Farmers National Banc(FMNB) - 2025 Q1 - Quarterly Results

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].