Farmers National Banc (FMNB) investor relations material

Executive summary

• Net income rose to $16.3 million for Q1 2026, up from $13.6 million in Q1 2025, with EPS steady at $0.36 per diluted share.

• Achieved 173 consecutive quarters of profitability.

• Results reflect the completed merger with Middlefield Banc Corp., which significantly increased assets, loans, and deposits.

• Adjusted net income, excluding acquisition and core conversion costs, was $20.0 million ($0.45 per diluted share).

• The company incurred $4.0 million in merger and core system conversion costs, with anticipated annual savings of $2.0 million from the new platform.

Financial highlights

• Total assets increased to $7.18 billion at March 31, 2026, from $5.25 billion at December 31, 2025.

• Net interest income grew to $42.6 million, up from $34.2 million year-over-year, driven by the merger and a 27 basis point increase in net interest margin to 3.12%.

• Noninterest income rose to $13.7 million from $10.5 million, reflecting acquisition growth and improved wealth management lines.

• Noninterest expense increased to $37.3 million, up from $28.5 million, primarily due to merger-related costs and higher salaries.

• Total loans, net of allowance, increased to $4.75 billion, and total deposits reached $5.92 billion.

Outlook and guidance

• Management expects continued volatility in the bond market and measured loan growth given the uncertain economic backdrop.

• Net interest margin expected to expand by 25 basis points in Q2 2026 as full impact of Middlefield is realized.

• Integration of Middlefield and core technology conversion targeted for completion in Q3 2026.

• The new core processing system is expected to deliver $2.0 million in annual cost savings starting August 2026.

• The company remains focused on prudent underwriting and broad-based loan growth across consumer, commercial, and real estate segments.