-- 171 consecutive quarters of profitability
-- Solid loan growth of $34.4 million for the quarter, or 4.2% annualized
-- Commercial loan balances grew $30.1 million for the quarter, or 6.0%
annualized
-- Net interest margin increased from 2.91% in the second quarter of 2025
to 3.00% in the third quarter of 2025
-- Restructured $28.5 million in securities expanding yield by
approximately 220 basis points
-- Enhancing core platform through the strategic decision to transition to
Jack Henry's Silverlake in 2026
CANFIELD, Ohio--(BUSINESS WIRE)--October 22, 2025--
Farmers National Banc Corp. ("Farmers" or the "Company") (NASDAQ: FMNB) today announced net income of $12.5 million, or $0.33 per diluted share, for the third quarter of 2025 compared to $8.5 million, or $0.23 per diluted share, for the third quarter of 2024. Net income for the third quarter of 2025 included pretax losses for the sale of investment securities and other assets totaling $1.0 million and a charge of $3.1 million for consulting services associated with the strategic decision to transition core platform vendors. The new core platform contract will save the Company approximately $2.0 million per year, or $0.04 in diluted earnings per share, once the conversion is complete in August of 2026. Excluding these items (non-GAAP), net income for the third quarter of 2025 was $15.7 million, or $0.42 per diluted share.
Kevin J. Helmick, President and CEO, stated: "Farmers continues to deliver strong financial results, demonstrating the value our diversified financial services provide to customers across our Ohio and Pennsylvania communities. Throughout 2025, we have taken deliberate actions to further strengthen our operating platform and enhance our financial model, ensuring the Company is well positioned to drive sustainable growth and profitability for many years to come."
"Today, we also announced the merger of the Middlefield Banc Corp, which is expected to close in the first quarter of 2026. Upon completion, Farmers will have more than $7.4 billion in assets, serving customers across attractive markets in Northeast and Central Ohio and Western Pennsylvania. Middlefield is a high-quality franchise with complementary markets and a strong community banking culture, and we believe the combination offers significant upside for our shareholders. I look forward to updating our investors as we focus on the successful completion and integration of this merger in the coming quarters," concluded Mr. Helmick.
Balance Sheet
Total assets increased to $5.24 billion in the third quarter of 2025 from $5.18 billion at June 30, 2025 and $5.12 billion at December 31, 2024. Loans increased to $3.34 billion at September 30, 2025 from $3.30 billion at June 30, 2025 and $3.27 billion at December 31, 2024. The increase from the prior quarter was primarily due to strong growth in the commercial area with an increase in balances of $30.1 million, or 6.0% annualized growth.
Securities available for sale totaled $1.30 billion at September 30, 2025 compared to $1.27 billion as of June 30, 2025, and $1.27 billion at December 31, 2024. The mark to market adjustment improved by $27.4 million between June 30 and September 30 as interest rates declined. The Company anticipates continued rate volatility in the bond market in 2025, which will continue to affect the value of the portfolio.
Total deposits increased slightly between June 30, 2025 and September 30, 2025 but are up $133.7 million since December 31, 2024. During the third quarter of 2025, the Company paid off its brokered CDs totaling $75.0 million, while public funds increased $65.7 million primarily due to seasonality. Excluding public funds and brokered CDs, the Company has experienced excellent deposit growth with an increase of $108.3 million, or 4.2% annualized growth, since December 31, 2024.
Total stockholders' equity increased to $465.9 million at September 30, 2025, compared to $437.7 million at June 30, 2025, and $406.0 million at December 31, 2024. The increase was primarily due to an improvement in accumulated other comprehensive income along with increased retained earnings.
Credit Quality
Non-performing loans increased to $35.3 million at September 30, 2025 from $27.8 million at June 30, 2025, and $22.8 million at December 31, 2024. A single loan relationship totaling $7.3 million moved into nonaccrual this quarter. The loan is secured by an apartment building in Troy, Michigan. The Company is working to have resolution on this relationship by December 31, 2025. Nonperforming loans to total loans were 1.06% at September 30, 2025, 0.84% at June 30, 2025, and 0.70% at December 31, 2024. The Company's loans which were 30-89 days delinquent were $16.1 million at September 30, 2025, or 0.48% of total loans, compared to $17.7 million at June 30, 2025, and $13.0 million at December 31, 2024.
The provision for credit losses and unfunded commitments totaled $1.4 million for the third quarter of 2025 compared to $7.0 million for the third quarter of 2024. The provision in the third quarter of 2024 was impacted by a single commercial office loan that resulted in a charge-off of $4.4 million and the establishment of a specific reserve on the credit in the amount of $1.2 million. Annualized net charge-offs as a percentage of average loans were 0.07% for the third quarter of 2025, compared to 0.07% for the second quarter of 2025 and 0.58% for the third quarter of 2024. The allowance for credit losses to total loans was 1.18% at September 30, 2025, 1.17% at June 30, 2025, and 1.10% at December 31, 2024.
Net Interest Income
The Company reported net interest income of $36.3 million for the third quarter of 2025, compared to $31.9 million in the third quarter of 2024. Average interest earning assets increased to $4.92 billion in the third quarter of 2025 compared to $4.89 billion in the third quarter of 2024. The increase was primarily driven by an increase in average loan balances of $69.9 million. The net interest margin improved to 3.00% in the third quarter of 2025 compared to 2.91% in the second quarter of 2025 and 2.66% in the third quarter of 2024. The year-over-year increase in net interest margin was due to higher yields on earning assets and lower funding costs on interest bearing liabilities. The Federal Reserve rate cuts in the back half of 2024 have benefitted funding costs, while the lag effects of assets repricing continued to drive earning asset yields higher. The yield on interest earning assets increased from 4.79% in the third quarter of 2024 to 4.88% in the third quarter of 2025, while the cost of interest-bearing liabilities declined from 2.84% in the third quarter of 2024 to 2.51% in the third quarter of 2025. With the Federal Reserve beginning another round of rate cuts, the Company expects its net interest margin will continue to expand into 2026 as the Company remains liability sensitive and will benefit greatly from falling interest rates. Excluding acquisition marks and PPP interest, non-GAAP, the Company's net interest margin was 2.86% in the third quarter of 2025, 2.77% in the second quarter of 2025, and 2.48% in the third quarter of 2024.
Noninterest Income
Noninterest income declined to $11.4 million in the third quarter of 2025 from $12.3 million in the third quarter of 2024. The decline was primarily due to larger losses on the sale of securities in the third quarter of 2025 along with lower SBIC income in 2025. Service charge income on deposit accounts declined $118,000 to $1.9 million in the third quarter of 2025 compared to $2.0 million for the third quarter of 2024 as overdraft fees continue to lag levels seen in 2024. Bank owned life insurance (BOLI) income increased $164,000 during the third quarter of 2025 to $852,000 compared to $688,000 in the third quarter of 2024. The Company purchased an additional $15.0 million in policies during the first quarter of 2025 and policy crediting rates have increased over the last twelve months. Trust fees increased to $2.7 million in the third quarter of 2025 from $2.5 million in the third quarter of 2024. The Company continues to grow this line of business through deeper penetration in its acquired markets. Losses on the sale of available for sale securities were $927,000 in the third quarter of 2025 compared to a loss of $403,000 in the third quarter of 2024.
The Company restructured $28.5 million of securities in the third quarter of 2025 and reinvested the proceeds into securities yielding approximately 220 basis points more than the securities sold. Retirement plan consulting fees increased from $677,000 in the third quarter of 2024 to $1.1 million in the third quarter of 2025 primarily due to the acquisition of Crest Retirement Advisors LLC in late December of 2024. Investment commissions grew to $658,000 in the third quarter of 2025 from $476,000 in the third quarter of 2024. This business unit continues to grow as the Company has added additional financial advisors over the last 12 months. Other noninterest income was $954,000 in the third quarter of 2025 compared to $2.6 million in the third quarter of 2024. SBIC income was $1.1 million in the third quarter of 2024 compared to $258,000 in the third quarter of 2025. In addition, the Company recorded $565,000 in the third quarter of 2024 for recoveries on loans that were charged off prior to acquisition while the Company did not receive any recovery income in 2025. The Company also realized gains on the sale of assets of $404,000 in the third quarter of 2024 compared to losses on the sale of assets of $102,000 in the third quarter of 2025.
Noninterest Expense
Noninterest expense increased to $31.7 million in the third quarter of 2025 from $27.2 million in the third quarter of 2024. Salaries and employee benefits increased by $1.1 million to $16.0 million in the third quarter of 2025, from $14.9 million in the third quarter of 2024. The increase was primarily driven by annual raises, the acquisition of Crest Retirement in the fourth quarter of 2024 and higher commission expense from increased revenue in the fee-based businesses. Occupancy and equipment expense increased to $4.4 million in the third quarter of 2025 from $4.0 million in the third quarter of 2024 due to increased maintenance costs in 2025. FDIC and state and local taxes improved by $268,000 to $1.2 million in the third quarter of 2025 compared to $1.5 million in the third quarter of 2024. The Company incurred $3.1 million in expense in the third quarter of 2025 related to consulting services associated with the strategic decision to transition core platform vendors. Core processing expense increased to $1.4 million for the quarter ended September 30, 2025, from $1.2 million for the quarter ended September 30, 2024. The increase was due to annual increases and timing differences
The Company had access to an additional $618.1 million in FHLB borrowing capacity at September 30, 2025, along with $353.2 million in available for sale securities that are available for pledging. The Company's loan to deposit ratio was 75.9% at September 30, 2025 while the Company's average deposit balance per account (excluding collateralized deposits) was $26,235 for the same period.
About Farmers National Banc Corp.
Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $5.2 billion in banking assets. Farmers National Banc Corp.'s wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 62 banking locations in Mahoning, Trumbull, Columbiana, Portage, Stark, Wayne, Medina, Geauga and Cuyahoga Counties in Ohio and Beaver, Butler, Allegheny, Jefferson, Clarion, Venango, Clearfield, Mercer, Elk and Crawford Counties in Pennsylvania, and Farmers Trust Company, which operates trust offices and offers services in the same geographic markets. Total wealth management assets under care at September 30, 2025 are $4.6 billion. Farmers National Insurance, LLC, a wholly-owned subsidiary of The Farmers National Bank of Canfield, offers a variety of insurance products.
Non-GAAP Disclosure
This press release includes disclosures of Farmers' tangible common equity ratio, return on average tangible assets, return on average tangible equity, net income excluding costs related to acquisition activities and certain items, return on average assets excluding merger costs and certain items, return on average equity excluding merger costs and certain items, net interest margin excluding acquisition marks and related accretion and PPP interest and fees and efficiency ratio less certain items, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers' marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures to their GAAP equivalents are included in the tables following Consolidated Financial Highlights below.
Cautionary Statements Regarding Forward-Looking Statements
We make statements in this news release and our related investor conference call, and we may from time to time make other statements, that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Farmers' financial condition, results of operations, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management's current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Farmers' control. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions, as well as any statements related to future expectations of performance or conditional verbs, such as "will," "would," "should," "could" or "may." Farmers' actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Farmers' actual results to differ materially from those described in certain forward-looking statements include significant changes in near-term local, regional, and U.S. economic conditions including those resulting from continued high rates of inflation, tightening monetary policy of the Board of Governors of the Federal Reserve, U.S. and foreign country tariff policies, and possibility of a recession; and the other factors contained in Farmers' Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and available on Farmers' website (www.farmersbankgroup.com) and on the SEC's website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management's views as of any subsequent date. Farmers does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
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
2025 2025 2025 2024 2024 2025 2024 Change
--------- --------- --------- --------- --------- ------- ------- ---------
Total interest income $ 59,366 $ 57,702 $ 57,305 $ 57,909 $ 57,923 $174,374 $169,823 2.7%
Total interest expense 23,059 22,781 23,110 25,170 26,047 68,949 74,194 -7.1%
--------- --------- --------- --------- --------- ------- ------- -----
Net interest income 36,307 34,921 34,195 32,739 31,876 105,425 95,629 10.2%
Provision (credit) for
credit losses 1,419 3,548 (204) 295 7,008 4,763 7,671 -37.9%
Noninterest income 11,430 12,122 10,481 11,413 12,340 34,032 30,302 12.3%
System conversion /
Acquisition related
costs 3,123 0 0 92 0 3,123 0 0.0%
Other expense 28,556 27,175 28,526 26,082 27,075 84,258 80,517 4.6%
--------- --------- --------- --------- --------- ------- ------- -----
Income before income
taxes 14,639 16,320 16,354 17,683 10,133 47,313 37,743 25.4%
Income taxes 2,178 2,410 2,776 3,292 1,598 7,364 6,185 19.1%
--------- --------- --------- --------- --------- ------- ------- -----
Net income $ 12,461 $ 13,910 $ 13,578 $ 14,391 $ 8,535 $ 39,949 $ 31,558 26.6%
========= ========= ========= ========= ========= ======= ======= =====
Average diluted shares
outstanding 37,677 37,622 37,626 37,616 37,567 37,626 37,495
Basic earnings per share 0.33 0.37 0.36 0.38 0.23 1.07 0.85
Diluted earnings per
share 0.33 0.37 0.36 0.38 0.23 1.06 0.84
Cash dividends per share 0.17 0.17 0.17 0.17 0.17 0.51 0.51
Performance Ratios
Net Interest Margin
(Annualized) 3.00% 2.91% 2.85% 2.72% 2.66% 2.92% 2.69%
Efficiency Ratio (Tax
equivalent basis) 62.66% 56.66% 59.60% 56.42% 58.47% 59.68% 60.24%
Efficiency Ratio (Tax
equivalent basis)
excluding core
conversion, acquisition
costs and other
extraordinary items
(b) 56.43% 55.66% 59.57% 56.10% 59.05% 57.20% 60.26%
Return on Average Assets
(Annualized) 0.96% 1.08% 1.06% 1.12% 0.66% 1.04% 0.83%
Return on Average Equity
(Annualized) 11.26% 13.08% 13.12% 13.43% 8.18% 12.46% 10.51%
Other Performance Ratios
(Non-GAAP)
Return on Average
Tangible Assets 1.00% 1.13% 1.10% 1.16% 0.69% 1.07% 0.86%
Return on Average
Tangible Equity 19.46% 23.37% 24.02% 23.95% 14.94% 22.18% 19.95%
Consolidated Statements
of Financial Condition
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
2025 2025 2025 2024 2024
--------- --------- --------- --------- ---------
Assets
Cash and cash
equivalents $ 92,345 $ 90,740 $ 113,256 $ 85,738 $ 189,136
Debt securities
available for sale 1,301,766 1,274,899 1,281,413 1,266,553 1,293,350
Other investments 44,245 42,410 40,334 45,405 33,617
Loans held for sale 4,975 2,174 2,973 5,005 2,852
Loans 3,337,780 3,303,359 3,251,391 3,268,346 3,280,517
Less allowance for
credit losses 39,528 38,563 35,549 35,863 36,186
--------- --------- --------- --------- ---------
Net Loans 3,298,252 3,264,796 3,215,842 3,232,483 3,244,331
--------- --------- --------- --------- ---------
Other assets 493,992 503,409 503,222 483,740 473,217
--------- --------- --------- --------- ---------
Total Assets $5,235,575 $5,178,428 $5,157,040 $5,118,924 $5,236,503
========= ========= ========= ========= =========
Liabilities and
Stockholders' Equity
Deposits
Noninterest-bearing $ 994,604 $ 995,865 $ 979,142 $ 965,507 $ 969,682
Interest-bearing 3,405,911 3,325,564 3,342,182 3,226,321 3,317,223
Brokered time
deposits 0 74,988 159,964 74,951 74,932
--------- --------- --------- --------- ---------
Total deposits 4,400,515 4,396,417 4,481,288 4,266,779 4,361,837
Other interest-bearing
liabilities 321,581 289,428 188,275 391,150 371,038
Other liabilities 47,530 54,835 58,343 54,967 63,950
--------- --------- --------- --------- ---------
Total liabilities 4,769,626 4,740,680 4,727,906 4,712,896 4,796,825
Stockholders' Equity 465,949 437,748 429,134 406,028 439,678
--------- --------- --------- --------- ---------
Total
Liabilities and
Stockholders'
Equity $5,235,575 $5,178,428 $5,157,040 $5,118,924 $5,236,503
========= ========= ========= ========= =========
Period-end shares
outstanding 37,647 37,642 37,615 37,586 37,574
Book value per share $ 12.38 $ 11.69 $ 11.41 $ 10.80 $ 11.70
Tangible book value per
share (Non-GAAP)* 7.44 6.70 6.42 5.80 6.69
* Tangible book value per share is calculated by dividing tangible common equity by outstanding shares
For the
For the Three Months Ended Nine Months Ended
------------------------------------------------------------------------------ ---------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
Capital and
Liquidity 2025 2025 2025 2024 2024 2025 2024
--------- --------- --------- --------- --------- ---------- ---------
Common Equity Tier 1
Capital Ratio (a) 11.74% 11.56% 11.44% 11.14% 10.91%
Total Risk Based
Capital Ratio (a) 15.23% 15.04% 14.87% 14.55% 14.34%
Tier 1 Risk Based
Capital Ratio (a) 12.22% 12.05% 11.92% 11.62% 11.39%
Tier 1 Leverage
Ratio (a) 8.75% 8.67% 8.52% 8.36% 8.20%
Equity to Asset
Ratio 8.90% 8.45% 8.32% 7.93% 8.40%
Tangible Common
Equity Ratio (b) 5.54% 5.03% 4.86% 4.42% 4.98%
Net Loans to Assets 63.00% 63.05% 62.36% 63.15% 61.96%
Loans to Deposits 75.85% 75.14% 72.55% 76.60% 75.21%
Asset Quality
Non-performing loans $ 35,344 $ 27,819 $ 20,724 $ 22,818 $ 19,076
Non-performing
assets 35,519 28,052 20,902 22,903 19,137
Loans 30 - 89 days
delinquent 16,083 17,727 11,192 13,032 15,562
Charged-off loans 869 748 698 928 5,116 2,315 7,059
Recoveries 333 176 362 293 504 871 873
Net Charge-offs 536 572 336 635 4,612 1,444 6,186
Annualized Net
Charge-offs to
Average Net Loans 0.07% 0.07% 0.04% 0.08% 0.58% 0.06% 0.26%
Allowance for Credit
Losses to Total
Loans 1.18% 1.17% 1.09% 1.10% 1.10%
Non-performing Loans
to Total Loans 1.06% 0.84% 0.64% 0.70% 0.58%
Loans 30 - 89 Days
Delinquent to Total
Loans 0.48% 0.54% 0.34% 0.40% 0.47%
Allowance to
Non-performing
Loans 111.84% 138.62% 171.54% 157.17% 189.69%
Non-performing
Assets to Total
Assets 0.68% 0.54% 0.41% 0.45% 0.37%
(a) September 30, 2025 ratio is estimated
(b) This is a non-GAAP financial measure. A reconciliation to GAAP is shown below
For the Three Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
End of Period Loan
Balances 2025 2025 2025 2024 2024
--------- --------- --------- --------- ---------
Commercial real
estate $1,428,583 $1,385,162 $1,370,661 $1,382,714 $1,372,374
Commercial 351,213 363,009 336,600 349,966 358,247
Residential real
estate 850,112 849,443 846,639 845,081 852,444
HELOC 176,609 171,312 161,991 158,014 155,967
Consumer 251,557 253,363 257,310 259,954 269,231
Agricultural loans 269,025 270,599 267,737 262,392 261,773
--------- --------- --------- --------- ---------
Total, excluding net
deferred loan
costs $3,327,099 $3,292,888 $3,240,938 $3,258,121 $3,270,036
========= ========= ========= ========= =========
For the Three Months Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
End of Period
Customer Deposit
Balances 2025 2025 2025 2024 2024
--------- --------- --------- --------- ---------
Noninterest-bearing
demand $ 994,604 $ 995,866 $ 979,142 $ 965,507 $ 969,682
Interest-bearing
demand 1,443,422 1,388,596 1,468,424 1,366,255 1,453,288
Money market 761,788 748,770 718,083 682,558 676,664
Savings 410,165 416,795 416,162 414,796 418,771
Certificate of
deposit 790,536 771,403 739,512 762,712 768,500
--------- --------- --------- --------- ---------
Total customer
deposits $4,400,515 $4,321,430 $4,321,323 $4,191,828 $4,286,905
========= ========= ========= ========= =========
Memo: Public funds
included in above
numbers $ 867,253 $ 801,561 $ 873,200 $ 766,853 $ 879,618
For the
For the Three Months Ended Nine Months Ended
---------------------------------------------- --------------------
Sept. June March Dec. Sept. Sept.
30, 30, 31, 31, 30, 30, Sept. 30,
Noninterest
Income 2025 2025 2025 2024 2024 2025 2024
------ ------- ------ ------- ------ ------ ------
Service
charges on
deposit
accounts $ 1,874 $ 1,749 $ 1,758 $ 1,890 $ 1,992 $ 5,381 $ 5,421
Bank owned
life
insurance
income,
including
death
benefits 852 832 810 613 688 2,494 2,046
Trust fees 2,745 2,596 2,641 2,700 2,544 7,982 7,398
Insurance
agency
commissions 1,395 1,828 1,741 1,273 1,416 4,964 4,199
Security
gains
(losses),
including
fair value
changes for
equity
securities (927) 36 (1,313) 10 (403) (2,205) (2,647)
Retirement
plan
consulting
fees 1,060 783 798 719 677 2,641 1,918
Investment
commissions 658 721 529 621 476 1,908 1,386
Net gains on
sale of
loans 559 329 326 282 506 1,214 1,219
Other
mortgage
banking fee
income
(loss), net 192 27 147 285 (168) 366 150
Debit card
and EFT
fees 2,068 2,017 1,866 2,164 1,993 5,951 5,320
Other
noninterest
income 954 1,204 1,178 856 2,619 3,336 3,892
------ ------ ------ ------ ------ ------ ------
Total
Noninterest
Income $11,430 $12,122 $10,481 $11,413 $12,340 $34,032 $30,302
====== ====== ====== ====== ====== ====== ======
For the
For the Three Months Ended Nine Months Ended
---------------------------------------------- --------------------
Sept. June March Dec. Sept. Sept.
30, 30, 31, 31, 30, 30, Sept. 30,
Noninterest
Expense 2025 2025 2025 2024 2024 2025 2024
------ ------- ------ ------- ------ ------ ------
Salaries and
employee
benefits $15,992 $14,722 $16,166 $14,424 $14,874 $46,880 $44,501
Occupancy and
equipment 4,370 4,119 4,138 4,075 3,968 12,627 11,512
FDIC
insurance
and state
and local
taxes 1,212 1,262 1,262 1,019 1,480 3,736 4,010
Professional
fees 990 1,026 1,196 785 1,084 3,213 3,532
System
conversion /
Merger
related
costs 3,123 0 0 92 0 3,123 0
Advertising 466 454 456 192 435 1,376 1,312
Intangible
amortization 718 735 735 914 629 2,188 1,947
Core
processing
charges 1,412 1,401 1,397 1,202 1,186 4,210 3,420
Other
noninterest
expenses 3,396 3,456 3,176 3,471 3,419 10,028 10,283
------ ------ ------ ------ ------ ------ ------
Total
Noninterest
Expense $31,679 $27,175 $28,526 $26,174 $27,075 $87,381 $80,517
====== ====== ====== ====== ====== ====== ======
Average Balance Sheets and Related Yields and Rates
(Dollar Amounts in Thousands)
Three Months Ended Three Months Ended
September 30, 2025 September 30, 2024
------------------------------- ----------------------
AVERAGE YIELD/ AVERAGE YIELD/
INTEREST INTEREST
BALANCE (1) RATE (1) BALANCE (1) RATE (1)
EARNING ASSETS
Loans (2) $3,311,535 $ 48,713 5.88% $3,241,603 $ 47,060 5.81%
Taxable securities 1,134,806 7,466 2.63 1,104,264 6,761 2.45
Tax-exempt
securities (2) 363,171 2,895 3.19 379,551 2,992 3.15
Other investments 40,940 459 4.48 34,873 346 3.97
Federal funds sold
and other 71,823 466 2.60 130,053 1,371 4.22
--------- -------- --------- ------
Total earning assets 4,922,275 59,999 4.88 4,890,344 58,530 4.79
Nonearning assets 256,723 243,718
--------- ---------
Total assets $5,178,998 $5,134,062
========= =========
INTEREST-BEARING
LIABILITIES
Time deposits $ 782,861 $ 6,825 3.49% $ 753,163 $ 7,584 4.03%
Brokered time
deposits 48,094 527 4.38 26,062 286 4.39
Savings deposits 1,177,080 4,566 1.55 1,103,269 4,372 1.59
Demand deposits -
interest bearing 1,431,878 8,454 2.36 1,411,520 9,305 2.64
--------- -------- --------- ------
Total
interest-bearing
deposits 3,439,913 20,372 2.37 3,294,014 21,547 2.62
Short term
borrowings 150,022 1,681 4.48 289,652 3,477 4.80
Long term borrowings 86,506 1,006 4.65 87,368 1,023 4.68
--------- -------- --------- ------
Total borrowed funds 236,528 2,687 4.54 377,020 4,500 4.77
Total
interest-bearing
liabilities 3,676,441 23,059 2.51 3,671,034 26,047 2.84
NONINTEREST-BEARING
LIABILITIES AND
STOCKHOLDERS'
EQUITY
Demand deposits -
noninterest
bearing 1,007,534 983,274
Other liabilities 52,467 62,427
Stockholders' equity 442,556 417,327
--------- ---------
TOTAL LIABILITIES
AND
STOCKHOLDERS' EQUITY $5,178,998 $5,134,062
========= -------- ========= ------
Net interest income
and interest rate
spread $ 36,940 2.37% $ 32,483 1.95%
======== ==== ====== ====
Net interest margin 3.00% 2.66%
==== ====
(1) Interest and yields are calculated on a tax-equivalent basis where applicable.
(2) For 2025, adjustments of $110,000 and $523,000, respectively, were made to tax
equate income on tax exempt loans and tax exempt securities. For 2024, adjustments of
$71,000 and $536,000, respectively, were made to tax equate income on tax exempt loans
and tax exempt securities. These adjustments were based on a marginal federal income
tax rate of 21%, less disallowances.
For the Nine Months Ended For the Nine Months Ended
September 30, 2025 September 30, 2024
------------------------------- -------------------------------
AVERAGE YIELD/ AVERAGE YIELD/
INTEREST INTEREST
BALANCE (1) RATE (1) BALANCE (1) RATE (1)
EARNING ASSETS
Loans (2) $3,282,794 $ 142,683 5.80% $3,212,799 $ 138,746 5.76%
Taxable securities 1,137,393 21,946 2.57 1,108,055 19,988 2.41
Tax-exempt
securities (2) 368,209 8,785 3.18 389,094 9,174 3.14
Other investments 41,760 1,462 4.67 34,243 1,030 4.01
Federal funds sold
and other 70,407 1,405 2.66 93,601 2,740 3.90
--------- -------- ---------
Total earning assets 4,900,563 176,281 4.80 4,837,792 171,678 4.73
Nonearning assets 243,133 229,966
--------- ---------
Total assets $5,143,696 $5,067,758
========= =========
INTEREST-BEARING
LIABILITIES
Time deposits $ 751,144 $ 20,041 3.56% $ 741,450 $ 21,865 3.93%
Brokered time
deposits 95,634 3,112 4.34 8,751 286 4.36
Savings deposits 1,146,098 12,861 1.50 1,096,788 12,087 1.47
Demand deposits -
interest bearing 1,421,764 24,314 2.28 1,386,390 25,857 2.49
--------- -------- ---------
Total
interest-bearing
deposits 3,414,640 60,328 2.36 3,233,379 60,095 2.48
Short term
borrowings 168,480 5,634 4.46 304,607 11,000 4.81
Long term borrowings 86,358 2,987 4.61 88,304 3,098 4.68
--------- -------- --------- --------
Total borrowed funds 254,838 8,621 4.51 392,911 14,098 4.78
Total
interest-bearing
liabilities 3,669,478 68,949 2.51 3,626,290 74,193 2.73
NONINTEREST-BEARING
LIABILITIES
AND STOCKHOLDERS'
EQUITY
Demand deposits -
noninterest
bearing $ 992,824 983,576
Other liabilities 54,014 57,577
Stockholders' equity 427,380 400,315
--------- ---------
TOTAL LIABILITIES
AND
STOCKHOLDERS' EQUITY $5,143,696 $5,067,758
========= -------- ========= --------
Net interest income
and interest rate
spread $ 107,332 2.29% $ 97,485 2.00%
======== ==== ======== ====
Net interest margin 2.92% 2.69%
==== ====
(1) Interest and
yields are
calculated on a
tax-equivalent
basis where
applicable.
(2) For 2025, adjustments of $322,000 and $1.6 million, respectively, were made to tax
equate income on tax exempt loans and tax exempt securities. For 2024, adjustments of
$228,000 and $1.6 million, respectively, were made to tax equate income on tax exempt
loans and tax exempt securities. These adjustments were based on a marginal federal
income tax rate of 21%, less disallowances.
Reconciliation
of Total Assets
to Tangible For the
Assets For the Three Months Ended Nine Months Ended
------------------------------------------------------------------------------ ------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
2025 2025 2025 2024 2024 2025 2024
--------- --------- --------- --------- --------- --------- ---------
Total Assets $5,235,575 $5,178,428 $5,157,040 $5,118,924 $5,236,503 $5,235,575 $5,236,503
Less Goodwill
and other
intangibles 186,013 186,731 187,466 188,200 188,340 186,013 188,340
--------- --------- --------- --------- --------- --------- ---------
Tangible Assets $5,049,562 $4,991,697 $4,969,574 $4,930,724 $5,048,163 $5,049,562 $5,048,163
========= ========= ========= ========= ========= ========= =========
Average Assets 5,178,998 5,132,661 5,118,767 5,159,901 5,134,062 5,143,696 5,067,758
Less average
Goodwill and
other
intangibles 186,479 187,209 187,947 188,256 188,755 187,207 189,391
--------- --------- --------- --------- --------- --------- ---------
Average
Tangible
Assets $4,992,519 $4,945,452 $4,930,820 $4,971,645 $4,945,307 $4,956,489 $4,878,367
========= ========= ========= ========= ========= ========= =========
Reconciliation
of Common
Stockholders'
Equity to
Tangible Common For the
Equity For the Three Months Ended Nine Months Ended
------------------------------------------------------------------------------ ------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
2025 2025 2025 2024 2024 2025 2024
--------- --------- --------- --------- --------- --------- ---------
Stockholders'
Equity $ 465,949 $ 437,748 $ 429,134 $ 406,028 $ 439,678 $ 465,949 $ 439,678
Less Goodwill
and other
intangibles 186,013 186,731 187,466 188,200 188,340 186,013 188,340
--------- --------- --------- --------- --------- --------- ---------
Tangible Common
Equity $ 279,936 $ 251,017 $ 241,668 $ 217,828 $ 251,338 $ 279,936 $ 251,338
========= ========= ========= ========= ========= ========= =========
Average
Stockholders'
Equity 442,556 425,249 414,021 428,646 417,327 427,380 400,315
Less average
Goodwill and
other
intangibles 186,479 187,209 187,947 188,256 188,755 187,207 189,391
--------- --------- --------- --------- --------- --------- ---------
Average
Tangible
Common Equity $ 256,077 $ 238,040 $ 226,074 $ 240,390 $ 228,572 $ 240,173 $ 210,924
========= ========= ========= ========= ========= ========= =========
Reconciliation
of Net Income,
Less Merger and For the
Certain Items For the Three Months Ended Nine Months Ended
------------------------------------------------------------------------------ ------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
2025 2025 2025 2024 2024 2025 2024
--------- --------- --------- --------- --------- --------- ---------
Net income $ 12,461 $ 13,910 $ 13,578 $ 14,391 $ 8,535 $ 39,949 $ 31,558
System
conversion /
Acquisition
related costs
- after tax 2,467 0 0 82 0 2,467 0
Net loss (gain)
on
asset/security
sales - after
tax 760 (137) 1,056 70 (32) 1,680 2,050
--------- --------- --------- --------- --------- --------- ---------
Net income -
Adjusted $ 15,688 $ 13,773 $ 14,634 $ 14,543 $ 8,503 $ 44,097 $ 33,608
========= ========= ========= ========= ========= ========= =========
Diluted EPS
excluding
merger and
certain items $ 0.42 $ 0.37 $ 0.39 $ 0.39 $ 0.23 $ 1.17 $ 0.90
========= ========= ========= ========= ========= ========= =========
Return on
Average Assets
excluding
system
conversion,
merger and
certain items
(Annualized) 1.21% 1.07% 1.14% 1.13% 0.66% 1.14% 0.88%
Return on
Average Equity
excluding
system
conversion,
merger and
certain items
(Annualized) 14.18% 12.96% 14.14% 13.57% 8.15% 13.76% 11.19%
Return on
Average
Tangible
Equity
excluding
system
conversion,
merger costs
and certain
items
(Annualized) 24.51% 23.14% 25.89% 24.20% 14.88% 24.48% 21.24%
Efficiency
ratio excluding For the
certain items For the Three Months Ended Nine Months Ended
------------------------------------------------------------------------------ ------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
2025 2025 2025 2024 2024 2025 2024
--------- --------- --------- --------- --------- --------- ---------
Net interest
income, tax
equated $ 36,940 $ 35,554 $ 34,837 $ 33,364 $ 32,483 $ 107,332 $ 97,485
Noninterest
income 11,430 12,122 10,481 11,413 12,340 34,032 30,302
Net loss (gain)
on
asset/security
sales 962 (173) 1,337 89 (41) 2,127 2,594
--------- --------- --------- --------- --------- --------- ---------
Net interest
income and
noninterest
income
adjusted 49,332 47,503 46,655 44,866 44,782 143,491 130,381
Noninterest
expense less
intangible
amortization 30,961 26,440 27,791 25,260 26,446 85,193 78,570
System
conversion /
Acquisition
related costs 3,123 0 0 92 0 3,123 0
--------- --------- --------- --------- --------- --------- ---------
Noninterest
expense
adjusted 27,838 26,440 27,791 25,168 26,446 82,070 78,570
--------- --------- --------- --------- --------- --------- ---------
Efficiency
ratio
excluding
certain items 56.43% 55.66% 59.57% 56.10% 59.05% 57.20% 60.26%
========= ========= ========= ========= ========= ========= =========
Net interest
margin
excluding
acquisition
marks and PPP
interest and For the
fees For the Three Months Ended Nine Months Ended
------------------------------------------------------------------------------ ------------------------------
Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30,
2025 2025 2025 2024 2024 2025 2024
--------- --------- --------- --------- --------- --------- ---------
Net interest
income, tax
equated $ 36,940 $ 35,554 $ 34,837 $ 33,364 $ 32,483 $ 107,332 $ 97,485
Acquisition
marks 1,677 1,731 2,151 1,953 2,123 5,559 6,884
PPP interest
and fees 0 0 0 0 1 0 2
--------- --------- --------- --------- --------- --------- ---------
Adjusted and
annualized net
interest
income 141,052 135,292 130,744 125,644 121,436 135,697 120,799
--------- --------- --------- --------- --------- --------- ---------
Average earning
assets 4,922,275 4,886,771 4,892,311 4,912,702 4,890,344 4,900,563 4,837,792
--------- --------- --------- --------- --------- --------- ---------
Less PPP
average
balances 89 95 105 112 118 98 167
--------- --------- --------- --------- --------- --------- ---------
Adjusted
average
earning
assets 4,922,186 4,886,676 4,892,206 4,912,590 4,890,226 4,900,465 4,837,625
--------- --------- --------- --------- --------- --------- ---------
Net interest
margin
excluding
marks and PPP
interest and
fees 2.87% 2.77% 2.67% 2.56% 2.48% 2.77% 2.50%
========= ========= ========= ========= ========= ========= =========
View source version on businesswire.com: https://www.businesswire.com/news/home/20251021454456/en/
CONTACT: 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: exec@farmersbankgroup.com
(END) Dow Jones Newswires
October 22, 2025 07:45 ET (11:45 GMT)