Farmers National Banc Corp. Reports Solid Results for Second Quarter of 2026

News Details Company Release - 7/22/2026 8:00 AM ET 174 consecutive quarters of profitability EPS was $0.39 for the quarter, $0.41 excluding acquisition and core conversion costs (non-GAAP) Non-performing loans declined $15.2 million, or 25.4%, during the quarter Commercial lending fundings accelerated significantly during the second quarter, with approximately $175.0 million in fundings, representing an 181% increase over the first quarter Unfunded commercial balances expanded by approximately $40.0 million, or 9%, since the end of March, reflecting continued growth in committed business and lending activity Net interest margin increased to 3.44% in the second quarter of 2026 from 3.12% in the first quarter of 2026 and 2.91% in the second quarter of 2025 Efficiency ratio was 55.6% in the second quarter of 2026, 53.2% excluding acquisition/core conversion costs (non-GAAP) Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today reported net income of $23.0 million, or $0.39 per diluted share, for the second quarter of 2026 compared to $13.9 million, or $0.37 per diluted share, for the second quarter of 2025. Net income in the second quarter of 2026 included $1.7 million of expense related to the March 2, 2026 acquisition of Middlefield Banc Corp. (Middlefield) and core conversion costs. Excluding these items (non-GAAP), adjusted net income for the second quarter of 2026 was $24.4 million, or $0.41 per diluted share. Kevin J. Helmick, President and CEO, stated: “I am extremely pleased with the accelerated commercial fundings of $175 million in the second quarter as the team continues to focus on consistency in this area. We also made meaningful progress integrating the March 2026 Middlefield acquisition during the quarter and preparing for our core technology conversion, which remains on track for completion late in the third quarter. These initiatives are important components of our ongoing investment to build a stronger, more efficient and increasingly scalable community banking platform. As we bring our teams, systems and capabilities together, we believe we are strengthening the foundation of our business and enhancing our ability to serve customers across our growing Ohio and Pennsylvania markets.” Balance Sheet Total assets were $7.14 billion at June 30, 2026, compared to $7.18 billion at March 31, 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 at the date of closing. Total loans, net of allowance, decreased to $4.72 billion at June 30, 2026, from $4.75 billion at March 31, 2026, and $3.27 billion at December 31, 2025. The increase since December was due to Middlefield which added $1.49 billion in total loans at the date of closing. The decline from March was due to heavier than expected commercial loan payoffs from the Middlefield portfolio and a decline in non-performing loans. The Company expects the payoffs to return to normal levels in the third quarter. Securities available for sale decreased slightly to $1.47 billion at June 30, 2026, compared to $1.48 billion at March 31, 2026, and $1.34 billion at December 31, 2025. Middlefield added $152.8 million to securities available for sale. 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 $5.83 billion at June 30, 2026, compared to $5.92 billion at March 31, 2026, and $4.34 billion at December 31, 2025. The increase since December was primarily due to Middlefield, which added $1.49 billion in deposits at the time of closing. The decline since March was primarily due to seasonal factors associated with public funds and the purposeful shrinkage of certain non-core deposits acquired in the Middlefield transaction. Total stockholders’ equity increased to $784.0 million at June 30, 2026, from $766.9 million at March 31, 2026, and $485.7 million at December 31, 2025. The increase since December was primarily driven by the acquisition of Middlefield while the increase since March was primarily driven by earnings offset by dividends paid to shareholders. Credit Quality Non-performing loans declined to $44.6 million at June 30, 2026, from $59.9 million at March 31, 2026 and $26.2 million at December 31, 2025. The increase from December was due to the Middlefield acquisition while the decrease from March was due to strong workout efforts in the second quarter. Nonperforming loans to total loans were 0.93% at June 30, 2026, compared to 1.25% at March 31, 2026, and 0.79% at December 31, 2025. Loans 30-89 days delinquent were $18.9 million at June 30, 2026, or 0.40% of total loans, compared to $14.7 million at March 31, 2026, and $16.9 million at December 31, 2025. The provision for credit losses and unfunded commitments was $2.4 million in the second quarter of 2026 compared to a provision for credit losses of $3.5 million in the second quarter of 2025. Annualized net charge-offs as a percentage of average loans were 0.30% in the second quarter of 2026, compared to 0.07% in the second quarter of 2025. The increase in net charge-offs was associated with the resolution of non-performing loans, but most of the net charge-offs came from loans that carried specific reserves the cost of which had been recognized in prior periods. The allowance for credit losses to total loans was 1.12% at June 30, 2026, 1.14% at March 31, 2026, and 1.11% at December 31, 2025. Net Interest Income Net interest income increased to $56.0 million in the second quarter of 2026, compared to $34.9 million in the second quarter of 2025. Average interest earning assets increased to $6.63 billion in the second quarter of 2026 compared to $4.89 billion in the second quarter of 2025. The increase was primarily driven by the acquisition of Middlefield. Net interest margin improved to 3.44% in the second quarter of 2026 compared to 2.91% in the second quarter of 2025. The year-over-year increase in net interest margin was due to the acquisition and higher yields on earning assets and lower funding costs on interest bearing liabilities. In addition, the Company saw greater accretion of loan marks in the second quarter associated with the payoff of Middlefield loan balances mentioned earlier. The Company also recognized a $1.0 million prepayment penalty from the payoff of one of the Middlefield commercial loans. The Company expects the net interest margin to settle back into a range of approximately 3.34% to 3.37% in the third quarter of 2026. The yield on interest earning assets increased from 4.77% in the second quarter of 2025 to 5.25% in the second quarter of 2026, while the cost of interest-bearing liabilities declined from 2.49% in the second quarter of 2025 to 2.44% in the second quarter of 2026. Excluding acquisition marks, non-GAAP, the Company’s net interest margin was 3.28% in the second quarter of 2026, and 2.77% in the second quarter of 2025. Noninterest Income Noninterest income increased to $14.4 million in the second quarter of 2026 from $12.1 million in the second quarter of 2025. The increase was driven by the Middlefield acquisition and continued growth in the Company’s wealth lines of business. Service charge income was $2.4 million in the second quarter of 2026 compared to $1.7 million in the second quarter of 2025 primarily due to the acquisition. Bank owned life insurance income increased to $1.4 million in the second quarter of 2026 compared to $832,000 in the second quarter of 2025. Death claims were higher by $271,000 in 2026 compared to 2025 and the addition of Middlefield was primarily responsible for the difference. Trust fees were $3.1 million for the second quarter of 2026 up from $2.6 million in the second quarter of 2025 as continued growth in this business unit continued to drive revenue. Insurance commissions declined to $1.5 million in the second quarter of 2026 from $1.8 million in the second quarter of 2025. During the second quarter of 2025, the Company recognized $329,000 in revenue sharing associated with its BOLI purchase in the first quarter of 2025. Investment commissions totaled $1.0 million for the second quarter of 2026 compared to $721,000 for the second quarter of 2025. The increase was primarily due to the addition of Middlefield and the continued additions of investment representatives to the program. Debit card income increased to $2.6 million in the second quarter of 2026 from $2.0 million in the second quarter of 2025. The increase was driven by the Middlefield acquisition. Other noninterest income declined to $826,000 in the second quarter of 2026 compared to $1.2 million in the second quarter of 2025 primarily due to lower SBIC income in 2026. Noninterest Expense Noninterest expense increased to $40.9 million in the second quarter of 2026 from $27.2 million in the second quarter of 2025 primarily as a result of the Middlefield acquisition and the recognition of $1.7 million in acquisition and core conversion costs in the second quarter of 2026. Many of the categories of expense discussed below will begin to see a decline in the second half of the year after the Company completes its anticipated system conversion in August of 2026. Salaries and employee benefits increased to $21.3 million in the second quarter of 2026 from $14.7 million in the second quarter of 2025. The increase was primarily driven by annual raises and the Middlefield acquisition. Occupancy and equipment expenses increased to $5.9 million in the second quarter of 2026, an increase of $1.8 million from the second quarter of 2025, primarily as result of the acquisition. Professional fees increased to $1.4 million in the second quarter of 2026 from $1.0 million in the second quarter of 2025. The increase was primarily driven by the Middlefield acquisition. FDIC insurance and state and local taxes were $1.9 million in the second quarter of 2026 compared to $1.3 million in the second quarter of 2025. The increase was due to the acquisition and increased franchise tax from higher levels of capital year-over-year. Core processing expense increased to $2.3 million in the second quarter of 2026 compared to $1.4 million in the second quarter of 2025. The increase was due to the acquisition and a lower level of service credits in 2026. Other noninterest expense increased by $1.0 million to $4.5 million in the second quarter of 2026 primarily as a result of the acquisition and timing issues. Liquidity The Company had access to an additional $608.5 million in FHLB borrowing capacity at June 30, 2026, along with $415.3 million in available for sale securities that are available for pledging. The Company’s loan to deposit ratio was 81.9% at June 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 83 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 June 30, 2026, are $5.1 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 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 SubsidiariesConsolidated Financial Highlights(Amounts in thousands, except per share results) UnauditedConsolidated Statements of Income For the Three Months Ended For the Six Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, Percent 2026 2026 2025 2025 2025 2026 2025 Change Total interest income $ 86,094 $ 67,117 $ 59,418 $ 59,366 $ 57,702 $ 153,209 $ 115,007 33.2 % Total interest expense 30,062 24,549 22,398 23,059 22,781 54,610 45,891 19.0 % Net interest income 56,032 42,568 37,020 36,307 34,921 98,599 69,116 42.7 % Provision (credit) for credit losses 2,437 (1,034 ) 2,306 1,419 3,548 1,403 3,344 -58.0 % Noninterest income 14,413 13,688 12,098 11,430 12,122 28,100 22,603 24.3 % System conversion / Acquisition related costs 1,695 3,981 925 3,123 0 5,677 0 0.0 % Other expense 39,179 33,337 28,153 28,556 27,175 72,514 55,701 30.2 % Income before income taxes 27,134 19,972 17,734 14,639 16,320 47,105 32,674 44.2 % Income taxes 4,099 3,708 3,096 2,178 2,410 7,806 5,186 50.5 % Net income $ 23,035 $ 16,264 $ 14,638 $ 12,461 $ 13,910 $ 39,299 $ 27,488 43.0 % Average diluted shares outstanding 59,223 44,874 37,705 37,677 37,622 52,071 37,622 Basic earnings per share 0.39 0.36 0.39 0.33 0.37 0.76 0.73 Diluted earnings per share 0.39 0.36 0.39 0.33 0.37 0.76 0.73 Cash dividends per share 0.17 0.17 0.17 0.17 0.17 0.34 0.34 Performance RatiosNet Interest Margin (Annualized) 3.44 % 3.12 % 3.05 % 3.00 % 2.91 % 3.29 % 2.88 % Efficiency Ratio (Tax equivalent basis) 55.60 % 63.97 % 57.11 % 62.66 % 56.66 % 59.32 % 58.12 % Efficiency Ratio (Tax equivalent basis) excluding core conversion, acquisition costs and other extraordinary items (b) 53.21 % 56.96 % 55.00 % 56.43 % 55.66 % 54.87 % 56.83 % Return on Average Assets (Annualized) 1.29 % 1.11 % 1.12 % 0.96 % 1.08 % 1.21 % 1.07 % Return on Average Equity (Annualized) 11.82 % 11.55 % 12.17 % 11.26 % 13.08 % 11.70 % 13.10 % Other Performance Ratios (Non-GAAP)Return on Average Tangible Assets 1.35 % 1.15 % 1.16 % 1.00 % 1.13 % 1.26 % 1.11 % Return on Average Tangible Equity 19.54 % 18.13 % 19.90 % 19.46 % 23.37 % 18.92 % 23.69 % Consolidated Statements of Financial Condition June 30, March 31, Dec. 31, Sept. 30, June 30, 2026 2026 2025 2025 2025 AssetsCash and cash equivalents $ 164,754 $ 186,083 $ 92,357 $ 92,345 $ 90,740 Debt securities available for sale 1,473,698 1,484,198 1,343,457 1,301,766 1,274,899 Other investments 60,539 54,858 45,397 44,245 42,410 Loans held for sale 2,862 1,919 1,516 4,975 2,174 Loans 4,776,477 4,800,064 3,304,713 3,337,780 3,303,359 Less allowance for credit losses 53,285 54,684 36,811 39,528 38,563 Net Loans 4,723,192 4,745,380 3,267,902 3,298,252 3,264,796 Other assets 715,839 703,038 495,241 493,992 503,409 Total Assets $ 7,140,884 $ 7,175,476 $ 5,245,870 $ 5,235,575 $ 5,178,428 Liabilities and Stockholders' EquityDepositsNoninterest-bearing $ 1,368,145 $ 1,334,021 $ 994,122 $ 994,604 $ 995,865 Interest-bearing 4,462,969 4,587,364 3,348,656 3,405,911 3,325,564 Brokered time deposits 0 0 0 0 74,988 Total deposits 5,831,114 5,921,385 4,342,778 4,400,515 4,396,417 Other interest-bearing liabilities 455,374 435,108 367,733 321,581 289,428 Other liabilities 70,444 52,093 49,634 47,530 54,835 Total liabilities 6,356,932 6,408,586 4,760,145 4,769,626 4,740,680 Stockholders' Equity 783,952 766,890 485,725 465,949 437,748 Total Liabilitiesand Stockholders' Equity $ 7,140,884 $ 7,175,476 $ 5,245,870 $ 5,235,575 $ 5,178,428 Period-end shares outstanding 59,233 59,215 37,653 37,647 37,642 Book value per share $ 13.24 $ 12.95 $ 12.90 $ 12.38 $ 11.63 Tangible book value per share (Non-GAAP)* 8.05 7.74 7.98 7.44 6.67 * Tangible book value per share is calculated by dividing tangible common equity by outstanding shares For the Three Months Ended For the Six Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, Capital and Liquidity 2026 2026 2025 2025 2025 2026 2025 Common Equity Tier 1 Capital Ratio (a) 11.96 % 11.70 % 12.02 % 11.62 % 11.56 % Total Risk Based Capital Ratio (a) 14.83 % 14.63 % 15.46 % 15.08 % 15.04 % Tier 1 Risk Based Capital Ratio (a) 12.46 % 12.19 % 12.51 % 12.10 % 12.05 % Tier 1 Leverage Ratio (a) 9.38 % 11.21 % 8.92 % 8.75 % 8.67 % Equity to Asset Ratio 10.98 % 10.69 % 9.26 % 8.90 % 8.45 % Tangible Common Equity Ratio (b) 6.98 % 6.68 % 5.94 % 5.54 % 5.03 % Net Loans to Assets 66.14 % 66.13 % 62.29 % 63.00 % 63.05 % Loans to Deposits 81.91 % 81.06 % 76.10 % 75.85 % 75.14 % Asset QualityNon-performing loans $ 44,636 $ 59,854 $ 26,215 $ 35,344 $ 27,819 Non-performing assets 44,827 59,977 26,370 35,519 28,052 Loans 30 - 89 days delinquent 18,869 14,700 16,947 16,083 17,727 Charged-off loans 3,803 729 5,192 869 748 4,532 1,446 Recoveries 170 285 295 333 176 455 538 Net Charge-offs 3,633 444 4,897 536 572 4,077 908 Annualized Net Charge-offs to Average Net Loans 0.30 % 0.05 % 0.59 % 0.07 % 0.07 % 0.19 % 0.06 % Allowance for Credit Losses to Total Loans 1.12 % 1.14 % 1.11 % 1.18 % 1.17 % Non-performing Loans to Total Loans 0.93 % 1.25 % 0.79 % 1.06 % 0.84 % Loans 30 - 89 Days Delinquent to Total Loans 0.40 % 0.31 % 0.51 % 0.48 % 0.54 % Allowance to Non-performing Loans 119.38 % 91.36 % 140.42 % 111.84 % 138.62 % Non-performing Assets to Total Assets 0.63 % 0.84 % 0.50 % 0.68 % 0.54 % (a) June 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 June 30, March 31, Dec. 31, Sept. 30, June 30, End of Period Loan Balances 2026 2026 2025 2025 2025 Commercial real estate $ 2,022,733 $ 2,078,421 $ 1,398,116 $ 1,428,583 $ 1,385,162 Commercial 592,431 591,406 340,224 351,213 363,009 Residential real estate 1,230,110 1,219,766 850,300 850,112 849,443 HELOC 360,685 349,656 181,544 176,609 171,312 Consumer 272,890 265,136 257,795 251,557 253,363 Agricultural loans 285,027 284,014 265,565 269,025 270,599 Total, excluding net deferred loan costs $ 4,763,876 $ 4,788,399 $ 3,293,544 $ 3,327,099 $ 3,292,888 For the Three Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, End of Period Customer Deposit Balances 2026 2026 2025 2025 2025 Noninterest-bearing demand $ 1,368,145 $ 1,334,021 $ 994,122 $ 994,604 $ 995,866 Interest-bearing demand 1,626,459 1,698,780 1,377,520 1,443,422 1,388,596 Money market 1,397,397 1,395,660 795,631 761,788 748,770 Savings 560,710 576,089 408,743 410,165 416,795 Certificate of deposit 878,402 916,835 766,762 790,536 771,403 Total customer deposits $ 5,831,113 $ 5,921,385 $ 4,342,778 $ 4,400,515 $ 4,321,430 Memo: Public funds included in above numbers $ 989,604 $ 1,056,571 $ 773,896 $ 867,253 $ 801,561 For the Three Months Ended For the Six Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, Noninterest Income 2026 2026 2025 2025 2025 2026 2025 Service charges on deposit accounts $ 2,434 $ 1,966 $ 1,831 $ 1,874 $ 1,749 $ 4,400 $ 3,507 Bank owned life insurance income, including death benefits 1,401 1,492 891 852 832 $ 2,893 1,642 Trust fees 3,089 3,030 3,079 2,745 2,596 $ 6,119 5,237 Insurance agency commissions 1,485 1,683 1,567 1,395 1,828 $ 3,168 3,569 Security gains (losses), including fair value changes for equity securities 22 (18 ) (7 ) (927 ) 36 $ 4 (1,278 ) Retirement plan consulting fees 954 886 1,009 1,060 783 $ 1,840 1,581 Investment commissions 1,044 871 706 658 721 $ 1,915 1,250 Net gains on sale of loans 398 380 436 559 329 $ 778 655 Other mortgage banking fee income (loss), net 199 477 106 192 27 $ 676 174 Debit card and EFT fees 2,561 2,023 1,956 2,068 2,017 $ 4,584 3,882 Other noninterest income 826 898 523 954 1,204 $ 1,723 2,384 Total Noninterest Income $ 14,413 $ 13,688 $ 12,097 $ 11,430 $ 12,122 $ 28,100 $ 22,603 For the Three Months Ended For the Six Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, Noninterest Expense 2026 2026 2025 2025 2025 2026 2025 Salaries and employee benefits $ 21,312 $ 18,511 $ 15,397 $ 15,992 $ 14,722 $ 39,823 $ 30,888 Occupancy and equipment 5,935 5,126 4,456 4,370 4,119 $ 11,060 8,258 FDIC insurance and state and local taxes 1,933 1,603 925 1,212 1,262 $ 3,536 2,524 Professional fees 1,357 1,112 1,179 990 1,026 $ 2,469 2,223 System conversion / Merger related costs 1,695 3,981 925 3,123 0 $ 5,676 0 Advertising 627 544 449 466 454 $ 1,171 910 Intangible amortization 1,195 865 711 718 735 $ 2,060 1,469 Core processing charges 2,327 1,750 1,391 1,412 1,401 $ 4,077 2,798 Other noninterest expenses 4,493 3,826 3,646 3,396 3,456 $ 8,319 6,631 Total Noninterest Expense $ 40,874 $ 37,318 $ 29,079 $ 31,679 $ 27,175 $ 78,191 $ 55,701 Average Balance Sheets and Related Yields and Rates(Dollar Amounts in Thousands)Three Months EndedThree Months EndedJune 30, 2026June 30, 2025AVERAGEYIELD/AVERAGEYIELD/BALANCEINTEREST (1)RATE (1)BALANCEINTEREST (1)RATE (1)EARNING ASSETSLoans (2) $ 4,776,409 $ 73,087 6.12 % $ 3,274,394 $ 47,160 5.76 % Taxable securities 1,179,497 7,874 2.67 1,141,799 7,384 2.59 Tax-exempt securities (2) 487,020 4,475 3.68 364,531 2,900 3.18 Other investments 56,122 692 4.93 40,206 462 4.60 Federal funds sold and other 127,500 887 2.78 65,841 429 2.61 Total earning assets 6,626,548 87,015 5.25 4,886,771 58,335 4.77 Nonearning assets 493,197 245,890 Total assets $ 7,119,745 $ 5,132,661 INTEREST-BEARING LIABILITIESTime deposits $ 900,746 $ 7,212 3.20 % $ 751,828 $ 6,584 3.50 % Brokered time deposits 0 0 0.00 96,461 1,047 4.34 Savings deposits 1,955,160 9,719 1.99 1,145,277 4,284 1.50 Demand deposits - interest bearing 1,684,213 9,054 2.15 1,440,090 8,325 2.31 Total interest-bearing deposits 4,540,119 25,985 2.29 3,433,656 20,240 2.36 Short term borrowings 302,505 2,874 3.80 137,725 1,536 4.46 Long term borrowings 94,242 1,203 5.11 86,354 1,005 4.66 Total borrowed funds 396,747 4,077 4.11 224,079 2,541 4.54 Total interest-bearing liabilities 4,936,866 30,062 2.44 3,657,735 22,781 2.49 NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITYDemand deposits - noninterest bearing 1,349,492 992,990 Other liabilities 53,932 56,687 Stockholders' equity 779,455 425,249 TOTAL LIABILITIES ANDSTOCKHOLDERS' EQUITY $ 7,119,745 $ 5,132,661 Net interest income and interest rate spread $ 56,953 2.81 % $ 35,554 2.28 % Net interest margin 3.44 % 2.91 % (1) Interest and yields are calculated on a tax-equivalent basis where applicable.(2) For 2026, adjustments of $110,000 and $811,000, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2025, adjustments of $110,000 and $524,000, 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 Six Months EndedFor the Six Months EndedJune 30, 2026June 30, 2025AVERAGEYIELD/AVERAGEYIELD/BALANCEINTEREST (1)RATE (1)BALANCEINTEREST (1)RATE (1)EARNING ASSETSLoans (2) $ 4,296,382 $ 128,301 5.97 % $ 3,268,186 $ 93,970 5.75 % Taxable securities 1,178,346 15,647 2.66 1,138,707 14,480 2.54 Tax-exempt securities (2) 445,534 7,890 3.54 370,770 5,890 3.18 Other investments 53,933 1,453 5.39 42,177 1,003 4.76 Federal funds sold and other 115,222 1,568 2.72 69,687 939 2.69 Total earning assets 6,089,417 154,859 5.09 4,889,527 116,282 4.76 Nonearning assets 404,977 236,226 Total assets $ 6,494,394 $ 5,125,753 INTEREST-BEARING LIABILITIESTime deposits $ 856,498 $ 13,841 3.23 % $ 739,103 $ 13,216 3.58 % Brokered time deposits 0 0 0.00 119,798 2,585 4.32 Savings deposits 1,724,087 16,226 1.88 1,130,350 8,296 1.47 Demand deposits - interest bearing 1,566,410 16,357 2.09 1,412,543 15,860 2.25 Total interest-bearing deposits 4,146,995 46,424 2.24 3,401,794 39,957 2.35 Short term borrowings 317,696 6,009 3.78 177,862 3,954 4.45 Long term borrowings 91,744 2,177 4.75 86,282 1,980 4.59 Total borrowed funds 409,440 8,186 4.00 264,144 5,934 4.49 Total interest-bearing liabilities 4,556,435 54,610 2.40 3,665,938 45,891 2.50 NONINTEREST-BEARING LIABILITIESAND STOCKHOLDERS' EQUITYDemand deposits - noninterest bearing $ 1,226,626 985,347 Other liabilities 39,484 54,802 Stockholders' equity 671,849 419,666 TOTAL LIABILITIES ANDSTOCKHOLDERS' EQUITY $ 6,494,394 $ 5,125,753 Net interest income and interest rate spread $ 100,249 2.69 % $ 70,391 2.26 % Net interest margin 3.29 % 2.88 % (1) Interest and yields are calculated on a tax-equivalent basis where applicable.(2) For 2026, adjustments of $215,000 and $1.4 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2025, adjustments of $212,000 and $1.1 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 Six Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Total Assets $ 7,140,884 $ 7,175,476 $ 5,245,870 $ 5,235,575 $ 5,178,428 $ 7,140,884 $ 5,178,428 Less Goodwill and other intangibles 307,000 308,463 185,301 186,013 186,731 307,000 186,731 Tangible Assets $ 6,833,884 $ 6,867,013 $ 5,060,569 $ 5,049,562 $ 4,991,697 $ 6,833,884 $ 4,991,697 Average Assets 7,119,745 5,862,096 5,225,497 5,178,998 5,132,661 6,494,394 5,125,753 Less average Goodwill and other intangibles 307,881 204,198 186,844 186,479 187,209 256,325 187,576 Average Tangible Assets $ 6,811,864 $ 5,657,898 $ 5,038,653 $ 4,992,519 $ 4,945,452 $ 6,238,069 $ 4,938,177 Reconciliation of Common Stockholders' Equity to Tangible Common Equity For the Three Months Ended For the Six Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Stockholders' Equity $ 783,952 $ 766,890 $ 485,725 $ 465,949 $ 437,748 $ 783,952 $ 437,748 Less Goodwill and other intangibles 307,000 308,463 185,301 186,013 186,731 307,000 186,731 Tangible Common Equity $ 476,952 $ 458,427 $ 300,424 $ 279,936 $ 251,017 $ 476,952 $ 251,017 Average Stockholders' Equity 779,455 563,048 481,061 442,556 425,249 671,849 419,666 Less average Goodwill and other intangibles 307,881 204,198 186,844 186,479 187,209 256,325 187,576 Average Tangible Common Equity $ 471,574 $ 358,850 $ 294,217 $ 256,077 $ 238,040 $ 415,524 $ 232,090 Reconciliation of Net Income, Less Merger and Certain Items For the Three Months Ended For the Six Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Net income $ 23,035 $ 16,264 $ 14,638 $ 12,461 $ 13,910 $ 39,299 $ 27,488 System conversion / Acquisition related costs - after tax 1,365 3,418 398 2,467 0 4,783 0 Net loss (gain) on asset/security sales - after tax 13 22 113 760 (137 ) 36 920 Net income - Adjusted $ 24,413 $ 19,704 $ 15,149 $ 15,688 $ 13,773 $ 44,118 $ 28,408 Diluted EPS excluding merger and certain items $ 0.41 $ 0.44 $ 0.40 $ 0.42 $ 0.37 $ 0.85 $ 0.76 Return on Average Assets excluding system conversion, merger and certain items (Annualized) 1.37 % 1.37 % 1.16 % 1.21 % 1.07 % 1.36 % 1.11 % Return on Average Equity excluding system conversion, merger and certain items (Annualized) 12.53 % 14.22 % 12.60 % 14.18 % 12.96 % 13.13 % 13.54 % Return on Average Tangible Equity excluding system conversion, merger costs and certain items (Annualized) 20.71 % 22.31 % 20.60 % 24.51 % 23.14 % 21.23 % 24.48 % Efficiency ratio excluding certain items For the Three Months Ended For the Six Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Net interest income, tax equated $ 56,953 $ 43,295 $ 37,653 $ 36,940 $ 35,554 $ 100,248 $ 70,391 Noninterest income 14,413 13,688 12,097 11,430 12,122 28,100 22,603 Net loss (gain) on asset/security sales 17 28 143 962 (173 ) 45 1,164 Net interest income and noninterest income adjusted 71,383 57,011 49,893 49,332 47,503 128,393 95,435 Noninterest expense less intangible amortization 39,679 36,453 28,368 30,961 26,440 76,131 54,231 System conversion / Acquisition related costs 1,695 3,981 925 3,123 0 5,677 0 Noninterest expense adjusted 37,984 32,472 27,443 27,838 26,440 70,454 54,231 Efficiency ratio excluding certain items 53.21 % 56.96 % 55.00 % 56.43 % 55.66 % 54.87 % 56.83 % Net interest margin excluding acquisition marks and PPP interest and fees For the Three Months Ended For the Six Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, 2026 2026 2025 2025 2025 2026 2025 Net interest income, tax equated $ 56,953 $ 43,295 $ 37,653 $ 36,940 $ 35,554 $ 100,249 $ 70,391 Acquisition marks 2,658 1,817 1,894 1,677 1,731 4,435 3,882 Adjusted and annualized net interest income 217,180 165,912 143,036 141,052 135,292 191,628 133,018 Average earning assets 6,626,548 5,546,319 4,937,016 4,922,275 4,886,771 6,089,417 4,889,527 Less PPP average balances 27 69 87 89 95 48 103 Adjusted average earning assets 6,626,521 5,546,250 4,936,929 4,922,186 4,886,676 6,089,369 4,889,424 Net interest margin excluding marks and PPP interest and fees 3.28 % 2.99 % 2.90 % 2.87 % 2.77 % 3.15 % 2.72 % 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.