Core Insights - Farmers National Banc (FMNB) reported revenue of $47.04 million for the quarter ended June 2025, reflecting a year-over-year increase of 12.9% [1] - Earnings per share (EPS) for the quarter was $0.37, up from $0.33 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $45.3 million, resulting in a surprise of +3.85% [1] - The company met the consensus EPS estimate of $0.37, indicating no surprise in EPS [1] Key Metrics - Efficiency Ratio was reported at 56.7%, better than the two-analyst average estimate of 60.2% [4] - Net Interest Margin stood at 2.9%, matching the two-analyst average estimate of 2.9% [4] - Average Earning Assets were $4.89 billion, slightly below the $4.91 billion average estimate based on two analysts [4] - Total Noninterest Income was $12.12 million, surpassing the two-analyst average estimate of $10.85 million [4] Stock Performance - Shares of Farmers National have returned +4.2% over the past month, compared to a +5.9% change in the Zacks S&P 500 composite [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]

Group 1: Earnings Performance - Farmers National Banc (FMNB) reported quarterly earnings of $0.37 per share, matching the Zacks Consensus Estimate, and an increase from $0.33 per share a year ago [1] - The bank's revenues for the quarter ended June 2025 were $47.04 million, exceeding the Zacks Consensus Estimate by 3.85% and up from $41.67 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates two times and revenue estimates three times [2][1] Group 2: Market Performance and Outlook - Farmers National shares have declined approximately 2% since the beginning of the year, while the S&P 500 has gained 7.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.36 on revenues of $45.9 million, and for the current fiscal year, it is $1.49 on revenues of $183.1 million [7] Group 3: Industry Context - The Banks - Midwest industry, to which Farmers National belongs, is currently in the top 30% 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 impact stock performance [5]

Financial Performance - Net income for Q2 2025 was $13.9 million, or $0.37 per diluted share, up from $11.8 million, or $0.31 per diluted share in Q2 2024[2] - Net income for the three months ended June 30, 2025, was $13,910 million, reflecting a 19.4% increase from $11,783 million for the same period in 2024[18] - Net income for the six months ended June 30, 2025, was $27,488 million, compared to $23,023 million for the same period in 2024, representing a 19.5% increase[29] - Adjusted net income for the three months ended June 30, 2025, was $14,543 million, up from $12,190 million in the same period of 2024, reflecting a 19.4% growth[29] - Diluted EPS excluding merger and certain items for the six months ended June 30, 2025, was $0.76, compared to $0.67 for the same period in 2024, indicating a 13.4% increase[29] Asset and Deposit Growth - Total assets increased to $5.18 billion in Q2 2025 from $5.16 billion at the end of Q1 2025 and $5.12 billion at the end of 2024[4] - Total assets as of June 30, 2025, were $5,178,428 million, compared to $5,156,853 million as of June 30, 2024[19] - Total assets reached $5,125,753 million as of June 30, 2025, up from $5,034,241 million a year earlier, representing a year-over-year growth of 1.8%[25] - Total deposits increased by $129.6 million since December 31, 2024, despite a decline from March 31, 2025[6] - Total deposits decreased to $4,396,417 million as of June 30, 2025, from $4,481,288 million as of March 31, 2025[19] - Total customer deposits reached $4,321,430,000 as of June 30, 2025, showing a slight increase from $4,321,323,000 in the previous quarter[21] Loan Performance - Loans grew to $3.30 billion at June 30, 2025, reflecting a 6.4% annualized growth rate[9] - Total loan balances reached $3,292,888 million as of June 30, 2025, up from $3,240,938 million in the previous quarter[20] - Loans to deposits ratio increased to 75.14% as of June 30, 2025, compared to 72.55% in the previous quarter[20] - Non-performing loans rose to $27.8 million at June 30, 2025, representing 0.84% of total loans[8] - Non-performing loans rose to $27,819 million as of June 30, 2025, from $20,724 million in the previous quarter, indicating a significant increase[20] Income and Expense Analysis - Net interest income was $34.9 million in Q2 2025, up from $32.1 million in Q2 2024, with a net interest margin of 2.91%[11] - Noninterest income increased to $12.1 million in Q2 2025 from $9.6 million in Q2 2024, driven by improved fee-based services[12] - Noninterest expense rose to $27.2 million in Q2 2025 from $26.4 million in Q2 2024, primarily due to increased salaries and benefits[13] - Total interest income for the three months ended June 30, 2025, was $57,702 million, a 2.8% increase compared to $56,846 million for the same period in 2024[18] - Noninterest income rose by 25.8% to $12,122 million for the three months ended June 30, 2025, compared to $9,606 million for the same period in 2024[18] Efficiency and Ratios - The efficiency ratio improved to 56.7% in Q2 2025 from 60.8% in Q2 2024, indicating better cost management[9] - The efficiency ratio (tax equivalent basis) improved to 56.66% for the three months ended June 30, 2025, from 60.80% for the same period in 2024[18] - Return on average assets (annualized) was 1.08% for the three months ended June 30, 2025, compared to 0.93% for the same period in 2024[18] - Return on average equity (annualized) was 13.08% for the three months ended June 30, 2025, compared to 12.15% for the same period in 2024[18] - Efficiency ratio excluding certain items improved to 54.231% for the six months ended June 30, 2025, from 52.124% in the same period of 2024[29] Capital Ratios - Common Equity Tier 1 Capital Ratio increased to 11.60% as of June 30, 2025, up from 11.44% in the previous quarter[20] - Total Risk Based Capital Ratio improved to 15.05% as of June 30, 2025, compared to 14.87% in the prior quarter[20] - Tangible Common Equity Ratio improved to 5.03% as of June 30, 2025, compared to 4.86% in the previous quarter[20] Charge-offs and Allowances - Net Charge-offs for the quarter were $572 million, up from $336 million in the previous quarter[20] - Allowance for Credit Losses to Total Loans ratio was 1.17% as of June 30, 2025, compared to 1.09% in the previous quarter[20] - Annualized Net Charge-offs to Average Net Loans ratio was 0.07% for the quarter, up from 0.04% in the previous quarter[20]

Group 1 - Albert Anthony is a Croatian-American media personality and analyst for financial media platforms Investing.com and Seeking Alpha, focusing on dividend stocks and general market commentary [1] - Since 2023, Albert Anthony has gained over 1,000 followers and has covered more than 200 companies across multiple sectors [1] - He has experience as an analyst in the IT sector and was part of the IT team at a top 10 financial firm in the US [1] Group 2 - Albert Anthony holds a B.A. from Drew University and has completed coursework through the Corporate Finance Institute and Coursera [1] - In 2025, he plans to launch a new book on Amazon discussing his methodology as an analyst and how he rates stocks [1] - The Albert Anthony brand is owned by Albert Anthony & Co., a sole proprietorship registered in Austin, Texas [1]

[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

Core Viewpoint - Farmers National Banc (FMNB) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often adjust their valuations based on changes in earnings estimates, leading to significant stock price movements [4]. Business Improvement Indicators - The upgrade reflects an improvement in Farmers National's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. - The consensus estimate for Farmers National's earnings is projected at $1.50 per share for the fiscal year ending December 2025, representing a year-over-year increase of 17.2% [8]. Zacks Rank System Overview - The Zacks Rank system classifies 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]. - 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].

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].

Group 1: Earnings Performance - Farmers National Banc (FMNB) reported quarterly earnings of $0.39 per share, exceeding the Zacks Consensus Estimate of $0.34 per share, and showing an increase from $0.34 per share a year ago, representing an earnings surprise of 14.71% [1] - The company posted revenues of $44.68 million for the quarter ended March 2025, which was 0.39% below the Zacks Consensus Estimate, compared to $40.04 million in revenues from the same quarter last year [2] Group 2: Stock Performance and Outlook - Farmers National shares have declined approximately 14.8% since the beginning of the year, while the S&P 500 has decreased by 8.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $45.2 million, and for the current fiscal year, it is $1.43 on revenues of $182.5 million [7] Group 3: Industry Context - The Banks - Midwest industry, to which Farmers National belongs, is currently ranked in the top 12% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Performance - Net income for Q1 2025 was $13.6 million, or $0.36 per diluted share, up from $11.2 million, or $0.30 per diluted share in Q1 2024, representing a 21.4% increase in net income year-over-year [2]. - Net income for Q1 2025 was $13,578,000, a decrease of 5.65% compared to $14,391,000 in Q4 2024 [18]. - Adjusted net income increased to $14,634 for the three months ended March 31, 2025, compared to $14,543 in the previous quarter, showing a slight growth of 0.62% [25]. - Return on Average Assets (Annualized) was 1.06%, down from 1.12% in Q4 2024 [18]. - Return on average tangible equity (annualized) was 25.89% for the three months ended March 31, 2025, compared to 24.20% in the previous quarter, reflecting an increase of 1.69 percentage points [25]. Asset and Deposit Growth - Total assets increased by $38.1 million to $5.16 billion in Q1 2025, while total deposits rose by $214.5 million to $4.48 billion [4][6]. - Total assets increased to $5,157,040,000, up from $5,118,924,000 in Q4 2024 [18]. - Total deposits rose to $4,481,288,000, an increase of 5.02% from $4,266,779,000 in Q4 2024 [18]. - Total customer deposits rose to $4,321,323 million, up from $4,198,125 million year-over-year, reflecting a growth of 2.9% [19]. Income and Revenue Streams - Net interest income increased to $34.2 million in Q1 2025 from $31.7 million in Q1 2024, with net interest margin improving to 2.85% from 2.70% year-over-year [11]. - Noninterest income rose to $10.5 million in Q1 2025, up from $8.4 million in Q1 2024, driven by improved profitability across fee-based services [12]. - Total interest income for Q1 2025 was $57,305,000, a decrease of 1.04% from Q4 2024 [18]. - Noninterest income decreased to $10,481,000, down 8.15% from $11,413,000 in Q4 2024 [18]. - Net interest income for the quarter was $34,837 million, up from $32,341 million year-over-year, resulting in a net interest margin of 2.85% [22]. Credit Quality and Risk Management - Non-performing loans decreased to $20.7 million, or 0.64% of total loans, down from $22.8 million, or 0.70% at the end of 2024, indicating improved credit quality [8]. - The allowance for credit losses to total loans was 1.09% at March 31, 2025, slightly down from 1.10% at the end of 2024, indicating stable credit risk management [10]. - Non-performing loans decreased to $20,724 million from $22,818 million quarter-over-quarter, indicating improved asset quality [19]. - Non-performing assets to total assets ratio improved to 0.41% from 0.45% quarter-over-quarter, showing enhanced asset management [19]. Operational Efficiency - The efficiency ratio improved to 59.6% in Q1 2025 compared to the same period in 2024, reflecting better operational efficiency [9]. - The efficiency ratio excluding certain items improved to 59.57% for the three months ended March 31, 2025, down from 61.54% in the previous quarter, indicating enhanced operational efficiency [25]. Strategic Initiatives - The company opened a commercial loan production office in Columbus at the end of Q1 2025, marking a strategic expansion into a growth market [9]. - The company anticipates continued volatility in the bond market throughout 2025, impacting investment strategies [5]. - The company had access to an additional $749.3 million in FHLB borrowing capacity as of March 31, 2025, enhancing liquidity [14]. Capital Adequacy - Common Equity Tier 1 Capital Ratio increased to 11.48% from 10.88% year-over-year [19]. - The Tier 1 Leverage Ratio increased to 8.54% from 8.19% year-over-year, indicating stronger capital adequacy [19]. - Tangible common equity rose to $241,668 for the three months ended March 31, 2025, up from $217,828 in the previous quarter, representing an increase of 10.93% [24].

Group 1 - Below-average loan growth is expected to be the main earnings driver for Farmers National Banc Corp. in the current year [1] - The company's bottom line will receive support from subdued margin expansion [1] - Earnings are projected to be $1.43 per share, reflecting a 17% increase [1]