding shares | ||||||||
Capital and Liquidity | ||||||||
Common Equity Tier 1 Capital Ratio (a) | 12.31% | 12.37% | 12.16% | 12.13% | 12.11% | |||
Total Risk Based Capital Ratio (a) | 13.06% | 13.24% | 13.03% | 13.00% | 12.97% | |||
Tier 1 Risk Based Capital Ratio (a) | 12.41% | 12.50% | 12.28% | 12.26% | 12.24% | |||
Tier 1 Leverage Ratio (a) | 10.00% | 10.07% | 9.91% | 9.87% | 9.81% | |||
Equity to Asset Ratio | 11.84% | 11.58% | 11.26% | 10.85% | 11.06% | |||
Tangible Common Equity Ratio (b) | 10.22% | 9.92% | 9.56% | 9.09% | 9.25% | |||
Net Loans to Assets | 73.41% | 73.42% | 73.96% | 73.20% | 72.68% | |||
Loans to Deposits | 89.00% | 89.22% | 96.45% | 96.18% | 99.32% | |||
Asset Quality | ||||||||
Non-performing loans | $7,252 | $7,578 | $7,731 | $9,222 | $8,406 | |||
Other Real Estate Owned | 74 | 208 | 0 | 0 | 0 | |||
Non-performing assets | 7,326 | 7,786 | 7,731 | 9,222 | 8,406 | |||
Loans 30 - 89 days delinquent | 10,203 | 9,082 | 8,877 | 10,626 | 10,636 | |||
Charged-off loans | 588 | 566 | 753 | 544 | 777 | |||
Recoveries | 283 | 201 | 443 | 207 | 241 | |||
Net Charge-offs | 305 | 365 | 310 | 337 | 536 | |||
Annualized Net Charge-offs to | ||||||||
Average Net Loans Outstanding | 0.07% | 0.08% | 0.07% | 0.08% | 0.13% | |||
Allowance for Loan Losses to Total Loans | 0.80% | 0.79% | 0.78% | 0.79% | 0.78% | |||
Non-performing Loans to Total Loans | 0.41% | 0.43% | 0.45% | 0.55% | 0.51% | |||
Allowance to Non-performing Loans | 196.11% | 181.80% | 175.81% | 145.06% | 151.84% | |||
Non-performing Assets to Total Assets | 0.30% | 0.33% | 0.33% | 0.40% | 0.38% | |||
(a) June 30, 2019 ratio is estimated | ||||||||
(b) This is a non-GAAP financial measure. A reconciliation to GAAP is shown below | ||||||||
For the Six Months Ended | ||||||||
Reconciliation of Total Assets to Tangible Assets | ||||||||
June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | ||
2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | ||
Total Assets | $2,405,949 | $2,356,074 | $2,328,730 | $2,292,678 | $2,237,939 | $2,405,949 | $2,237,939 | |
Less Goodwill and other intangibles | 43,298 | 43,625 | 43,952 | 44,305 | 44,661 | 43,298 | 44,661 | |
Tangible Assets | $2,362,651 | $2,312,449 | $2,284,778 | $2,248,373 | $2,193,278 | $2,362,651 | $2,193,278 | |
Average Assets | 2,369,388 | 2,338,792 | 2,301,847 | 2,255,049 | 2,199,960 | 2,354,112 | 2,181,431 | |
Less average Goodwill and other intangibles | 43,508 | 43,840 | 44,185 | 44,541 | 44,893 | 43,674 | 45,070 | |
Average Tangible Assets | $2,325,880 | $2,294,952 | $2,257,662 | $2,210,508 | $2,155,067 | $2,310,438 | $2,136,361 | |
For the Six Months Ended | ||||||||
Reconciliation of Common Stockholders' Equity to Tangible Common Equity | ||||||||
June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | ||
2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | ||
Stockholders' Equity | $284,825 | $272,951 | $262,320 | $248,789 | $247,510 | $284,825 | $247,510 | |
Less Goodwill and other intangibles | 43,298 | 43,625 | 43,952 | 44,305 | 44,661 | 43,298 | 44,661 | |
Tangible Common Equity | $241,527 | $229,326 | $218,368 | $204,484 | $202,849 | $241,527 | $202,849 | |
Average Stockholders' Equity | 277,746 | 267,736 | 252,449 | 250,503 | 243,792 | 272,218 | 242,682 | |
Less average Goodwill and other intangibles | 43,508 | 43,840 | 44,185 | 44,541 | 44,893 | 43,674 | 45,070 | |
Average Tangible Common Equity | $234,238 | $223,896 | $208,264 | $205,962 | $198,899 | $228,544 | $197,612 | |
Reconciliation of Net Income, Excluding Acquisition Related Costs | For the Six Months Ended | |||||||
For the Three Months Ended | ||||||||
June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | June 30, | June 30, | ||
2019 | 2019 | 2018 | 2018 | 2018 | 2019 | 2018 | ||
Net income | $8,543 | $8,388 | $8,686 | $8,084 | $8,073 | $16,931 | $15,799 | |
Acquisition related costs - tax equated | (20) | 0 | (180) | 0 | 0 | (20) | 22 | |
Net income - Adjusted | $8,523 | $8,388 | $8,506 | $8,084 | $8,073 | $16,911 | $15,821 | |
Diluted EPS excluding acquisition costs | $0.31 | $0.30 | $0.30 | $0.29 | $0.29 | $0.61 | $0.57 | |
June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | ||||
End of Period Loan Balances | 2019 | 2019 | 2018 | 2018 | 2018 | |||
Commercial real estate | $614,452 | $589,219 | $579,481 | $562,272 | $523,417 | |||
Commercial | 256,657 | 254,957 | 245,172 | 233,188 | 232,672 | |||
Residential real estate | 493,529 | 488,854 | 492,887 | 489,851 | 479,486 | |||
Consumer | 207,417 | 209,541 | 216,284 | 220,826 | 219,138 | |||
Agricultural loans | 205,544 | 198,210 | 199,013 | 182,038 | 181,173 | |||
Total, excluding net deferred loan costs | $1,777,599 | $1,740,781 | $1,732,837 | $1,688,175 | $1,635,886 | |||
For the Three Months Ended | ||||||||
June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | ||||
Noninterest Income | 2019 | 2019 | 2018 | 2018 | 2018 | |||
Service charges on deposit accounts | $1,093 | $1,074 | $1,115 | $1,151 | $985 | |||
Bank owned life insurance income | 208 | 214 | 221 | 219 | 219 | |||
Trust fees | 1,821 | 1,858 | 1,752 | 1,827 | 1,740 | |||
Insurance agency commissions | 739 | 803 | 642 | 567 | 713 | |||
Security gains (losses) | (18) | 10 | 260 | (34) | 27 | |||
Retirement plan consulting fees | 450 | 358 | 370 | 470 | 465 | |||
Investment commissions | 327 | 260 | 259 | 273 | 315 | |||
Net gains on sale of loans | 1,055 | 671 | 832 | 804 | 606 | |||
Debit card and EFT fees | 887 | 778 | 861 | 814 | 870 | |||
Other operating income | 432 | 494 | 393 | 387 | 366 | |||
Total Noninterest Income | $6,994 | $6,520 | $6,705 | $6,478 | $6,306 | |||
For the Three Months Ended | ||||||||
June 30, | March 31, | Dec. 31, | Sept. 30, | June 30, | ||||
Noninterest Expense | 2019 | 2019 | 2018 | 2018 | 2018 | |||
Salaries and employee benefits | $9,266 | $9,356 | $9,444 | $8,966 | $8,828 | |||
Occupancy and equipment | 1,650 | 1,717 | 1,566 | 1,597 | 1,611 | |||
State and local taxes | 472 | 470 | 474 | 475 | 479 | |||
Professional fees | 887 | 794 | 734 | 687 | 737 | |||
Merger related costs (income) | (19) | 0 | (180) | 0 | 0 | |||
Advertising | 442 | 250 | 416 | 489 | 379 | |||
FDIC insurance | 85 | 87 | 234 | 218 | 225 | |||
Intangible amortization | 326 | 327 | 355 | 354 | 355 | |||
Core processing charges | 803 | 791 | 762 | 778 | 794 | |||
Telephone and data | 217 | 260 | 288 | 298 | 238 | |||
Other operating expenses | 2,575 | 1,925 | 1,890 | 2,318 | 1,812 | |||
Total Noninterest Expense | $16,704 | $15,977 | $15,983 | $16,180 | $15,458 | |||
Average Balance Sheets and Related Yields and Rates | ||||||||
(Dollar Amounts in Thousands) | ||||||||
Three Months Ended | Three Months Ended | |||||||
June 30, 2019 | June 30, 2018 | |||||||
AVERAGE | AVERAGE | |||||||
BALANCE | INTEREST (1) | RATE (1) | BALANCE | INTEREST (1) | RATE (1) | |||
EARNING ASSETS | ||||||||
Loans (2) | $1,749,828 | $22,431 | 5.14% | $1,606,993 | $19,636 | 4.90% | ||
Taxable securities | 195,934 | 1,238 | 2.53 | 202,588 | 1,228 | 2.43 | ||
Tax-exempt securities (2) | 211,533 | 2,065 | 3.92 | 190,494 | 1,737 | 3.66 | ||
Equity securities | 12,055 | 171 | 5.69 | 11,214 | 154 | 5.51 | ||
Federal funds sold and other | 29,205 | 158 | 2.17 | 33,541 | 167 | 2.00 | ||
Total earning assets | 2,198,555 | 26,063 | 4.75 | 2,044,830 | 22,922 | 4.50 | ||
Nonearning assets | 170,833 | 155,130 | ||||||
Total assets | $2,369,388 | $2,199,960 | ||||||
INTEREST-BEARING LIABILITIES | ||||||||
Time deposits | $401,005 | $1,984 | 1.98% | $283,429 | $957 | 1.35% | ||
Brokered time deposits | 94,463 | 559 | 2.35 | 0 | 0 | 0 | ||
Savings deposits | 416,024 | 340 | 0.33 | 477,365 | 256 | 0.22 | ||
Demand deposits | 631,436 | 1,476 | 0.94 | 469,609 | 510 | 0.44 | ||
Short term borrowings | 100,199 | 631 | 2.53 | 298,802 | 1,140 | 1.53 | ||
Long term borrowings | 5,724 | 48 | 3.36 | 6,674 | 49 | 2.94 | ||
Total interest-bearing liabilities | $1,648,851 | 5,038 | 1.23 | $1,535,879 | 2,912 | 0.76 | ||
NONINTEREST-BEARING LIABILITIES | ||||||||
AND STOCKHOLDERS' EQUITY | ||||||||
Demand deposits | 425,672 | 408,567 | ||||||
Other liabilities | 17,119 | 11,722 | ||||||
Stockholders' equity | 277,746 | 243,792 | ||||||
TOTAL LIABILITIES AND | ||||||||
STOCKHOLDERS' EQUITY | $2,369,388 | $2,199,960 | ||||||
Net interest income and interest rate spread | $21,025 | 3.52% | $20,010 | 3.74% | ||||
Net interest margin | 3.84% | 3.93% | ||||||
(1) Interest and yields are calculated on a tax-equivalent basis where applicable. | ||||||||
(2) For 2019, adjustments of $107 thousand and $427 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2018, adjustments of $91 thousand and $357 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances. | ||||||||
Six Months Ended | Six Months Ended | |||||||
June 30, 2019 | June 30, 2018 | |||||||
AVERAGE | AVERAGE | |||||||
BALANCE | INTEREST (1) | RATE (1) | BALANCE | INTEREST (1) | RATE (1) | |||
EARNING ASSETS | ||||||||
Loans (2) | $1,738,953 | $44,002 | 5.10% | $1,586,140 | $38,145 | 4.85% | ||
Taxable securities | 195,871 | 2,482 | 2.56 | 204,455 | 2,461 | 2.43 | ||
Tax-exempt securities | 209,586 | 4,076 | 3.92 | 188,041 | 3,417 | 3.66 | ||
Equity securities (2) | 12,058 | 346 | 5.79 | 11,051 | 300 | 5.47 | ||
Federal funds sold and other | 31,712 | 354 | 2.25 | 34,308 | 312 | 1.83 | ||
Total earning assets | 2,188,180 | 51,260 | 4.72 | 2,023,995 | 44,635 | 4.45 | ||
Nonearning assets | 165,932 | 157,436 | ||||||
Total assets | $2,354,112 | $2,181,431 | ||||||
INTEREST-BEARING LIABILITIES | ||||||||
Time deposits | $384,643 | $3,642 | 1.91% | $277,408 | $1,770 | 1.29% | ||
Brokered time deposits | 70,793 | 825 | 2.33 | 0 | 0 | 0 | ||
Savings deposits | 418,306 | 648 | 0.31 | 479,870 | 438 | 0.18 | ||
Demand deposits | 610,631 | 2,679 | 0.88 | 460,503 | 926 | 0.41 | ||
Short term borrowings | 148,723 | 1,862 | 2.52 | 290,617 | 2,021 | 1.40 | ||
Long term borrowings | 5,815 | 96 | 3.33 | 6,768 | 93 | 2.77 | ||
Total interest-bearing liabilities | $1,638,911 | 9,752 | 1.20 | $1,515,166 | 5,248 | 0.70 | ||
NONINTEREST-BEARING LIABILITIES | ||||||||
AND STOCKHOLDERS' EQUITY | ||||||||
Demand deposits | $427,039 | $409,705 | ||||||
Other liabilities | 15,944 | 13,878 | ||||||
Stockholders' equity | 272,218 | 242,682 | ||||||
TOTAL LIABILITIES AND | ||||||||
STOCKHOLDERS' EQUITY | $2,354,112 | $2,181,431 | ||||||
Net interest income and interest rate spread | $41,508 | 3.52% | $39,387 | 3.75% | ||||
Net interest margin | 3.83% | 3.92% | ||||||
(1) Interest and yields are calculated on a tax-equivalent basis where applicable. | ||||||||
(2) For 2019, adjustments of $209 thousand and $843 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2018, adjustments of $173 thousand and $706 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances. | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190726005027/en/
Contacts:
Kevin J. Helmick, President and CEO
330.533.3341
Email: exec@farmersbankgroup.com
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