Farmers National Banc(FMNB) - 2024 Q4 - Annual Results

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]