- Farmers National Banc Corp. (FMNB, Financial) reported a 21.4% increase in net income for Q1 2025.
- Net interest margin improved to 2.85%, from 2.70% year-over-year.
- Deposits grew by $214.5 million to $4.48 billion.
Farmers National Banc Corp. (FMNB) reported strong financial results for the first quarter of 2025, marking its 169th consecutive quarter of profitability. Net income increased to $13.6 million, or $0.36 per diluted share, compared to $11.2 million in the same period of 2024. Excluding security sale losses, the adjusted net income reached $14.6 million, or $0.39 per diluted share.
The company achieved a net interest margin of 2.85%, up from 2.70% the previous year, attributed to higher yields on earning assets and reduced funding costs. Its total assets grew to $5.16 billion, and total deposits rose to $4.48 billion, a $214.5 million increase, supported by $85.0 million in brokered CDs and a $129.5 million boost in customer deposits.
Credit quality metrics remain solid with a reduced non-performing loans ratio of 0.64%. During Q1 2025, Farmers National Banc Corp. also restructured $23.8 million in securities, achieving a 260 basis point yield improvement. The company faced a slight decline in total loans to $3.25 billion due to reduced C&I and CRE lending activity amid rising business uncertainty.
The strategic move to open a new commercial loan production office in Columbus was notable, providing an entry point into a growth market. This action aligns with the company's strong liquidity position and effective cost management, as showcased by an improved efficiency ratio of 59.6%.
