Farmers National Banc Corp. (NASDAQ: FMNB) reported net income of $14.5 million, or $0.25 per diluted share, for the third quarter of 2026. This figure represents a decrease from the $12.5 million, or $0.33 per diluted share, reported in the same period of 2025. The company noted that the current quarter’s results included $6.1 million in expenses related to the March 2, 2026, acquisition of Middlefield Banc Corp. and core conversion costs. Additionally, the company recognized a $10.3 million loss on the sale of securities and $600,000 in severance costs.
Excluding these specific items, adjusted net income for the third quarter was $28.0 million, or $0.47 per diluted share. The company achieved a net interest margin of 3.54% for the quarter, an increase from 3.44% in the second quarter of 2026 and 3.00% in the third quarter of 2025. The efficiency ratio was reported at 68.0%.
On the balance sheet, total assets stood at $7.12 billion at September 30, 2026, up from $5.25 billion at December 31, 2025, largely due to the Middlefield acquisition. Total loans increased to $4.80 billion, driven by the acquisition and a 1.6% sequential increase. Total deposits were $5.81 billion at the end of the quarter. The company completed a core system conversion to Jack Henry during the quarter and restructured $90.5 million of securities, incurring the aforementioned loss, to increase the yield on the portfolio.
Regarding credit quality, non-performing loans increased to $47.9 million, or 0.99% of total loans, compared to $26.2 million at the end of 2025. The provision for credit losses was $2.8 million for the quarter, up from $1.4 million in the prior year. The company also announced plans to pay off $72.0 million of fixed-to-floating rate subordinated notes on December 15, 2026, to avoid a rate reset from 3.125% to approximately 6.20%.
