Farmers National Banc Corp. in Canfield, Ohio, reported lower quarterly profit after an issue with a commercial credit backed by an office property.
The $5.2 billion-asset company said in a press release that its third-quarter earnings fell by 36% from a year earlier, to $8.5 million.
Farmers said the lower profit was due to a $4.4 million charge-off and a $1.2 million specific reserve tied to the $12.5 million loan. Nonperforming loans rose by 26%, to $19.1 million, largely because of the loan.
The company downplayed to issue as an isolated event.
“Overall, we believe we are very well positioned to grow earnings in 2025 while navigating continued macro-level uncertainty,” Kevin Helmick, Farmers’ president and CEO, said in the release.