Farmers National Banc Corp. said second-quarter 2026 net income rose to $23.0 million, or $0.39 per diluted share, from $13.9 million, or $0.37 per share, a year earlier. Excluding $1.7 million of acquisition and core conversion costs, earnings were $24.4 million, or $0.41 per share.
The biggest swing in the quarter came from lending and credit quality. Commercial loan fundings reached about $175.0 million, up 181% from the first quarter. Non-performing loans fell to $44.6 million at June 30 from $59.9 million at March 31, a drop of $15.2 million, or 25.4%, and non-performing loans to total loans improved to 0.93% from 1.25% at the end of March.
Net interest income climbed to $56.0 million from $34.9 million in the second quarter of 2025, while net interest margin widened to 3.44% from 2.91% a year earlier and from 3.12% in the first quarter of 2026. Average interest-earning assets rose to $6.63 billion from $4.89 billion a year earlier. The yield on interest-earning assets increased to 5.25% from 4.77%, while the cost of interest-bearing liabilities edged down to 2.44% from 2.49%.
Noninterest income increased to $14.4 million from $12.1 million a year earlier. Service charge income rose to $2.4 million from $1.7 million, trust fees increased to $3.1 million from $2.6 million, investment commissions climbed to $1.0 million from $721,000, and debit card income advanced to $2.6 million from $2.0 million. Bank owned life insurance income increased to $1.4 million from $832,000.
Noninterest expense jumped to $40.9 million from $27.2 million, led by salaries and employee benefits of $21.3 million, up from $14.7 million, occupancy and equipment costs of $5.9 million, up from $4.1 million, and core processing expense of $2.3 million, up from $1.4 million. Professional fees rose to $1.4 million from $1.0 million, and FDIC insurance and state and local taxes increased to $1.9 million from $1.3 million.
On the balance sheet, total assets were $7.14 billion at June 30, down from $7.18 billion at March 31, but up from $5.25 billion at year-end 2025. Total loans, net of allowance, slipped to $4.72 billion from $4.75 billion in March. Total deposits declined to $5.83 billion from $5.92 billion, while stockholders’ equity rose to $784.0 million from $766.9 million.
The company’s loan-to-deposit ratio was 81.9% at quarter-end. Total wealth management assets under care were $5.1 billion. As a result of these announcements, the company's shares have moved 2.81% on the market, and are now trading at a price of $14.99. Check out the company's full 8-K submission here.
