For the quarter ended March 2025, Farmers National Banc (FMNB) reported revenue of $44.68 million, up 11.6% over the same period last year. EPS came in at $0.39, compared to $0.34 in the year-ago quarter.The reported revenue represents a surprise of -0.39% over the Zacks Consensus Estimate of $44.85 million. With the consensus EPS estimate being $0.34, the EPS surprise was +14.71%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Farmers National Banc (FMNB) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.71%. A quarter ago, it was expected that this bank would post earnings of $0.34 per share when it actually produced earnings of $0.39, delivering a surprise of 14.71%.Over the last four quarters, the compa ...

Financial Performance - Net income for Q1 2025 was $13.6 million, or $0.36 per diluted share, up from $11.2 million, or $0.30 per diluted share in Q1 2024, representing a 21.4% increase in net income year-over-year [2]. - Net income for Q1 2025 was $13,578,000, a decrease of 5.65% compared to $14,391,000 in Q4 2024 [18]. - Adjusted net income increased to $14,634 for the three months ended March 31, 2025, compared to $14,543 in the previous quarter, showing a slight growth of 0.62% [25]. - Return on Average Assets (Annualized) was 1.06%, down from 1.12% in Q4 2024 [18]. - Return on average tangible equity (annualized) was 25.89% for the three months ended March 31, 2025, compared to 24.20% in the previous quarter, reflecting an increase of 1.69 percentage points [25]. Asset and Deposit Growth - Total assets increased by $38.1 million to $5.16 billion in Q1 2025, while total deposits rose by $214.5 million to $4.48 billion [4][6]. - Total assets increased to $5,157,040,000, up from $5,118,924,000 in Q4 2024 [18]. - Total deposits rose to $4,481,288,000, an increase of 5.02% from $4,266,779,000 in Q4 2024 [18]. - Total customer deposits rose to $4,321,323 million, up from $4,198,125 million year-over-year, reflecting a growth of 2.9% [19]. Income and Revenue Streams - Net interest income increased to $34.2 million in Q1 2025 from $31.7 million in Q1 2024, with net interest margin improving to 2.85% from 2.70% year-over-year [11]. - Noninterest income rose to $10.5 million in Q1 2025, up from $8.4 million in Q1 2024, driven by improved profitability across fee-based services [12]. - Total interest income for Q1 2025 was $57,305,000, a decrease of 1.04% from Q4 2024 [18]. - Noninterest income decreased to $10,481,000, down 8.15% from $11,413,000 in Q4 2024 [18]. - Net interest income for the quarter was $34,837 million, up from $32,341 million year-over-year, resulting in a net interest margin of 2.85% [22]. Credit Quality and Risk Management - Non-performing loans decreased to $20.7 million, or 0.64% of total loans, down from $22.8 million, or 0.70% at the end of 2024, indicating improved credit quality [8]. - The allowance for credit losses to total loans was 1.09% at March 31, 2025, slightly down from 1.10% at the end of 2024, indicating stable credit risk management [10]. - Non-performing loans decreased to $20,724 million from $22,818 million quarter-over-quarter, indicating improved asset quality [19]. - Non-performing assets to total assets ratio improved to 0.41% from 0.45% quarter-over-quarter, showing enhanced asset management [19]. Operational Efficiency - The efficiency ratio improved to 59.6% in Q1 2025 compared to the same period in 2024, reflecting better operational efficiency [9]. - The efficiency ratio excluding certain items improved to 59.57% for the three months ended March 31, 2025, down from 61.54% in the previous quarter, indicating enhanced operational efficiency [25]. Strategic Initiatives - The company opened a commercial loan production office in Columbus at the end of Q1 2025, marking a strategic expansion into a growth market [9]. - The company anticipates continued volatility in the bond market throughout 2025, impacting investment strategies [5]. - The company had access to an additional $749.3 million in FHLB borrowing capacity as of March 31, 2025, enhancing liquidity [14]. Capital Adequacy - Common Equity Tier 1 Capital Ratio increased to 11.48% from 10.88% year-over-year [19]. - The Tier 1 Leverage Ratio increased to 8.54% from 8.19% year-over-year, indicating stronger capital adequacy [19]. - Tangible common equity rose to $241,668 for the three months ended March 31, 2025, up from $217,828 in the previous quarter, representing an increase of 10.93% [24].

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Acquisitions and Business Growth - Farmers Trust acquired substantially all assets of Crest Retirement Advisors, LLC in a cash transaction during 2024[20] - Farmers Insurance acquired substantially all assets of Randy L. Jones Agency, Inc. in a cash transaction during 2022[22] - Farmers Trust offers a full complement of personal and corporate trust services, enhancing its service offerings[20] Employment and Workforce - As of December 31, 2024, Farmers and its subsidiaries had 682 full-time equivalent employees[26] - The market for top talent is highly competitive, and Farmers is committed to attracting and retaining a dedicated workforce[26] Regulatory Environment - Farmers elected to become a financial holding company in 2016, allowing it to engage in activities that are financial in nature[42] - The Company is subject to extensive regulation by federal and state regulatory agencies, which may restrict its ability to diversify and pay dividends[28] - Farmers Bank is subject to regulation and examination primarily by the Office of the Comptroller of the Currency (OCC) and secondarily by the FDIC[32] - Farmers Bank is subject to federal regulations limiting transactions with affiliates, requiring covered transactions to be secured by specified collateral and capped at 10% of capital stock for individual transactions and 20% for aggregate transactions[47] - The Economic Growth, Regulatory Relief and Consumer Protection Act eased restrictions for bank holding companies with consolidated assets of less than $100 billion, including Farmers[61] - The Volcker Rule limits trading activities of insured depository institutions, but Farmers is exempt as a community bank with total consolidated assets of $10 billion or less[64] Capital and Financial Ratios - Under Basel III, the minimum ratio of Common Equity Tier 1 (CET1) to risk-weighted assets is set at 4.5%, plus a 2.5% capital conservation buffer, resulting in an effective minimum ratio of 7.0%[56] - The minimum Tier 1 capital ratio is 6.0%, plus the capital conservation buffer, leading to an effective minimum of 8.5%[56] - The total capital ratio must be at least 8.0%, plus the capital conservation buffer, resulting in a minimum total capital ratio of 10.5%[56] Community and Compliance - Farmers received a "satisfactory" rating in its most recent Community Reinvestment Act examination, which is crucial for any new activities or acquisitions[73] - The Dodd-Frank Act mandates shareholders to have a non-binding vote on executive compensation practices, with a new clawback policy approved on September 26, 2023[80] - Farmers Bank is subject to the Sarbanes-Oxley Act, requiring the CEO and CFO to certify the accuracy of Quarterly and Annual Reports, ensuring no material misstatements[77] Cybersecurity and Risk Management - The bank has implemented multiple layers of cybersecurity controls to protect against attacks, with a focus on maintaining business continuity and rapid recovery processes[81] - Federal regulations require banking organizations to notify regulators of computer-security incidents within 36 hours, promoting early awareness of threats[82] - Farmers Bank continues to monitor state-level cybersecurity regulatory activities as they evolve[85] - The bank's incentive compensation policies are under review by the Federal Reserve to ensure they do not encourage excessive risk-taking[79] - The bank has not experienced significant data loss or financial losses from cybersecurity attacks to date, but risks remain high[86] Interest Rate Sensitivity and Financial Projections - The company anticipates a net interest income change of -9.0% for a +400 basis point increase in interest rates for 2024, compared to -6.2% for 2023[286] - A sudden and sustained 400 basis point decrease in market interest rates is projected to increase net interest income by 6.1% in 2024, up from 2.7% in 2023[286] - The net present value of equity is expected to decrease by 37.2% with a +400 basis point increase in interest rates for 2024, compared to a decrease of 36.4% for 2023[286] - The Federal Open Market Committee raised the discount rate from 0.25% to 5.50% between March 2022 and July 2023, with a forecasted cut of 100 basis points in late 2024[286] - The company is focusing on shortening the duration of its investment portfolio to mitigate the gap between book and market rates[288] - Loan growth will be broad-based across various sectors, including consumer, commercial, and real estate, to manage risk effectively[288] - Interest rate sensitivity management is crucial for protecting against net interest income volatility, with a quarterly report presented to the Board of Directors[289] - A significant portion of interest-sensitive assets and liabilities matures within twelve months, necessitating close monitoring[290] - The company has no market risk sensitive instruments held for trading purposes, indicating a conservative approach to market risk[289] - The company recognizes the inherent risks in growing loans but believes its strong credit metrics support pursuing solid opportunities[288]

Farmers National Banc (FMNB) reported $44.15 million in revenue for the quarter ended December 2024, representing a year-over-year decline of 1.9%. EPS of $0.39 for the same period compares to $0.41 a year ago.The reported revenue represents a surprise of +0.12% over the Zacks Consensus Estimate of $44.1 million. With the consensus EPS estimate being $0.34, the EPS surprise was +14.71%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

Group 1: Earnings Performance - Farmers National Banc (FMNB) reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, but down from $0.41 per share a year ago, representing an earnings surprise of 14.71% [1] - The company posted revenues of $44.15 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.12%, but down from $44.99 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Farmers National shares have declined approximately 3.6% since the beginning of the year, while the S&P 500 has gained 3.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $44.65 million, and for the current fiscal year, it is $1.44 on revenues of $181.5 million [7] - The estimate revisions trend for Farmers National is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Zacks Industry Rank for Banks - Midwest is currently in the top 9% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q4 2024 was $14.4 million, or $0.38 per diluted share, slightly down from $14.6 million, or $0.39 per diluted share in Q4 2023[3] - Net income for Q4 2024 was $14,391,000, down 8.0% from $14,577,000 in Q4 2023[21] - Total interest income for Q4 2024 was $57,909,000, an increase of 6.7% compared to $55,069,000 in Q4 2023[21] - Net interest income decreased by 6.8% to $32,739,000 in Q4 2024 from $32,830,000 in Q4 2023[21] - Noninterest income decreased to $11.4 million in Q4 2024 from $12.2 million in Q4 2023, primarily due to a decline in net gain on sale of loans[13] - Noninterest income for the twelve months ended December 31, 2024, was $41,716,000, a slight decrease of 0.3% from $41,861,000 in 2023[21] - The company reported a decrease in total net interest income for the twelve months ended December 31, 2024, to $140,588 million from $130,848 million in the previous year[33] Assets and Liabilities - Total assets decreased to $5.12 billion at December 31, 2024, from $5.24 billion at September 30, 2024, but increased from $5.08 billion at December 31, 2023[5] - Total assets as of December 31, 2024, were $5,118,924,000, compared to $5,078,350,000 as of December 31, 2023[22] - Total deposits decreased to $4.27 billion at December 31, 2024, from $4.36 billion at September 30, 2024, but increased by $89.4 million from $4.18 billion at December 31, 2023[7] - Total deposits decreased to $4,266,779,000 in Q4 2024 from $4,177,386,000 in Q4 2023[22] - Total stockholders' equity declined to $406.0 million at December 31, 2024, from $439.7 million at September 30, 2024[8] - Stockholders' equity as of December 31, 2024, was $406,028 thousand, an increase from $404,415 thousand in 2023[31] Loan and Asset Quality - Loans slightly declined to $3.27 billion at December 31, 2024, from $3.28 billion at September 30, 2024, but increased by $70.2 million from December 31, 2023[5] - Non-performing loans increased to $22.8 million at December 31, 2024, compared to $19.1 million at September 30, 2024, and $15.1 million at December 31, 2023[10] - Non-performing loans rose to $22,818 million from $15,063 million year-over-year, indicating a deterioration in asset quality[23] - Annualized Net Charge-offs to Average Net Loans decreased to 0.08% from 0.10% year-over-year[23] - The company reported a net charge-off of $635 million for the quarter, down from $800 million year-over-year[23] Interest Margin and Efficiency - Net interest margin improved to 2.72% in Q4 2024 from 2.66% in Q3 2024, but declined from 2.78% in Q4 2023[9] - The Company expects net interest margin to continue expanding in 2025 as funding costs reprice lower[12] - Net interest margin excluding acquisition marks and PPP interest and fees was 2.56% for the three months ended December 31, 2024, up from 2.48% in the previous quarter[33] - The efficiency ratio excluding certain items for the twelve months ended December 31, 2024, was 59.19%, compared to 55.42% in 2023[32] Capital Ratios - Common Equity Tier 1 Capital Ratio increased to 11.26% from 10.61% year-over-year[23] - Total Risk Based Capital Ratio increased to 14.67% from 14.06% year-over-year[23] - Average tangible common equity for the twelve months ended December 31, 2024, was $218,331 thousand, compared to $165,156 thousand in 2023[31] Acquisitions and Future Outlook - The Company completed the acquisition of Crest Retirement Advisors LLC, expected to enhance fee-based business in 2025[9] - The average balance of loans increased to $3,227,384 thousand in 2024, with an average yield of 5.76%, compared to $3,155,858 thousand and 5.46% in 2023[28]

Financial Performance - Net income for the three months ended September 30, 2024, was $8,535,000, down from $13,314,000 in the same period of 2023, a decline of 35.5%[9] - Earnings per share (diluted) decreased to $0.23 for the three months ended September 30, 2024, compared to $0.36 for the same period in 2023, a drop of 36.1%[8] - The company reported a total comprehensive income of $48,817,000 for the three months ended September 30, 2024, compared to a loss of $45,371,000 in the same period of 2023[9] - Net interest income after provision for credit losses was $24,868,000 for the three months ended September 30, 2024, down from $33,525,000 for the same period in 2023, a decrease of 25.9%[8] - Noninterest income totaled $12,340,000 for the three months ended September 30, 2024, compared to $9,831,000 in the same period of 2023, an increase of 25.6%[8] Assets and Liabilities - Total assets increased to $5,236,503,000 as of September 30, 2024, compared to $5,078,350,000 at December 31, 2023, reflecting a growth of 3.1%[5] - Total liabilities increased to $4,796.8 million as of September 30, 2024, from $4,673.9 million at December 31, 2023, an increase of 2.6%[6] - The company’s total stockholders' equity rose to $439,678,000 as of September 30, 2024, compared to $404,415,000 at December 31, 2023, an increase of 8.7%[6] Loans and Credit Losses - Net loans rose to $3,244,331,000, up from $3,163,687,000, marking an increase of 2.5%[5] - The allowance for credit losses increased to $36,186,000 as of September 30, 2024, from $34,440,000 at December 31, 2023[5] - The provision for credit losses for the three months ended September 30, 2024, was $6,807,000, compared to $182,000 for the same period in 2023, showing a significant increase[39] - Loans charged off during the three months ended September 30, 2024, totaled $5,116,000, compared to $525,000 for the same period in 2023, indicating a rise in charge-offs[39] Investment and Acquisitions - The company completed a merger with Emclaire Financial Corp., resulting in a transaction value of approximately $92.6 million, which included issuing 4.2 million shares and cash of $33.4 million[23] - Goodwill recorded from the Emclaire acquisition amounted to $72.9 million, attributed to expected synergies and market expansion opportunities[24] - The total consideration paid for the acquisition of Emclaire was $92.642 million, consisting of $33.440 million in cash and $59.202 million in stock[26] Capital Adequacy - The common equity tier 1 capital ratio for the consolidated entity is 10.91%, exceeding the minimum requirement of 4.5%[176] - The total risk-based capital ratio for the consolidated entity is 14.34%, well above the required minimum of 8.0%[176] - The tier 1 leverage ratio for the consolidated entity stands at 8.20%, surpassing the minimum requirement of 4.0%[176] Cash and Cash Equivalents - Total cash and cash equivalents at the end of the period reached $189,136,000, compared to $93,923,000 at the end of September 2023, reflecting a year-over-year increase of 101.0%[13] - Cash and cash equivalents totaled $189,136 thousand, with $21,149 thousand in Level 1 and $167,987 thousand in Level 2[143] Noninterest Income - Total noninterest income for the three months ended September 30, 2024, was $12.34 million, compared to $9.83 million for the same period in 2023, indicating a significant increase[103] - Service charges on deposit accounts for the bank segment reached $5.421 million for the nine months ended September 30, 2024, compared to $5.421 million in the same period of the previous year[105] Other Financial Metrics - The company recognized tax credits and other benefits from affordable housing tax credits amounting to $602 thousand in Q3 2024, up from $558 thousand in Q3 2023, an increase of 7.9%[199] - The company reported a total loan balance of $30.497 billion with an ACL balance of $618 thousand for purchased loans as of September 30, 2024[101] - The company has established a fair value measurement process for its financial instruments, utilizing Level 1, Level 2, and Level 3 inputs[116]

Core Insights - Farmers National Banc (FMNB) reported revenue of $44.22 million for the quarter ended September 2024, reflecting a year-over-year increase of 1.4% and a surprise of +3.07% over the Zacks Consensus Estimate of $42.9 million [1] - Earnings per share (EPS) for the quarter was $0.23, down from $0.40 in the same quarter last year, resulting in an EPS surprise of -32.35% compared to the consensus estimate of $0.34 [1] Financial Performance Metrics - Efficiency Ratio stood at 58.5%, better than the average estimate of 61.2% based on two analysts [1] - Net Interest Margin was reported at 2.7%, matching the average estimate of 2.7% from two analysts [1] - Average Earning Assets amounted to $4.89 billion, slightly above the estimated $4.87 billion by two analysts [1] - Total Noninterest Income reached $12.34 million, exceeding the average estimate of $10.10 million from two analysts [1] Stock Performance - Shares of Farmers National have returned -0.4% over the past month, while the Zacks S&P 500 composite increased by +2.7% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]