Farmers National Banc Corp. reported net income of $13.6 million, or $0.36 per diluted share, for the first quarter of 2025. This represents a notable increase from $11.2 million, or $0.30 per diluted share, in the first quarter of 2024. The results included pretax losses of $1.3 million on the sale of investment securities and other assets.
Net interest income rose to $34.2 million, an 8% increase from $31.7 million in the prior year period, driven by a 15 basis point expansion in the net interest margin to 2.85%. This improvement stemmed from a 9 basis point increase in interest-earning asset yields and a 9 basis point decrease in the cost of interest-bearing liabilities.
Noninterest income was a significant growth driver, increasing by over $2 million to $10.5 million, up from $8.4 million in Q1 2024. This growth was broad-based, with increases in service charges on deposit accounts ($1.8 million), bank owned life insurance income ($810 thousand), trust fees ($2.6 million), and insurance agency commissions ($1.7 million).
Retirement plan consulting fees saw a substantial jump to $798 thousand, directly benefiting from the acquisition of Crest Retirement Advisors in late 2024. Gains on the sale of loans also increased to $326 thousand due to greater saleable volume, and debit card income grew to $1.9 million from better volumes.
Asset quality metrics showed improvement, with nonperforming loans decreasing to $20.7 million, or 0.64% of total loans, from $22.8 million, or 0.70%, at December 31, 2024. Total deposits grew significantly to $4.48 billion from $4.27 billion, including $85 million in acquired brokered time deposits, allowing for a reduction in short-term borrowings from $305 million to $102 million.
Total stockholders' equity increased to $429.1 million from $406.0 million at year-end 2024, primarily due to a $16.0 million decrease in accumulated other comprehensive loss and retained earnings growth of $7.2 million. The company maintains capital ratios well above regulatory minimums, classifying it as well capitalized.
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