Farmers National Banc Corp. Announces Results for First Quarter of 2026

Farmers National Banc Corp. Announces Results for First Quarter of 2026 CANFIELD, Ohio--( BUSINESS WIRE)--Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) reported net income of $16.3 million, or $0.36 per diluted share, for the first quarter of 2026 compared to $13.6 million, or $0.36 per diluted share, for the first quarter of 2025. Net income in the first quarter of 2026 included $4.0 million related to the acquisition of Middlefield Banc Corp. (Middlefield) and core conversion costs. Excluding these items (non-GAAP), adjusted net income for the first quarter of 2026 was $20.0 million, or $0.45 per diluted share.

Kevin J. Helmick, President and CEO, stated: “Farmers is off to a solid start in 2026, highlighted by the successful completion of the Middlefield acquisition and continued strength across our core Ohio and Pennsylvania markets. We are focused on successfully integrating Middlefield into our operations and completing our core technology conversion, both of which are expected to be completed in the third quarter of 2026. In addition, we are well positioned to capitalize on our expanded presence in Columbus, Ohio, as a result of recent investments and the Middlefield acquisition. Combined, we believe these actions position Farmers for continued profitable growth and value creation.”

Balance Sheet

Total assets increased to $7.18 billion at March 31, 2026, from $5.25 billion at December 31, 2025, primarily due to the Middlefield acquisition which added $1.82 billion in assets. Total loans, net of allowance, increased to $4.75 billion at March 31, 2026, from $3.27 billion at December 31, 2025. Middlefield added $1.49 billion in total loans at the date of closing.

Securities available for sale increased to $1.48 billion at March 31, 2026, compared to $1.34 billion at December 31, 2025. Middlefield added $152.8 million to the total. The Company anticipates continued rate volatility in the bond market in 2026, which will continue to affect the value of the portfolio.

Total deposits were $5.92 billion at March 31, 2026, an increase of $1.58 billion from December 31, 2025. The increase was primarily due to Middlefield, which added $1.49 billion in deposits, as well as seasonal growth in public funds.

Total stockholders’ equity increased to $766.9 million at March 31, 2026, compared to $485.7 million at December 31, 2025. The increase was primarily driven by the acquisition of Middlefield.

Credit Quality

Non-performing loans increased from $26.2 million at December 31, 2025, to $59.9 million at March 31, 2026. The increase was due to the acquisition of Middlefield. Nonperforming loans to total loans were 1.25% at March 31, 2026 compared to 0.79% at December 31, 2025. The Company’s loans which were 30-89 days delinquent were $14.7 million at March 31, 2026, or 0.31% of total loans, compared to $16.9 million at December 31, 2025.

The provision for credit losses and unfunded commitments was a recovery of $1.0 million in the first quarter of 2026 compared to a recovery of $204,000 in the first quarter of 2025. The provision in the first quarter of 2026 was positively impacted by improvements in qualitative factors in the Company’s CECL model. Annualized net charge-offs as a percentage of average loans were 0.05% in the first quarter of 2026, compared to 0.04% in the first quarter of 2025. The allowance for credit losses to total loans was 1.14% at March 31, 2026, compared to 1.11% at December 31, 2025. With the addition of Middlefield, the Company established a Day 1 allowance for credit losses of $19.3 million for the Middlefield loan balances. This was the primary reason for the increase in the allowance for loan losses to loans ratio in the first quarter.

Net Interest Income

Net interest income increased to $42.6 million in the first quarter of 2026, compared to $34.2 million in the first quarter of 2025. Average interest earning assets increased to $5.55 billion in the first quarter of 2026 compared to $4.89 billion in the first quarter of 2025. The increase was primarily driven by the acquisition of Middlefield. The net interest margin improved to 3.12% in the first quarter of 2026 compared to 2.85% in the first 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. The Company expects the net interest margin to expand by approximately 25 basis points in the second quarter of 2026 as the full impact of the Middlefield acquisition is realized. The yield on interest earning assets increased from 4.74% in the first quarter of 2025 to 4.89% in the first quarter of 2026, while the cost of interest-bearing liabilities declined from 2.52% in the first quarter of 2025 to 2.35% in the first quarter of 2026. Excluding acquisition marks, non-GAAP, the Company’s net interest margin was 2.99% in the first quarter of 2026, and 2.67% in the first quarter of 2025.

Noninterest Income

Noninterest income increased to $13.7 million in the first quarter of 2026 from $10.5 million in the first quarter of 2025. The increase was driven by the Middlefield acquisition, growth in the wealth lines of business and lower losses on the sale of securities. Service charge income increased to $2.0 million in the first quarter of 2026 compared to $1.8 million in the first quarter of 2025 primarily due to the acquisition. Bank owned life insurance income was $1.5 million in the first quarter of 2026 compared to $810,000 in the first quarter of 2025. Death claims were higher by $416,000 in 2026 compared to 2025 and the addition of Middlefield was primarily responsible for the remaining difference. Trust fees increased to $3.0 million in the first quarter of 2026 from $2.6 million in the first quarter of 2025 as the Company continues to show excellent growth in this business unit. Losses on the sale of securities were $18,000 in the first quarter of 2026, down from a loss of $1.3 million in the first quarter of 2025. The Company restructured $23.8 million of securities at the end of the first quarter of 2025 resulting in the loss realized on the sale. Investment commissions increased $342,000 from the first quarter of 2025 to first quarter of 2026 as the Company continued to add investment representatives to the program. Other mortgage banking income was $477,000 in the first quarter of 2026 compared to $147,000 in the first quarter of 2025. This increase was primarily due to the Company recovering $303,000 of mortgage servicing rights impairment in the first quarter of 2026. Other noninterest income declined to $898,000 in the first quarter of 2026 compared to $1.2 million in the first quarter of 2025 primarily due to lower SBIC income in 2026.

Noninterest Expense

Noninterest expense increased to $37.3 million in the first quarter of 2026 from $28.5 million in the first quarter of 2025 primarily as a result of the Middlefield acquisition and the recognition of $4.0 million in acquisition and core conversion costs in the first quarter of 2026. Salaries and employee benefits increased to $18.5 million in the first quarter of 2026 from $16.2 million in the first quarter of 2025. The increase was primarily driven by annual raises and the acquisition. Occupancy and equipment expense increased by $988,000 in the first quarter of 2026 from the first quarter of 2025 primarily as a result of the acquisition and higher building maintenance costs due to more severe winter weather conditions. FDIC insurance and state and local taxes were $1.6 million in the quarter ended March 31, 2026, an increase of $341,000 from the quarter ending March 31, 2025 due to the acquisition and increased franchise tax due to higher levels of capital year-over-year. Core processing expense increased to $1.8 million in the first quarter of 2026 compared to $1.4 million in the first quarter of 2025. The increase was due to the acquisition and a lower level of service credits in 2026. Other noninterest expense increased by $650,000 to $3.8 million in the first quarter of 2026 primarily as a result of the acquisition and timing issues.

Liquidity

The Company had access to an additional $788.9 million in FHLB borrowing capacity at March 31, 2026, along with $446.6 million in available for sale securities that are available for pledging. The Company’s loan to deposit ratio was 81.1% at March 31, 2026.

About Farmers National Banc Corp.

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $7.2 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 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 March 31, 2026 are $4.9 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 Subsidiaries

Consolidated Financial Highlights

(Amounts in thousands, except per share results) Unaudited

2026

2025

67,117

59,418

59,366

57,702

57,305

24,549

22,398

23,059

22,781

23,110

42,568

37,020

36,307

34,921

34,195

(1,034

)

2,306

1,419

3,548

(204

)

13,688

12,098

11,430

12,122

10,481

3,981

925

3,123

33,337

28,153

28,556

27,175

28,526

19,972

17,734

14,639

16,320

16,354

3,708

3,096

2,178

2,410

2,776

16,264

14,638

12,461

13,910

13,578

44,874

37,705

37,677

37,622

37,626

0.36

0.39

0.33

0.37

0.36

0.39

0.33

0.37

0.36

0.17

3.12

3.05

3.00

2.91

2.85

63.97

57.11

62.66

56.66

59.60

56.96

55.00

56.43

55.66

59.57

1.11

1.12

0.96

1.08

1.06

11.55

12.17

11.26

13.08

13.12

1.15

1.16

1.00

1.13

1.10

18.13

19.90

19.46

23.37

24.02

2026

2025

186,083

92,357

92,345

90,740

113,256

1,484,198

1,343,457

1,301,766

1,274,899

1,281,413

54,858

45,397

44,245

42,410

40,334

1,919

1,516

4,975

2,174

2,973

4,800,064

3,304,713

3,337,780

3,303,359

3,251,391

54,684

36,811

39,528

38,563

35,549

4,745,380

3,267,902

3,298,252

3,264,796

3,215,842

703,038

495,241

493,992

503,409

503,222

7,175,476

5,245,870

5,235,575

5,178,428

5,157,040

2026

2025

$186,083

$92,357

$92,345

$90,740

$113,256

1,484,198

1,343,457

1,301,766

1,274,899

1,281,413

54,858

45,397

44,245

42,410

40,334

1,919

1,516

4,975

2,174

2,973

4,800,064

3,304,713

3,337,780

3,303,359

3,251,391

54,684

36,811

39,528

38,563

35,549

4,745,380

3,267,902

3,298,252

3,264,796

3,215,842

703,038

495,241

493,992

503,409

503,222

$7,175,476

$5,245,870

$5,235,575

$5,178,428

$5,157,040

$1,334,021

$994,122

$994,604

$995,865

$979,142

4,587,364

3,348,656

3,405,911

3,325,564

3,342,182

74,988

159,964

5,921,385

4,342,778

4,400,515

4,396,417

4,481,288

435,108

367,733

321,581

289,428

188,275

52,093

49,634

47,530

54,835

58,343

6,408,586

4,760,145

4,769,626

4,740,680

4,727,906

766,890

485,725

465,949

437,748

429,134

$7,175,476

$5,245,870

$5,235,575

$5,178,428

$5,157,040

59,215

37,653

37,647

37,642

37,615

$12.95

$12.90

$12.38

$11.63

$11.41

7.74

7.98

7.44

6.67

6.42

2026

2025

11.77%

12.02%

11.62%

11.56%

11.44%

14.72%

15.46%

15.08%

15.04%

14.87%

12.27%

12.51%

12.10%

12.05%

11.92%

8.92%

8.75%

8.67%

8.52%

10.69%

9.26%

8.90%

8.45%

8.32%

6.68%

5.94%

5.54%

5.03%

4.86%

66.13%

62.29%

63.00%

63.05%

62.36%

81.06%

76.10%

75.85%

75.14%

72.55%

$59,854

$26,215

$35,344

$27,819

$20,724

59,977

26,370

35,519

28,052

20,902

14,700

16,947

16,083

17,727

11,192

729

5,192

869

748

698

285

295

333

176

362

444

4,897

536

572

336

0.05%

0.59%

0.07%

0.04%

1.14%

1.11%

1.18%

1.17%

1.09%

1.25%

0.79%

1.06%

0.84%

0.64%

0.31%

0.51%

0.48%

0.54%

0.34%

91.36%

140.42%

111.84%

138.62%

171.54%

0.84%

0.50%

0.68%

0.54%

0.41%

2026

2025

$1,334,021

$994,122

$994,604

$995,866

$979,142

1,698,780

1,377,520

1,443,422

1,388,596

1,468,424

1,395,660

795,631

761,788

748,770

718,083

576,089

408,743

410,165

416,795

416,162

916,835

766,762

790,536

771,403

739,512

$5,921,385

$4,342,778

$4,400,515

$4,321,430

$4,321,323

$1,056,571

$773,896

$867,253

$801,561

$873,200

2026

2025

$1,966

$1,831

$1,874

$1,749

$1,758

1,492

891

852

832

810

3,030

3,079

2,745

2,596

2,641

1,683

1,567

1,395

1,828

1,741

(18)

(7)

(927)

(1,313)

886

1,009

1,060

783

798

871

706

658

721

529

380

436

559

329

326

477

106

192

147

2,023

1,956

2,068

2,017

1,866

898

523

954

1,204

1,178

$13,688

$12,097

$11,430

$12,122

$10,481

2026

2025

18,511

15,397

15,992

14,722

16,166

5,126

4,456

4,370

4,119

4,138

1,603

925

1,212

1,262

1,112

1,179

990

1,026

1,196

3,981

925

3,123

544

449

466

454

456

865

711

718

735

1,750

1,391

1,412

1,401

1,397

3,826

3,646

3,396

3,456

3,176

37,318

29,079

31,679

27,175

28,526

$3,811,021

$55,214

5.80%

$3,261,908

$46,810

5.74%

1,177,183

7,773

2.64

1,135,580

7,096

2.50

403,587

3,415

3.38

377,078

2,990

3.17

51,720

761

5.89

44,170

541

4.90

102,808

681

2.65

73,575

510

2.77

5,546,319

67,844

4.89

4,892,311

57,947

4.74

315,777

226,456

$5,862,096

$5,118,767

$811,760

$6,629

3.27%

$733,406

$6,632

3.62%

0.00

143,393

1,538

4.29

1,490,444

6,507

1.75

1,115,259

4,012

1.44

1,447,299

7,304

2.02

1,377,522

7,535

2.19

3,749,503

20,440

2.18

3,369,580

19,717

2.34

333,056

3,135

3.77

218,444

2,417

4.43

89,218

974

4.37

86,209

976

4.53

422,274

4,109

3.89

304,653

3,393

4.45

4,171,777

24,549

2.35

3,674,233

23,110

2.52

1,102,395

977,619

24,876

52,894

563,048

414,021

$5,862,096

$5,118,767

$43,295

2.54%

$34,837

2.22%

3.12%

2.85%

2026

2025

7,175,476

5,245,870

5,235,575

5,178,428

5,157,040

308,463

185,301

186,013

186,731

187,466

6,867,013

5,060,569

5,049,562

4,991,697

4,969,574

5,862,096

5,225,497

5,178,998

5,132,661

5,118,767

204,198

186,844

186,479

187,209

187,947

5,657,898

5,038,653

4,992,519

4,945,452

4,930,820

2026

2025

766,890

485,725

465,949

437,748

429,134

308,463

185,301

186,013

186,731

187,466

458,427

300,424

279,936

251,017

241,668

563,048

481,061

442,556

425,249

414,021

204,198

186,844

186,479

187,209

187,947

358,850

294,217

256,077

238,040

226,074

2026

2025

$16,264

$14,638

$12,461

$13,910

$13,578

3,730

398

2,467

113

760

(137)

1,056

$20,016

$15,149

$15,688

$13,773

$14,634

$0.45

$0.40

$0.42

$0.37

$0.39

1.37%

1.16%

1.21%

1.07%

1.14%

14.22%

12.60%

14.18%

12.96%

14.14%

22.31%

20.60%

24.51%

23.14%

25.89%

2026

2025

$43,295

$37,653

$36,940

$35,554

$34,837

13,688

12,097

11,430

12,122

10,481

143

962

(173)

1,337

57,011

49,893

49,332

47,503

46,655

36,453

28,368

30,961

26,440

27,791

3,981

925

3,123

32,472

27,443

27,838

26,440

27,791

56.96%

55.00%

56.43%

55.66%

59.57%

2026

2025

$ 43,295

$ 37,653

$ 36,940

$ 35,554

$ 34,837

1,817

1,894

1,677

1,731

2,151

165,912

143,036

141,052

135,292

130,744

5,546,319

4,937,016

4,922,275

4,886,771

4,892,311

105

5,546,250

4,936,929

4,922,186

4,886,676

4,892,206

2.99%

2.90%

2.87%

2.77%

2.67%