Core Viewpoint - Investors should closely monitor Farmers National Banc Corp. (FMNB) stock due to significant movements in the options market, particularly the high implied volatility of the Dec 19, 2025 $2.50 Call option [1] Company Analysis - Farmers National Banc is currently rated as Zacks Rank 3 (Hold) within the Banks – Midwest industry, which is in the top 11% of the Zacks Industry Rank [3] - Over the past 30 days, two analysts have raised their earnings estimates for the current quarter, resulting in an increase of the Zacks Consensus Estimate from 42 cents per share to 47 cents [3] Options Market Insights - The high implied volatility suggests that options traders are anticipating a significant price movement for Farmers National Banc shares, potentially indicating an upcoming event that could lead to a major rally or sell-off [2][4] - Seasoned options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected [4]

Financial Performance - Net income for the three months ended September 2025 was $12,461, compared to $8,535 for the same period in 2024, reflecting a year-over-year increase of 46.5%[9] - Net income for the nine months ended September 30, 2025, was $39,949,000, an increase from $31,558,000 for the same period in 2024, representing a growth of approximately 26.5%[13] - Earnings per share (EPS) for the nine months ended September 2025 was $1.07, up from $0.85 in the same period of 2024, indicating a growth of 25.9%[8] - Total comprehensive income for the nine months ended September 2025 was $78,129, compared to $53,161 for the same period in 2024, showing an increase of 47%[9] - Total consolidated revenues for the nine months ended September 30, 2025, were $200.1 million, an increase from $175.2 million in the same period of 2024, representing a growth of approximately 14.2%[138] Asset and Equity Growth - Total assets increased to $5,235,575,000 as of September 30, 2025, up from $5,118,924,000 on December 31, 2024, representing a growth of 2.29%[7] - Total stockholders' equity grew to $465,949,000, up from $406,028,000, a significant increase of 14.69%[7] - The total stockholders' equity as of September 30, 2025, was $465,949,000, up from $439,678,000 as of September 30, 2024, representing an increase of approximately 6%[11] - The balance of common stock as of September 30, 2025, was $366,214,000, up from $365,542,000 as of September 30, 2024[11] Loan and Deposit Activity - Net loans rose to $3,298,252,000, an increase of 2.03% from $3,232,483,000 in the previous period[7] - Total deposits reached $4,400,515,000, reflecting a 3.13% increase from $4,266,779,000[7] - The company experienced a net change in deposits of $133,736,000 for the nine months ended September 30, 2025, compared to $184,451,000 for the same period in 2024, reflecting a decrease of approximately 27.5%[13] - Total loans increased to $3,327,099, up from $3,258,121, representing a growth of 2.1% year-over-year[32] Credit Losses and Provisions - The allowance for credit losses increased to $39,528,000 from $35,863,000, indicating a rise of 7.41%[7] - The provision for credit losses for the nine months ended September 2025 was $7,932, compared to $5,109 in the same period of 2024, reflecting a rise of 55.1%[8] - The provision for credit losses for the three months ended September 30, 2025, was $1,501, compared to a provision of $6,807 for the same period in 2024, showing a decrease of 77.9%[35] - The company reported a provision for credit losses of $5,109,000 for the nine months ended September 30, 2025, down from $7,932,000 for the same period in 2024, indicating a decrease of approximately 35.5%[13] Noninterest Income and Expenses - Total noninterest income for the three months ended September 30, 2025, was $11,430 thousand, compared to $12,340 thousand for the same period in 2024, reflecting a decrease in service charges and trust fees[75] - For the nine months ended September 30, 2025, total noninterest income was $34,032 thousand, an increase from $30,302 thousand in the same period of 2024, driven by higher trust fees and debit card fees[75] - Total noninterest expenses for the nine months ended September 2025 were $87,381, an increase from $80,517 in the same period of 2024, which is a rise of 8.5%[8] Securities and Investments - The available-for-sale securities portfolio had an amortized cost of $1,497,403, with a fair value of $1,301,766, resulting in gross unrealized losses of $199,767 as of September 30, 2025[26] - The Company reported proceeds from sales of available-for-sale securities of $28,750 for the three months ended September 30, 2025, with gross losses of $960[26] - The Company has not recorded an allowance for credit losses on available-for-sale securities as of September 30, 2025, as unrealized losses are attributed to noncredit-related factors[29] Cash and Liquidity - The company has maintained a strong liquidity position with total cash and cash equivalents of $92,345,000, up from $85,738,000, an increase of 7.88%[7] - The ending cash and cash equivalents as of September 30, 2025, were $92,345,000, down from $189,136,000 as of September 30, 2024, indicating a decrease of approximately 51%[13] Mergers and Acquisitions - The Company acquired Crest Retirement Advisors, LLC for $600,000, with an additional $400,000 in contingent consideration[24] - The Company announced a definitive merger agreement with Middlefield Banc Corp., valued at approximately $299.0 million, expected to close in the first quarter of 2026[157][158] Regulatory Capital Ratios - As of September 30, 2025, the common equity tier 1 capital ratio for the consolidated entity is 11.62%, significantly above the minimum requirement of 4.5%[132] - The total risk-based capital ratio for the consolidated entity stands at 15.08%, exceeding the minimum requirement of 8.0%[132] - The bank's tier 1 leverage ratio is reported at 9.12%, well above the minimum requirement of 4.0%[132]

Core Insights - Farmers National Banc Corp (FMNB) is currently under investigation regarding its merger with Middlefield Banc Corp, which proposes that Middlefield shareholders receive 2.6 shares of FMNB for each Middlefield share [2][4] - Gina A. Richardson, a director at FMNB, purchased 1,833 shares at $12.99 each, increasing her total ownership to 13,823 shares [1][4] - FMNB's stock price is currently at $13.14, reflecting a 1.55% increase, with a trading range over the past year between $16.29 and $11.58, indicating volatility [3][4] Company Overview - FMNB provides a range of banking services and has a market capitalization of approximately $494.68 million [3] - The stock has shown significant trading activity, with a volume of 140,458 shares on NASDAQ, reflecting investor interest amid the ongoing merger investigation [3]

Core Viewpoint - Monteverde & Associates PC is investigating the proposed sale of Middlefield Banc Corp. to Farmers National Banc Corp., focusing on whether the deal is fair for Middlefield shareholders [1]. Group 1: Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has recovered millions for shareholders [1]. - The firm is located in the Empire State Building, New York City, and specializes in class action securities litigation [2]. Group 2: Transaction Details - Under the proposed transaction, Middlefield shareholders will receive 2.6 shares of Farmers common stock for each share of Middlefield common stock [1].

Core Insights - Class Action Attorney Juan Monteverde and his firm, Monteverde & Associates PC, are investigating Farmers National Banc Corp. regarding its merger with Middlefield Banc Corp. [1] - The proposed merger terms state that Middlefield shareholders will receive 2.6 shares of Farmers common stock for each share of Middlefield common stock [1] Company Overview - Monteverde & Associates PC is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report and has a successful track record in recovering millions for shareholders [1][2] - The firm operates from the Empire State Building in New York City and specializes in class action securities litigation [2] Legal Context - The investigation aims to determine if the merger deal is fair for Middlefield shareholders [1] - The firm encourages shareholders with concerns to reach out for additional information at no cost [2]

Core Viewpoint - Farmers National Banc (FMNB) has received a Zacks Rank upgrade to 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Business Improvement Indicators - The increase in earnings estimates and the Zacks rating upgrade suggest an improvement in Farmers National's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. - The Zacks Consensus Estimate for Farmers National indicates expected earnings of $1.60 per share for the fiscal year ending December 2025, with a 0.6% increase in estimates over the past three months [8]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - The upgrade to Zacks Rank 2 places Farmers National in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

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Core Viewpoint - Farmers National Banc Corp. and Middlefield Banc Corp. have announced a definitive merger agreement, indicating a strategic move to enhance their business operations and market presence [1]. Group 1: Merger Details - The merger is expected to bring intended benefits that align with Farmers' current business strategies and future performance expectations [2][4]. - The announcement highlights the companies' commitment to leveraging the merger for improved results and operational efficiencies [1]. Group 2: Forward-Looking Statements - Forward-looking statements made during the presentation are based on current expectations and are subject to uncertainties and risks that could affect actual outcomes [2][3]. - The companies caution that actual results may differ materially from those projected in forward-looking statements due to various unpredictable factors [3][4].

Summary of Farmers National Bancorp and Middlefield Bancorp Merger Announcement Company and Industry - **Companies Involved**: Farmers National Bancorp (FMNB) and Middlefield Bancorp - **Industry**: Banking and Financial Services Core Points and Arguments - **Merger Announcement**: Farmers National Bancorp and Middlefield Bancorp announced a definitive merger agreement to merge Middlefield into Farmers, increasing total assets to $7.2 billion from $5.2 billion and Middlefield's $2 billion [4][9] - **Strategic Rationale**: The merger aims to enhance scale in attractive Ohio markets, particularly in Greater Columbus, where Middlefield has a significant deposit market share of $163 million [5][6] - **Market Expansion**: The merger will expand Farmers' presence in Central Ohio and strengthen its position in Northeast Ohio, where Middlefield is a leading community bank [6][8] - **Branch Network**: Post-merger, the combined company will operate 83 branch locations across Northeast, Central, and Western Ohio, and Western Pennsylvania [8] - **Financial Implications**: The transaction is valued at $299 million, with Middlefield shareholders receiving 2.6 shares of Farmers common stock for each share held, representing a purchase price of approximately 163.5% of tangible book value [12][13] Financial Performance Highlights - **Third Quarter Results**: Farmers reported solid loan growth of $34.4 million (annualized growth rate of 4.2%) and a net interest margin expansion to 3%, the highest in 2.5 years [11] - **Cost Savings**: The merger is expected to yield annual savings of over $2 million post-core conversion, with a total estimated cost savings of 38% based on Middlefield's expense run rate [12][15] - **Earnings Accretion**: Diluted earnings per share accretion for 2027 is estimated at approximately 7%, with tangible book value dilution expected to be earned back in about three years [14] Additional Important Information - **Integration Experience**: Farmers has a successful track record with previous mergers, having completed seven bank acquisitions in the last ten years, which is expected to mitigate integration risks [9][16] - **Core Conversion**: The transition to a new core platform (Jack Henry) is scheduled for August 2026, which will enhance digital capabilities and result in significant cost savings [9][40] - **Loan Portfolio Review**: A comprehensive review of Middlefield's $1.6 billion loan portfolio was conducted, with a gross credit mark estimated at $28.5 million, representing 1.74% of the portfolio [14] - **Future Growth Potential**: The merger is anticipated to enhance Farmers' organic growth capabilities, particularly in the Columbus market, which is recognized for its economic development [18][22] Conclusion The merger between Farmers National Bancorp and Middlefield Bancorp is positioned as a strategic move to enhance market presence, financial performance, and operational efficiency, with a strong focus on community banking and customer-centric services. The anticipated benefits include significant cost savings, increased loan growth potential, and a robust integration plan leveraging past merger experiences.