FARMERS NATIONAL BANC CORP /OH/ [FMNB] Filings

Large accelerated filer

Accelerated filer

Non-accelerated filer

Small reporting company

Emerging growth company

10-Q 1 fmnb-20230630.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

For the Quarterly period ended June 30, 2023

Commission file number 001-35296

FARMERS NATIONAL BANC CORP.

(Exact name of registrant as specified in its charter)


Ohio		34-1371693
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No)

20 South Broad Street Canfield, OH		44406
(Address of principal executive offices)		(Zip Code)

(330) 533-3341

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act.


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, No Par Value	FMNB	The NASDAQ Stock Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class		Outstanding at July 31, 2023
Common Stock, No Par Value		37,487,680 shares


		Page Number
PART I - FINANCIAL INFORMATION

Item 1	Financial Statements (Unaudited)

	Included in Part I of this report:

	Farmers National Banc Corp. and Subsidiaries

	Consolidated Condensed Balance Sheets (Unaudited)	2
	Consolidated Condensed Statements of Income (Unaudited)	3
	Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited)	4
	Consolidated Condensed Statements of Stockholders’ Equity (Unaudited)	5
	Consolidated Condensed Statements of Cash Flows (Unaudited)	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7

Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	37

Item 3	Quantitative and Qualitative Disclosures About Market Risk	46

Item 4	Controls and Procedures	47

PART II - OTHER INFORMATION		47

Item 1	Legal Proceedings	47

Item 1A	Risk Factors	47

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	47

Item 3	Defaults Upon Senior Securities	48

Item 4	Mine Safety Disclosures	48

Item 5	Other Information	48

Item 6	Exhibits	49

SIGNATURES		50

10-Q Certifications

Section 906 Certifications

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)

FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES


	(In Thousands of Dollars)
	June 30, 2023	December 31, 2022
ASSETS
Cash and due from banks	$29,800	$21,395
Federal funds sold and other	86,263	54,156
TOTAL CASH AND CASH EQUIVALENTS	116,063	75,551
Securities available for sale (Amortized cost $1,561,850 in 2023 and $1,534,512 in 2022)	1,316,878	1,268,025
Other investments	44,975	33,444
Loans held for sale, at fair value	2,197	858
Loans	3,155,200	2,404,750
Less allowance for credit losses	34,957	26,978
NET LOANS	3,120,243	2,377,772
Premises and equipment, net	53,696	39,173
Goodwill	167,907	94,640
Other intangibles, net	24,144	7,026
Bank owned life insurance	98,590	74,972
Other assets	128,761	110,739
TOTAL ASSETS	$5,073,454	$4,082,200

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$1,084,232	$896,957
Interest-bearing	3,165,381	2,526,760
Brokered time deposits	21,135	138,051
TOTAL DEPOSITS	4,270,748	3,561,768
Short-term borrowings	300,000	95,000
Long-term borrowings	88,437	88,211
Other liabilities	47,278	44,926
TOTAL LIABILITIES	4,706,463	3,789,905
Commitments and contingent liabilities
Stockholders' Equity:
Common Stock - Authorized 50,000,000 shares in 2023 and 2022; 39,321,709 shares issued in 2023 and 35,128,962 in 2022; 37,457,253 and 34,055,125 shares outstanding, respectively	364,644	305,340
Retained earnings	221,612	212,375
Accumulated other comprehensive (loss)	(193,528)	(210,490)
Treasury stock, at cost; 1,864,456 and 1,073,837 shares in 2023 and 2022, respectively	(25,737)	(14,930)
TOTAL STOCKHOLDERS' EQUITY	366,991	292,295
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$5,073,454	$4,082,200

See accompanying notes

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES


	(In Thousands except Per Share Data)
	For the Three Months Ended						For the Six Months Ended
	June 30, 2023			June 30, 2022			June 30, 2023		June 30, 2022
INTEREST AND DIVIDEND INCOME
Loans, including fees	$	42,331		$	25,714		$	83,187	$	51,276
Taxable securities		6,654			5,223			13,204		9,810
Tax exempt securities		2,674			3,038			5,515		5,990
Dividends		594			216			970		346
Federal funds sold and other interest income		551			95			1,161		143
TOTAL INTEREST AND DIVIDEND INCOME		52,804			34,286			104,037		67,565
INTEREST EXPENSE
Deposits		14,491			1,651			27,198		2,895
Short-term borrowings		2,727			97			3,648		98
Long-term borrowings		1,008			827			2,003		1,619
TOTAL INTEREST EXPENSE		18,226			2,575			32,849		4,612
NET INTEREST INCOME		34,578			31,711			71,188		62,953
Provision (credit) for credit losses		(255	)		482			8,050		(448	)
Provision for unfunded loans		280			134			574		706
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		34,553			31,095			62,564		62,695
NONINTEREST INCOME
Service charges on deposit accounts		1,501			1,139			2,933		2,284
Bank owned life insurance income		584			405			1,131		814
Trust fees		2,248			2,376			4,835		4,895
Insurance agency commissions		1,332			1,086			2,788		2,133
Security gains (losses), including fair value changes for equity securities		13			(60	)		134		(71	)
Retirement plan consulting fees		382			323			689		720
Investment commissions		476			557			869		1,251
Net gains on sale of loans		406			365			716		1,494
Other mortgage banking income, net		234			39			387		99
Debit card and EFT fees		1,810			1,528			3,599		2,944
Legal settlement		0			0			0		8,375
Other operating income		463			1,719			1,793		2,237
TOTAL NONINTEREST INCOME		9,449			9,477			19,874		27,175
NONINTEREST EXPENSES

FARMERS NATIONAL BANC CORP /OH/ [FMNB] Filings
10-Q	[2023-08-08]
10-Q	[2023-05-05]
10-K	[2023-03-09]
10-Q	[2022-11-08]
10-Q	[2022-08-04]
10-Q	[2022-05-05]
10-K	[2022-03-09]
10-Q	[2021-11-04]
10-Q	[2021-08-05]
10-Q	[2021-05-06]
10-K	[2021-03-04]
10-Q	[2020-11-05]
10-Q	[2020-08-06]
10-Q	[2020-05-07]
10-K	[2020-03-05]
10-Q	[2019-11-06]
10-Q	[2019-08-07]
10-Q	[2019-05-08]
10-K	[2019-03-05]
10-Q	[2018-11-08]
10-Q	[2018-08-08]
10-Q	[2018-05-09]
10-K	[2018-03-06]
10-Q	[2017-11-08]
10-Q	[2017-08-08]
10-Q	[2017-05-09]
10-K	[2017-03-07]
10-Q	[2016-11-08]
10-Q	[2016-08-08]
10-Q	[2016-05-05]
10-K	[2016-03-10]
10-Q	[2015-11-09]
10-Q	[2015-08-10]
10-Q	[2015-05-11]
10-K	[2015-02-27]
10-Q	[2014-11-06]
10-Q	[2014-08-07]
10-Q	[2014-05-08]
10-K	[2014-03-13]
10-Q	[2013-11-07]
10-Q	[2013-08-08]
10-Q	[2013-05-09]
10-K	[2013-03-13]
10-Q	[2012-11-08]
10-Q	[2012-08-08]
10-Q	[2012-05-09]
10-K	[2012-03-14]