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Dec 31, 2022
Farmers National Q4 2022 Earnings Report
Farmers National Banc Corp. reported strong Q4 2022 earnings driven by record net income and strategic acquisitions.
Key Takeaways
Farmers National Banc Corp. reported a net income of $13.4 million for Q4 2022, an increase compared to $5.7 million for Q4 2021. Diluted earnings per share were $0.39, compared to $0.18 in the same period last year. The company's results were impacted by merger-related costs and losses on the sale of securities and other assets.
Earnings per diluted share were $0.39 ($0.42 excluding certain items, non-GAAP).
Loan growth of $5.2 million for the quarter, excluding PPP loans.
Efficiency ratio, (excluding certain items, non-GAAP), was 51.1%.
Return on average assets, (excluding certain items, non-GAAP), was 1.36%.
Farmers National
Farmers National
Forward Guidance
The Company expects competition for deposits to remain highly elevated for the foreseeable future which will continue to increase funding costs. The volatility in the bond market is expected to continue in 2023, which may result in increased volatility in the fair value of the Company’s available for sale securities.
Challenges Ahead
- Intense competition from both other banks and the treasury market itself drove the decline in deposits.
- Some customers are utilizing deposit balances to counter the higher cost of living brought on by the inflationary environment in 2022.
- Competition for deposits to remain highly elevated for the foreseeable future which will continue to increase funding costs.
- Volatility in the bond market is expected to continue in 2023, which may result in increased volatility in the fair value of the Company’s available for sale securities.
- Loans continue to reprice higher but cannot keep up with the increase in funding costs.