Farmers National Banc reports Q2 EPS 29c, consensus 28c
Annualized return on average assets and return on average equity were 1.47% and 13.28%, respectively, for the three month period ending June 30, 2018, compared to 1.11% and 10.25% for the same three month period in 2017, and 1.45% and 13.03% for the linked quarter. Farmers' return on average tangible equity also improved to 16.24% for the quarter ended June 30, 2018 compared to 12.77% for the same quarter in 2017 and 15.84% for the linked quarter. On December 22, 2017, H.R.1, known as the "Tax Cuts and Jobs Act," was signed into law. H.R.1, among other things, reduced the corporate income tax rate to 21% effective January 1, 2018. As a result of passage of the new tax law, Farmers effective tax rate decreased from 25.7% for the six months ended June 30, 2017 to 15.7% for the six months ended June 30, 2018. It is important to note that also as a result of the new tax law, Farmers determined that its net deferred tax assets needed to be reduced in the fourth quarter of 2017 by approximately $1.8 million, representing an impact on earnings per share of approximately $0.06 per diluted share for that fourth quarter, based on that quarter's weighted average diluted shares outstanding of approximately 27.5 million.