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

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 % 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.