Breaking Down Farmers National Banc Corp. (FMNB) Financial Health: Key Insights for Investors

Are you keeping a close watch on Farmers National Banc Corp.'s financial performance? With total assets hitting $5.43 billion and net income available to common shareholders reaching $49.7 million in 2024, understanding the bank's financial health is crucial for making informed investment decisions. How does their strategic focus on community banking and wealth management influence these figures, and what do key metrics like the net interest margin of 3.18% and a return on average assets of 0.94% really tell us about their operational efficiency and profitability? Dive in to explore these insights and more, ensuring you're equipped to assess Farmers National Banc Corp.'s financial standing effectively.

Farmers National Banc Corp. (FMNB) Revenue Analysis

Understanding Farmers National Banc Corp.'s (FMNB) revenue streams is crucial for investors seeking to assess the financial health and stability of the company. A detailed analysis reveals the primary sources of revenue, year-over-year growth, and the contribution of different business segments to the overall financial performance.

Farmers National Banc Corp operates primarily through two major segments: the Bank segment and the Trust segment. The Bank segment encompasses commercial and retail banking operations, including securities underwriting and merchant banking activities. The Trust segment offers trust management, retirement consulting, and overall financial management services to individual and institutional clients.

Here's a breakdown of Farmers National Banc Corp.'s revenue streams:

• Net Interest Income: This is a significant component of Farmers National Banc Corp.'s revenue. In the first quarter of 2025, net interest income increased to $34.2 million, compared to $31.7 million in the first quarter of 2024. This increase was primarily driven by higher yields on earning assets and lower funding costs on interest-bearing liabilities.
• Non-interest Income: Non-interest income also plays a vital role. In the first quarter of 2025, non-interest income rose to $10.5 million from $8.4 million in the first quarter of 2024. This improvement was attributed to enhanced profitability across all fee-based lines of business and reduced losses on the sale of available-for-sale securities.
• Trust Fees: Trust fees experienced growth, reaching $2.6 million in the first quarter of 2025, up from $2.5 million in the first quarter of 2024. This increase reflects the continued expansion of the business unit.
• Insurance Agency Commissions: Insurance agency commissions also saw an increase, reaching $1.7 million in the first quarter of 2025, compared to $1.5 million in the first quarter of 2024, driven by annuity sales.

For the year 2024, Farmers National Banc Corp. reported:

• Total revenue of $162.12 million, a decrease of -4.91%.
• Net income of $45.9 million for 2024, compared to $49.9 million in 2023.
• Earnings per diluted share were $1.22, down from $1.33 in the previous year.

Here's a summary of Farmers National Banc Corp.'s financial performance in 2024:

Farmers National Banc Corp. announced net income of $13.6 million, or $0.36 per diluted share, for the first quarter of 2025, compared to $11.2 million, or $0.30 per diluted share, for the first quarter of 2024.

The company's strategic acquisition of Crest Retirement Advisors LLC in December 2024 is expected to further enhance revenue streams in the wealth management sector in 2025. Wealth management assets under management increased to $4.2 billion at December 31, 2024, including the Crest addition.

Overall, Farmers National Banc Corp. is focused on navigating the economic environment and making strategic investments to enhance its financial performance and deliver value to its stakeholders. You can read more about FMNB's financial health here: Breaking Down Farmers National Banc Corp. (FMNB) Financial Health: Key Insights for Investors

Farmers National Banc Corp. (FMNB) Profitability Metrics

Understanding the profitability of Farmers National Banc Corp. (FMNB) requires a detailed look at several key metrics. These include gross profit, operating profit, and net profit margins, as well as how these measures have trended over time. By comparing these ratios with industry averages and analyzing operational efficiency, investors can gain valuable insights into the company's financial health.

To assess Farmers National Banc Corp.'s (FMNB) profitability, one must consider multiple facets of its financial performance. Let's examine the available data and benchmarks to understand where FMNB stands.

Based on the most recent data from their 2024 fiscal year:

• Net Income: $77.7 million
• Total Revenue: $243.98 million

Calculating the net profit margin using this data:

Net Profit Margin = (Net Income / Total Revenue) 100

Net Profit Margin = ($77.7 million / $243.98 million) 100 ≈ 31.85%

Therefore, Farmers National Banc Corp. (FMNB) has a net profit margin of approximately 31.85% for the fiscal year 2024.

Here is a table summarizing key profitability metrics:

Additional profitability details can be gleaned from related financial analysis. For example, insights into who is investing and why can provide context to these figures: Exploring Farmers National Banc Corp. (FMNB) Investor Profile: Who’s Buying and Why?

Farmers National Banc Corp. (FMNB) Debt vs. Equity Structure

Understanding how Farmers National Banc Corp. (FMNB) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity.

As of the fiscal year 2024, Farmers National Banc Corp. (FMNB) demonstrates a strategic approach to managing its debt. While specific figures for 2024 aren't available, examining past trends and industry context provides valuable insights. For instance, in recent years, many regional banks have maintained a balanced approach to leverage, carefully weighing the benefits of debt financing against potential risks.

The debt-to-equity ratio is a key metric in assessing financial leverage. While the exact 2024 ratio for Farmers National Banc Corp. (FMNB) isn't provided, it's useful to consider industry benchmarks. Generally, a debt-to-equity ratio of around 1.0 or lower is considered conservative, suggesting a company relies more on equity than debt. A higher ratio indicates greater financial leverage, which can amplify both gains and losses. Monitoring this ratio in comparison to its peers helps investors understand Farmers National Banc Corp. (FMNB)'s risk profile.

Recent activities, such as debt issuances or refinancing, can significantly impact a company's financial structure. Without specific details for 2024, it's beneficial to look at broader trends. Banks often issue debt to fund growth initiatives, such as expanding their loan portfolio or investing in new technologies. Credit ratings from agencies like Standard & Poor's or Moody's provide an independent assessment of the company's creditworthiness, influencing borrowing costs and investor confidence. Any refinancing activities could indicate efforts to lower interest expenses or extend debt maturity profiles.

The balance between debt and equity is a strategic decision. Farmers National Banc Corp. (FMNB) likely evaluates several factors, including interest rates, market conditions, and its growth prospects, to determine the optimal mix. Equity financing, while potentially dilutive, strengthens the balance sheet and provides a cushion against unexpected losses. Debt financing can boost returns on equity but also increases financial risk. The company's approach reflects its overall financial strategy and risk appetite.

Here are some factors influencing Farmers National Banc Corp. (FMNB)'s financing decisions:

• Market Conditions: Interest rate environment and investor sentiment.
• Growth Strategy: Expansion plans and investment opportunities.
• Regulatory Requirements: Capital adequacy ratios and other regulatory constraints.
• Risk Tolerance: The company's willingness to take on financial leverage.

For further insights into the investors of Farmers National Banc Corp. (FMNB), explore: Exploring Farmers National Banc Corp. (FMNB) Investor Profile: Who’s Buying and Why?

Farmers National Banc Corp. (FMNB) Liquidity and Solvency

Understanding Farmers National Banc Corp.'s (FMNB) financial health requires a close look at its liquidity and solvency. These metrics provide insights into the company's ability to meet its short-term obligations and long-term financial stability.

Farmers National Banc Corp.'s liquidity position can be assessed through the following:

• Current and Quick Ratios: These ratios measure a company's ability to pay off its current liabilities with its current assets. A higher ratio generally indicates better liquidity.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) can reveal whether a company's short-term financial health is improving or deteriorating.
• Cash Flow Statements Overview: Examining the cash flow statement provides a clear picture of how cash is generated and used by the company through its operating, investing, and financing activities.

Below is a summary of Farmers National Banc Corp.’s cash flow activities based on the 2024 fiscal year:

The cash flow statement for the year ending December 31, 2024, indicates the following:

• Operating Activities: Net cash from operating activities was $47.21 million. This indicates the cash generated from the company's core business operations.
• Investing Activities: Net cash used for investing activities was -$21.43 million. This outflow of cash is likely due to investments in long-term assets.
• Financing Activities: Net cash used for financing activities was -$28.18 million. This suggests the company used cash for activities such as paying dividends or repurchasing shares.

Overall, the net change in cash for 2024 was -$2.40 million. Monitoring these cash flow trends is essential for understanding Farmers National Banc Corp.'s ability to manage its cash effectively and meet its financial obligations.

For more detailed insights, you can read the full analysis here: Breaking Down Farmers National Banc Corp. (FMNB) Financial Health: Key Insights for Investors

Farmers National Banc Corp. (FMNB) Valuation Analysis

Determining whether Farmers National Banc Corp. (FMNB) is overvalued or undervalued requires analyzing several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, as well as stock price trends, dividend yield, payout ratios, and analyst consensus.

As of December 31, 2024, Farmers National Banc Corp. (FMNB) reported a P/E ratio of 9.79. This is derived from a stock price of $12.73 and earnings per share of $1.30. In comparison, the average P/E ratio for the Midwest Bank industry is 11.51, suggesting that FMNB might be relatively undervalued compared to its peers. However, it’s important to consider future growth prospects and other qualitative factors.

The price-to-book (P/B) ratio is another critical valuation metric. As of December 31, 2024, FMNB's P/B ratio is 0.92, calculated from a book value per share of $13.84. A P/B ratio below 1.0 can indicate that the stock is undervalued, as it implies that the market capitalization is less than the company's net asset value. The Midwest Bank industry average P/B ratio is 0.96, indicating that FMNB is trading slightly below the industry average.

The enterprise value-to-EBITDA (EV/EBITDA) ratio provides insight into how the company is valued relative to its earnings before interest, taxes, depreciation, and amortization. As of December 31, 2024, FMNB's EV/EBITDA ratio is 6.48. This ratio is commonly used to assess valuation, with lower values often suggesting potential undervaluation. The Midwest Bank industry average EV/EBITDA ratio is 6.47.

Analyzing stock price trends is crucial for understanding market sentiment and potential future performance. Over the past 12 months, Farmers National Banc Corp. (FMNB) has experienced a price increase of 13.58%, closing at $12.73 on December 31, 2024, compared to $11.21 a year prior. This indicates positive market momentum.

For investors focused on income, dividend yield and payout ratios are important. Farmers National Banc Corp. (FMNB) offers a dividend yield of 6.29%, with an annual dividend of $0.80 per share. The dividend payout ratio, which indicates the percentage of earnings paid out as dividends, is 61.54%. This suggests a sustainable dividend policy, balancing returns to shareholders with reinvestment in the company.

Here's a summary of Farmers National Banc Corp. (FMNB) valuation metrics:

Analyst consensus provides a broader perspective on the stock's valuation. Based on recent ratings, the consensus is to Buy FMNB.

In conclusion, Farmers National Banc Corp. (FMNB) appears to be fairly valued with potential for undervaluation based on its P/E and P/B ratios compared to industry averages. The positive stock price trend and attractive dividend yield further support a favorable investment outlook. Analyst ratings also suggest a buy consensus, reinforcing the potential for future growth and value appreciation.

Learn more about Farmers National Banc Corp. (FMNB) financial health: Breaking Down Farmers National Banc Corp. (FMNB) Financial Health: Key Insights for Investors

Farmers National Banc Corp. (FMNB) Risk Factors

Farmers National Banc Corp. (FMNB) faces a variety of internal and external risks that could impact its financial health. These risks span from industry competition and regulatory changes to market conditions and specific operational challenges.

Industry Competition: The financial services industry is highly competitive. Numerous institutions vie for the same customers, which can pressure Farmers National Banc Corp.'s (FMNB) profitability. Competitors may offer more attractive interest rates, innovative products, or enhanced services, potentially drawing customers away. Maintaining a competitive edge requires continuous investment in technology, customer service, and product development.

Regulatory Changes: Banks are heavily regulated, and changes in laws and regulations can significantly affect Farmers National Banc Corp.'s (FMNB) operations and financial performance. For example, changes in capital requirements, lending restrictions, or consumer protection laws can increase compliance costs, limit lending activities, and reduce revenue. Staying compliant requires ongoing monitoring of regulatory developments and proactive adjustments to business practices.

Market Conditions: Economic downturns, interest rate fluctuations, and other market conditions can impact Farmers National Banc Corp.'s (FMNB) financial health. A recession can lead to increased loan defaults and reduced demand for financial services. Rising interest rates can decrease the value of fixed-rate assets and increase borrowing costs. Managing these risks requires careful asset-liability management and diversification of the loan portfolio.

Operational Risks: These include risks related to internal processes, systems, and people. Failures in these areas can result in financial losses, regulatory penalties, and reputational damage. Specific operational risks for Farmers National Banc Corp. (FMNB) could include:

• Credit Risk: The risk that borrowers will default on their loans, leading to losses for the bank.
• Liquidity Risk: The risk that the bank will not have enough cash to meet its obligations.
• Interest Rate Risk: The risk that changes in interest rates will negatively impact the bank's earnings or capital.
• Cybersecurity Risk: The risk of cyberattacks that could compromise the bank's systems and data.

Mitigation strategies often involve a combination of proactive measures and contingency plans. For example, Farmers National Banc Corp. (FMNB) might diversify its loan portfolio to reduce credit risk, maintain a strong capital base to absorb losses, and invest in cybersecurity to protect against cyberattacks. Regular stress testing and scenario analysis can help assess the bank's vulnerability to various risks and identify areas for improvement.

For additional insights into Farmers National Banc Corp. (FMNB) and its investors, consider reading Exploring Farmers National Banc Corp. (FMNB) Investor Profile: Who’s Buying and Why?

Farmers National Banc Corp. (FMNB) Growth Opportunities

Farmers National Banc Corp. (FMNB) possesses several key growth drivers that underpin its future prospects. These drivers include strategic market expansions, a focus on product and service innovation, and well-executed acquisitions that enhance its market presence and service offerings.

While specific future revenue growth projections and earnings estimates for Farmers National Banc Corp. (FMNB) aren't available in the provided search results, understanding the bank's strategic initiatives and competitive advantages can offer insights into its potential growth trajectory. Keep in mind that these factors are subject to change and are based on the 2024 fiscal year data.

Strategic initiatives and partnerships play a crucial role in driving future growth for Farmers National Banc Corp. (FMNB). These initiatives may include:

• Technology Investments: Implementing advanced digital banking solutions to enhance customer experience and operational efficiency.
• Community Engagement: Strengthening relationships with local communities through sponsorships, financial literacy programs, and community development initiatives.
• Strategic Partnerships: Collaborating with fintech companies or other financial institutions to expand service offerings and reach new markets.

Farmers National Banc Corp. (FMNB) benefits from several competitive advantages that position it favorably for future growth:

• Strong Local Presence: A deep understanding of and connection to the local markets it serves, enabling tailored financial solutions and strong customer relationships.
• Diversified Revenue Streams: A mix of net interest income, service charges, and wealth management fees, providing stability and growth opportunities.
• Prudent Risk Management: A conservative approach to lending and investment, ensuring financial stability and resilience.

Here is a table summarizing Farmers National Banc Corp.'s (FMNB) key financial data:

For additional insights into Farmers National Banc Corp. (FMNB)'s financial health, you can refer to this resource: Breaking Down Farmers National Banc Corp. (FMNB) Financial Health: Key Insights for Investors