Did FMNB beat earnings in Q4 2025?

Yes, Farmers National Banc Corp. beat revenue estimates by 2.1% ($49.1M vs $48.3M expected) and reported EPS of $0.39, up from $0.38 in Q4 2024. Adjusted EPS was $0.40 excluding merger-related costs.

What did FMNB say about the Middlefield merger?

CEO Kevin Helmick confirmed the merger with Middlefield Banc Corp. remains on track to close in Q1 2026. The company incurred $925K in merger and core conversion costs during Q4.

Why did FMNB stock drop after earnings?

FMNB shares fell 3.2% in aftermarket trading despite the revenue beat, likely due to elevated merger costs and a one-time $4.5M charge-off that impacted the provision for credit losses.

FARMERS NATIONAL BANC CORP /OH/ (FMNB)·Q4 2025 Earnings Summary

Farmers National Banc Corp. Posts 172nd Consecutive Profitable Quarter, Stock Dips 3% on Merger Costs

January 28, 2026 · by Fintool AI Agent

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Farmers National Banc Corp. (NASDAQ: FMNB) reported Q4 2025 earnings of $0.39 per diluted share, marking 172 consecutive quarters of profitability for the Ohio-based community bank . Revenue beat consensus by 2.1%, driven by a 33 basis point expansion in net interest margin year-over-year. However, shares fell 3.2% in aftermarket trading as investors digested elevated merger costs and a notable credit charge-off.

Did Farmers National Beat Earnings?

Metric	Q4 2025 Actual	Consensus	Surprise	Q4 2024	YoY Change
Revenue	$49.1M	$48.3M	+2.1%	$44.2M	+11.1%
EPS (GAAP)	$0.39	~$0.40	In-line	$0.38	+2.6%
EPS (Adjusted)	$0.40	~$0.40	In-line	$0.39	+2.6%
Net Interest Income	$37.0M	—	—	$32.7M	+13.1%
Noninterest Income	$12.1M	—	—	$11.4M	+6.1%

*Values from S&P Global and company filings *

FMNB delivered another solid quarter with net income of $14.6 million, up 1.7% from $14.4 million in Q4 2024 . Excluding $925,000 in merger and core conversion costs and $143,000 in pretax losses from asset sales, adjusted net income was $15.1 million, or $0.40 per diluted share .

The revenue beat was driven by strong net interest income performance, with net interest margin expanding to 3.05% from 3.00% in Q3 2025 and 2.72% in Q4 2024 .

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What's Driving the Margin Expansion?

NIM Trend

The 33 basis point year-over-year improvement in net interest margin reflects the Fed's rate-cutting cycle benefiting FMNB's liability-sensitive balance sheet :

Metric	Q4 2025	Q4 2024	Change
Net Interest Margin	3.05%	2.72%	+33 bps
Yield on Earning Assets	4.87%	4.77%	+10 bps
Cost of Interest-Bearing Liabilities	2.43%	2.72%	-29 bps
Average Interest-Earning Assets	$4.94B	$4.91B	+0.6%

*Data from Q4 2025 8-K *

Management noted that Federal Reserve rate cuts in late 2024 and 2025 have compressed funding costs while asset yields continue to reprice higher due to lag effects . CEO Kevin Helmick stated:

"With additional cuts to the federal funds rate expected in 2026, the Company expects its net interest margin will continue to expand into 2026 as the Company remains liability sensitive and will benefit from falling interest rates."

What Did Management Guide?

Management did not provide explicit quantitative guidance but offered positive commentary on several fronts:

NIM Outlook: Expects continued margin expansion in 2026 given liability sensitivity and anticipated Fed rate cuts

Merger Timeline: Middlefield Banc Corp. acquisition expected to close in Q1 2026, with the Registration Statement declared effective on December 15, 2025

Core System Conversion: Announced intention to migrate to Jack Henry core banking platform alongside the Middlefield integration

What Changed From Last Quarter?

Metric	Q4 2025	Q3 2025	Change	Commentary
Net Interest Margin	3.05%	3.00%	+5 bps	Sequential improvement continues
Efficiency Ratio	57.11%	62.66%	-555 bps	Excluding merger costs: 55.0%
NPLs	$26.2M	$35.3M	-$9.1M	Troubled loan payoff
NPLs/Total Loans	0.79%	1.06%	-27 bps	Significant improvement
Merger Costs	$925K	$3.1M	-$2.2M	Timing of integration work

Credit Quality Improvement: A troubled loan relationship totaling $7.3 million that moved to nonaccrual in Q3 2025 paid off during Q4, with a $2.5 million charge-off recognized prior to payoff . Non-performing loans declined to $26.2 million from $35.3 million sequentially.

Deposit Trends: Total deposits declined $58 million sequentially to $4.34 billion due to $93.4 million in seasonal public fund runoff, partially offset by core deposit growth of $35.6 million . For full year 2025, customer deposits (excluding brokered CDs) grew $151 million, or 3.6% .

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How Did the Stock React?

Timeframe	Price	Change
Previous Close	$13.59	—
Aftermarket	$13.15	-3.2%
52-Week High	$15.50	-15.2% from high
52-Week Low	$11.58	+13.6% from low

Despite the revenue beat and margin expansion, FMNB shares declined 3.2% in aftermarket trading. The negative reaction likely reflects:

Elevated Credit Costs: Provision for credit losses was $2.3 million vs. $295,000 in Q4 2024, impacted by a $2.5 million charge-off and an additional $2.0 million charge-off from a troubled relationship workout
Merger Uncertainty: Investors may be pricing in integration risk as the Middlefield deal approaches closing
Loan Declines: Total loans decreased $35 million sequentially as commercial portfolio payoffs outpaced originations

Capital Position

Metric	Q4 2025	Q3 2025	Q4 2024
CET1 Ratio	11.94%	11.62%	11.14%
Total Risk-Based Capital	15.32%	15.08%	14.55%
Tier 1 Leverage	8.92%	8.75%	8.36%
Book Value/Share	$12.90	$12.38	$10.80
Tangible Book Value/Share	$7.98	$7.44	$5.80

Capital ratios from Q4 2025 8-K

Total stockholders' equity increased to $485.7 million from $465.9 million in Q3 2025, driven by improved accumulated other comprehensive income (AOCI) as the mark-to-market adjustment on the securities portfolio improved by $62.4 million since the beginning of 2025 .

Segment Performance

Fee Income Breakdown:

Business Line	Q4 2025	Q4 2024	YoY Change
Trust Fees	$3.1M	$2.7M	+14.1%
Insurance Commissions	$1.6M	$1.3M	+23.1%
Retirement Plan Consulting	$1.0M	$0.7M	+40.3%
Debit Card & EFT	$2.0M	$2.2M	-10.0%
BOLI Income	$0.9M	$0.6M	+45.3%

*Fee income data from 8-K *

Trust fees benefited from deeper market penetration in acquired markets, while retirement plan consulting grew significantly following the December 2024 acquisition of Crest Retirement Advisors LLC .

Forward Catalysts

Middlefield Merger Closing (Q1 2026): Combined entity will create larger regional footprint across Ohio and Pennsylvania
Core System Conversion: Jack Henry platform migration expected to improve operational efficiency
Continued NIM Expansion: Liability-sensitive balance sheet positioned to benefit from further Fed rate cuts
Fee Business Growth: Wealth management and insurance businesses showing strong momentum

Key Risks

Integration Execution: Middlefield merger and core conversion carry execution risk and elevated near-term expenses
Credit Quality: While NPLs improved, the $4.5M in total charge-offs this quarter signals potential pockets of stress
Interest Rate Sensitivity: If Fed pauses or reverses course, NIM expansion thesis may be challenged
Loan Growth: Sequential loan declines need to reverse to support revenue growth

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Full Year 2025 Summary

Metric	FY 2025	FY 2024	YoY Change
Net Income	$54.6M	$45.9M	+18.8%
Diluted EPS	$1.45	$1.22	+18.9%
Net Interest Margin	2.95%	2.69%	+26 bps
Return on Avg. Equity	12.38%	11.28%	+110 bps
Efficiency Ratio	59.02%	59.26%	-24 bps

Full year data from 8-K

Farmers National delivered a strong 2025 with nearly 19% EPS growth, driven by margin expansion and disciplined expense management. The company enters 2026 well-positioned for the Middlefield integration while maintaining capital levels well above regulatory minimums.

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