Financial Performance - Net income for the three months ended September 30, 2024, was $8,535,000, down from $13,314,000 in the same period of 2023, a decline of 35.5%[9] - Earnings per share (diluted) decreased to $0.23 for the three months ended September 30, 2024, compared to $0.36 for the same period in 2023, a drop of 36.1%[8] - The company reported a total comprehensive income of $48,817,000 for the three months ended September 30, 2024, compared to a loss of $45,371,000 in the same period of 2023[9] - Net interest income after provision for credit losses was $24,868,000 for the three months ended September 30, 2024, down from $33,525,000 for the same period in 2023, a decrease of 25.9%[8] - Noninterest income totaled $12,340,000 for the three months ended September 30, 2024, compared to $9,831,000 in the same period of 2023, an increase of 25.6%[8] Assets and Liabilities - Total assets increased to $5,236,503,000 as of September 30, 2024, compared to $5,078,350,000 at December 31, 2023, reflecting a growth of 3.1%[5] - Total liabilities increased to $4,796.8 million as of September 30, 2024, from $4,673.9 million at December 31, 2023, an increase of 2.6%[6] - The company’s total stockholders' equity rose to $439,678,000 as of September 30, 2024, compared to $404,415,000 at December 31, 2023, an increase of 8.7%[6] Loans and Credit Losses - Net loans rose to $3,244,331,000, up from $3,163,687,000, marking an increase of 2.5%[5] - The allowance for credit losses increased to $36,186,000 as of September 30, 2024, from $34,440,000 at December 31, 2023[5] - The provision for credit losses for the three months ended September 30, 2024, was $6,807,000, compared to $182,000 for the same period in 2023, showing a significant increase[39] - Loans charged off during the three months ended September 30, 2024, totaled $5,116,000, compared to $525,000 for the same period in 2023, indicating a rise in charge-offs[39] Investment and Acquisitions - The company completed a merger with Emclaire Financial Corp., resulting in a transaction value of approximately $92.6 million, which included issuing 4.2 million shares and cash of $33.4 million[23] - Goodwill recorded from the Emclaire acquisition amounted to $72.9 million, attributed to expected synergies and market expansion opportunities[24] - The total consideration paid for the acquisition of Emclaire was $92.642 million, consisting of $33.440 million in cash and $59.202 million in stock[26] Capital Adequacy - The common equity tier 1 capital ratio for the consolidated entity is 10.91%, exceeding the minimum requirement of 4.5%[176] - The total risk-based capital ratio for the consolidated entity is 14.34%, well above the required minimum of 8.0%[176] - The tier 1 leverage ratio for the consolidated entity stands at 8.20%, surpassing the minimum requirement of 4.0%[176] Cash and Cash Equivalents - Total cash and cash equivalents at the end of the period reached $189,136,000, compared to $93,923,000 at the end of September 2023, reflecting a year-over-year increase of 101.0%[13] - Cash and cash equivalents totaled $189,136 thousand, with $21,149 thousand in Level 1 and $167,987 thousand in Level 2[143] Noninterest Income - Total noninterest income for the three months ended September 30, 2024, was $12.34 million, compared to $9.83 million for the same period in 2023, indicating a significant increase[103] - Service charges on deposit accounts for the bank segment reached $5.421 million for the nine months ended September 30, 2024, compared to $5.421 million in the same period of the previous year[105] Other Financial Metrics - The company recognized tax credits and other benefits from affordable housing tax credits amounting to $602 thousand in Q3 2024, up from $558 thousand in Q3 2023, an increase of 7.9%[199] - The company reported a total loan balance of $30.497 billion with an ACL balance of $618 thousand for purchased loans as of September 30, 2024[101] - The company has established a fair value measurement process for its financial instruments, utilizing Level 1, Level 2, and Level 3 inputs[116]

Core Insights - Farmers National Banc (FMNB) reported revenue of $44.22 million for the quarter ended September 2024, reflecting a year-over-year increase of 1.4% and a surprise of +3.07% over the Zacks Consensus Estimate of $42.9 million [1] - Earnings per share (EPS) for the quarter was $0.23, down from $0.40 in the same quarter last year, resulting in an EPS surprise of -32.35% compared to the consensus estimate of $0.34 [1] Financial Performance Metrics - Efficiency Ratio stood at 58.5%, better than the average estimate of 61.2% based on two analysts [1] - Net Interest Margin was reported at 2.7%, matching the average estimate of 2.7% from two analysts [1] - Average Earning Assets amounted to $4.89 billion, slightly above the estimated $4.87 billion by two analysts [1] - Total Noninterest Income reached $12.34 million, exceeding the average estimate of $10.10 million from two analysts [1] Stock Performance - Shares of Farmers National have returned -0.4% over the past month, while the Zacks S&P 500 composite increased by +2.7% [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]

Earnings Performance - Farmers National Banc (FMNB) reported quarterly earnings of $0.23 per share, missing the Zacks Consensus Estimate of $0.34 per share, and down from $0.40 per share a year ago, representing an earnings surprise of -32.35% [1] - The company posted revenues of $44.22 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.07%, and up from $43.6 million year-over-year [1] Stock Performance and Outlook - Farmers National shares have increased by approximately 3.3% since the beginning of the year, compared to the S&P 500's gain of 22.7% [2] - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $43.2 million, and for the current fiscal year, it is $1.36 on revenues of $169.7 million [4] Industry Context - The Banks - Midwest industry, to which Farmers National belongs, is currently in the top 25% of over 250 Zacks industries, indicating a favorable outlook [5] - First Business Financial Services, another company in the same industry, is expected to report quarterly earnings of $1.20 per share, reflecting a year-over-year change of +2.6% [5][6]

Financial Performance - Net income for Q3 2024 was $8.5 million, or $0.23 per diluted share, down from $13.3 million, or $0.36 per diluted share in Q3 2023[1]. - Net income for Q3 2024 was $8,535,000, a decrease of 10.7% from $13,314,000 in Q3 2023[15]. - Net income for the three months ended September 30, 2024, was $8,535 million, a decrease from $11,783 million in the previous quarter, reflecting a decline of about 27.5%[22]. - Diluted EPS excluding merger and certain items for the three months ended September 30, 2024, was $0.23, down from $0.33 in the previous quarter, indicating a decrease of approximately 30.3%[22]. - Return on average equity (annualized) decreased to 8.18% in Q3 2024 from 17.98% in Q3 2023[15]. - Return on average equity excluding merger and certain items (annualized) was 8.15% for the three months ended September 30, 2024, down from 12.57% in the previous quarter, a decline of approximately 35.5%[22]. Asset and Equity Growth - Total assets increased to $5.24 billion at September 30, 2024, up from $5.16 billion at June 30, 2024[2]. - Total assets increased to $5,236,503,000 as of September 30, 2024, compared to $4,971,163,000 a year earlier[15]. - Total stockholders' equity rose to $439.7 million at September 30, 2024, compared to $396.7 million at June 30, 2024[4]. - Stockholders' equity rose to $400,315, up from $368,627 in the previous year[20]. - Average tangible assets increased to $4,945,307 million as of September 30, 2024, compared to $4,866,260 million a year ago, showing an increase of about 1.6%[21]. Loan and Deposit Activity - Overall loan growth was $43.1 million, or 5.3% annualized, for Q3 2024, driven by commercial loan growth of $35.2 million[1][2]. - Customer deposits grew by $81.1 million, or 7.7% annualized, for Q3 2024, reaching a total of $4.36 billion[1][4]. - Total deposits rose to $4,361,837,000 in Q3 2024, up from $4,177,386,000 in Q3 2023[15]. - Loans averaged $3,212,799 with an interest income of $138,746, reflecting a yield of 5.76% compared to $3,144,817 and 5.40% in the same period of 2023[20]. - Loans to Deposits ratio decreased to 75.21% from 76.97% in the previous quarter[16]. Income and Expense Analysis - Noninterest income increased to $12.3 million in Q3 2024, compared to $9.8 million in Q3 2023, reflecting strong growth in fee-based business lines[8]. - Noninterest income rose to $12,340,000 in Q3 2024, up from $9,831,000 in Q3 2023, marking a 2.0% increase[15]. - Total noninterest expense was $27,075 million, an increase from $26,403 million in the previous quarter[18]. - Efficiency ratio excluding certain items improved to 59.05% for the three months ended September 30, 2024, compared to 60.24% in the previous quarter, indicating enhanced operational efficiency[22]. Credit Quality and Provisions - The provision for credit losses totaled $7.0 million for Q3 2024, significantly higher than $243,000 in Q3 2023, due to increased net charge-offs[6]. - Provision for credit losses increased to $7,008,000 in Q3 2024, compared to a credit of $449,000 in Q3 2023[15]. - Non-performing loans increased to $19.1 million, or 0.58% of total loans, at September 30, 2024, up from 0.40% at June 30, 2024[5]. - Non-performing loans rose to $19,076 million, compared to $12,870 million in the previous quarter[16]. - Net Charge-offs increased to $4,612 million from $563 million in the previous quarter[16]. Interest Income and Margins - Total interest income for Q3 2024 was $57,923,000, an increase of 7.3% compared to $54,229,000 in Q3 2023[15]. - Net interest income for Q3 2024 was $31.9 million, down from $33.8 million in Q3 2023, with a net interest margin of 2.66%[7]. - Net interest income decreased by 8.9% to $31,876,000 in Q3 2024 from $33,768,000 in Q3 2023[15]. - Net interest margin excluding marks and PPP interest and fees was 2.48% for the three months ended September 30, 2024, down from 2.51% in the previous quarter, indicating a decrease of approximately 1.2%[23]. - Adjusted and annualized net interest income for the three months ended September 30, 2024, was $121,440 million, up from $120,799 million in the previous quarter, reflecting a slight increase of about 0.5%[23].

Group 1 - Farmers National Banc Corp. (NASDAQ: FMNB) is expected to benefit from interest rate cuts, which will enhance both net interest margin and loan balance [1] - Earnings are projected to remain stable at $1.33 per share for the current year [1]

Core Viewpoint - Farmers National Banc (FMNB) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - For the fiscal year ending December 2024, Farmers National is expected to earn $1.37 per share, representing a -17% change from the previous year's reported number [9]. - Over the past three months, the Zacks Consensus Estimate for Farmers National has increased by 3.8% [9]. Impact of Institutional Investors - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [5]. - An increase in earnings estimates typically leads to higher fair value calculations for stocks, prompting institutional investors to buy or sell accordingly, which in turn affects stock prices [5]. Zacks Rating System - The Zacks Rank stock-rating system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 5% of stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions [10][11]. Conclusion - The upgrade of Farmers National to a Zacks Rank 1 positions it among the top 5% of Zacks-covered stocks, suggesting potential for upward movement in stock price in the near term [11].

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 For the Quarterly period ended June 30, 2024 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 organization) (I.R.S. Employer Identification No) 20 South Broad Street Canfield, OH 44406 (Address of principal exe ...

After reaching an important support level, Farmers National Banc Corp. (FMNB) could be a good stock pick from a technical perspective. FMNB recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average. A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most co ...

Farmers National Banc (FMNB) came out with quarterly earnings of $0.33 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.41 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 $0.33 per share when it actually produced earnings of $0.34, delivering a surprise of 3.03%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Farmers National, which ...

Consolidated Statements of Financial Condition 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 ...