Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): October 25, 2023

Farmers National Banc Corp.

(Exact name of registrant as specified in its charter)

Ohio

001-35296

34-1371693

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)


20 South Broad Street, P.O. Box 555, Canfield, Ohio		44406-0555
(Address of principal executive offices)		(Zip Code)

(330) 533-3341

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
Symbol

Name of each exchange

on which registered

Common Stock, No Par Value

FMNB

The NASDAQ Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02

Results of Operations and Financial Condition.

On October 25, 2023, Farmers National Banc Corp. (the “Company”) announced earnings for the quarter ended September 30, 2023. A copy of the press release and certain financial information for this period is attached as Exhibit 99.1 hereto and incorporated by reference herein.

Also on October 25, 2023, the Company first provided investors with a supplemental presentation regarding third quarter earnings and other current financial information, attached as Exhibit 99.2 hereto and incorporated by reference herein.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 and Exhibits 99.1 and 99.2 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 and Exhibit 99.1 and 99.2 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended (the “Securities Act”) except as may be expressly set forth by specific reference in such filing.

Item 7.01

Regulation FD Disclosure.

On October 25, 2023, the Company first provided investors with a supplemental presentation regarding third quarter earnings and other current financial information, attached as Exhibit 99.2 hereto and incorporated by reference herein.

The presentation is furnished herein, as part of this Item 7.01, as Exhibit 99.2. Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 7.01 and Exhibit 99.2 shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section. Furthermore, the information in this Item 7.01 and Exhibit 99.2 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act, except as may be expressly set forth by specific reference in such filing.

Item 9.01

Financial Statements and Exhibits.

(d)

Exhibits.


Exhibit Number		Description

99.1		Press Release, dated October 25, 2023

99.2		Investor Presentation, dated October 25, 2023

104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


Farmers National Banc Corp.

By:		/s/ Kevin J. Helmick
		Kevin J. Helmick
		President and Chief Executive Officer

Date: October 25, 2023

Exhibit 99.1

October 25, 2023

Press Release

Source:

Farmers National Banc Corp.

Kevin J. Helmick, President and CEO

20 South Broad Street, P.O. Box 555

Canfield, OH 44406

330.533.3341

Email: exec@farmersbankgroup.com

FARMERS NATIONAL BANC CORP. ANNOUNCES

EARNINGS FOR THIRD QUARTER OF 2023

•

Earnings per diluted share of $0.36 ($0.40 excluding certain items, non-GAAP) for the third quarter of 2023

•

163 consecutive quarters of profitability

•

Purchased hedges to improve asset sensitivity

•

Additional FHLB borrowing capacity of $892.6 million as of September 30, 2023

•

Available for sale securities not pledged totaled $353.8 million at September 30, 2023

•

Strong asset quality with non-performing asset to total assets of 0.58% as of September 30, 2023

•

Return on average assets of 1.06% for the third quarter of 2023

•

ROAE and ROATE (non-GAAP) of 14.5% and 30.3%, respectively, for the third quarter of 2023

CANFIELD, Ohio (October 25, 2023) – Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today announced net income of $13.3 million, or $0.36 per diluted share, for the three months ended September 30, 2023, compared to $15.4 million, or $0.46 per diluted share, for the three months ended September 30, 2022. Net income for the third quarter of 2023 included pretax items of $268,000 for acquisition related costs, $785,000 for the settlement of a lawsuit and combined net losses of $764,000 on the sale of securities and the sale of other assets. Excluding these items (non-GAAP), net income for the third quarter of 2023 would have been $14.8 million, or $0.40 per diluted share.

Kevin J. Helmick, President and CEO, stated “Despite the rapid increase in interest rates over the past year and a half, Farmers produced solid third quarter financial results reflecting the benefits of our diverse business model as well as our focus on maintaining strong asset quality and controlling operating expenses. These core banking principals create a solid foundation for Farmers to navigate an increasingly uncertain near-term economic environment, while supporting our long-term growth strategies.”

Balance Sheet

Total assets at September 30, 2023, were $4.97 billion compared to $5.07 billion at June 30, 2023 and $4.08 billion at December 31, 2022. The increase from December was primarily due to the acquisition of Emclaire Financial Corp. (“Emclaire”) which added $1.05 billion in assets in the first quarter of 2023. Loans (excluding loans held for sale) have increased by $763.8 million since December 31, 2022 and $13.4 million, or 1.7% annualized, since June 30, 2023. Emclaire was responsible for $740.7 million of the increase in loans since December 31, 2022.

Securities available for sale have declined to $1.21 billion at September 30, 2023 from $1.32 billion at June 30, 2023 and $1.27 billion at December 31, 2022. The decrease since December is due to the gross amount of unrealized losses which totaled $266.5 million at December 31, 2022, compared to a gross unrealized loss of $320.0 million at September 30, 2023. The Company also had sales and runoff from the portfolio during the nine months ended September 30, 2023. These decreases were offset by the addition of $127.0 million in available for sale securities from Emclaire. Bond market volatility is expected to continue through 2023, and the Company expects that it will continue to allow the size of the securities portfolio to shrink to optimize profitability.

Total customer deposits (excluding brokered time deposits) were $4.26 billion at September 30, 2023, compared to $4.25 billion at June 30, 2023, and $3.42 billion at December 31, 2022. The increase from December was driven by $875.8 million in deposits assumed in the acquisition of Emclaire. Competition for deposits remains high and the Company expects this will continue to place pressure on funding costs and deposit volumes.

Total stockholders’ equity equaled $316.0 million at September 30, 2023 compared to $367.0 million at June 30, 2023, and $292.3 million at December 31, 2022. The increase since December is primarily due to the acquisition of Emclaire and an increase in retained earnings offset by an increase in the unrealized loss from accumulated other comprehensive income. The accumulated other comprehensive loss has increased $41.7 million between December 31, 2022 and September 30, 2023 as market rates spiked sharply during the third quarter of 2023.

Liquidity

At September 30, 2023, the Company’s loan to deposit ratio was 70.2% and the Company’s average deposit balance per account (excluding collateralized deposits) was $27,646. The Company has access to an additional $892.6 million of FHLB borrowing capacity at September 30, 2023 along with $353.8 million of available for sale securities that are not pledged. With a deep and diverse deposit base and access to a large amount of additional funding capacity, the Company is well positioned to navigate the current banking landscape.

Credit Quality

The Company’s non-performing loans totaled $18.4 million at September 30, 2023, compared to $18.0 million at June 30, 2023, and $14.8 million at December 31, 2022. The increase since December was primarily due to the addition of Emclaire. Non-performing loans to total loans ratio was 0.58% at September 30, 2023, 0.57% at June 30, 2023, and 0.62% at December 31, 2022. Non-performing assets to total assets was 0.37% at September 30, 2023, and 0.36% at both June 30, 2023, and December 31, 2022. The Company also continues to experience low levels of early stage delinquencies, defined as 30-89 days delinquent. At September 30, 2023, these delinquencies totaled $13.3 million, or 0.42% of total loans. They were $12.3 million, or 0.39% of total loans at June 30, 2023, compared to $9.6 million, or 0.40% of total loans, at December 31, 2022.

The provision for credit losses and unfunded commitments was $243,000 for the third quarter of 2023 compared to $25,000 for the second quarter of 2023 and $448,000 for the third quarter of 2022. Annualized net charge-offs as a percentage of average loans were 0.05% for the three months ended September 30, 2023, compared to 0.10% for the same period in 2022. The allowance for credit losses to total loans was 1.10% at September 30, 2023, compared to 1.11% at June 30, 2023, and 1.12% at December 31, 2022.

Net Interest Income

The Company reported net interest income of $33.8 million in the third quarter of 2023 compared to $34.6 million in the second quarter of 2023 and $31.8 million for the third quarter of 2022. Earning assets were greater in 2023 due to the acquisition of Emclaire but this was partially offset by a decline of 35 basis point in the net interest margin. The net interest margin was 2.86% in the third quarter of 2023 compared to 2.92% for the second quarter of 2023 and 3.21% for the third quarter of 2022. Excluding the impact of acquisition marks and related accretion and PPP interest and fees, the net interest margin (non-GAAP) for the third quarter of 2023 was 2.61% compared to 2.68% for the second quarter of 2023 and 3.19% for the third quarter of 2022. The decline in net interest margin between the third quarter of 2023 and the third quarter of 2022 was due to increases in funding costs outstripping the increase in yields on earning assets. This increase in funding costs has been due to the rapid increase in deposit rates due to intense competition for deposits, the continued Federal Reserve rate hiking cycle, and runoff of deposit balances which are being replaced by more costly wholesale funding. To help offset the continued compression in the Company’s net interest margin, the Company purchased $100.0 million of pay-fixed/receive variable interest rate swaps during the quarter to improve asset sensitivity and net interest income. The hedges have a final maturity of three years and at inception had a pay rate of 4.35%. Based on rates at September 30, 2023, the swaps are expected to generate approximately $960,000 of annualized net interest income.

Noninterest Income

Noninterest income totaled $9.8 million for the three months ended September 30, 2023, compared to $8.8 million for the three months ended September 30, 2022. Service charges on deposit accounts increased to $1.7 million in the third quarter of 2023 compared to the same period in 2022 primarily due to the acquisition of Emclaire. Bank owned life insurance income, other mortgage banking fee income and debit card income have also increased in the third quarter of 2023 compared to the third quarter of 2022 due to the Emclaire acquisition. Insurance agency commissions are flat in the third quarter of 2023 compared to the second quarter of 2022 but growth for the year has been solid as growth in the insurance business and increased annuity sales have bolstered income. Security losses in the third quarter of 2023 totaled $624,000 compared to losses of $17,000 in the third quarter of 2022. The Company sold securities during the quarter to improve net interest margin in future periods. Investment commissions are up slightly for the quarter ended September 30, 2023 compared to the quarter ended September 30, 2022, as customers have been more interested in the annuities mentioned above as opposed to traditional investment products. Net gains on the sale of loans have increased but are still sluggish due to the high level of interest rates and lack of loan volume.

Noninterest Expense

Noninterest expense was $27.7 million for the quarter ended September 30, 2023, compared to $21.4 million for the quarter ended September 30, 2022. The increase in expense is primarily due to the acquisition of Emclaire. Salaries and employee benefits increased $3.5 million to $14.2 million in the third quarter of 2023 compared to the same period in 2022. The acquisition of Emclaire along with normal raise activity were the primary reasons for the increase. Occupancy and equipment expense increased $782,000 primarily due to the acquisition. FDIC and state and local taxes increased due to the acquisition and the increase in the rate paid for FDIC insurance in 2023. Intangible amortization expense and core processing charges increased due to the acquisition. Merger related costs were $268,000 for the third quarter of 2023 compared to $872,000 in the third quarter of 2022. Other noninterest expense increased due the acquisition and due to the recognition of $785,000 in expense related to the settlement of a lawsuit.

About Farmers National Banc Corp.

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $5.0 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 64 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 September 30, 2023 are $3.2 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; Farmers’ failure to integrate Emclaire with Farmers in accordance with expectations; deviations from performance expectations related to Emclaire; continuing impacts from the length and extent of the economic impacts of the COVID-19 pandemic; and the other factors contained in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2022 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 Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,			Percent
	2023			2023			2023			2022			2022			2023			2022			Change
Total interest income	$	54,229		$	52,804		$	51,233		$	38,111		$	36,410		$	158,266		$	103,975			52.2	%
Total interest expense		20,461			18,226			14,623			8,679			4,629			53,310			9,241			476.9	%

Net interest income		33,768			34,578			36,610			29,432			31,781			104,956			94,734			10.8	%
Provision (credit) for credit losses		243			25			8,599			416			448			8,867			706			1155.9	%
Noninterest income		9,831			9,449			10,425			8,200			8,827			29,705			36,002			-17.5	%
Acquisition related costs		268			442			4,313			584			872			5,022			3,486			44.1	%
Other expense		27,448			25,944			26,409			20,511			20,527			79,802			69,830			14.3	%

Income before income taxes		15,640			17,616			7,714			16,121			18,761			40,970			56,714			-27.8	%
Income taxes		2,326			2,650			639			2,765			3,315			5,614			9,473			-40.7	%

Net income	$	13,314		$	14,966		$	7,075		$	13,356		$	15,446		$	35,356		$	47,241			-25.2	%

Average diluted shares outstanding		37,379			37,320			37,933			33,962			33,932			37,533			33,925
Basic earnings per share		0.36			0.40			0.19			0.39			0.46			0.94			1.40
Diluted earnings per share		0.36			0.40			0.19			0.39			0.46			0.94			1.39
Cash dividends per share		0.17			0.17			0.17			0.17			0.16			0.51			0.48
Performance Ratios
Net Interest Margin (Annualized)		2.86	%		2.92	%		3.07	%		2.99	%		3.21	%		2.95	%		3.24	%
Efficiency Ratio (Tax equivalent basis)		60.11	%		56.28	%		62.53	%		52.59	%		50.55	%		59.70	%		54.00	%
Return on Average Assets (Annualized)		1.06	%		1.18	%		0.56	%		1.31	%		1.48	%		0.93	%		1.51	%
Return on Average Equity (Annualized)		14.49	%		16.12	%		7.71	%		20.16	%		18.71	%		12.79	%		16.55	%
Dividends to Net Income		47.82	%		42.54	%		90.50	%		43.10	%		35.06	%		36.21	%		34.39	%
Other Performance Ratios (Non-GAAP)
Return on Average Tangible Assets		1.09	%		1.23	%		0.58	%		1.34	%		1.52	%		0.97	%		1.55	%
Return on Average Tangible Equity		30.29	%		33.55	%		16.31	%		32.81	%		27.06	%		26.80	%		22.62	%

Consolidated Statements of Financial Condition


	Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,
	2023		2023		2023		2022		2022
Assets
Cash and cash equivalents	$	93,923	$	116,063	$	128,001	$	75,551	$	79,981
Securities available for sale		1,210,736		1,316,878		1,355,449		1,268,025		1,295,133
Other investments		35,342		44,975		39,670		33,444		34,399

Loans held for sale		1,910		2,197		1,703		858		2,142
Loans		3,168,554		3,155,200		3,152,339		2,404,750		2,399,981
Less allowance for credit losses		34,753		34,957		36,011		26,978		27,282

Net Loans		3,133,801		3,120,243		3,116,328		2,377,772		2,372,699

Other assets		495,451		473,098		468,735		326,550		335,668

Total Assets	$	4,971,163	$	5,073,454	$	5,109,886	$	4,082,200	$	4,120,022

Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing	$	1,039,524	$	1,084,232	$	1,106,870	$	896,957	$	934,638
Interest-bearing		3,217,869		3,165,381		3,207,121		2,526,760		2,590,054
Brokered time deposits		254,257		21,135		82,169		138,051		42,459

Total deposits		4,511,650		4,270,748		4,396,160		3,561,768		3,567,151
Other interest-bearing liabilities		88,550		388,437		292,324		183,211		243,098
Other liabilities		54,981		47,278		46,760		44,926		44,154

Total liabilities		4,655,181		4,706,463		4,735,244		3,789,905		3,854,403
Stockholders’ Equity		315,982		366,991		374,642		292,295		265,619

Total Liabilities and Stockholders’ Equity	$	4,971,163	$	5,073,454	$	5,109,886	$	4,082,200	$	4,120,022


Period-end shares outstanding		37,489			37,457			37,439			34,055			34,060
Book value per share	$	8.43		$	9.80		$	10.01		$	8.58		$	7.80
Tangible book value per share (Non-GAAP)*		3.33			4.67			4.84			5.60			4.79

* Tangible book value per share is calculated by dividing tangible common equity by outstanding shares

Capital and Liquidity
Common Equity Tier 1 Capital Ratio (a)		10.54	%		10.25	%		10.04	%		13.71	%		13.36	%
Total Risk Based Capital Ratio (a)		14.06	%		13.76	%		13.60	%		17.79	%		17.44	%
Tier 1 Risk Based Capital Ratio (a)		11.04	%		10.74	%		10.54	%		14.32	%		13.97	%
Tier 1 Leverage Ratio (a)		7.85	%		7.68	%		7.43	%		9.84	%		10.24	%
Equity to Asset Ratio		6.36	%		7.23	%		7.33	%		7.16	%		6.45	%
Tangible Common Equity Ratio (b)		2.61	%		3.58	%		3.69	%		4.79	%		4.06	%
Net Loans to Assets		63.04	%		61.50	%		60.99	%		58.25	%		57.59	%
Loans to Deposits		70.23	%		73.88	%		71.71	%		67.52	%		67.28	%
Asset Quality
Non-performing loans	$	18,368		$	17,956		$	17,959		$	14,803		$	12,976
Non-performing assets		18,522			18,167			18,053			14,876			13,042
Loans 30 - 89 days delinquent		13,314			12,321			10,219			9,605			6,659
Charged-off loans		525			971			469			754			783
Recoveries		139			172			198			184			178
Net Charge-offs		386			799			271			570			605
Annualized Net Charge-offs to Average Net Loans		0.05	%		0.10	%		0.03	%		0.10	%		0.10	%
Allowance for Credit Losses to Total Loans		1.10	%		1.11	%		1.14	%		1.12	%		1.14	%
Non-performing Loans to Total Loans		0.58	%		0.57	%		0.57	%		0.62	%		0.54	%
Allowance to Non-performing Loans		189.20	%		194.68	%		200.52	%		182.25	%		210.25	%
Non-performing Assets to Total Assets		0.37	%		0.36	%		0.35	%		0.36	%		0.32	%

(a)	September 30, 2023 ratio is estimated

(b)	This is a non-GAAP financial measure. A reconciliation to GAAP is shown below


	For the Three Months Ended
End of Period Loan Balances	Sept. 30, 2023		June 30, 2023		March 31, 2023		Dec. 31, 2022		Sept. 30, 2022
Commercial real estate	$	1,295,847	$	1,284,974	$	1,286,830	$	1,028,050	$	1,028,484
Commercial		357,691		362,664		361,845		293,643		296,932
Residential real estate		842,729		849,533		853,074		475,791		474,014
HELOC		140,772		138,535		137,319		132,179		132,267
Consumer		261,136		260,326		260,596		221,260		222,706
Agricultural loans		261,738		250,807		244,938		246,937		239,081

Total, excluding net deferred loan costs	$	3,159,913	$	3,146,839	$	3,144,602	$	2,397,860	$	2,393,484


	For the Three Months Ended
End of Period Customer Deposit Balances	Sept. 30, 2023		June 30, 2023		March 31, 2023		Dec. 31, 2022		Sept. 30, 2022
Noninterest-bearing demand	$	1,039,524	$	1,084,232	$	1,106,870	$	896,957	$	934,638
Interest-bearing demand		1,426,349		1,383,326		1,473,001		1,224,884		1,399,227
Money market		588,043		610,051		599,037		435,369		393,005
Savings		488,991		511,642		535,321		441,978		460,709
Certificate of deposit		714,486		660,362		599,762		424,529		337,113

Total customer deposits	$	4,257,393	$	4,249,613	$	4,313,991	$	3,423,717	$	3,524,692


	For the Three Months Ended													For the Nine Months Ended
Noninterest Income	Sept. 30, 2023			June 30, 2023		March 31, 2023		Dec. 31, 2022			Sept. 30, 2022			Sept. 30, 2023			Sept. 30, 2022
Service charges on deposit accounts	$	1,712		$	1,501	$	1,432	$	1,203		$	1,229		$	4,646		$	3,513
Bank owned life insurance income, including death benefits		694			584		547		590			406			1,825			1,220
Trust fees		2,617			2,248		2,587		2,373			2,370			7,453			7,265
Insurance agency commissions		1,116			1,332		1,456		1,133			1,136			3,904			3,269
Security gains (losses), including fair value changes for equity securities		(624	)		13		121		(366	)		(17	)		(490	)		(88	)
Retirement plan consulting fees		360			382		307		337			332			1,049			1,052
Investment commissions		520			476		393		508			424			1,389			1,675
Net gains on sale of loans		395			406		310		242			326			1,111			1,820
Other mortgage banking fee income (loss), net		185			234		153		98			94			571			193
Debit card and EFT fees		1,763			1,810		1,789		1,407			1,463			5,362			4,407
Other noninterest income		1,093			463		1,330		675			1,064			2,885			11,676

Total Noninterest Income	$	9,831		$	9,449	$	10,425	$	8,200		$	8,827		$	29,705		$	36,002


	For the Three Months Ended										For the Nine Months Ended
Noninterest Expense	Sept. 30, 2023		June 30, 2023		March 31, 2023		Dec. 31, 2022		Sept. 30, 2022		Sept. 30, 2023		Sept. 30, 2022
Salaries and employee benefits	$	14,233	$	13,625	$	14,645	$	11,385	$	10,724	$	42,503	$	33,628
Occupancy and equipment		3,810		3,859		3,869		2,753		3,028		11,538		8,626
FDIC insurance and state and local taxes		1,648		1,494		1,222		1,010		1,017		4,365		2,941
Professional fees		1,043		1,190		1,114		938		985		3,347		5,176
Merger related costs		268		442		4,313		584		872		5,022		3,486
Advertising		492		478		409		472		596		1,379		1,475
Intangible amortization		725		1,222		909		702		432		2,856		1,271
Core processing charges		1,274		1,144		1,164		742		738		3,582		2,606
Other noninterest expenses		4,223		2,932		3,077		2,509		3,007		10,232		14,107

Total Noninterest Expense	$	27,716	$	26,386	$	30,722	$	21,095	$	21,399	$	84,824	$	73,316

Business Combination


Consideration
Cash	$	33,440
Stock		59,202

Fair value of total consideration transferred	$	92,642

Fair value of assets acquired
Cash and cash equivalents	$	20,265
Securities available for sale		126,970
Other investments		7,795
Loans, net		740,659
Premises and equipment		16,103
Bank owned life insurance		22,485
Core deposit intangible		19,249
Current and deferred taxes		17,246
Other assets		6,387

Total assets acquired		977,159
Fair value of liabilities assumed
Deposits		875,813
Short-term borrowings		75,000
Accrued interest payable and other liabilities		7,104

Total liabilities		957,917

Net assets acquired	$	19,242
Goodwill created		73,400

Total net assets acquired	$	92,642

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)


	Three Months Ended							Three Months Ended
	September 30, 2023							September 30, 2022
	AVERAGE				YIELD/			AVERAGE				YIELD/
	BALANCE		INTEREST (1)		RATE (1)			BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	3,153,309	$	43,928		5.57	%	$	2,386,184	$	27,570		4.62	%
Taxable securities		1,132,959		6,492		2.29			1,112,411		5,477		1.97
Tax-exempt securities (2)		413,117		3,251		3.15			473,677		3,814		3.22
Other investments		42,581		487		4.57			33,524		199		2.37
Federal funds sold and other		78,922		751		3.81			59,289		205		1.38

Total earning assets		4,820,888		54,909		4.56			4,065,085		37,265		3.67
Nonearning assets		215,445							99,770

Total assets	$	5,036,333						$	4,164,855

INTEREST-BEARING LIABILITIES
Time deposits	$	677,291	$	5,308		3.13	%	$	338,794	$	586		0.69	%
Brokered time deposits		145,839		1,882		5.16			50,494		142		1.12
Savings deposits		1,099,682		2,625		0.95			832,828		165		0.08
Demand deposits - interest bearing		1,412,922		7,647		2.16			1,426,801		2,317		0.65
Short term borrowings		141,717		1,961		5.53			90,978		533		2.34
Long term borrowings		88,494		1,038		4.69			88,031		886		4.03

Total interest-bearing liabilities	$	3,565,945		20,461		2.30		$	2,827,926		4,629		0.65

NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits - noninterest bearing		1,052,062							969,700
Other liabilities		50,726							36,929
Stockholders’ equity		367,600							330,300

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,036,333						$	4,164,855

Net interest income and interest rate spread			$	34,448		2.26	%			$	32,636		3.02	%

Net interest margin						2.86	%						3.21	%

(1)	Interest and yields are calculated on a tax-equivalent basis where applicable.

(2)

For 2023, adjustments of $90 thousand and $590 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2022, adjustments of $76 thousand and $779 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.


	Nine Months Ended							Nine Months Ended
	September 30, 2023							September 30, 2022
	AVERAGE				YIELD/			AVERAGE				YIELD/
	BALANCE		INTEREST (1)		RATE (1)			BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	3,144,817	$	127,293		5.40	%	$	2,346,542	$	79,008		4.49	%
Taxable securities		1,153,804		19,697		2.28			1,074,020		15,287		1.90
Tax-exempt securities (2)		422,151		10,048		3.17			469,878		11,372		3.23
Other investments		40,211		1,457		4.83			32,901		545		2.21
Federal funds sold and other		78,224		1,911		3.26			82,031		348		0.57

Total earning assets		4,839,207		160,406		4.42			4,005,372		106,560		3.55
Nonearning assets		219,762							160,975

Total assets	$	5,058,969						$	4,166,347

INTEREST-BEARING LIABILITIES
Time deposits	$	636,939	$	13,171		2.76	%	$	357,241	$	1,782		0.67	%
Brokered time deposits		145,115		4,889		4.49			37,400		206		0.73
Savings deposits		1,128,760		6,981		0.82			837,937		473		0.07
Demand deposits - interest bearing		1,421,208		19,619		1.84			1,422,583		3,644		0.34
Short term borrowings		145,509		5,608		5.14			45,568		631		1.85
Long term borrowings		88,382		3,043		4.59			87,915		2,505		3.80

Total interest-bearing liabilities	$	3,565,913		53,311		1.99		$	2,788,644		9,241		0.44
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits - noninterest bearing	$	1,075,493						$	966,173
Other liabilities		48,936							30,904
Stockholders’ equity		368,627							380,626

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,058,969						$	4,166,347

Net interest income and interest rate spread			$	107,095		2.43	%			$	97,319		3.11	%

Net interest margin						2.95	%						3.24	%

(1)	Interest and yields are calculated on a tax-equivalent basis where applicable.

(2)

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. For 2022, adjustments of $238 thousand and $2.3 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 Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2023			2023			2023			2022			2022			2023			2022
Total Assets	$	4,971,163		$	5,073,454		$	5,109,886		$	4,082,200		$	4,120,022		$	4,971,163		$	4,120,022
Less Goodwill and other intangibles		191,326			192,052			193,273			101,666			102,368			191,326			102,368

Tangible Assets	$	4,779,837		$	4,881,402		$	4,916,613		$	3,980,534		$	4,017,654		$	4,779,837		$	4,017,654

Average Assets		5,058,969			5,070,444			5,085,009			4,080,497			4,164,855			5,058,969			4,166,347
Less average Goodwill and other intangibles		191,804			192,972			193,368			102,126			101,981			192,709			102,160

Average Tangible Assets	$	4,867,165		$	4,877,472		$	4,891,641		$	3,978,371		$	4,062,874		$	4,866,260		$	4,064,187

Reconciliation of Common Stockholders’ Equity to Tangible Common Equity
	For the Three Months Ended															For the Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2023			2023			2023			2022			2022			2023			2022
Stockholders’ Equity	$	315,982		$	366,991		$	374,642		$	292,295		$	265,619		$	315,982		$	265,619
Less Goodwill and other intangibles		191,326			192,052			193,273			101,666			102,368			191,326			102,368

Tangible Common Equity	$	124,656		$	174,939		$	181,369		$	190,629		$	163,251		$	124,656		$	163,251

Average Stockholders’ Equity		367,600			371,421			366,851			264,939			330,300			368,627			380,626
Less average Goodwill and other intangibles		191,804			192,972			193,368			102,126			101,981			192,709			102,160

Average Tangible Common Equity	$	175,796		$	178,449		$	173,483		$	162,813		$	228,319		$	175,918		$	278,466

Reconciliation of Net Income, Less Merger and Certain Items
	For the Three Months Ended															For the Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2023			2023			2023			2022			2022			2023			2022
Net income	$	13,314		$	14,966		$	7,075		$	13,356		$	15,446		$	35,356		$	47,241
Acquisition related costs - after tax		234			354			3,449			475			711			4,037			2,815
Acquisition related provision - after tax		0			0			6,077			0			0			6,077			0
Lawsuit settlement income - after tax		0			0			0			0			0			0			(6,616	)
Lawsuit settlement contingent legal expense - after tax		0			0			0			0			0			0			1,639
Lawsuit settlement expense - after tax		620			0			0			0			0			620			0
Charitable donation - after tax		0			0			0			0			0			0			4,740
Net loss (gain) on asset/security sales - after tax		604			(5	)		(72	)		268			4			527			76

Net income - Adjusted	$	14,772		$	15,315		$	16,529		$	14,099		$	16,161		$	46,617		$	49,895

Diluted EPS excluding merger and certain items	$	0.40		$	0.41		$	0.44		$	0.42		$	0.48		$	1.24		$	1.47

Return on Average Assets excluding merger and certain items (Annualized)		1.17	%		1.21	%		1.30	%		1.36	%		1.55	%		1.23	%		1.60	%
Return on Average Equity excluding merger and certain items (Annualized)		16.07	%		16.49	%		18.02	%		21.29	%		19.57	%		16.86	%		17.48	%
Return on Average Tangible Equity excluding acquisition costs and certain items (Annualized)		33.61	%		34.33	%		38.11	%		34.64	%		28.31	%		35.33	%		23.89	%


Efficiency ratio excluding certain items
	For the Three Months Ended															For the Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2023			2023			2023			2022			2022			2023			2022
Net interest income, tax equated	$	34,448		$	35,273		$	37,374		$	30,212		$	32,636		$	107,095		$	97,319
Noninterest income		9,831			9,449			10,425			8,200			8,827			29,705			36,002
Legal settlement income		0			0			0			0			0			0			(8,375	)
Net loss (gain) on asset/security sales		764			(6	)		(91	)		338			6			667			97

Net interest income and noninterest income adjusted		45,043			44,716			47,708			38,750			41,469			137,467			125,043
Noninterest expense less intangible amortization		26,991			25,163			29,813			20,393			20,967			81,968			72,045
Charitable donation		0			0			0			0			0			0			6,000
Legal settlement expense		785			0			0			0			0			785			0
Contingent legal settlement expense		0			0			0			0			0			0			2,075
Acquisition related costs		268			442			4,313			584			872			5,022			3,486

Noninterest expense adjusted		25,938			24,721			25,500			19,809			20,095			76,161			60,484

Efficiency ratio excluding certain items		57.58	%		55.28	%		53.45	%		51.12	%		48.46	%		55.40	%		48.37	%


Net interest margin excluding acquisition marks and PPP interest and fees
	For the Three Months Ended															For the Nine Months Ended
	Sept. 30,			June 30,			March 31,			Dec. 31,			Sept. 30,			Sept. 30,			Sept. 30,
	2023			2023			2023			2022			2022			2023			2022
Net interest income, tax equated	$	34,448		$	35,273		$	37,374		$	30,212		$	32,636		$	107,095		$	97,319
Acquisition marks		2,959			2,884			2,628			174			215			8,471			1,584
PPP interest and fees		1			3			0			10			62			4			1,382

Adjusted and annualized net interest income		125,952			129,544			138,984			120,112			129,436			131,493			125,804

Average earning assets		4,820,888			4,830,910			4,866,263			4,047,343			4,065,085			4,839,207			4,005,372

Less PPP average balances		247			277			310			485			1,586			262			15,766

Adjusted average earning assets		4,820,641			4,830,633			4,865,953			4,046,858			4,063,499			4,838,945			3,989,606

Net interest margin excluding marks and PPP interest and fees		2.61	%		2.68	%		2.86	%		2.97	%		3.19	%		2.72	%		3.15	%

Exhibit 99.2 Q3 2023 Investor Presentation NASDAQ: FMNB

Disclosure Statement Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the financial condition, results of operations, asset quality trends and profitability of Farmers National Banc Corp. (“Farmers”). Forward-looking statements are not historical facts but instead express only management’s current expectations and forecasts of future events or long-term-goals, 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 those indicated in these forward-looking statements. Factors that could cause Farmers’ actual results to differ materially from those described in the 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; Farmers’ failure to integrate Emclaire and Emlenton with Farmers in accordance with expectations; deviations from performance expectations related to Emclaire and Emlenton; continuing impacts from the length and extent of the economic impacts of the COVID-19 pandemic; and the other factors contained in Farmers’ periodic reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2022, and Quarterly Report on Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on Farmers’ website (www.farmersbankgroup.com) and on the Securities and Exchange Commission’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 undertakes no obligation to update forward-looking statements, whether as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures This presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures include “Core Deposits” and “Tangible Common Equity ratio.” Farmers believes that these non-GAAP financial measures provide both management and investors a more complete understanding of Farmers’ deposit profile and capital. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Because not all companies use the same calculation of “Core Deposits” and “Tangible Common Equity ratio,” this presentation may not be comparable to other similarly titled measures as calculated by other companies. 2

About Farmers National Banc Corp. • $5.0 billion in banking assets • $3.2 billion in wealth management assets under care • $0.68 (6.2%) annualized dividend yield* • Named a Best Employer in Ohio the past 2 years** • Founded in 1887 • 163 consecutive quarters of profitability • Strong and diverse franchise currently operating • 64 banking locations throughout Ohio and Pennsylvania • Growth plan focused on combining big bank capabilities with local bank service *Stock data as of October 19, 2023 3 **Source: Best Companies Group

Local, Established & Experienced Leadership Team Kevin Helmick (51) Troy Adair (57) Tim Carney (57) Jim Gasior (62) Amber Wallace (57) Michael Matuszak (55) President & Senior Executive Vice President, Senior Executive Vice President, Senior Executive Vice President, Senior Executive Vice President, Senior Executive Vice President, Chief Executive Officer Chief Financial Officer Chief Banking Officer Corporate Development Officer Chief Retail/Marketing Officer Chief Operating Officer Timothy Shaffer (60) Mark Wenick (63) Brian Jackson (53) Michael Oberhaus (47) Mark Nicastro (52) William Shivers (62) Senior Executive Vice President, Senior Executive Vice President, Executive Vice President, Executive Vice President, Executive Vice President, Senior Vice President, Chief Chief Credit Officer Chief Wealth Management Officer Chief Information Officer Chief Risk Officer Chief Human Resources Officer Commercial Lending Officer Training Talent Acquisition Robust Succession Planning Alignment with Shareholders • Farmers Academy• Comprehensive recruitment • Annual review• Structure of STI and LTI programs program encourages sound business • In-house leadership/management • Multi-layered approach practices and appropriate levels of training program• High percentage of referrals come focused on core competencies of risk management from our employees position • Ohio Bankers League Bank • Recognition as Best Employer in − Linked to annual performance Management School • Retention of key executives Ohio in 2019, 2020, 2022 as voted appraisal and development plan by our employees* − Current executive team has been • Executive succession planning with the bank for over nine years • Key metrics of success reflected in reviewed at holding company consistent results board level 4 * Source: Best Companies Group

Farmers Strategic Vision Leveraging our History with Modern Banking Technologies to Support our Future Invest in our Franchise Drive Financial Excellence • Leverage technology• Strive for performance metrics in top quartile ranking vs. peer group • Drive efficiencies through Six Sigma operating framework• Focus on growing noninterest income • Strive to be customer centric and provide exceptional experiences • Proactive capital management • Assure Farmers is the best place to work • Maintain financial strength • Continued pursuit of organic and M&A opportunities • Prudent risk management and focus on asset quality 5

Proven Acquisition History and Strategy Long-term strategy of value-enhancing acquisitions $6,000 Emclaire Seven acquisitions in the past eight Financial years, including recently announced (2023) acquisition of Emclaire Financial $5,000 Cortland Bancorp (2021) Target franchises with similar culture, compelling reputation, and strong $4,000 Maple Leaf customer base (2020) Bowers Insurance (2016) $3,000 Focus on businesses that support cross Farmers National sell opportunities and diversify footprint Trust Bancshares into compelling banking markets Company (2015) Private Client (2009) Services $2,000 (2012) Farmers Monitor National Bancorp Insurance (2017) Manageable initial tangible book value (2008) dilution $1,000 st Tri-state 1 Banc National (2015) Associates (2013) $- Reasonable price with a currency mix of 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 cash and stock Assets Wealth Management Assets • Graph in millions 6 • As of September 30, 2023

Financial Performance NASDAQ: FMNB

Balance Sheet Strengths (1) 9/30/23 12/31/22 Improved Customer Deposits** $4.3 billion* $3.4 billion ✓ Cash Balances $93.9 million $75.6 million ✓ (1) Loan-to-Deposit Ratio 70.2% 67.5% ✓ Nonperforming Loans to Total Loans 0.58% 0.62% ✓ Allowance to Nonperforming Loans 189.2% 182.3% ✓ *This figure includes $875.8 million in deposits from Emclaire acquisition. **Excludes Brokered Time Deposits. 7

Core Results Overview Core Net Income • Record core net income in 2022 $65,000 • Core EPS remains strong through challenging environments $55,000 $45,000 $35,000 $25,000 $15,000 $5,000 2019 2020 2021 2022 YTD 9/30/23 Core EPS Core Return on Assets 1.83% $2.50 $2.13 1.55% 1.54% 1.51% $1.89 $2.00 1.23% $1.57 $1.50 $1.29 $1.24 $1.00 $0.50 $0.00 2019 2020 2021 2022 YTD 9/30/23 2019 2020 2021 2022 YTD 9/30/23 8 Core items exclude the impact of acquisition related provision and other items. See Non-GAAP reconciliation in appendix.

Loan Portfolio Overview Overview Rate Type Segments • Total loans $3.2 billion Variable, 14% • Diverse loan mix • Farmers’ practice is to lend primarily within its market area Fixed, 52% Adjustable, 34% Total Loans (in millions) Net Loans to Assets $3,500.00 73.4% 66.9% $3,000.00 63.0% 58.3% $2,500.00 55.6% $2,000.00 $1,500.00 $1,000.00 $500.00 $0.00 2019 2020 2021 2022 9/30/2023 2019 2020 2021 2022 9/30/2023 CRE C&I Agricultural Residential Mortgage Consumer 9

CRE Overview CRE Breakdown Construction, • Well diversified portfolio 6% Owner Multifamily, • Strong credit culture Occupied, 29% 10% • Independent loan review Non-owner Occupied, 55% CRE Categories Loans by Industry Type 8% Category Balance % of CRE % of Port 12% Retail $ 353,114 27% 11% Commercial Real Estate Office $ 160,710 12% 5% 41% Residential Real Estate Medical $ 151,966 12% 5% Consumer Warehouse/Industrial $ 161,337 12% 5% 13% Commercial & Industrial Multifamily $ 128,239 10% 4% Agricultural Special Purpose $ 9 8,862 8% 3% Hotel $ 58,079 4% 2% Restaurant $ 57,376 4% 2% 27% Multifamily - Construction $ 2 1,566 2% 1% Remainder $ 103,397 8% 3% Total $ 1 ,294,646 10

Asset Quality Trends Overview Annualized Net Charge-Offs to Avg. Net Loans • Early-stage delinquencies were $13.3 million, or 0.42% of total 0.11% loans at September 30, 2023, compared to $9.6 million, or 0.40% of 0.09% total loans at December 31, 2022 0.07% • Conservative underwriting practices 0.06% • Sound reserve levels under CECL 0.04% 2019 2020 2021 2022 9/30/2023 NPLs/Total Loans & Leases ($ in thousands) ACL to Total Loans 1.26% $20,000 0.80% 1.12% 1.10% 1.07% 0.70% $15,000 0.60% 0.80% 0.50% $10,000 0.40% 0.30% $5,000 0.20% 0.10% $- 0.00% 2019 2020 2021 2022 9/30/2023 2019 2020 2021 2022 9/30/2023 NPLs NPLs / Total Loans 11

Securities Portfolio Overview CMOs, 6.3% Mortgage Corporates, 1.7% • All of the Investment securities portfolio is categorized as U.S. Government, Backed available for sale 10.0% Securities • All MBS and CMOs are U.S. government agency issued 40.9% • All municipal securities are investment grade, many with credit enhancements • The duration of the available for sale securities portfolio is 7.2 year at September 30, 2023 • Assuming no changes to interest rates, the AOCI is expected to have accretion of approximately $32.4 million, or 10% over the next four quarters • Over the next three years, the AOCI is expected to have accretion of approximately $92.7 million, or 29.0% assuming no changes to interest rates Municipals, 41.1% 12

Deposit Trends Customer Deposit Composition (in millions) Overview • We are proud to say our bank is built on core deposits $4,500 • Total deposits: $4.51 billion $4,000 • Noninterest-bearing stood at 23.0% of total deposits $3,500 $3,000 $2,500 Customer Deposit Composition (in millions) $2,000 $4,000 $1,500 $3,218 $3,000 $2,527 $1,000 $2,000 $500 $897 $1,039 $1,000 $0 $- 2019 2020 2021 2022 9/30/2023 31-Dec-22 30-Sep-23 Noninterest-Bearing Interest-Bearing Demand Money Market Savings Time Deposits Noninterest-bearing Interest-bearing 13

Liquidity Farmers National Banc Corp. has the following sources of liquidity at the holding company as of September 30, 2023: • $60.6 million of cash and equivalents • $5.0 million in unsecured lines of credit with a zero balance Farmers National Bank has the following sources of liquidity as of September 30, 2023: • $89.0 million of cash and equivalents • $892.6 million of additional borrowing capacity at the FHLB • $25.0 million of unsecured lines of credit with a zero balance • $353.8 million of available for sale securities that are not pledged • Brokered CDs • Securities roll-off of approximately $66.2 million in next 12 months 14

Net Interest Income and NIM Trends Overview Net Interest Income (in thousands) $140,000 • Focused on growing loans to manage net interest margin $120,000 • Managing cost of funds and deposit betas through rising rate $100,000 environment $80,000 $60,000 $40,000 $20,000 2019 2020 2021 2022 YTD 9/30/2023 Net Interest Margin (annualized) Loans to Deposits 100.00% 3.82% 3.70% 3.45% 80.00% 3.18% 2.95% 60.00% 40.00% 20.00% 0.00% 2019 2020 2021 2022 YTD 9/30/23 2019 2020 2021 2022 9/30/2023 15

Noninterest Income Trends Overview Total Noninterest Income* (in thousands) $50,000 • Robust Trust, Wealth Management and Insurance businesses $40,000 • Diverse revenue sources • Working to increase noninterest income to total revenue $30,000 $20,000 $10,000 $- 2019 2020 2021 2022 YTD 9/30/2023 Noninterest Income to Total Revenue* Components of Noninterest Income* (in thousands) $40,000 27.3% 26.1% 25.4% $35,000 22.4% 22.1% $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- 2019 2020 2021 2022 YTD 9/30/23 2019 2020 2021 2022 YTD 9/30/23 Wealth Mortgage Banking Svc Chgs/Debit Fees Other 16 *Noninterest income in 2022 excludes $8.4 million in income related to the proceeds of a one-time legal settlement. See Non-GAAP reconciliation in appendix.

Noninterest Expense Trends 1) (1) Overview Noninterest Expense to Average Assets • Overall focus on driving efficiencies 2.71% 2.43% • The Company recently added the position of Chief Operating Officer 2.08% 2.05% 1.98% who will spearhead process improvement efforts • Track record of prudent expense management 2019 2020 2021 2022 YTD 9/30/2023 (2) (1) Noninterest Expense (in thousands) Efficiency Ratio $90,000 56.3% 55.4% $80,000 49.4% 49.0% 46.3% $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $- 2019 2020 2021 2022 YTD 9/30/23 2019 2020 2021 2022 YTD 9/30/2023 (1) Both ratios adjusted for certain items. See Non-GAAP reconciliation in appendix. 17 (2) All periods adjusted for certain items. See Non-GAAP reconciliation in appendix.

Capital Overview Tangible Equity to Tangible Assets • All regulatory capital ratios above well-capitalized threshold 10.26% 9.22% • Announced 1,000,000 share repurchase program in Q1 2023 8.92% • Strong dividend payout 10.67% 9.94% 9.15% 10.08% 7.88% 4.79% 2.61% 2019 2020 2021 2022 9/30/2023 Tangible Equity to Tangible Assets Tangible Equity less OCI to Tangible Assets Total Risk Based Capital Tier 1 Leverage Ratio 10.69% 17.79% 17.60% 10.12% 9.84% 9.77% 14.72% 14.06% 13.82% 7.85% 2019 2020 2021 2022 9/30/2023* 2019 2020 2021 2022 *9/30/2023 * Estimate 18

Appendix – Non GAAP Reconciliations Acquisition related provision - after tax - - 3,846 - 6,077 Law suit settlement income - after tax 399 - - ( 6,616) - Law suit settlement contingent legal expense - after tax - - - 1,639 620 Charitable donation - after tax - - - 4,740 - FHLB prepayment penalties - after tax - 666 1,682 - - Net loss (gain) on asset/security sales - after tax (20) 404 (598) 344 527 Gain on sale of credit card portfolio - after tax - - (189) - - Core net income $ 36,326 $ 45,531 $ 62,316 $ 63,994 $ 46,617 Reported EPS $ 1.28 $ 1.47 $ 1.77 $ 1.79 $ 0 .94 Core diluted EPS $ 1.29 $ 1.60 $ 2.13 $ 1.89 $ 1 .24 Reported return on average assets (annualized) 1.50% 1.46% 1.52% 1.46% 0.93% Core return on average assets (annualized) 1.51% 1.59% 1.83% 1.54% 1.23% Net interest income, reported $ 82,378 $ 96,191 $ 107,990 $ 124,166 $ 104,956 Net interest income, tax equated $ 84,523 $ 98,582 $ 110,835 $ 127,530 $ 107,095 Noninterest income 28,042 36,161 38,193 44,202 2 9,705 Legal settlement income - - - ( 8,375) - Net loss (gain) on asset/security sales (25) 511 ( 757) 435 667 Gain on sale of credit card portfolio - - ( 239) - - Adjusted noninterest income 28,017 36,672 37,197 36,262 30,372 Net interest income and noninterest income adjusted 112,540 135,254 148,032 163,792 1 37,467 Noninterest expense less intangible amortization 63,589 70,001 77,817 92,438 8 1,968 Charitable donation - - - 6,000 - Contingent legal settlement expense - - - 2,075 785 Acquisition related costs 187 3,223 7,109 4,070 5,022 FHLB prepayment penalties - - 2,129 - - Adjusted noninterest expense 63,402 66,778 68,579 80,293 7 6,161 Reported efficiency ratio (tax equivalent basis) 56.38% 52.55% 51.13% 53.68% 59.70% Efficiency ratio excluding certain items 56.34% 49.37% 46.33% 49.02% 55.40% 19

Appendix – Non GAAP Reconciliations 2019 2020 2021 2022 YTD '23 Total assets $ 2,449,158 $ 3,071,148 $ 4,142,749 $ 4,082,200 $ 4 ,971,163 Less goodw ill and other intangibles 42,645 49,617 102,606 101,666 191,326 Tangible Assets $ 2,406,513 $ 3,021,531 $ 4,040,143 $ 3,980,534 $ 4,779,837 Stockholders' Equity $ 299,309 $ 350,097 $ 472,432 $ 292,295 $ 315,982 Less goodw ill and other intangibles 42,645 49,617 102,606 101,666 1 91,326 Tangible common equity 256,664 300,480 369,826 190,629 1 24,656 Accumulated othe comprehensive income (AOCI) 9,826 22,032 9,295 (210,490) (252,213) Tangible common equity less AOCI $ 246,838 $ 278,448 $ 360,531 $ 401,119 $ 3 76,869 Equity to assets 12.22% 11.40% 11.40% 7.16% 6.36% Tangible equity to tangible assets 10.67% 9.94% 9.15% 4.79% 2.61% Tangible equity less AOCI to tangible assets 10.26% 9.22% 8.92% 10.08% 7.88% 20

Document and Entity Information	Oct. 25, 2023
Cover [Abstract]
Entity Registrant Name	FARMERS NATIONAL BANC CORP /OH/
Amendment Flag	false
Entity Central Index Key	0000709337
Document Type	8-K
Document Period End Date	Oct. 25, 2023
Entity Incorporation State Country Code	OH
Entity File Number	001-35296
Entity Tax Identification Number	34-1371693
Entity Address, Address Line One	20 South Broad Street
Entity Address, Address Line Two	P.O. Box 555
Entity Address, City or Town	Canfield
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44406-0555
City Area Code	(330)
Local Phone Number	533-3341
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common Stock, No Par Value
Trading Symbol	FMNB
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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