Farmers National Banc(FMNB) - 2025 Q2 - Quarterly Results

Financial Performance - Net income for Q2 2025 was $13.9 million, or $0.37 per diluted share, up from $11.8 million, or $0.31 per diluted share in Q2 2024[2] - Net income for the three months ended June 30, 2025, was $13,910 million, reflecting a 19.4% increase from $11,783 million for the same period in 2024[18] - Net income for the six months ended June 30, 2025, was $27,488 million, compared to $23,023 million for the same period in 2024, representing a 19.5% increase[29] - Adjusted net income for the three months ended June 30, 2025, was $14,543 million, up from $12,190 million in the same period of 2024, reflecting a 19.4% growth[29] - Diluted EPS excluding merger and certain items for the six months ended June 30, 2025, was $0.76, compared to $0.67 for the same period in 2024, indicating a 13.4% increase[29] Asset and Deposit Growth - Total assets increased to $5.18 billion in Q2 2025 from $5.16 billion at the end of Q1 2025 and $5.12 billion at the end of 2024[4] - Total assets as of June 30, 2025, were $5,178,428 million, compared to $5,156,853 million as of June 30, 2024[19] - Total assets reached $5,125,753 million as of June 30, 2025, up from $5,034,241 million a year earlier, representing a year-over-year growth of 1.8%[25] - Total deposits increased by $129.6 million since December 31, 2024, despite a decline from March 31, 2025[6] - Total deposits decreased to $4,396,417 million as of June 30, 2025, from $4,481,288 million as of March 31, 2025[19] - Total customer deposits reached $4,321,430,000 as of June 30, 2025, showing a slight increase from $4,321,323,000 in the previous quarter[21] Loan Performance - Loans grew to $3.30 billion at June 30, 2025, reflecting a 6.4% annualized growth rate[9] - Total loan balances reached $3,292,888 million as of June 30, 2025, up from $3,240,938 million in the previous quarter[20] - Loans to deposits ratio increased to 75.14% as of June 30, 2025, compared to 72.55% in the previous quarter[20] - Non-performing loans rose to $27.8 million at June 30, 2025, representing 0.84% of total loans[8] - Non-performing loans rose to $27,819 million as of June 30, 2025, from $20,724 million in the previous quarter, indicating a significant increase[20] Income and Expense Analysis - Net interest income was $34.9 million in Q2 2025, up from $32.1 million in Q2 2024, with a net interest margin of 2.91%[11] - Noninterest income increased to $12.1 million in Q2 2025 from $9.6 million in Q2 2024, driven by improved fee-based services[12] - Noninterest expense rose to $27.2 million in Q2 2025 from $26.4 million in Q2 2024, primarily due to increased salaries and benefits[13] - Total interest income for the three months ended June 30, 2025, was $57,702 million, a 2.8% increase compared to $56,846 million for the same period in 2024[18] - Noninterest income rose by 25.8% to $12,122 million for the three months ended June 30, 2025, compared to $9,606 million for the same period in 2024[18] Efficiency and Ratios - The efficiency ratio improved to 56.7% in Q2 2025 from 60.8% in Q2 2024, indicating better cost management[9] - The efficiency ratio (tax equivalent basis) improved to 56.66% for the three months ended June 30, 2025, from 60.80% for the same period in 2024[18] - Return on average assets (annualized) was 1.08% for the three months ended June 30, 2025, compared to 0.93% for the same period in 2024[18] - Return on average equity (annualized) was 13.08% for the three months ended June 30, 2025, compared to 12.15% for the same period in 2024[18] - Efficiency ratio excluding certain items improved to 54.231% for the six months ended June 30, 2025, from 52.124% in the same period of 2024[29] Capital Ratios - Common Equity Tier 1 Capital Ratio increased to 11.60% as of June 30, 2025, up from 11.44% in the previous quarter[20] - Total Risk Based Capital Ratio improved to 15.05% as of June 30, 2025, compared to 14.87% in the prior quarter[20] - Tangible Common Equity Ratio improved to 5.03% as of June 30, 2025, compared to 4.86% in the previous quarter[20] Charge-offs and Allowances - Net Charge-offs for the quarter were $572 million, up from $336 million in the previous quarter[20] - Allowance for Credit Losses to Total Loans ratio was 1.17% as of June 30, 2025, compared to 1.09% in the previous quarter[20] - Annualized Net Charge-offs to Average Net Loans ratio was 0.07% for the quarter, up from 0.04% in the previous quarter[20]