Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly period ended June 30, 2025 Commission file number 001-35296 FARMERS NATIONAL BANC CORP. (Exact name of registrant as specified in its charter) OHIO 34-1371693 (State or other jurisdiction of incorporation or or ...

Farmers National Banc (FMNB) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a ...

Core Viewpoint - Farmers National Banc reported strong second-quarter 2025 results, exceeding earnings and revenue expectations, while facing increased credit risk from commercial real estate exposures [1][5]. Financial Performance - Non-GAAP earnings per share (EPS) reached $0.37, surpassing the analyst consensus of $0.36, and showing a year-over-year increase of 19.4% from $0.31 in Q2 2024 [2][5]. - Revenue (GAAP) was $47.0 million, exceeding the estimate of $46.0 million and reflecting a slight year-over-year increase of 1.1% from $46.5 million in Q2 2024 [2][5]. - Net interest margin improved to 2.91%, up from 2.71% in Q2 2024, indicating better loan yields and reduced funding costs [2][7]. - The efficiency ratio improved to 56.7%, down from 60.8% in the previous year, demonstrating enhanced operational efficiency [2][7]. Loan and Revenue Growth - Total loans increased by $52.0 million, with commercial loans rising by $43.6 million, resulting in annualized growth rates of 6.4% and 8.8%, respectively [6]. - Noninterest income grew significantly, with a 25.8% increase compared to Q2 2024, driven by higher insurance agency commissions and trust fees [6]. Asset Quality and Credit Risk - Non-performing loans rose to $27.8 million, or 0.84% of total loans, up from $20.7 million (0.64%) in Q1 2025, primarily due to two commercial real estate loans classified as nonaccrual [8]. - A specific credit reserve of $2.6 million was established, with a provision for credit losses of $3.5 million, a notable increase from $1.1 million in Q2 2024 [9]. Management Outlook - Management is optimistic about further net interest margin expansion, influenced by potential changes in Federal Reserve policy rates [10]. - The quarterly dividend remained unchanged at $0.17 per share, continuing a consistent payout history [10].

Shares of Farmers National have returned +4.2% over the past month versus the Zacks S&P 500 composite's +5.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Efficiency Ratio: 56.7% versus the two-analyst average estimate of 60.2%. Net Interest Margin: 2.9% versus the two-analyst average estimate of 2.9%. Average Earning Assets [$M]: $4.89 billion compared to the $4.91 billion average estimate based on two analysts. T ...

Farmers National Banc (FMNB) came out with quarterly earnings of $0.37 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.33 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this bank would post earnings of $0.34 per share when it actually produced earnings of $0.39, delivering a surprise of +14.71%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Farmers National, which ...

Exhibit 99.1 July 23, 2025 Press Release Non-performing loans increased to $27.8 million at June 30, 2025 from $20.7 million at March 31, 2025, and $22.8 million at December 31, 2024. Two loan relationships representing a combined total of $10.2 million moved into nonaccrual this quarter. Both of the relationships are non-owner occupied commercial real estate loans located in the Pittsburgh area. Specific reserves totaling $2.6 million were placed on the loans at the end of the second quarter. The Company i ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited financial statements, management's discussion and analysis, market risk disclosures, and internal controls for the reporting period [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for the quarter ended March 31, 2025, show an increase in total assets to **$5.16 billion** and net income of **$13.6 million**, up from **$11.2 million** in the prior year's quarter, reflecting changes in assets, liabilities, equity, income, and cash flows, with detailed notes providing further context [Consolidated Condensed Balance Sheets](index=4&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) The balance sheet reflects an increase in total assets driven by a rise in total deposits - Total assets increased to **$5.157 billion** as of March 31, 2025, from **$5.119 billion** at December 31, 2024, driven by a rise in total deposits[7](index=7&type=chunk) Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$5,157,040** | **$5,118,924** | | Net Loans | $3,215,842 | $3,232,483 | | Total Deposits | $4,481,288 | $4,266,779 | | **Total Liabilities** | **$4,727,906** | **$4,712,896** | | **Total Stockholders' Equity** | **$429,134** | **$406,028** | [Consolidated Condensed Statements of Income](index=5&type=section&id=Consolidated%20Condensed%20Statements%20of%20Income) Net income for Q1 2025 increased by 20.8% due to higher net interest and noninterest income - Net income for Q1 2025 was **$13.58 million**, a **20.8% increase** from **$11.24 million** in Q1 2024, driven by higher net interest income and noninterest income[8](index=8&type=chunk) Income Statement Summary (in thousands, except per share data) | Account | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $34,195 | $31,687 | | Total Noninterest Income | $10,481 | $8,357 | | Total Noninterest Expenses | $28,526 | $27,039 | | **Net Income** | **$13,578** | **$11,240** | | **Diluted EPS** | **$0.36** | **$0.30** | [Consolidated Condensed Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Condensed%20Statements%20of%20Comprehensive%20Income%20(Loss)) Total comprehensive income significantly improved in Q1 2025 due to unrealized gains on available-for-sale securities - Total comprehensive income was **$29.5 million** in Q1 2025, a significant improvement from a loss of **$1.2 million** in Q1 2024, primarily due to unrealized holding gains on available-for-sale securities in 2025 versus losses in 2024[9](index=9&type=chunk) [Consolidated Condensed Statements of Stockholders' Equity](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity increased due to net income and other comprehensive income, partially offset by dividends - Total stockholders' equity increased from **$406.0 million** at year-end 2024 to **$429.1 million** at March 31, 2025, driven by net income of **$13.6 million** and other comprehensive income of **$16.0 million**, partially offset by dividends of **$6.4 million**[10](index=10&type=chunk) [Consolidated Condensed Statements of Cash Flows](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) The cash flow statement summarizes net cash from operating, investing, and financing activities Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $15,670 | $13,713 | | Net Cash from Investing Activities | $7,417 | $27,411 | | Net Cash from Financing Activities | $4,431 | $3,848 | | **Net Change in Cash** | **$27,518** | **$44,972** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) The notes detail accounting policies, business segments, recent acquisitions, securities and loan portfolios, fair value measurements, regulatory capital, and new investments - The company operates through two main segments: the **Bank segment** and the **Trust segment**[16](index=16&type=chunk) - On December 16, 2024, Farmers Trust acquired Crest Retirement Advisors, LLC, for **$0.6 million**, with **$0.4 million** in contingent consideration, resulting in recording **$0.77 million** in intangible assets and **$0.004 million** in goodwill[23](index=23&type=chunk) - The available-for-sale securities portfolio totaled **$1.28 billion** at fair value as of March 31, 2025, with gross unrealized losses of **$225.9 million**, primarily due to changes in interest rates[25](index=25&type=chunk) - The allowance for credit losses (ACL) was **$35.5 million** at March 31, 2025, down from **$35.9 million** at year-end 2024, mainly due to lower loan balances and adjustments to qualitative factors[33](index=33&type=chunk)[64](index=64&type=chunk) - The company began investing in solar investment tax credits in Q1 2025, with a balance of **$10.0 million** and unfunded commitments of **$9.3 million** as of March 31, 2025[144](index=144&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a net income of **$13.6 million** for Q1 2025, an increase from **$11.2 million** in Q1 2024, driven by a **15 basis point** expansion in net interest margin to **2.85%** and strong growth in noninterest income, while maintaining a solid financial condition with total assets at **$5.16 billion** and strong capital ratios [Results of Operations](index=57&type=section&id=Results%20of%20Operations) Net income for Q1 2025 increased to **$13.6 million** ($0.36 per diluted share) from **$11.2 million** ($0.30 per diluted share) in Q1 2024, primarily due to a **$2.5 million** increase in net interest income and **$2.1 million** growth in noninterest income, partially offset by a **$1.5 million** rise in noninterest expense Key Performance Ratios | Ratio | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Return on average assets (annualized) | 1.06% | 0.90% | | Return on average equity (annualized) | 13.12% | 11.47% | | Net interest margin | 2.85% | 2.70% | - Net interest income increased to **$34.2 million** in Q1 2025 from **$31.7 million** in Q1 2024, attributed to a **15 basis point** increase in the net interest margin[155](index=155&type=chunk) - Noninterest income rose to **$10.5 million** in Q1 2025 from **$8.4 million** in Q1 2024, due to growth in service charges, trust fees, insurance commissions, and lower losses on security sales[158](index=158&type=chunk)[159](index=159&type=chunk) - Noninterest expense increased to **$28.5 million** in Q1 2025 from **$27.0 million** in Q1 2024, primarily driven by a **$1.1 million** increase in salaries and employee benefits[160](index=160&type=chunk) [Financial Condition](index=61&type=section&id=Financial%20Condition) As of March 31, 2025, total assets stood at **$5.16 billion**, with a slight decrease in net loans to **$3.25 billion** and an increase in total deposits to **$4.48 billion**, while stockholders' equity rose to **$429.1 million**, maintaining a well-capitalized position - Net loans decreased to **$3.25 billion** at March 31, 2025, from **$3.27 billion** at year-end 2024, mainly due to reductions in commercial and construction loans[164](index=164&type=chunk) - Total deposits increased to **$4.48 billion** from **$4.27 billion** at year-end 2024, driven by seasonality of public funds and the acquisition of **$85.0 million** in brokered time deposits[170](index=170&type=chunk) Asset Quality Ratios | Ratio | 3/31/2025 | 3/31/2024 | | :--- | :--- | :--- | | Nonperforming loans as a % of total loans | 0.64% | 0.38% | | Allowance for credit losses as a % of total loans | 1.09% | 1.04% | | Annualized net charge-offs to average net loans | 0.04% | 0.13% | - Total stockholders' equity increased to **$429.1 million** from **$406.0 million** at year-end 2024, primarily due to net income and a **$16.0 million** decrease in accumulated other comprehensive loss[172](index=172&type=chunk) [Critical Accounting Policies](index=65&type=section&id=Critical%20Accounting%20Policies) The company's critical accounting policies involve significant management judgment in determining the adequacy of the allowance for credit losses (ACL) and assessing goodwill impairment, with ACL estimation relying on macroeconomic forecasts and sensitivity analysis - The two critical accounting policies are determining the adequacy of the allowance for credit losses (ACL) and assessing impairment of goodwill or other intangibles[176](index=176&type=chunk) - The ACL estimation involves significant judgment, particularly regarding macroeconomic forecasts, using U.S. real GDP changes, U.S. PCE inflation, and the U.S. unemployment rate as key variables[179](index=179&type=chunk)[184](index=184&type=chunk) - A sensitivity analysis comparing the central economic scenario to a relative adverse scenario indicated a potential increase in modeled credit loss estimates of **$0.657 million** for residential real estate loans and **$1.15 million** for commercial real estate non-owner occupied loans[186](index=186&type=chunk) [Liquidity and Off-Balance Sheet Arrangements](index=67&type=section&id=Liquidity%20and%20Off-Balance%20Sheet%20Arrangements) The company maintains sufficient liquidity through liquid assets, cash flows, and wholesale funding, with **$102.0 million** in outstanding FHLB borrowings and **$749.3 million** in additional capacity, alongside **$734.2 million** in off-balance sheet loan commitments - The company maintains multiple sources of liquidity, including FHLB advances, a **$25.0 million** line of credit with a major domestic bank, and a **$5.0 million** revolving line of credit[193](index=193&type=chunk) - At March 31, 2025, the Bank had **$102.0 million** in outstanding short-term FHLB borrowings and an additional borrowing capacity of approximately **$749.3 million**[193](index=193&type=chunk) - Total unused commitments, including lines of credit and letters of credit, were **$734.2 million** at March 31, 2025[195](index=195&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with simulation analysis showing that a **+100 basis point** rate shock would decrease Net Interest Income by **2.2%**, and the Economic Value of Equity (EVE) sensitivity exceeds internal policy limits in rising rate scenarios, prompting strategies to shorten investment portfolio duration and pursue prudent loan growth Interest Rate Sensitivity Analysis (March 31, 2025) | Rate Change (bps) | Net Interest Income Change | Net Present Value of Equity Change | | :--- | :--- | :--- | | +400 | -7.6% | -33.3% | | +200 | -4.1% | -16.1% | | +100 | -2.2% | -8.0% | | -100 | 1.8% | 4.4% | | -200 | 3.1% | 5.1% | - The Economic Value of Equity (EVE) sensitivity exceeds internal policy limits in rising rate scenarios, attributed to the large influx of low-rate deposits in 2020-2021 invested at low rates, and the subsequent rise in market rates[201](index=201&type=chunk) - Mitigation strategies include shrinking the longer-duration investment portfolio and replacing balances with shorter-duration assets, including pursuing measured and diversified loan growth[202](index=202&type=chunk) [Item 4. Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls over financial reporting during the quarter - The CEO and CFO have concluded that the Company's disclosure controls and procedures are effective as of the end of the reporting period[206](index=206&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[206](index=206&type=chunk) [PART II - OTHER INFORMATION](index=71&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, unregistered sales of equity securities, other information, and a list of exhibits [Item 1. Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various lawsuits in the ordinary course of business, with accruals for probable losses, though ultimate resolution remains uncertain and could be material - The Company is a defendant in lawsuits arising in the ordinary course of business, and while it accrues for probable losses, the ultimate outcome could be material to future results[207](index=207&type=chunk) [Item 1A. Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) There are no material changes from the 2024 Form 10-K risk factors, except for a newly highlighted risk concerning significant changes in federal government operations, economic policies, and regulatory priorities that could cause economic disruptions and adversely impact the business - A new risk factor highlights that significant changes to U.S. government operations, economic policies (such as trade and tariffs), and regulatory priorities may cause economic disruptions that could adversely impact the business[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=73&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased under the company's 2023 Repurchase Program during the first quarter of 2025, with **497,047** shares remaining available for repurchase - No shares were repurchased under the company's 2023 Repurchase Program during the first quarter of 2025[218](index=218&type=chunk) - As of March 31, 2025, **497,047** shares remain available for repurchase under the authorized program[218](index=218&type=chunk) [Item 5. Other Information](index=73&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements during the first quarter of 2025 - No directors or executive officers adopted or terminated a Rule 10b5-1 trading plan or any other trading arrangement during the three months ended March 31, 2025[221](index=221&type=chunk) [Item 6. Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents, compensatory plan forms, officer certifications, and iXBRL data files

Farmers National Banc (FMNB) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a chan ...

Core Viewpoint - Farmers National Banc (FMNB) reported a revenue increase of 11.6% year-over-year for Q1 2025, with earnings per share (EPS) exceeding expectations, indicating a positive financial performance despite a slight revenue miss against consensus estimates [1]. Financial Performance - Revenue for the quarter was $44.68 million, up from the previous year's $40.00 million [1]. - EPS was reported at $0.39, an increase from $0.34 in the same quarter last year, representing a 14.71% surprise over the consensus estimate of $0.34 [1]. - The revenue surprise was -0.39% compared to the Zacks Consensus Estimate of $44.85 million [1]. Key Metrics - Efficiency Ratio was reported at 59.6%, better than the estimated 60.3% [4]. - Net Interest Margin stood at 2.9%, exceeding the average estimate of 2.8% [4]. - Average Earning Assets were $4.89 billion, slightly above the estimated $4.88 billion [4]. - Non-Performing Loans (NCOs) to Average Loans ratio was 0%, compared to the estimated 0.2% [4]. - Total Noninterest Income was $10.48 million, below the estimated $11.38 million [4]. - Trust fees were $2.64 million, lower than the estimated $2.97 million [4]. - Retirement plan consulting fees were $0.80 million, compared to the estimated $0.99 million [4]. - Service charges on deposit accounts were $1.76 million, slightly below the estimated $1.81 million [4]. - Net Interest Income (tax-equivalent) was $34.84 million, above the estimated $33.40 million [4]. - Net Interest Income was reported at $34.20 million, exceeding the estimated $33.28 million [4]. Stock Performance - Farmers National shares have returned -7.8% over the past month, compared to the Zacks S&P 500 composite's -4.2% change [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3].

Farmers National Banc (FMNB) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.34 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 14.71%. A quarter ago, it was expected that this bank would post earnings of $0.34 per share when it actually produced earnings of $0.39, delivering a surprise of 14.71%.Over the last four quarters, the compa ...