Farmers National Banc Corp. in Canfield, Ohio, reported higher quarterly earnings that reflected its purchase of Middlefield Banc Corp.
The $7.1 billion-asset company said in a press release that its third-quarter profit rose 16% from the prior year to $14.5 million.
Farmers National reported a $10.3 million loss from restructuring securities, $6.1 million in merger-related expenses, and $600,000 in severance expenses.
“The third quarter was a period of strategic execution and transformation for Farmers, as we completed our core technology conversion, executed the integration of the … Middlefield acquisition, and repositioned our investment securities portfolio,” Kevin Helmick, the company’s president and CEO, said in the release.
“These actions represent important milestones in our ongoing strategy to improve operating efficiency, enhance profitability, and grow our community banking franchise,” he added. “With these significant initiatives largely behind us, we expect to begin realizing their financial benefits in the fourth quarter, with additional contributions expected in 2027.”
Farmers National, which inherited $152.8 million of available-for-sale securities from Middlefield, said it sale. restructured $90.5 million of securities. The move increased the yield for its remaining securities; it should take about three years to earn back the loss from the repositioning.