Farmers National Banc shares surge 7.5% after strong Q2 results

Investing.com -- Farmers National Banc Corp. (NASDAQ:FMNB) shares soared 7.5% after the company reported second quarter earnings that matched analyst expectations, driven by broad-based growth across multiple business lines and improved margins.

The Ohio-based bank reported net income of $13.9 million, or $0.37 per diluted share for the second quarter of 2025, matching analyst estimates. This represents a significant improvement from the $11.8 million, or $0.31 per diluted share, reported in the same quarter last year. Revenue showed strong growth, with net interest income increasing to $34.9 million from $32.1 million in Q2 2024.

The company demonstrated robust loan growth of $52.0 million for the quarter, or 6.4% annualized, with commercial loan balances growing $43.6 million, or 8.8% annualized. Net interest margin improved to 2.91% from 2.71% in the second quarter of 2024, while the efficiency ratio improved to 56.7% from 60.8% in the same period last year.

"Our strong second quarter results reflect the continued success of our approach to community banking and the disciplined execution of our long-term growth strategy," said Kevin J. Helmick, President and CEO. "Higher profitability was driven by year-over-year growth in multiple lines of business, demonstrating the value we deliver to our Ohio and Pennsylvania communities."

Noninterest income increased to $12.1 million from $9.6 million in Q2 2024, with notable growth in trust fees, insurance agency commissions, and retirement plan consulting fees. The company’s provision for credit losses increased to $3.5 million, primarily due to $2.6 million in specific reserves placed on two nonperforming commercial real estate loans.

Total (EPA:TTEF) assets increased to $5.18 billion, up from $5.12 billion at the end of 2024. The company has now achieved 170 consecutive quarters of profitability, highlighting its consistent performance and resilient business model.

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