Farmers National Banc Corp. Announces Earnings for Fourth Quarter of 2025

News Details Company Release - 1/28/2026 8:00 AM ET 172 consecutive quarters of profitability Net interest margin increased to 3.05% in the fourth quarter of 2025 from 3.00% in the third quarter of 2025 and 2.72% 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 in 2025, or 3.6% growth Nonperforming loans declined to $26.2 million in the fourth quarter 2025 from $35.3 million in third quarter 2025 Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today announced net income of $14.6 million, or $0.39 per diluted share, for the fourth quarter of 2025 compared to $14.4 million, or $0.38 per diluted share, for the fourth quarter of 2024. Net income for the fourth quarter of 2025 included $925,000 related to merger and core conversion costs and $143,000 in pretax losses for the sale of investment securities and other assets. Excluding these items (non-GAAP), net income for the fourth quarter of 2025 was $15.1 million, or $0.40 per diluted share. 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 $5.25 billion in the fourth quarter of 2025 from $5.24 billion at September 30, 2025 and $5.12 billion at December 31, 2024. Loans declined to $3.30 billion at December 31, 2025 from $3.34 billion at September 30, 2025 but were up $36.4 million from $3.27 billion at December 31, 2024. The decrease from the prior quarter was primarily due to greater payoffs seen in this quarter outpacing originations in the commercial portfolio. Securities available for sale totaled $1.34 billion at December 31, 2025 compared to $1.30 billion as of September 30, 2025, and $1.27 billion at December 31, 2024. The mark to market adjustment has improved by $62.4 million since the beginning of 2025 as the Fed has resumed cutting interest rates. The Company anticipates continued rate volatility in the bond market in 2026, which will continue to affect the value of the portfolio. Total deposits declined to $4.34 billion at December 31, 2025, from $4.40 billion at September 30, 2025 but are up $76.0 million since December 31, 2024. During the fourth quarter of 2025, the Company saw seasonal runoff of public funds totaling $93.4 million. Excluding public funds, the fourth quarter of 2025 saw deposit growth of $35.6 million compared to the third quarter of 2025. For the full year of 2025, excluding brokered CDs, the Company experienced strong deposit growth of $151.0 million, or 3.6%. Total stockholders’ equity increased to $485.7 million at December 31, 2025, from $465.9 million at September 30, 2025, and $406.0 million at December 31, 2024. The increase was primarily due to an improvement in accumulated other comprehensive income along with increased retained earnings. Credit Quality Non-performing loans decreased from $35.3 million at September 30, 2025, to $26.2 million at December 31, 2025, but are up slightly from $22.8 million at December 31, 2024. A single loan relationship totaling $7.3 million that moved into nonaccrual during the third quarter of 2025 paid off during the fourth quarter of 2025. A charge-off of $2.5 million was recognized on the loan prior to the payoff. Nonperforming loans to total loans were 0.79% at December 31, 2025, 1.06% at September 30, 2025, and 0.70% at December 31, 2024. The Company’s loans which were 30-89 days delinquent were $16.9 million at December 31, 2025, or 0.51% of total loans, compared to $16.1 million at September 30, 2025, and $13.0 million at December 31, 2024. The provision for credit losses and unfunded commitments totaled $2.3 million for the fourth quarter of 2025 compared to $295,000 for the fourth quarter of 2024. The provision in the fourth quarter of 2025 was negatively impacted by the charge-off mentioned above. Annualized net charge-offs as a percentage of average loans were 0.59% for the fourth quarter of 2025, compared to 0.07% for the third quarter of 2025 and 0.08% for the fourth quarter of 2024. In addition to the $2.5 million charge-off discussed previously, the Company had an additional $2.0 million charge-off in the fourth quarter that aided in the workout of another troubled relationship. This $2.0 million figure had been specifically reserved in prior periods. The allowance for credit losses to total loans was 1.11% at December 31, 2025 compared to 1.18% at September 30, 2025, and 1.10% at December 31, 2024. Net Interest Income Net interest income was of $37.0 million in the fourth quarter of 2025, compared to $32.7 million in the fourth quarter of 2024. Average interest earning assets increased to $4.94 billion in the fourth quarter of 2025 compared to $4.91 billion in the fourth quarter of 2024. The increase was primarily driven by a $46.4 million increase in average loan balances offset by a decrease in fed funds sold. The net interest margin improved to 3.05% in the fourth quarter of 2025 compared to 3.00% in the third quarter of 2025 and 2.72% in the fourth quarter of 2024. The year-over-year increase in net interest margin was due to higher yields on earning assets and lower funding costs on interest bearing liabilities. The Federal Reserve rate cuts in the back half of 2024 and 2025 have benefitted funding costs, while the lag effects of assets repricing continued to drive earning asset yields higher. The yield on interest earning assets increased from 4.77% in the fourth quarter of 2024 to 4.87% in the fourth quarter of 2025, while the cost of interest-bearing liabilities declined from 2.72% in the fourth quarter of 2024 to 2.43% in the fourth quarter of 2025. With additional cuts to the federal funds rate expected in 2026, the Company expects its net interest margin will continue to expand into 2026 as the Company remains liability sensitive and will benefit from falling interest rates. Excluding acquisition marks and PPP interest, non-GAAP, the Company’s net interest margin was 2.90% in the fourth quarter of 2025, 2.87% in the third quarter of 2025, and 2.56% in the fourth quarter of 2024. Noninterest Income Noninterest income increased to $12.1 million in the fourth quarter of 2025 from $11.4 million in the fourth quarter of 2024. The increase was driven by strong performance across multiple business lines. Bank owned life insurance (BOLI) income increased $278,000 during the fourth quarter of 2025 to $891,000 compared to $613,000 in the fourth quarter of 2024. The Company purchased an additional $15.0 million in policies during the first quarter of 2025 and policy crediting rates have increased over the last twelve months. Trust fees increased by $379,000 to $3.1 million in the fourth quarter of 2025 from $2.7 million in the fourth quarter of 2024. The Company continues to grow this line of business through deeper penetration in its acquired markets. Insurance agency commissions increased from $1.3 million in the fourth quarter of 2024 to $1.6 million in the fourth quarter of 2025. The Company received a one-time commission of $94,000 during the quarter and fixed annuity sales increased $174,000 as strong annuity activity continues. Retirement plan commissions increased to $1.0 million in the fourth quarter of 2025 from $719,000 in the fourth quarter of 2024 primarily due to the acquisition of Crest Retirement Advisors LLC in late December of 2024. Net gains on the sale of loans increased to $436,000 in the fourth quarter of 2025 from $282,000 in the fourth quarter of 2024 due to additional mortgage volume compared to the year ago period. Other mortgage banking income declined $179,000 in the fourth quarter of 2025 compared to the fourth quarter of 2024. This was primarily due to the Company incurring $58,000 mortgage servicing impairment in the fourth quarter of 2025. Debit card income declined $208,000 to $2.0 million in the fourth quarter of 2025 compared to the fourth quarter of 2024 primarily due to slightly lower commission income recognized from Mastercard in 2025 compared to 2024. Other noninterest income declined to $523,000 in the fourth quarter of 2025 compared to $856,000 in the fourth quarter of 2024 due to lower SBIC income. Noninterest Expense Noninterest expense increased to $29.1 million in the fourth quarter of 2025 from $26.2 million in the fourth quarter of 2024. Salaries and employee benefits increased to $15.4 million in the fourth quarter of 2025 from $14.4 million in the fourth quarter of 2024. The increase was primarily driven by annual raises, the acquisition of Crest Retirement in the fourth quarter of 2024 and higher commission expense from increased revenue in the fee-based businesses. Occupancy and equipment expense increased to $4.5 million in the fourth quarter of 2025 from $4.1 million in the fourth quarter of 2024 due to increased maintenance and software costs in 2025. Professional fees increased to $1.2 million in the fourth quarter of 2025 from $785,000 in the fourth quarter of 2024. Legal expenses were low in the fourth quarter of 2024 due to an accrual adjustment. Merger and core conversion expenses were $925,000 in the fourth quarter of 2025 compared to $92,000 in the fourth quarter of 2025. The Company announced the acquisition of Middlefield Banc Corp. in October of 2025 along with its intention to convert its core system to Jack Henry. The merger expense incurred in 2024 was related to the Company’s acquisition of Crest Retirement Advisors LLC. Advertising and marketing expense was down $257,000 from the figure reported for the quarter ended December 31, 2024, primarily due to accrual reductions in the fourth quarter of 2024. Core processing expense increased to $1.4 million for the quarter ended December 31, 2025, from $1.2 million for the quarter ended December 31, 2024. The increase was due to annual increases and timing differences. Liquidity The Company had access to an additional $552.2 million in FHLB borrowing capacity at December 31, 2025, along with $498.5 million in available for sale securities that are available for pledging. The Company’s loan to deposit ratio was 76.1% at December 31, 2025. About Farmers National Banc Corp. Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $5.2 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 62 banking locations in Mahoning, Trumbull, Columbiana, Portage, Stark, Wayne, Medina, Geauga and Cuyahoga Counties in Ohio and Beaver, Butler, Allegheny, Jefferson, Clarion, Venango, Clearfield, Mercer, Elk and Crawford Counties in Pennsylvania, and Farmers Trust Company, which operates trust offices and offers services in the same geographic markets. Total wealth management assets under care at December 31, 2025 are $4.7 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 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 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, 2024 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. 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 SubsidiariesConsolidated Financial Highlights(Amounts in thousands, except per share results) UnauditedConsolidated 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 RatiosNet 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 AssetsCash 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' EquityDepositsNoninterest-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 Liabilitiesand 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 QualityNon-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 ASSETSLoans (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 LIABILITIESTime 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' EQUITYDemand deposits - noninterest bearing 1,014,374 973,788 Other liabilities 49,577 59,792 Stockholders' equity 481,061 428,646 TOTAL LIABILITIES ANDSTOCKHOLDERS' 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 $110,000 and $523,000, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2024, adjustments of $71,000 and $536,000, 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 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 ASSETSLoans (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 LIABILITIESTime 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 LIABILITIESAND STOCKHOLDERS' EQUITYDemand deposits - noninterest bearing $ 998,255 981,115 Other liabilities 52,896 58,134 Stockholders' equity 440,911 407,436 TOTAL LIABILITIES ANDSTOCKHOLDERS' 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 $322,000 and $1.6 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2024, adjustments of $228,000 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 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 % Farmers National Banc Corp. Kevin J. Helmick, President and CEO 20 South Broad Street, P.O. Box 555 Canfield, OH 44406 330.533.3341 Email: [email protected] Source: Farmers National Banc Corp.