Farmers National Banc Corp. (FMNB) SEC Filings & Earnings Calls

Loss of a key executive; no succession plan disclosed.

“employment will terminate effective October 15, 2026” · word for word

Merger integration and core conversion costs

“Expense related to the Merger and to convert our core processing system increased to $1.7 million.” · word for word

Net charge-offs increase

“Annualized net charge-offs as a percentage of average loans were 0.30% in the second quarter of 2026, compared to 0.07% in the second quarter of 2025.” · word for word

Unrealized securities losses

“Net unrealized losses on the portfolio totaled $185.6 million at June 30, 2026 , compared to $181.8 million at December 31, 2025.” · word for word

Commercial loan payoffs from Middlefield portfolio were heavier than expected, causing loan balance decline.

“The decline from March was due to heavier than expected commercial loan payoffs from the Middlefield portfolio” · word for word

Continued rate volatility in bond market may affect securities portfolio value.

“The Company anticipates continued rate volatility in the bond market in 2026, which will continue to affect the value of the portfolio.” · word for word

Deposit decline due to seasonal public funds and shrinkage of non-core deposits from acquisition.

“The decline since March was primarily due to seasonal factors associated with public funds and the purposeful shrinkage of certain non-core deposits acquired in the Middlefield transaction.” · word for word

Merger integration and core conversion execution risk

“Expense related to the Merger and to convert our core processing system increased to $4.0 million.” · word for word

Nonperforming loan increase post-Merger

“Nonperforming loans $59,854 thousand at March 31, 2026 vs $26,215 thousand at December 31, 2025.”

Acquisition and core conversion costs of $4.0M impacted GAAP earnings; integration risk remains

“Net income included $4.0 million related to the acquisition of Middlefield Banc Corp. and core conversion costs”

Securities portfolio subject to rate volatility; AFS securities increased to $1.48B

“The Company anticipates continued rate volatility in the bond market in 2026, which will continue to affect the value of the portfolio” · word for word

Integration risk from recent merger with Middlefield Bank

“CEO mentions 'pivotal point in Farmers growth trajectory as we recently completed the merger of Middlefield Bank' and that Simko will have an integral role integrating these new areas.”

TSR underperformance relative to peers

“The long-term cash-based incentive awards based on our relative TSR performance failed to achieve the threshold level of the 25th percentile of the peer group, resulting in no payout on those awards.” · word for word

Credit quality deterioration in commercial real estate

“Nonperforming loans to total loans increased from 0.70% at December 31, 2024 to 0.79% at December 31, 2025 . Nonperforming loans to total loans increased in 2025 primarily due to a single commercial real estate relationship totaling $4.4 million moving into nonaccrual status.” · word for word

Integration and cost risk from acquisitions and system conversion

“Noninterest expense totaled $116.5 million for the year ended December 31, 2025 compared to $106.7 million for the year ended December 31, 2024 . The increase was primarily driven by system conversion and Merger related costs which increased from $92,000 in 2024 to $4.0 million in 2025 .” · word for word

Integration risk; financial statements to be filed within 71 days.

“Item 9.01(a) will be filed by an amendment to this Current Report on Form 8-K not later than 71 calendar days after the date on which this Current Report on Form 8-K is required to be filed.” · word for word

Integration risk from merger with Middlefield Banc Corp.

“Merger expected to close Q1 2026; integration may pose operational and cultural challenges.”

Merger completion risk due to shareholder approval and other conditions

“possibility that the closing of the proposed transaction is delayed or does not occur at all because required shareholder approval or other conditions to the transaction are not obtained or satisfied” · word for word

Provision for credit losses increased significantly due to charge-offs; net charge-offs annualized 0.59%

“Provision for credit losses totaled $2.3 million vs $295,000 prior year; annualized net charge-offs 0.59% vs 0.08% prior year.”

Merger with Middlefield Banc Corp expected to close in Q1 2026; integration risks

“Announced merger with Middlefield Banc Corp., expected to close in first quarter of 2026.”

Merger completion subject to shareholder and regulatory approvals; integration risks.

“Forward-looking statements highlight risks including regulatory approvals, integration, and market conditions.”

Credit quality deterioration

“Nonperforming loans as a % of total loans 1.06% 0.84% 0.64% 0.70% 0.58%” · word for word

Commercial real estate office exposure

“Office 196,580 11.98% 5.89% 59.34% 80.07%”

Integration risk and potential dilution from merger.

“Merger agreement filed; integration risks typical for bank M&A.”