Farmers National Banc (FMNB) investor relations material

Executive summary

• Net income for Q2 2026 was $23.0 million ($0.39 per diluted share), up from $13.9 million ($0.37 per diluted share) in Q2 2025, driven by the Middlefield merger and core system conversion costs of $1.7 million in the quarter.

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

• For the first half of 2026, net income was $39.3 million ($0.76 per diluted share), compared to $27.5 million ($0.73 per diluted share) in the prior year period.

• The Middlefield Banc Corp. merger, completed March 2, 2026, significantly expanded assets, loans, and deposits.

• Achieved 174 consecutive quarters of profitability.

Financial highlights

• Total assets grew to $7.14 billion at June 30, 2026, from $5.25 billion at December 31, 2025.

• Net interest income for Q2 2026 was $56.0 million, up from $34.9 million in Q2 2025; net interest margin rose to 3.44% from 2.91%.

• Noninterest income for Q2 2026 was $14.4 million, up from $12.1 million in Q2 2025, with increases in service charges, trust fees, and investment commissions.

• Noninterest expense for Q2 2026 was $40.9 million, up from $27.2 million in Q2 2025, reflecting higher salaries, merger, and system conversion costs.

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

Outlook and guidance

• The company expects continued volatility in the bond market and plans to complete the core system conversion in August 2026, which is projected to save $2.0 million annually.

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

• Management anticipates measured loan growth, focusing on broad-based lending while maintaining strong credit metrics.

• Commercial loan payoffs anticipated to normalize in Q3.