Exhibit 99.1
Friday, October 17, 2003
PRESS RELEASE
Source: Farmers National Banc Corp.
Frank L. Paden, President
20 South Broad St. P.O. Box 555
Canfield, OH 44406
330-533-3341
330-533-0451 (FAX)
Email: exec@fnbcanfield.com
FARMERS NATIONAL BANC CORP. REPORTS EARNINGS FOR
THIRD QUARTER 2003 AND DECLARES STOCK DIVIDEND
CANFIELD, Ohio (October 17, 2003) - Farmers National Banc Corp, (OTC BB:
FMNB), the parent holding company of Farmers National Bank, today reported its
net earnings for the third quarter of 2003.
For the three months ended September 30, 2003, Farmers National Banc Corp.
achieved net income of $2.442 million. This represented an increase of 9% over
the same three-month period a year ago. Earnings per diluted share were $0.19
for the quarter ended September 30, 2003, up 6% over the $0.18 per diluted share
in the same quarter in 2002.
For the nine months ended September 30, 2003, Farmers National Banc Corp.
recorded net income of $7.071 million, or $.56 per diluted share, an increase of
25% over the $5.656 million, and up 24% over the $.45 per diluted share reported
for the same nine months in 2002.
Net interest income increased 14% during the nine months ended September
30, 2003, as compared to the same nine-month period in 2002, while non-interest
expenses increased only 5% during these same periods.
These results equate to a 1.20% Annualized Return on Average Assets and a
11.52% Annualized Return on Average Equity, as compared to 1.08% and 10.37% for
the same period in 2002. The company's efficiency ratio improved from 60.46% for
the nine-month period ending September 2002, to 56.14% for the same period in
2003.
As of September 30, 2003, total assets for the corporation are $802.822
million, an increase of 7% over the $750.828 million recorded at September 30,
2002.
Total loans at September 30, 2003 were $463.611 million, an increase of 3%
over the $448.069 million in total loans reported on September 30, 2002. During
those same periods, the company has increased its Investment Securities
portfolio by 22% from $238.148 million on September 30, 2002 up to $291.729
million on September 30, 2003.
On October 14, 2003, the Board of Directors declared a 2% stock dividend,
payable on November 28, 2003 to shareholders of record on November 14, 2003.
This stock dividend marks the twenty-eighth consecutive year that the
corporation paid this type of dividend.
Farmers National Bank operates sixteen banking offices throughout Mahoning,
Trumbull and Columbiana Counties. The bank offers a wide range of banking and
investment services to companies and individuals, and maintains a website at
www.fnbcanfield.com.
This earnings announcement presents a brief analysis of the assets and
liability structure of the Corporation and a brief discussion of the results of
operations for each of the periods presented. Certain statements in this
announcement that relate to Farmers National Banc Corp.'s plans, objectives, or
future performance may be deemed to be forward-looking statements within the
Private Securities Litigation Reform Act of 1995. Such statements are based on
management's current expectations. Actual strategies and results in future
periods may differ materially from those currently expected because of various
risks and uncertainties.
Among the important factors that could cause actual results to differ
materially are interest rates, changes in the mix of the company's business,
competitive pressures, general economic conditions and the risk factors detailed
in the company's other periodic reports and registration statements filed with
the Securities and Exchange Commission.
FINANCIAL HIGHLIGHTS
FARMERS NATIONAL BANC CORP. AND SUBSIDIARY
(Amounts in thousands, except per share data)
FOR THE NINE MONTHS ENDED SEPT. 30, 2003 SEPT. 30, 2002
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Net Income $7,071 $5,656
Per share * 0.56 0.45
Cash dividends paid 5,578 5,070
Per share 0.45 0.42
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AT THE END OF NINE MONTHS
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Total Assets $802,822 $750,828
Loans 463,611 448,069
Total Deposits 624,368 581,954
Investment Securities 291,729 238,148
Stockholders' Equity 79,402 79,788
Book Value Per Share 6.39 6.56
Shares Outstanding 12,422 12,158
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RATIOS
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Return on Average Assets 1.20% 1.08%
Return on Average Equity 11.52 10.37
Efficiency Ratio 56.14 60.46
Equity to Asset Ratio 9.89 10.63
Dividends to Net Income 78.89 89.64
Loans to Assets 57.75 59.68
Net Loans to Deposits 73.16 75.83
Allowance for Loan Losses to Total Loans 1.47 1.51
Non-performing Loans to Total Loans 0.36 0.34
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* Net income per share amounts have been adjusted for the recently announced
2% stock dividend.