CANFIELD - Improving credit quality through reduced chargeoffs for bad loans and loan delinquencies helped lift Farmers National Banc Corp.'s profit by 49 percent in the first three months of the year, the bank holding company said.
The parent of Farmers National Bank said net income rose to $2.5 million, or 13 cents per share, from $1.7 million, or 10 cents per share, giving it 117 consecutive quarters in the black.
The bank said it didn't have to set aside any money in the January-March quarter to cover bad loans compared to $1.9 million in the same quarter last year. Net chargeoffs dropped to $374,000 in the period versus $1 million a year ago.
In addition, delinquencies of 30 to 89 days fell to $2.9 million from $3.4 milion in the year-ago period.
"Even with the reduction in our provision because of improved credit quality, we continue to maintain strong reserves against probable incurred losses," said John S. Gulas, president and chief executive officer.
Net loans rose $5.2 million, or 1 percent, to $567.2 million at March 31 from the 2011 period, chiefly in commercial real estate.
Deposits rose $121.3 million, or 16 percent, to $886.6 million in the year-ago period.
Total assets at March 31 were $1.1 billion, 9.1 percent more than in 2011.