Farmers National Banc (FMNB) Q3 2024 earnings summary

Executive summary

• 167 consecutive quarters of profitability, with strong commercial and overall loan growth in Q3 2024.

• Net income for Q3 2024 was $8.5 million ($0.23 per diluted share), down from $13.3 million ($0.36 per share) in Q3 2023, mainly due to a $4.4 million charge-off and $1.2 million reserve on a single commercial real estate loan.

• Customer deposits grew by $81.1 million (7.7% annualized) in Q3 2024; wealth management AUM reached $4.0 billion.

• Focused on organic growth, M&A, and combining big bank capabilities with local service.

• Named a Best Employer in Ohio for the past two years.

Financial highlights

• Core net income YTD 9/30/2024: $61.8 million; core EPS: $1.65; core ROA: 1.23%.

• Net interest income for Q3 2024 was $31.9 million, down from $33.8 million in Q3 2023; net interest margin declined to 2.66% from 2.86%.

• Noninterest income rose to $12.3 million in Q3 2024 from $9.8 million in Q3 2023, driven by higher service charges, trust fees, and insurance commissions.

• Total assets reached $5.24 billion at September 30, 2024, up from $5.08 billion at December 31, 2023.

• Total loans: $3.3 billion; customer deposits: $4.3 billion as of 9/30/2024.

Outlook and guidance

• Management anticipates total loans to increase by 2.8%–3.0% for 2024.

• Company expects to grow earnings in 2025 while navigating ongoing macro-level uncertainty.

• Pursuing top quartile performance metrics versus peers and growing noninterest income.

• Continued focus on prudent risk management, asset quality, and proactive capital management.

• Prioritizing shorter-duration assets to mitigate interest rate risk and address the impact of an inverted yield curve.