Farmers National Banc Corp. Announces Earnings for Fourth Quarter of 2025
Key Terms
net interest margin financial
efficiency ratio financial
nonperforming loans financial
provision for credit losses financial
bank owned life insurance (BOLI) financial
net charge-offs financial
allowance for credit losses financial
loan to deposit ratio financial
- 172 consecutive quarters of profitability
-
Net interest margin increased to
3.05% in the fourth quarter of 2025 from3.00% in the third quarter of 2025 and2.72% in the fourth quarter of 2024 -
Efficiency ratio of
57.11% in the fourth quarter of 2025,55.0% excluding merger/core conversion costs (non-GAAP) -
Customer deposit growth (excluding brokered CDs) was
$151.0 million 3.6% growth -
Nonperforming loans declined to
$26.2 million $35.3 million
Kevin J. Helmick, President and CEO, stated: “I am pleased with our performance for the fourth quarter and full year 2025, reflecting the ongoing strength of the Company’s community banking platform. During the year, we added experienced team members, continued to invest in our platform, and remained focused on disciplined growth and prudent risk management. Most importantly, during the fourth quarter of 2025, we announced the merger with Middlefield Banc Corp., which we expect will close in the first quarter of 2026. I am excited about the direction we are headed and the opportunities ahead to create long-term value for our shareholders in 2026 and beyond.”
Balance Sheet
Total assets increased to
Securities available for sale totaled
Total deposits declined to
Total stockholders’ equity increased to
Credit Quality
Non-performing loans decreased from
The provision for credit losses and unfunded commitments totaled
Net Interest Income
Net interest income was of
Noninterest Income
Noninterest income increased to
Noninterest Expense
Noninterest expense increased to
Liquidity
The Company had access to an additional
About Farmers National Banc Corp.
Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in
Non-GAAP Disclosure
This press release includes disclosures of Farmers’ tangible common equity ratio, return on average tangible assets, return on average tangible equity, net income excluding costs related to acquisition activities and certain items, return on average assets excluding merger costs and certain items, return on average equity excluding merger costs and certain items, net interest margin excluding acquisition marks and related accretion and PPP interest and fees and efficiency ratio less certain items, which are financial measures not prepared in accordance with generally accepted accounting principles in
Cautionary Statements Regarding Forward-Looking Statements
We make statements in this news release and our related investor conference call, and we may from time to time make other statements, that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Farmers’ financial condition, results of operations, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management’s current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Farmers’ control. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions, as well as any statements related to future expectations of performance or conditional verbs, such as “will,” “would,” “should,” “could” or “may.” Farmers’ actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Farmers’ actual results to differ materially from those described in certain forward-looking statements include significant changes in near-term local, regional, and
Important Additional Information
In connection with the proposed merger with Middlefield Banc Corp. (“Middlefield”), the Company has filed relevant materials with the SEC, including a Registration Statement on Form S-4 that contains a definitive joint proxy statement/prospectus of the Company and Middlefield (the “joint proxy statement/prospectus”). The Registration Statement was declared effective on December 15, 2025 and the Company has filed or may file other documents regarding the proposed Merger with the SEC.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN AND THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, MIDDLEFIELD, THE PROPOSED MERGER AND RELATED MATTERS THAT SHAREHOLDERS SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING THE PROPOSED MERGER.
The joint proxy statement/prospectus has been mailed to Farmers’ shareholders. The joint proxy statement/prospectus and other documents filed by the Company with the SEC are available free of charge from the SEC’s website at www.sec.gov or through the Company’s website at www.farmersbankgroup.com or Middlefield’s website at www.middlefieldbank.bank. Before making any voting or investment decision, investors and shareholders of the Company are urged to read carefully the entire registration statement and definitive joint proxy statement/prospectus, including any amendments thereto, because they contain important information about the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale is unlawful before registration or qualification of the securities under the securities laws of the jurisdiction. No offer of securities shall be made except by means of a prospectus satisfying the requirements of Section 10 of the Securities Act of 1933, as amended. This document is not a substitute for the joint proxy statement/prospectus or for any other document that the Company has filed or may file with the SEC in connection with the proposed Merger.
Participants in the Solicitation
The respective directors and executive officers of the Company and Middlefield and other persons may be deemed to be participants in the solicitation of proxies from the Company and Middlefield shareholders with respect to the Merger. Information regarding the directors of the Company is available in its proxy statement filed with the SEC on March 18, 2025 in connection with its 2025 Annual Meeting of Shareholders and information regarding the executive officers of the Company is available in its Form 10-K filed with the SEC on March 6, 2025. Information regarding the directors of Middlefield is available in its proxy statement filed with the SEC on April 4, 2025 in connection with its 2025 Annual Meeting of Shareholders and information regarding the executive officers of Middlefield is available in its Form 10-K filed with the SEC on March 13, 2025. Other information regarding the participants in the solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and prospectus to be included in the Registration Statement on Form S-4 and other relevant materials to be filed with the SEC when they become available.
| Farmers National Banc Corp. and Subsidiaries | ||||||||||||||||||||||||
| Consolidated Financial Highlights | ||||||||||||||||||||||||
| (Amounts in thousands, except per share results) Unaudited | ||||||||||||||||||||||||
| Consolidated Statements of Income | For the Three Months Ended |
For the Year Ended |
||||||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, |
|
Percent |
||||||||||||||||
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
Change |
||
| Total interest income | $ |
59,418 |
|
$ |
59,366 |
|
$ |
57,702 |
|
$ |
57,305 |
|
$ |
57,909 |
|
$ |
233,792 |
|
$ |
227,732 |
|
2.7 |
% |
|
| Total interest expense |
|
22,398 |
|
|
23,059 |
|
|
22,781 |
|
|
23,110 |
|
|
25,170 |
|
|
91,348 |
|
|
99,364 |
|
-8.1 |
% |
|
| Net interest income |
|
37,020 |
|
|
36,307 |
|
|
34,921 |
|
|
34,195 |
|
|
32,739 |
|
|
142,444 |
|
|
128,368 |
|
11.0 |
% |
|
| Provision (credit) for credit losses |
|
2,306 |
|
|
1,419 |
|
|
3,548 |
|
|
(204 |
) |
|
295 |
|
|
7,069 |
|
|
7,966 |
|
-11.3 |
% |
|
| Noninterest income |
|
12,098 |
|
|
11,430 |
|
|
12,122 |
|
|
10,481 |
|
|
11,413 |
|
|
46,130 |
|
|
41,716 |
|
10.6 |
% |
|
| System conversion / Acquisition related costs |
|
925 |
|
|
3,123 |
|
|
0 |
|
|
0 |
|
|
92 |
|
|
4,048 |
|
|
92 |
|
0.0 |
% |
|
| Other expense |
|
28,153 |
|
|
28,556 |
|
|
27,175 |
|
|
28,526 |
|
|
26,082 |
|
|
112,411 |
|
|
106,599 |
|
5.5 |
% |
|
| Income before income taxes |
|
17,734 |
|
|
14,639 |
|
|
16,320 |
|
|
16,354 |
|
|
17,683 |
|
|
65,046 |
|
|
55,427 |
|
17.4 |
% |
|
| Income taxes |
|
3,096 |
|
|
2,178 |
|
|
2,410 |
|
|
2,776 |
|
|
3,292 |
|
|
10,460 |
|
|
9,478 |
|
10.4 |
% |
|
| Net income | $ |
14,638 |
|
$ |
12,461 |
|
$ |
13,910 |
|
$ |
13,578 |
|
$ |
14,391 |
|
$ |
54,586 |
|
$ |
45,949 |
|
18.8 |
% |
|
| Average diluted shares outstanding |
|
37,705 |
|
|
37,677 |
|
|
37,622 |
|
|
37,626 |
|
|
37,616 |
|
|
37,633 |
|
|
37,512 |
|
|||
| Basic earnings per share |
|
0.39 |
|
|
0.33 |
|
|
0.37 |
|
|
0.36 |
|
|
0.38 |
|
|
1.46 |
|
|
1.23 |
|
|||
| Diluted earnings per share |
|
0.39 |
|
|
0.33 |
|
|
0.37 |
|
|
0.36 |
|
|
0.38 |
|
|
1.45 |
|
|
1.22 |
|
|||
| Cash dividends per share |
|
0.17 |
|
|
0.17 |
|
|
0.17 |
|
|
0.17 |
|
|
0.17 |
|
|
0.68 |
|
|
0.68 |
|
|||
| Performance Ratios | ||||||||||||||||||||||||
| Net Interest Margin (Annualized) |
|
3.05 |
% |
|
3.00 |
% |
|
2.91 |
% |
|
2.85 |
% |
|
2.72 |
% |
|
2.95 |
% |
|
2.69 |
% |
|||
| Efficiency Ratio (Tax equivalent basis) |
|
57.11 |
% |
|
62.66 |
% |
|
56.66 |
% |
|
59.60 |
% |
|
56.42 |
% |
|
59.02 |
% |
|
59.26 |
% |
|||
| Efficiency Ratio (Tax equivalent basis) excluding core conversion, acquisition costs and other extraordinary items (b) |
|
55.00 |
% |
|
56.43 |
% |
|
55.66 |
% |
|
59.57 |
% |
|
56.10 |
% |
|
56.63 |
% |
|
59.19 |
% |
|||
| Return on Average Assets (Annualized) |
|
1.12 |
% |
|
0.96 |
% |
|
1.08 |
% |
|
1.06 |
% |
|
1.12 |
% |
|
1.06 |
% |
|
0.90 |
% |
|||
| Return on Average Equity (Annualized) |
|
12.17 |
% |
|
11.26 |
% |
|
13.08 |
% |
|
13.12 |
% |
|
13.43 |
% |
|
12.38 |
% |
|
11.28 |
% |
|||
| Other Performance Ratios (Non-GAAP) | ||||||||||||||||||||||||
| Return on Average Tangible Assets |
|
1.16 |
% |
|
1.00 |
% |
|
1.13 |
% |
|
1.10 |
% |
|
1.16 |
% |
|
1.10 |
% |
|
0.94 |
% |
|||
| Return on Average Tangible Equity |
|
19.90 |
% |
|
19.46 |
% |
|
23.37 |
% |
|
24.02 |
% |
|
23.95 |
% |
|
21.48 |
% |
|
21.05 |
% |
|||
| Consolidated Statements of Financial Condition | ||||||||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
||||||||||||||||||||
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
||||||||||
| Assets | ||||||||||||||||||||||||
| Cash and cash equivalents | $ |
92,357 |
|
$ |
92,345 |
|
$ |
90,740 |
|
$ |
113,256 |
|
$ |
85,738 |
|
|||||||||
| Debt securities available for sale |
|
1,343,457 |
|
|
1,301,766 |
|
|
1,274,899 |
|
|
1,281,413 |
|
|
1,266,553 |
|
|||||||||
| Other investments |
|
45,397 |
|
|
44,245 |
|
|
42,410 |
|
|
40,334 |
|
|
45,405 |
|
|||||||||
| Loans held for sale |
|
1,516 |
|
|
4,975 |
|
|
2,174 |
|
|
2,973 |
|
|
5,005 |
|
|||||||||
| Loans |
|
3,304,713 |
|
|
3,337,780 |
|
|
3,303,359 |
|
|
3,251,391 |
|
|
3,268,346 |
|
|||||||||
| Less allowance for credit losses |
|
36,811 |
|
|
39,528 |
|
|
38,563 |
|
|
35,549 |
|
|
35,863 |
|
|||||||||
| Net Loans |
|
3,267,902 |
|
|
3,298,252 |
|
|
3,264,796 |
|
|
3,215,842 |
|
|
3,232,483 |
|
|||||||||
| Other assets |
|
495,241 |
|
|
493,992 |
|
|
503,409 |
|
|
503,222 |
|
|
483,740 |
|
|||||||||
| Total Assets | $ |
5,245,870 |
|
$ |
5,235,575 |
|
$ |
5,178,428 |
|
$ |
5,157,040 |
|
$ |
5,118,924 |
|
|||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Noninterest-bearing | $ |
994,122 |
|
$ |
994,604 |
|
$ |
995,865 |
|
$ |
979,142 |
|
$ |
965,507 |
|
|||||||||
| Interest-bearing |
|
3,348,656 |
|
|
3,405,911 |
|
|
3,325,564 |
|
|
3,342,182 |
|
|
3,226,321 |
|
|||||||||
| Brokered time deposits |
|
0 |
|
|
0 |
|
|
74,988 |
|
|
159,964 |
|
|
74,951 |
|
|||||||||
| Total deposits |
|
4,342,778 |
|
|
4,400,515 |
|
|
4,396,417 |
|
|
4,481,288 |
|
|
4,266,779 |
|
|||||||||
| Other interest-bearing liabilities |
|
367,733 |
|
|
321,581 |
|
|
289,428 |
|
|
188,275 |
|
|
391,150 |
|
|||||||||
| Other liabilities |
|
49,634 |
|
|
47,530 |
|
|
54,835 |
|
|
58,343 |
|
|
54,967 |
|
|||||||||
| Total liabilities |
|
4,760,145 |
|
|
4,769,626 |
|
|
4,740,680 |
|
|
4,727,906 |
|
|
4,712,896 |
|
|||||||||
| Stockholders' Equity |
|
485,725 |
|
|
465,949 |
|
|
437,748 |
|
|
429,134 |
|
|
406,028 |
|
|||||||||
| Total Liabilities | ||||||||||||||||||||||||
| and Stockholders' Equity | $ |
5,245,870 |
|
$ |
5,235,575 |
|
$ |
5,178,428 |
|
$ |
5,157,040 |
|
$ |
5,118,924 |
|
|||||||||
| Period-end shares outstanding |
|
37,653 |
|
|
37,647 |
|
|
37,642 |
|
|
37,615 |
|
|
37,586 |
|
|||||||||
| Book value per share | $ |
12.90 |
|
$ |
12.38 |
|
$ |
11.63 |
|
$ |
11.41 |
|
$ |
10.80 |
|
|||||||||
| Tangible book value per share (Non-GAAP)* |
|
7.98 |
|
|
7.44 |
|
|
6.67 |
|
|
6.42 |
|
|
5.80 |
|
|||||||||
| * Tangible book value per share is calculated by dividing tangible common equity by outstanding shares | ||||||||||||||||||||||||
For the Three Months Ended |
For the Year Ended |
||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, |
|||||||||||||
| Capital and Liquidity |
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
2025 |
2024 |
||
| Common Equity Tier 1 Capital Ratio (a) |
|
11.94 |
% |
|
11.62 |
% |
|
11.56 |
% |
|
11.44 |
% |
|
11.14 |
% |
||||
| Total Risk Based Capital Ratio (a) |
|
15.32 |
% |
|
15.08 |
% |
|
15.04 |
% |
|
14.87 |
% |
|
14.55 |
% |
||||
| Tier 1 Risk Based Capital Ratio (a) |
|
12.42 |
% |
|
12.10 |
% |
|
12.05 |
% |
|
11.92 |
% |
|
11.62 |
% |
||||
| Tier 1 Leverage Ratio (a) |
|
8.92 |
% |
|
8.75 |
% |
|
8.67 |
% |
|
8.52 |
% |
|
8.36 |
% |
||||
| Equity to Asset Ratio |
|
9.26 |
% |
|
8.90 |
% |
|
8.45 |
% |
|
8.32 |
% |
|
7.93 |
% |
||||
| Tangible Common Equity Ratio (b) |
|
5.94 |
% |
|
5.54 |
% |
|
5.03 |
% |
|
4.86 |
% |
|
4.42 |
% |
||||
| Net Loans to Assets |
|
62.29 |
% |
|
63.00 |
% |
|
63.05 |
% |
|
62.36 |
% |
|
63.15 |
% |
||||
| Loans to Deposits |
|
76.10 |
% |
|
75.85 |
% |
|
75.14 |
% |
|
72.55 |
% |
|
76.60 |
% |
||||
| Asset Quality | |||||||||||||||||||
| Non-performing loans | $ |
26,215 |
|
$ |
35,344 |
|
$ |
27,819 |
|
$ |
20,724 |
|
$ |
22,818 |
|
||||
| Non-performing assets |
|
26,370 |
|
|
35,519 |
|
|
28,052 |
|
|
20,902 |
|
|
22,903 |
|
||||
| Loans 30 - 89 days delinquent |
|
16,947 |
|
|
16,083 |
|
|
17,727 |
|
|
11,192 |
|
|
13,032 |
|
||||
| Charged-off loans |
|
5,192 |
|
|
869 |
|
|
748 |
|
|
698 |
|
|
928 |
|
7,507 |
|
7,987 |
|
| Recoveries |
|
295 |
|
|
333 |
|
|
176 |
|
|
362 |
|
|
293 |
|
1,166 |
|
1,166 |
|
| Net Charge-offs |
|
4,897 |
|
|
536 |
|
|
572 |
|
|
336 |
|
|
635 |
|
6,341 |
|
6,821 |
|
| Annualized Net Charge-offs to Average Net Loans |
|
0.59 |
% |
|
0.07 |
% |
|
0.07 |
% |
|
0.04 |
% |
|
0.08 |
% |
0.19 |
% |
0.21 |
% |
| Allowance for Credit Losses to Total Loans |
|
1.11 |
% |
|
1.18 |
% |
|
1.17 |
% |
|
1.09 |
% |
|
1.10 |
% |
||||
| Non-performing Loans to Total Loans |
|
0.79 |
% |
|
1.06 |
% |
|
0.84 |
% |
|
0.64 |
% |
|
0.70 |
% |
||||
| Loans 30 - 89 Days Delinquent to Total Loans |
|
0.51 |
% |
|
0.48 |
% |
|
0.54 |
% |
|
0.34 |
% |
|
0.40 |
% |
||||
| Allowance to Non-performing Loans |
|
140.42 |
% |
|
111.84 |
% |
|
138.62 |
% |
|
171.54 |
% |
|
157.17 |
% |
||||
| Non-performing Assets to Total Assets |
|
0.50 |
% |
|
0.68 |
% |
|
0.54 |
% |
|
0.41 |
% |
|
0.45 |
% |
||||
| (a) September 30, 2025 ratio is estimated | |||||||||||||||||||
| (b) This is a non-GAAP financial measure. A reconciliation to GAAP is shown below | |||||||||||||||||||
For the Three Months Ended |
|||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
|||||||||||||||
| End of Period Loan Balances |
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
||||
| Commercial real estate | $ |
1,398,116 |
|
$ |
1,428,583 |
|
$ |
1,385,162 |
|
$ |
1,370,661 |
|
$ |
1,382,714 |
|
||||
| Commercial |
|
340,224 |
|
|
351,213 |
|
|
363,009 |
|
|
336,600 |
|
|
349,966 |
|
||||
| Residential real estate |
|
850,300 |
|
|
850,112 |
|
|
849,443 |
|
|
846,639 |
|
|
845,081 |
|
||||
| HELOC |
|
181,544 |
|
|
176,609 |
|
|
171,312 |
|
|
161,991 |
|
|
158,014 |
|
||||
| Consumer |
|
257,795 |
|
|
251,557 |
|
|
253,363 |
|
|
257,310 |
|
|
259,954 |
|
||||
| Agricultural loans |
|
265,565 |
|
|
269,025 |
|
|
270,599 |
|
|
267,737 |
|
|
262,392 |
|
||||
| Total, excluding net deferred loan costs | $ |
3,293,544 |
|
$ |
3,327,099 |
|
$ |
3,292,888 |
|
$ |
3,240,938 |
|
$ |
3,258,121 |
|
||||
For the Three Months Ended |
|||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
|||||||||||||||
| End of Period Customer Deposit Balances |
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
||||
| Noninterest-bearing demand | $ |
994,122 |
|
$ |
994,604 |
|
$ |
995,866 |
|
$ |
979,142 |
|
$ |
965,507 |
|
||||
| Interest-bearing demand |
|
1,377,520 |
|
|
1,443,422 |
|
|
1,388,596 |
|
|
1,468,424 |
|
|
1,366,255 |
|
||||
| Money market |
|
795,631 |
|
|
761,788 |
|
|
748,770 |
|
|
718,083 |
|
|
682,558 |
|
||||
| Savings |
|
408,743 |
|
|
410,165 |
|
|
416,795 |
|
|
416,162 |
|
|
414,796 |
|
||||
| Certificate of deposit |
|
766,762 |
|
|
790,536 |
|
|
771,403 |
|
|
739,512 |
|
|
762,712 |
|
||||
| Total customer deposits | $ |
4,342,778 |
|
$ |
4,400,515 |
|
$ |
4,321,430 |
|
$ |
4,321,323 |
|
$ |
4,191,828 |
|
||||
| Memo: Public funds included in above numbers | $ |
773,896 |
|
$ |
867,253 |
|
$ |
801,561 |
|
$ |
873,200 |
|
$ |
766,853 |
|
||||
For the Three Months Ended |
For the Year Ended |
||||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, |
|||||||||||||||
| Noninterest Income |
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| Service charges on deposit accounts | $ |
1,831 |
|
$ |
1,874 |
|
$ |
1,749 |
$ |
1,758 |
|
$ |
1,890 |
$ |
7,212 |
|
$ |
7,311 |
|
||
| Bank owned life insurance income, including death benefits |
|
891 |
|
|
852 |
|
|
832 |
|
|
810 |
|
|
613 |
|
|
3,385 |
|
|
2,659 |
|
| Trust fees |
|
3,079 |
|
|
2,745 |
|
|
2,596 |
|
|
2,641 |
|
|
2,700 |
|
|
11,061 |
|
|
10,099 |
|
| Insurance agency commissions |
|
1,567 |
|
|
1,395 |
|
|
1,828 |
|
|
1,741 |
|
|
1,273 |
|
|
6,531 |
|
|
5,472 |
|
| Security gains (losses), including fair value changes for equity securities |
|
(7 |
) |
|
(927 |
) |
|
36 |
|
|
(1,313 |
) |
|
10 |
|
|
(2,211 |
) |
|
(2,638 |
) |
| Retirement plan consulting fees |
|
1,009 |
|
|
1,060 |
|
|
783 |
|
|
798 |
|
|
719 |
|
|
3,650 |
|
|
2,637 |
|
| Investment commissions |
|
706 |
|
|
658 |
|
|
721 |
|
|
529 |
|
|
621 |
|
|
2,614 |
|
|
2,007 |
|
| Net gains on sale of loans |
|
436 |
|
|
559 |
|
|
329 |
|
|
326 |
|
|
282 |
|
|
1,650 |
|
|
1,502 |
|
| Other mortgage banking fee income (loss), net |
|
106 |
|
|
192 |
|
|
27 |
|
|
147 |
|
|
285 |
|
|
472 |
|
|
435 |
|
| Debit card and EFT fees |
|
1,956 |
|
|
2,068 |
|
|
2,017 |
|
|
1,866 |
|
|
2,164 |
|
|
7,907 |
|
|
7,484 |
|
| Other noninterest income |
|
523 |
|
|
954 |
|
|
1,204 |
|
|
1,178 |
|
|
856 |
|
|
3,859 |
|
|
4,748 |
|
| Total Noninterest Income | $ |
12,097 |
|
$ |
11,430 |
|
$ |
12,122 |
|
$ |
10,481 |
|
$ |
11,413 |
|
$ |
46,130 |
|
$ |
41,716 |
|
For the Three Months Ended |
For the Year Ended |
||||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, |
|||||||||||||||
| Noninterest Expense |
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
| Salaries and employee benefits | $ |
15,397 |
|
$ |
15,992 |
|
$ |
14,722 |
|
$ |
16,166 |
|
$ |
14,424 |
|
$ |
62,277 |
|
$ |
58,925 |
|
| Occupancy and equipment |
|
4,456 |
|
|
4,370 |
|
|
4,119 |
|
|
4,138 |
|
|
4,075 |
|
|
17,083 |
|
|
15,588 |
|
| FDIC insurance and state and local taxes |
|
925 |
|
|
1,212 |
|
|
1,262 |
|
|
1,262 |
|
|
1,019 |
|
|
4,661 |
|
|
5,029 |
|
| Professional fees |
|
1,179 |
|
|
990 |
|
|
1,026 |
|
|
1,196 |
|
|
785 |
|
|
4,391 |
|
|
4,317 |
|
| System conversion / Merger related costs |
|
925 |
|
|
3,123 |
|
|
0 |
|
|
0 |
|
|
92 |
|
|
4,048 |
|
|
92 |
|
| Advertising |
|
449 |
|
|
466 |
|
|
454 |
|
|
456 |
|
|
192 |
|
|
1,825 |
|
|
1,503 |
|
| Intangible amortization |
|
711 |
|
|
718 |
|
|
735 |
|
|
735 |
|
|
914 |
|
|
2,899 |
|
|
2,861 |
|
| Core processing charges |
|
1,391 |
|
|
1,412 |
|
|
1,401 |
|
|
1,397 |
|
|
1,202 |
|
|
5,601 |
|
|
4,622 |
|
| Other noninterest expenses |
|
3,646 |
|
|
3,396 |
|
|
3,456 |
|
|
3,176 |
|
|
3,471 |
|
|
13,674 |
|
|
13,754 |
|
| Total Noninterest Expense | $ |
29,079 |
|
$ |
31,679 |
|
$ |
27,175 |
|
$ |
28,526 |
|
$ |
26,174 |
|
$ |
116,459 |
|
$ |
106,691 |
|
Average Balance Sheets and Related Yields and Rates |
||||||||||||
(Dollar Amounts in Thousands) |
||||||||||||
|
|
|
|
|
|
|
||||||
|
Three Months Ended |
Three Months Ended |
|
|||||||||
|
December 31, 2025 |
December 31, 2024 |
|
|||||||||
|
AVERAGE |
|
YIELD/ |
AVERAGE |
|
YIELD/ |
||||||
|
BALANCE |
INTEREST (1) |
RATE (1) |
BALANCE |
INTEREST (1) |
RATE (1) |
||||||
| EARNING ASSETS | ||||||||||||
| Loans (2) | $ |
3,317,263 |
$ |
48,750 |
5.88 |
% |
$ |
3,270,825 |
$ |
47,286 |
5.78 |
% |
| Taxable securities |
|
1,149,570 |
|
7,546 |
2.63 |
|
|
1,119,391 |
|
6,850 |
2.45 |
|
| Tax-exempt securities (2) |
|
361,284 |
|
2,891 |
3.20 |
|
|
379,342 |
|
2,991 |
3.15 |
|
| Other investments |
|
41,956 |
|
467 |
4.45 |
|
|
38,855 |
|
420 |
4.32 |
|
| Federal funds sold and other |
|
66,943 |
|
397 |
2.37 |
|
|
104,289 |
|
987 |
3.79 |
|
| Total earning assets |
|
4,937,016 |
|
60,051 |
4.87 |
|
|
4,912,702 |
|
58,534 |
4.77 |
|
| Nonearning assets |
|
288,481 |
|
247,199 |
||||||||
| Total assets | $ |
5,225,497 |
$ |
5,159,901 |
||||||||
| INTEREST-BEARING LIABILITIES | ||||||||||||
| Time deposits | $ |
773,558 |
$ |
6,657 |
3.44 |
% |
$ |
765,674 |
$ |
7,463 |
3.90 |
% |
| Brokered time deposits |
|
0 |
|
0 |
0.00 |
|
|
74,941 |
|
822 |
4.39 |
|
| Savings deposits |
|
1,195,948 |
|
4,718 |
1.58 |
|
|
1,091,547 |
|
4,056 |
1.49 |
|
| Demand deposits - interest bearing |
|
1,433,266 |
|
8,074 |
2.25 |
|
|
1,419,048 |
|
8,731 |
2.46 |
|
| Total interest-bearing deposits |
|
3,402,772 |
|
19,449 |
2.29 |
|
|
3,351,210 |
|
21,072 |
2.52 |
|
| Short term borrowings |
|
191,054 |
|
1,957 |
4.10 |
|
|
260,369 |
|
3,105 |
4.77 |
|
| Long term borrowings |
|
86,659 |
|
992 |
4.58 |
|
|
86,096 |
|
993 |
4.61 |
|
| Total borrowed funds |
|
277,713 |
|
2,949 |
4.25 |
|
|
346,465 |
|
4,098 |
4.73 |
|
| Total interest-bearing liabilities |
|
3,680,485 |
|
22,398 |
2.43 |
|
|
3,697,675 |
|
25,170 |
2.72 |
|
| NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Demand deposits - noninterest bearing |
|
1,014,374 |
|
973,788 |
||||||||
| Other liabilities |
|
49,577 |
|
59,792 |
||||||||
| Stockholders' equity |
|
481,061 |
|
428,646 |
||||||||
| TOTAL LIABILITIES AND | ||||||||||||
| STOCKHOLDERS' EQUITY | $ |
5,225,497 |
$ |
5,159,901 |
||||||||
| Net interest income and interest rate spread | $ |
37,653 |
2.44 |
% |
$ |
33,364 |
2.05 |
% |
||||
| Net interest margin | 3.05 |
% |
2.72 |
% |
||||||||
| (1) Interest and yields are calculated on a tax-equivalent basis where applicable. | ||||||||||||
| (2) For 2025, adjustments of |
||||||||||||
For the Year Ended |
For the Year Ended |
|||||||||||
December 31, 2025 |
December 31, 2024 |
|||||||||||
AVERAGE |
|
YIELD/ |
AVERAGE |
|
YIELD/ |
|||||||
BALANCE |
INTEREST (1) |
RATE (1) |
BALANCE |
INTEREST (1) |
RATE (1) |
|||||||
| EARNING ASSETS | ||||||||||||
| Loans (2) | $ |
3,291,482 |
$ |
191,433 |
5.82 |
% |
$ |
3,227,384 |
$ |
186,032 |
5.76 |
% |
| Taxable securities |
|
1,140,462 |
|
29,491 |
2.59 |
|
|
1,110,905 |
|
26,838 |
2.42 |
|
| Tax-exempt securities (2) |
|
366,464 |
|
11,676 |
3.19 |
|
|
386,643 |
|
12,165 |
3.15 |
|
| Other investments |
|
41,809 |
|
1,930 |
4.62 |
|
|
35,402 |
|
1,450 |
4.10 |
|
| Federal funds sold and other |
|
69,534 |
|
1,802 |
2.59 |
|
|
96,288 |
|
3,727 |
3.87 |
|
| Total earning assets |
|
4,909,751 |
|
236,332 |
4.81 |
|
|
4,856,622 |
|
230,212 |
4.74 |
|
| Nonearning assets |
|
254,563 |
|
234,297 |
||||||||
| Total assets | $ |
5,164,314 |
$ |
5,090,919 |
||||||||
| INTEREST-BEARING LIABILITIES | ||||||||||||
| Time deposits | $ |
753,803 |
$ |
26,699 |
3.54 |
% |
$ |
745,945 |
$ |
29,329 |
3.93 |
% |
| Brokered time deposits |
|
71,529 |
|
3,112 |
4.35 |
|
|
25,389 |
|
1,108 |
4.36 |
|
| Savings deposits |
|
1,158,663 |
|
17,578 |
1.52 |
|
|
1,095,470 |
|
16,144 |
1.47 |
|
| Demand deposits - interest bearing |
|
1,427,654 |
|
32,389 |
2.27 |
|
|
1,396,193 |
|
34,588 |
2.48 |
|
| Total interest-bearing deposits |
|
3,411,649 |
|
79,778 |
2.34 |
|
|
3,262,997 |
|
81,169 |
2.49 |
|
| Short term borrowings |
|
174,170 |
|
7,591 |
4.36 |
|
|
293,488 |
|
14,105 |
4.81 |
|
| Long term borrowings |
|
86,433 |
|
3,979 |
4.60 |
|
|
87,749 |
|
4,090 |
4.66 |
|
| Total borrowed funds |
|
260,603 |
|
11,570 |
4.44 |
|
|
381,237 |
|
18,195 |
4.77 |
|
| Total interest-bearing liabilities |
|
3,672,252 |
|
91,348 |
2.49 |
|
|
3,644,234 |
|
99,364 |
2.73 |
|
| NONINTEREST-BEARING LIABILITIES | ||||||||||||
| AND STOCKHOLDERS' EQUITY | ||||||||||||
| Demand deposits - noninterest bearing | $ |
998,255 |
|
981,115 |
||||||||
| Other liabilities |
|
52,896 |
|
58,134 |
||||||||
| Stockholders' equity |
|
440,911 |
|
407,436 |
||||||||
| TOTAL LIABILITIES AND | ||||||||||||
| STOCKHOLDERS' EQUITY | $ |
5,164,314 |
$ |
5,090,919 |
||||||||
| Net interest income and interest rate spread | $ |
144,984 |
2.32 |
% |
$ |
130,848 |
2.01 |
% |
||||
| Net interest margin | 2.95 |
% |
2.69 |
% |
||||||||
| (1) Interest and yields are calculated on a tax-equivalent basis where applicable. | ||||||||||||
| (2) For 2025, adjustments of |
||||||||||||
| Reconciliation of Total Assets to Tangible Assets | For the Three Months Ended |
For the Year Ended |
|||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, |
|||||||||||||||
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
| Total Assets | $ |
5,245,870 |
|
$ |
5,235,575 |
|
$ |
5,178,428 |
|
$ |
5,157,040 |
|
$ |
5,118,924 |
|
$ |
5,245,870 |
|
$ |
5,118,924 |
|
| Less Goodwill and other intangibles |
|
185,301 |
|
|
186,013 |
|
|
186,731 |
|
|
187,466 |
|
|
188,200 |
|
|
185,301 |
|
|
188,200 |
|
| Tangible Assets | $ |
5,060,569 |
|
$ |
5,049,562 |
|
$ |
4,991,697 |
|
$ |
4,969,574 |
|
$ |
4,930,724 |
|
$ |
5,060,569 |
|
$ |
4,930,724 |
|
| Average Assets |
|
5,225,497 |
|
|
5,178,998 |
|
|
5,132,661 |
|
|
5,118,767 |
|
|
5,159,901 |
|
|
5,164,314 |
|
|
5,090,919 |
|
| Less average Goodwill and other intangibles |
|
186,844 |
|
|
186,479 |
|
|
187,209 |
|
|
187,947 |
|
|
188,256 |
|
|
186,844 |
|
|
189,105 |
|
| Average Tangible Assets | $ |
5,038,653 |
|
$ |
4,992,519 |
|
$ |
4,945,452 |
|
$ |
4,930,820 |
|
$ |
4,971,645 |
|
$ |
4,977,470 |
|
$ |
4,901,814 |
|
| Reconciliation of Common Stockholders' Equity to Tangible Common Equity | For the Three Months Ended |
For the Year Ended |
|||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, |
|||||||||||||||
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
| Stockholders' Equity | $ |
485,725 |
|
$ |
465,949 |
|
$ |
437,748 |
|
$ |
429,134 |
|
$ |
406,028 |
|
$ |
485,725 |
|
$ |
406,028 |
|
| Less Goodwill and other intangibles |
|
185,301 |
|
|
186,013 |
|
|
186,731 |
|
|
187,466 |
|
|
188,200 |
|
|
185,301 |
|
|
188,200 |
|
| Tangible Common Equity | $ |
300,424 |
|
$ |
279,936 |
|
$ |
251,017 |
|
$ |
241,668 |
|
$ |
217,828 |
|
$ |
300,424 |
|
$ |
217,828 |
|
| Average Stockholders' Equity |
|
481,061 |
|
|
442,556 |
|
|
425,249 |
|
|
414,021 |
|
|
428,646 |
|
|
440,911 |
|
|
407,436 |
|
| Less average Goodwill and other intangibles |
|
186,844 |
|
|
186,479 |
|
|
187,209 |
|
|
187,947 |
|
|
188,256 |
|
|
186,844 |
|
|
189,105 |
|
| Average Tangible Common Equity | $ |
294,217 |
|
$ |
256,077 |
|
$ |
238,040 |
|
$ |
226,074 |
|
$ |
240,390 |
|
$ |
254,067 |
|
$ |
218,331 |
|
| Reconciliation of Net Income, Less Merger and Certain Items | For the Three Months Ended |
For the Year Ended |
|||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, |
|||||||||||||||
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
| Net income | $ |
14,638 |
|
$ |
12,461 |
|
$ |
13,910 |
|
$ |
13,578 |
|
$ |
14,391 |
|
$ |
54,586 |
|
$ |
45,949 |
|
| System conversion / Acquisition related costs - after tax |
|
398 |
|
|
2,467 |
|
|
0 |
|
|
0 |
|
|
82 |
|
|
2,666 |
|
|
82 |
|
| Net loss (gain) on asset/security sales - after tax |
|
113 |
|
|
760 |
|
|
(137 |
) |
|
1,056 |
|
|
70 |
|
|
1,793 |
|
|
2,120 |
|
| Net income - Adjusted | $ |
15,149 |
|
$ |
15,688 |
|
$ |
13,773 |
|
$ |
14,634 |
|
$ |
14,543 |
|
$ |
59,045 |
|
$ |
48,151 |
|
| Diluted EPS excluding merger and certain items | $ |
0.40 |
|
$ |
0.42 |
|
$ |
0.37 |
|
$ |
0.39 |
|
$ |
0.39 |
|
$ |
1.57 |
|
$ |
1.28 |
|
| Return on Average Assets excluding system conversion, merger and certain items (Annualized) |
|
1.16 |
% |
|
1.21 |
% |
|
1.07 |
% |
|
1.14 |
% |
|
1.13 |
% |
|
1.14 |
% |
|
0.95 |
% |
| Return on Average Equity excluding system conversion, merger and certain items (Annualized) |
|
12.60 |
% |
|
14.18 |
% |
|
12.96 |
% |
|
14.14 |
% |
|
13.57 |
% |
|
13.39 |
% |
|
11.82 |
% |
| Return on Average Tangible Equity excluding system conversion, merger costs and certain items (Annualized) |
|
20.60 |
% |
|
24.51 |
% |
|
23.14 |
% |
|
25.89 |
% |
|
24.20 |
% |
|
23.24 |
% |
|
22.05 |
% |
| Efficiency ratio excluding certain items | For the Three Months Ended |
For the Year Ended |
|||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, |
|||||||||||||||
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
| Net interest income, tax equated | $ |
37,653 |
|
$ |
36,940 |
|
$ |
35,554 |
|
$ |
34,837 |
|
$ |
33,364 |
|
$ |
144,984 |
|
$ |
130,848 |
|
| Noninterest income |
|
12,097 |
|
|
11,430 |
|
|
12,122 |
|
|
10,481 |
|
|
11,413 |
|
|
46,130 |
|
|
41,716 |
|
| Net loss (gain) on asset/security sales |
|
143 |
|
|
962 |
|
|
(173 |
) |
|
1,337 |
|
|
89 |
|
|
2,269 |
|
|
2,684 |
|
| Net interest income and noninterest income adjusted |
|
49,893 |
|
|
49,332 |
|
|
47,503 |
|
|
46,655 |
|
|
44,866 |
|
|
193,383 |
|
|
175,248 |
|
| Noninterest expense less intangible amortization |
|
28,368 |
|
|
30,961 |
|
|
26,440 |
|
|
27,791 |
|
|
25,260 |
|
|
113,560 |
|
|
103,830 |
|
| System conversion / Acquisition related costs |
|
925 |
|
|
3,123 |
|
|
0 |
|
|
0 |
|
|
92 |
|
|
4,048 |
|
|
92 |
|
| Noninterest expense adjusted |
|
27,443 |
|
|
27,838 |
|
|
26,440 |
|
|
27,791 |
|
|
25,168 |
|
|
109,512 |
|
|
103,738 |
|
| Efficiency ratio excluding certain items |
|
55.00 |
% |
|
56.43 |
% |
|
55.66 |
% |
|
59.57 |
% |
|
56.10 |
% |
|
56.63 |
% |
|
59.19 |
% |
| Net interest margin excluding acquisition marks and PPP interest and fees | For the Three Months Ended |
For the Year Ended |
|||||||||||||||||||
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
Dec. 31, |
Dec. 31, |
Dec. 31, |
|||||||||||||||
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
| Net interest income, tax equated | $ |
37,653 |
|
$ |
36,940 |
|
$ |
35,554 |
|
$ |
34,837 |
|
$ |
33,364 |
|
$ |
144,984 |
|
$ |
130,848 |
|
| Acquisition marks |
|
1,894 |
|
|
1,677 |
|
|
1,731 |
|
|
2,151 |
|
|
1,953 |
|
|
7,453 |
|
|
8,837 |
|
| PPP interest and fees |
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
0 |
|
|
2 |
|
|
2 |
|
| Adjusted and annualized net interest income |
|
143,036 |
|
|
141,052 |
|
|
135,292 |
|
|
130,744 |
|
|
125,644 |
|
|
137,529 |
|
|
122,009 |
|
| Average earning assets |
|
4,937,016 |
|
|
4,922,275 |
|
|
4,886,771 |
|
|
4,892,311 |
|
|
4,912,702 |
|
|
4,909,751 |
|
|
4,856,622 |
|
| Less PPP average balances |
|
87 |
|
|
89 |
|
|
95 |
|
|
105 |
|
|
112 |
|
|
95 |
|
|
153 |
|
| Adjusted average earning assets |
|
4,936,929 |
|
|
4,922,186 |
|
|
4,886,676 |
|
|
4,892,206 |
|
|
4,912,590 |
|
|
4,909,656 |
|
|
4,856,469 |
|
| Net interest margin excluding marks and PPP interest and fees |
|
2.90 |
% |
|
2.87 |
% |
|
2.77 |
% |
|
2.67 |
% |
|
2.56 |
% |
|
2.80 |
% |
|
2.51 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260127011270/en/
Farmers National Banc Corp.
Kevin J. Helmick, President and CEO
20 South Broad Street, P.O. Box 555
330.533.3341
Email: exec@farmersbankgroup.com
Source: Farmers National Banc Corp.