Farmers National Banc Corp. operates as a financial holding company, which supervises its subsidiaries' banking operations. It operates through the following segments: Trust, Bank and Retirement Consulting. The firm engages in securities underwriting and dealing, insurance agency and underwriting activities, and merchant banking activities through its subsidiaries. The company was founded in 1983 and is headquartered in Canfield, OH.
Comparison of Operating Results for the Years Ended December 31, 2018 and 2017.
The Company’s net income totaled $32.6 million during 2018, compared to $22.7 million for 2017. On a per share basis, diluted earnings per share were $1.16 as compared to $0.82 diluted earnings per share for 2017. Return on average assets and return on average equity were 1.46% and 13.13%, respectively, for the year ending December 31, 2018, compared to 1.09% and 9.92% for 2017. The return on average tangible equity increased from 13.48% in 2017 to 15.95% in 2018.
On December 22, 2017, H.R.1, known as the “Tax Cuts and Jobs Act,” was signed into law. H.R.1, among other things, reduced the corporate income tax rate to 21% effective January 1, 2018. As a result of passage of the new tax law, Farmers’ effective tax rate decreased from 30.72% for the year ended December 31, 2017 to 14.92% for the year ended December 31, 2018. It is important to note that also as a result of the new tax law, Farmers determined that its net deferred tax assets needed to be reduced in the fourth quarter of 2017 by approximately $1.8 million, representing an impact on earnings per share of approximately $0.06 per diluted share for that fourth quarter, based on that quarter’s weighted average diluted shares outstanding of approximately 28 million.