Farmers National Banc Corp. Reports Solid Earnings and Improving Margin for the Fourth Quarter of 2024

• 168 consecutive quarters of profitability
• Net interest margin improved from 2.66% in the third quarter of 2024 to 2.72% in the fourth quarter of 2024
• Efficiency ratio declined to 56.4% for the fourth quarter of 2024
• Continued strong performance in fee-based businesses
• Completed acquisition of Crest Retirement Advisors LLC based in Dublin, OH
• Wealth management assets under management increased to $4.2 billion at December 31, 2024 including the Crest addition

CANFIELD, Ohio--(BUSINESS WIRE)-- Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today reported net income of $14.4 million, or $0.38 per diluted share, for the quarter ended December 31, 2024, compared to $14.6 million, or $0.39 per diluted share, for the quarter ended December 31, 2023. Net income for the fourth quarter of 2024 included certain pretax items. Excluding these items (non-GAAP), net income for the fourth quarter of 2024 was $14.5 million, or $0.39 per diluted share.

Kevin J. Helmick, President and CEO, stated “Our team has done an outstanding job navigating a dynamic economic and interest rate cycle in 2024. We are proud to provide our Ohio and Pennsylvania communities with diverse, personalized, and market-leading financial solutions and are excited about expanding our fee business into the greater Columbus market with the acquisition of Crest Retirement. Our fourth quarter performance highlights the positive momentum underway in our business and we continue to believe Farmers is very well positioned to grow earnings in 2025.”

Balance Sheet

Total assets were $5.12 billion at December 31, 2024, compared to $5.24 billion at September 30, 2024, and $5.08 billion at December 31, 2023. Loans declined slightly to $3.27 billion at December 31, 2024 from $3.28 billion at September 30, 2024, but increased $70.2 million from December 31, 2023. The decrease from the prior quarter was primarily due to declines in residential real estate and indirect lending, while the increase from December 31, 2023, was driven by increased commercial real estate balances along with increased HELOC balances.

Securities available for sale totaled $1.27 billion at December 31, 2024, compared to $1.29 billion at September 30, 2024 and $1.30 billion at December 31, 2023. Gross unrealized losses on the portfolio totaled $244.1 million at December 31, 2024 compared to $189.4 million at September 30, 2024 and $217.1 million at December 31, 2023. Interest rates rose sharply in the fourth quarter of 2024 from the third quarter of 2024 driving the increase in gross unrealized losses during the quarter. Volatility in the bond market is expected to continue in 2025.

Total deposits declined to $4.27 billion at December 31, 2024 from $4.36 billion at September 30, 2024, but increased $89.4 million from $4.18 billion at December 31, 2023. The increase since December 31, 2023, was driven by the acquisition of $75.0 million in brokered deposits in the third quarter of 2024 and growth in customer deposits (non-brokered) of $14.4 million. The decline since September 30, 2024 was driven by the seasonal decline in public funds which totaled approximately $113.2 million.

Total stockholders’ equity declined to $406.0 million at December 31, 2024, compared to $439.7 million at September 30, 2024 and $404.4 million at December 31, 2023. The decrease from September 30, 2024 was primarily driven by an increase in the unrealized losses on investment securities. The increase since December 31, 2023 was primarily driven by an increase in retained earnings offset by an increase in unrealized losses on investment securities.

Credit Quality

Non-performing loans increased to $22.8 million at December 31, 2024, compared to $19.1 million at September 30, 2024 and $15.1 million at December 31, 2023. The increase since September 30, 2024 was primarily driven by the addition of a single commercial credit with a balance of $2.6 million. The increase from December 31, 2023 resulted from the addition of a single commercial real estate credit with a remaining balance of $8.1 million and the $2.6 million commercial credit mentioned above offset by declines in the balances of other non-performing loans. The Company expects that a single non-performing loan with a balance of $1.2 million will be paid off in the first quarter of 2025 and two other non-performing loans totaling $1.6 million will be sold in the first quarter of 2025 at par. Non-performing loans to total loans were 0.70% at December 31, 2024 compared to 0.58% at September 30, 2024 and 0.47% at December 31, 2023. The Company’s loans which were 30-89 days delinquent were $13.0 million at December 31, 2024, or 0.40% of total loans. This is down from $15.6 million at September 30, 2024 and $16.7 million at December 31, 2023.

The Company’s provision for credit losses and unfunded commitments totaled $295,000 for the quarter ended December 31, 2024, compared to $286,000 for the quarter ended December 31, 2023. Annualized net charge-offs as a percentage of average loans were 0.08% for the fourth quarter of 2024, compared to 0.10% for the fourth quarter of 2023. The allowance for credit losses to total loans was 1.10% at December 31, 2024, compared to 1.10% at September 30 2024, and 1.08% at December 31, 2023.

Net Interest Income

The Company recorded $32.7 million of net interest income in the fourth quarter of 2024 compared to $32.8 million in the fourth quarter of 2023. Average interest earning assets increased to $4.91 billion in the fourth quarter of 2024 compared to $4.82 billion for the fourth quarter of 2023. The increase was driven by an increase in average loan balances of $82.2 million and an increase in federal funds sold and other earning assets of $39.1 million. These increases were offset by a decline in the average balance of investment securities. The net interest margin declined to 2.72% in the fourth quarter of 2024 compared to 2.78% in the fourth quarter of 2023 but was up sharply from the 2.66% margin reported in the third quarter of 2024. The year-over-year decline in net interest margin was due to higher funding costs outstripping the increase in yields on earning assets. The current rate cutting cycle by the Federal Reserve that began in September of 2024 had a significant impact on funding costs in the fourth quarter of 2024 and was the primary reason for the net interest margin increasing during the fourth quarter. The yield on interest bearing liabilities declined from 2.84% in the third quarter of 2024 to 2.72% in the fourth quarter of 2024. The Company expects its net interest margin will continue to expand in 2025 as funding costs reprice lower. Excluding acquisition marks and PPP interest, non-GAAP, the Company’s net interest margin was 2.56% in the fourth quarter of 2024 compared to 2.48% in the third quarter of 2024 and 2.58% in the fourth quarter of 2023.

Noninterest Income

Noninterest income declined from $12.2 million in the fourth quarter of 2023 to $11.4 million in the fourth quarter of 2024 primarily due to a decline of $1.0 million in the net gain on sale of loans. During the fourth quarter of 2023, the Company recognized a gain on the sale of commercial loans totaling $915,000. No gain was recognized on commercial loan sales in 2024.

Income from service charges on deposit accounts increased $213,000 to $1.9 million for the fourth quarter of 2024 compared to $1.7 million for the fourth quarter in 2023. The Company undertook a review of all service charges in late 2023 and early 2024 and implemented fee increases across deposit product lines in the second quarter of 2024. Trust fees in the fourth quarter of 2024 increased by $318,000 to $2.7 million compared to $2.4 million in the fourth quarter of 2023. The increase was due to continued growth in the business unit. Insurance agency commissions declined to $1.3 million in the fourth quarter of 2024 from $1.5 million in the fourth quarter of 2023. The fourth quarter of 2023 included an accrual adjustment that did not occur in 2024. Retirement plan consulting fees increased from $631,000 in the fourth quarter of 2023 to $719,000 in the fourth quarter of 2024. The increase was due to increased business in the division. The acquisition of Crest Retirement Advisors LLC in late December of 2024 is expected to further bolster this unit in 2025. Other mortgage banking fee income increased to $285,000 during the fourth quarter of 2024 from $139,000 in the fourth quarter of 2023. The increase was driven by a recovery on the Company’s mortgage servicing rights in the fourth quarter of 2024. Debit card income grew to $2.2 million in the fourth quarter of 2024 from $1.7 million in the fourth quarter of 2023 as better volumes were realized in the current period. Other noninterest income declined to $856,000 in the fourth quarter of 2024 from $1.6 million in the fourth quarter of 2023. The Company recorded $1.1 million in SBIC income in the fourth quarter of 2023 compared to $527,000 in the fourth quarter of 2024. SBIC investments continue to generate solid returns but income can fluctuate wildly quarter to quarter.

Noninterest Expense

Noninterest expense declined to $26.2 million for the fourth quarter of 2024 compared to $27.0 million for the fourth quarter of 2023. Salaries and employee benefits were $14.4 million for the fourth quarter of 2024 compared to $14.9 million for the fourth quarter of 2023. The decrease was primarily driven by lower healthcare expenses. FDIC and state and local taxes were lower by $465,000 in the fourth quarter of 2024 compared to the fourth quarter of 2023. The decrease was primarily driven by a decrease in FDIC premiums. Professional fees declined to $785,000 for the period ended December 31, 2024, compared to $1.0 million for the period ended December 31, 2023 due to lower legal and consulting expense in the fourth quarter of 2024. The fourth quarter of 2024 included $92,000 of merger related charges for the Crest acquisition compared to $452,000 of merger related charges in the fourth quarter of 2023 for the Emclaire acquisition. Advertising expense declined to $191,000 in the fourth quarter of 2024 compared to $414,000 in the fourth quarter of 2023. The decline was due to an over accrual for advertising expense that was not recognized. Intangible amortization increased to $914,000 in the fourth quarter of 2024 from $578,000 for the fourth quarter of 2023. This increase was driven by acceleration in the amortization from the Cortland acquisition. Other noninterest expense increased to $3.5 million in the fourth quarter of 2024 up from the $3.2 million recognized in the fourth quarter of 2023. The increase was primarily due to $208,000 of operational losses during the fourth quarter of 2024 compared to operational recoveries of $102,000 in the fourth quarter of 2024.

Liquidity

At December 31, 2024, the Company had access to an additional $549.7 million of FHLB borrowing capacity, along with $414.0 million in available for sale securities that are available for additional pledging. The Company’s loan to deposit ratio was 76.6% at December 31, 2024 while the Company’s average deposit balance per account (excluding collateralized deposits) was $25,188 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 $5.1 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 five trust offices and offers services in the same geographic markets. Total wealth management assets under care at December 31, 2024 are $4.2 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, and possibility of a recession; and the other factors contained in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2023 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.

Farmers National Banc Corp. and Subsidiaries
Consolidated Financial Highlights
(Amounts in thousands, except per share results) Unaudited
Consolidated Statements of Income	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,					Percent
		2024			2024			2024			2024			2023			2024			2023				Change
Total interest income	$	57,909		$	57,923		$	56,846		$	55,054		$	55,069		$	227,732		$	213,335				6.7	%
Total interest expense		25,170			26,047			24,780			23,367			22,239			99,364			75,549				31.5	%
Net interest income		32,739			31,876			32,066			31,687			32,830			128,368			137,786				-6.8	%
Provision (credit) for credit losses		295			7,008			1,112			(449	)		286			7,966			9,153				-13.0	%
Noninterest income		11,413			12,340			9,606			8,357			12,156			41,716			41,861				-0.3	%
Acquisition related costs		92			0			0			0			452			92			5,475				-98.3	%
Other expense		26,082			27,075			26,403			27,039			26,520			106,599			106,321				0.3	%
Income before income taxes		17,683			10,133			14,157			13,454			17,728			55,427			58,698				-5.6	%
Income taxes		3,292			1,598			2,374			2,214			3,151			9,478			8,766				8.1	%
Net income	$	14,391		$	8,535		$	11,783		$	11,240		$	14,577		$	45,949		$	49,932				-8.0	%
Average diluted shares outstanding		37,616			37,567			37,487			37,479			37,426			37,512			37,498
Basic earnings per share		0.38			0.23			0.32			0.30			0.39			1.23			1.34
Diluted earnings per share		0.38			0.23			0.31			0.30			0.39			1.22			1.33
Cash dividends per share		0.17			0.17			0.17			0.17			0.17			0.68			0.68
Performance Ratios
Net Interest Margin (Annualized)		2.72	%		2.66	%		2.71	%		2.70	%		2.78	%		2.69	%		2.91	%
Efficiency Ratio (Tax equivalent basis)		56.42	%		58.47	%		60.80	%		61.54	%		57.84	%		59.26	%		59.24	%
Return on Average Assets (Annualized)		1.12	%		0.66	%		0.93	%		0.90	%		1.17	%		0.90	%		0.99	%
Return on Average Equity (Annualized)		13.43	%		8.18	%		12.15	%		11.47	%		17.98	%		11.28	%		13.97	%
Other Performance Ratios (Non-GAAP)
Return on Average Tangible Assets		1.16	%		0.69	%		0.97	%		0.93	%		1.22	%		0.94	%		1.03	%
Return on Average Tangible Equity		23.95	%		14.94	%		23.74	%		21.88	%		43.77	%		21.05	%		30.23	%
Consolidated Statements of Financial Condition
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,
		2024			2024			2024			2024			2023
Assets
Cash and cash equivalents	$	85,738		$	189,136		$	180,987		$	148,630		$	103,658
Debt securities available for sale		1,266,553			1,293,350			1,246,730			1,270,149			1,299,701
Other investments		45,405			33,617			37,594			34,619			35,311
Loans held for sale		5,005			2,852			2,577			1,854			3,711
Loans		3,268,346			3,280,517			3,237,369			3,181,318			3,198,127
Less allowance for credit losses		35,863			36,186			33,991			33,159			34,440
Net Loans		3,232,483			3,244,331			3,203,378			3,148,159			3,163,687
Other assets		483,740			473,217			485,587			476,599			472,282
Total Assets	$	5,118,924		$	5,236,503		$	5,156,853		$	5,080,010		$	5,078,350
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing	$	965,507		$	969,682		$	968,693		$	977,475		$	1,026,630
Interest-bearing		3,226,321			3,317,223			3,237,142			3,220,650			3,150,756
Brokered time deposits		74,951			74,932			0			0			0
Total deposits		4,266,779			4,361,837			4,205,835			4,198,125			4,177,386
Other interest-bearing liabilities		391,150			371,038			494,890			433,777			443,663
Other liabilities		54,967			63,950			59,434			51,082			52,886
Total liabilities		4,712,896			4,796,825			4,760,159			4,682,984			4,673,935
Stockholders' Equity		406,028			439,678			396,694			397,026			404,415
Total Liabilities
and Stockholders' Equity	$	5,118,924		$	5,236,503		$	5,156,853		$	5,080,010		$	5,078,350
Period-end shares outstanding		37,586			37,574			37,575			37,546			37,503
Book value per share	$	10.80		$	11.70		$	10.56		$	10.57		$	10.78
Tangible book value per share (Non-GAAP)*		5.80			6.69			5.53			5.52			5.71
* Tangible book value per share is calculated by dividing tangible common equity by outstanding shares
	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
Capital and Liquidity		2024			2024			2024			2024			2023			2024			2023
Common Equity Tier 1 Capital Ratio (a)		11.26	%		10.91	%		10.94	%		10.88	%		10.61	%
Total Risk Based Capital Ratio (a)		14.67	%		14.34	%		14.42	%		14.38	%		14.06	%
Tier 1 Risk Based Capital Ratio (a)		11.75	%		11.39	%		11.43	%		11.37	%		11.10	%
Tier 1 Leverage Ratio (a)		8.37	%		8.20	%		8.26	%		8.19	%		8.02	%
Equity to Asset Ratio		7.93	%		8.40	%		7.69	%		7.82	%		7.96	%
Tangible Common Equity Ratio (b)		4.42	%		4.98	%		4.18	%		4.24	%		4.38	%
Net Loans to Assets		63.15	%		61.96	%		62.12	%		61.97	%		62.30	%
Loans to Deposits		76.60	%		75.21	%		76.97	%		75.78	%		76.56	%
Asset Quality
Non-performing loans	$	22,818		$	19,076		$	12,870		$	11,951		$	15,063
Non-performing assets		22,903			19,137			12,975			12,215			15,321
Loans 30 - 89 days delinquent		13,032			15,562			18,546			14,069			16,705
Charged-off loans		928			5,116			661			1,282			972			7,987			2,937
Recoveries		293			504			98			271			172			1,166			681
Net Charge-offs		635			4,612			563			1,011			800			6,821			2,256
Annualized Net Charge-offs to Average Net Loans		0.08	%		0.58	%		0.07	%		0.13	%		0.10	%		0.21	%		0.07	%
Allowance for Credit Losses to Total Loans		1.10	%		1.10	%		1.05	%		1.04	%		1.08	%
Non-performing Loans to Total Loans		0.70	%		0.58	%		0.40	%		0.38	%		0.47	%
Loans 30 - 89 Days Delinquent to Total Loans		0.40	%		0.47	%		0.57	%		0.44	%		0.52	%
Allowance to Non-performing Loans		157.17	%		189.69	%		264.11	%		277.46	%		228.64	%
Non-performing Assets to Total Assets		0.45	%		0.37	%		0.25	%		0.24	%		0.30	%
(a) December 31, 2024 ratio is estimated
(b) This is a non-GAAP financial measure. A reconciliation to GAAP is shown below
	For the Three Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,
End of Period Loan Balances		2024			2024			2024			2024			2023
Commercial real estate	$	1,382,714		$	1,372,374		$	1,348,675		$	1,339,372		$	1,335,806
Commercial		349,966			358,247			343,694			335,747			346,354
Residential real estate		845,081			852,444			849,561			836,252			843,697
HELOC		158,014			155,967			151,511			143,696			142,441
Consumer		259,954			269,231			268,606			256,846			259,784
Agricultural loans		262,392			261,773			265,035			260,425			261,288
Total, excluding net deferred loan costs	$	3,258,121		$	3,270,036		$	3,227,082		$	3,172,338		$	3,189,370
	For the Three Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,
End of Period Customer Deposit Balances		2024			2024			2024			2024			2023
Noninterest-bearing demand	$	965,507		$	969,682		$	968,693		$	977,474		$	1,026,630
Interest-bearing demand		1,366,255			1,453,288			1,380,266			1,381,383			1,362,609
Money market		682,558			676,664			677,058			646,308			593,975
Savings		414,796			418,771			433,166			452,949			468,890
Certificate of deposit		762,712			768,500			746,652			740,011			725,282
Total customer deposits	$	4,191,828		$	4,286,905		$	4,205,835		$	4,198,125		$	4,177,386
	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
Noninterest Income		2024			2024			2024			2024			2023			2024			2023
Service charges on deposit accounts	$	1,890		$	1,992		$	1,846		$	1,583		$	1,677		$	7,311		$	6,322
Bank owned life insurance income, including death benefits		613			688			652			707			617			2,659			2,442
Trust fees		2,700			2,544			2,345			2,510			2,382			10,099			9,047
Insurance agency commissions		1,273			1,416			1,255			1,528			1,540			5,472			5,444
Security gains (losses), including fair value changes for equity securities		10			(403	)		(124	)		(2,120	)		19			(2,638	)		(471	)
Retirement plan consulting fees		719			677			623			617			631			2,637			2,467
Investment commissions		621			476			478			432			589			2,007			1,978
Net gains on sale of loans		282			506			417			297			1,280			1,502			2,391
Other mortgage banking fee income (loss), net		285			(168	)		192			125			139			435			711
Debit card and EFT fees		2,164			1,993			1,760			1,567			1,697			7,484			7,059
Other noninterest income		856			2,619			162			1,111			1,585			4,748			4,471
Total Noninterest Income	$	11,413		$	12,340		$	9,606		$	8,357		$	12,156		$	41,716		$	41,861
	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
Noninterest Expense		2024			2024			2024			2024			2023			2024			2023
Salaries and employee benefits	$	14,424		$	14,874		$	14,558		$	15,069		$	14,871		$	58,925		$	57,374
Occupancy and equipment		4,075			3,968			3,815			3,730			3,896			15,588			15,434
FDIC insurance and state and local taxes		1,019			1,480			1,185			1,345			1,484			5,029			5,848
Professional fees		785			1,084			1,194			1,254			1,004			4,317			4,351
Merger related costs		92			0			0			0			452			92			5,475
Advertising		191			435			445			431			414			1,503			1,793
Intangible amortization		914			629			630			688			578			2,861			3,434
Core processing charges		1,201			1,186			1,099			1,135			1,057			4,622			4,639
Other noninterest expenses		3,471			3,419			3,477			3,387			3,216			13,754			13,448
Total Noninterest Expense	$	26,172		$	27,075		$	26,403		$	27,039		$	26,972		$	106,691		$	111,796

Average Balance Sheets and Related Yields and Rates
(Dollar Amounts in Thousands)
	Three Months Ended			Three Months Ended
	December 31, 2024			December 31, 2023
	AVERAGE		YIELD/	AVERAGE		YIELD/
	BALANCE	INTEREST (1)	RATE (1)	BALANCE	INTEREST (1)	RATE (1)
EARNING ASSETS
Loans (2)	$3,270,825	$47,286	5.78%	$3,188,581	$44,868	5.63%
Taxable securities	1,119,391	6,850	2.45	1,113,107	6,536	2.35
Tax-exempt securities (2)	379,342	2,991	3.15	411,860	3,235	3.14
Other investments	38,855	420	4.32	37,625	529	5.62
Federal funds sold and other	104,289	987	3.79	65,236	564	3.46
Total earning assets	4,912,702	58,534	4.77	4,816,409	55,732	4.63
Nonearning assets	247,199			163,905
Total assets	$5,159,901			$4,980,314
INTEREST-BEARING LIABILITIES
Time deposits	$765,674	$7,463	3.90%	$712,485	$6,291	3.53%
Brokered time deposits	74,941	822	4.39	96,634	1,315	5.44
Savings deposits	1,091,547	4,056	1.49	1,068,465	2,918	1.09
Demand deposits - interest bearing	1,419,048	8,731	2.46	1,393,252	7,922	2.27
Total interest-bearing deposits	3,351,210	21,072	2.52	3,270,836	18,446	2.26
Short term borrowings	260,369	3,105	4.77	206,826	2,749	5.32
Long term borrowings	86,096	993	4.61	88,609	1,043	4.71
Total borrowed funds	346,465	4,098	4.73	295,435	3,792	5.13
Total interest-bearing liabilities	3,697,675	25,170	2.72	3,566,271	22,238	2.49
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits - noninterest bearing	973,788			1,035,405
Other liabilities	59,792			54,306
Stockholders' equity	428,646			324,332
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$5,159,901			$4,980,314
Net interest income and interest rate spread		$33,364	2.05%		$33,494	2.14%
Net interest margin			2.72%			2.78%
(1) Interest and yields are calculated on a tax-equivalent basis where applicable.
(2) For 2024, adjustments of $94 thousand and $530 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2023, adjustments of $86 thousand and $577 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances.
	Twelve Months Ended			Twelve Months Ended
	December 31, 2024			December 31, 2023
	AVERAGE		YIELD/	AVERAGE		YIELD/
	BALANCE	INTEREST (1)	RATE (1)	BALANCE	INTEREST (1)	RATE (1)
EARNING ASSETS
Loans (2)	$3,227,384	$186,032	5.76%	$3,155,858	$172,161	5.46%
Taxable securities	1,110,905	26,838	2.42	1,143,547	26,231	2.29
Tax-exempt securities (2)	386,643	12,165	3.15	419,557	13,283	3.17
Other investments	35,402	1,450	4.10	39,559	1,986	5.02
Federal funds sold and other	96,288	3,727	3.87	74,950	2,476	3.30
Total earning assets	4,856,622	230,212	4.74	4,833,471	216,137	4.47
Nonearning assets	234,297			205,683
Total assets	$5,090,919			$5,039,154
INTEREST-BEARING LIABILITIES
Time deposits	$745,945	$29,329	3.93%	$654,717	$19,462	2.97%
Brokered time deposits	25,389	1,108	4.36	132,895	6,204	4.67
Savings deposits	1,095,470	16,144	1.47	1,113,561	9,899	0.89
Demand deposits - interest bearing	1,396,193	34,588	2.48	1,415,425	27,541	1.95
Total interest-bearing deposits	3,262,997	81,169	2.49	3,316,598	63,106	1.90
Short term borrowings	293,488	14,105	4.81	160,964	8,357	5.19
Long term borrowings	87,749	4,090	4.66	88,439	4,086	4.62
Total borrowed funds	381,237	18,195	4.77	249,403	12,443	4.99
Total interest-bearing liabilities	3,644,234	99,364	2.73	3,566,001	75,549	2.12
NONINTEREST-BEARING LIABILITIES
AND STOCKHOLDERS' EQUITY
Demand deposits - noninterest bearing	$981,115			$1,065,389
Other liabilities	58,134			50,302
Stockholders' equity	407,436			357,462
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$5,090,919			$5,039,154
Net interest income and interest rate spread		$130,848	2.01%		$140,588	2.35%
Net interest margin			2.69%			2.91%
(1) Interest and yields are calculated on a tax-equivalent basis where applicable.
(2) For 2024, adjustments of $322 thousand and $2.2 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2023, adjustments of $268 thousand and $1.9 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances.

Reconciliation of Total Assets to Tangible Assets	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
		2024			2024			2024			2024			2023			2024			2023
Total Assets	$	5,118,924		$	5,236,503		$	5,156,853		$	5,080,010		$	5,078,350		$	5,118,924		$	5,078,350
Less Goodwill and other intangibles		188,200			188,340			188,970			189,599			190,288			188,200			190,288
Tangible Assets	$	4,930,724		$	5,048,163		$	4,967,883		$	4,890,411		$	4,888,062		$	4,930,724		$	4,888,062
Average Assets		5,159,901			5,134,062			5,044,516			5,023,966			4,980,314			5,090,919			5,039,154
Less average Goodwill and other intangibles		188,256			188,755			189,382			190,040			191,108			189,105			192,306
Average Tangible Assets	$	4,971,645		$	4,945,307		$	4,855,134		$	4,833,926		$	4,789,206		$	4,901,814		$	4,846,848
Reconciliation of Common Stockholders' Equity to Tangible Common Equity	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
		2024			2024			2024			2024			2023			2024			2023
Stockholders' Equity	$	406,028		$	439,678		$	396,694		$	397,026		$	404,415		$	406,028		$	404,415
Less Goodwill and other intangibles		188,200			188,340			188,970			189,599			190,288			188,200			190,288
Tangible Common Equity	$	217,828		$	251,338		$	207,724		$	207,427		$	214,127		$	217,828		$	214,127
Average Stockholders' Equity		428,646			417,327			387,881			395,549			324,332			407,436			357,462
Less average Goodwill and other intangibles		188,256			188,755			189,382			190,040			191,108			189,105			192,306
Average Tangible Common Equity	$	240,390		$	228,572		$	198,499		$	205,509		$	133,224		$	218,331		$	165,156
Reconciliation of Net Income, Less Merger and Certain Items	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
		2024			2024			2024			2024			2023			2024			2023
Net income	$	14,391		$	8,535		$	11,783		$	11,240		$	14,577		$	45,949		$	49,932
Acquisition related costs - after tax		82			0			0			0			358			82			4,395
Acquisition related provision - after tax		0			0			0			0			0			0			6,077
Employee severence - after tax		0			0			0			0			798			0			798
Lawsuit settlement expense - after tax		0			0			0			0			0			0			620
Net (gain) on loan sale - after tax		0			0			0			0			(723	)		0			(723	)
Net loss (gain) on asset/security sales - after tax		70			(32	)		407			1,675			171			2,120			698
Net income - Adjusted	$	14,543		$	8,503		$	12,190		$	12,915		$	15,181		$	48,151		$	61,797
Diluted EPS excluding merger and certain items	$	0.39		$	0.23		$	0.33		$	0.34		$	0.41		$	1.28		$	1.65
Return on Average Assets excluding merger and certain items (Annualized)		1.13	%		0.66	%		0.97	%		1.03	%		1.22	%		0.95	%		1.23	%
Return on Average Equity excluding merger and certain items (Annualized)		13.57	%		8.15	%		12.57	%		13.06	%		18.72	%		11.82	%		17.29	%
Return on Average Tangible Equity excluding acquisition costs and certain items (Annualized)		24.20	%		14.88	%		24.56	%		25.14	%		45.58	%		22.05	%		37.42	%
Efficiency ratio excluding certain items	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
		2024			2024			2024			2024			2023			2024			2023
Net interest income, tax equated	$	33,364		$	32,483		$	32,661		$	32,341		$	33,494		$	130,848		$	140,588
Noninterest income		11,413			12,340			9,606			8,357			12,156			41,716			41,861
Net (gain) on loan sale		0			0			0			0			(915	)		0			(915	)
Net loss (gain) on asset/security sales		89			(41	)		515			2,120			217			2,684			883
Net interest income and noninterest income adjusted		44,866			44,782			42,782			42,818			44,952			175,248			182,417
Noninterest expense less intangible amortization		25,260			26,446			25,773			26,351			26,394			103,830			108,361
Legal settlement expense		0			0			0			0			0			0			785
Employee severence		0			0			0			0			1,010			0			1,010
Acquisition related costs		92			0			0			0			452			92			5,475
Noninterest expense adjusted		25,168			26,446			25,773			26,351			24,932			103,738			101,091
Efficiency ratio excluding certain items		56.10	%		59.05	%		60.24	%		61.54	%		55.46	%		59.19	%		55.42	%
Net interest margin excluding acquisition marks and PPP interest and fees	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
		2024			2024			2024			2024			2023			2024			2023
Net interest income, tax equated	$	33,364		$	32,483		$	32,661		$	32,341		$	33,494		$	130,848		$	140,588
Acquisition marks		1,953			2,123			2,391			2,370			2,475			8,837			10,946
PPP interest and fees		0			0			1			1			1			2			5
Adjusted and annualized net interest income		125,644			121,440			121,076			119,880			124,072			122,009			129,637
Average earning assets		4,912,702			4,890,344			4,825,532			4,796,922			4,816,409			4,856,622			4,833,471
Less PPP average balances		112			118			171			213			229			153			254
Adjusted average earning assets		4,912,590			4,890,226			4,825,361			4,796,709			4,816,180			4,856,469			4,833,217
Net interest margin excluding marks and PPP interest and fees		2.56	%		2.48	%		2.51	%		2.50	%		2.58	%		2.51	%		2.68	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250127544471/en/

Kevin J. Helmick, President and CEO

20 South Broad Street, P.O. Box 555

Canfield, OH 44406

330.533.3341

Email: exec@farmersbankgroup.com

Source: Farmers National Banc Corp.