Farmers National Q3 EPS $0.25 GAAP, $0.47 Adjusted; $10.3M Securities Loss
FMNB sits 28% above its 52-week low of $12.12.
Summary
Farmers National earned $0.25 per diluted share in Q3 2026, or $0.47 adjusted for a $10.3 million securities restructuring loss and $6.1 million of acquisition and conversion costs. Net interest margin improved to 3.54%, while non-performing loans ticked up to 0.99% of total loans.
Key Events · Earnings and Guidance · FMNB
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Q3 EPS $0.25 GAAP, $0.47 Adjusted
Net income was $14.5 million, or $0.25 per diluted share, versus $12.5 million, or $0.33, a year earlier. Excluding $6.1 million of acquisition and core conversion costs, a $10.3 million securities loss and $600,000 severance, adjusted net income was $28.0 million, or $0.47 per share.
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$90.5M Securities Restructuring
The company sold $90.5 million of securities at a $10.3 million loss, lifting the yield on those holdings from 1.61% to approximately 5.25% with a 3.1-year payback. The portfolio still lost $91.3 million of value in the quarter as Treasury rates rose.
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Margin Improves to 3.54%
Net interest margin rose to 3.54% from 3.44% in Q2 2026 and 3.00% in Q3 2025. Management guided Q4 2026 NIM to roughly 3.43%-3.46%.
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Credit Metrics Deteriorate Slightly
Non-performing loans rose to $47.9 million, or 0.99% of total loans, from $44.6 million, or 0.93%, at June 30, 2026. The provision for credit losses doubled to $2.8 million from $1.4 million a year earlier.
Analysis · FMNB · Finance
Headline net income fell to $14.5 million, or $0.25 per diluted share, from $12.5 million, or $0.33, a year ago, but the drop is accounting-driven: a $10.3 million loss on a $90.5 million securities restructuring plus $6.1 million of Middlefield acquisition and core conversion costs. Strip those out and adjusted net income was $28.0 million, or $0.47 per share, well above the $0.42 adjusted figure a year ago. The restructuring lifts the yield on the sold securities from 1.61% to roughly 5.25% and pays back in about 3.1 years, and management guided Q4 net interest margin to 3.43%-3.46% after the 3.54% print this quarter. Credit is the offsetting negative: non-performing loans rose to $47.9 million, or 0.99% of total loans, from 0.93% at June 30, and the provision doubled to $2.8 million. The company also plans to retire $72.0 million of subordinated notes on December 15, 2026 before their coupon resets from 3.125% to about 6.20%, a real interest-cost saving.
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At the time of this filing, FMNB was trading at $15.52 on NASDAQ in the Finance sector, with a market capitalization of approximately $919.5M. The 52-week trading range was $12.12 to $16.46. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.