Farmers National Banc (FMNB) investor relations material

Executive summary

• Achieved 174 consecutive quarters of profitability, with net income of $23.0 million ($0.39 per diluted share) for Q2 2026, up from $13.9 million ($0.37 per share) year-over-year.

• Adjusted net income was $24.4 million ($0.41 per share), excluding $1.7 million in acquisition and core conversion costs.

• Integration of the March 2026 Middlefield acquisition progressed, with core technology conversion on track for Q3 completion.

Financial highlights

• Net interest income rose to $56.0 million in Q2 2026 from $34.9 million in Q2 2025, driven by the Middlefield acquisition.

• Net interest margin improved to 3.44% from 2.91% year-over-year.

• Noninterest income increased to $14.4 million from $12.1 million year-over-year, with growth in service charges, trust fees, and investment commissions.

• Noninterest expense rose to $40.9 million from $27.2 million, mainly due to acquisition and conversion costs.

• Efficiency ratio was 55.6% (53.2% excluding acquisition/conversion costs).

Outlook and guidance

• Net interest margin expected to settle between 3.34% and 3.37% in Q3 2026.

• Commercial loan payoffs anticipated to normalize in Q3.

• Continued rate volatility in the bond market expected to impact securities portfolio.