NASDAQ$FMNB

Farmers National Banc Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Farmers National Banc Corp. reported earnings for Q3 2023.

Farmers National Banc Corp. announced a net income of $13.3 million, or $0.36 per diluted share, for the third quarter of 2023. The results reflect the benefits of a diverse business model and a focus on maintaining strong asset quality and controlling operating expenses, despite the rapid increase in interest rates.

  • Earnings per diluted share were $0.36 ($0.40 excluding certain items, non-GAAP) for Q3 2023.
  • The company has maintained 163 consecutive quarters of profitability.
  • Hedges were purchased to improve asset sensitivity.
  • Strong asset quality was reported with non-performing assets to total assets at 0.58% as of September 30, 2023.

Headline financials

Total Revenue

$43.6M

Previous: $40.6M+7.4%
EPS (adj)

$0.40

Previous: $0.48-16.7%
Loan to Deposit Ratio

70.2%

No prior period
Non-performing Assets to Total Assets

0.4%

No prior period
Capital Expenditures

-$1.98M

Previous: -$4.76M+58.4%
Free Cash Flow

$13.3M

Previous: $10.7M+24.6%
Net Income

$13.3M

Previous: $15.4M-13.8%
Operating Income

$17.1M

Previous: $30.9M-44.6%
Gross Profit

$43.4M

Previous: $40.2M+8.0%
Cash & Equivalents

$25.3M

Previous: $20.8M+21.7%
Total Assets

$4.97B

Previous: $4.12B+20.7%
Stock-Based Comp

$744K

Previous: $513K+45.0%

Revenue & EPS history

Farmers National · Revenue · Quarterly

$43.6M

Q3 2023+7.4%vs Q3 2022
Beat estimate in 7 of 14 quarters(50%)
ActualEstimate

Forward guidance

The company expects bond market volatility to continue through 2023 and will allow the size of the securities portfolio to shrink to optimize profitability. Competition for deposits remains high and the company expects this will continue to place pressure on funding costs and deposit volumes.

Tailwinds

  • Farmers produced solid third quarter financial results reflecting the benefits of our diverse business model.
  • Farmers focused on maintaining strong asset quality.
  • Farmers focused on controlling operating expenses.
  • Core banking principals create a solid foundation for Farmers to navigate an increasingly uncertain near-term economic environment.
  • Farmers is supporting our long-term growth strategies.

Headwinds

  • The rapid increase in interest rates over the past year and a half.
  • The company expects bond market volatility to continue through 2023.
  • The company expects that it will continue to allow the size of the securities portfolio to shrink to optimize profitability.
  • Competition for deposits remains high
  • The company expects this will continue to place pressure on funding costs and deposit volumes.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.0%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+1.8%

Avg return

30 days after

50%

33 / 66 earnings

Positive

+8.6%

Q2 2024

Best reaction

-9.3%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.5%+3.3%+3.1%
Q4 2025-6.2%-4.2%-4.9%
Q3 2025-4.7%-3.7%-4.6%
Q2 2025-1.0%-2.6%+1.7%
Q1 2025+2.7%+5.1%+13.2%
Q4 2024+2.6%+0.1%+5.7%
Q3 2024-7.1%-5.4%+5.8%
Q2 2024+8.6%+4.9%+2.5%
Q1 2024-3.7%-5.1%-2.1%
Q4 2023+3.9%+4.0%+0.0%
Q3 2023+4.1%+5.0%+18.5%
Q2 2023-1.4%-0.6%-8.7%
Q1 2023+3.4%+8.2%+10.1%
Q4 2022-8.2%-4.0%-0.3%
Q3 2022-2.5%-0.1%+10.4%
Q2 2022-9.3%-8.4%-7.0%
Q1 2022-1.2%-0.4%-0.4%
Q4 2021-3.8%-4.5%-5.1%
Q3 2021+4.6%-0.7%-1.9%
Q2 2021-0.8%-0.3%+3.6%
Q1 2021+2.2%+0.0%+5.7%
Q4 2020+3.3%+3.1%+3.7%
Q3 2020+1.5%-4.4%+12.2%
Q2 2020-0.5%-0.3%+5.3%
Q1 2020-3.1%-13.2%-5.2%
Q4 2019+1.1%+1.1%-5.2%
Q3 2019-1.0%-0.5%+2.2%
Q2 2019-0.6%+0.8%-7.7%
Q1 2019+2.0%+4.8%+2.6%
Q4 2018+0.2%+3.7%+15.1%
Q3 2018-0.1%-4.9%-3.5%
Q2 2018+1.2%+3.4%-2.5%
Q1 2018+2.4%+3.8%+9.3%
Q4 2017-2.3%-8.8%-8.2%
Q3 2017+2.3%-5.5%-8.1%
Q2 2017-4.7%-6.8%-8.8%
Q1 2017+3.8%+6.4%+2.3%
Q4 2016+1.5%-8.6%+4.1%
Q3 2016+1.0%+0.9%+12.3%
Q2 2016+2.8%+9.4%+7.9%
Q1 2016-0.1%
Q4 2015-0.1%
Q3 2015+0.0%
Q2 2015+1.1%
Q1 2015-1.9%
Q4 2014+0.3%
Q3 2014-1.1%
Q2 2014+1.4%
Q1 2014-1.7%
Q4 2013+3.9%
Q3 2013-0.3%
Q2 2013+1.0%
Q1 2013-2.1%
Q4 2011+0.0%
Q4 2012+2.1%
Q3 2012+0.0%
Q2 2012-4.1%
Q1 2012-1.2%
Q4 2009+1.9%
Q3 2011+1.9%
Q4 2010+0.9%
Q2 2011+0.9%
Q1 2011+1.0%
Q3 2010+1.4%
Q2 2010+0.0%
Q1 2010+0.2%

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