Farmers National Banc Corp 8-K, filed Jan 28, 2022
Farmers National Banc Corp (FMNB)
About this 8-K
Farmers National Banc Corp filed this 8-K on January 28, 2022.
Items reported
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
| (Address of principal executive offices) | (Zip Code) |
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class |
Trading Symbol |
Name of each exchange on which registered | ||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
On January 28, 2022, Farmers National Banc Corp. (the “Company”) first mailed to shareholders a letter regarding its fourth quarter and year-end results, a copy of which is attached hereto as Exhibit 99.1.
Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 and Exhibit 99.1 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 and Exhibits 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended (the “Securities Act”) except as may be expressly set forth by specific reference in such filing.
| Item 7.01 | Regulation FD Disclosure. |
On January 28, 2022, Farmers National Banc Corp. (the “Company”) first mailed to shareholders a letter regarding its fourth quarter and year-end results, a copy of which is attached hereto as Exhibit 99.1.
The shareholder letter is furnished herein, as part of this Item 7.01, as Exhibit 99.1. Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 7.01 and Exhibit 99.1 shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Furthermore, the information in this Item 7.01 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act, except as may be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| Exhibit Number |
Description | |
| 99.1 | Letter to Shareholders, dated January 28, 2022. | |
| 104 | Cover Page Interactive Data file (embedded within the Inline XBRL document) | |
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 hereunto duly authorized.
| Farmers National Banc Corp. | ||
| By: | /s/ Kevin J. Helmick | |
| Kevin J. Helmick | ||
| President and Chief Executive Officer | ||
Date: January 28, 2022
Exhibit 99.1
January 28, 2022
Dear Fellow Shareholders,
“Enable people to envision a future that sustains the best from their past while also holding out new possibilities.”
— Ronald Heifetz, The Practice of Adaptive Leadership
It is challenging to imagine the profound differences between the years 1887 and 2021 in terms of each era’s prevailing economies, technologies and cultures. So, I am especially pleased to share that we concluded our 134th year in business with our sixth consecutive year of record financial results.
Between our founding in the 19th Century and your reading of this letter in the 21st, your Bank has navigated the intervening years and events – both the expected and wholly unforeseen – and is thriving as never before.
We cannot reduce our success to a single element. But, staying the course in terms of our traditional conservative values, while adapting efficiently and at times boldly to emerging marketplace opportunities, is at the heart of our formula for sustained growth.
Another Record Year of Financial Results
For the sixth consecutive year, Farmers achieved record financial results as the Bank continues to pursue initiatives that diversify its sources of income, conservatively manage risk, increase its market share and proactively manage expenses.
Annual net income set a record at $51.8 million, which is approximately a 27 percent increase over 2020. This success is significantly attributed to fee-based businesses, income from the Paycheck Protection Program (PPP), and the successful acquisition of Cortland Bancorp, Inc.
Farmers closed out 2021 with continued loan growth, with total loans at $2.3 billion compared to $2.08 billion in 2020, a 10.6 percent increase. Total deposits increased 34 percent over the prior year.
Finally, our book value per share increased 12% to a record $13.94 at December 31, 2021, representing the 8th consecutive year of higher year-over-year growth in our book value per share.
Canton Lab Branch
At Farmers, we have an on-going commitment to advancing banking technology. I am proud to announce that we will open our second technology-leading Lab Branch prototype, slated to open later this year in Canton. We successfully launched our first Lab Branch prototype in Canfield in July 2020.
Located at 5443 Whipple Ave NW, near I-77 and the Belden Village Mall, the Lab Branch will house all of the bank’s emerging technology and customer service initiatives, including Interactive Teller Machines (ITM) in the lobby and drive thru. ITM’s allow customers to speak to a specialized banking associate via video conferencing.
A crucial part of your Bank’s strategic planning each year includes analyzing potential growth markets. In Canton and Stark County, our Lab Branch concept will allow us to approach the retail banking experience in an exciting way. We can continue to deliver the legendary customer service Farmers is known for through this exciting opportunity to interact with consumers and walk them through new technology.
Wealth Management
Building on the record revenue and impressive momentum generated during this past year, our Wealth Management Division associates are poised to continue to leverage their collective talents and expertise in 2022.
As of December 31, 2021, Wealth Management Assets under care were $3,139,058,500, with a total revenue of $22,403,588.
Now in the fourth year of our Wealth Management 360 branding message, our team of Wealth Management professionals continue to work diligently with their internal business partners and across all product lines to deliver financial solutions to our clients and prospects. Individual and business clients will have access to all of our capabilities including: investment management, financial planning and retirement plan and insurance solutions along with premium-priced lending and deposit products.
With a strategic focus on technology upgrades, tailored solutions and operating efficiencies, our Wealth Management division is well-positioned to maintain its strong record of revenue growth and margin enhancement.
Conclusion
Your Company’s Board of Directors and Executive Leadership Team are committed to sound principles of adaptive leadership. But, the strategies and actions of any style of leadership mean little if they are not embraced and well-executed.
On behalf of our Board and Leadership Team, I want to thank all of the Farmers team members who have responded and adapted to the new opportunities and challenges that each of the past six years of record financial growth have presented.
As always, I am open to your calls, letters, and emails.
Very truly yours,
Kevin J. Helmick
President & CEO