Form 8-K - Current report

Share Name	Share Symbol	Market	Type
Farmers National Banc Corporation	NASDAQ:FMNB	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.19	1.22%	15.74	14.58	16.38	15.81	15.50	15.51	83,150	21:00:11

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): July 26, 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 July 26, 2023, Farmers National Banc Corp. (the “Company”) announced earnings for the quarter ended June 30, 2023. A copy of the press release and certain financial information for that period is attached as Exhibit 99.1 hereto and incorporated by reference herein.

Also on July 26, 2023, the Company first provided investors with a supplemental presentation regarding second 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 Exhibits 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 July 26, 2023, the Company first provided investors with a supplemental presentation regarding second 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 July 26, 2023

99.2		Investor Presentation, dated July 26, 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: July 26, 2023

Exhibit 99.1

July 26, 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. REPORTS

RESULTS FOR SECOND QUARTER OF 2023

•

Earnings per diluted share of $0.40 ($0.41 excluding certain items, non-GAAP) for the second quarter of 2023

•

162 consecutive quarters of profitability

•

Additional FHLB borrowing capacity of $707.8 million as of June 30, 2023

•

Uninsured deposits (excluding collateralized deposits) are approximately 15.0% of customer deposit base

•

Available for sale securities not pledged totaled $290.0 million at June 30, 2023

•

Efficiency ratio of 56.3%, or 55.3% excluding certain items, non-GAAP, for the second quarter of 2023

•

Return on average assets of 1.18% for the second quarter of 2023

•

ROAE and ROATE (non-GAAP) of 16.1% and 33.6%, respectively, for the second quarter of 2023

CANFIELD, Ohio (July 26, 2023) – Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) reported today net income of $15.0 million, or $0.40 per diluted share, for the three months ended June 30, 2023, compared to $16.0 million, or $0.47 per diluted share, for the three months ended June 30, 2022. Net income for the second quarter of 2023 included pretax items of $442,000 for acquisition related costs and combined net gains of $6,000 on the sale of securities and the sale of other assets. Excluding these items (non-GAAP), net income for the second quarter of 2023 would have been $15.3 million, or $0.41 per diluted share.

Kevin J. Helmick, President and CEO, stated “As we navigate an extremely fluid banking landscape, we will continue to focus on prudent expense management, growing revenue, and maintaining a strong balance sheet, while supporting our communities and investing in our growth strategies. We believe this approach will drive long-term shareholder value as we emerge from this challenging period a stronger and more profitable company,” concluded Mr. Helmick.

Balance Sheet

The Company’s total assets were $5.07 billion at June 30, 2023 compared to $5.11 billion at March 31, 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. Gross loans (excluding loans held for sale) have increased by $750.5 million since December 31, 2022 and $2.9 million since March 31, 2023. Emclaire was responsible for $740.7 million of the increase in loans since December 31, 2022.

Securities available for sale were $1.32 billion at June 30, 2023, compared to $1.36 billion at March 31, 2023, and $1.27 billion at December 31, 2022. The increase since December is due to the addition of $127.0 million in available for sale securities from Emclaire and a reduction in the gross amount of unrealized losses which totaled $266.5 million at December 31, 2022 compared to a gross unrealized loss of $245.0 million at June 30, 2023. Offsetting these increases, the Company also had sales and runoff from the portfolio in the first six months of 2023. While bond market volatility is expected to continue throughout 2023, the Company will continue to look to opportunistically shrink the size of the securities portfolio to increase liquidity and optimize profitability.

Total customer deposits (excluding brokered time deposits) were $4.25 billion at June 30, 2023, compared to $4.31 billion at March 31, 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 was $367.0 million at June 30, 2023 compared to $374.6 million at March 31, 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 along with a decrease in the loss from accumulated other comprehensive income offset by increased treasury stock activity. The Company repurchased 850,799 shares of its common stock during the first quarter of 2023 but did not repurchase any shares during the second quarter. The accumulated other comprehensive loss has declined $17.0 million between December 31, 2022 and June 30, 2023 as market rates declined during the first half of 2023 and pricing on available for sale securities improved.

Liquidity

The Company continues to monitor its deposit base and balance sheet composition as well as its access to other sources of liquidity. At June 30, 2023, the Company’s loan to deposit ratio was 73.9% and the Company’s average deposit balance per account was $27,539. In addition, the Company’s ratio of uninsured deposits (excluding collateralized deposits) is approximately 15.0% which remains significantly lower than the banking institutions that failed in the first quarter of 2023.

The Company has access to an additional $707.8 million of FHLB borrowing capacity at June 30, 2023 along with $290.0 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 provision for credit losses and unfunded commitments was $25,000 for the second quarter of 2023 compared to $616,000 for the second quarter of 2022. Annualized net charge-offs as a percentage of average loans was 0.10% for the three months ended June 30, 2023, compared to 0.01% for the same period in 2022. The allowance for credit losses to total loans was 1.11% at June 30, 2023 compared to 1.14% at March 31, 2023, and 1.12% at December 31, 2022.

Non-performing loans (NPLs) were $18.0 million at June 30, 2023 compared to $18.0 million at March 31, 2023, and $14.8 million at December 31, 2022. The increase since December was primarily due to the addition of Emclaire. The NPL to loans ratio was 0.57% at June 30, 2023 compared to 0.57% at March 31, 2023 and 0.62% at December 31, 2022. Non-performing assets to assets was 0.36% at June 30, 2023, compared to 0.35% at March 31, 2023, and 0.36% at December 31, 2022. Early stage delinquencies, defined as 30-89 days delinquent, 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.

Net Interest Income

The Company recorded net interest income of $34.6 million in the second quarter of 2023 compared to $31.7 million for the second quarter of 2022. The Company had more earning assets in 2023 due to the acquisition of Emclaire but this was partially offset by a decline of 33 basis point in the net interest margin. The net interest margin was 2.92% for the second quarter of 2023 compared to 3.07% in the first quarter of 2023 and 3.25% for the second quarter of 2022. The decline in net interest margin between the second quarter of 2023 and the second 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. Excluding the impact of acquisition marks and related accretion and PPP interest and fees, the net interest margin (non-GAAP) for the second quarter of 2023 was 2.68% compared to 2.86% for the first quarter of 2023 and 3.16% for the second quarter of 2022.

Noninterest Income

Noninterest income totaled $9.4 million for the three months ended June 30, 2023, compared to $9.5 million for the three months ended June 30, 2022. Service charges on deposit accounts have increased by $362,000 in the second quarter of 2023 compared to the second quarter of 2022. The increase is 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 second quarter of 2023 compared to the second quarter of 2022 due to the Emclaire acquisition. Insurance agency commissions are up $246,000 in the second quarter of 2023 compared to the second quarter of 2022 as growth in the insurance business and increased annuity sales have bolstered income. Investment commissions are down slightly for the quarter ended June 30, 2023 compared to the quarter ended June 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. Other noninterest income has declined by $1.3 million for the quarter ending June 30, 2023 compared to the second quarter of 2022. This decrease is primarily due to a decline in the income associated with the Company’s investments in SBA/SBIC funds. The performance of these funds in 2022 was much better than had been experienced historically and 2023 has returned to more normal levels of profitability.

Noninterest Expense

Noninterest expense was $26.4 million for the three months ended June 30, 2023, compared to $21.5 million for the three months ended June 30, 2022. The increase in expense is primarily due to the acquisition of Emclaire. Salaries and employee benefits increased $2.6 million to $13.6 million in the second 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 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 increased due to the acquisition and due to some acceleration of the core deposit intangible recorded in the Cortland Bancorp acquisition in 2021. The Company recorded an additional $359,000 of intangible amortization in the second quarter of 2023 related to the Cortland acquisition. Merger related costs were $442,000 for the second quarter of 2023 compared to $674,000 in the second quarter of 2022.

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 65 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 June 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 Six Months Ended
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,			Percent
	2023			2023			2022			2022			2022			2023			2022			Change
Total interest income	$	52,804		$	51,233		$	38,111		$	36,410		$	34,286		$	104,037		$	67,565			54.0	%
Total interest expense		18,226			14,623			8,679			4,629			2,575			32,849			4,612			612.3	%

Net interest income		34,578			36,610			29,432			31,781			31,711			71,188			62,953			13.1	%
Provision (credit) for credit losses		25			8,599			416			448			616			8,624			258			3242.6	%
Noninterest income		9,449			10,425			8,200			8,827			9,477			19,874			27,175			-26.9	%
Acquisition related costs		442			4,313			584			872			674			4,755			2,614			81.9	%
Other expense		25,944			26,409			20,511			20,527			20,787			52,353			49,303			6.2	%

Income before income taxes		17,616			7,714			16,121			18,761			19,111			25,330			37,953			-33.3	%
Income taxes		2,650			639			2,765			3,315			3,160			3,289			6,158			-46.6	%

Net income	$	14,966		$	7,075		$	13,356		$	15,446		$	15,951		$	22,041		$	31,795			-30.7	%

Average diluted shares outstanding		37,320			37,933			33,962			33,932			33,923			37,624			33,927
Basic earnings per share		0.40			0.19			0.39			0.46			0.47			0.59			0.94
Diluted earnings per share		0.40			0.19			0.39			0.46			0.47			0.59			0.94
Cash dividends per share		0.17			0.17			0.17			0.16			0.16			0.34			0.32
Performance Ratios
Net Interest Margin (Annualized)		2.92	%		3.07	%		2.99	%		3.21	%		3.25	%		3.00	%		3.25	%
Efficiency Ratio (Tax equivalent basis)		56.28	%		62.53	%		52.59	%		50.55	%		49.95	%		59.50	%		55.56	%
Return on Average Assets (Annualized)		1.18	%		0.56	%		1.31	%		1.48	%		1.54	%		0.87	%		1.53	%
Return on Average Equity (Annualized)		16.12	%		7.71	%		20.16	%		18.71	%		17.97	%		11.94	%		15.67	%
Dividends to Net Income		42.54	%		90.50	%		43.10	%		35.06	%		33.95	%		58.09	%		34.07	%
Other Performance Ratios (Non-GAAP)
Return on Average Tangible Assets		1.23	%		0.58	%		1.34	%		1.52	%		1.57	%		0.90	%		1.56	%
Return on Average Tangible Equity		33.55	%		16.31	%		32.81	%		27.06	%		25.23	%		25.05	%		20.96	%

Consolidated Statements of Financial Condition


	June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,
	2023		2023		2022		2022		2022
Assets
Cash and cash equivalents	$	116,063	$	128,001	$	75,551	$	79,981	$	65,458
Securities available for sale		1,316,878		1,355,449		1,268,025		1,295,133		1,361,682
Other investments		44,975		39,670		33,444		34,399		34,451

Loans held for sale		2,197		1,703		858		2,142		2,714
Loans		3,155,200		3,152,339		2,404,750		2,399,981		2,374,485
Less allowance for credit losses		34,957		36,011		26,978		27,282		27,454

Net Loans		3,120,243		3,116,328		2,377,772		2,372,699		2,347,031

Other assets		473,098		468,735		326,550		335,668		303,028

Total Assets	$	5,073,454	$	5,109,886	$	4,082,200	$	4,120,022	$	4,114,364

Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing	$	1,084,232	$	1,106,870	$	896,957	$	934,638	$	983,713
Interest-bearing		3,165,381		3,207,121		2,526,760		2,590,054		2,586,829
Brokered time deposits		21,135		82,169		138,051		42,459		54,996

Total deposits		4,270,748		4,396,160		3,561,768		3,567,151		3,625,538
Other interest-bearing liabilities		388,437		292,324		183,211		243,098		137,985
Other liabilities		47,278		46,760		44,926		44,154		29,392

Total liabilities		4,706,463		4,735,244		3,789,905		3,854,403		3,792,915
Stockholders’ Equity		366,991		374,642		292,295		265,619		321,449

Total Liabilities and Stockholders’ Equity	$	5,073,454	$	5,109,886	$	4,082,200	$	4,120,022	$	4,114,364


Period-end shares outstanding		37,457			37,439			34,055			34,060			34,032
Book value per share	$	9.80		$	10.01		$	8.58		$	7.80		$	9.45
Tangible book value per share (Non-GAAP)*		4.67			4.84			5.60			4.79			6.46

* 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)		10.39	%		10.04	%		13.71	%		13.36	%		13.30	%
Total Risk Based Capital Ratio (a)		13.94	%		13.60	%		17.79	%		17.44	%		17.46	%
Tier 1 Risk Based Capital Ratio (a)		10.89	%		10.54	%		14.32	%		13.97	%		13.92	%
Tier 1 Leverage Ratio (a)		7.68	%		7.43	%		9.84	%		10.24	%		9.56	%
Equity to Asset Ratio		7.23	%		7.33	%		7.16	%		6.45	%		7.81	%
Tangible Common Equity Ratio (b)		3.58	%		3.69	%		4.79	%		4.06	%		5.47	%
Net Loans to Assets		61.50	%		60.99	%		58.25	%		57.59	%		57.04	%
Loans to Deposits		73.88	%		71.71	%		67.52	%		67.28	%		65.49	%
Asset Quality
Non-performing loans	$	17,956		$	17,959		$	14,803		$	12,976		$	14,107
Non-performing assets		18,167			18,053			14,876			13,042			14,107
Loans 30 - 89 days delinquent		12,321			10,219			9,605			6,659			8,716
Charged-off loans		971			469			754			783			177
Recoveries		172			198			184			178			135
Net Charge-offs		799			271			570			605			42
Annualized Net Charge-offs to Average Net Loans		0.10	%		0.03	%		0.10	%		0.10	%		0.01	%
Allowance for Credit Losses to Total Loans		1.11	%		1.14	%		1.12	%		1.14	%		1.16	%
Non-performing Loans to Total Loans		0.57	%		0.57	%		0.62	%		0.54	%		0.59	%
Allowance to Non-performing Loans		194.68	%		200.52	%		182.25	%		210.25	%		194.61	%
Non-performing Assets to Total Assets		0.36	%		0.35	%		0.36	%		0.32	%		0.34	%

(a)	June 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	June 30, 2023		March 31, 2023		Dec. 31, 2022		Sept. 30, 2022		June 30, 2022
End of Period Loan Balances	June 30, 2023		March 31, 2023		Dec. 31, 2022		Sept. 30, 2022		June 30, 2022
Commercial real estate	$	1,284,974	$	1,286,830	$	1,028,050	$	1,028,484	$	1,040,243
Commercial		362,664		361,845		293,643		296,932		285,981
Residential real estate		849,533		853,074		475,791		474,014		464,489
HELOC		138,535		137,319		132,179		132,267		129,392
Consumer		260,326		260,596		221,260		222,706		218,219
Agricultural loans		250,807		244,938		246,937		239,081		230,477

Total, excluding net deferred loan costs	$	3,146,839	$	3,144,602	$	2,397,860	$	2,393,484	$	2,368,801


	For the Three Months Ended
End of Period Customer Deposit Balances	June 30, 2023		March 31, 2023		Dec. 31, 2022		Sept. 30, 2022		June 30, 2022
Noninterest-bearing demand	$	1,084,232	$	1,106,870	$	896,957	$	934,638	$	983,713
Interest-bearing demand		1,383,326		1,473,001		1,224,884		1,399,227		1,416,129
Money market		610,051		599,037		435,369		393,005		372,723
Savings		511,642		535,321		441,978		460,709		455,555
Certificate of deposit		660,362		599,762		424,529		337,113		342,422

Total customer deposits	$	4,249,613	$	4,313,991	$	3,423,717	$	3,524,692	$	3,570,542


	For the Three Months Ended													For the Six Months Ended
Noninterest Income	June 30, 2023		March 31, 2023		Dec. 31, 2022			Sept. 30, 2022			June 30, 2022			June 30, 2023		June 30, 2022
Service charges on deposit accounts	$	1,501	$	1,432	$	1,203		$	1,229		$	1,139		$	2,933	$	2,284
Bank owned life insurance income, including death benefits		584		547		590			406			405			1,131		814
Trust fees		2,248		2,587		2,373			2,370			2,376			4,835		4,895
Insurance agency commissions		1,332		1,456		1,133			1,136			1,086			2,788		2,133
Security gains (losses), including fair value changes for equity securities		13		121		(366	)		(17	)		(60	)		134		(71	)
Retirement plan consulting fees		382		307		337			332			323			689		720
Investment commissions		476		393		508			424			557			869		1,251
Net gains on sale of loans		406		310		242			326			365			716		1,494
Other mortgage banking fee income (loss), net		234		153		98			94			39			387		99
Debit card and EFT fees		1,810		1,789		1,407			1,463			1,528			3,599		2,944
Other noninterest income		463		1,330		675			1,064			1,719			1,793		10,612

Total Noninterest Income	$	9,449	$	10,425	$	8,200		$	8,827		$	9,477		$	19,874	$	27,175


	For the Three Months Ended										For the Six Months Ended
Noninterest Expense	June 30, 2023		March 31, 2023		Dec. 31, 2022		Sept. 30, 2022		June 30, 2022		June 30, 2023		June 30, 2022
Salaries and employee benefits	$	13,625	$	14,645	$	11,385	$	10,724	$	11,073	$	28,270	$	22,904
Occupancy and equipment		3,859		3,869		2,753		3,028		2,918		7,728		5,598
FDIC insurance and state and local taxes		1,494		1,222		1,010		1,017		979		2,716		1,924
Professional fees		1,190		1,114		938		985		1,056		2,304		4,191
Merger related costs		442		4,313		584		872		674		4,755		2,614
Advertising		478		409		472		596		487		887		879
Intangible amortization		1,222		909		702		432		419		2,131		839
Core processing charges		1,144		1,164		742		738		1,123		2,308		1,868
Other noninterest expenses		2,932		3,077		2,509		3,007		2,732		6,009		11,100

Total Noninterest Expense	$	26,386	$	30,722	$	21,095	$	21,399	$	21,461	$	57,108	$	51,917

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
	June 30, 2023							June 30, 2022
	AVERAGE				YIELD/			AVERAGE				YIELD/
	BALANCE		INTEREST (1)		RATE (1)			BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	3,144,461	$	42,422		5.40	%	$	2,337,251	$	25,792		4.41	%
Taxable securities		1,157,284		6,654		2.30			1,100,538		5,223		1.90
Tax-exempt securities (2)		415,003		3,278		3.16			474,034		3,832		3.23
Other investments		41,361		594		5.74			34,030		216		2.54
Federal funds sold and other		72,801		551		3.03			69,532		95		0.55

Total earning assets		4,830,910		53,499		4.43			4,015,385		35,158		3.50
Nonearning assets		225,131							140,334

Total assets	$	5,056,041						$	4,155,719

INTEREST-BEARING LIABILITIES
Time deposits	$	646,782	$	4,525		2.80	%	$	354,692	$	552		0.62	%
Brokered time deposits		59,402		686		4.62			45,767		49		0.43
Savings deposits		1,133,371		2,402		0.85			837,726		141		0.07
Demand deposits - interest bearing		1,428,409		6,878		1.93			1,430,273		909		0.25
Short term borrowings		213,549		2,727		5.11			42,527		97		0.91
Long term borrowings		88,382		1,008		4.56			87,914		827		3.76

Total interest-bearing liabilities	$	3,569,895		18,226		2.04		$	2,798,899		2,575		0.37

NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits - noninterest bearing		1,067,605							972,174
Other liabilities		47,120							29,665
Stockholders’ equity		371,421							354,981

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,056,041						$	4,155,719

Net interest income and interest rate spread			$	35,273		2.39	%			$	32,583		3.13	%

Net interest margin						2.92	%						3.25	%

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

(2)

For 2023, adjustments of $91 thousand and $604 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2022, adjustments of $78 thousand and $794 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.


	Six Months Ended							Six Months Ended
	June 30, 2023							June 30, 2022
	AVERAGE				YIELD/			AVERAGE				YIELD/
	BALANCE		INTEREST (1)		RATE (1)			BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	3,140,500	$	83,365		5.31	%	$	2,326,392	$	51,438		4.42	%
Taxable securities		1,164,400		13,204		2.27			1,054,506		9,810		1.86
Tax-exempt securities (2)		426,743		6,797		3.19			467,947		7,559		3.23
Other investments		38,976		970		4.98			32,584		346		2.12
Federal funds sold and other		77,870		1,161		2.98			93,591		143		0.31

Total earning assets		4,848,489		105,497		4.35			3,975,020		69,296		3.49
Nonearning assets		221,955							192,085

Total assets	$	5,070,444						$	4,167,105

INTEREST-BEARING LIABILITIES
Time deposits	$	618,637	$	7,864		2.54	%	$	366,617	$	1,196		0.65	%
Brokered time deposits		144,747		3,007		4.15			30,745		64		0.42
Savings deposits		1,143,539		4,356		0.76			840,533		308		0.07
Demand deposits - interest bearing		1,423,211		11,971		1.68			1,420,957		1,327		0.19
Short term borrowings		147,436		3,648		4.95			22,486		98		0.87
Long term borrowings		88,326		2,003		4.54			87,856		1,619		3.69

Total interest-bearing liabilities	$	3,565,896		32,849		1.84		$	2,769,194		4,612		0.33
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits - noninterest bearing	$	1,087,403						$	964,380
Other liabilities		47,996							27,842
Stockholders’ equity		369,149							405,689

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	5,070,444						$	4,167,105

Net interest income and interest rate spread			$	72,648		2.51	%			$	64,684		3.16	%

Net interest margin						3.00	%						3.25	%

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

(2)

For 2023, adjustments of $178 thousand and $1.3 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2022, adjustments of $162 thousand and $1.6 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 Six Months Ended
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,
	2023			2023			2022			2022			2022			2023			2022
Total Assets	$	5,073,454		$	5,109,886		$	4,082,200		$	4,120,022		$	4,114,364		$	5,073,454		$	4,114,364
Less Goodwill and other intangibles		192,052			193,273			101,666			102,368			101,767			192,052			101,767

Tangible Assets	$	4,881,402		$	4,916,613		$	3,980,534		$	4,017,654		$	4,012,597		$	4,881,402		$	4,012,597

Average Assets		5,070,444			5,085,009			4,080,497			4,164,855			4,155,719			5,070,444			4,167,105
Less average Goodwill and other intangibles		192,972			193,368			102,126			101,981			102,042			193,169			102,251

Average Tangible Assets	$	4,877,472		$	4,891,641		$	3,978,371		$	4,062,874		$	4,053,677		$	4,877,275		$	4,064,854

Reconciliation of Common Stockholders’ Equity to Tangible Common Equity
	For the Three Months Ended															For the Six Months Ended
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,
	2023			2023			2022			2022			2022			2023			2022
Stockholders’ Equity	$	366,991		$	374,642		$	292,295		$	265,619		$	321,449		$	366,991		$	321,449
Less Goodwill and other intangibles		192,052			193,273			101,666			102,368			101,767			192,052			101,767

Tangible Common Equity	$	174,939		$	181,369		$	190,629		$	163,251		$	219,682		$	174,939		$	219,682

Average Stockholders’ Equity		371,421			366,851			264,939			330,300			354,981			369,149			405,689
Less average Goodwill and other intangibles		192,972			193,368			102,126			101,981			102,042			193,169			102,251

Average Tangible Common Equity	$	178,449		$	173,483		$	162,813		$	228,319		$	252,939		$	175,980		$	303,438

Reconciliation of Net Income, Less Merger and Certain Items
	For the Three Months Ended															For the Six Months Ended
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,
	2023			2023			2022			2022			2022			2023			2022
Net income	$	14,966		$	7,075		$	13,356		$	15,446		$	15,951		$	22,041		$	31,795
Acquisition related costs - after tax		354			3,449			475			711			564			3,803			2,104
Acquisition related provision - after tax		0			6,077			0			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
Charitable donation - after tax		0			0			0			0			0			0			4,740
Net loss (gain) on asset/security sales - after tax		(5	)		(72	)		268			4			(25	)		(77	)		72

Net income - Adjusted	$	15,315		$	16,529		$	14,099		$	16,161		$	16,490		$	31,844		$	33,734

Diluted EPS excluding merger and one-time items	$	0.41		$	0.44		$	0.42		$	0.48		$	0.49		$	0.85		$	0.99

Return on Average Assets excluding merger and certain items (Annualized)		1.21	%		1.30	%		1.36	%		1.55	%		1.59	%		1.26	%		1.62	%
Return on Average Equity excluding merger and certain items (Annualized)		16.49	%		18.02	%		21.29	%		19.57	%		18.58	%		17.25	%		16.63	%
Return on Average Tangible Equity excluding acquisition costs and certain items (Annualized)		34.33	%		38.11	%		34.64	%		28.31	%		26.08	%		36.19	%		22.23	%


Efficiency ratio excluding certain items
	For the Three Months Ended															For the Six Months Ended
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,
	2023			2023			2022			2022			2022			2023			2022
Net interest income, tax equated	$	35,273		$	37,374		$	30,212		$	32,636		$	32,583		$	72,648		$	64,684
Noninterest income		9,449			10,425			8,200			8,827			9,477			19,874			27,175
Legal settlement income		0			0			0			0			0			0			(8,375	)
Net loss (gain) on asset/security sales		(6	)		(91	)		338			6			(32	)		(97	)		91
Net interest income and noninterest income adjusted		44,716			47,708			38,750			41,469			42,028			92,425			83,575
Noninterest expense less intangible amortization		25,163			29,813			20,393			20,967			21,042			54,976			51,078
Charitable donation		0			0			0			0			0			0			6,000
Contingent legal settlement expense		0			0			0			0			0			0			2,075
Acquisition related costs		442			4,313			584			872			674			4,755			2,614

Noninterest income adjusted		24,721			25,500			19,809			20,095			20,368			50,221			40,389

Efficiency ratio excluding one-time items		55.28	%		53.45	%		51.12	%		48.46	%		48.46	%		54.34	%		48.33	%


Net interest margin excluding acquisition marks and PPP interest and fees
	For the Three Months Ended															For the Six Months Ended
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,
	2023			2023			2022			2022			2022			2023			2022
Net interest income, tax equated	$	35,273		$	37,374		$	30,212		$	32,636		$	32,583		$	72,648		$	64,684
Acquisition marks		2,884			2,628			174			215			349			5,512			1,338
PPP interest and fees		3			0			10			62			634			3			1,320

Adjusted and annualized net interest income		129,544			138,984			120,112			129,436			126,400			134,266			124,052

Average earning assets		4,830,910			4,866,263			4,047,343			4,065,085			4,015,385			4,848,489			3,975,020

Less PPP average balances		277			310			485			1,586			16,019			271			22,972

Adjusted average earning assets		4,830,633			4,865,953			4,046,858			4,063,499			3,999,366			4,848,218			3,952,048

Net interest margin excluding marks and PPP interest and fees		2.68	%		2.86	%		2.97	%		3.19	%		3.16	%		2.77	%		3.14	%

Exhibit 99.2 Q2 2023 Investor Presentation NASDAQ: FMNB

Disclosure Statement Forward-LookingStatements 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. • $5.1 billion in banking assets • $3.2 billion in wealth management assets under care • $0.68 (5.1%) annualized dividend yield* • Named a Best Employer in Ohio the past 2 years** • Founded in 1887 • 162 consecutive quarters of profitability • Strong and diverse franchise currently operating • 65 banking locations throughout Ohio and Pennsylvania • Growth plan focused on combining big bank capabilities with local bank service *Stock data as of July 20, 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 Company (2015) into compelling banking markets Private Client (2009) Services $2,000 (2012) Farmers Monitor National Bancorp Insurance (2017) Manageable initial tangible book value (2008) dilution st $1,000 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 June 30, 2020

Financial Performance NASDAQ: FMNB

Balance Sheet Strengths (1) 6/30/23 12/31/22 Improved Customer Deposits** $4.2 billion* $3.4 billion ✓ Cash Balances $116.1 million $75.6 million ✓ (1) Loan-to-Deposit Ratio 73.9% 67.5% ✓ AOCI ($193.5 million) ($210.5 million) ✓ Nonperforming Loans to Total Loans 0.57% 0.62% ✓ Allowance to Nonperforming Loans 194.7% 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 6/30/23 Core EPS Core Return on Assets 1.83% $2.50 $2.13 1.55% 1.54% 1.51% $1.89 $2.00 1.26% $1.57 $1.50 $1.29 $0.85 $1.00 $0.50 $0.00 2019 2020 2021 2022 6/30/2023 2019 2020 2021 2022 YTD 6/30/23 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, 15% • Diverse loan mix • Farmers’ practice is to lend primarily within its market area • Only 3.6% of loan portfolio is participations purchased Fixed, 51% Adjustable, 34% Total Loans (in millions) Net Loans to Assets $3,500.00 73.4% 66.9% $3,000.00 61.5% 58.3% $2,500.00 55.6% $2,000.00 $1,500.00 $1,000.00 $500.00 $0.00 2019 2020 2021 2022 6/30/2023 2019 2020 2021 2022 6/30/2023 CRE C&I Agricultural Residential Mortgage Consumer 9

CRE Overview CRE Breakdown Construction, • Well diversified portfolio 9% Owner Multifamily, Occupied, 28% • Strong credit culture 9% • Independent loan review Non-owner Occupied, 54% CRE Categories Loans by Industry Type % of Total 8% Category Balance % of CRE Loans 12% Retail $342,872 27% 11% Office $157,725 12% 5% Commercial Real Estate 41% Medical $151,426 12% 5% Residential Real Estate Warehouse/Industrial $151,068 12% 5% Consumer 13% $107,613 8% Multifamily 3% Commercial & Industrial $96,268 7% Special Purpose 3% Agricultural $69,047 5% Hotel 2% Restaurant $55,462 4% 2% Multifamily - Construction $35,709 3% 1% 27% Remainder $116,638 9% 4% Total $ 1,283,828 10

Asset Quality Trends Overview Annualized Net Charge-Offs to Avg. Net Loans • Early-stage delinquencies were $12.3 million, or 0.39% of total 0.11% loans at June 30, 2023, compared to $9.6 million, or 0.40% of total 0.09% loans at December 31, 2022 0.07% 0.07% • Conservative underwriting practices • Sound reserve levels under CECL 0.04% 2019 2020 2021 2022 6/30/2023 NPLs/Total Loans & Leases ($ in thousands) ACL to Total Loans 1.26% $20,000 0.80% 1.12% 1.11% 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 6/30/2023 2019 2020 2021 2022 6/30/2023 NPLs NPLs / Total Loans 11

Securities Portfolio Overview CMOs, 5.8% Mortgage Corporates, 1.6% • All of the Investment securities portfolio is U.S. Government, Backed categorized as available for sale 10.3% Securities • All MBS and CMOs are U.S. government agency 41.1% issued • All municipal securities are investment grade, many with credit enhancements • The duration of the available for sale securities portfolio is 7.2 year at June 30, 2023 • Assuming no changes to interest rates, the AOCI is expected to have accretion of approximately $20.2 million, or 10% over the next four quarters • Over the next three years, the AOCI is expected to have accretion of approximately $57.8 million, or 29.9% assuming no changes to interest rates Municipals, 41.2% 12

Deposit Trends Overview Account Growth • We are proud to say our bank is built on core deposits June May April 2023 2023 2023 • Total deposits: $4.27 billion Total CDs 14,148 14,298 14,067 • Noninterest-bearing stood at 25.4% of total deposits • Uninsured deposits are approximately 15.0% of customer deposit base Total Savings 35,452 35,555 35,710 Total Demand 103,875 103,901 103,917 Total Accounts 153,475 153,754 153,694 Customer Deposit Composition (in millions) Customer Deposit Composition (in millions) $4,500 $4,000 $4,000 Time Deposits $3,165 $3,000 $3,500 $2,587 $3,000 Savings $2,000 $2,500 $2,000 Money Market $984 $1,084 $1,000 $1,500 Interest-Bearing Demand $1,000 $- $500 30-Jun-22 30-Jun-23 Noninterest-Bearing $0 2019 2020 2021 2022 6/30/2023 Noninterest-bearing Interest-bearing 13

Liquidity Farmers National Banc Corp. has the following sources of liquidity at the holding company as of June 30, 2023: • $53.5 million of cash and equivalents • $6.5 million in unsecured lines of credit with a zero balance Farmers National Bank has the following sources of liquidity as of June 30, 2023: • $105.3 million of cash and equivalents • $707.8 million of additional borrowing capacity at the FHLB • $35.0 million of unsecured lines of credit with a zero balance • $52.7 million of investment securities that could be sold at no loss or a gain • $290.0 million of available for sale securities that are not pledged • Brokered CDs • Securities roll-off of approximately $69.2 million in next 12 months Available liquidity is approximately 186% of uninsured deposits. 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 6/30/23 Net Interest Margin (annualized) Loans to Deposits 100.00% 3.82% 3.70% 3.45% 80.00% 3.18% 3.00% 60.00% 40.00% 20.00% 0.00% 2019 2020 2021 2022 YTD 6/30/23 2019 2020 2021 2022 6/30/2023 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 6/30/23 Noninterest Income to Total Revenue* Components of Noninterest Income* (in thousands) $40,000 27.3% 26.1% 25.4% $35,000 22.4% 21.7% $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- 2019 2020 2021 2022 YTD 6/30/23 2019 2020 2021 2022 YTD 6/30/23 Trust & Retirement Fees Mortgage Banking 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 2.05% 2.07% 1.98% who will spearhead process improvement efforts • Track record of prudent expense management 2019 2020 2021 2022 YTD 6/30/23 (2) (1) Noninterest Expense (in thousands) Efficiency Ratio $90,000 56.3% 54.3% $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 6/30/23 2019 2020 2021 2022 YTD 6/30/23 (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% 7.55% 4.79% 3.58% 2019 2020 2021 2022 6/30/2023 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% 13.82% 13.94% 7.68% 2019 2020 2021 2022 6/30/2023 2019 2020 2021 2022 6/30/2023 18

Appendix – Non GAAP Reconciliations 2019 2020 2021 2022 YTD '23 Net income $ 35,760 $ 41,876 $ 51,844 $ 60,597 $ 2 2,041 Acquisition related costs - after tax 187 2,585 5,731 3,290 3 ,803 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 - 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 (77) Gain on sale of credit card portfolio - after tax - - ( 189) - - Core net income $ 36,326 $ 45,531 $ 62,316 $ 63,994 $ 3 1,844 Reported EPS $ 1.28 $ 1.47 $ 1.77 $ 1.79 $ 0 .59 Core diluted EPS $ 1.29 $ 1.60 $ 2.13 $ 1.89 $ 0.85 Reported return on average assets (annualized) 1.50% 1.46% 1.52% 1.46% 0.87% Core return on average assets (annualized) 1.51% 1.59% 1.83% 1.54% 1.26% Net interest income, reported $ 82,378 $ 96,191 $ 107,990 $ 124,166 $ 7 1,188 Net interest income, tax equated $ 84,523 $ 98,582 $ 110,835 $ 127,530 $ 72,648 Noninterest income 28,042 36,161 38,193 44,202 19,874 Legal settlement income - - - (8,375) - Net loss (gain) on asset/security sales (25) 511 ( 757) 435 (97) Gain on sale of credit card portfolio - - ( 239) - - Adjusted noninterest income 28,017 36,672 37,197 36,262 1 9,777 Net interest income and noninterest income adjusted 112,540 135,254 148,032 163,792 9 2,425 Noninterest expense less intangible amortization 63,589 70,001 77,817 92,438 54,976 Charitable donation - - - 6,000 - Contingent legal settlement expense - - - 2,075 - Acquisition related costs 187 3,223 7,109 4,070 4,755 FHLB prepayment penalties - - 2,129 - - Adjusted noninterest expense 63,402 66,778 68,579 80,293 5 0,221 Reported efficiency ratio (tax equivalent basis) 56.38% 52.55% 51.13% 53.68% 59.50% Efficiency ratio excluding certain items 56.34% 49.37% 46.33% 49.02% 54.34% 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 $ 5 ,073,454 Less goodw ill and other intangibles 42,645 49,617 102,606 101,666 1 92,051 Tangible Assets $ 2,406,513 $ 3,021,531 $ 4,040,143 $ 3,980,534 $ 4,881,403 Stockholders' Equity $ 299,309 $ 350,097 $ 472,432 $ 292,295 $ 3 66,991 Less goodw ill and other intangibles 42,645 49,617 102,606 101,666 1 92,051 Tangible common equity 256,664 300,480 369,826 190,629 1 74,940 Accumulated othe comprehensive income (AOCI) 9,826 22,032 9,295 ( 210,490) (193,528) Tangible common equity less AOCI $ 246,838 $ 278,448 $ 360,531 $ 401,119 $ 3 68,468 Equity to assets 12.22% 11.40% 11.40% 7.16% 7.23% Tangible equity to tangible assets 10.67% 9.94% 9.15% 4.79% 3.58% Tangible equity less AOCI to tangible assets 10.26% 9.22% 8.92% 10.08% 7.55% 20

Document and Entity Information	Jul. 26, 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	Jul. 26, 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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FMNB Farmers National Banc Corporation