Farmers National Banc Corp. Reports Results for Third Quarter of 2026

Higher net interest income accompanied lower earnings per share, securities restructuring losses and increased nonperforming loans.

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• 175 consecutive quarters of profitability
• EPS was $0.25 for the quarter, $0.47 excluding acquisition, core conversion and security restructure costs (non-GAAP)
• Outstanding loan growth of 1.6% for the quarter, or 6.6% annualized
• Completed a core system conversion to Jack Henry during the quarter
• Completed a $90.5 million security restructuring and recognized a $10.3 million loss
• Recognized $3.9 million of other income on the full payoff of a loan partially charged off by Middlefield Banc Corp. prior to the acquisition
• Net interest margin increased to 3.54% in the third quarter of 2026 from 3.44% in the second quarter of 2026 and 3.00% in the third quarter of 2025
• Efficiency ratio was 68.0% in the third quarter of 2026, 50.2% excluding acquisition and core conversion costs (non-GAAP)

CANFIELD, Ohio--(BUSINESS WIRE)-- Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today announced net income of $14.5 million, or $0.25 per diluted share, for the third quarter of 2026 compared to $12.5 million, or $0.33 per diluted share, for the third quarter of 2025. Net income in the third quarter of 2026 included $6.1 million in expense related to the March 2, 2026, acquisition of Middlefield Banc Corp. (“Middlefield”) and core conversion costs. In addition, the Company recognized a $10.3 million loss on the sale of securities and $600,000 in severance costs. Excluding these items (non-GAAP), adjusted net income for the third quarter of 2026 was $28.0 million, or $0.47 per diluted share.

Kevin J. Helmick, President and CEO, stated: “As expected, 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 March 2026 Middlefield acquisition, and repositioned our investment securities portfolio. These actions represent important milestones in our ongoing strategy to improve operating efficiency, enhance profitability, and grow our community banking franchise. 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. We remain focused on leveraging our expanded capabilities and growing market presence to drive sustainable, profitable growth.”

Balance Sheet

Total assets were $7.12 billion at September 30, 2026, compared to $7.14 billion at June 30, 2026, and $5.25 billion at December 31, 2025. The increase since December was due to the Middlefield acquisition which added $1.82 billion in assets. Total loans, net of allowance, increased to $4.80 billion at September 30, 2026, from $4.72 billion at June 30, 2026, and $3.27 billion at December 31, 2025. The increase since December was due to the Middlefield acquisition which added $1.49 billion in total loans. The 1.6% sequential increase from the second quarter was driven by strong gains across all business lines including 1.4% sequential growth in the commercial portfolio.

Securities available for sale decreased slightly to $1.40 billion at September 30, 2026, compared to $1.47 billion at June 30, 2026, and $1.34 billion at December 31, 2025. Middlefield added $152.8 million to securities available for sale. During the quarter, the Company restructured $90.5 million of securities incurring a $10.3 million loss. The restructuring resulted in an increase in the yield of the securities sold from 1.61% to approximately 5.25%. This increase resulted in a payback period on the loss of 3.1 years. The Company also saw a decline in the value of the securities of $91.3 million during the quarter due to the rapid rise in U.S. Treasury rates. The Company anticipates continued rate volatility in the bond market in 2026 and 2027, which will continue to affect the value of the portfolio.

Total deposits declined to $5.81 billion at September 30, 2026, compared to $5.83 billion at June 30, 2026, and $4.34 billion at December 31, 2025. The increase since December was primarily due to the acquisition of Middlefield, which added $1.49 billion in deposits. The decline since June was primarily due to seasonal factors associated with the timing of deposit flows from public funds.

On December 15, 2026, the Company intends to pay off the remaining $72.0 million of fixed-to-floating rate subordinated notes due December 15, 2031. The interest rate on the notes is due to reset from 3.125% to approximately 6.20% on December 15, 2026. The Company believes that it has ample capital and liquidity to pay off the notes and its future financial performance will benefit from the early redemption.

Total stockholders’ equity declined to $716.5 million at September 30, 2026, from $784.0 million at June 30, 2026, and $485.7 million at December 31, 2025. The increase since December was primarily driven by the acquisition of Middlefield while the decline since June was primarily driven by a decrease in accumulated other comprehensive income offset by earnings net of dividends paid to shareholders.

Credit Quality

Non-performing loans increased to $47.9 million at September 30, 2026, from $44.6 million at June 30, 2026, and $26.2 million at December 31, 2025. Nonperforming loans to total loans were 0.99% at September 30, 2026, compared to 0.93% at June 30, 2026, and 0.79% at December 31, 2025. Loans 30-89 days delinquent were $23.4 million at September 30, 2026, or 0.48% of total loans, compared to $18.9 million, or 0.40% of total loans at June 30, 2026, and $16.9 million, or 0.51% of total loans at December 31, 2025.

The provision for credit losses and unfunded commitments was $2.8 million during the third quarter of 2026 compared to a provision for credit losses of $1.4 million in the third quarter of 2025. The provision was higher during the quarter primarily due to increased CECL factors associated with historical loss ratios. Annualized net charge-offs as a percentage of average loans were 0.22% in the third quarter of 2026, compared to 0.07% in the third quarter of 2025. The increase in net charge-offs was associated with the partial charge-off of a non-performing loan. The amount charged off was specifically reserved and had been recognized in loan loss provision expense in prior periods. The allowance for credit losses to total loans was 1.10% at September 30, 2026, 1.12% at June 30, 2026, and 1.11% at December 31, 2025.

Net Interest Income

Net interest income increased to $57.9 million in the third quarter of 2026, compared to $36.3 million in the third quarter of 2025. Average interest earning assets increased to $6.65 billion in the third quarter of 2026 compared to $4.92 billion in the third quarter of 2025. The increase was primarily driven by the acquisition of Middlefield. The net interest margin improved to 3.54% in the third quarter of 2026 compared to 3.00% in the third quarter of 2025. The year-over-year increase in net interest margin was due to the acquisition, higher yields on interest earning assets and lower funding costs on interest bearing liabilities. The net interest margin also increased as a result of the security restructuring in the third quarter of 2026. In addition, the Company saw greater accretion of loan marks in the third quarter associated with the payoff of a large Middlefield loan. Due to the benefit from the security restructuring, a steeper yield curve and higher overall treasury yields, the Company now expects the net interest margin to settle into a range of approximately 3.43% to 3.46% in the fourth quarter of 2026. Excluding acquisition marks, non-GAAP, the Company’s net interest margin was 3.39% in the third quarter of 2026, and 2.87% in the third quarter of 2025.

Noninterest Income

Noninterest income declined to $7.9 million in the third quarter of 2026 from $11.4 million in the third quarter of 2025. The decrease was driven by the $10.3 million loss on the sale of securities during the quarter offset by the Middlefield acquisition and continued growth in the Company’s wealth lines of business. Service charge income totaled $2.3 million in the third quarter of 2026 compared to $1.9 million in the third quarter of 2025 primarily due to the acquisition. Bank owned life insurance income was $1.1 million in the third quarter of 2026 compared to $852,000 in the third quarter of 2025. The addition of Middlefield was primarily responsible for the difference. Trust fees were $3.2 million for the third quarter of 2026, an increase of $433,000 from the $2.7 million reported in the third quarter of 2025. Strong growth in the Company’s trust business unit along with solid market conditions continues to drive revenue. Security losses in the third quarter of 2026 totaled $10.3 million compared to losses of $927,000 in the third quarter of 2025. The security restructuring during the third quarter of 2026 was the primary driver compared to a much smaller security restructuring in the third quarter of 2025. Investment commissions totaled $1.1 million in the third quarter of 2026 compared to $658,000 for the third quarter of 2025. The increase was primarily due to the addition of Middlefield, the continued additions of investment representatives to the program and strong stock market returns during 2026. Net gains on the sale of loans were $390,000 in the third quarter of 2026 compared to $559,000 in the third quarter of 2025. The rise in rates has hurt overall mortgage volumes and will continue to be a headwind to this line of business. Debit card income increased to $2.6 million in the third quarter of 2026 from $2.1 million in the third quarter of 2025. The increase was driven by the Middlefield acquisition. Other noninterest income increased to $5.0 million in the third quarter of 2026 compared to $954,000 in the third quarter of 2025. The full payoff of a troubled loan that had been partially charged off by Middlefield prior to the acquisition resulting in $3.9 million of income was the primary driver.

Noninterest Expense

Noninterest expense increased to $46.6 million in the third quarter of 2026 from $31.7 million in the third quarter of 2025 primarily as a result of the Middlefield acquisition and an increased level of acquisition and core conversion costs compared to the third quarter of 2025. Salaries and employee benefits increased to $22.5 million in the third quarter of 2026 from $16.0 million in the third quarter of 2025. The increase was primarily driven by annual raises and the Middlefield acquisition along with $600,000 in severance expense in the third quarter of 2026. Occupancy and equipment expenses increased to $5.7 million in the third quarter of 2026, compared to $4.4 million in the third quarter of 2025, primarily as result of the acquisition. Several categories of expense including occupancy and equipment should begin to see a decline in expense beginning in the fourth quarter of 2026 as the remainder of cost savings related to Middlefield begin to accrue post system conversion. FDIC insurance and state and local taxes were $2.0 million in the third quarter of 2026 compared to $1.2 million in the third quarter of 2025. The increase was due to the acquisition and increased franchise tax from higher levels of capital year-over-year. Merger related and system conversion costs totaled $6.1 million during the third quarter of 2026 compared to $3.1 million in the third quarter of 2025. Conversion costs and contract severance costs were the primary driver for this increase. Intangible amortization increased to $1.2 million in the third quarter of 2026 as a result of the acquisition of Middlefield compared to the $718,000 of amortization recorded in the third quarter of 2025. Core processing expense increased to $2.7 million in the third quarter of 2026 compared to $1.4 million in the third quarter of 2025. The increase was due to the acquisition. Other noninterest expense increased by $1.3 million to $4.7 million in the third quarter of 2026 primarily as a result of the acquisition and timing issues.

Liquidity

The Company had access to an additional $465.3 million in FHLB borrowing capacity at September 30, 2026, along with $453.8 million in available for sale securities that are available for pledging. The Company’s loan to deposit ratio was 83.6% at September 30, 2026.

About Farmers National Banc Corp.

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $7.1 billion in banking assets. Farmers National Banc Corp.’s wholly owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 80 banking locations in Ohio and western Pennsylvania, and Farmers Trust Company, which operates trust offices and offers services in the same geographic markets. Total wealth management assets under care at September 30, 2026, are $5.2 billion. Farmers National Insurance LLC, a wholly owned subsidiary of The Farmers National Bank of Canfield, offers a variety of insurance products.

Non-GAAP Disclosure

This press release includes disclosures of Farmers’ tangible book value per share, tangible common equity ratio, return on average tangible assets, return on average tangible equity, core EPS, net income excluding costs related to acquisition activities and certain items, return on average assets excluding acquisition costs and certain items, return on average equity excluding acquisition 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 the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers’ marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures to their GAAP equivalents are included in the tables following Consolidated Financial Highlights below.

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 U.S. economic conditions including those resulting from continued high rates of inflation, tightening monetary policy of the Board of Governors of the Federal Reserve, U.S. and foreign country tariff policies, and possibility of a recession; and the other factors contained in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2025 and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and available on Farmers’ website (www.farmersbankgroup.com) and on the SEC’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Farmers does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

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 Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,					Percent
	2026			2026			2026			2025			2025			2026			2025					Change
Total interest income	$	88,522		$	86,094		$	67,117		$	59,418		$	59,366		$	241,732		$	174,374				38.6	%
Total interest expense		30,580			30,062			24,549			22,398			23,059			85,190			68,949				23.6	%
Net interest income		57,942			56,032			42,568			37,020			36,307			156,542			105,425				48.5	%
Provision (credit) for credit losses		2,792			2,437			(1,034	)		2,306			1,419			4,196			4,763				-11.9	%
Noninterest income		7,927			14,413			13,688			12,098			11,430			36,027			34,032				5.9	%
System conversion / Acquisition related costs		6,106			1,695			3,981			925			3,123			11,782			3,123				0.0	%
Other expense		40,536			39,179			33,337			28,153			28,556			113,051			84,258				34.2	%
Income before income taxes		16,435			27,134			19,972			17,734			14,639			63,540			47,313				34.3	%
Income taxes		1,900			4,099			3,708			3,096			2,178			9,706			7,364				31.8	%
Net income	$	14,535		$	23,035		$	16,264		$	14,638		$	12,461		$	53,834		$	39,949				34.8	%
Average diluted shares outstanding		59,301			59,223			44,874			37,705			37,677			54,487			37,626
Basic earnings per share		0.25			0.39			0.36			0.39			0.33			0.99			1.07
Diluted earnings per share		0.25			0.39			0.36			0.39			0.33			0.99			1.06
Cash dividends per share		0.18			0.17			0.17			0.17			0.17			0.52			0.51
Performance Ratios
Net Interest Margin (Annualized)		3.54	%		3.44	%		3.12	%		3.05	%		3.00	%		3.38	%		2.92	%
Efficiency Ratio (Tax equivalent basis)		68.00	%		55.60	%		63.97	%		57.11	%		62.66	%		62.29	%		59.68	%
Efficiency Ratio (Tax equivalent basis) excluding core conversion, acquisition costs and other extraordinary items (b)		50.19	%		53.21	%		56.96	%		55.00	%		56.43	%		53.12	%		57.20	%
Return on Average Assets (Annualized)		0.81	%		1.29	%		1.11	%		1.12	%		0.96	%		1.07	%		1.04	%
Return on Average Equity (Annualized)		7.45	%		11.82	%		11.55	%		12.17	%		11.26	%		10.13	%		12.46	%
Other Performance Ratios (Non-GAAP)
Return on Average Tangible Assets		0.85	%		1.35	%		1.15	%		1.16	%		1.00	%		1.11	%		1.07	%
Return on Average Tangible Equity		12.27	%		19.54	%		18.13	%		19.90	%		19.46	%		16.49	%		22.18	%
Consolidated Statements of Financial Condition
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,
	2026			2026			2026			2025			2025
Assets
Cash and cash equivalents	$	111,919		$	164,754		$	186,083		$	92,357		$	92,345
Debt securities available for sale		1,403,531			1,473,698			1,484,198			1,343,457			1,301,766
Other investments		63,482			60,539			54,858			45,397			44,245
Loans held for sale		3,144			2,862			1,919			1,516			4,975
Loans		4,854,818			4,776,477			4,800,064			3,304,713			3,337,780
Less allowance for credit losses		53,531			53,285			54,684			36,811			39,528
Net Loans		4,801,287			4,723,192			4,745,380			3,267,902			3,298,252
Other assets		736,000			715,839			703,038			495,241			493,992
Total Assets	$	7,119,363		$	7,140,884		$	7,175,476		$	5,245,870		$	5,235,575
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing	$	1,415,970		$	1,368,145		$	1,334,021		$	994,122		$	994,604
Interest-bearing		4,392,800			4,462,969			4,587,364			3,348,656			3,405,911
Brokered time deposits		0			0			0			0			0
Total deposits		5,808,770			5,831,114			5,921,385			4,342,778			4,400,515
Other interest-bearing liabilities		521,646			455,374			435,108			367,733			321,581
Other liabilities		72,462			70,444			52,093			49,634			47,530
Total liabilities		6,402,878			6,356,932			6,408,586			4,760,145			4,769,626
Stockholders' Equity		716,485			783,952			766,890			485,725			465,949
Total Liabilities
and Stockholders' Equity	$	7,119,363		$	7,140,884		$	7,175,476		$	5,245,870		$	5,235,575
Period-end shares outstanding		59,249			59,233			59,215			37,653			37,647
Book value per share	$	12.09		$	13.24		$	12.95		$	12.90		$	12.38
Tangible book value per share (Non-GAAP)*		6.93			8.05			7.74			7.98			7.44
* Tangible book value per share is calculated by dividing tangible common equity by outstanding shares

	For the Three Months Ended															For the Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,		Sept. 30,
Capital and Liquidity	2026			2026			2026			2025			2025			2026		2025
Common Equity Tier 1 Capital Ratio (a)		11.98	%		12.00	%		11.70	%		12.02	%		11.62	%
Total Risk Based Capital Ratio (a)		14.82	%		14.91	%		14.63	%		15.46	%		15.08	%
Tier 1 Risk Based Capital Ratio (a)		12.47	%		12.50	%		12.19	%		12.51	%		12.10	%
Tier 1 Leverage Ratio (a)		9.40	%		9.38	%		11.21	%		8.92	%		8.75	%
Equity to Asset Ratio		10.06	%		10.98	%		10.69	%		9.26	%		8.90	%
Tangible Common Equity Ratio (b)		6.02	%		6.98	%		6.68	%		5.94	%		5.54	%
Net Loans to Assets		67.44	%		66.14	%		66.13	%		62.29	%		63.00	%
Loans to Deposits		83.58	%		81.91	%		81.06	%		76.10	%		75.85	%
Asset Quality
Non-performing loans	$	47,938		$	44,636		$	59,854		$	26,215		$	35,344
Non-performing assets		48,107			44,827			59,977			26,370			35,519
Loans 30 - 89 days delinquent		23,391			18,869			14,700			16,947			16,083
Charged-off loans		2,906			3,803			729			5,192			869		7,438		2,315
Recoveries		280			170			285			295			333		735		871
Net Charge-offs		2,626			3,633			444			4,897			536		6,703		1,444
Annualized Net Charge-offs to Average Net Loans		0.22	%		0.30	%		0.05	%		0.59	%		0.07	%	0.20	%	0.06	%
Allowance for Credit Losses to Total Loans		1.10	%		1.12	%		1.14	%		1.11	%		1.18	%
Non-performing Loans to Total Loans		0.99	%		0.93	%		1.25	%		0.79	%		1.06	%
Loans 30 - 89 Days Delinquent to Total Loans		0.48	%		0.40	%		0.31	%		0.51	%		0.48	%
Allowance to Non-performing Loans		111.67	%		119.38	%		91.36	%		140.42	%		111.84	%
Non-performing Assets to Total Assets		0.68	%		0.63	%		0.84	%		0.50	%		0.68	%
(a) September 30, 2026 ratio is estimated
(b) This is a non-GAAP financial measure. A reconciliation to GAAP is shown below

	For the Three Months Ended
	Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,
End of Period Loan Balances	2026		2026		2026		2025		2025
Commercial real estate	$	2,058,757	$	2,022,733	$	2,078,421	$	1,398,116	$	1,428,583
Commercial		598,720		592,431		591,406		340,224		351,213
Residential real estate		1,238,920		1,230,110		1,219,766		850,300		850,112
HELOC		372,256		360,685		349,656		181,544		176,609
Consumer		288,805		272,890		265,136		257,795		251,557
Agricultural loans		283,390		285,027		284,014		265,565		269,025
Total, excluding net deferred loan costs	$	4,840,848	$	4,763,876	$	4,788,399	$	3,293,544	$	3,327,099
	For the Three Months Ended
	Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,
End of Period Customer Deposit Balances	2026		2026		2026		2025		2025
Noninterest-bearing demand	$	1,415,970	$	1,368,145	$	1,334,021	$	994,122	$	994,604
Interest-bearing demand		1,625,103		1,626,459		1,698,780		1,377,520		1,443,422
Money market		1,434,215		1,397,397		1,395,660		795,631		761,788
Savings		495,992		560,710		576,089		408,743		410,165
Certificate of deposit		837,490		878,402		916,835		766,762		790,536
Total customer deposits	$	5,808,770	$	5,831,113	$	5,921,385	$	4,342,778	$	4,400,515
Memo: Public funds included in above numbers	$	976,373	$	989,604	$	1,056,571	$	773,896	$	867,253

	For the Three Months Ended														For the Nine Months Ended
	Sept. 30,			June 30,		March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
Noninterest Income	2026			2026		2026			2025			2025			2026			2025
Service charges on deposit accounts	$	2,313		$	2,434	$	1,966		$	1,831		$	1,874		$	6,713		$	5,381
Bank owned life insurance income, including death benefits		1,116			1,401		1,492			891			852		$	4,009			2,494
Trust fees		3,178			3,089		3,030			3,079			2,745		$	9,297			7,982
Insurance agency commissions		1,432			1,485		1,683			1,567			1,395		$	4,600			4,964
Security gains (losses), including fair value changes for equity securities		(10,342	)		22		(18	)		(7	)		(927	)	($	10,338	)		(2,205	)
Retirement plan consulting fees		899			954		886			1,009			1,060		$	2,739			2,641
Investment commissions		1,085			1,044		871			706			658		$	3,000			1,908
Net gains on sale of loans		390			398		380			436			559		$	1,168			1,214
Other mortgage banking fee income (loss), net		268			199		477			106			192		$	944			366
Debit card and EFT fees		2,584			2,561		2,023			1,956			2,068		$	7,168			5,951
Other noninterest income		5,004			826		898			523			954		$	6,727			3,336
Total Noninterest Income	$	7,927		$	14,413	$	13,688		$	12,097		$	11,430		$	36,027		$	34,032
	For the Three Months Ended														For the Nine Months Ended
	Sept. 30,			June 30,		March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
Noninterest Expense	2026			2026		2026			2025			2025			2026			2025
Salaries and employee benefits	$	22,542		$	21,312	$	18,511		$	15,397		$	15,992		$	62,365		$	46,880
Occupancy and equipment		5,710			5,935		5,126			4,456			4,370		$	16,770			12,627
FDIC insurance and state and local taxes		1,954			1,933		1,603			925			1,212		$	5,490			3,736
Professional fees		1,083			1,357		1,112			1,179			990		$	3,552			3,213
System conversion / Merger related costs		6,106			1,695		3,981			925			3,123		$	11,782			3,123
Advertising		624			627		544			449			466		$	1,795			1,376
Intangible amortization		1,214			1,195		865			711			718		$	3,274			2,188
Core processing charges		2,679			2,327		1,750			1,391			1,412		$	6,756			4,210
Other noninterest expenses		4,730			4,493		3,826			3,646			3,396		$	13,049			10,028
Total Noninterest Expense	$	46,642		$	40,874	$	37,318		$	29,079		$	31,679		$	124,833		$	87,381

Average Balance Sheets and Related Yields and Rates
(Dollar Amounts in Thousands)
	Three Months Ended						Three Months Ended
	September 30, 2026						September 30, 2025
	AVERAGE				YIELD/		AVERAGE				YIELD/
	BALANCE		INTEREST (1)		RATE (1)		BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	4,799,788	$	74,083	6.17	%	$	3,311,535	$	48,713	5.88	%
Taxable securities		1,192,889		9,302	3.12			1,134,806		7,466	2.63
Tax-exempt securities (2)		485,881		4,468	3.68			363,171		2,895	3.19
Other investments		63,147		742	4.70			40,940		459	4.48
Federal funds sold and other		112,953		861	3.05			71,823		466	2.60
Total earning assets		6,654,658		89,456	5.38			4,922,275		59,999	4.88
Nonearning assets		502,848						256,723
Total assets	$	7,157,506					$	5,178,998
INTEREST-BEARING LIABILITIES
Time deposits	$	844,165	$	6,834	3.24	%	$	782,861	$	6,825	3.49	%
Brokered time deposits		0		0	0.00			48,094		527	4.38
Savings deposits		1,966,024		10,060	2.05			1,177,080		4,566	1.55
Demand deposits - interest bearing		1,588,407		8,569	2.16			1,431,878		8,454	2.36
Total interest-bearing deposits		4,398,596		25,463	2.32			3,439,913		20,372	2.37
Short term borrowings		401,000		3,901	3.89			150,022		1,681	4.48
Long term borrowings		94,513		1,216	5.15			86,506		1,006	4.65
Total borrowed funds		495,513		5,117	4.13			236,528		2,687	4.54
Total interest-bearing liabilities		4,894,109		30,580	2.50			3,676,441		23,059	2.51
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits - noninterest bearing		1,408,961						1,007,534
Other liabilities		73,804						52,467
Stockholders' equity		780,632						442,556
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	7,157,506					$	5,178,998
Net interest income and interest rate spread			$	58,876	2.88	%			$	36,940	2.37	%
Net interest margin					3.54	%					3.00	%
(1) Interest and yields are calculated on a tax-equivalent basis where applicable.
(2) For 2026, adjustments of $125,000 and $809,000, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2025, adjustments of $110,000 and $523,000, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances.

	For the Nine Months Ended						For the Nine Months Ended
	September 30, 2026						September 30, 2025
	AVERAGE				YIELD/		AVERAGE				YIELD/
	BALANCE		INTEREST (1)		RATE (1)		BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	4,466,028	$	202,384	6.04	%	$	3,282,794	$	142,683	5.80	%
Taxable securities		1,183,247		24,942	2.81			1,137,393		21,946	2.57
Tax-exempt securities (2)		459,131		12,358	3.59			368,209		8,785	3.18
Other investments		57,038		2,195	5.13			41,760		1,462	4.67
Federal funds sold and other		114,457		2,428	2.83			70,407		1,405	2.66
Total earning assets		6,279,901		244,307	5.19			4,900,563		176,281	4.80
Nonearning assets		437,959						243,133
Total assets	$	6,717,860					$	5,143,696
INTEREST-BEARING LIABILITIES
Time deposits	$	852,342	$	20,675	3.23	%	$	751,144	$	20,041	3.56	%
Brokered time deposits		0		0	0.00			95,634		3,112	4.34
Savings deposits		1,805,618		26,286	1.94			1,146,098		12,861	1.50
Demand deposits - interest bearing		1,573,823		24,927	2.11			1,421,764		24,314	2.28
Total interest-bearing deposits		4,231,783		71,888	2.27			3,414,640		60,328	2.36
Short term borrowings		345,770		9,910	3.82			168,480		5,634	4.46
Long term borrowings		92,677		3,392	4.88			86,358		2,987	4.61
Total borrowed funds		438,447		13,302	4.05			254,838		8,621	4.51
Total interest-bearing liabilities		4,670,230		85,190	2.43			3,669,478		68,949	2.51
NONINTEREST-BEARING LIABILITIES
AND STOCKHOLDERS' EQUITY
Demand deposits - noninterest bearing	$	1,288,072						992,824
Other liabilities		51,050						54,014
Stockholders' equity		708,508						427,380
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$	6,717,860					$	5,143,696
Net interest income and interest rate spread			$	159,117	2.76	%			$	107,332	2.29	%
Net interest margin					3.38	%					2.92	%
(1) Interest and yields are calculated on a tax-equivalent basis where applicable.
(2) For 2026, adjustments of 340,000 and $2.2 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2025, adjustments of $322,000 and $1.6 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances.

Reconciliation of Total Assets to Tangible Assets	For the Three Months Ended															For the Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2026			2026			2026			2025			2025			2026			2025
Total Assets	$	7,119,363		$	7,140,884		$	7,175,476		$	5,245,870		$	5,235,575		$	7,119,363		$	5,235,575
Less Goodwill and other intangibles		306,018			307,000			308,463			185,301			186,013			306,018			186,013
Tangible Assets	$	6,813,345		$	6,833,884		$	6,867,013		$	5,060,569		$	5,049,562		$	6,813,345		$	5,049,562
Average Assets		7,157,506			7,119,745			5,862,096			5,225,497			5,178,998			6,717,860			5,143,696
Less average Goodwill and other intangibles		306,603			307,881			204,198			186,844			186,479			273,269			187,207
Average Tangible Assets	$	6,850,903		$	6,811,864		$	5,657,898		$	5,038,653		$	4,992,519		$	6,444,591		$	4,956,489
Reconciliation of Common Stockholders' Equity to Tangible Common Equity	For the Three Months Ended															For the Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2026			2026			2026			2025			2025			2026			2025
Stockholders' Equity	$	716,485		$	783,952		$	766,890		$	485,725		$	465,949		$	716,485		$	465,949
Less Goodwill and other intangibles		306,018			307,000			308,463			185,301			186,013			306,018			186,013
Tangible Common Equity	$	410,467		$	476,952		$	458,427		$	300,424		$	279,936		$	410,467		$	279,936
Average Stockholders' Equity		780,632			779,455			563,048			481,061			442,556			708,508			427,380
Less average Goodwill and other intangibles		306,603			307,881			204,198			186,844			186,479			273,269			187,207
Average Tangible Common Equity	$	474,029		$	471,574		$	358,850		$	294,217		$	256,077		$	435,239		$	240,173
Reconciliation of Net Income, Less Merger and Certain Items	For the Three Months Ended															For the Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2026			2026			2026			2025			2025			2026			2025
Net income	$	14,535		$	23,035		$	16,264		$	14,638		$	12,461		$	53,834		$	39,949
System conversion / Acquisition related costs - after tax		4,840			1,365			3,418			398			2,467			9,625			2,467
Employee severence - after tax		474			0			0			0			0			474			0
Net loss (gain) on asset/security sales - after tax		8,170			13			22			113			760			8,206			1,680
Net income - Adjusted	$	28,019		$	24,413		$	19,704		$	15,149		$	15,688		$	72,139		$	44,097
Diluted EPS excluding merger and certain items	$	0.47		$	0.41		$	0.44		$	0.40		$	0.42		$	1.32		$	1.17
Return on Average Assets excluding system conversion, merger and certain items (Annualized)		1.57	%		1.37	%		1.37	%		1.16	%		1.21	%		1.43	%		1.14	%
Return on Average Equity excluding system conversion, merger and certain items (Annualized)		14.36	%		12.53	%		14.22	%		12.60	%		14.18	%		13.58	%		13.76	%
Return on Average Tangible Equity excluding system conversion, merger costs and certain items (Annualized)		23.64	%		20.71	%		22.31	%		20.60	%		24.51	%		22.10	%		24.48	%
Efficiency ratio excluding certain items	For the Three Months Ended															For the Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2026			2026			2026			2025			2025			2026			2025
Net interest income, tax equated	$	58,876		$	56,953		$	43,295		$	37,653		$	36,940		$	159,124		$	107,332
Noninterest income		7,927			14,413			13,688			12,097			11,430			36,027			34,032
Net loss (gain) on asset/security sales		10,342			17			28			143			962			10,387			2,127
Net interest income and noninterest income adjusted		77,145			71,383			57,011			49,893			49,332			205,538			143,491
Noninterest expense less intangible amortization		45,428			39,679			36,453			28,368			30,961			121,559			85,193
Employee severence		600			0			0			0			0			600			0
System conversion / Acquisition related costs		6,106			1,695			3,981			925			3,123			11,782			3,123
Noninterest expense adjusted		38,722			37,984			32,472			27,443			27,838			109,177			82,070
Efficiency ratio excluding certain items		50.19	%		53.21	%		56.96	%		55.00	%		56.43	%		53.12	%		57.20	%
Net interest margin excluding acquisition marks and PPP interest and fees	For the Three Months Ended															For the Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2026			2026			2026			2025			2025			2026			2025
Net interest income, tax equated	$	58,876		$	56,953		$	43,295		$	37,653		$	36,940		$	159,117		$	107,332
Acquisition marks		2,544			2,658			1,817			1,894			1,677			7,019			5,559
Adjusted and annualized net interest income		225,328			217,180			165,912			143,036			141,052			202,797			135,697
Average earning assets		6,654,658			6,626,548			5,546,319			4,937,016			4,922,275			6,279,901			4,900,563
Less PPP average balances		-			27			69			87			89			32			98
Adjusted average earning assets		6,654,658			6,626,521			5,546,250			4,936,929			4,922,186			6,279,869			4,900,465
Net interest margin excluding marks and PPP interest and fees		3.39	%		3.28	%		2.99	%		2.90	%		2.87	%		3.23	%		2.77	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261027730049/en/

Kevin J. Helmick, President and CEO
20 South Broad Street, P.O. Box 555
Canfield, OH 44406
330.533.3341
Email: exec@farmersbankgroup.com

Source: Farmers National Banc Corp.

Key Terms

non-gaap financial

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

net interest margin financial

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

cecl financial

An accounting standard that requires banks and other lenders to estimate and record expected credit losses for loans and similar financial assets up front, based on historical experience, current conditions and reasonable forecasts. It matters to investors because it changes how much a firm must set aside as a loss reserve, which directly affects reported profits, capital levels and perceived financial strength—think of it as stocking a reserve for future bad loans before the rain starts.

subordinated notes financial

Subordinated notes are loans companies issue that rank below other debts for repayment, meaning holders get paid only after higher-priority creditors if the issuer runs into trouble. Because they act like being farther back in line at a buffet, they usually offer higher interest to compensate for greater risk, so investors watch them for potential higher returns but also increased chance of loss and sensitivity to the issuer’s financial health.