Farmers National Banc Corp. has reported its earnings for the first quarter of 2025, and there are several key financial metrics that showcase the company's performance.
Net interest margin increased to 2.85% in the first quarter of 2025 from 2.70% in the first quarter of 2024, representing a positive trend. The efficiency ratio also improved to 59.6% in the first quarter of 2025 compared to the first quarter of 2024, indicating enhanced operational efficiency.
The company restructured $23.8 million of available for sale securities in March with a 260 basis point pickup in reinvestment yield, demonstrating strategic financial decision-making.
Credit metrics remained solid with the non-performing loans to loans ratio falling to 0.64% at March 31, 2025, from 0.70% at December 31, 2024, reflecting improved asset quality.
Annualized net charge-offs as a percentage of average loans were only 4 basis points in the first quarter of 2025, down from 13 basis points in the first quarter of 2024, highlighting improved credit quality.
Net income for the first quarter of 2025 was $13.6 million, or $0.36 per diluted share, compared to $11.2 million, or $0.30 per diluted share, for the first quarter of 2024, indicating growth in profitability.
Total assets increased to $5.16 billion in the first quarter of 2025 from $5.12 billion at December 31, 2024, while total deposits increased to $4.48 billion at March 31, 2025, from $4.27 billion at December 31, 2024, pointing to expansion in the company's financial position.
Noninterest income also saw an uptick, increasing from $8.4 million in the first quarter of 2024 to $10.5 million in the first quarter of 2025. This was due to improved profitability across all fee-based lines of business and lower losses on the sale of available for sale securities.
Noninterest expense increased to $28.5 million in the first quarter of 2025 from $27.0 million in the first quarter of 2024. This increase was primarily driven by higher salaries and employee benefits, reflecting investment in human capital.
The company had access to an additional $749.3 million in FHLB borrowing capacity at March 31, 2025, along with $319.8 million in available for sale securities that are available for pledging, indicating strong liquidity.
Following these announcements, the company's shares moved 3.6%, and are now trading at a price of $12.4. If you want to know more, read the company's complete 8-K report here.
