Core Insights - Farmers National Banc (FMNB) reported quarterly earnings of $0.42 per share, exceeding the Zacks Consensus Estimate of $0.41 per share, and showing an increase from $0.23 per share a year ago, resulting in an earnings surprise of +2.44% [1] - The company achieved revenues of $47.74 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.71% and up from $44.22 million year-over-year [2] - Farmers National has outperformed consensus EPS estimates three times over the last four quarters, indicating a positive trend in earnings performance [2] Earnings Outlook - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $47.4 million, and for the current fiscal year, it is $1.59 on revenues of $187 million [7] - The estimate revisions trend for Farmers National was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market [6] Industry Context - The Banks - Midwest industry, to which Farmers National belongs, is currently in the top 35% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - An investigation is being conducted by Halper Sadeh LLC regarding the fairness of the merger between Farmers National Banc Corp. and Middlefield Banc Corp. for Farmers shareholders [1] Group 1 - The law firm Halper Sadeh is specifically looking into whether the merger is equitable for Farmers shareholders [1] - Farmers shareholders are encouraged to explore their legal rights and options related to the merger [1] - Contact information for Halper Sadeh LLC is provided for shareholders seeking more information [1]

Transaction Overview - Farmers National Banc Corp 将以全股票方式收购 Middlefield Banc Corp，Middlefield Banc Corp 的每股将获得 2.60 股 FMNB 普通股[36] - 该交易的总价值约为 2.99 亿美元，或每股 36.17 美元[36] - 预计交易完成后，FMNB 现有股东将持有合并后公司约 64% 的股份，MBCN 股东将持有约 36% 的股份[36] Pro Forma Financial Highlights - 合并后的公司预计总资产将达到 74 亿美元，贷款总额将达到 50 亿美元，存款总额将达到 61 亿美元[13] - 预计 2027 年的股本回报率 (ROAA) 约为 1.5%[20] - 预计该交易将使每股收益 (EPS) 每年增长约 7%，内部收益率约为 20%[20] Strategic Rationale - 该合作关系将创建一个区域内领先的社区银行特许经营权，并使合并后的公司能够从显著的规模经济中受益[20] - 该交易提供了一个独特的机会，可以在现有市场进行收购，同时还可以战略性地扩展到俄亥俄州中部市场[20] - 通过增加 20 亿美元的资产，16 亿美元的贷款和 16 亿美元的存款，可以立即扩大规模[20] Market Presence - 合并后的公司在克利夫兰 MSA 的存款市场份额排名第二，市场份额为 19.5%[15] - 在阿克伦 MSA 的存款市场份额排名第二，市场份额为 17.8%[15] - 在扬斯敦 MSA 的存款市场份额排名第一，市场份额为 96.0%[15] Financial Impact - 预计交易完成后的有形普通股/有形资产 (TCE/TA) 比率约为 6.4%[20] - 有形账面价值回收期约为 3 年，第一天的有形账面价值稀释约为 4.4%[20]

Financial Data and Key Metrics Changes - Farmers National Bancorp reported solid operating and financial performance, marking the 171st consecutive quarter of profitability [10] - The company experienced loan growth of $34.4 million, representing an annualized growth rate of 4.2%, with commercial loans increasing by $30.1 million or 6% at an annualized rate [11] - The net interest margin expanded to 3%, the first time exceeding 3% in nearly 2.5 years [11] - The acquisition of Middlefield Bancorp is valued at $299 million, or $36.17 per share, representing approximately 163.5% of tangible book value and 14.1 times Middlefield's earnings for the last twelve months [12][13] Business Line Data and Key Metrics Changes - The merger with Middlefield will enhance Farmers' ability to grow organically, particularly in the Columbus market, which has shown strong loan growth [21] - The acquisition will push Farmers' total deposits over $6 billion and loans to approximately $5 billion, while maintaining strong capital levels [16] Market Data and Key Metrics Changes - Middlefield Bancorp has $2 billion in assets and a significant presence in attractive Ohio markets, which will complement Farmers' existing operations [4][5] - The merger will create a combined company with 83 branch locations across Northeast, Central, and Western Ohio, and Western Pennsylvania [8] Company Strategy and Development Direction - The merger is strategically important for Farmers, providing an opportunity to acquire scale in attractive Ohio communities and enhancing its position as a community bank of choice [5][6] - The company aims to leverage Middlefield's strong community presence to deepen relationships and expand its market share in Central Ohio [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the merger's potential to enhance growth rates and profitability, with a focus on wealth management services to drive relationship growth [26][27] - The company anticipates a pro forma total risk-based capital ratio of approximately 13.7% post-merger, indicating a strong capital position [16] Other Important Information - The transaction is expected to close in 2026, with a core conversion planned for August 2026, which will enhance digital capabilities and result in significant cost savings [9][10] - The acquisition will be Farmers' largest transaction by banking assets, marking its ninth acquisition in the last ten years [9] Q&A Session Summary Question: Impact of the deal on Farmers' growth rate - Management believes the acquisition will enhance organic growth capabilities, particularly in the Columbus market, which has shown strong loan growth [21] Question: Anticipated changes to the balance sheet post-deal - Management indicated that the marketplace is creating opportunities for restructuring the investment portfolio, which could facilitate loan growth [23][24] Question: Impact on CRE concentration ratio - The acquisition will raise the CRE concentration ratio slightly, but it remains well below the regulatory limit, with opportunities in both CRE and C&I spaces [31][33] Question: Capacity for additional deals - Management stated that the current focus is solely on the Middlefield acquisition and its stakeholders, with no immediate plans for additional deals [36] Question: Timing of cost savings from the core conversion - Cost savings will be back-end loaded into 2026, with some immediate savings post-close, and the bulk expected after the core conversion in August [46][47] Question: Ability to lower Middlefield's higher cost funding - Management believes there are opportunities to manage deposit costs more efficiently, potentially leading to margin expansion over the next 18 to 24 months [54] Question: Comfortable loan-to-deposit ratio post-merger - Management indicated a comfortable loan-to-deposit ratio of approximately 90% post-merger, presenting opportunities for growth [56]

[Third Quarter 2025 Earnings Overview](index=1&type=section&id=Third%20Quarter%202025%20Earnings%20Overview) This section summarizes Farmers National Banc Corp.'s Q3 2025 financial performance and strategic initiatives [Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) Farmers National Banc Corp. reported a significant increase in net income for Q3 2025 compared to Q3 2024, despite incurring pretax losses from asset sales and a charge for core platform transition consulting services. Excluding these items, adjusted net income and diluted EPS showed strong performance | Metric ($ in millions) | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | Net Income | $12.5M | $8.5M | +$4.0M | | Diluted EPS | $0.33 | $0.23 | +$0.10 | | Pretax losses (asset sales) | $1.0M | - | | | Core platform charge | $3.1M | - | | | Adjusted Net Income (non-GAAP) | $15.7M | - | | | Adjusted Diluted EPS (non-GAAP) | $0.42 | - | | - The new core platform contract is expected to save the Company approximately **$2.0 million** per year, or **$0.04** in diluted earnings per share, once the conversion is complete in August 2026[2](index=2&type=chunk) [CEO Commentary & Strategic Initiatives](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Initiatives) CEO Kevin J. Helmick highlighted the Company's strong financial results and deliberate actions to strengthen its operating platform and financial model. He also announced the merger with Middlefield Banc Corp., expected to close in Q1 2026, which will significantly increase assets and market presence - Farmers continues to deliver strong financial results, demonstrating the value of diversified financial services[3](index=3&type=chunk) - The Company has taken deliberate actions in 2025 to strengthen its operating platform and enhance its financial model for sustainable growth and profitability[3](index=3&type=chunk) - Merger with Middlefield Banc Corp. announced, expected to close in Q1 2026, increasing assets to over **$7.4 billion** and expanding market reach in Ohio and Pennsylvania[3](index=3&type=chunk) [Financial Condition](index=1&type=section&id=Financial%20Condition) This section analyzes the Company's balance sheet, including assets, securities, deposits, and stockholders' equity, highlighting key trends and changes [Balance Sheet Overview](index=1&type=section&id=Balance%20Sheet%20Overview) Total assets and loans experienced consistent growth, with commercial loans being a primary driver. The Company's balance sheet reflects an improving trend in key metrics | Metric ($ in billions) | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :----------- | :----------- | :----------- | :----------- | | Total Assets | $5.24B | $5.18B | $5.12B | | Loans | $3.34B | $3.30B | $3.27B | - Commercial loan balances increased by **$30.1 million**, representing a **6.0% annualized growth** from the prior quarter[4](index=4&type=chunk) [Securities Available for Sale](index=1&type=section&id=Securities%20Available%20for%20Sale) Securities available for sale increased, and the mark-to-market adjustment improved due to declining interest rates. The Company anticipates continued rate volatility | Metric ($ in billions) | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | Securities available for sale | $1.30B | $1.27B | $1.27B | - Mark-to-market adjustment improved by **$27.4 million** between June 30 and September 30, 2025, due to declining interest rates[5](index=5&type=chunk) [Deposits](index=1&type=section&id=Deposits) Total deposits showed slight growth quarter-over-quarter and a more substantial increase year-to-date. The Company successfully paid off brokered CDs and experienced strong organic deposit growth excluding public funds and brokered CDs - Total deposits increased slightly from June 30, 2025, and are up **$133.7 million** since December 31, 2024[6](index=6&type=chunk) - Paid off **$75.0 million** in brokered CDs during Q3 2025[6](index=6&type=chunk) - Excluding public funds and brokered CDs, deposit growth was **$108.3 million**, or **4.2% annualized**, since December 31, 2024[6](index=6&type=chunk) [Stockholders' Equity](index=1&type=section&id=Stockholders%27%20Equity) Total stockholders' equity increased significantly, primarily driven by an improvement in accumulated other comprehensive income and increased retained earnings | Metric ($ in millions) | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :-------------------- | :----------- | :----------- | :----------- | | Total Stockholders' Equity | $465.9M | $437.7M | $406.0M | - The increase in equity was primarily due to an improvement in accumulated other comprehensive income and increased retained earnings[7](index=7&type=chunk) [Credit Quality](index=1&type=section&id=Credit%20Quality) This section evaluates the Company's credit quality through key metrics such as non-performing loans, provision for credit losses, and net charge-offs [Key Credit Quality Metrics](index=1&type=section&id=Key%20Credit%20Quality%20Metrics) While non-performing loans increased due to a single large loan relationship, the provision for credit losses decreased significantly year-over-year. Annualized net charge-offs remained stable quarter-over-quarter, and the allowance for credit losses to total loans showed a slight increase | Metric | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Non-performing loans ($ in millions) | $35.3M | $27.8M | $22.8M | | Non-performing loans to total loans | 1.06% | 0.84% | 0.70% | | Loans 30-89 days delinquent ($ in millions) | $16.1M | $17.7M | $13.0M | | Provision for credit losses (Q3, $ in millions) | $1.4M | - | $7.0M (Q3 2024) | | Annualized net charge-offs to avg loans | 0.07% | 0.07% | 0.58% (Q3 2024) | | Allowance for credit losses to total loans | 1.18% | 1.17% | 1.10% | - A single loan relationship totaling **$7.3 million** moved into nonaccrual this quarter, secured by an apartment building in Troy, Michigan[10](index=10&type=chunk) - The provision in Q3 2024 was impacted by a single commercial office loan resulting in a **$4.4 million** charge-off and a **$1.2 million** specific reserve[11](index=11&type=chunk) [Income Statement Analysis](index=2&type=section&id=Income%20Statement%20Analysis) This section provides a detailed analysis of the Company's net interest income, noninterest income, and noninterest expenses for the reporting period [Net Interest Income](index=2&type=section&id=Net%20Interest%20Income) Net interest income and net interest margin both increased significantly year-over-year and quarter-over-quarter. This improvement was driven by higher yields on earning assets and lower funding costs on interest-bearing liabilities, benefiting from Federal Reserve rate cuts | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :---------------------- | :-------- | :-------- | :-------- | | Net Interest Income ($ in millions) | $36.3M | $34.9M | $31.9M | | Net Interest Margin | 3.00% | 2.91% | 2.66% | | Yield on earning assets | 4.88% | - | 4.79% | | Cost of interest-bearing liabilities | 2.51% | - | 2.84% | - Average interest-earning assets increased to **$4.92 billion** in Q3 2025, primarily due to a **$69.9 million** increase in average loan balances[12](index=12&type=chunk) - The Company expects its net interest margin to continue expanding into 2026 due to its liability-sensitive position and falling interest rates[12](index=12&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income declined year-over-year, primarily due to larger losses on the sale of securities and lower SBIC income. However, BOLI income, trust fees, retirement plan consulting fees, and investment commissions all increased, reflecting growth in fee-based businesses and recent acquisitions | Metric | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------------------- | :-------- | :-------- | :----------- | | Total Noninterest Income ($ in millions) | $11.4M | $12.3M | -$0.9M | | Service charge income on deposit accounts ($ in millions) | $1.9M | $2.0M | -$0.118M | | BOLI income ($ in thousands) | $852K | $688K | +$164K | | Trust fees ($ in millions) | $2.7M | $2.5M | +$0.2M | | Losses on sale of AFS securities ($ in thousands) | $927K | $403K | +$524K (loss) | | Retirement plan consulting fees ($ in millions) | $1.1M | $677K | +$0.423M | | Investment commissions ($ in thousands) | $658K | $476K | +$0.182M | | SBIC income ($ in thousands) | $258K | $1.1M | -$0.842M | - The Company restructured **$28.5 million** of securities in Q3 2025, reinvesting proceeds into securities yielding approximately **220 basis points** more[14](index=14&type=chunk) - Growth in retirement plan consulting fees is primarily due to the acquisition of Crest Retirement Advisors LLC in late December 2024[14](index=14&type=chunk) [Noninterest Expense](index=2&type=section&id=Noninterest%20Expense) Noninterest expense increased year-over-year, driven by higher salaries and employee benefits due to annual raises, acquisitions, and increased commission expense. Occupancy and equipment expenses also rose, and a significant charge was incurred for core platform transition consulting services | Metric ($ in millions) | Q3 2025 | Q3 2024 | Change (YoY) | | :-------------------------- | :-------- | :-------- | :----------- | | Total Noninterest Expense | $31.7M | $27.2M | +$4.5M | | Salaries and employee benefits | $16.0M | $14.9M | +$1.1M | | Occupancy and equipment expense | $4.4M | $4.0M | +$0.4M | | FDIC and state/local taxes | $1.2M | $1.5M | -$0.268M | | Core platform consulting charge | $3.1M | - | | | Core processing expense | $1.4M | $1.2M | +$0.2M | - Salaries and employee benefits increased due to annual raises, the acquisition of Crest Retirement in Q4 2024, and higher commission expense[15](index=15&type=chunk) [Liquidity](index=3&type=section&id=Liquidity) The Company maintains strong liquidity with substantial FHLB borrowing capacity and available-for-sale securities for pledging. Its loan-to-deposit ratio indicates a healthy funding position | Metric | Sep 30, 2025 | | :-------------------------------- | :----------- | | FHLB borrowing capacity ($ in millions) | $618.1M | | Available for sale securities (for pledging, $ in millions) | $353.2M | | Loan to deposit ratio | 75.9% | | Average deposit balance per account (excl. collateralized, $) | $26,235 | [Company Information](index=3&type=section&id=Company%20Information) Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $5.2 billion in banking assets. It operates a full-service national bank and a trust company across Ohio and Pennsylvania, with total wealth management assets under care of $4.6 billion - Farmers National Banc Corp. is a diversified financial services company founded in 1887, headquartered in Canfield, Ohio[17](index=17&type=chunk) - The Company has **$5.2 billion** in banking assets and **62 banking locations** across Ohio and Pennsylvania[17](index=17&type=chunk) - Total wealth management assets under care were **$4.6 billion** at September 30, 2025[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section clarifies the use of non-GAAP financial measures, such as tangible common equity ratio and adjusted net income, which are provided to offer a more complete understanding of the Company's operational results and trends, supplementing GAAP figures - Non-GAAP financial measures are used to provide a more complete understanding of underlying operational results and trends[18](index=18&type=chunk) - These measures are not considered in isolation or as a substitute for GAAP numbers[18](index=18&type=chunk) [Cautionary Statements Regarding Forward-Looking Statements](index=3&type=section&id=Cautionary%20Statements%20Regarding%20Forward-Looking%20Statements) This section provides a standard cautionary statement regarding forward-looking statements, emphasizing that actual results may differ materially from expectations due to various factors, including economic conditions and regulatory changes. The Company does not undertake to update these statements - Forward-looking statements represent management's current expectations and are subject to inherent uncertainties and factors outside of Farmers' control[19](index=19&type=chunk) - Actual results and financial condition may differ materially due to significant changes in economic conditions, monetary policy, and other factors detailed in SEC filings[19](index=19&type=chunk) [Consolidated Financial Tables](index=3&type=section&id=Consolidated%20Financial%20Tables) This section presents detailed consolidated financial statements and key ratios, including income statements, balance sheets, capital, liquidity, and asset quality metrics [Consolidated Statements of Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income) The consolidated statements of income show a strong increase in net interest income and net income for both the three and nine months ended September 30, 2025, compared to the prior year. Noninterest income also grew for the nine-month period, while the provision for credit losses decreased significantly | Metric ($ in thousands) | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | YoY Q3 Change | YoY 9M Change | | :-------------------------- | :-------- | :-------- | :-------- | :-------- | :------------ | :------------ | | Total interest income | $59,366 | $57,923 | $174,374 | $169,823 | | 2.7% | | Total interest expense | $23,059 | $26,047 | $68,949 | $74,194 | | -7.1% | | Net interest income | $36,307 | $31,876 | $105,425 | $95,629 | | 10.2% | | Provision for credit losses | $1,419 | $7,008 | $4,763 | $7,671 | | -37.9% | | Noninterest income | $11,430 | $12,340 | $34,032 | $30,302 | | 12.3% | | Net income | $12,461 | $8,535 | $39,949 | $31,558 | | 26.6% | | Diluted earnings per share | $0.33 | $0.23 | $1.06 | $0.84 | | | [Performance Ratios](index=4&type=section&id=Performance%20Ratios) Key performance ratios demonstrate improved profitability and efficiency. Net interest margin, return on average assets, and return on average equity all increased year-over-year for both the quarter and nine-month periods. The efficiency ratio also improved | Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :---------------------------------------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net Interest Margin (Annualized) | 3.00% | 2.91% | 2.66% | 2.92% | 2.69% | | Efficiency Ratio (Tax equivalent basis) | 62.66% | 56.66% | 58.47% | 59.68% | 60.24% | | Efficiency Ratio (Tax equivalent basis) excluding core conversion, acquisition costs and other extraordinary items (b) | 56.43% | 55.66% | 59.05% | 57.20% | 60.26% | | Return on Average Assets (Annualized) | 0.96% | 1.08% | 0.66% | 1.04% | 0.83% | | Return on Average Equity (Annualized) | 11.26% | 13.08% | 8.18% | 12.46% | 10.51% | | Return on Average Tangible Assets (Non GAAP) | 1.00% | 1.13% | 0.69% | 1.07% | 0.86% | | Return on Average Tangible Equity (Non GAAP) | 19.46% | 23.37% | 14.94% | 22.18% | 19.95% | [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) The balance sheet shows growth in total assets, loans, and stockholders' equity. Total deposits also increased, with a notable reduction in brokered time deposits | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | Total Assets | $5,235,575 | $5,178,428 | $5,118,924 | | Debt securities available for sale | $1,301,766 | $1,274,899 | $1,266,553 | | Loans | $3,337,780 | $3,303,359 | $3,268,346 | | Net Loans | $3,298,252 | $3,264,796 | $3,232,483 | | Total deposits | $4,400,515 | $4,396,417 | $4,266,779 | | Brokered time deposits | $0 | $74,988 | $74,951 | | Total liabilities | $4,769,626 | $4,740,680 | $4,712,896 | | Stockholders' Equity | $465,949 | $437,748 | $406,028 | | Book value per share | $12.38 | $11.63 | $10.80 | | Tangible book value per share (Non GAAP) | $7.44 | $6.67 | $5.80 | [Capital and Liquidity Ratios](index=5&type=section&id=Capital%20and%20Liquidity%20Ratios) The Company's capital and liquidity ratios remained strong, with estimated increases across all key capital ratios (Common Equity Tier 1, Total Risk Based, Tier 1 Risk Based, and Tier 1 Leverage) at September 30, 2025, compared to prior periods | Metric | Sep 30, 2025 (Est.) | Jun 30, 2025 | Dec 31, 2024 | | :-------------------------- | :------------------ | :----------- | :----------- | | Common Equity Tier 1 Capital Ratio | 11.74% | 11.56% | 11.14% | | Total Risk Based Capital Ratio | 15.23% | 15.04% | 14.55% | | Tier 1 Risk Based Capital Ratio | 12.22% | 12.05% | 11.62% | | Tier 1 Leverage Ratio | 8.75% | 8.67% | 8.36% | | Equity to Asset Ratio | 8.90% | 8.45% | 7.93% | | Tangible Common Equity Ratio (b) | 5.54% | 5.03% | 4.42% | | Net Loans to Assets | 63.00% | 63.05% | 63.15% | | Loans to Deposits | 75.85% | 75.14% | 76.60% | [Asset Quality Ratios](index=5&type=section&id=Asset%20Quality%20Ratios) Asset quality metrics show an increase in non-performing loans and assets, but the allowance for credit losses to total loans remains stable. Net charge-offs for the quarter were consistent with the previous quarter but significantly lower than the prior year | Metric | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Non-performing loans ($ in thousands) | $35,344 | $27,819 | $22,818 | | Non-performing assets ($ in thousands) | $35,519 | $28,052 | $22,903 | | Loans 30 - 89 days delinquent ($ in thousands) | $16,083 | $17,727 | $13,032 | | Net Charge-offs (Qtr, $ in thousands) | $536 | $572 | $635 | | Annualized Net Charge-offs to Average Net Loans | 0.07% | 0.07% | 0.08% | | Allowance for Credit Losses to Total Loans | 1.18% | 1.17% | 1.10% | | Non-performing Loans to Total Loans | 1.06% | 0.84% | 0.70% | | Allowance to Non-performing Loans | 111.84% | 138.62% | 157.17% | [End of Period Loan Balances](index=5&type=section&id=End%20of%20Period%20Loan%20Balances) Commercial real estate loans showed strong growth, while residential real estate and HELOCs also increased. Commercial loans experienced a slight decrease, and consumer and agricultural loans remained relatively stable | Loan Type ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | Commercial real estate | $1,428,583 | $1,385,162 | $1,382,714 | | Commercial | $351,213 | $363,009 | $349,966 | | Residential real estate | $850,112 | $849,443 | $845,081 | | HELOC | $176,609 | $171,312 | $158,014 | | Consumer | $251,557 | $253,363 | $259,954 | | Agricultural loans | $269,025 | $270,599 | $262,392 | | Total, excluding net deferred loan costs | $3,327,099 | $3,292,888 | $3,258,121 | [End of Period Customer Deposit Balances](index=5&type=section&id=End%20of%20Period%20Customer%20Deposit%20Balances) Total customer deposits increased, with growth in interest-bearing demand, money market, and certificate of deposit accounts. Noninterest-bearing demand deposits remained stable | Deposit Type ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | Noninterest-bearing demand | $994,604 | $995,866 | $965,507 | | Interest-bearing demand | $1,443,422 | $1,388,596 | $1,366,255 | | Money market | $761,788 | $748,770 | $682,558 | | Savings | $410,165 | $416,795 | $414,796 | | Certificate of deposit | $790,536 | $771,403 | $762,712 | | Total customer deposits | $4,400,515 | $4,321,430 | $4,191,828 | [Noninterest Income Details](index=6&type=section&id=Noninterest%20Income%20Details) Detailed noninterest income shows varied performance. While security losses increased and service charges on deposits slightly declined, BOLI income, trust fees, retirement plan consulting fees, and investment commissions all saw growth, contributing to the overall increase in noninterest income for the nine-month period | Income Source ($ in thousands) | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Service charges on deposit accounts | $1,874 | $1,992 | $5,381 | $5,421 | | Bank owned life insurance income, including death benefits | $852 | $688 | $2,494 | $2,046 | | Trust fees | $2,745 | $2,544 | $7,982 | $7,398 | | Insurance agency commissions | $1,395 | $1,416 | $4,964 | $4,199 | | Security gains (losses), including fair value changes for equity securities | ($927) | ($403) | ($2,205) | ($2,647) | | Retirement plan consulting fees | $1,060 | $677 | $2,641 | $1,918 | | Investment commissions | $658 | $476 | $1,908 | $1,386 | | Debit card and EFT fees | $2,068 | $1,993 | $5,951 | $5,320 | | Other noninterest income | $954 | $2,619 | $3,336 | $3,892 | | Total Noninterest Income | $11,430 | $12,340 | $34,032 | $30,302 | [Noninterest Expense Details](index=6&type=section&id=Noninterest%20Expense%20Details) Detailed noninterest expenses show increases in salaries and employee benefits, occupancy and equipment, and core processing charges. A significant system conversion/merger related cost was incurred in Q3 2025, contributing to the overall rise in expenses | Expense Type ($ in thousands) | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :-------- | :-------- | :-------- | :-------- | | Salaries and employee benefits | $15,992 | $14,874 | $46,880 | $44,501 | | Occupancy and equipment | $4,370 | $3,968 | $12,627 | $11,512 | | FDIC insurance and state and local taxes | $1,212 | $1,480 | $3,736 | $4,010 | | Professional fees | $990 | $1,084 | $3,213 | $3,532 | | System conversion / Merger related costs | $3,123 | $0 | $3,123 | $0 | | Advertising | $466 | $435 | $1,376 | $1,312 | | Intangible amortization | $718 | $629 | $2,188 | $1,947 | | Core processing charges | $1,412 | $1,186 | $4,210 | $3,420 | | Other noninterest expenses | $3,396 | $3,419 | $10,028 | $10,283 | | Total Noninterest Expense | $31,679 | $27,075 | $87,381 | $80,517 | [Average Balance Sheets and Related Yields and Rates](index=6&type=section&id=Average%20Balance%20Sheets%20and%20Related%20Yields%20and%20Rates) Average earning assets increased, primarily driven by loan growth. The yield on earning assets improved, while the cost of interest-bearing liabilities decreased, leading to an expansion in net interest margin and interest rate spread for both the three and nine months ended September 30, 2025 | Metric | Q3 2025 Average Balance ($ in thousands) | Q3 2025 Yield/Rate | Q3 2024 Average Balance ($ in thousands) | Q3 2024 Yield/Rate | | :-------------------------------- | :---------------------- | :----------------- | :---------------------- | :----------------- | | Loans | $3,311,535 | 5.88% | $3,241,603 | 5.81% | | Total earning assets | $4,922,275 | 4.88% | $4,890,344 | 4.79% | | Total interest-bearing deposits | $3,439,913 | 2.37% | $3,294,014 | 2.62% | | Total interest-bearing liabilities | $3,676,441 | 2.51% | $3,671,034 | 2.84% | | Net interest margin | - | 3.00% | - | 2.66% | | Metric | 9M 2025 Average Balance ($ in thousands) | 9M 2025 Yield/Rate | 9M 2024 Average Balance ($ in thousands) | 9M 2024 Yield/Rate | | :-------------------------------- | :---------------------- | :----------------- | :---------------------- | :----------------- | | Loans | $3,282,794 | 5.80% | $3,212,799 | 5.76% | | Total earning assets | $4,900,563 | 4.80% | $4,837,792 | 4.73% | | Total interest-bearing deposits | $3,414,640 | 2.36% | $3,233,379 | 2.48% | | Total interest-bearing liabilities | $3,669,478 | 2.51% | $3,626,290 | 2.73% | | Net interest margin | - | 2.92% | - | 2.69% | [Reconciliation of Tangible Assets](index=8&type=section&id=Reconciliation%20of%20Tangible%20Assets) This table provides a reconciliation of total assets to tangible assets by deducting goodwill and other intangibles, showing the tangible asset base for various periods | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | Total Assets | $5,235,575 | $5,178,428 | $5,118,924 | | Less Goodwill and other intangibles | $186,013 | $186,731 | $188,200 | | Tangible Assets | $5,049,562 | $4,991,697 | $4,930,724 | | Average Assets | $5,178,998 | $5,132,661 | $5,159,901 | | Less average Goodwill and other intangibles | $186,479 | $187,209 | $188,256 | | Average Tangible Assets | $4,992,519 | $4,945,452 | $4,971,645 | [Reconciliation of Common Stockholders' Equity to Tangible Common Equity](index=8&type=section&id=Reconciliation%20of%20Common%20Stockholders%27%20Equity%20to%20Tangible%20Common%20Equity) This reconciliation shows the calculation of tangible common equity by subtracting goodwill and other intangibles from common stockholders' equity, providing a clearer view of the Company's tangible capital | Metric ($ in thousands) | Sep 30, 2025 | Jun 30, 2025 | Dec 31, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | | Stockholders' Equity | $465,949 | $437,748 | $406,028 | | Less Goodwill and other intangibles | $186,013 | $186,731 | $188,200 | | Tangible Common Equity | $279,936 | $251,017 | $217,828 | | Average Stockholders' Equity | $442,556 | $425,249 | $428,646 | | Less average Goodwill and other intangibles | $186,479 | $187,209 | $188,256 | | Average Tangible Common Equity | $256,077 | $238,040 | $240,390 | [Reconciliation of Net Income, Less Merger and Certain Items](index=8&type=section&id=Reconciliation%20of%20Net%20Income%2C%20Less%20Merger%20and%20Certain%20Items) This reconciliation adjusts net income and related performance ratios by excluding the after-tax impact of system conversion/acquisition costs and net losses/gains on asset/security sales, providing a non-GAAP view of core operational profitability | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :---------------------------------------------------------------- | :-------- | :-------- | :-------- | :-------- | | Net income ($ in thousands) | $12,461 | $8,535 | $39,949 | $31,558 | | System conversion / Acquisition related costs - after tax ($ in thousands) | $2,467 | $0 | $2,467 | $0 | | Net loss (gain) on asset/security sales - after tax ($ in thousands) | $760 | ($32) | $1,680 | $2,050 | | Net income - Adjusted ($ in thousands) | $15,688 | $8,503 | $44,097 | $33,608 | | Diluted EPS excluding merger and certain items | $0.42 | $0.23 | $1.17 | $0.90 | | Return on Average Assets excluding system conversion, merger and certain items (Annualized) | 1.21% | 0.66% | 1.14% | 0.88% | | Return on Average Equity excluding system conversion, merger and certain items (Annualized) | 14.18% | 8.15% | 13.76% | 11.19% | | Return on Average Tangible Equity excluding system conversion, merger costs and certain items (Annualized) | 24.51% | 14.88% | 24.48% | 21.24% | | Efficiency ratio excluding certain items | 56.43% | 59.05% | 57.20% | 60.26% | [Net Interest Margin Excluding Acquisition Marks and PPP Interest and Fees](index=9&type=section&id=Net%20Interest%20Margin%20Excluding%20Acquisition%20Marks%20and%20PPP%20Interest%20and%20Fees) This reconciliation provides the net interest margin adjusted to exclude the impact of acquisition marks and PPP interest and fees, offering a normalized view of the Company's core lending profitability | Metric | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :------------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Net interest income, tax equated ($ in thousands) | $36,940 | $32,483 | $107,332 | $97,485 | | Acquisition marks ($ in thousands) | $1,677 | $2,123 | $5,559 | $6,884 | | PPP interest and fees ($ in thousands) | $0 | $1 | $0 | $2 | | Adjusted and annualized net interest income ($ in thousands) | $141,052 | $121,436 | $135,697 | $120,799 | | Average earning assets ($ in thousands) | $4,922,275 | $4,890,344 | $4,900,563 | $4,837,792 | | Less PPP average balances ($ in thousands) | $89 | $112 | $98 | $167 | | Adjusted average earning assets ($ in thousands) | $4,922,186 | $4,890,226 | $4,900,465 | $4,837,625 | | Net interest margin excluding marks and PPP interest and fees | 2.87% | 2.48% | 2.77% | 2.50% |

Core Viewpoint - Farmers National Banc Corp. and Middlefield Banc Corp. have announced a definitive merger agreement, where Middlefield will merge into Farmers in an all-stock transaction [1]. Company Summary - Farmers National Banc Corp. is the holding company for The Farmers National Bank of Canfield [1]. - Middlefield Banc Corp. is the holding company for The Middlefield Banking Company [1]. Transaction Details - The merger will be executed as an all-stock transaction [1].

CANFIELD, Ohio--(BUSINESS WIRE)--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 w. ...

Core Points - KBRA affirms the senior unsecured debt rating of BBB for Farmers National Banc Corp. [1] - The subordinated debt rating is affirmed at BBB- and the short-term debt rating is K3 for Farmers National Banc Corp. [1] - For its subsidiary, The Farmers National Bank of Canfield, KBRA affirms the deposit and senior unsecured debt ratings of BBB+ [1] - The subordinated debt rating for the subsidiary is affirmed at BBB and the short-term deposit and debt ratings are K2 [1] - The Outlook for all ratings is stable [1]

Core Viewpoint - Farmers National Banc (FMNB) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors play a role in this relationship, as they adjust their valuations based on earnings estimates, leading to stock price fluctuations [3]. Business Improvement Indicators - The upgrade in earnings estimates for Farmers National suggests an improvement in the company's underlying business, which could lead to an increase in stock price as investors respond positively [4]. Importance of Earnings Estimate Revisions - Research indicates a strong correlation between earnings estimate revisions and stock movements, emphasizing the importance of tracking these revisions for investment decisions [5]. - The Zacks Rank system effectively utilizes earnings estimate revisions to classify stocks, providing a structured approach to investment [6]. Specific Earnings Estimates for Farmers National - Farmers National is projected to earn $1.59 per share for the fiscal year ending December 2025, with no year-over-year change expected [7]. - Over the past three months, the Zacks Consensus Estimate for Farmers National has increased by 6%, reflecting analysts' positive sentiment [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9]. - The upgrade of Farmers National to a Zacks Rank 1 places it among the top 5% of stocks covered by Zacks, suggesting potential for market-beating returns in the near term [9].

Core Viewpoint - Farmers National Banc (FMNB) is experiencing solid improvement in earnings estimates, which is likely to continue driving its stock price momentum [1][2] Earnings Estimate Revisions - Analysts have shown growing optimism regarding FMNB's earnings prospects, leading to a rising trend in estimate revisions that should positively impact the stock price [2] - For the current quarter, FMNB is expected to earn $0.41 per share, reflecting a year-over-year increase of +78.3% and a 12.5% increase in consensus estimates over the last 30 days [6] - For the full year, the expected earnings per share is $1.59, indicating a year-over-year change of +24.2%, with a 6.71% increase in consensus estimates due to positive revisions [7][8] Zacks Rank and Performance - FMNB has achieved a Zacks Rank 2 (Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock outperformance [9] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [9] Stock Performance - The stock has gained 10.3% over the past four weeks, driven by solid estimate revisions and positive earnings growth prospects [10]