FORM 10-Q/A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarter ended June 30, 1995 Commission file number 2-80339
FARMERS NATIONAL BANC CORP.
(Exact name of registrant as specified in its charter)
OHIO 34-1371693
(State or other jurisdiction of (I.R.S. Employer Identification No)
incorporation or organization)
20 South Broad Street
Canfield, OH 44406 44406
(Address of principal executive offices) (Zip Code)
(216) 533-3341
(Registrant's telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No _____
Indicate the number of shares outstanding of each of the issuer's classes of
common stock.
Class Outstanding at June 30, 1995
Common Stock, $2.50 Par Value 1,583,979 shares
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
The Corporation's net income for the second quarter of 1995 was $797,279
or $.51 per share which is a 4.60% decrease compared with the $835,771 or $.55
per share earned during the same period last year. Return on average assets
and return on average equity for the second quarter of 1995 were 1.09% and
10.44% respectively compared to 1.19% and 12.58% for the same period in 1994.
Net income for the first six months of 1995 was $1,592,110 or $1.02 per
share, which results in a 1.78% increase compared to the $1,564,323 or $1.04
per share for the first six months of 1994. Return on average assets and
return on average equity for the six months ended June 30, 1995 were 1.09% and
10.42% respectively compared to 1.12% and 11.78% for the same period last
year.
The decrease in net income for the second quarter was mainly attributable
to an 8.43% increase in other expenses. This increase is primarily due to an
increase in staff and facilities to support growth in assets and the opening
of the Columbiana, Ohio office in December, 1994. The Corporation's net
interest income increased 3.55% from $2,867,689 for 1994 to $2,969,351 for the
same quarter of 1995. This increase resulted from the overall rise in
interest rates in the past twelve months. Additionally, the substantial
growth in the balance of Federal funds sold has resulted in an increase in
federal funds sold income of $109,307 for the quarter. This growth in federal
funds sold is fueled by a 5.52% increase in deposits in the past twelve
months.
Liquidity
Liquidity is defined as the ability to meet all financial obligations
when due. The central role of liquidity management is to insure that the
Corporation has ready access to sufficient liquid funds to meet normal
transaction requirements such as customer loan requirements, to take advantage
of market opportunities which require flexibility and speed to provide a
cushion against unforeseeable needs.
As of June 30, 1995, the Corporation's formula for measuring liquidity
stood at 5.49%, with 3.0% considered adequate to meet funding needs. This
calculation compares favorably to 3.62% at the same time last year.
The Corporation has just recently become a member of the Federal Home
Loan Bank. The Corporation plans to utilize the bank's services as an
additional source of funding.
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Capital Resources
The capital management function is a continuous process which consists of
providing capital for both the current financial position and the anticipated
future growth of the Corporation. As of June 30, 1995, the Corporation's
total risk-based capital ratio stood at 16.64%, and the Tier I risked-based
capital ratio and Tier I leverage ratio were at 15.39% and 10.73%
respectively. Regulations established by the Federal Deposit Insurance
Corporation Improvement Act require that for a bank to be considered well
capitalized, it must have a total risked-based capital ratio of 10%, a Tier I
risk-based capital ratio of 6% and a Tier I leverage ratio of 5%.
Other Matters
The Farmers National Banc Corp.'s subsidiary, the Farmers National Bank
of Canfield has signed a purchase agreement to acquire the deposits and fixed
assets of the Leetonia, Ohio office of Banc One. This transaction is
currently pending approval from the Office of the Comptroller of the Currency.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings
There are no material pending legal proceedings to which the registrant
or its subsidiary is a party, or of which any of their property is the
subject, except proceedings which arise in the ordinary course of business.
In the opinion of management, pending legal proceedings will not have a
material effect on the consolidated financial position of the registrant and
its subsidiary.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
(a) Farmers National Banc Corp's annual meeting of shareholders was held
on March 30, 1995.
(b & c) Proxies were solicited by Farmers National Banc Corp's management
pursuant to Regulation 14 under Securities Exchange Act of 1934. Elected to
serve as director until the 1996 annual meeting of shareholders were the
management's nominees Benjamin R. Brown (1,249,939 votes), Richard L Calvin
(1,249,939 votes), Joseph O. Lane (1,249,160 votes), David C. Myers (1,249,919
votes), Edward A. Ort (1,249,939 votes), Frank L. Paden (1,249,939 votes),
William D. Stewart (1,249,939 votes) and Ronald V. Wertz (1,249,939 votes).
(d) Not applicable
Item 5. Other Information
Not applicable.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
2.1. Not applicable.
4.1. The rights of holders of equity securities are defined in
portions of the Articles of Incorporation and By-laws. The
Articles of Incorporation are incorporated by reference to
Exhibit 3.1. of the registrant's Annual Report on Form 10-K
for the fiscal year ended December 31, 1994. The By-laws are
incorporated by reference to Exhibit 3.2. of the registrant's
Annual Report on Form 10-K for the fiscal year ended De-
cember 31, 1994. The registrant agrees to furnish to the
Commission upon request copies of all instruments not filed
herewith defining the rights of holders of long-term debt of
the registrant and its subsidiary.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FARMERS NATIONAL BANC CORP.
Dated: ___________________ ______________________________________
William D. Stewart
President and Secretary
Dated: ___________________ ______________________________________
Gene A. Dean
Comptroller, Farmers National Banc Corp.
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