• 170 consecutive quarters of profitability
• Strong loan growth of $52.0 million for the quarter, or 6.4% annualized
• Commercial loan balances grew $43.6 million for the quarter, or 8.8% annualized
• Net interest margin increased from 2.71% in the second quarter of 2024 to 2.91% in the second quarter of 2025
• Efficiency ratio improved from 60.8% in the second quarter of 2024 to 56.7% in the second quarter of 2025

Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today announced net income of $13.9 million, or $0.37 per diluted share, for the second quarter of 2025 compared to $11.8 million, or $0.31 per diluted share, for the second quarter of 2024. Net income for the second quarter of 2025 included pretax gains on the sale of investments securities and other assets totaling $173,000. Excluding these items (non-GAAP), net income for the first quarter of 2025 was $13.8 million, or $0.37 per diluted share.

Kevin J. Helmick, President and CEO, stated “Our strong second quarter results reflect the continued success of our approach to community banking and the disciplined execution of our long-term growth strategy. Higher profitability was driven by year-over-year growth in multiple lines of business, demonstrating the value we deliver to our Ohio and Pennsylvania communities. The improvement in our efficiency ratio is also encouraging, as we remain focused on prudent expense management. These results are a testament to our dedicated associates and the power of our diverse, relationship-driven banking model.”

Balance Sheet

Total assets increased to $5.18 billion in the second quarter of 2025 from $5.16 billion at March 31, 2025 and $5.12 billion at December 31, 2024. Loans increased to $3.30 billion at June 30, 2025 from $3.25 billion at March 31, 2025 and $3.27 billion at December 31, 2024. The increase from the prior quarter was primarily due to strong growth in the commercial area with an increase in balances of $43.6%, or 8.8% annualized growth.

The Company had securities available for sale totaling $1.27 billion at June 30, 2025 compared to $1.28 billion as of March 31, 2025, and $1.27 billion at December 31, 2024. The Company anticipates continued rate volatility in the bond market in 2025, which will continue to affect the value of the portfolio.

Total deposits declined between March 31, 2025 and June 30, 2025 but are up $129.6 million since December 31, 2024. The decline since March 31, 2025, was primarily due to a decline in the use of brokered CDs while the increase since December is due to public funds seasonality and overall growth in deposit balances. Excluding public funds and brokered CDs, the Company has shown excellent growth in deposit balances with an increase of $71.7 million, or 8.8% annualized growth, since March 31, 2025, and $94.9, or 5.5% annualized growth, since December 31, 2024.

Total stockholders’ equity was $437.7 million at June 30, 2025 compared to $429.1 million at March 31, 2025 and $406.0 million at December 31, 2024. The increase was primarily due to an increase in retained earnings of $7.5 million due to $13.9 million of net income recognized during the quarter offset by dividends paid to the Company’s outstanding common shareholders.

Credit Quality

Non-performing loans increased to $27.8 million at June 30, 2025 from $20.7 million at March 31, 2025, and $22.8 million at December 31, 2024. Two loan relationships representing a combined total of $10.2 million moved into nonaccrual this quarter. Both of the relationships are non-owner occupied commercial real estate loans located in the Pittsburgh area. Specific reserves totaling $2.6 million were placed on the loans at the end of the second quarter. The Company is actively working with the borrowers. Nonperforming loans to total loans were 0.84% at June 30, 2025, compared to 0.64% at March 31, 2025, and 0.70% at December 31, 2024. The Company’s loans which were 30-89 days delinquent were $17.7 million at June 30, 2025, or 0.54% of total loans, compared to $11.2 million at March 31, 2025, and $13.0 million at December 31, 2024.

The Company’s provision for credit losses and unfunded commitments was $3.5 million for the second quarter of 2025 compared to $1.1 million for the second quarter of 2024. The provision in the second quarter of 2025 was driven primarily by the $2.6 million in specific reserves placed on the two nonperforming loans discussed previously. Annualized net charge-offs as a percentage of average loans were 0.07% for the second quarter of 2025, compared to 0.04% for the first quarter of 2025 and 0.07% for the second quarter of 2024. The allowance for credit losses to total loans was 1.17% at June 30, 2025, 1.09% at March 31, 2025, and 1.10% at December 31, 2024.

Net Interest Income

The Company reported $34.9 million in net interest income in the second quarter of 2025 compared to $32.1 million in the second quarter of 2024. Average interest earning assets increased to $4.89 billion in the second quarter of 2025 compared to $4.83 billion in the second quarter of 2024. The increase was primarily driven by an increase in average loan balances of $59.3 million. The net interest margin improved to 2.91% in the second quarter of 2025 compared to 2.85% in the first quarter of 2025 and 2.71% in the second quarter of 2024. The year-over-year increase in net interest margin was due to higher yields on earning assets and lower funding costs on interest bearing liabilities. The current rate cutting cycle by the Federal Reserve that began in September of 2024 has benefitted funding costs while the lag effects of assets repricing continued to drive earning asset yields higher. The yield on interest earning assets increased from 4.76% in the second quarter of 2024 to 4.77% in the second quarter of 2025 while the cost of interest-bearing liabilities declined from 2.73% in the second quarter of 2024 to 2.49% in the second quarter of 2025. The Company expects its net interest margin will continue to expand in 2025 but the degree of expansion will depend on future cuts to the fed funds rate by the Federal Reserve. Excluding acquisition marks and PPP interest, non-GAAP, the Company’s net interest margin was 2.77% in the second quarter of 2025, 2.67% in the first quarter of 2025, and 2.51% in the second quarter of 2024.

Noninterest Income

Noninterest income increased to $12.1 million in the second quarter of 2025 from $9.6 million in the second quarter of 2024 due to continued improvement in many fee-based lines of business and a lower level of losses on the sale of available for sale securities. Service charge income on deposit accounts declined $97,000 to $1.7 million in the second quarter of 2025 compared to $1.8 million for the second quarter of 2024. Bank owned life insurance (BOLI) income increased $180,000 during the second quarter of 2025 to $832,000 compared to $652,000 in the second quarter of 2024. The Company purchased an additional $15.0 million in policies during the first quarter of 2025 and policy crediting rates have increased over the last twelve months. Trust fees increased to $2.6 million in the second quarter of 2025 from $2.3 million in the second quarter of 2024. The Company continues to grow this line of business. Insurance agency commissions increased $573,000 to $1.8 million in the second quarter of 2025 from $1.3 million in the second quarter of 2024. The Company shared in the commission from the purchase of the new BOLI policies which added $329,000 to insurance commissions for the quarter. Annuity sales also continue to drive growth. Gains on the sale of available for sale securities were $36,000 in the second quarter of 2025 compared to a loss of $124,000 in the second quarter of 2024. Retirement plan consulting fees increased to $783,000 in the second quarter of 2025 from $623,000 in the second quarter of 2024 primarily due to the acquisition of Crest Retirement Advisors LLC in late December of 2024. Investment commissions grew $243,000 in the second quarter of 2025 compared to the second quarter of 2024. The Company has a strong sales team in this line of business and is looking to grow with deeper penetration into newer markets. Debit card income grew from $1.8 million in the second quarter of 2024 to $2.0 million in the second quarter of 2025 as better volumes were realized in the current period. Other noninterest income was $1.2 million in the second quarter of 2025 compared to $162,000 in the second quarter of 2024. SBIC income was $587,000 in the second quarter of 2025 compared to a loss of $1,000 in the second quarter of 2024. The Company also realized gains on the sale of assets of $137,000 in the second quarter of 2025 compared to losses on the sale of assets of $391,000 in the second quarter of 2024.

Noninterest Expense

Noninterest expense increased from $26.4 million in the second quarter of 2024 to $27.2 million in the second quarter of 2025. Salaries and employee benefits increased to $14.7 million in the second quarter of 2025, from $14.6 million in the second quarter of 2024. The increase was primarily driven by annual raises, the acquisition of Crest Retirement in the fourth quarter of 2024 and higher commission expense from increased revenue in the fee-based businesses offset by lower healthcare expense. Occupancy and equipment expense increased to $4.1 million in the second quarter of 2025 from $3.8 million in the second quarter of 2024 due to increased maintenance costs in 2025. Professional fess declined to $1.0 million in the second quarter of 2025 from $1.2 million in the second quarter of 2024 due primarily to lower legal expenses in 2025. Core processing expense increased to $1.4 million for the quarter ended June 30, 2025, from $1.1 million for the quarter ended June 30, 2024. The increase was due to annual increases and timing differences.

Liquidity

The Company had access to an additional $596.9 million in FHLB borrowing capacity at June 30, 2025, along with $385.8 million in available for sale securities that are available for pledging. The Company’s loan to deposit ratio was 75.1% at June 30, 2025 while the Company’s average deposit balance per account (excluding collateralized deposits) was $26,054 for the same period.

About Farmers National Banc Corp.

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $5.2 billion in banking assets. Farmers National Banc Corp.’s wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 62 banking locations in Mahoning, Trumbull, Columbiana, Portage, Stark, Wayne, Medina, Geauga and Cuyahoga Counties in Ohio and Beaver, Butler, Allegheny, Jefferson, Clarion, Venango, Clearfield, Mercer, Elk and Crawford Counties in Pennsylvania, and Farmers Trust Company, which operates trust offices and offers services in the same geographic markets. Total wealth management assets under care at June 30, 2025 are $4.4 billion. Farmers National Insurance, LLC, a wholly-owned subsidiary of The Farmers National Bank of Canfield, offers a variety of insurance products.

Non-GAAP Disclosure

This press release includes disclosures of Farmers’ tangible common equity ratio, return on average tangible assets, return on average tangible equity, net income excluding costs related to acquisition activities and certain items, return on average assets excluding merger costs and certain items, return on average equity excluding merger costs and certain items, net interest margin excluding acquisition marks and related accretion and PPP interest and fees and efficiency ratio less certain items, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers’ marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures to their GAAP equivalents are included in the tables following Consolidated Financial Highlights below.

Cautionary Statements Regarding Forward-Looking Statements

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 expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Farmers’ control. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions, as well as any statements related to future expectations of performance or conditional verbs, such as “will,” “would,” “should,” “could” or “may.” Farmers’ actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Farmers’ actual results to differ materially from those described in certain forward-looking statements include significant changes in near-term local, regional, and U.S. economic conditions including those resulting from continued high rates of inflation, tightening monetary policy of the Board of Governors of the Federal Reserve, U.S. and foreign country tariff policies, and possibility of a recession; and the other factors contained in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and available on Farmers’ website (www.farmersbankgroup.com) and on the SEC’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Farmers does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.