8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): October 22, 2004

Farmers National Banc Corp.
__________________________________________
(Exact name of registrant as specified in its charter)

Ohio	2-80339	34-1371693
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)
20 South Broad Street, P.O. Box 555, Canfield, Ohio		44406-0555
_________________________________ (Address of principal executive offices)		___________ (Zip Code)

Registrant’s telephone number, including area code: 330-533-3341

Not Applicable
______________________________________________
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))

Item 2.02. Results of Operations and Financial Condition.

On October 22, 2004, Farmers National Banc Corp. issued a press release discussing its earnings for the third quarter of 2004. The press release is attached as Exhibit 99.1

Item 9.01. Financial Statements and Exhibits.

(a.) and (b.) not applicable

(c.) Exhibits. See Index to Exhibits

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.
October 22, 2004	By:	Frank L. Paden
		Name: Frank L. Paden
		Title: President and Secretary

Exhibit Index

Exhibit No.	Description
99.1	Press release dated October 22, 2004

EX-99.1

Friday, October 22, 2004

Press Release

Source: Farmers National Banc Corp.
Frank L. Paden, President
20 South Broad St. P.O. Box 555
Canfield, OH 44406
330-533-3341
330-533-0451 (FAX)
Email: exec@fnbcanfield.com

FARMERS NATIONAL BANC CORP. REPORTS EARNINGS
FOR THIRD QUARTER 2004

Farmers National Banc Corp (OTCBB: FMNB), parent holding company of the Farmers National Bank of Canfield, today reported net income for the three months ended September 30, 2004 of $2.415 million, or $0.19 per diluted share, compared to $2.442 million, or $0.19 per diluted share for the third quarter of 2003.

Net income for the nine months period ending September 30, 2004 was $7.047 million, compared to $7.071 million reported for the same nine months period in 2003, or $0.55 basic earnings per share for both nine month periods in 2004 and 2003. Diluted earnings per share is $0.54 for the nine month period ending September 30, 2004, and $0.55 for same period in 2003.

President and CEO Frank L. Paden commented, “The continued compression of our net interest margin has caused our third quarter and year to date results to fall behind our internal projections. Management continues to focus on building asset growth through the loan portfolio and generating higher levels of non-interest income.”

The Corporation’s return on average assets and return on average equity for the twelve month period ended September 30, 2004 was 1.17% and 11.96% respectively, compared to 1.20% and 11.52% for the same period in 2003.

The Corporation’s total assets increased slightly over the prior year, ending the third quarter of 2004 at $810 million as compared to $803 million at September 30, 2003. The growth in assets includes a $16.8 million net increase in loans. Commercial real estate and commercial & industrial loans experienced solid growth during the past twelve months, while our business lines of residential real estate mortgage loans and consumer loans dropped off slightly. Overall asset quality remains very solid with non-performing loans representing only .33% of total loans and .20% of total assets.

Deposits decreased $4.6 million or 1% over this same twelve-month period from September 2003 to September 2004. Total Shareholders’ Equity is up slightly from this same time in 2003. As part of management’s capital plan, our Stock Repurchase Program permitted us to re-purchase approximately 246,455 shares during the last twelve months. At the end of September 2004, Book Value per share was $6.15 and Shareholders’ Equity was 9.84% of Total Assets.

Farmers National Bank operates sixteen banking offices throughout Mahoning, Trumbull and Columbiana Counties. The bank offers a wide range of banking and investment services to companies and individuals, and maintains a website at www.fnbcanfield.com.

This earnings announcement presents a brief analysis of the assets and liability structure of the Corporation and a brief discussion of the results of operations for each of the periods presented. Certain statements in this announcement that relate to Farmers National Banc Corp.’s plans, objectives, or future performance may be deemed to be forward-looking statements within the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations. Actual strategies and results in future periods may differ materially from those currently expected because of various risks and uncertainties.

Among the important factors that could cause actual results to differ materially are interest rates, changes in the mix of the company’s business, competitive pressures, general economic conditions and the risk factors detailed in the company’s other periodic reports and registration statements filed with the Securities and Exchange Commission.

Financial Highlights
Farmers National Banc Corp. and Subsidiary
	(Amounts in thousands, except per share data)
For the Nine Months Ended	September 30, 2004			September 30, 2003
Net Income	$	7,047		$	7,071
Basic earnings per share *		0.55			0.55
Diluted earnings per share *		0.54			0.55
Cash dividends		6,071			5,578
Per share *		0.47			0.43
At the End of Nine Months
Assets	$	810,035		$	802,822
Loans		480,377			463,611
Deposits		618,683			623,285
Securities		281,922			291,729
Stockholders’ Equity		79,673			79,402
Book Value Per Share *		6.15			6.27
Shares Outstanding		12,704			12,422
Ratios
Return on Average Assets		1.17	%		1.20	%
Return on Average Equity		11.96			11.52
Efficiency Ratio		58.08			56.14
Equity to Asset Ratio		9.84			9.89
Dividends to Net Income		86.15			78.89
Loans to Assets		59.30			57.75
Net Loans to Deposits		76.65			73.29
Allowance for Loan Losses to Total Loans		1.28			1.47
Non-performing Loans to Total Loans		0.33			0.36

* Per share amounts have been restated to reflect the 2% stock dividend declared in October, 2004.