[July 18, 2018] |
|
Farmers National Banc Corp. Announces 2018 Second Quarter Financial Results
Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported
financial results for the three months ended June 30, 2018.
Net income for the three months ended June 30, 2018 was $8.1 million, or
$0.29 per diluted share, which compares to $5.7 million, or $0.21 per
diluted share, for the three months ended June 30, 2017 and $7.7
million, or $0.28 per diluted share, for the linked quarter. Annualized
return on average assets and return on average equity were 1.47% and
13.28%, respectively, for the three month period ending June 30, 2018,
compared to 1.11% and 10.25% for the same three month period in 2017,
and 1.45% and 13.03% for the linked quarter. Farmers' return on average
tangible equity (Non-GAAP) also improved to 16.24% for the quarter ended
June 30, 2018 compared to 12.77% for the same quarter in 2017 and 15.84%
for the linked quarter.
Net income for the six months ended June 30, 2018 was $15.8 million, or
$0.57 per diluted share, compared to $11.5 million or $0.42 per diluted
share for the same six month period in 2017. Return on average assets
and return on average equity were 1.46% and 13.13%, respectively, for
the six months ended June 30, 2018, compared to 1.14% and 10.52% for the
same period in 2017.
On December 22, 2017, H.R.1, known as the "Tax Cuts and Jobs Act," was
signed into law. H.R.1, among other things, reduced the corporate income
tax rate to 21% effective January 1, 2018. As a result of passage of the
new tax law, Farmers effective tax rate decreased from 25.7% for the six
months ended June 30, 2017 to 15.7% for the six months ended June 30,
2018. It is important to note that also as a result of the new tax law,
Farmers determined that its net deferred tax assets needed to be reduced
in the fourth quarter of 2017 by approximately $1.8 million,
representing an impact on earnings per share of approximately $0.06 per
diluted share for that fourth quarter, based on that quarter's weighted
average diluted shares outstanding of approximately 27.5 million.
Kevin J. Helmick, President and CEO, stated, "We are pleased to report
record earnings which are the result of the successful integration of
previous mergers, continued strong loan growth, higher levels of
noninterest income and a lower effective income tax rate."
2018 Second Quarter Financial Highlights
-
Loan growth
Total loans were $1.64 billion at June 30,
2018, compared to $1.51 billion at June 30, 2017, representing an
increase of 8.9%. The increase in loans is a direct result of Farmers'
focus on loan growth utilizing a talented lending and credit team,
while adhering to a sound underwriting discipline. The increase in
loans has occurred in the commercial and commercial real estate,
residential real estate and agricultural loan portfolios. Loans now
comprise 78.6% of the Bank's average earning assets for the quarter
ended June 30, 2018, an improvement compared to 77.6% for the same
period in 2017. This improvement, along with the growth in earning
assets, has resulted in a 12.3% increase in loan income in the second
quarter of 2018 compared to the same quarter in 2017.
-
Loan quality
Non-performing assets to total assets remain
at a low level, currently at 0.38%. Early stage delinquencies also
continue to remain at low levels, at $10.6 million, or 0.65% of total
loans, at June 30, 2018. Net charge-offs for the current quarter were
$536 thousand, compared to $523 thousand in the same quarter in 2017
and annualized net charge-offs as a percentage of average net loans
outstanding is only 0.13% for the quarter ended June 30, 2018. Lending
to the energy sector is insignificant and less than 1% of the loan
portfolio.
-
Net interest margin
The net interest margin for the three
months ended June 30, 2018 was 3.93%, a 12 basis points decrease from
the quarter ended June 30, 2017, but 1 basis point higher than the
first quarter of 2018. In comparing the second quarter of 2018 to the
same period in 2017, asset yields increased 9 basis points, while the
cost of interest-bearing liabilities increased 30 basis points. Most
of this increase was the result of higher rates paid on short-term
borrowings and time deposits, consistent with increases in the federal
funds sold rate. The net interest margin is impacted by the additional
accretion as a result of the discounted loan portfolios acquired in
the previous mergers, which increased the net interest margin by 5 and
2 basis points for the quarters ended June 30, 2018 and 2017,
respectively.
-
Noninterest income
Noninterest income increased 4.2% to
$6.3 million for the quarter ended June 30, 2018 compared to $6.1
million in the same quarter of 2017. Trust fees increased $217
thousand or 14.3% in comparing the second quarter of 2018 to the same
quarter in 2017, retirement plan consulting fees increased $66
thousand or 16.5% and investment commissions increased $62 thousand or
24.5%. These increases were offset by a drop in the gains on the sale
of mortgage loans of $285 thousand or 32%; however, the current
quarter's income of $606 thousand was $119 thousand or 24% higher than
the linked quarter.
-
Noninterest expenses
Farmers has remained committed to
managing its level of noninterest expenses. Total noninterest expenses
for the second quarter of 2018 decreased 1.9% to $15.5 million
compared to $15.8 million in the same quarter in 2017, primarily a
result of decreases in other operating expenses of $136 thousand and
merger related costs of $104 thousand. It is important to note that
annualized noninterest expenses measured as a percentage of quarterly
average assets decreased from 3.08% in the first quarter of 2017 to
2.82% in the first quarter of 2018.
-
Efficiency ratio
The efficiency ratio for the quarter
ended June 30, 2018 improved to 57.31% compared to 60.79% for the same
quarter in 2017. The main factors leading to this improvement were the
increase in net interest income and noninterest income and a slightly
lower level of noninterest expenses relative to average assets as
explained in the preceding paragraphs.
2018 Outlook
Mr. Helmick added, "We are encouraged by our financial results for the
first half of 2018 and look to use this momentum to sustain strong
performance for all of 2018. As always, we will remain focused on
delivering for the businesses, families and communities we serve."
Founded in 1887, Farmers National Banc Corp. is a diversified financial
services company headquartered in Canfield, Ohio, with $2.2 billion in
banking assets. Farmers National Banc Corp.'s wholly-owned subsidiaries
are comprised of The Farmers National Bank of Canfield, a full-service
national bank engaged in commercial and retail banking with 41 banking
locations in Mahoning, Trumbull, Columbiana, Stark, Wayne, Medina and
Cuyahoga Counties in Ohio and Beaver County in Pennsylvania, Farmers
Trust Company, which operates four trust offices and offers services in
the same geographic markets, and National Associates, Inc. Total wealth
management assets under care at June 30, 2018 are $2.6 billion. Farmers
National Insurance, LLC and Bowers Insurance Agency, Inc., wholly-owned
subsidiaries of The Farmers National Bank of Canfield, offer a variety
of insurance products.
Non-GAAP Disclosure
This press release includes disclosures of Farmers' tangible common
equity ratio, return on average tangible assets, return on average
tangible equity and net income excluding costs related to acquisition
activities, which are financial measures not prepared in accordance with
generally accepted accounting principles in the United States (GAAP). A
non-GAAP financial measure is a numerical measure of historical or
future financial performance, financial position or cash flows that
excludes or includes amounts that are required to be disclosed by GAAP.
Farmers believes that these non-GAAP financial measures provide both
management and investors a more complete understanding of the underlying
operational results and trends and Farmers' marketplace performance. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for the numbers prepared in
accordance with GAAP. The reconciliations of non-GAAP financial measures
are included in the tables following Consolidated Financial Highlights
below.
Forward-Looking Statements
This earnings release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements about Farmers' financial condition, results of
operations, asset quality trends and profitability. Forward-looking
statements are not historical facts but instead represent only
management's current expectations and forecasts regarding future events,
many of which, by their nature, are inherently uncertain and outside of
Farmers' control. Forward-looking statements are preceded by terms such
as "expects," "believes," "anticipates," "intends" and similar
expressions, as well as any statements related to future expectations of
performance or conditional verbs, such as "will," "would," "should,"
"could" or "may." Farmers' actual results and financial condition may
differ, possibly materially, from the anticipated results and financial
condition indicated in these forward-looking statements. Factors that
could cause Farmers' actual results to differ materially from those
described in the forward-looking statements can be found in Farmers'
Annual Report on Form 10-K for the year ended December 31, 2017, which
has been filed with the Securities and Exchange Commission (SEC) and is
available on Farmers' website (www.farmersbankgroup.com)
and on the SEC's website (www.sec.gov).
Forward-looking statements are not guarantees of future performance and
should not be relied upon as representing management's views as of any
subsequent date. Farmers does not undertake any obligation to update the
forward-looking statements to reflect the impact of circumstances or
events that may arise after the date of the forward-looking statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farmers National Banc Corp. and Subsidiaries
|
Consolidated Financial Highlights
|
(Amounts in thousands, except per share results) Unaudited
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income
|
|
For the Three Months Ended
|
|
For the Six Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
Percent
|
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2018
|
|
2017
|
|
Change
|
Total interest income
|
|
$22,474
|
|
$21,282
|
|
$21,084
|
|
$20,551
|
|
$20,042
|
|
$43,756
|
|
$38,892
|
|
12.5%
|
Total interest expense
|
|
2,912
|
|
2,336
|
|
2,017
|
|
1,876
|
|
1,669
|
|
5,248
|
|
2,988
|
|
75.6%
|
Net interest income
|
|
19,562
|
|
18,946
|
|
19,067
|
|
18,675
|
|
18,373
|
|
38,508
|
|
35,904
|
|
7.3%
|
Provision for loan losses
|
|
750
|
|
775
|
|
400
|
|
950
|
|
950
|
|
1,525
|
|
2,000
|
|
-23.8%
|
Noninterest income
|
|
6,306
|
|
6,010
|
|
6,051
|
|
6,058
|
|
6,055
|
|
12,316
|
|
11,942
|
|
3.1%
|
Acquisition related costs
|
|
0
|
|
25
|
|
88
|
|
270
|
|
104
|
|
25
|
|
166
|
|
-84.9%
|
Other expense
|
|
15,458
|
|
15,071
|
|
15,311
|
|
15,521
|
|
15,660
|
|
30,529
|
|
30,211
|
|
1.1%
|
Income before income taxes
|
|
9,660
|
|
9,085
|
|
9,319
|
|
7,992
|
|
7,714
|
|
18,745
|
|
15,469
|
|
21.2%
|
Income taxes
|
|
1,587
|
|
1,359
|
|
4,084
|
|
2,009
|
|
2,004
|
|
2,946
|
|
3,976
|
|
-25.9%
|
Net income
|
|
$8,073
|
|
$7,726
|
|
$5,235
|
|
$5,983
|
|
$5,710
|
|
$15,799
|
|
$11,493
|
|
37.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding
|
|
27,641
|
|
27,918
|
|
27,941
|
|
27,654
|
|
27,395
|
|
27,610
|
|
27,371
|
|
|
Basic and diluted earnings per share
|
|
0.29
|
|
0.28
|
|
0.19
|
|
0.22
|
|
0.21
|
|
0.57
|
|
0.42
|
|
|
Cash dividends
|
|
1,935
|
|
1,935
|
|
1,653
|
|
1,653
|
|
1,353
|
|
3,870
|
|
2,707
|
|
|
Cash dividends per share
|
|
0.07
|
|
0.07
|
|
0.06
|
|
0.06
|
|
0.05
|
|
0.14
|
|
0.10
|
|
|
Performance Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin (Annualized)
|
|
3.93%
|
|
3.92%
|
|
3.98%
|
|
3.96%
|
|
4.05%
|
|
3.92%
|
|
4.03%
|
|
|
Efficiency Ratio (Tax equivalent basis)
|
|
57.31%
|
|
57.98%
|
|
59.13%
|
|
59.93%
|
|
60.79%
|
|
57.64%
|
|
59.81%
|
|
|
Return on Average Assets (Annualized)
|
|
1.47%
|
|
1.45%
|
|
0.96%
|
|
1.12%
|
|
1.11%
|
|
1.46%
|
|
1.14%
|
|
|
Return on Average Equity (Annualized)
|
|
13.28%
|
|
13.03%
|
|
8.60%
|
|
10.15%
|
|
10.25%
|
|
13.13%
|
|
10.52%
|
|
|
Dividends to Net Income
|
|
23.97%
|
|
25.05%
|
|
31.58%
|
|
27.63%
|
|
23.70%
|
|
24.50%
|
|
23.55%
|
|
|
Other Performance Ratios (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Tangible Assets
|
|
1.50%
|
|
1.46%
|
|
0.99%
|
|
1.15%
|
|
1.14%
|
|
1.48%
|
|
1.16%
|
|
|
Return on Average Tangible Equity
|
|
16.24%
|
|
15.84%
|
|
10.69%
|
|
12.69%
|
|
12.77%
|
|
15.99%
|
|
13.10%
|
|
|
Return on Average Tangible Equity excluding acquisition costs and
deferred tax asset adjustments
|
|
16.24%
|
|
15.88%
|
|
14.25%
|
|
13.09%
|
|
12.98%
|
|
16.01%
|
|
13.26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Financial Condition
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$76,623
|
|
$52,149
|
|
$57,614
|
|
$84,006
|
|
$64,640
|
Securities available for sale
|
|
389,325
|
|
384,396
|
|
392,937
|
|
395,235
|
|
391,628
|
|
|
|
|
|
|
|
|
|
|
|
Loans held for sale
|
|
1,987
|
|
399
|
|
272
|
|
502
|
|
583
|
Loans
|
|
1,639,191
|
|
1,599,339
|
|
1,577,381
|
|
1,551,437
|
|
1,505,273
|
Less allowance for loan losses
|
|
12,764
|
|
12,550
|
|
12,315
|
|
12,104
|
|
11,746
|
Net Loans
|
|
1,626,427
|
|
1,586,789
|
|
1,565,066
|
|
1,539,333
|
|
1,493,527
|
|
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
143,577
|
|
143,784
|
|
143,180
|
|
142,949
|
|
135,286
|
Total Assets
|
|
$2,237,939
|
|
$2,167,517
|
|
$2,159,069
|
|
$2,162,025
|
|
$2,085,664
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing
|
|
$420,991
|
|
$402,499
|
|
$412,346
|
|
$413,991
|
|
$387,596
|
Interest-bearing
|
|
1,229,346
|
|
1,234,660
|
|
1,192,373
|
|
1,195,533
|
|
1,153,407
|
Total deposits
|
|
1,650,337
|
|
1,637,159
|
|
1,604,719
|
|
1,609,524
|
|
1,541,003
|
Other interest-bearing liabilities
|
|
322,565
|
|
274,816
|
|
296,559
|
|
295,270
|
|
298,827
|
Other liabilities
|
|
17,527
|
|
14,302
|
|
15,717
|
|
19,348
|
|
19,147
|
Total liabilities
|
|
1,990,429
|
|
1,926,277
|
|
1,916,995
|
|
1,924,142
|
|
1,858,977
|
Stockholders' Equity
|
|
247,510
|
|
241,240
|
|
242,074
|
|
237,883
|
|
226,687
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders' Equity
|
|
$2,237,939
|
|
$2,167,517
|
|
$2,159,069
|
|
$2,162,025
|
|
$2,085,664
|
|
|
|
|
|
|
|
|
|
|
|
Period-end shares outstanding
|
|
27,544
|
|
27,641
|
|
27,544
|
|
27,544
|
|
27,067
|
Book value per share
|
|
$8.99
|
|
$8.73
|
|
$8.79
|
|
$8.64
|
|
$8.38
|
Tangible book value per share (Non-GAAP)*
|
|
7.36
|
|
7.10
|
|
7.14
|
|
6.98
|
|
6.73
|
|
|
|
|
|
|
|
|
|
|
|
* Tangible book value per share is calculated by dividing tangible
common equity by average outstanding shares
|
|
|
|
|
|
|
|
|
|
|
|
Capital and Liquidity
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1 Capital Ratio (a)
|
|
12.16%
|
|
12.06%
|
|
11.86%
|
|
12.00%
|
|
11.80%
|
Total Risk Based Capital Ratio (a)
|
|
12.89%
|
|
12.94%
|
|
12.73%
|
|
12.86%
|
|
12.67%
|
Tier 1 Risk Based Capital Ratio (a)
|
|
12.16%
|
|
12.19%
|
|
11.99%
|
|
12.13%
|
|
11.93%
|
Tier 1 Leverage Ratio (a)
|
|
9.73%
|
|
9.68%
|
|
9.50%
|
|
9.70%
|
|
9.47%
|
Equity to Asset Ratio
|
|
11.06%
|
|
11.13%
|
|
11.21%
|
|
11.00%
|
|
10.87%
|
Tangible Common Equity Ratio
|
|
9.25%
|
|
9.24%
|
|
9.31%
|
|
9.08%
|
|
8.93%
|
Net Loans to Assets
|
|
72.68%
|
|
73.21%
|
|
72.49%
|
|
71.20%
|
|
71.61%
|
Loans to Deposits
|
|
99.32%
|
|
97.69%
|
|
98.30%
|
|
96.39%
|
|
97.68%
|
Asset Quality
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans
|
|
$8,406
|
|
$7,893
|
|
$7,695
|
|
$6,900
|
|
$6,355
|
Other Real Estate Owned
|
|
0
|
|
59
|
|
171
|
|
219
|
|
236
|
Non-performing assets
|
|
8,406
|
|
7,952
|
|
7,866
|
|
7,119
|
|
6,591
|
Loans 30 - 89 days delinquent
|
|
10,636
|
|
6,973
|
|
10,191
|
|
8,680
|
|
7,053
|
Charged-off loans
|
|
777
|
|
782
|
|
809
|
|
809
|
|
725
|
Recoveries
|
|
241
|
|
242
|
|
620
|
|
217
|
|
202
|
Net Charge-offs
|
|
536
|
|
540
|
|
189
|
|
592
|
|
523
|
Annualized Net Charge-offs to Average Net Loans Outstanding
|
|
0.13%
|
|
0.14%
|
|
0.05%
|
|
0.16%
|
|
0.14%
|
Allowance for Loan Losses to Total Loans
|
|
0.78%
|
|
0.78%
|
|
0.78%
|
|
0.78%
|
|
0.78%
|
Non-performing Loans to Total Loans
|
|
0.51%
|
|
0.49%
|
|
0.49%
|
|
0.44%
|
|
0.42%
|
Allowance to Non-performing Loans
|
|
151.84%
|
|
159.00%
|
|
160.04%
|
|
175.42%
|
|
184.83%
|
Non-performing Assets to Total Assets
|
|
0.38%
|
|
0.37%
|
|
0.36%
|
|
0.33%
|
|
0.32%
|
|
|
|
|
|
|
|
|
|
|
|
(a) June 30, 2018 ratio is estimated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended
|
Reconciliation of Total Assets to Tangible Assets
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2018
|
|
2017
|
Total Assets
|
|
$2,237,939
|
|
$2,167,517
|
|
$2,159,069
|
|
$2,162,025
|
|
$2,085,664
|
|
$2,237,939
|
|
$2,085,664
|
Less Goodwill and other intangibles
|
|
44,661
|
|
45,015
|
|
45,369
|
|
45,755
|
|
44,425
|
|
44,661
|
|
44,425
|
Tangible Assets
|
|
$2,193,278
|
|
$2,122,502
|
|
$2,113,700
|
|
$2,116,270
|
|
$2,041,239
|
|
$2,193,278
|
|
$2,041,239
|
Average Assets
|
|
2,199,960
|
|
2,162,706
|
|
2,158,895
|
|
2,118,170
|
|
2,055,758
|
|
2,181,431
|
|
2,025,939
|
Less average Goodwill and other intangibles
|
|
44,893
|
|
45,248
|
|
45,622
|
|
45,263
|
|
44,665
|
|
45,070
|
|
44,845
|
Average Tangible Assets
|
|
$2,155,067
|
|
$2,117,458
|
|
$2,113,273
|
|
$2,072,907
|
|
$2,011,093
|
|
$2,136,361
|
|
$1,981,094
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended
|
Reconciliation of Common Stockholders' Equity to Tangible Common
Equity
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2018
|
|
2017
|
Stockholders' Equity
|
|
$247,510
|
|
$241,240
|
|
$242,074
|
|
$237,883
|
|
$226,687
|
|
$247,510
|
|
$226,687
|
Less Goodwill and other intangibles
|
|
44,661
|
|
45,015
|
|
45,369
|
|
45,755
|
|
44,425
|
|
44,661
|
|
44,425
|
Tangible Common Equity
|
|
$202,849
|
|
$196,225
|
|
$196,705
|
|
$192,128
|
|
$182,262
|
|
$202,849
|
|
$182,262
|
Average Stockholders' Equity
|
|
243,792
|
|
240,387
|
|
241,554
|
|
233,843
|
|
223,544
|
|
242,682
|
|
220,308
|
Less Average Goodwill and other intangibles
|
|
44,893
|
|
45,248
|
|
45,622
|
|
45,263
|
|
44,665
|
|
45,070
|
|
44,845
|
Average Tangible Common Equity
|
|
$198,899
|
|
$195,139
|
|
$195,932
|
|
$188,580
|
|
$178,879
|
|
$197,612
|
|
$175,463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income, Excluding Acquisition Related Costs
and Deferred Tax Asset Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended
|
|
|
For the Three Months Ended
|
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
|
2018
|
|
2017
|
Net income
|
|
$8,073
|
|
$7,726
|
|
$5,235
|
|
$5,983
|
|
$5,710
|
|
$15,799
|
|
$11,493
|
Acquisition related costs - tax equated
|
|
0
|
|
22
|
|
(48)
|
|
190
|
|
94
|
|
22
|
|
141
|
Deferred tax asset adjustments
|
|
0
|
|
0
|
|
1,793
|
|
0
|
|
0
|
|
0
|
|
0
|
Net income - Adjusted
|
|
$8,073
|
|
$7,748
|
|
$6,980
|
|
$6,173
|
|
$5,804
|
|
$15,821
|
|
$11,634
|
Average shares outstanding
|
|
27,641
|
|
27,918
|
|
27,941
|
|
27,654
|
|
27,395
|
|
27,610
|
|
27,371
|
EPS excluding acquisition costs and deferred tax asset adjustments
|
|
$0.29
|
|
$0.28
|
|
$0.25
|
|
$0.22
|
|
$0.21
|
|
$0.57
|
|
$0.43
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
End of Period Loan Balances
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
Commercial real estate
|
|
$523,417
|
|
$511,628
|
|
$513,707
|
|
$500,426
|
|
$476,844
|
Commercial
|
|
232,672
|
|
231,498
|
|
220,441
|
|
218,946
|
|
215,676
|
Residential real estate
|
|
479,486
|
|
472,350
|
|
469,442
|
|
459,702
|
|
445,991
|
Consumer
|
|
219,138
|
|
210,088
|
|
207,851
|
|
213,918
|
|
220,454
|
Agricultural loans
|
|
181,173
|
|
170,725
|
|
163,081
|
|
155,336
|
|
142,687
|
Total, excluding net deferred loan costs
|
|
$1,635,886
|
|
$1,596,289
|
|
$1,574,522
|
|
$1,548,328
|
|
$1,501,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
Noninterest Income
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
Service charges on deposit accounts
|
|
$985
|
|
$1,003
|
|
$1,060
|
|
$1,077
|
|
$989
|
Bank owned life insurance income
|
|
219
|
|
222
|
|
246
|
|
193
|
|
191
|
Trust fees
|
|
1,740
|
|
1,807
|
|
1,622
|
|
1,608
|
|
1,523
|
Insurance agency commissions
|
|
713
|
|
699
|
|
530
|
|
531
|
|
672
|
Security gains
|
|
27
|
|
18
|
|
5
|
|
0
|
|
(14)
|
Retirement plan consulting fees
|
|
465
|
|
379
|
|
465
|
|
480
|
|
399
|
Investment commissions
|
|
315
|
|
256
|
|
260
|
|
184
|
|
253
|
Net gains on sale of loans
|
|
606
|
|
487
|
|
810
|
|
758
|
|
891
|
Debit card and EFT fees
|
|
870
|
|
806
|
|
830
|
|
770
|
|
836
|
Other operating income
|
|
366
|
|
333
|
|
223
|
|
457
|
|
315
|
Total Noninterest Income
|
|
$6,306
|
|
$6,010
|
|
$6,051
|
|
$6,058
|
|
$6,055
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
June 30,
|
|
March 31,
|
|
Dec. 31,
|
|
Sept. 30,
|
|
June 30,
|
Noninterest Expense
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
|
2017
|
Salaries and employee benefits
|
|
$8,828
|
|
$8,738
|
|
$8,697
|
|
$8,922
|
|
$8,853
|
Occupancy and equipment
|
|
1,611
|
|
1,704
|
|
1,528
|
|
1,546
|
|
1,631
|
State and local taxes
|
|
479
|
|
459
|
|
386
|
|
436
|
|
424
|
Professional fees
|
|
737
|
|
698
|
|
643
|
|
726
|
|
775
|
Merger related costs
|
|
0
|
|
25
|
|
88
|
|
270
|
|
104
|
Litigation settlement expense
|
|
0
|
|
0
|
|
0
|
|
0
|
|
155
|
Advertising
|
|
379
|
|
275
|
|
561
|
|
405
|
|
317
|
FDIC insurance
|
|
225
|
|
222
|
|
165
|
|
235
|
|
234
|
Intangible amortization
|
|
355
|
|
354
|
|
386
|
|
379
|
|
364
|
Core processing charges
|
|
794
|
|
739
|
|
806
|
|
702
|
|
717
|
Telephone and data
|
|
238
|
|
237
|
|
241
|
|
249
|
|
242
|
Other operating expenses
|
|
1,812
|
|
1,645
|
|
1,898
|
|
1,921
|
|
1,948
|
Total Noninterest Expense
|
|
$15,458
|
|
$15,096
|
|
$15,399
|
|
$15,791
|
|
$15,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Balance Sheets and Related Yields and Rates
|
(Dollar Amounts in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
|
AVERAGE
|
|
|
|
|
|
AVERAGE
|
|
|
|
|
|
|
|
|
INTEREST
|
|
|
|
|
|
INTEREST
|
|
|
|
|
BALANCE
|
|
(1)
|
|
RATE (1)
|
|
BALANCE
|
|
(1)
|
|
RATE (1)
|
EARNING ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (2)
|
|
$1,606,993
|
|
$19,636
|
|
4.90%
|
|
$1,472,575
|
|
$17,572
|
|
4.79%
|
Taxable securities
|
|
202,588
|
|
1,228
|
|
2.43
|
|
216,414
|
|
1,265
|
|
2.34
|
Tax-exempt securities (2)
|
|
190,494
|
|
1,737
|
|
3.66
|
|
164,369
|
|
1,791
|
|
4.37
|
Equity securities
|
|
11,214
|
|
154
|
|
5.51
|
|
10,216
|
|
123
|
|
4.83
|
Federal funds sold and other
|
|
33,541
|
|
167
|
|
2.00
|
|
33,053
|
|
82
|
|
1.00
|
Total earning assets
|
|
2,044,830
|
|
22,922
|
|
4.50
|
|
1,896,627
|
|
20,833
|
|
4.41
|
Nonearning assets
|
|
155,130
|
|
|
|
|
|
159,131
|
|
|
|
|
Total assets
|
|
$2,199,960
|
|
|
|
|
|
$2,055,758
|
|
|
|
|
INTEREST-BEARING LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
$283,429
|
|
$957
|
|
1.35%
|
|
$234,952
|
|
$652
|
|
1.11%
|
Savings deposits
|
|
477,365
|
|
256
|
|
0.22
|
|
526,398
|
|
183
|
|
0.14
|
Demand deposits
|
|
469,609
|
|
510
|
|
0.44
|
|
399,413
|
|
281
|
|
0.28
|
Short term borrowings
|
|
298,802
|
|
1,140
|
|
1.53
|
|
271,313
|
|
501
|
|
0.74
|
Long term borrowings
|
|
6,674
|
|
49
|
|
2.94
|
|
9,705
|
|
52
|
|
2.15
|
Total interest-bearing liabilities
|
|
$1,535,879
|
|
2,912
|
|
0.76
|
|
$1,441,781
|
|
1,669
|
|
0.46
|
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
408,567
|
|
|
|
|
|
378,499
|
|
|
|
|
Other liabilities
|
|
11,722
|
|
|
|
|
|
11,934
|
|
|
|
|
Stockholders' equity
|
|
243,792
|
|
|
|
|
|
223,544
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$2,199,960
|
|
|
|
|
|
$2,055,758
|
|
|
|
|
Net interest income and interest rate spread
|
|
|
|
$20,010
|
|
3.74%
|
|
|
|
$19,164
|
|
3.95%
|
Net interest margin
|
|
|
|
|
|
3.93%
|
|
|
|
|
|
4.05%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Interest and yields are calculated on a tax-equivalent basis where
applicable.
|
|
|
|
(2)
|
|
For 2018, adjustments of $91 thousand and $357 thousand,
respectively, were made to tax equate income on tax exempt loans
and tax exempt securities. For 2017, adjustments of $170 thousand
and $621 thousand, respectively, were made to tax equate income on
tax exempt loans and tax exempt securities. These adjustments were
based on a marginal federal income tax rate of 21%, less
disallowances.
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
|
|
AVERAGE
|
|
|
|
|
|
AVERAGE
|
|
|
|
|
|
|
|
|
|
INTEREST
|
|
|
|
|
|
INTEREST
|
|
|
|
|
|
BALANCE
|
|
(1)
|
|
RATE (1)
|
|
BALANCE
|
|
(1)
|
|
RATE (1)
|
|
EARNING ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans (2)
|
|
$1,586,140
|
|
$38,145
|
|
4.85%
|
|
$1,454,599
|
|
$34,210
|
|
4.74%
|
|
Taxable securities
|
|
204,455
|
|
2,461
|
|
2.43
|
|
214,076
|
|
2,383
|
|
2.24
|
|
Tax-exempt securities
|
|
188,041
|
|
3,417
|
|
3.66
|
|
158,674
|
|
3,430
|
|
4.36
|
|
Equity securities (2)
|
|
11,051
|
|
300
|
|
5.47
|
|
10,071
|
|
238
|
|
4.77
|
|
Federal funds sold and other
|
|
34,308
|
|
312
|
|
1.83
|
|
33,637
|
|
145
|
|
0.87
|
|
Total earning assets
|
|
2,023,995
|
|
44,635
|
|
4.45
|
|
1,871,057
|
|
40,406
|
|
4.35
|
|
Nonearning assets
|
|
157,436
|
|
|
|
|
|
154,882
|
|
|
|
|
|
Total assets
|
|
$2,181,431
|
|
|
|
|
|
$2,025,939
|
|
|
|
|
|
INTEREST-BEARING LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Time deposits
|
|
$277,408
|
|
$1,770
|
|
1.29%
|
|
$235,036
|
|
$1,152
|
|
0.99%
|
|
Savings deposits
|
|
479,870
|
|
438
|
|
0.18
|
|
523,257
|
|
353
|
|
0.14
|
|
Demand deposits
|
|
460,503
|
|
926
|
|
0.41
|
|
392,049
|
|
525
|
|
0.27
|
|
Short term borrowings
|
|
290,617
|
|
2,021
|
|
1.40
|
|
260,469
|
|
828
|
|
0.64
|
|
Long term borrowings
|
|
6,768
|
|
93
|
|
2.77
|
|
10,991
|
|
130
|
|
2.39
|
|
Total interest-bearing liabilities
|
|
$1,515,166
|
|
5,248
|
|
0.70
|
|
$1,421,802
|
|
2,988
|
|
0.42
|
|
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits
|
|
$409,705
|
|
|
|
|
|
$370,790
|
|
|
|
|
|
Other liabilities
|
|
13,878
|
|
|
|
|
|
13,039
|
|
|
|
|
|
Stockholders' equity
|
|
242,682
|
|
|
|
|
|
220,308
|
|
|
|
|
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$2,181,431
|
|
|
|
|
|
$2,025,939
|
|
|
|
|
|
Net interest income and interest rate spread
|
|
|
|
$39,387
|
|
3.75%
|
|
|
|
$37,418
|
|
3.93%
|
|
Net interest margin
|
|
|
|
|
|
3.92%
|
|
|
|
|
|
4.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Interest and yields are calculated on a tax-equivalent basis where
applicable.
|
|
|
|
(2)
|
|
For 2018, adjustments of $173 thousand and $706 thousand,
respectively, were made to tax equate income on tax exempt loans
and tax exempt securities. For 2017, adjustments of $325 thousand
and $1.2 million, respectively, were made to tax equate income on
tax exempt loans and tax exempt securities. These adjustments were
based on a marginal federal income tax rate of 21%, less
disallowances.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180718005155/en/
[ Back To TMCnet.com's Homepage ]
|