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

Farmers National Banc Corp. Reports Solid Results for Second Quarter of 2026 CANFIELD, Ohio--( BUSINESS WIRE)--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.

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

Percent

2026

2025

2026

2025

Change

86,094

67,117

59,418

59,366

57,702

153,209

115,007

33.2

30,062

24,549

22,398

23,059

22,781

54,610

45,891

19.0

56,032

42,568

37,020

36,307

34,921

98,599

69,116

42.7

2,437

(1,034

)

2,306

1,419

3,548

1,403

3,344

-58.0

14,413

13,688

12,098

11,430

12,122

28,100

22,603

24.3

1,695

3,981

925

3,123

5,677

0.0

39,179

33,337

28,153

28,556

27,175

72,514

55,701

30.2

27,134

19,972

17,734

14,639

16,320

47,105

32,674

44.2

4,099

3,708

3,096

2,178

2,410

7,806

5,186

50.5

23,035

16,264

14,638

12,461

13,910

39,299

27,488

43.0

59,223

44,874

37,705

37,677

37,622

52,071

37,622

0.39

0.36

0.39

0.33

0.37

0.76

0.73

0.39

0.36

0.39

0.33

0.37

0.76

0.73

0.17

0.34

3.44

3.12

3.05

3.00

2.91

3.29

2.88

55.60

63.97

57.11

62.66

56.66

59.32

58.12

53.21

56.96

55.00

56.43

55.66

54.87

56.83

1.29

1.11

1.12

0.96

1.08

1.21

1.07

11.82

11.55

12.17

11.26

13.08

11.70

13.10

1.35

1.15

1.16

1.00

1.13

1.26

1.11

19.54

18.13

19.90

19.46

23.37

18.92

23.69

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

164,754

186,083

92,357

92,345

90,740

1,473,698

1,484,198

1,343,457

1,301,766

1,274,899

60,539

54,858

45,397

44,245

42,410

2,862

1,919

1,516

4,975

2,174

4,776,477

4,800,064

3,304,713

3,337,780

3,303,359

53,285

54,684

36,811

39,528

38,563

4,723,192

4,745,380

3,267,902

3,298,252

3,264,796

715,839

703,038

495,241

493,992

503,409

7,140,884

7,175,476

5,245,870

5,235,575

5,178,428

1,368,145

1,334,021

994,122

994,604

995,865

4,462,969

4,587,364

3,348,656

3,405,911

3,325,564

74,988

5,831,114

5,921,385

4,342,778

4,400,515

4,396,417

455,374

435,108

367,733

321,581

289,428

70,444

52,093

49,634

47,530

54,835

6,356,932

6,408,586

4,760,145

4,769,626

4,740,680

783,952

766,890

485,725

465,949

437,748

7,140,884

7,175,476

5,245,870

5,235,575

5,178,428

59,233

59,215

37,653

37,647

37,642

13.24

12.95

12.90

12.38

11.63

8.05

7.74

7.98

7.44

6.67

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

2026

2025

11.96

11.70

12.02

11.62

11.56

14.83

14.63

15.46

15.08

15.04

12.46

12.19

12.51

12.10

12.05

9.38

11.21

8.92

8.75

8.67

10.98

10.69

9.26

8.90

8.45

6.98

6.68

5.94

5.54

5.03

66.14

66.13

62.29

63.00

63.05

81.91

81.06

76.10

75.85

75.14

44,636

59,854

26,215

35,344

27,819

44,827

59,977

26,370

35,519

28,052

18,869

14,700

16,947

16,083

17,727

3,803

729

5,192

869

748

4,532

1,446

170

285

295

333

176

455

538

3,633

444

4,897

536

572

4,077

908

0.30

0.05

0.59

0.07

0.19

0.06

1.12

1.14

1.11

1.18

1.17

0.93

1.25

0.79

1.06

0.84

0.40

0.31

0.51

0.48

0.54

119.38

91.36

140.42

111.84

138.62

0.63

0.84

0.50

0.68

0.54

For the Three Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

2,022,733

2,078,421

1,398,116

1,428,583

1,385,162

592,431

591,406

340,224

351,213

363,009

1,230,110

1,219,766

850,300

850,112

849,443

360,685

349,656

181,544

176,609

171,312

272,890

265,136

257,795

251,557

253,363

285,027

284,014

265,565

269,025

270,599

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,

2026

2025

1,368,145

1,334,021

994,122

994,604

995,866

1,626,459

1,698,780

1,377,520

1,443,422

1,388,596

1,397,397

1,395,660

795,631

761,788

748,770

560,710

576,089

408,743

410,165

416,795

878,402

916,835

766,762

790,536

771,403

5,831,113

5,921,385

4,342,778

4,400,515

4,321,430

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,

2026

2025

2026

2025

2,434

1,966

1,831

1,874

1,749

4,400

3,507

1,401

1,492

891

852

832

2,893

1,642

3,089

3,030

3,079

2,745

2,596

6,119

5,237

1,485

1,683

1,567

1,395

1,828

3,168

3,569

(18

)

(927

)

(1,278

)

954

886

1,009

1,060

783

1,840

1,581

1,044

871

706

658

721

1,915

1,250

398

380

436

559

329

778

655

199

477

106

192

676

174

2,561

2,023

1,956

2,068

2,017

4,584

3,882

826

898

523

954

1,204

1,723

2,384

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,

2026

2025

2026

2025

21,312

18,511

15,397

15,992

14,722

39,823

30,888

5,935

5,126

4,456

4,370

4,119

11,060

8,258

1,933

1,603

925

1,212

1,262

3,536

2,524

1,357

1,112

1,179

990

1,026

2,469

2,223

1,695

3,981

925

3,123

5,676

627

544

449

466

454

1,171

910

1,195

865

711

718

735

2,060

1,469

2,327

1,750

1,391

1,412

1,401

4,077

2,798

4,493

3,826

3,646

3,396

3,456

8,319

6,631

40,874

37,318

29,079

31,679

27,175

78,191

55,701

4,776,409

73,087

6.12

3,274,394

47,160

5.76

1,179,497

7,874

2.67

1,141,799

7,384

2.59

487,020

4,475

3.68

364,531

2,900

3.18

56,122

692

4.93

40,206

462

4.60

127,500

887

2.78

65,841

429

2.61

6,626,548

87,015

5.25

4,886,771

58,335

4.77

493,197

245,890

7,119,745

5,132,661

900,746

7,212

3.20

751,828

6,584

3.50

0.00

96,461

1,047

4.34

1,955,160

9,719

1.99

1,145,277

4,284

1.50

1,684,213

9,054

2.15

1,440,090

8,325

2.31

4,540,119

25,985

2.29

3,433,656

20,240

2.36

302,505

2,874

3.80

137,725

1,536

4.46

94,242

1,203

5.11

86,354

1,005

4.66

396,747

4,077

4.11

224,079

2,541

4.54

4,936,866

30,062

2.44

3,657,735

22,781

2.49

1,349,492

992,990

53,932

56,687

779,455

425,249

7,119,745

5,132,661

56,953

2.81

35,554

2.28

3.44

2.91

4,296,382

128,301

5.97

3,268,186

93,970

5.75

1,178,346

15,647

2.66

1,138,707

14,480

2.54

445,534

7,890

3.54

370,770

5,890

3.18

53,933

1,453

5.39

42,177

1,003

4.76

115,222

1,568

2.72

69,687

939

2.69

6,089,417

154,859

5.09

4,889,527

116,282

4.76

404,977

236,226

6,494,394

5,125,753

856,498

13,841

3.23

739,103

13,216

3.58

0.00

119,798

2,585

4.32

1,724,087

16,226

1.88

1,130,350

8,296

1.47

1,566,410

16,357

2.09

1,412,543

15,860

2.25

4,146,995

46,424

2.24

3,401,794

39,957

2.35

317,696

6,009

3.78

177,862

3,954

4.45

91,744

2,177

4.75

86,282

1,980

4.59

409,440

8,186

4.00

264,144

5,934

4.49

4,556,435

54,610

2.40

3,665,938

45,891

2.50

1,226,626

985,347

39,484

54,802

671,849

419,666

6,494,394

5,125,753

100,249

2.69

70,391

2.26

3.29

2.88

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

2026

2025

7,140,884

7,175,476

5,245,870

5,235,575

5,178,428

7,140,884

5,178,428

307,000

308,463

185,301

186,013

186,731

307,000

186,731

6,833,884

6,867,013

5,060,569

5,049,562

4,991,697

6,833,884

4,991,697

7,119,745

5,862,096

5,225,497

5,178,998

5,132,661

6,494,394

5,125,753

307,881

204,198

186,844

186,479

187,209

256,325

187,576

6,811,864

5,657,898

5,038,653

4,992,519

4,945,452

6,238,069

4,938,177

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

2026

2025

783,952

766,890

485,725

465,949

437,748

783,952

437,748

307,000

308,463

185,301

186,013

186,731

307,000

186,731

476,952

458,427

300,424

279,936

251,017

476,952

251,017

779,455

563,048

481,061

442,556

425,249

671,849

419,666

307,881

204,198

186,844

186,479

187,209

256,325

187,576

471,574

358,850

294,217

256,077

238,040

415,524

232,090

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

2026

2025

23,035

16,264

14,638

12,461

13,910

39,299

27,488

1,365

3,418

398

2,467

4,783

113

760

(137

)

920

24,413

19,704

15,149

15,688

13,773

44,118

28,408

0.41

0.44

0.40

0.42

0.37

0.85

0.76

1.37

1.16

1.21

1.07

1.36

1.11

12.53

14.22

12.60

14.18

12.96

13.13

13.54

20.71

22.31

20.60

24.51

23.14

21.23

24.48

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

2026

2025

56,953

43,295

37,653

36,940

35,554

100,248

70,391

14,413

13,688

12,097

11,430

12,122

28,100

22,603

143

962

(173

)

1,164

71,383

57,011

49,893

49,332

47,503

128,393

95,435

39,679

36,453

28,368

30,961

26,440

76,131

54,231

1,695

3,981

925

3,123

5,677

37,984

32,472

27,443

27,838

26,440

70,454

54,231

53.21

56.96

55.00

56.43

55.66

54.87

56.83

For the Three Months Ended

For the Six Months Ended

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

2026

2025

2026

2025

56,953

43,295

37,653

36,940

35,554

100,249

70,391

2,658

1,817

1,894

1,677

1,731

4,435

3,882

217,180

165,912

143,036

141,052

135,292

191,628

133,018

6,626,548

5,546,319

4,937,016

4,922,275

4,886,771

6,089,417

4,889,527

103

6,626,521

5,546,250

4,936,929

4,922,186

4,886,676

6,089,369

4,889,424

3.28

2.99

2.90

2.87

2.77

3.15

2.72