# EDGAR Filing Document

**Accession Number:** 0000709337
**File Stem:** 0001437749-26-015423
**Filing Date:** 2026-5
**Character Count:** 286746
**Document Hash:** b0a7d46812daafa67f7fed4f09ced78e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-015423.hdr.sgml**: 20260507

**ACCESSION NUMBER**: 0001437749-26-015423

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 115

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260507

**DATE AS OF CHANGE**: 20260507

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FARMERS NATIONAL BANC CORP /OH/
- **CENTRAL INDEX KEY:** 0000709337
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 341371693
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35296
- **FILM NUMBER:** 26951684

**BUSINESS ADDRESS:**
- **STREET 1:** 20 S BROAD STREET
- **STREET 2:** P O BOX 555
- **CITY:** CANFIELD
- **STATE:** OH
- **ZIP:** 44406
- **BUSINESS PHONE:** 3305333341

**MAIL ADDRESS:**
- **STREET 1:** 20 S BROAD STREET
- **STREET 2:** PO BOX 555
- **CITY:** CANFIELD
- **STATE:** OH
- **ZIP:** 44406

?xml version='1.0' encoding='ASCII'? fmnb20260331_10q.htm

[**Table of Contents**](#toc)

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**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**WASHINGTON, D.C. 20549** 

**FORM 10-Q** 

**☒ Quarterly Report Pursuant to Section 13 or 15(d) of the** 

**Securities Exchange Act of 1934** 

**or**

**☐ Transition Report Pursuant to Section 13 or 15(d) of the** 

**Securities Exchange Act of 1934**

**For the Quarterly period ended March 31, 2026**

**Commission file number 001-35296**

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**FARMERS NATIONAL BANC CORP.** 

**(Exact name of registrant as specified in its charter)** 

------

---

| | |
|:---|:---|
| **ohio** | **34-1371693** |
| **(State or other jurisdiction of**<br> **incorporation or organization)** | **(I.R.S. Employer**<br> **Identification No)** |
| **20 South Broad Street Canfield, OH** | **44406** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(330) 533-3341** 

**(Registrant**'**s telephone number, including area code)** 

**Not applicable** 

**(Former name, former address and former fiscal year, if changed since last report)** 

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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: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☒ |
| Non-accelerated filer | ☐ | Small reporting company | ☐ |
| 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

---

| | |
|:---|:---|
| **Class** | **Outstanding at April 30, 2026** |
| Common Stock, No Par Value | 59,215,021 shares |

---

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[**Table of Contents**](#toc)

---

| | | |
|:---|:---|:---|
| | | Page Number |
| **PART I - FINANCIAL INFORMATION**  | **PART I - FINANCIAL INFORMATION**  |  |
| Item 1 | Financial Statements (Unaudited) |  |
|  | Included in Part I of this report: |  |
|  | Farmers National Banc Corp. and Subsidiaries |  |
|  | [<u>Consolidated Condensed Balance Sheets (Unaudited)</u>](#bs) | [2](#bs) |
|  | [<u>Consolidated Condensed Statements of Income (Unaudited)</u>](#inc) | [3](#inc) |
|  | [<u>Consolidated Condensed Statements of Comprehensive Income (Unaudited)</u>](#compinc) | [4](#compinc) |
|  | [<u>Consolidated Condensed Statements of Stockholders</u><u>'</u> <u>Equity (Unaudited)</u>](#se) | [5](#se) |
|  | [<u>Consolidated Condensed Statements of Cash Flows (Unaudited)</u>](#cf) | [6](#cf) |
|  | [<u>Notes to Unaudited Condensed Consolidated Financial Statements</u>](#notes) | [7](#notes) |
| Item 2 | [<u>Management</u><u>'</u><u>s Discussion and Analysis of Financial Condition and Results of Operations</u>](#mda) | [39](#mda) |
| Item 3 | [<u>Quantitative and Qualitative Disclosures About Market Risk</u>](#quant) | [45](#quant) |
| Item 4 | [<u>Controls and Procedures</u>](#controls) | [46](#controls) |
| [<u>PART II - OTHER INFORMATION</u>](#part2)  | [<u>PART II - OTHER INFORMATION</u>](#part2)  | [46](#part2) |
| Item 1 | [<u>Legal Proceedings</u>](#legal) | [46](#legal) |
| Item 1A | [<u>Risk Factors</u>](#risk) | [46](#risk) |
| Item 2 | [<u>Unregistered Sales of Equity Securities and Use of Proceeds</u>](#unregistered) | [47](#unregistered) |
| Item 3 | [<u>Defaults Upon Senior Securities</u>](#defaults) | [47](#defaults) |
| Item 4 | [<u>Mine Safety Disclosures</u>](#mine) | [47](#mine) |
| Item 5 | [<u>Other Information</u>](#otherinfo) | [47](#otherinfo) |
| Item 6 | [<u>Exhibits</u>](#exhibits) | [48](#exhibits) |
| [<u>SIGNATURES</u>](#sigs) | [<u>SIGNATURES</u>](#sigs) | [49](#sigs) |
| **10-Q Certifications** | **10-Q Certifications** |  |
| **Section 906 Certifications** | **Section 906 Certifications** |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1

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[**Table of Contents**](#toc)

**CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)** 

**FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES** 

---

| | | |
|:---|:---|:---|
|  | (In Thousands of Dollars) | (In Thousands of Dollars) |
|  | ***March 31,*** | ***December 31,*** |
|  | ***2026*** | ***2025*** |
| **ASSETS** |  |  |
| Cash and due from banks | $38220 | $20486 |
| Federal funds sold and other | 147863 | 71871 |
| TOTAL CASH AND CASH EQUIVALENTS | 186083 | 92357 |
| Securities available for sale, at fair value (Amortized cost $1,673,903 in 2026 and $1,525,224 in 2025) | 1484198 | 1343457 |
| Other investments | 54858 | 45397 |
| Loans held for sale, at fair value | 1919 | 1516 |
| Loans | 4800064 | 3304713 |
| Less allowance for credit losses | 54684 | 36811 |
| NET LOANS | 4745380 | 3267902 |
| Premises and equipment, net | 78926 | 56861 |
| Goodwill | 271651 | 167450 |
| Other intangibles, net | 36812 | 17851 |
| Bank owned life insurance | 153089 | 119367 |
| Tax credit investments | 32037 | 29256 |
| Other assets | 130523 | 104456 |
| TOTAL ASSETS | $7175476 | $5245870 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Deposits: |  |  |
| Noninterest-bearing | $1334021 | $994122 |
| Interest-bearing | 4587364 | 3348656 |
| TOTAL DEPOSITS | 5921385 | 4342778 |
| Short-term borrowings | 341000 | 281000 |
| Long-term borrowings | 94108 | 86733 |
| Other liabilities | 52093 | 49634 |
| TOTAL LIABILITIES | 6408586 | 4760145 |
| Commitments and contingent liabilities |  |  |
| Stockholders' Equity: |  |  |
| Common Stock, no par value; 75,000,000 and 50,000,000 shares authorized in 2026 and 2025, respectively; 60,772,208 and 39,321,709 shares issued, respectively; 59,191,712 and 37,653,183 shares outstanding, respectively | 642815 | 366625 |
| Retained earnings | 296028 | 286196 |
| Accumulated other comprehensive income (loss) | (150155) | (144075) |
| Treasury stock, at cost; 1,580,496 and 1,668,526 shares in 2026 and 2025, respectively | (21798) | (23021) |
| TOTAL STOCKHOLDERS' EQUITY | 766890 | 485725 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $7175476 | $5245870 |

---

See accompanying notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2

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[**Table of Contents**](#toc)

**CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)** 

**FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES** 

---

| | | |
|:---|:---|:---|
|  | (In Thousands except Per Share Data) | (In Thousands except Per Share Data) |
|  | *For the Three Months Ended* | *For the Three Months Ended* |
|  | ***March 31,*** | ***March 31,*** |
|  | ***2026*** | ***2025*** |
| **INTEREST AND DIVIDEND INCOME** |  |  |
| Loans, including fees | $55109 | $46707 |
| Taxable securities | 7773 | 7096 |
| Tax exempt securities | 2793 | 2451 |
| Dividends | 761 | 541 |
| Federal funds sold and other interest income | 681 | 510 |
| TOTAL INTEREST AND DIVIDEND INCOME | 67117 | 57305 |
| **INTEREST EXPENSE** |  |  |
| Deposits | 20440 | 19717 |
| Short-term borrowings | 3135 | 2417 |
| Long-term borrowings | 974 | 976 |
| TOTAL INTEREST EXPENSE | 24549 | 23110 |
| NET INTEREST INCOME | 42568 | 34195 |
| (Credit) provision for credit losses | (1013) | 22 |
| (Credit) for unfunded commitments | (21) | (226) |
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 43602 | 34399 |
| **NONINTEREST INCOME** |  |  |
| Service charges on deposit accounts | 1966 | 1758 |
| Bank owned life insurance income | 1492 | 810 |
| Trust fees | 3030 | 2641 |
| Insurance agency commissions | 1683 | 1741 |
| Security (losses), including fair value changes for equity securities | (18) | (1313) |
| Retirement plan consulting fees | 886 | 798 |
| Investment commissions | 871 | 529 |
| Net gains on sale of loans | 380 | 326 |
| Other mortgage banking income (loss), net | 477 | 147 |
| Debit card and EFT fees | 2023 | 1866 |
| Other operating income | 898 | 1178 |
| TOTAL NONINTEREST INCOME | 13688 | 10481 |
| **NONINTEREST EXPENSES** |  |  |
| Salaries and employee benefits | 18511 | 16166 |
| Occupancy and equipment | 5126 | 4138 |
| FDIC insurance and state and local taxes | 1603 | 1262 |
| Professional fees | 1112 | 1196 |
| System conversion/Acquisition related costs | 3981 | 0 |
| Advertising | 544 | 456 |
| Intangible amortization | 865 | 735 |
| Core processing charges | 1750 | 1397 |
| Other operating expenses | 3826 | 3176 |
| TOTAL NONINTEREST EXPENSES | 37318 | 28526 |
| INCOME BEFORE INCOME TAXES | 19972 | 16354 |
| **INCOME TAXES** | 3708 | 2776 |
| NET INCOME | $16264 | $13578 |
| **EARNINGS PER SHARE - basic** | $0.36 | $0.36 |
| **EARNINGS PER SHARE - diluted** | $0.36 | $0.36 |

---

See accompanying notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3

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[**Table of Contents**](#toc)

**CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)**

**FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES**

---

| | | |
|:---|:---|:---|
|  | (In Thousands of Dollars) | (In Thousands of Dollars) |
|  | *For the Three Months Ended* | *For the Three Months Ended* |
|  | ***March 31,*** | ***March 31,*** |
|  | ***2026*** | ***2025*** |
| **NET INCOME** | $16264 | $13578 |
| Other comprehensive income (loss): |  |  |
| Net unrealized holding (losses) gains on available for sale securities | (7937) | 19109 |
| Reclassification adjustment for losses realized in income on sales | 0 | 1334 |
| Reclassification adjustment for losses (gains) realized in income on fair value hedge | 241 | (235) |
| Net unrealized holding gains | (7696) | 20208 |
| Income tax effect | 1616 | (4244) |
| Unrealized holding (losses) gains, net of reclassification and tax | (6080) | 15964 |
| Change in funded status of post-retirement plan, net of tax | 0 | 0 |
| Other comprehensive (loss) income, net of tax | (6080) | 15964 |
| TOTAL COMPREHENSIVE INCOME | $10184 | $29542 |

---

See accompanying notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4

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[**Table of Contents**](#toc)

**CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS**' **EQUITY (Unaudited)** 

**FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES**

**(Table Dollar Amounts in Thousands except Per Share Data)** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | *Accumulated* |  |  |
|  |  |  | *Other* |  |  |
|  | *Common* | *Retained* | *Comprehensive* | *Treasury* |  |
|  | *Stock* | *Earnings* | *Income (Loss)* | *Stock* | *Total* |
| Balance December 31, 2025 | $366625 | $286196 | $(144075) | $(23021) | $485725 |
| &nbsp;&nbsp;&nbsp; Net income |  | 16264 |  |  | 16264 |
| &nbsp;&nbsp;&nbsp; Other comprehensive income (loss) |  |  | (6080) |  | (6080) |
| Share Issuance as part of a business combination | 277355 |  |  |  | 277355 |
| &nbsp;&nbsp;&nbsp; Restricted share issuance | (815) |  |  | 815 | 0 |
| &nbsp;&nbsp;&nbsp; Stock based compensation expense | 662 |  |  |  | 662 |
| &nbsp;&nbsp;&nbsp; Vesting of Incentive Plan | (1012) |  |  | 1012 | 0 |
| &nbsp;&nbsp;&nbsp; Share forfeitures for taxes |  |  |  | (604) | (604) |
| &nbsp;&nbsp;&nbsp; Dividends paid at $0.17 per share |  | (6432) |  |  | (6432) |
| Balance March 31, 2026 | $642815 | $296028 | $(150155) | $(21798) | $766890 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  | *Accumulated* |  |  |
|  |  |  | *Other* |  |  |
|  | *Common* | *Retained* | *Comprehensive* | *Treasury* |  |
|  | *Stock* | *Earnings* | *Income (Loss)* | *Stock* | *Total* |
| Balance December 31, 2024 | $366059 | $257173 | $(193265) | $(23939) | $406028 |
| Net income |  | 13578 |  |  | 13578 |
| Other comprehensive income (loss) |  |  | 15964 |  | 15964 |
| Restricted share issuance | (491) |  |  | 491 | 0 |
| Restricted share forfeitures | 0 |  |  | 0 | 0 |
| Stock based compensation expense | 642 |  |  |  | 642 |
| Vesting of Incentive Plan | (565) |  |  | 565 | 0 |
| Share forfeitures for taxes |  |  |  | (683) | (683) |
| Dividends paid at $0.17 per share |  | (6395) |  |  | (6395) |
| Balance March 31, 2025 | $365645 | $264356 | $(177301) | $(23566) | $429134 |

---

See accompanying notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5

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[**Table of Contents**](#toc)

**CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)** 

**FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES** 

---

| | | |
|:---|:---|:---|
|  | (In Thousands of Dollars) | (In Thousands of Dollars) |
|  | *Three Months Ended* | *Three Months Ended* |
|  | ***March 31,*** | ***March 31,*** |
|  | ***2026*** | ***2025*** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net income | $16264 | $13578 |
| Adjustments to reconcile net income to net cash from operating activities: |  |  |
| Provision (credit) for credit losses | (1013) | 22 |
| Credit for unfunded loans | (21) | (226) |
| Depreciation and amortization | 2001 | 1613 |
| Net (accretion) amortization of securities | (479) | 37 |
| Available for sale security losses | 0 | 1334 |
| Realized losses (gains) on equity securities | 18 | (21) |
| Loss on premises and equipment sales and disposals, net | 10 | 24 |
| Stock compensation expense | 662 | 642 |
| Earnings on bank owned life insurance | (966) | (699) |
| Income recognized from death benefit on bank owned life insurance | (526) | (111) |
| Origination of loans held for sale | (19872) | (16486) |
| Proceeds from loans held for sale | 19849 | 19089 |
| Net (gains) on sale of loans | (380) | (326) |
| Net change in other assets and liabilities | (7974) | (2800) |
| NET CASH FROM OPERATING ACTIVITIES | 7573 | 15670 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| Proceeds from maturities and repayments of securities available for sale | 20495 | 14850 |
| Proceeds from sales of securities available for sale | 0 | 23901 |
| Purchases of securities available for sale | (15927) | (34539) |
| Proceeds from sales of equity securities | 53 | 28 |
| Purchase of equity securities | (53) | (30) |
| Proceeds from maturities and repayments of SBIC funds | 61 | 216 |
| Purchases of SBIC funds | (390) | (1464) |
| Proceeds from redemption of restricted stock | 18785 | 6946 |
| Purchase of restricted stock | (16886) | (604) |
| Loan originations and payments, net | 14399 | 23044 |
| Purchase of portfolio loans | 0 | (8044) |
| Proceeds from loans held for sale previously classified as portfolio loans | 0 | 1600 |
| Proceeds from BOLI death benefit | 562 | 0 |
| Purchase of company owned life insurance | 0 | (15000) |
| Proceeds from land, building and equipment sales | 25 | 11 |
| Additions to premises and equipment | (507) | (3498) |
| Net cash paid in business combinations | 64757 | 0 |
| NET CASH FROM INVESTING ACTIVITIES | 85374 | 7417 |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| Net change in deposits | 92815 | 214509 |
| Net change in short-term borrowings | (85000) | (203000) |
| Cash dividends paid | (6371) | (6361) |
| Cash paid for withholding taxes on share-based awards | (665) | (717) |
| NET CASH FROM FINANCING ACTIVITIES | 779 | 4431 |
| NET CHANGE IN CASH AND CASH EQUIVALENTS | 93726 | 27518 |
| Beginning cash and cash equivalents | 92357 | 85738 |
| Ending cash and cash equivalents | $186083 | $113256 |
| Supplemental cash flow information: |  |  |
| Interest paid | $26535 | $24793 |
| Supplemental noncash disclosures: |  |  |
| Issuance of stock awards | $1827 | $1056 |
| Issuance of stock for business combination | $277363 | $0 |
| Transfer of loans to loans held for sale | $0 | $1845 |
| Lease liabilities arising from obtaining right-of-use assets | $3486 | $149 |

---

See Note 2 regarding non-cash transactions included in the acquisition.

See accompanying notes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6

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[**Table of Contents**](#toc)

**NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS** 

**Principles of Consolidation:** 

Farmers National Banc Corp. ("Company" or "Farmers") is a Financial Holding Company registered under the Bank Holding Company Act of *1956,* as amended. The Company provides full banking services through its nationally chartered subsidiary, The Farmers National Bank of Canfield ("Bank"). The consolidated financial statements also include the accounts of the Bank's subsidiaries: Farmers National Insurance, LLC ("Insurance") and Farmers of Canfield Investment Co. ("Investments"). The Company provides trust and retirement consulting services through its subsidiary, Farmers Trust Company ("Trust"), and insurance services through the Bank's subsidiary, Insurance. The consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries, along with the Trust company. All significant intercompany balances and transactions have been eliminated in the consolidation.

**Basis of Presentation:** 

The unaudited consolidated condensed financial statements have been prepared in conformity with the instructions to Form *10*-Q and Article *10* of Regulation S-*X.* Accordingly, they do *not* include all of the information and footnotes required by U.S. generally accepted accounting principles ("U.S. GAAP") for complete financial statements. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's *2025* Annual Report to Shareholders included in the Company's Annual Report on Form *10*-K for the year ended *December 31, 2025* ("*2025* Form *10*-K"). The interim consolidated financial statements include all adjustments (consisting of only normal recurring items) that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of operations for the interim periods disclosed herein are *not* necessarily indicative of the results that *may* be expected for a full year. Certain items included in the prior period financial statements were reclassified to conform to the current period presentation. There was *no* effect on net income or total stockholders' equity.

**Estimates:** 

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

**Segments:** 

The Company provides a broad range of financial services to individuals and companies in northeastern Ohio and western Pennsylvania. Operations are managed and financial performance is primarily aggregated and reported in two lines of business, the Bank segment and the Trust segment.

**Equity:**

There are 75,000,000 shares authorized and available for issuance as of *March 31, 2026*. Outstanding shares at *March 31, 2026* were 59,191,712.

**Comprehensive Income:** 

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized gains and losses on securities available for sale and changes in the funded status of the post-retirement plan, which are recognized as components of stockholders' equity, net of tax effect.

**Updates to Significant Accounting Policies:**

**New Accounting Standard:**

In *November 2025,* the FASB issued ASU *2025*-*08, Financial Instruments*—*Credit Losses (Topic *326*)*. ASU *2025*-*08* expands the use of the gross up method to certain acquired loans beyond purchased financial assets with credit deterioration. The ASU applies the gross-up method to acquired non-PCD assets that are purchased seasoned loans ultimately eliminating the Day *1* credit loss expense and reducing interest income recognized in subsequent periods. The ASU is effective for interim and annual reporting periods in fiscal years beginning after *December 15, 2026,* and is applied on a prospective basis. Early adoption is permitted. This update was adopted by the Company during the *first* quarter of *2026.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *7*

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**Business Combinations:**

On *March 2, 2026,* the Company completed its previously announced merger with Middlefield Banc Corp., an Ohio corporation ("Middlefield"), pursuant to the Agreement and Plan of Merger dated as of *October 22, 2025,* between the Company and Middlefield (the "Merger Agreement"). Pursuant to the terms of the Merger Agreement, at the effective time of the Merger (the "Effective Time") Middlefield merged with and into the Company (the "Merger"), with the Company as the surviving entity in the Merger. Promptly following the consummation of the Merger, The Middlefield Banking Company, the banking subsidiary of Middlefield, merged with and into The Farmers National Bank of Canfield, the national banking subsidiary of the Company ("Farmers Bank"), with Farmers Bank as the surviving bank.

Pursuant to the terms of the Merger Agreement, at the Effective Time of the Merger, each common share, without par value, of Middlefield ("Middlefield Common Shares") issued and outstanding immediately prior to the Effective Time was converted into the right to receive 2.6 common shares, without par value, of the Company ("Company Common Shares"). *No* fractional Company Common Shares were issued in the Merger, and Middlefield's shareholders became entitled to receive cash in lieu of fractional Company Common Shares, which represented a transaction value of approximately $277.4 million based on its closing stock price of $12.93 on *February 27, 2026.* 

In accordance with ASC *805,* the Company expensed $3.7 million of merger related costs during the *three* months ended *March 31, 2026.* There were no merger related expenses recorded during the *three* months ended *March 31, 2025.* The Company recorded goodwill of $104.2 million as a result of the Merger. Goodwill represents the future economic benefits arising from net assets acquired that are *not* individually identified and separately recognized and is attributable to synergies, including the reduction of personnel and overlapping contracts, expected to be derived from the Company's strategy to enhance and expand its presence. The Merger offers the Company the opportunity to increase profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded market area. The goodwill was determined *not* to be deductible for income tax purposes.

The following table summarizes the consideration paid for Middlefield and the amounts of the assets acquired and liabilities assumed on the closing date of the Merger.

---

| | |
|:---|:---|
| (In Thousands of Dollars) |  |
| Consideration |  |
| Cash | $8.0 |
| Stock | 277355.0 |
| Fair value of total consideration transferred | $277363.0 |
| Fair value of assets acquired |  |
| Cash and cash equivalents | $64759.0 |
| Securities available for sale | 152767.0 |
| Loans, net | 1490843.0 |
| Premises and equipment | 22609.0 |
| Bank owned life insurance | 35715.0 |
| Core deposit intangible | 19826.0 |
| Current and deferred taxes | 7473.0 |
| Other assets | 29821.0 |
| Total assets acquired | 1823813.0 |
| Fair value of liabilities assumed |  |
| &nbsp;&nbsp;&nbsp; Deposits | 1485792.0 |
| &nbsp;&nbsp;&nbsp; Short-term borrowings | 145000.0 |
| &nbsp;&nbsp;&nbsp; Long-term borrowings | 7223.0 |
| &nbsp;&nbsp;&nbsp; Accrued interest payable and other liabilities | 12636.0 |
| Total liabilities | 1650651.0 |
| Net assets acquired | $173162.0 |
| Goodwill created | 104201.0 |
| Total net assets acquired | $277363.0 |

---

The fair value of net assets acquired includes fair value adjustments to certain receivables that were considered performing as of the effective date of the Merger. The fair value adjustments were determined using the income method, discounted cash flow approach. However, the Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were *not* considered purchase credit deteriorated ("PCD") at the Merger effective date and were *not* subject to the guidance relating to PCD loans. Receivables acquired that were *not* subject to these requirements had a fair value and gross contractual amounts receivable of $1.46 billion and $1.48 billion on the date of acquisition.

The fair value of purchased financial assets that were classified as PCD loans are discussed in the Purchased Loans footnote.

The following table presents unaudited pro forma information as if the Merger had occurred on *January 1, 2025.* The pro forma adjustments give effect to any change in interest income due to the accretion of the discount associated with the fair value adjustments to acquired loans, any change in interest expense due to estimated premium amortization/discount accretion associated with the fair value adjustment to acquired interest-bearing deposits and long-term debt and the amortization of the core deposit intangible that would have resulted had the deposits been acquired as of *January 1, 2025.* The pro forma information is *not* indicative of what would have occurred had the Merger occurred as of the beginning of the year prior to the Merger effective date. The pro forma amounts below do *not* reflect any adjustments to the provision for credit losses for acquired loans, or the Company's expectations as of the date of the pro forma information of further operating cost savings and other business synergies expected to be achieved, including revenue growth as a result of the Merger. As a result, actual amount differed from the unaudited pro forma information presented.

---

| | | |
|:---|:---|:---|
|  | *Three months ended* | *Three months ended* |
| (In Thousands of Dollars) | *March 31, 2026* | *March 31, 2025* |
| Net interest income | $58413 | $51422 |
| Noninterest income | 14751 | 12425 |
| Noninterest expense (1) | 48268 | 40208 |
| Net income (1)(2) | 21069 | 19543 |

---

(*1*) Excludes $14.5 million in merger expense for the *three* months ended *March 31, 2026.* No merger costs were recorded for the *three* months ended *March 31, 2025.* 

(*2*) Excludes $14.8 million in allowance for credit losses booked in the *first* quarter of *2026.* There was not a similar entry for the *first* quarter of *2025.*

**Securities:** 

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at *March 31, 2026* and *December 31, 2025*, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). No allowance for credit losses have been recognized for the securities portfolio at *March 31, 2026* or *December 31, 2025*.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | *Gross* | *Gross* |  |
|  | *Amortized* | *Unrealized* | *Unrealized* |  |
| (In Thousands of Dollars) | *Cost* | *Gains* | *Losses* | *Fair Value* |
| **March 31, 2026** |  |  |  |  |
| U.S. Treasury and U.S. government sponsored entities | $104720 | $29 | $(9851) | $94898 |
| State and political subdivisions | 716934 | 1710 | (92688) | 625956 |
| Corporate bonds | 32213 | 140 | (280) | 32073 |
| Mortgage-backed securities | 635441 | 610 | (83320) | 552731 |
| Collateralized mortgage obligations | 182586 | 617 | (6543) | 176660 |
| Small Business Administration | 2009 | 0 | (129) | 1880 |
| Totals | $1673903 | $3106 | $(192811) | $1484198 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | *Gross* | *Gross* |  |
|  | *Amortized* | *Unrealized* | *Unrealized* |  |
| (In Thousands of Dollars) | *Cost* | *Gains* | *Losses* | *Fair Value* |
| **December 31, 2025** |  |  |  |  |
| U.S. Treasury and U.S. government sponsored entities | $104737 | $45 | $(9487) | $95295 |
| State and political subdivisions | 589236 | 2632 | (88171) | 503697 |
| Corporate bonds | 13171 | 163 | (289) | 13045 |
| Mortgage-backed securities | 629376 | 731 | (82973) | 547134 |
| Collateralized mortgage obligations | 186494 | 1461 | (5739) | 182216 |
| Small Business Administration | 2210 | 0 | (140) | 2070 |
| Totals | $1525224 | $5032 | $(186799) | $1343457 |

---

The proceeds from sales of available-for-sale securities and the associated gains and losses are as follows:

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***March 31,*** | ***March 31,*** |
| (In Thousands of Dollars) | ***2026*** | ***2025*** |
| Proceeds | $0 | $23901 |
| Gross gains | 0 | 0 |
| Gross losses | 0 | (1334) |

---

The amortized cost and fair value of the debt securities portfolio are shown in the table below by expected maturity. Expected maturities *may* differ from contractual maturities if issuers have the right to call or prepay obligations with or without call, or prepayment penalties. Securities *not* due at a single maturity date are shown separately.

---

| | | |
|:---|:---|:---|
|  | ***March 31, 2026*** | ***March 31, 2026*** |
| (In Thousands of Dollars) | *Amortized Cost* | *Fair Value* |
| **Maturity** |  |  |
| Within one year | $4668 | $4644 |
| One to five years | 77267 | 72915 |
| Five to ten years | 209826 | 194283 |
| Beyond ten years | 562106 | 481085 |
| Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities | 820036 | 731271 |
| Total | $1673903 | $1484198 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *8*

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The following table summarizes the investment securities with unrealized losses for which an allowance for credit losses has *not* been recorded at *March 31, 2026* and *December 31, 2025*, aggregated by major security type and length of time in a continuous unrealized loss position.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | *Less than 12 Months* | *Less than 12 Months* | *12 Months or Longer* | *12 Months or Longer* | *Total* | *Total* |
|  | *Fair* | *Unrealized* | *Fair* | *Unrealized* | *Fair* | *Unrealized* |
| (In Thousands of Dollars) | *Value* | *Loss* | *Value* | *Loss* | *Value* | *Loss* |
| **March 31, 2026** |  |  |  |  |  |  |
| U.S. Treasury and U.S. government sponsored entities | $1159 | $(11) | $92833 | $(9840) | $93992 | $(9851) |
| State and political subdivisions | 155312 | (2308) | 404333 | (90380) | 559645 | (92688) |
| Corporate bonds | 18386 | (30) | 6805 | (250) | 25191 | (280) |
| Mortgage-backed securities | 74431 | (958) | 427583 | (82362) | 502014 | (83320) |
| Collateralized mortgage obligations | 56177 | (1184) | 69827 | (5359) | 126004 | (6543) |
| Small Business Administration | 0 | 0 | 1880 | (129) | 1880 | (129) |
| Total | $305465 | $(4491) | $1003261 | $(188320) | $1308726 | $(192811) |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | *Less than 12 Months* | *Less than 12 Months* | *12 Months or Longer* | *12 Months or Longer* | *Total* | *Total* |
|  | *Fair* | *Unrealized* | *Fair* | *Unrealized* | *Fair* | *Unrealized* |
| (In Thousands of Dollars) | *Value* | *Loss* | *Value* | *Loss* | *Value* | *Loss* |
| **December 31, 2025** |  |  |  |  |  |  |
| U.S. Treasury and U.S. government sponsored entities | $100 | $0 | $93211 | $(9487) | $93311 | $(9487) |
| State and political subdivisions | 6302 | (1360) | 432053 | (86811) | 438355 | (88171) |
| Corporate bonds | 2962 | (44) | 6293 | (245) | 9255 | (289) |
| Mortgage-backed securities | 48965 | (313) | 437859 | (82660) | 486824 | (82973) |
| Collateralized mortgage obligations | 50887 | (621) | 69006 | (5118) | 119893 | (5739) |
| Small Business Administration | 0 | 0 | 2070 | (140) | 2070 | (140) |
| Total | $109216 | $(2338) | $1040492 | $(184461) | $1149708 | $(186799) |

---

As of *March 31, 2026*, the Company's security portfolio consisted of 1,068 securities, 913 of which were in an unrealized loss position. The treasury, agency, mortgage-backed securities, collateralized mortgage obligations and small business administration securities that the Company owns are all issued by government sponsored entities and therefore contain *no* potential for credit loss. The Company does *not* consider any of its available-for-sale securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses have occurred as a result of changes in noncredit related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, *not* credit deterioration. The vast majority of the Company's state and political subdivisions holdings are of high credit quality and are rated AA or higher. In addition, management has both the ability and intent to hold the securities for a period of time sufficient to allow for the recovery in fair value. As of *March 31, 2026*, the Company has *not* recorded an allowance for credit losses on available for sale ("AFS") securities.

At *December 31, 2025*, the Company's security portfolio consisted of 899 securities, 716 of which were in an unrealized loss position. The treasury, agency, mortgage-backed securities, collateralized mortgage obligations and small business administration securities that the Company owns are all issued by government sponsored entities and therefore contain *no* potential for credit loss. At *December 31, 2025,* the Company did *not* consider any of its available-for-sale securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses have occurred as a result of changes in noncredit related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, *not* credit deterioration. The vast majority of the Company's state and political subdivisions holdings are of high credit quality and are rated AA or higher. In addition, management had both the ability and intent to hold the securities for a period of time sufficient to allow for the recovery in fair value. At *December 31, 2025*, the Company had *not* recorded an allowance for credit losses on AFS securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *9*

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**Equity Securities**

The Company also holds equity securities which include $16.2 million in Small Business Investment Company ("SBIC") partnership investments as well as $876,000 in local and regional bank holdings and other miscellaneous equity funds at *March 31, 2026*. At *December 31, 2025*, the Company held $15.5 million in SBIC investments and $370,000 in local and regional bank holdings and other miscellaneous equity funds. These investments are held at modified cost and any changes in the modified costs are recognized in income in both *2026* and *2025*.

**Loans:** 

Loan balances were as follows:

---

| | | |
|:---|:---|:---|
| (In Thousands of Dollars) | ***March 31, 2026*** | ***December 31, 2025*** |
| Commercial real estate |  |  |
| Owner occupied | $626711 | $393061 |
| Non-owner occupied | 1047722 | 710468 |
| Farmland | 231601 | 211370 |
| Other | 403988 | 294587 |
| Commercial |  |  |
| Commercial and industrial | 591409 | 340224 |
| Agricultural | 52414 | 54195 |
| Residential real estate |  |  |
| 1-4 family residential | 1219766 | 850300 |
| Home equity lines of credit | 349656 | 181544 |
| Consumer |  |  |
| Indirect | 233576 | 231242 |
| Direct | 21539 | 16483 |
| Other | 10020 | 10070 |
| Total loans | $4788402 | $3293544 |
| Net deferred loan costs | 11662 | 11169 |
| Allowance for credit losses | (54684) | (36811) |
| Net loans | $4745380 | $3267902 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *10*

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**Allowance for credit loss activity**

The following tables present the activity in the allowance for credit losses by portfolio segment for the *three* month periods ended *March 31, 2026* and *2025*:

**Three Months Ended *March 31, 2026***

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | *Commercial* |  | *Residential* |  |  |
| (In Thousands of Dollars) | *Real Estate* | *Commercial* | *Real Estate* | *Consumer* | *Total* |
| Allowance for credit losses |  |  |  |  |  |
| Beginning balance | $20064 | $4536 | $7241 | $4970 | $36811 |
| (Credit) Provision for credit losses | (1771) | 329 | 13 | 416 | (1013) |
| Initial allowance on loans purchased with credit deterioration | 3380 | 600 | 15 | 0 | 3995 |
| Initial allowance on purchased seasoned loans | 8377 | 2746 | 4102 | 110 | 15335 |
| Loans charged off | (1) | (291) | (83) | (354) | (729) |
| Recoveries | 0 | 121 | 43 | 121 | 285 |
| Total ending allowance balance | $30049 | $8041 | $11331 | $5263 | $54684 |

---

**Three Months Ended *March 31, 2025***

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | *Commercial* |  | *Residential* |  |  |
| (In Thousands of Dollars) | *Real Estate* | *Commercial* | *Real Estate* | *Consumer* | *Total* |
| Allowance for credit losses |  |  |  |  |  |
| Beginning balance | $19259 | $4628 | $7271 | $4705 | $35863 |
| Provision (Credit) for credit losses | 263 | (125) | (234) | 118 | 22 |
| Loans charged off | (44) | (313) | (19) | (322) | (698) |
| Recoveries | 2 | 193 | 47 | 120 | 362 |
| Total ending allowance balance | $19480 | $4383 | $7065 | $4621 | $35549 |

---

The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company's historical loss experience from *December 31, 2011* to *March 31, 2026*. As of *March 31, 2026*, the Company expects that the markets in which it operates will experience minimal changes to economic conditions, stable trend in unemployment rate, and an increased trend of delinquencies. Management adjusted historical loss experience for these expectations. *No* reversion adjustments were necessary, as the starting point for the Company's estimate was a cumulative loss rate covering the expected contractual term of the portfolio. While there are many factors that go into the calculation of the allowance for credit losses, the change in the balances from *March 31, 2025* to *March 31, 2026* is largely attributed to the Middlefield Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *11*

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The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over *89* days still accruing as of *March 31, 2026* and *December 31, 2025*:

---

| | | | |
|:---|:---|:---|:---|
|  | *Nonaccrual with* | *Nonaccrual with* | *Loans past due* |
|  | *no allowance* | *an allowance* | *over 89 days* |
| (In Thousands of Dollars) | *for credit loss* | *for credit loss* | *still accruing* |
| **March 31, 2026** |  |  |  |
| Commercial real estate |  |  |  |
| Owner occupied | $4989 | $2818 | $0 |
| Non-owner occupied | 6773 | 16680 | 0 |
| Farmland | 0 | 1879 | 0 |
| Other | 1576 | 0 | 0 |
| Commercial |  |  |  |
| Commercial and industrial | 8074 | 9521 | 0 |
| Agricultural | 0 | 161 | 0 |
| Residential real estate |  |  |  |
| 1-4 family residential | 1878 | 3068 | 268 |
| Home equity lines of credit | 506 | 1004 | 0 |
| Consumer |  |  |  |
| Indirect | 32 | 526 | 0 |
| Direct | 0 | 4 | 0 |
| Other | 97 | 0 | 0 |
| Total loans | $23925 | $35661 | $268 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | *Nonaccrual with* | *Nonaccrual with* | *Loans past due* |
|  | *no allowance* | *an allowance* | *over 89 days* |
| (In Thousands of Dollars) | *for credit loss* | *for credit loss* | *still accruing* |
| **December 31, 2025** |  |  |  |
| Commercial real estate |  |  |  |
| Owner occupied | $1346 | $207 | $0 |
| Non-owner occupied | 2408 | 10776 | 0 |
| Farmland | 0 | 1917 | 0 |
| Other | 1093 | 0 | 0 |
| Commercial |  |  |  |
| Commercial and industrial | 0 | 2778 | 82 |
| Agricultural | 0 | 159 | 0 |
| Residential real estate |  |  |  |
| 1-4 family residential | 1095 | 2329 | 271 |
| Home equity lines of credit | 424 | 689 | 0 |
| Consumer |  |  |  |
| Indirect | 61 | 462 | 0 |
| Direct | 0 | 21 | 0 |
| Other | 97 | 0 | 0 |
| Total loans | $6524 | $19338 | $353 |

---

There were *no* loans that were held for sale and in nonaccrual status for the periods ending *March 31, 2026* and *December 31, 2025*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *12*

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The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of *March 31, 2026* and *December 31, 2025*:

---

| | | | | |
|:---|:---|:---|:---|:---|
| (In Thousands of Dollars) | *Real Estate* | *Business Assets* | *Vehicles* | *Cash* |
| **March 31, 2026** |  |  |  |  |
| Commercial real estate |  |  |  |  |
| Owner occupied | $7518 | $0 | $0 | $0 |
| Non-owner occupied | 35322 | 0 | 0 | 0 |
| Farmland | 1839 | 0 | 0 | 0 |
| Other | 1576 | 0 | 0 | 0 |
| Commercial |  |  |  |  |
| Commercial and industrial | 0 | 16812 | 0 | 0 |
| Agricultural | 0 | 8 | 0 | 0 |
| Residential real estate |  |  |  |  |
| 1-4 family residential | 3031 | 0 | 0 | 0 |
| Home equity lines of credit | 912 | 0 | 0 | 0 |
| Consumer |  |  |  |  |
| Indirect | 0 | 0 | 72 | 0 |
| Direct | 0 | 0 | 2 | 0 |
| Other | 97 | 0 | 0 | 0 |
| Total loans | $50295 | $16820 | $74 | $0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| (In Thousands of Dollars) | *Real Estate* | *Business Assets* | *Vehicles* | *Cash* |
| **December 31, 2025** |  |  |  |  |
| Commercial real estate |  |  |  |  |
| Owner occupied | $1346 | $0 | $0 | $0 |
| Non-owner occupied | 24235 | 0 | 0 | 0 |
| Farmland | 1872 | 0 | 0 | 0 |
| Other | 1093 | 0 | 0 | 0 |
| Commercial |  |  |  |  |
| Commercial and industrial | 0 | 2352 | 0 | 0 |
| Agricultural | 0 | 0 | 0 | 0 |
| Residential real estate |  |  |  |  |
| 1-4 family residential | 2411 | 0 | 0 | 0 |
| Home equity lines of credit | 944 | 0 | 0 | 0 |
| Consumer |  |  |  |  |
| Indirect | 0 | 0 | 102 | 0 |
| Direct | 0 | 0 | 4 | 0 |
| Other | 97 | 0 | 0 | 0 |
| Total loans | $31998 | $2352 | $106 | $0 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *13*

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The following tables present the aging of the amortized cost basis in past due loans as of *March 31, 2026* and *December 31, 2025* by class of loans.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | *90 Days* |  |  |  |
|  |  |  | *or More* |  |  |  |
|  | *30-59 Days* | *60-89 Days* | *Past Due* | *Total* | *Loans Not* |  |
| (In Thousands of Dollars) | *Past Due* | *Past Due* | *and Nonaccrual* | *Past Due* | *Past Due* | *Total* |
| **March 31, 2026** |  |  |  |  |  |  |
| Commercial real estate |  |  |  |  |  |  |
| Owner occupied | $376 | $0 | $7807 | $8183 | $618356 | $626539 |
| Non-owner occupied | 106 | 0 | 23453 | 23559 | 1023809 | 1047368 |
| Farmland | 112 | 160 | 1879 | 2151 | 229304 | 231455 |
| Other | 990 | 0 | 1576 | 2566 | 400802 | 403368 |
| Commercial |  |  |  |  |  |  |
| Commercial and industrial | 641 | 390 | 17595 | 18626 | 574331 | 592957 |
| Agricultural | 239 | 25 | 161 | 425 | 52879 | 53304 |
| Residential real estate |  |  |  |  |  |  |
| 1-4 family residential | 8634 | 59 | 5214 | 13907 | 1206809 | 1220716 |
| Home equity lines of credit | 695 | 227 | 1510 | 2432 | 347486 | 349918 |
| Consumer |  |  |  |  |  |  |
| Indirect | 1372 | 513 | 558 | 2443 | 240360 | 242803 |
| Direct | 99 | 30 | 4 | 133 | 21479 | 21612 |
| Other | 32 | 0 | 97 | 129 | 9895 | 10024 |
| Total loans | $13296 | $1404 | $59854 | $74554 | $4725510 | $4800064 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  | *90 Days* |  |  |  |
|  |  |  | *or More* |  |  |  |
|  | *30-59 Days* | *60-89 Days* | *Past Due* | *Total* | *Loans Not* |  |
| (In Thousands of Dollars) | *Past Due* | *Past Due* | *and Nonaccrual* | *Past Due* | *Past Due* | *Total* |
| **December 31, 2025** |  |  |  |  |  |  |
| Commercial real estate |  |  |  |  |  |  |
| Owner occupied | $419 | $1018 | $1553 | $2990 | $389881 | $392871 |
| Non-owner occupied | 8 | 0 | 13184 | 13192 | 696884 | 710076 |
| Farmland | 116 | 163 | 1917 | 2196 | 209035 | 211231 |
| Other | 0 | 0 | 1093 | 1093 | 292915 | 294008 |
| Commercial |  |  |  |  |  |  |
| Commercial and industrial | 1064 | 174 | 2860 | 4098 | 337639 | 341737 |
| Agricultural | 235 | 30 | 159 | 424 | 54665 | 55089 |
| Residential real estate |  |  |  |  |  |  |
| 1-4 family residential | 9848 | 1122 | 3695 | 14665 | 836515 | 851180 |
| Home equity lines of credit | 75 | 54 | 1113 | 1242 | 180544 | 181786 |
| Consumer |  |  |  |  |  |  |
| Indirect | 2090 | 470 | 523 | 3083 | 237027 | 240110 |
| Direct | 37 | 7 | 21 | 65 | 16486 | 16551 |
| Other | 17 | 0 | 97 | 114 | 9960 | 10074 |
| Total loans | $13909 | $3038 | $26215 | $43162 | $3261551 | $3304713 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *14*

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**Loan Restructurings**

The Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

Any restructuring of a loan in which the borrower has experienced financial difficulty and the terms of the loan are more favorable than would generally be considered for borrowers with the same credit characteristics would be individually evaluated. Otherwise, the restructured loan remains in the appropriate segment in the ACL model.

The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the *three* months ended *March 31, 2026* and *March 31, 2025*, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Three Months Ended March 31, 2026** | Amortized Cost | Amortized Cost | Amortized Cost | Amortized Cost | Amortized Cost |  |
| (In Thousands of Dollars) | Payment Deferral | Term Extension | Interest Rate Reduction | Combination Payment Deferral and Interest Rate Reduction | Total | % of Total Class of Financing Receivable |
| Commercial real estate |  |  |  |  |  |  |
| Non-owner occupied | $4321 | $0 | $0 | $0 | $4321 | 0.41% |
| Residential real estate |  |  |  |  |  |  |
| 1-4 family residential | 0 | 0 | 0 | 38 | 38 | 0.00% |
| Total modifications to borrowers experiencing financial difficulty | $4321 | $0 | $0 | $38 | $4359 | 0.09% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Three Months Ended March 31, 2025** | Amortized Cost | Amortized Cost | Amortized Cost | Amortized Cost | Amortized Cost |  |
| (In Thousands of Dollars) | Payment Deferral | Term Extension | Interest Rate Reduction | Combination Payment Deferral and Interest Rate Reduction | Total | % of Total Class of Financing Receivable |
| Commercial |  |  |  |  |  |  |
| Commercial and industrial | $124 | $0 | $0 | $0 | $124 | 0.04% |
| Residential real estate |  |  |  |  |  |  |
| Home equity lines of credit | 0 | 15 | 0 | 0 | 15 | 0.01% |
| Total modifications to borrowers experiencing financial difficulty | $124 | $15 | $0 | $0 | $139 | 0.00% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *15*

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The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the *three* months ended *March 31, 2026* and *March 31, 2025*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Payment Deferral | Interest Rate Reduction | Interest Rate Reduction | Term Extension |
|  | Weighted-Average | Weighted-Average Contractual Interest Rate | Weighted-Average Contractual Interest Rate | Weighted-Average Years |
|  | Principal Deferred | From | To | Added to the Life |
| **Three Months Ended March 31, 2026** |  |  |  |  |
| Commercial real estate |  |  |  |  |
| Non-owner occupied | $19 |  |  |  |
| Residential real estate |  |  |  |  |
| 1-4 family residential | $5 | 6.75% | 3.00% |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Payment Deferral | Interest Rate Reduction | Interest Rate Reduction | Term Extension |
|  | Weighted-Average | Weighted-Average Contractual Interest Rate | Weighted-Average Contractual Interest Rate | Weighted-Average Years |
|  | Principal Deferred | From | To | Added to the Life |
| **Three Months Ended March 31, 2025** |  |  |  |  |
| Commercial |  |  |  |  |
| Commercial and industrial | $112 |  |  |  |
| Residential real estate |  |  |  |  |
| Home Equity Lines of Credit |  | 0.00% | 0.00% | 5 |

---

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the *three* months ended *March 31, 2026* and *March 31, 2025*:

---

| | | | |
|:---|:---|:---|:---|
| **Three Months Ended March 31, 2026** | *Payment status (Amortized cost Basis)* | *Payment status (Amortized cost Basis)* | *Payment status (Amortized cost Basis)* |
|  |  | *30*-*89* | *90+* |
| (In Thousands of Dollars) | *Current* | *Days past due* | *Days past due* |
| Accrual restructured loans |  |  |  |
| Commercial real estate |  |  |  |
| Non-owner occupied | $0 | $0 | $0 |
| Residential real estate |  |  |  |
| 1-4 family residential | 0 | 0 | 0 |
| Total accruing restructured loans | $0 | $0 | $0 |
| Nonaccrual restructured loans |  |  |  |
| Commercial real estate |  |  |  |
| Non-owner occupied | 4321 | 0 | 0 |
| Residential real estate |  |  |  |
| 1-4 family residential | 38 | 0 | 0 |
| Total nonaccrual restructured loans | $4359 | $0 | $0 |
| Total restructured loans | $4359 | $0 | $0 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Three Months Ended March 31, 2025** | *Payment status (Amortized cost Basis)* | *Payment status (Amortized cost Basis)* | *Payment status (Amortized cost Basis)* |
|  |  | *30*-*89* | *90+* |
| (In Thousands of Dollars) | *Current* | *Days past due* | *Days past due* |
| Accrual restructured loans |  |  |  |
| Commercial real estate |  |  |  |
| &nbsp;&nbsp;&nbsp; Non-owner occupied | $0 | $0 | $0 |
| Residential real estate |  |  |  |
| Home equity lines of credit | 15 | 0 | 0 |
| Total accruing restructured loans | $15 | $0 | $0 |
| Nonaccrual restructured loans |  |  |  |
| Commercial | 0 | 0 | 124 |
| &nbsp;&nbsp;&nbsp; Commercial and industrial |  |  |  |
| Total nonaccrual restructured loans | $0 | $0 | $124 |
| Total restructured loans | $15 | $0 | $124 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *16*

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As of *March 31, 2026*, the Company had *no* commitments to lend any additional funds on restructured loans.

The following table presents the amortized cost basis of loans that had a payment default during the *three* months ended *March 31, 2026* and *March 31, 2025*, and were modified in the *twelve* months prior to that default to borrowers experiencing financial difficulty. For purposes of this disclosure a default occurs when within *12* months of the original modification, a loan is *30* days contractually past due under the modified terms:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Three Months Ended March 31, 2026** | *Amortized Cost* | *Amortized Cost* | *Amortized Cost* | *Amortized Cost* |
|  |  |  |  | *Combination* |
|  |  |  |  | *Term Extension* |
|  | *Payment* | *Term* | *Interest Rate* | *and Interest Rate* |
| (In Thousands of Dollars) | *Deferral* | *Extension* | *Reduction* | *Reduction* |
| Residential real estate |  |  |  |  |
| 1-4 family residential | $102 | $0 | $0 | $0 |
| Total modifications to borrowers experiencing financial difficulty | $102 | $0 | $0 | $0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Three Months Ended March 31, 2025** | *Amortized Cost* | *Amortized Cost* | *Amortized Cost* | *Amortized Cost* |
|  |  |  |  | *Combination* |
|  |  |  |  | *Term Extension* |
|  | *Payment* | *Term* | *Interest Rate* | *and Interest Rate* |
| (In Thousands of Dollars) | *Deferral* | *Extension* | *Reduction* | *Reduction* |
| Commercial |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Commercial and industrial | $124 | $0 | $0 | $0 |
| Residential real estate |  |  |  |  |
| &nbsp;&nbsp;&nbsp; 1-4 family residential | 0 | 0 | 0 | 0 |
| Home equity lines of credit | 0 | 0 | 0 | 19 |
| Total modifications to borrowers experiencing financial difficulty | $124 | $0 | $0 | $19 |

---

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance of the credit losses is adjusted by the same amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *17*

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**Credit Quality Indicators**

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company establishes a risk rating at origination for all commercial loan and commercial real estate relationships. For relationships over $3 million, management monitors the loans on an ongoing basis for any changes in the borrower's ability to service their debt and affirm their risk ratings. The Company uses the following definitions for risk ratings:

**Special Mention.** Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses *may* result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Special mention assets are *not* adversely classified and do *not* expose an institution to sufficient risk to warrant adverse classification.

**Substandard.** Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are *not* corrected.

**Doubtful.** Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans *not* meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential, consumer indirect and direct loan classes, the Company evaluates credit quality based on the aging status of the loan and by payment activity. Nonperforming loans are loans past due *90* days and still accruing interest and nonaccrual loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *18*

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The following table presents total loans by risk categories and year of origination:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* |
| (In Thousands of Dollars) |  |  |  |  |  |  | ***Revolving*** |  |
| **As of March 31, 2026** | ***2026*** | ***2025*** | ***2024*** | ***2023*** | ***2022*** | ***Prior*** | ***Loans*** | ***Total*** |
| Commercial real estate - Owner occupied: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $6435 | $97972 | $93041 | $75052 | $69005 | $259001 | $6180 | $606686 |
| Special mention | 0 | 0 | 1554 | 4670 | 363 | 1276 | 0 | 7863 |
| Substandard | 0 | 0 | 0 | 4989 | 4840 | 2161 | 0 | 11990 |
| Total commercial real estate - Owner occupied loans | $6435 | $97972 | $94595 | $84711 | $74208 | $262438 | $6180 | $626539 |
| Commercial real estate - Owner Occupied: Current period gross write-offs | $0 | $0 | $0 | $0 | $0 | $1 | $0 | $1 |
| Commercial real estate - Non-owner occupied: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $14550 | $91541 | $104325 | $97891 | $193371 | $467941 | $22322 | $991941 |
| Special mention | 0 | 0 | 0 | 0 | 3112 | 3893 | 290 | 7295 |
| Substandard | 0 | 0 | 4146 | 0 | 0 | 42121 | 0 | 46267 |
| Doubtful | 0 | 0 | 0 | 0 | 1865 | 0 | 0 | 1865 |
| Total commercial real estate - Non-owner occupied loans | $14550 | $91541 | $108471 | $97891 | $198348 | $513955 | $22612 | $1047368 |
| Commercial real estate - Non-owner occupied: Current period gross write-offs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Commercial real estate - Farmland: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $6968 | $22635 | $22991 | $19083 | $36266 | $113859 | $7177 | $228979 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Substandard | 0 | 0 | 0 | 1839 | 0 | 637 | 0 | 2476 |
| Total commercial real estate - Farmland loans | $6968 | $22635 | $22991 | $20922 | $36266 | $114496 | $7177 | $231455 |
| Commercial real estate - Farmland: Current period gross write-offs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Commercial real estate - Other: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $5707 | $68403 | $64518 | $103518 | $52205 | $68358 | $21762 | $384471 |
| Special mention | 0 | 0 | 0 | 9306 | 0 | 165 | 0 | 9471 |
| Substandard | 0 | 2953 | 0 | 1465 | 3499 | 563 | 946 | 9426 |
| Total commercial real estate - Other loans | $5707 | $71356 | $64518 | $114289 | $55704 | $69086 | $22708 | $403368 |
| Commercial real estate - Other: Current period gross write-offs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *19*

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---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* |
| (In Thousands of Dollars) |  |  |  |  |  |  | ***Revolving*** |  |
| **As of March 31, 2026** | ***2026*** | ***2025*** | ***2024*** | ***2023*** | ***2022*** | ***Prior*** | ***Loans*** | ***Total*** |
| Commercial - Commercial and industrial: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $21865 | $107794 | $99324 | $73119 | $50748 | $46938 | $164156 | $563944 |
| Special mention | 0 | 0 | 0 | 0 | 2026 | 330 | 4591 | 6947 |
| Substandard | 0 | 970 | 5828 | 3694 | 7057 | 2706 | 1811 | 22066 |
| Total commercial - Commercial and industrial loans | $21865 | $108764 | $105152 | $76813 | $59831 | $49974 | $170558 | $592957 |
| Commercial - Commercial and industrial: Current period gross write-offs | $0 | $10 | $6 | $31 | $86 | $158 | $0 | $291 |
| Commercial - Agricultural: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $1993 | $11287 | $6205 | $7187 | $7376 | $3200 | $15895 | $53143 |
| Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Substandard | 0 | 0 | 29 | 0 | 26 | 106 | 0 | 161 |
| Total commercial - Agricultural loans | $1993 | $11287 | $6234 | $7187 | $7402 | $3306 | $15895 | $53304 |
| Commercial - Agricultural: Current period gross write-offs | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
| Residential real estate - 1-4 family residential: |  |  |  |  |  |  |  |  |
| Payment Performance |  |  |  |  |  |  |  |  |
| Performing | $27635 | $158176 | $127731 | $108168 | $191644 | $596855 | $5293 | $1215502 |
| Nonperforming | 0 | 0 | 0 | 198 | 999 | 4017 | 0 | 5214 |
| Total residential real estate - 1-4 family residential loans | $27635 | $158176 | $127731 | $108366 | $192643 | $600872 | $5293 | $1220716 |
| Residential real estate - 1-4 family residential: Current period gross write-offs | $0 | $0 | $0 | $0 | $0 | $32 | $0 | $32 |
| Residential real estate - Home equity lines of credit: |  |  |  |  |  |  |  |  |
| Payment Performance |  |  |  |  |  |  |  |  |
| Performing | $0 | $100 | $395 | $163 | $514 | $7606 | $339630 | $348408 |
| Nonperforming | 0 | 101 | 0 | 203 | 558 | 648 | 0 | 1510 |
| Total residential real estate - Home equity lines of credit loans | $0 | $201 | $395 | $366 | $1072 | $8254 | $339630 | $349918 |
| Residential real estate - Home equity lines of credit: Current period gross write-offs | $0 | $0 | $0 | $0 | $0 | $51 | $0 | $51 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *20*

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[**Table of Contents**](#toc)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* |
| (In Thousands of Dollars) |  |  |  |  |  |  | ***Revolving*** |  |
| **As of March 31, 2026** | ***2026*** | ***2025*** | ***2024*** | ***2023*** | ***2022*** | ***Prior*** | ***Loans*** | ***Total*** |
| Consumer - Indirect: |  |  |  |  |  |  |  |  |
| Payment Performance |  |  |  |  |  |  |  |  |
| Performing | $25493 | $73812 | $49673 | $34384 | $26636 | $32247 | $0 | $242245 |
| Nonperforming | 0 | 34 | 130 | 57 | 70 | 267 | 0 | 558 |
| Total consumer - Indirect loans | $25493 | $73846 | $49803 | $34441 | $26706 | $32514 | $0 | $242803 |
| Consumer - Indirect: Current period gross write-offs | $0 | $16 | $42 | $46 | $0 | $189 | $0 | $293 |
| Consumer - Direct: |  |  |  |  |  |  |  |  |
| Payment Performance |  |  |  |  |  |  |  |  |
| Performing | $1608 | $4673 | $2043 | $1441 | $846 | $10997 | $0 | $21608 |
| Nonperforming | 0 | 0 | 1 | 0 | 0 | 3 | 0 | 4 |
| Total consumer - Direct loans | $1608 | $4673 | $2044 | $1441 | $846 | $11000 | $0 | $21612 |
| Consumer - Direct: Current period gross write-offs | $0 | $0 | $6 | $0 | $5 | $10 | $0 | $21 |
| Consumer - Other: |  |  |  |  |  |  |  |  |
| Payment Performance |  |  |  |  |  |  |  |  |
| Performing | $0 | $0 | $0 | $0 | $4 | $690 | $9233 | $9927 |
| Nonperforming | 0 | 0 | 0 | 0 | 97 | 0 | 0 | 97 |
| Total consumer - Other loans | $0 | $0 | $0 | $0 | $101 | $690 | $9233 | $10024 |
| Consumer - Other: Current period gross write-offs | $0 | $0 | $0 | $0 | $0 | $1 | $39 | $40 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *21*

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* | *Term Loans Amortized Cost Basis by Origination Year* |
| (In Thousands of Dollars) |  |  |  |  |  |  | ***Revolving*** |  |
| **As of December 31, 2025** | ***2025*** | ***2024*** | ***2023*** | ***2022*** | ***2021*** | ***Prior*** | ***Loans*** | ***Total*** |
| Commercial real estate - Owner occupied: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $54226 | $47332 | $49344 | $40512 | $55333 | $133226 | $3195 | $383168 |
| Special mention | 0 | 648 | 4729 | 0 | 1069 | 74 | 0 | 6520 |
| Substandard | 0 | 0 | 1346 | 430 | 1 | 1406 | 0 | 3183 |
| Total commercial real estate - Owner occupied loans | $54226 | $47980 | $55419 | $40942 | $56403 | $134706 | $3195 | $392871 |
| Commercial real estate - Owner Occupied: Current period gross write-offs | $0 | $0 | $0 | $0 | $22 | $75 | $0 | $97 |
| Commercial real estate - Non-owner occupied: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $79473 | $71707 | $47336 | $115103 | $75125 | $257596 | $20072 | $666412 |
| Special mention | 0 | 0 | 0 | 3126 | 0 | 4103 | 215 | 7444 |
| Substandard | 0 | 21 | 124 | 1870 | 10528 | 21812 | 0 | 34355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Doubtful | 0 | 0 | 0 | 0 | 1865 | 0 | 0 | 1865 |
| Total commercial real estate - Non-owner occupied loans | $79473 | $71728 | $47460 | $120099 | $87518 | $283511 | $20287 | $710076 |
| Commercial real estate - Non-owner occupied: Current period gross write-offs | $0 | $0 | $0 | $1970 | $0 | $0 | $0 | $1970 |
| Commercial real estate - Farmland: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $20347 | $19990 | $20478 | $35611 | $16728 | $91987 | $3568 | $208709 |
| Substandard | 0 | 0 | 1872 | 0 | 352 | 298 | 0 | 2522 |
| Total commercial real estate - Farmland loans | $20347 | $19990 | $22350 | $35611 | $17080 | $92285 | $3568 | $211231 |
| Commercial real estate - Farmland: Current period gross write-offs | $0 | $0 | $0 | $0 | $0 | $44 | $0 | $44 |
| Commercial real estate - Other: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $62052 | $50127 | $48815 | $65170 | $23895 | $24391 | $1351 | $275801 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Special mention | 0 | 0 | 9279 | 0 | 0 | 1364 | 0 | 10643 |
| Substandard | 2965 | 0 | 981 | 3496 | 112 | 10 | 0 | 7564 |
| Total commercial real estate - Other loans | $65017 | $50127 | $59075 | $68666 | $24007 | $25765 | $1351 | $294008 |
| Commercial real estate - Other: Current period gross write-offs | $0 | $0 | $0 | $2454 | $0 | $0 | $0 | $2454 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *22*

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* |
| (In Thousands of Dollars) |  |  |  |  |  |  | ***Revolving*** |  |
| **As of December 31, 2025** | ***2025*** | ***2024*** | ***2023*** | ***2022*** | ***2021*** | ***Prior*** | ***Loans*** | ***Total*** |
| Commercial - Commercial and industrial: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $65564 | $63502 | $52078 | $38843 | $11342 | $19002 | $80655 | $330986 |
| Special mention | 0 | 0 | 0 | 2158 | 253 | 0 | 2050 | 4461 |
| Substandard | 8 | 210 | 21 | 2612 | 719 | 1163 | 1557 | 6290 |
| Total commercial - Commercial and industrial loans | $65572 | $63712 | $52099 | $43613 | $12314 | $20165 | $84262 | $341737 |
| Commercial - Commercial and industrial: Current period gross write-offs | $345 | $122 | $230 | $311 | $127 | $116 | $28 | $1279 |
| Commercial - Agricultural: |  |  |  |  |  |  |  |  |
| Risk Rating |  |  |  |  |  |  |  |  |
| Pass | $11929 | $6738 | $8151 | $8058 | $2502 | $1028 | $16523 | $54929 |
| Special mention | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Substandard | 0 | 32 | 0 | 20 | 18 | 90 | 0 | 160 |
| Total commercial - Agricultural loans | $11929 | $6770 | $8151 | $8078 | $2520 | $1118 | $16523 | $55089 |
| Commercial - Agricultural: Current period gross write-offs | $0 | $114 | $16 | $38 | $26 | $18 | $0 | $212 |
| Residential real estate - 1-4 family residential: |  |  |  |  |  |  |  |  |
| Payment Performance |  |  |  |  |  |  |  |  |
| Performing | $90911 | $88021 | $58641 | $142333 | $140411 | $323056 | $4112 | $847485 |
| Nonperforming | 0 | 0 | 396 | 574 | 238 | 2487 | 0 | 3695 |
| Total residential real estate - 1-4 family residential loans | $90911 | $88021 | $59037 | $142907 | $140649 | $325543 | $4112 | $851180 |
| Residential real estate - 1-4 family residential: Current period gross write-offs | $0 | $0 | $0 | $0 | $150 | $67 | $0 | $217 |
| Residential real estate - Home equity lines of credit: |  |  |  |  |  |  |  |  |
| Payment Performance |  |  |  |  |  |  |  |  |
| Performing | $0 | $24 | $135 | $296 | $211 | $4963 | $175044 | $180673 |
| Nonperforming | 0 | 0 | 7 | 438 | 0 | 668 | 0 | 1113 |
| Total residential real estate - Home equity lines of credit loans | $0 | $24 | $142 | $734 | $211 | $5631 | $175044 | $181786 |
| Residential real estate - Home equity lines of credit: Current period gross write-offs | $0 | $0 | $10 | $28 | $0 | $13 | $0 | $51 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *23*

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* | *Term Loans Amortized Cost Basis by Origination Year (Continued)* |
| (In Thousands of Dollars) |  |  |  |  |  |  | ***Revolving*** |  |
| **As of December 31, 2025** | ***2025*** | ***2024*** | ***2023*** | ***2022*** | ***2021*** | ***Prior*** | ***Loans*** | ***Total*** |
| Consumer - Indirect: |  |  |  |  |  |  |  |  |
| Payment Performance |  |  |  |  |  |  |  |  |
| Performing | $78564 | $55727 | $38329 | $30359 | $15556 | $21052 | $0 | $239587 |
| Nonperforming | 2 | 125 | 101 | 102 | 86 | 107 | 0 | 523 |
| Total consumer - Indirect loans | $78566 | $55852 | $38430 | $30461 | $15642 | $21159 | $0 | $240110 |
| Consumer - Indirect: Current period gross write-offs | $22 | $191 | $93 | $40 | $93 | $489 | $0 | $928 |
| Consumer - Direct: |  |  |  |  |  |  |  |  |
| Payment Performance |  |  |  |  |  |  |  |  |
| Performing | $4010 | $1580 | $1280 | $871 | $647 | $8142 | $0 | $16530 |
| Nonperforming | 0 | 0 | 0 | 4 | 0 | 17 | 0 | 21 |
| Total consumer - Direct loans | $4010 | $1580 | $1280 | $875 | $647 | $8159 | $0 | $16551 |
| Consumer - Direct: Current period gross write-offs | $0 | $6 | $16 | $9 | $0 | $28 | $0 | $59 |
| Consumer - Other: |  |  |  |  |  |  |  |  |
| Payment Performance |  |  |  |  |  |  |  |  |
| Performing | $0 | $0 | $0 | $4 | $64 | $418 | $9491 | $9977 |
| Nonperforming | 0 | 0 | 0 | 97 | 0 | 0 | 0 | 97 |
| Total consumer - Other loans | $0 | $0 | $0 | $101 | $64 | $418 | $9491 | $10074 |
| Consumer - Other: Current period gross write-offs | $0 | $1 | $5 | $0 | $1 | $189 | $0 | $196 |

---

For the periods ending *March 31, 2026* and *December 31, 2025*, there were *no* loans that were held for sale and in nonaccrual status. In the *1*-*4* family residential real estate portfolio at *March 31, 2026*, other real estate owned and foreclosure properties were $0 and $1.6 million, respectively. In the *1*-*4* family residential real estate portfolio at *December 31, 2025*, other real estate owned and foreclosure properties were $52,000 and $506,000, respectively.

The Company follows ASU *2016*-*13* to calculate the allowance for credit losses which requires projecting credit losses over the lifetime of the credits. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of any underlying collateral.

The credit loss estimation process involves procedures that consider the unique characteristics of the Company's loan portfolio segments. These segments are disaggregated into the loan pools for monitoring. A model of risk characteristics, such as loss history and delinquency experience, trends in past due and non-performing loans, as well as existing economic conditions and supportable forecasts are used to determine credit loss assumptions.

The Company uses *two* methodologies to analyze loan pools. The cohort method and the probability of default/loss given default ("PD/LGD"). Cohort relies on the creation of cohorts to capture loans that qualify for a particular segment, as of a point in time. Those loans are then tracked over their remaining lives to determine their loss experience. The Company aggregates financial assets on the basis of similar risk characteristics when evaluating loans on a collective basis. Those characteristics include, but are *not* limited to, internal or external credit score, risk ratings, financial asset, loan type, collateral type, size, effective interest rate, term, or geographical location. The Company uses cohort primarily for consumer loan portfolios.

The probability of default portion of PD/LGD is defined by the Company as *90* days past due, placed on non-accrual, loan restructuring for borrowers experiencing financial difficulty or is partially, or wholly, charged-off. Typically, a *one*-year time period is used to assess probability of default ("PD"). PD can be measured and applied using various risk criteria. Risk rating is *one* common way to apply PDs. Loss given default ("LGD") is to determine the percentage of loss by facility or collateral type. LGD estimates can sometimes be driven, or influenced, by product type, industry or geography. The Company uses PD/LGD primarily for commercial loan portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *24*

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The following table presents the loan pools and the associated methodology used during the calculation of the allowance for credit losses in *2026*.

---

| | | | |
|:---|:---|:---|:---|
| Portfolio Segments | Loan Pool | Methodology | Loss Drivers |
| Residential real estate | *1*-*4* Family Residential Real Estate - *1st* Liens | Cohort | Credit Loss History |
|  | *1*-*4* Family Residential Real Estate - *2nd* Liens | Cohort | Credit Loss History |
| Home Equity Lines of Credit | Home Equity Lines of Credit | Cohort | Credit Loss History |
| Consumer Finance | Cash Reserves | Cohort | Credit Loss History |
|  | Direct | Cohort | Credit Loss History |
|  | Indirect | Cohort | Credit Loss History |
| Commercial | Commercial and Industrial | PD/LGD | Credit Loss History |
|  | Agricultural | PD/LGD | Credit Loss History |
|  | Municipal | PD/LGD | Credit Loss History |
| Commercial real estate | Owner Occupied | PD/LGD | Credit Loss History |
|  | Non-Owner Occupied | PD/LGD | Credit Loss History |
|  | Multifamily | PD/LGD | Credit Loss History |
|  | Farmland | PD/LGD | Credit Loss History |
|  | Construction | PD/LGD | Credit Loss History |

---

According to the accounting standard, an entity *may* make an accounting policy election *not* to measure an allowance for credit losses for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election *not* to measure an allowance for credit losses for accrued interest receivables for all loan segments. Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being *90* days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows insufficient collateral coverage based on a current assessment of the value of the collateral.

In addition, ASU Topic *326* requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the Company must *first* establish a loss expectation for extended (funded) commitments. This loss expectation, expressed as a ratio to the amortized cost basis, is then applied to the portion of unfunded commitments *not* considered unilaterally cancelable, and considered by the company's management as likely to fund over the life of the instrument. At *March 31, 2026*, the Company had $1.03 billion in unfunded commitments and set aside $1.88 million in anticipated credit losses. At *December 31, 2025*, the Company had $710 million in unfunded commitments and set aside $1.34 million in anticipated credit losses. The $323 million increase in unfunded commitments and $540,000 increase in the reserve for anticipated credit losses is attributed to the Middlefield Merger. This reserve is recorded in other liabilities as opposed to the ACL.

The determination of the ACL is complex and the Company makes decisions on the effects of factors that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgments as to the facts and circumstances related to particular situations or credits. The ACL was $54.7 million at *March 31, 2026* and $36.8 million at *December 31, 2025*. The increase of $17.9 million was due to the Day *1* reserve related to the Middlefield Merger that was partially offset by the release of reserves attributed to the reduction of the organic loan portfolio and improvement in historical loss ratios.

**Purchased Loans**

As a result of the Middlefield Merger, the Company acquired $1.49 billion in loans.

---

| | |
|:---|:---|
|  | ***March 31, 2026*** |
| Par value of acquired loans at acquisition | $1531402 |
| Net purchase discount | (21229) |
| Allowance for credit losses of PCD loans | (3995) |
| Allowance for credit losses of PSLs | (15335) |
| Purchase price of loans at acquisition | $1490843 |

---

Under ASU Topic *326,* when loans are obtained through a business combination accounted for using the acquisition method in accordance with ASC *805* and are *not* purchase credit deteriorated ("PCD"), they are accounted for as purchased seasoned loans ("PSL"). PCD loans have evidence of more than insignificant deterioration of credit. PCD loans and PSLs acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss on the acquisition date. PCD loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. During *2026*, the Company acquired PCD loans with a fair value of $41.2 million, credit discount of $4.0 million and noncredit discount of $5.3 million. The outstanding balance at *March 31, 2026* and related allowance on PCD loans is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***March 31, 2026*** | ***March 31, 2026*** | ***December 31, 2025*** | ***December 31, 2025*** |
| (In Thousands of Dollars) | *Loan Balance* | *ACL Balance* | *Loan Balance* | *ACL Balance* |
| Commercial real estate |  |  |  |  |
| Owner Occupied | $10508 | $715 | $258 | $9 |
| Non-owner Occupied | 35942 | 3778 | 25690 | 1428 |
| Farmland | 0 | 0 | 0 | 0 |
| Other | 1410 | 43 | 0 | 0 |
| Commercial |  |  |  |  |
| Commercial and industrial | 17263 | 600 | 509 | 25 |
| Agricultural | 88 | 5 | 88 | 6 |
| Residential real estate |  |  |  |  |
| 1-4 family residential | 2087 | 10 | 894 | 4 |
| Home equity lines of credit | 605 | 6 | 0 | 0 |
| Total | $67903 | $5157 | $27439 | $1472 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *25*

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**Revenue from Contracts with Customers:**

All material revenue from contracts with customers in the scope of ASC *606* is recognized within noninterest income. ASC *606* rules govern the disclosure of revenue tied to contracts. The following table presents the Company's noninterest income by revenue stream and reportable segment, net of eliminations, for the *three* months ended *March 31, 2026* and *2025*.

---

| | | | |
|:---|:---|:---|:---|
|  | *Trust* | *Bank* |  |
| (In Thousands of Dollars) | *Segment* | *Segment* | *Totals* |
| **For Three Months Ended March 31, 2026** |  |  |  |
| Service charges on deposit accounts | $0 | $1966 | $1966 |
| Debit card and EFT fees | 0 | 2023 | 2023 |
| Trust fees | 3030 | 0 | 3030 |
| Insurance agency commissions | 0 | 1683 | 1683 |
| Retirement plan consulting fees | 886 | 0 | 886 |
| Investment commissions | 0 | 871 | 871 |
| Other (outside the scope of ASC 606) | 0 | 3229 | 3229 |
| Total noninterest income | $3916 | $9772 | $13688 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | *Trust* | *Bank* |  |
| (In Thousands of Dollars) | *Segment* | *Segment* | *Totals* |
| **For Three Months Ended March 31, 2025** |  |  |  |
| Service charges on deposit accounts | $0 | $1758 | $1758 |
| Debit card and EFT fees | 0 | 1866 | 1866 |
| Trust fees | 2641 | 0 | 2641 |
| Insurance agency commissions | 0 | 1741 | 1741 |
| Retirement plan consulting fees | 798 | 0 | 798 |
| Investment commissions | 0 | 529 | 529 |
| Other (outside the scope of ASC 606) | 0 | 1148 | 1148 |
| Total noninterest income | $3439 | $7042 | $10481 |

---

A description of the Company's revenue streams under ASC *606* follows:

**Service charges on deposit accounts** – The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements, and determined that the agreements can be terminated at any time by either the Bank or the account holder. Transaction fees, such as balance transfers, wires and overdraft charges are settled the day the performance obligation is satisfied. The Bank's monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would *not* require a change in the accounting treatment for these fees under the revenue standards.

**Debit Card Interchange Fees** – Customers and the Bank have an account agreement and maintain deposit balances with the Bank. Customers use a bank issued debit card to purchase goods and services, and the Bank earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Bank records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. There are *no* contingent debit card interchange fees recorded by the Company that could be subject to a clawback in future periods.

**Trust fees** – Services provided to Trust customers are a series of distinct services that have the same pattern of transfer each month. Fees for trust accounts are billed and drafted from trust accounts monthly. The Company records these fees on the income statement on a monthly basis. Fees are assessed based on the total investable assets of the customer's trust account. A signed contract between the Company and the customer is maintained for all customer trust accounts with payment terms identified. It is probable that the fees will be collectible as funds being managed are accessible by the asset manager. Past history of trust fee income recorded by the Company indicates that it is highly unlikely that a significant reversal could occur. There are *no* contingent incentive fees recorded by the Company that could be subject to a clawback in future periods.

**Insurance Agency Commissions** – Insurance agency commissions are received from insurance carriers for the agency's share of commissions from customer premium payments. These commissions are recorded into income when checks are received from the insurance carriers, and there is *no* contingent portion associated with these commission checks. There *may* be a short time-lag in recording revenue when cash is received instead of recording the revenue when the policy is signed by the customer, but the time lag is insignificant and does *not* impact the revenue recognition process.

Insurance also receives incentive checks from the insurance carriers for achieving specified levels of production with particular carriers. These amounts are recorded into income when a check is received, and there are *no* contingent amounts associated with these payments that *may* be clawed back by the carrier in the future. Similar to the monthly commissions explained in the preceding paragraph, there *may* be a short time-lag in recording incentive revenue on a cash basis as opposed to estimating the amount of incentive revenue expected to be earned, this does *not* materially impact the recognition of Insurance revenue. If there were any amounts that would need to be refunded for *one* specific Insurance customer, management believes the reversal would *not* be significant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *26*

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Other potential situations surrounding the recognition of Insurance revenue include estimating potential refunds due to the likely cancellation of a percentage of customers canceling their policies and recording revenue at the time of policy renewals.

**Retirement Plan Consulting Fees** – Revenue is recognized based on the level of work performed for the client. Any payments that are received for work to be performed in the future are recorded in a deferred revenue account, and recorded into income when the fees are earned.

**Investment Commissions** – Investment commissions are earned through the sales of non-deposit investment products to customers of the Company. The sales are conducted through a *third*-party broker-dealer. When the commissions are received and recorded into income on the Bank's income statement, there is *no* contingent portion that *may* need to be refunded back to the broker dealer.

**Other** – Income items included in "Other" are Bank owned life insurance income, security gains, net gains on the sale of loans and other operating income. Any amounts within the scope of ASC *606* are deemed immaterial.

**Fair Value:**

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

There are *three* levels of inputs that *may* be used to measure fair values:

Level *1* – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level *2* – Significant other observable inputs other than Level *1* prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are *not* active; or other inputs that are observable or can be corroborated by observable market data.

Level *3* – Significant unobservable inputs that reflect a reporting entity's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

**Investment Securities**

The Company uses a *third* party service to estimate fair value on available for sale securities on a monthly basis. The Company's service provider uses a leading evaluation pricing service for U.S. domestic fixed income securities and values securities using exit pricing requirements. The Company independently corroborates the fair value received through this pricing service by obtaining the pricing through a *second* source at the end of each quarter. The fair values for investment securities, which consist of equity securities that are recorded at fair value to comply with exit pricing, are determined by quoted market prices in active markets, if available (Level *1*). The equity securities change in fair value is recorded in the income statement. For securities where quoted prices are *not* available, fair values are calculated based on quoted prices for similar assets in active markets, quoted prices for similar assets in markets that are *not* active or inputs other than quoted prices, which provide a reasonable basis for fair value determination. Such inputs *may* include interest rates and yield curves, prepayment speeds, credit risks and default rates. The inputs used are principally derived from observable market data (Level *2*). For securities where quoted prices or market prices of similar securities are *not* available, fair values are calculated using discounted cash flows or other market indicators (Level *3*). The fair values of Level *3* investment securities are determined by using unobservable inputs to measure fair value of assets for which there is little, if any, market activity at the measurement date, using reasonable inputs and assumptions based on the best information at the time, to the extent that inputs are available without undue cost and effort.

At *March 31, 2026*, the Company determined that *no* securities had a fair value less than amortized cost that was as a result of credit deterioration as outlined in ASU *2016*-*13.*

**Loans Held For Sale, at Fair Value**

The fair value of loans held for sale is estimated based upon binding contracts or quotes from *third* party investors (Level *2*).

**Mortgage Banking Derivatives**

The fair value of mortgage banking derivatives are calculated using derivative valuation models that utilize quoted prices for similar assets adjusted for the specific attributes of the commitments and other observable market data at the valuation date (Level *2*).

**Loan Servicing Rights**

Loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount at the end of each quarter. If the carrying amount of an individual tranche exceeds the fair value then an impairment is recorded on that tranche so that the servicing asset is carried at fair value. The calculation of the fair value is performed by an independent *third* party and the model uses factors such as the interest rate, prepayment speeds and other default rate assumptions that market participants would use in estimating the future net servicing income that can be validated against available market data (Level *2*).

**Interest Rate Swaps**

The Company periodically enters into interest rate swap agreements with its commercial customers who desire a fixed rate loan term that is longer than the Company is willing to extend. The Company enters into a reciprocal swap agreement with a *third* party that offsets the interest rate risk from the interest rate extended to the customer. The fair value of these interest rate swap derivative instruments is calculated by an independent *third* party and are based upon valuation models that use observable market data as of the measurement date (Level *2*).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *27*

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The Company also entered into a fair value hedge to mitigate the risk of further interest rate increases and the subsequent impact on the valuation of the Company's state and political subdivision municipal bond portfolio. The Company uses an independent *third* party to perform a market valuation analysis for this derivative (Level *2*).

**Collateral Dependent Loans**

Fair value estimates of collateral dependent loans that are individually reviewed are based on the fair value of the collateral, less estimated costs to sell. Loans carried at fair value generally receive individual allocations of the allowance for credit losses in *2025* and *2026*. For collateral dependent loans, fair value is commonly based on recent real estate appraisals or on quoted sales price in certain instances. Appraisals *may* utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Adjustments to a quoted price are routinely made to factor in data that affect the marketability of the collateral. Such adjustments, in both instances, are usually significant and typically result in a Level *3* classification of the inputs for determining fair value. Non-real estate collateral *may* be valued using an appraisal, net book value per the borrower's financial statements, or aging reports, adjusted or discounted based on management's historical knowledge, changes in market conditions from the time of the valuation and management's expertise and knowledge of the client and client's business, resulting in a Level *3* fair value classification. These loans are evaluated on a quarterly basis and adjusted accordingly.

**Other Real Estate Owned**

Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair values are commonly based on recent real estate appraisals. These appraisals *may* use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level *3* classification of the inputs for determining fair value.

Appraisals for both collateral-dependent loans and other real estate owned are performed by certified general appraisers (for commercial and commercial real estate properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Appraisal Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On an annual basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what adjustments should be made to appraisals to arrive at fair value.

Assets measured at fair value on a recurring basis are summarized below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | ***Fair Value Measurements at March 31, 2026 Using:*** | ***Fair Value Measurements at March 31, 2026 Using:*** | ***Fair Value Measurements at March 31, 2026 Using:*** |
|  |  | *Quoted* |  |  |
|  |  | *Prices in* | *Significant* |  |
|  |  | *Active Markets* | *Other* | *Significant* |
|  |  | *for Identical* | *Observable* | *Unobservable* |
|  | *Carrying* | *Assets* | *Inputs* | *Inputs* |
| (In Thousands of Dollars) | *Value* | *(Level 1)* | *(Level 2)* | *(Level 3)* |
| Financial Assets |  |  |  |  |
| Investment securities available-for sale |  |  |  |  |
| U.S. Treasury and U.S. government sponsored entities | $94898 | $0 | $94898 | $0 |
| State and political subdivisions | 625956 | 0 | 625956 | 0 |
| Corporate bonds | 32073 | 0 | 31099 | 974 |
| Mortgage-backed securities-residential | 552731 | 0 | 552731 | 0 |
| Collateralized mortgage obligations | 176660 | 0 | 176660 | 0 |
| Small Business Administration | 1880 | 0 | 1880 | 0 |
| Total investment securities | $1484198 | $0 | $1483224 | $974 |
| Equity securities | 876 | 876 | 0 | 0 |
| Loans held for sale | 1919 | 0 | 1919 | 0 |
| Interest rate swaps | 958 | 0 | 958 | 0 |
| Interest rate lock commitments | 52 | 0 | 52 | 0 |
| Forward sales contract | 51 | 0 | 51 | 0 |
| Financial Liabilities |  |  |  |  |
| Interest rate swaps | 958 | 0 | 958 | 0 |
| Fair value hedge derivative | 324 | 0 | 324 | 0 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *28*

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | ***Fair Value Measurements at December 31, 2025 Using:*** | ***Fair Value Measurements at December 31, 2025 Using:*** | ***Fair Value Measurements at December 31, 2025 Using:*** |
|  |  | *Quoted* |  |  |
|  |  | *Prices in* | *Significant* |  |
|  |  | *Active Markets* | *Other* | *Significant* |
|  |  | *for Identical* | *Observable* | *Unobservable* |
|  | *Carrying* | *Assets* | *Inputs* | *Inputs* |
| (In Thousands of Dollars) | *Value* | *(Level 1)* | *(Level 2)* | *(Level 3)* |
| Financial Assets |  |  |  |  |
| Investment securities available-for sale |  |  |  |  |
| U.S. Treasury and U.S. government sponsored entities | $95295 | $0 | $95295 | $0 |
| State and political subdivisions | 503697 | 0 | 503697 | 0 |
| Corporate bonds | 13045 | 0 | 11827 | 1218 |
| Mortgage-backed securities-residential | 547134 | 0 | 547134 | 0 |
| Collateralized mortgage obligations | 182216 | 0 | 182216 | 0 |
| Small Business Administration | 2070 | 0 | 2070 | 0 |
| Total investment securities | 1343457 | 0 | 1342239 | 1218 |
| Equity securities | 370 | 370 | 0 | 0 |
| Loans held for sale | 1516 | 0 | 1516 | 0 |
| Interest rate swaps | 911 | 0 | 911 | 0 |
| Interest rate lock commitments | 71 | 0 | 71 | 0 |
| Financial Liabilities |  |  |  |  |
| Interest rate swaps | 911 | 0 | 911 | 0 |
| Forward sales contract | 15 | 0 | 15 | 0 |
| Fair value hedge derivative | 529 | 0 | 529 | 0 |

---

There were *no* significant transfers between Level *1* and Level *2* during the periods presented above.

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level *3*):

---

| | | |
|:---|:---|:---|
|  | ***Three Months ended*** | ***Three Months ended*** |
|  | ***March 31,*** | ***March 31,*** |
| (In Thousands of Dollars) | *2026* | *2025* |
| Beginning Balance | $1218 | $1409 |
| Transfers between levels | 0 | 0 |
| Acquired and/or purchased | 0 | 0 |
| Discount accretion (premium amortization) | 4 | 14 |
| Repayments, calls and maturities | (250) | 0 |
| Changes in unrealized gains (losses) | 2 | (11) |
| Ending Balance | $974 | $1412 |

---

Assets measured at fair value on a non-recurring basis are summarized below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | ***Fair Value Measurements at March 31, 2026 Using:*** | ***Fair Value Measurements at March 31, 2026 Using:*** | ***Fair Value Measurements at March 31, 2026 Using:*** |
|  |  | *Quoted* |  |  |
|  |  | *Prices in* | *Significant* |  |
|  |  | *Active Markets* | *Other* | *Significant* |
|  |  | *for Identical* | *Observable* | *Unobservable* |
|  | *Carrying* | *Assets* | *Inputs* | *Inputs* |
| (In Thousands of Dollars) | *Value* | *(Level 1)* | *(Level 2)* | *(Level 3)* |
| Financial Assets |  |  |  |  |
| Collateral dependent loans |  |  |  |  |
| Commercial real estate |  |  |  |  |
| Owner occupied | $1964 | $0 | $0 | $1964 |
| Non-owner occupied | 11196 | 0 | 0 | 11196 |
| Farmland | 1558 | 0 | 0 | 1558 |
| Commercial |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commercial and industrial | 8161 | 0 | 0 | 8161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Agricultural | 7 | 0 | 0 | 7 |
| Residential real estate |  |  |  |  |
| 1–4 family residential | 97 | 0 | 0 | 97 |
| Home equity lines of credit | 208 | 0 | 0 | 208 |
| Mortgage servicing rights | 179 | 0 | 179 | 0 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *29*

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| | | | | |
|:---|:---|:---|:---|:---|
|  |  | ***Fair Value Measurements at December 31, 2025 Using:*** | ***Fair Value Measurements at December 31, 2025 Using:*** | ***Fair Value Measurements at December 31, 2025 Using:*** |
|  |  | *Quoted* |  |  |
|  |  | *Prices in* | *Significant* |  |
|  |  | *Active Markets* | *Other* | *Significant* |
|  |  | *for Identical* | *Observable* | *Unobservable* |
|  | *Carrying* | *Assets* | *Inputs* | *Inputs* |
| (In Thousands of Dollars) | *Value* | *(Level 1)* | *(Level 2)* | *(Level 3)* |
| Financial Assets |  |  |  |  |
| Collateral dependent loans |  |  |  |  |
| Commercial real estate |  |  |  |  |
| Non-owner occupied | $7626 | $0 | $0 | $7626 |
| Farmland | 1558 | 0 | 0 | 1558 |
| Commercial and industrial |  |  |  |  |
| Commercial and industrial | 2137 | 0 | 0 | 2137 |
| Residential real estate |  |  |  |  |
| 1–4 family residential | 295 | 0 | 0 | 295 |
| Home equity lines of credit | 302 | 0 | 0 | 302 |
| Mortgage servicing rights | 988 | 0 | 988 | 0 |

---

The following table presents quantitative information about Level *3* fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods ended *March 31, 2026* and *December 31, 2025*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | *Range* |
|  |  | *Valuation* | *Unobservable* | *(Weighted* |
| **March 31, 2026** | *Fair value* | *Technique(s)* | *Input(s)* | *Average)* |
| Collateral dependent loans |  |  |  |  |
| Commercial real estate | $14718 | Income Approach | Adjustment for difference between cap rates of comparable sales | (63.33%) - 46.49% 8.56% |
| Commercial | 8168 | *Quoted price for collateral* | *Offer Price* | 7.58% |
| Residential | 305 | Sales comparison | Adjustment for differences between comparable sales | (20.40%) - 14.44% (4.92%) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  |  | *Range* |
|  |  | *Valuation* | *Unobservable* | *(Weighted* |
| **December 31, 2025** | *Fair value* | *Technique(s)* | *Input(s)* | *Average)* |
| Collateral dependent loans |  |  |  |  |
| Commercial real estate | $9184 | Income approach | Adjustment for difference between cap rates of comparable sales | (57.94%) - 41.77% 15.31% |
| Commercial | 2137 | *Quoted price for collateral* | *Offer Price* | 9.14% |
| Residential | 597 | Sales comparison | Adjustment for differences between comparable sales | (11.58%) - 14.18% (6.26%) |

---

The carrying amounts and estimated fair values of financial instruments *not* previously disclosed at *March 31, 2026* and *December 31, 2025* are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | ***Fair Value Measurements at March 31, 2026 Using:*** | ***Fair Value Measurements at March 31, 2026 Using:*** | ***Fair Value Measurements at March 31, 2026 Using:*** | ***Fair Value Measurements at March 31, 2026 Using:*** |
|  | *Carrying* |  |  |  |  |
| (In Thousands of Dollars) | *Amount* | *Level 1* | *Level 2* | *Level 3* | *Total* |
| Financial assets |  |  |  |  |  |
| Cash and cash equivalents | $186083 | $38220 | $147863 | $0 | $186083 |
| Restricted stock | 37788 | *n/a* | *n/a* | *n/a* | *n/a* |
| Loans, net | 4745380 | 0 | 0 | 4648787 | 4648787 |
| Financial liabilities |  |  |  |  |  |
| Deposits | 5921385 | 5004550 | 918094 | 0 | 5922644 |
| Short-term borrowings | 341000 | 0 | 341000 | 0 | 341000 |
| Long-term borrowings | 94108 | 0 | 89203 | 0 | 89203 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | | ***Fair Value Measurements at December 31, 2025 Using:*** | ***Fair Value Measurements at December 31, 2025 Using:*** | ***Fair Value Measurements at December 31, 2025 Using:*** | ***Fair Value Measurements at December 31, 2025 Using:*** |
|  | *Carrying* |  |  |  |  |
| (In Thousands of Dollars) | *Amount* | *Level 1* | *Level 2* | *Level 3* | *Total* |
| Financial assets |  |  |  |  |  |
| Cash and cash equivalents | $92357 | $20486 | $71871 | $0 | $92357 |
| Restricted stock | 29531 | *n/a* | *n/a* | *n/a* | *n/a* |
| Loans, net | 3267902 | 0 | 0 | 3190808 | 3190808 |
| Financial liabilities |  |  |  |  |  |
| Deposits | 4342778 | 3576017 | 768246 | 0 | 4344263 |
| Short-term borrowings | 281000 | 0 | 281000 | 0 | 281000 |
| Long-term borrowings | 86733 | 0 | 80998 | 0 | 80998 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *30*

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[**Table of Contents**](#toc)

**Goodwill and Intangible Assets:**

Goodwill associated with the Merger during the *first* quarter of *2026* and the Company's past acquisitions totaled $271.7 million and $167.5 million at *March 31, 2026* and *December 31, 2025*, respectively. The Company recorded $104.2 million in goodwill in the *first* quarter of *2026* as a result of the Merger. Impairment exists when a reporting unit's carrying value of goodwill exceeds its fair value, which is determined through an impairment test. Management performs goodwill impairment testing on an annual basis as of *September 30,* or whenever events or changes in circumstances indicate that the fair value of a reporting unit *may* be below its carrying value. As of *March 31, 2026, no* events or changes in circumstances indicated that the fair value of the reporting unit was below its carrying value. The Company will continue to monitor its goodwill for possible impairment.

**Acquired Intangible Assets** 

Acquired intangible assets were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***March 31, 2026*** | ***March 31, 2026*** | ***December 31, 2025*** | ***December 31, 2025*** |
|  | *Gross Carrying* | *Accumulated* | *Gross Carrying* | *Accumulated* |
| (In Thousands of Dollars) | *Amount* | *Amortization* | *Amount* | *Amortization* |
| Amortized intangible assets: |  |  |  |  |
| Customer relationship intangibles | $7975 | $(7285) | $7975 | $(7253) |
| Non-compete contracts | 457 | (436) | 457 | (435) |
| Trade name | 1131 | (499) | 1131 | (494) |
| Core deposit intangible | 51941 | (16472) | 32115 | (15645) |
| Total | $61504 | $(24692) | $41678 | $(23827) |

---

Aggregate amortization expense was $865,000 and $735,000 for the *three* month periods ended *March 31, 2026* and *2025,* respectively.

Estimated amortization expense for each of the next *five* periods and thereafter:

---

| | |
|:---|:---|
| 2026 (9 months) | $3585 |
| 2027 | 4667 |
| 2028 | 4656 |
| 2029 | 4648 |
| 2030 | 4365 |
| Thereafter | 14891 |
| Total | $36812 |

---

**Leases:**

The Company has operating leases for branch office locations, vehicles, land and certain office equipment such as printers and copiers. The leases have remaining lease terms of up to 16.3 years, some of which had options to extend the lease for up to 15 years. The right of use assets and lease liabilities were $11.1 million and $11.4 million as of *March 31, 2026*, respectively, and $7.9 million and $8.2 million at *December 31, 2025*, respectively. The right of use assets are included in other assets while the lease liabilities are included in other liabilities on the balance sheet.

Lease expense for the *three* month periods ended *March 31, 2026* and *2025* was $427,000 and $293,000, respectively. The weighted-average remaining lease term for all leases was 8.87 years as of *March 31, 2026*. The weighted-average discount rate was 3.75% for all leases as of *March 31, 2026*.

On *March 2, 2026,* the Company performed a valuation of Middlefield's leases to determine an initial right of use asset and lease liability in connection with the Merger. The Company recorded an initial right of use asset and lease liability of $3.5 million for these leases.

Maturities of lease liabilities are as follows as of *March 31, 2026*:

---

| | |
|:---|:---|
| 2026 (9 months) | $1490 |
| 2027 | 1892 |
| 2028 | 1749 |
| 2029 | 1499 |
| 2030 | 1249 |
| Thereafter | 5719 |
| Total Payments | 13598 |
| Less: lease liability expense | (2219) |
| Total | $11379 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *31*

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[**Table of Contents**](#toc)

**Derivative Financial Instruments:** 

***Interest Rate Swaps***

The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a variable rate loan while creating a fixed rate loan for the customer by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value of $105.5 million and fair value of $958,000 in other assets and $958,000 in other liabilities at *March 31, 2026*. At *December 31, 2025*, the Company had interest rate swaps associated with commercial loans with a notional value of $88.7 million and fair value of $911,000 in other assets and $911,000 in other liabilities. The interest rate swaps with both the customers and *third* parties are *not* designated as hedges under FASB ASC *815.* As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do *not* result in an impact to earnings; however, there *may* be fair value adjustments related to credit quality variations between counterparties, which *may* impact earnings as required by FASB ASC *820.*

There were no net gains or losses for interest rate swaps for the *three* month periods ended *March 31, 2026* and *2025*.

***Interest Rate Swap Designated as a Fair Value Hedge***

The Company has one interest rate swap with a notional amount of $100.0 million that was in place at both *March 31, 2026* and *December 31, 2025*. This swap is designated as a fair value hedge to mitigate the risk of further interest rate increases and the subsequent impact on the valuation of the Company's state and political subdivision municipal bond portfolio. The gross aggregate fair value of the swap at *March 31, 2026* is $(324,000) and is recorded as a $(211,000) mark to market adjustment in other liabilities and $(113,000) recorded to other liabilities for the accrued interest payable in the Consolidated Balance Sheet. At *December 31, 2025*, the gross aggregate fair value of the swap was $(529,000) and was recorded as a $(451,000) mark to market adjustment in other liabilities, and $(78,000) was recorded to other liabilities for the accrued interest payable in the Consolidated Balance Sheet. The Company expects the hedge to remain in effect for the remaining term of the swap, which matures *August 2026.* A summary of the interest rate swap designated as a fair value hedge is presented below:

---

| | | |
|:---|:---|:---|
| (In Thousands of Dollars) | ***March 31, 2026*** | ***December 31, 2025*** |
| Notional amount fair value hedge | $100000 | $100000 |
| Fixed pay rates | 4.35% | 4.35% |
| Variable SOFR receive rates | 3.68% | 3.87% |
| Remaining maturity (in years) | 0.3 | 0.6 |
| Fair value | $(324) | $(529) |

---

***Mortgage Banking Derivatives***

Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to *third*-party investors are considered derivatives. The Company enters into forward commitments for the future delivery of residential mortgage loans when the interest rate locks are committed in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are *not* designated in hedge relationships.

The net gains (losses) relating to non-designated derivative instruments used for risk management are included in Net Gains on Sale of Loans on the Consolidated Statements of Income and are summarized below for the quarters ended *March 31, 2026* and *March 31, 2025*:

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***March 31,*** | ***March 31,*** |
|  | ***2026*** | ***2025*** |
| Forward sales contracts | $66 | $(32) |
| Interest rate lock commitments | (18) | 36 |

---

The following table reflects the amount and fair value of mortgage banking derivatives included in the Consolidated Balance Sheets as of *March 31, 2026* and *December 31, 2025*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | ***March 31, 2026*** | ***March 31, 2026*** | ***December 31, 2025*** | ***December 31, 2025*** |
|  | ***Notional*** | ***Fair*** | ***Notional*** | ***Fair*** |
| (In Thousands of Dollars) | ***Amount*** | ***Value*** | ***Amount*** | ***Value*** |
| Included in other assets: |  |  |  |  |
| Forward sales contracts | $8250 | $51 | $0 | $0 |
| Interest rate lock commitments | 8686 | 52 | 6337 | 71 |
| Total included in other assets | $16936 | $103 | $6337 | $71 |
| Included in other liabilities: |  |  |  |  |
| Forward sales contracts | $0 | $0 | $5000 | $(15) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *32*

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[**Table of Contents**](#toc)

**Earnings Per Share:** 

The computation of basic and diluted earnings per share is shown in the following table:

---

| | | |
|:---|:---|:---|
|  | ***Three Months Ended*** | ***Three Months Ended*** |
|  | ***March 31,*** | ***March 31,*** |
|  | ***2026*** | ***2025*** |
| **Basic EPS** |  |  |
| Net income (In thousands of dollars) | $16264 | $13578 |
| Weighted average shares outstanding | 44650899 | 37380606 |
| **Basic earnings per share** | $0.36 | $0.36 |
| **Diluted EPS** |  |  |
| Net income (In thousands of dollars) | $16264 | $13578 |
| Weighted average shares outstanding for basic earnings per share | 44650899 | 37380606 |
| Dilutive effect of restricted stock awards | 223492 | 245877 |
| Weighted average shares for diluted earnings per share | 44874391 | 37626483 |
| **Diluted earnings per share** | $0.36 | $0.36 |

---

There were 63,398 restricted stock awards that were considered anti-dilutive for the *three* month period ended *March 31, 2026* and 119,258 restricted stock awards that were considered anti-dilutive for the *three* month period ended *March 31, 2025.*

**Stock Based Compensation:** 

In *April* of *2022,* the Company, with the approval of shareholders, created the *2022* Equity Incentive Plan (the *"2022* Plan"). The *2022* Plan permits the award of up to one million shares to the Company's directors and employees to attract and retain exceptional personnel, motivate performance and, most importantly, to help align the interests of the Company's executives with those of the Company's shareholders. The *2022* Plan replaced the *2017* Plan and the *2017* Plan has been sunset. There were 59,122 service time based share awards and 150,468 performance based share awards granted under the *2022* Plan during the *three* month period ended *March 31, 2026*, as shown in the table below. The actual number of performance based shares issued will depend on the relative performance of the Company's average return on equity compared to a group of peer companies over a three year vesting period, ending *December 31, 2028.* As of *March 31, 2026*, 142,675 shares were still available to be awarded from the *2022* Plan.

In *April 2026,* the Company, with approval of shareholders, approved the *2026* Equity Incentive Plan (the *"2026* Plan"). The *2026* Plan permits the award of up to one million shares to the Company's non-employee directors and employees. The *2026* Plan replaces the *2022* Plan; *no* further shares *may* be awarded under the *2022* Plan and any shares previously awarded under the *2022* Plan which are forfeited will *not* be available for reissuance.

The restricted stock awards were granted with a fair value price equal to the market price of the Company's common stock at the date of the grant. Expense recognized was $662,000 for the *three* months ended *March 31, 2026*. The expense recognized was $642,000 for the *three* months ended *March 31, 2025*. As of *March 31, 2026*, there was $2.1 million of total unrecognized compensation expense related to the nonvested shares granted under the *2022* Plan. The remaining cost is expected to be recognized over 2.9 years.

The following is the activity under the Plans during the *three* month period ended *March 31, 2026*.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | *Maximum* | *Weighted* | *Maximum* | *Weighted* |
|  | *Awarded* | *Average* | *Awarded* | *Average* |
|  | *Service* | *Grant Date* | *Performance* | *Grant Date* |
|  | *Units* | *Fair Value* | *Units* | *Fair Value* |
| Beginning balance - non-vested shares | 176915 | $13.77 | 269657 | $14.13 |
| Granted | 59122 | 13.12 | 150468 | 13.04 |
| Vested | (21534) | 13.56 | (75847) | 13.60 |
| Forfeited | (2500) | 14.06 | 0 | 0 |
| Ending balance - non-vested shares | 212003 | $13.55 | 344278 | $13.64 |

---

The following is the activity under the Plans during the *three* month period ended *March 31, 2025*.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | *Maximum* | *Weighted* | *Maximum* | *Weighted* |
|  | *Awarded* | *Average* | *Awarded* | *Average* |
|  | *Service* | *Grant Date* | *Performance* | *Grant Date* |
|  | *Units* | *Fair Value* | *Units* | *Fair Value* |
| Beginning balance - non-vested shares | 231430 | $14.35 | 222920 | $14.57 |
| Granted | 35566 | 14.29 | 95404 | 14.47 |
| Vested | (68839) | 14.41 | (41008) | 14.32 |
| Forfeited | 0 | 0 | 0 | 0.00 |
| Ending balance - non-vested shares | 198157 | $13.33 | 277316 | $14.14 |

---

The 97,381 shares that vested during the *three* month period ended *March 31, 2026* had a weighted average fair value of $13.59 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *33*

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[**Table of Contents**](#toc)

**Other Comprehensive Income (Loss):**

The following tables represent the changes in accumulated other comprehensive income (loss) by component, net of tax, for the *three* month periods ended *March 31, 2026* and *2025*.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | *Reclassification* |  |  |
|  | *Net unrealized* | *adjustment for* |  |  |
|  | *holding (losses)* | *(gains) losses* |  |  |
|  | *gains on available* | *realized in income* | *Change in funded status* |  |
| (In Thousands of Dollars) | *for sale securities* | *on fair value hedge* | *of post-retirement plan* | *Total* |
| **Balance December 31, 2025** | $(143597) | $(476) | $(2) | $(144075) |
| Other comprehensive (loss) before reclassification | (6270) | 0 | 0 | (6270) |
| Amounts reclassified from accumulated other comprehensive income | 0 | 190 | 0 | 190 |
| Net current period other comprehensive (loss) income | (6270) | 190 | 0 | (6080) |
| **Balance March 31, 2026** | $(149867) | $(286) | $(2) | $(150155) |
| **Balance December 31, 2024** | $(192860) | $(403) | $(2) | $(193265) |
| Other comprehensive income before reclassification | 15096 | 0 | 0 | 15096 |
| Amounts reclassified from accumulated other comprehensive income (loss) | 1054 | (186) | 0 | 868 |
| Net current period other comprehensive income (loss) | 16150 | (186) | 0 | 15964 |
| **Balance March 31, 2025** | $(176710) | $(589) | $(2) | $(177301) |

---

Amounts reclassified out of each component of accumulated other comprehensive income (loss) were *not* material for the *three* month periods ended *March 31, 2026* and *2025*.

**Regulatory Capital Matters:**

Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action by regulators that, if undertaken, could have a direct material effect on the financial statements. Management believes that as of *March 31, 2026*, the Company and the Bank meet all capital adequacy requirements to which they are subject.

The FDIC and other federal banking regulators revised the risk-based capital requirements applicable to financial holding companies and insured depository institutions, including the Company and the Bank, to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision ("Basel III").

The common equity tier *1* capital, tier *1* capital and total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. The leverage ratio is calculated by dividing tier *1* capital by adjusted average total assets.

Basel III limits capital distributions and certain discretionary bonus payments if the banking organization does *not* hold a "capital conservation buffer" consisting of 2.5% of common equity tier *1* capital, tier *1* capital and total capital to risk-weighted assets in addition to the amount necessary to meet minimum risk-based capital requirements. Excluding the additional buffer, Basel III requires the Company and the Bank to maintain (i) a minimum ratio of common equity tier *1* capital to risk-weighted assets of at least 4.5%, (ii) a minimum ratio of tier *1* capital to risk-weighted assets of at least 6.0%, (iii) a minimum ratio of total capital to risk-weighted assets of at least 8.0% and (iv) a minimum leverage ratio of at least 4.0%.

Prompt corrective action regulations provide *five* classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are *not* used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At *March 31, 2026* and *December 31, 2025*, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are *no* conditions or events since that notification that management believes have changed the institution's category.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *34*

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Actual and required capital amounts and ratios, which do *not* include the capital conservation buffer, are presented below at *March 31, 2026* and *December 31, 2025*:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | *To be Well Capitalized* | *To be Well Capitalized* |
|  |  |  | *Requirement For Capital* | *Requirement For Capital* | *Under Prompt Corrective* | *Under Prompt Corrective* |
|  | *Actual* | *Actual* | *Adequacy Purposes:* | *Adequacy Purposes:* | *Action Provisions:* | *Action Provisions:* |
|  | *Amount* | *Ratio* | *Amount* | *Ratio* | *Amount* | *Ratio* |
| **March 31, 2026** |  |  |  |  |  |  |
| Common equity tier 1 capital ratio |  |  |  |  |  |  |
| Consolidated | $616805 | 11.70% | $237213 | 4.5% | *N/A* | *N/A* |
| Bank | 673881 | 12.67% | 239410 | 4.5% | $345815 | 6.5% |
| Total risk based capital ratio |  |  |  |  |  |  |
| Consolidated | 771371 | 14.63% | 421712 | 8.0% | *N/A* | *N/A* |
| Bank | 730447 | 13.73% | 425619 | 8.0% | 532023 | 10.0% |
| Tier 1 risk based capital ratio |  |  |  |  |  |  |
| Consolidated | 642805 | 12.19% | 316284 | 6.0% | *N/A* | *N/A* |
| Bank | 673881 | 12.67% | 319214 | 6.0% | 425619 | 8.0% |
| Tier 1 leverage ratio |  |  |  |  |  |  |
| Consolidated | 642805 | 11.21% | 229446 | 4.0% | *N/A* | *N/A* |
| Bank | 673881 | 11.73% | 229839 | 4.0% | 287299 | 5.0% |
| **December 31, 2025** |  |  |  |  |  |  |
| Common equity tier 1 capital ratio |  |  |  |  |  |  |
| Consolidated | $448549 | 12.02% | $167878 | 4.5% | *N/A* | *N/A* |
| Bank | 491553 | 13.20% | 167539 | 4.5% | $242000 | 6.5% |
| Total risk based capital ratio |  |  |  |  |  |  |
| Consolidated | 576703 | 15.46% | 298450 | 8.0% | *N/A* | *N/A* |
| Bank | 529707 | 14.23% | 297846 | 8.0% | 372308 | 10.0% |
| Tier 1 risk based capital ratio |  |  |  |  |  |  |
| Consolidated | 466549 | 12.51% | 223838 | 6.0% | *N/A* | *N/A* |
| Bank | 491553 | 13.20% | 223385 | 6.0% | 297846 | 8.0% |
| Tier 1 leverage ratio |  |  |  |  |  |  |
| Consolidated | 466549 | 8.92% | 209204 | 4.0% | *N/A* | *N/A* |
| Bank | 491553 | 9.42% | 208672 | 4.0% | 260840 | 5.0% |

---

**Segment Information:**

The Company's reportable segments are determined by the Chief Financial Officer, who is the designated chief operating decision maker, based upon information provided about the Company's products and services offered, primarily distinguished between the banking and trust operations. The segments are also distinguished by the level of information provided to the chief operating decision maker, who uses such information to review performance of various components of the business, which are then aggregated if operating performance, products/services, and customers are similar. The chief operating decision maker uses revenue streams to evaluate product pricing and significant expenses to assess performance of each segment to evaluate compensation of certain employees. Segment pretax profit is used to assess the performance of the banking segment by monitoring the net interest margin and non-interest expenses. Segment pretax profit is also used to assess the performance of the trust segment by monitoring trust service fees, retirement plan consulting fees and non-interest expenses. Loans and investments provide the significant revenues in the banking operation, while trust service fees and retirement plan consulting fees provide the significant revenues in trust operations. Interest expense, provisions for credit losses and payroll provide the significant expenses in the banking operation, while payroll provides the significant expense in the trust segment. All operations are domestic.

Accounting policies for segments are the same as those described in the Financial Statement Notes. Income taxes are calculated on operating income. Transactions among segments are made at fair value.

Significant segment totals are reconciled to the financial statements as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | *Trust* | *Bank* | *Consolidated* |
| (In Thousands of Dollars) | *Segment* | *Segment* | *Segment totals* |
| **March 31, 2026** |  |  |  |
| Total assets for reportable segments | $17678 | $7215696 | $7233374 |
| Eliminations and other |  |  | (57898) |
| Total consolidated assets |  |  | $7175476 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | *Trust* | *Bank* | *Consolidated* |
| (In Thousands of Dollars) | *Segment* | *Segment* | *Segment totals* |
| **December 31, 2025** |  |  |  |
| Total assets for reportable segments | $17000 | $5230175 | $5247175 |
| Eliminations and other |  |  | (1305) |
| Total consolidated assets |  |  | $5245870 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *35*

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---

| | | | |
|:---|:---|:---|:---|
|  | *Trust* | *Bank* | *Consolidated* |
| (In Thousands of Dollars) | *Segment* | *Segment* | *Segment totals* |
| **For Three Months Ended March 31, 2026** |  |  |  |
| Interest income - loans including fees | $0 | $55109 | $55109 |
| Interest income - investments | 0 | 10544 | 10544 |
| Trust fees | 3030 | 0 | 3030 |
| Retirement plan consulting fees | 886 | 0 | 886 |
| Total consolidated segment revenues | 3916 | 65653 | 69569 |
| Reconciliation of revenue |  |  |  |
| Other revenues |  |  | 11236 |
| Total consolidated revenues |  |  | 80805 |
| Interest expense - deposits | 0 | 20440 | 20440 |
| Interest expense - borrowings | 0 | 4109 | 4109 |
| Credit for credit losses and unfunded loans | 0 | (1034) | (1034) |
| Payroll expenses | 1679 | 16810 | 18489 |
| Total consolidated segment expenses | 1679 | 40325 | 42004 |
| Segment profit | 2237 | 25328 | 27565 |
| Reconciliation of expenses |  |  |  |
| Other expenses \* |  |  | 18829 |
| Total consolidated expenses |  |  | 60833 |
| Total consolidated income before taxes |  |  | $19972 |
| Other segment disclosures |  |  |  |
| Occupancy and equipment | 134 | 4961 | 5095 |
| Intangible amortization | 14 | 851 | 865 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | *Trust* | *Bank* | *Consolidated* |
| (In Thousands of Dollars) | *Segment* | *Segment* | *Segment totals* |
| **For Three Months Ended March 31, 2025** |  |  |  |
| Interest income - loans including fees | $0 | $46707 | $46707 |
| Interest income - investments | 0 | 9514 | 9514 |
| Trust fees | 2641 | 0 | 2641 |
| Retirement plan consulting fees | 798 | 0 | 798 |
| Total consolidated segment revenues | 3439 | 56221 | 59660 |
| Reconciliation of revenue |  |  |  |
| Other revenues |  |  | 8126 |
| Total consolidated revenues |  |  | 67786 |
| Interest expense - deposits | 0 | 19717 | 19717 |
| Interest expense - borrowings | 0 | 3393 | 3393 |
| Provision for credit losses and unfunded loans | 0 | (204) | (204) |
| Payroll expenses | 1474 | 14681 | 16155 |
| Total consolidated segment expenses | 1474 | 37587 | 39061 |
| Segment profit | 1965 | 18634 | 20599 |
| Reconciliation of expenses |  |  |  |
| Other expenses \* |  |  | 12371 |
| Total consolidated expenses |  |  | 51432 |
| Total consolidated income before taxes |  |  | $16354 |
| Other segment disclosures |  |  |  |
| Occupancy and equipment | 143 | 3983 | 4126 |
| Intangible amortization | 23 | 712 | 735 |

---

\* The Bank segment includes Farmers National Insurance and Farmers of Canfield Investment Co.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *36*

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**Short-term borrowings:**

The Bank had short-term advances from the Federal Home Loan Bank ("FHLB") of $341.0 million at *March 31, 2026*, and $281.0 million at *December 31, 2025*. The interest rate on these borrowings was 3.76% at the period ended *March 31, 2026*, and 3.76% at the period ended *December 31, 2025*. These short-term borrowings were borrowed using the FHLB's short term repurchase advance program, as these products allow the most flexibility to meet the Bank's varying liquidity needs. These FHLB advances were secured by pledged assets which are described in the following Long-Term Borrowings footnote.

The Bank has access to a line of credit for $25.0 million at a major domestic bank that is below prime rate. The line and terms are periodically reviewed by the lending bank and is generally subject to withdrawal at their discretion. There were no outstanding borrowings under this line at *March 31, 2026* or *December 31, 2025*.

**Long-term borrowings:**

There were no long-term advances from the FHLB at *March 31, 2026* or *December 31, 2025*.

Long-term and short-term FHLB advances are secured by a blanket pledge of residential mortgage, commercial real estate, and multi-family loans totaling $2.4 billion for the period ending *March 31, 2026* and $1.8 billion for the period ended *December 31, 2025*. Based on this collateral, the Bank is eligible to borrow an additional $788.9 million at *March 31, 2026*.

In *November 2021,* the Company completed the issuance of $75.0 million aggregate principal amount, fixed-to-floating rate subordinated notes due *December 15, 2031,* in a private offering exempt from the registration requirements under the Securities Act of *1933,* as amended. The notes carry a fixed rate of 3.125% for *five* years at which time they will convert to a floating rate based on the *three*-month term secured overnight funding rate, plus a spread of 220 basis points. The net proceeds from the sale were approximately $73.8 million, after deducting the offering expenses. The Company's intent was to use the proceeds from the sale for general corporate purposes, which *may* include, without limitation, providing capital to support its growth organically or through acquisitions, in financing investments, capital expenditures, repurchasing its common shares and for investments in the Bank as regulatory capital. The subordinated debentures are included in Total Capital under current regulatory guidelines and interpretations.

In *August 2024,* the Company bought back and retired $3 million of the outstanding subordinated notes. The Company *may,* at its option, beginning *December 15, 2026,* redeem additional portions of the notes, in whole or in part, from time to time, subject to certain conditions.

On *March 2, 2026,* the Company completed its acquisition of Middlefield, which included the assumption of Floating Rate Junior Subordinated Debt Securities due *January 30, 2037 (*the "junior subordinated debt securities") at an acquisition-date fair value of $7.2 million, held in a wholly-owned statutory trust whose common securities were wholly-owned by Middlefield. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by *third*-party investors. The securities bear interest at a rate of 1.67% over the *3*-month term SOFR rate that includes an additional spread adjustment of 26 basis points. The rate at *March 31, 2026* was 5.60%.

On *November 1, 2021,* the Company completed its acquisition of Cortland, which included the assumption of Floating Rate Junior Subordinated Debt Securities due *September 15, 2037 (*the "junior subordinated debt securities") at an acquisition-date fair value of $4.3 million, held in a wholly-owned statutory trust whose common securities were wholly-owned by Cortland. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by *third*-party investors. The securities bear interest at a rate of 1.45% over the *3*-month term SOFR rate that includes an additional spread adjustment of 26 basis points. The rate at *March 31, 2026* was 5.39% and at *December 31, 2025* the rate was 5.43%.

On *January 7, 2020,* the Company completed its acquisition of Maple Leaf, which included the assumption of Floating Rate Junior Subordinated Debt Securities due *December 15, 2036 (*the "junior subordinated debt securities") held in a wholly-owned statutory trust whose common securities were wholly-owned by Maple Leaf. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by *third*-party investors. The securities bear interest at a rate of 1.80% over the *3*-month term SOFR rate that includes an additional spread adjustment of 26 basis points. The rate at *March 31, 2026* was 5.74% and at *December 31, 2025* the rate was 5.78%.

In *2015,* the Company completed its acquisition of National Bancshares Corporation, which included the assumption of Floating Rate Junior Subordinated Debt Securities due *June 15, 2035 (*the "junior subordinated debt securities") held in a wholly-owned statutory trust, TSEO Statutory Trust I. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by *third*-party investors. The securities bear interest at a rate of 1.70% over the *3*-month term SOFR rate that includes an additional spread adjustment of 26 basis points. The rate at *March 31, 2026* was 5.64% and at *December 31, 2025* the rate was 5.68%.

In all of the above instances, the Company *may* redeem the junior subordinated debentures at any quarter-end, in whole, or in part, at par. This type of subordinated debenture qualifies as Tier *1* capital for regulatory purposes in determining and evaluating the Company's capital adequacy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *37*

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A summary of all junior subordinated debentures issued by the Company to affiliates and subordinated debentures follows. For the junior subordinated debentures, these amounts represent the par value of the obligations owed to these affiliates, including the Company's equity interest in the trusts along with any unamortized fair value marks. For the subordinated debentures, these amounts represent the par value less the remaining deferred offering expense associated with the issuance of the debentures. Balances were as follows at *March 31, 2026* and *December 31, 2025*:

---

| | | |
|:---|:---|:---|
| (In Thousands of Dollars) | ***March 31, 2026*** | ***December 31, 2025*** |
| TSEO Statutory Trust I | $2631 | $2619 |
| Maple Leaf Financial Statutory Trust II | 8243 | 8187 |
| Cortland Statutory Trust I | 4506 | 4492 |
| Middlefield Statutory Trust I | 7223 | 0 |
| Total junior subordinated debentures owed to unconsolidated subsidiary trusts | $22603 | $15298 |
| Subordinated Debentures | $71505 | $71435 |
| Total long-term borrowings | $94108 | $86733 |

---

**Tax Credit Investments:**

The Company invests in qualified affordable housing projects, as well as solar investment tax credits.

At *March 31, 2026* and *December 31, 2025*, the balance of the investment for qualified affordable housing projects was $29 million and $26.0 million, respectively. Total unfunded commitments related to the investments in qualified affordable housing projects totaled $14.1 million and $13.2 million at *March 31, 2026* and *December 31, 2025*. The Company expects to complete the fulfillment of these commitments during the year ending *2040.*

In the *first* quarters ended *March 31, 2026* and *March 31, 2025*, the Company recognized amortization expense of $537,000 and $473,000, respectively, from its investment in qualified affordable housing projects. This amortization expense was included within income tax expense on the consolidated statements of income.

Additionally, during the *first* quarters ended *March 31, 2026* and *March 31, 2025*, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $661,000 and $564,000, respectively. The qualified affordable housing investment credits are included in the net changes in other assets and liabilities in the cash flows from operating activities in the consolidated statements of cash flows. During the *three* month periods ended *March 31, 2026* and *March 31, 2025*, the Company did not incur impairment losses related to its investment in affordable housing tax credits.

In the *first* quarter of *2025,* the Company began investing in solar investment tax credits. At *March 31, 2026*, and *December 31, 2025*, the balance of the investment was $2.9 million and $3.3 million, respectively. The solar tax investment was fully funded at *March 31, 2026*. The total unfunded commitments related to the investments in solar investment tax credits totaled $1.7 million at *December 31, 2025*.

In the *first* quarter ended *March 31, 2026*, the Company recognized amortization expense of $569,000 from its investment in solar investment tax credits. This amortization expense was included within income tax expense on the consolidated statements of income. In the *three* month period ended *March 31, 2025*, the Company did *not* recognize amortization expense from its investment in solar investment tax credits.

Additionally, during the *first* quarter ended *March 31, 2026,* the Company recognized tax credits and other benefits from its investment in solar investment tax credits of $730,000. The solar investment tax credits are included in the net changes in other assets and liabilities in the cash flows from operating activities in the consolidated statements of cash flows. In the *three* month period ended *March 31, 2025*, the Company did *not* recognize tax credits and other benefits from its investment in solar investment tax credits. During the *first* quarters ended *March 31, 2026* and *March 31, 2025*, the Company did *not* incur impairment losses related to its investment in solar investment tax credits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; *38*

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**Item 2. Management**'**s Discussion and Analysis of Financial Condition and Results of Operations** 

**Cautionary Note Regarding Forward Looking Statements** 

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are not statements of historical fact, but rather statements based on the Company's current expectations, beliefs and assumptions regarding the future of Farmers' business, future plans and strategies, projections, anticipated events and trends, its intended results and future performance, the economy and other future conditions. Forward-looking statements are preceded by terms such as "will," "would," "should," "could," "may," "expect," "estimate," "believe," "anticipate," "intend," "plan," "project," or variations of these words, or similar expressions. Forward-looking statements are not a guarantee of future performance and actual future results could differ materially from those contained in forward-looking information. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Numerous uncertainties, risks, and changes could cause or contribute to Farmers' actual results, performance, and achievements to be materially different from those expressed or implied by the forward-looking statements.

Factors that could cause or contribute to such differences include, without limitation, risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission (the "Commission"), including without limitation, the risk factors disclosed in Item 1A, "Risk Factors," in the Company's 2025 Form 10-K, as updated in Item 1A, "Risk Factors," in this Quarterly Report on Form 10-Q.

Many of these factors are beyond the Company's ability to control or predict, and readers are cautioned not to put undue reliance on those forward-looking statements. The following, which is not intended to be an all-encompassing list, summarizes several factors that could cause the Company's actual results to differ materially from those anticipated or expected in any forward-looking statement:

• general economic conditions in markets where the Company conducts business, which could materially impact credit quality trends;

• the length and extent of the economic impacts of the ongoing conflict with Iran;

• the length and extent of U.S. and foreign country tariff policies and their impact on global, national, and regional economic conditions;

• actions by the Federal Reserve Board, U.S. Treasury and other government agencies, including those that impact money supply, market interest rates and inflation;

• disruptions in the mortgage and lending markets and significant or unexpected fluctuations in interest rates related to governmental responses to inflation, including financial stimulus packages and interest rate changes;

• general business conditions in the banking industry;

• the regulatory environment;

• general fluctuations in interest rates;

• demand for loans in the market areas where the Company conducts business;

• rapidly changing technology and evolving banking industry standards;

• competitive factors, including increased competition with regional and national financial institutions;

• Farmers' ability to attract, recruit and retain skilled employees; and

• new service and product offerings by competitors and price pressures.

Other factors not currently anticipated may also materially and adversely affect the Company's results of operations, cash flows and financial position. There can be no assurance that future results will meet expectations. While the Company believes that the forward-looking statements in the presentation are reasonable, you should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. The Company does not undertake, and expressly disclaims, any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.

**Results of Operations.** The following is a comparison of selected financial ratios and other results at or for the three month periods ended March 31, 2026 and 2025:

---

| | | |
|:---|:---|:---|
|  | **At or for the Three Months Ended** | **At or for the Three Months Ended** |
|  | **March 31,** | **March 31,** |
| (In Thousands, except Per Share Data) | **2026** | **2025** |
| Total assets | $7175476 | $5157040 |
| Net income | $16264 | $13578 |
| Diluted earnings per share | $0.36 | $0.36 |
| Return on average assets (annualized) | 1.11% | 1.06% |
| Return on average equity (annualized) | 11.55% | 13.12% |
| Dividends to net income | 39.55% | 47.10% |
| Net loans to assets | 66.13% | 62.36% |
| Loans to deposits | 81.06% | 72.55% |

---

<u>Net Income.</u> The Company reported net income of $16.3 million, or $0.36 per diluted share, for the quarter ended March 31, 2026 compared to $13.6 million, or $0.36 per diluted share, for the quarter ended March 31, 2025. Net income for the first quarter of 2026 included a charge of $4.0 million related to the Merger with Middlefield and the conversion of our core system to Jack Henry. The new core platform contract will save the Company approximately $2.0 million per year, or $0.04 in diluted earnings per share, once the conversion is complete in August of 2026.

<u>Net Interest Income</u>. The following schedule details the various components of net interest income for the periods indicated. All asset yields are calculated on a tax-equivalent basis where applicable. Security yields are based on amortized cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39

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**Average Balance Sheets and Related Yields and Rates**

(Dollar Amounts in Thousands)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | AVERAGE |  |  | AVERAGE |  |  |
|  | BALANCE | INTEREST | RATE (1) | BALANCE | INTEREST | RATE (1) |
| **EARNING ASSETS** |  |  |  |  |  |  |
| Loans (2) | $3811021 | $55214 | 5.80**%** | $3261908 | $46810 | 5.74% |
| Taxable securities | 1177183 | 7773 | 2.64% | 1135580 | 7096 | 2.50% |
| Tax-exempt securities (2) | 403587 | 3415 | 3.38% | 377078 | 2990 | 3.17% |
| Other investments | 51720 | 761 | 5.89% | 44170 | 541 | 4.90% |
| Federal funds sold and other | 102808 | 681 | 2.65% | 73575 | 510 | 2.77% |
| TOTAL EARNING ASSETS | 5546319 | 67844 | 4.89% | 4892311 | 57947 | 4.74% |
| Nonearning assets | 315777 |  |  | 226456 |  |  |
| TOTAL ASSETS | $5862096 |  |  | $5118767 |  |  |
| **INTEREST-BEARING LIABILITIES** |  |  |  |  |  |  |
| Time deposits | $811760 | $6629 | 3.27% | $733406 | $6632 | 3.62% |
| Brokered time deposits | 0 | 0 | 0.00% | 143393 | 1538 | 4.29% |
| Savings deposits | 1490444 | 6507 | 1.75% | 1115259 | 4012 | 1.44% |
| Demand deposits - interest bearing | 1447299 | 7304 | 2.02% | 1377522 | 7535 | 2.19% |
| Total interest-bearing deposits | 3749503 | 20440 | 2.18% | 3369580 | 19717 | 2.34% |
| Short term borrowings | 333056 | 3135 | 3.77% | 218444 | 2417 | 4.43% |
| Long term borrowings | 89218 | 974 | 4.37% | 86209 | 976 | 4.53% |
| Total borrowed funds | 422274 | 4109 | 3.89% | 304653 | 3393 | 4.45% |
| TOTAL INTEREST-BEARING LIABILITIES | 4171777 | 24549 | 2.35% | 3674233 | 23110 | 2.52% |
| **NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |  |  |  |  |
| Demand deposits - noninterest bearing | 1102395 |  |  | 977619 |  |  |
| Other liabilities | 24876 |  |  | 52894 |  |  |
| Stockholders' equity | 563048 |  |  | 414021 |  |  |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5862096 |  |  | $5118767 |  |  |
| Net interest income and interest rate spread |  | $43295 | 2.54% |  | $34837 | 2.22% |
| Net interest margin |  |  | 3.12% |  |  | 2.85% |

---

(1) Rates are calculated on an annualized basis.

(2) Interest on certain tax-exempt loans and tax-exempt securities in 2026 and 2025 is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%

<u>Net Interest Income.</u> Net interest income for the three months ended March 31, 2026, was $42.6 million compared to $34.2 million for the three months ended March 31, 2025. The Merger with Middlefield and a 27 basis point increase in the net interest margin were the primary reasons for this increase.

The net interest margin for the three-month period ended March 31, 2026, was 3.12% compared to 2.85% for the same period in 2025. Interest-earning asset yields increased 15 basis points in the first quarter of 2026 compared to the first quarter of 2025 while the cost of interest-bearing liabilities decreased 17 basis points when comparing these two periods. This decrease in interest-bearing liabilities resulted from a reduction in deposit costs of 18 basis points and a 56 basis point reduction in costs on borrowings rates in comparing the first quarter of 2025 to the first quarter of 2026.

<u>Provision for Credit Losses and Provision for Unfunded Loans.</u> The provision for credit losses and unfunded loans was a benefit of $1.0 million for the three months ended March 31, 2026, compared to a benefit of $204,000 for the three months ended March 31, 2025. The provision in the first quarter of 2026 was positively impacted by improvements in qualitative factors in the Company's CECL model.

<u>Noninterest Income.</u> Noninterest income for the first quarter of 2026 was $13.7 million compared to $10.5 million for the first quarter of 2025. The increase was driven by the Middlefield acquisition, growth in the wealth lines of business and lower losses on the sale of securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 40

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Service charges on deposit accounts increased $208,000 to $2.0 million for the first quarter of 2026 compared to $1.8 million for the first quarter in 2025 primarily as a result of the Merger. Bank owned life insurance income increased $682,000 during the first quarter of 2026 to $1.5 million compared to $810,000 in the first quarter of 2025. Death claims were higher by $416,000 in 2026 compared to 2025 and the addition of Middlefield was primarily responsible for the remaining difference. Trust fees increased to $3.0 million at March 31, 2026, from $2.6 million at March 31, 2025. The increase was due to continued growth in the business unit. Insurance agency commissions were $1.7 million both in the first quarter of 2026 and 2025. Losses on the sale of securities totaled $18,000 in the first quarter of 2026 compared to losses on the sale of securities of $1.3 million during the first quarter of 2025. The Company restructured $23.8 million of securities at the end of the first quarter of 2025 resulting in the loss realized on the sale. Retirement plan consulting fees increased slightly to $886,000 in the first quarter of 2026 from $798,000 in the first quarter of 2025. Investment commissions grew $342,000 to $871,000 in the first quarter of 2026 compared to $529,000 in the first quarter of 2025. The Company has a strong sales team in this line of business and is looking to grow with deeper penetration into newer markets. Other mortgage banking income was $477,000 in the first quarter of 2026 compared to $147,000 in the first quarter of 2025. This increase was primarily due to the Company recovering $303,000 of mortgage servicing rights impairment in the first quarter of 2026. Debit card income grew from $1.9 million in the first quarter of 2025 to $2.0 million in the first quarter of 2026 as better volumes were realized in the current period. Other noninterest income was $898,000 in the first quarter of 2026 compared to $1.2 million in the first quarter of 2025 primarily due to lower SBIC income in 2026.

<u>Noninterest Expense.</u> Noninterest expense totaled $37.3 million for the quarter ended March 31, 2026 compared to $28.5 million for the quarter ended March 31, 2025. Salaries and employee benefits were $18.5 million in the first quarter of 2026 compared to $16.2 million in the first quarter of 2025. The increase was primarily driven by higher salaries associated with employee raises, the acquisition of Middlefield in the first quarter of 2026 and higher commission expense from increased revenue in the fee-based businesses. Occupancy and equipment expense increased to $5.1 million in the first quarter of 2026 from $4.1 million in the first quarter of 2025 due to the Merger and increased maintenance costs in 2026 due to more severe winter weather conditions. FDIC and state and local taxes increased by $341,000 to $1.6 million in the first quarter of 2026 compared to $1.3 million in the first quarter of 2025 due to the Merger and higher capital levels year-over-year. Expense related to the Merger and to convert our core processing system increased to $4.0 million. There were no expenses recognized for these activities in the first quarter of 2025. Core processing expense increased to $1.7 million in the first quarter of 2026 from $1.4 million in the first quarter of 2025. The increase was due to the Merger and a lower level of service credits in 2026. Other noninterest expense increased by $650,000 to $3.8 million in the first quarter of 2026 primarily as a result of the acquisition and timing issues.

<u>Income Taxes</u>. Income tax expense was $3.7 million for the three months ended March 31, 2026 compared to $2.8 million for the three months ended March 31, 2025 due to higher pretax income in the first quarter of 2026.

**Financial Condition** 

<u>Cash and Cash Equivalents</u>. Cash and cash equivalents increased $93.7 million during the first three months of 2026 to $186.1 million from $92.4 million at December 31, 2025. The increase in the cash balances was primarily due to the Company intentionally holding more liquidity on its balance sheet at March 31, 2026 and the Merger with Middlefield.

<u>Securities</u>. The Company had securities available for sale totaling $1.48 billion as of March 31, 2026 compared to $1.34 billion as of December 31, 2025. The increase is a direct result of the Merger. Net unrealized losses on the portfolio totaled $189.7 million at March 31, 2026, compared to $181.8 million at December 31, 2025. The Company anticipates continued volatility in the bond market in 2026, which will continue to affect the value of the portfolio.

<u>Loans.</u> Net loans (excluding loans held for sale) increased to $4.75 billion at March 31, 2026 from $3.27 billion at December 31, 2025. The increase in 2026 is primarily due to the Merger.

The following tables present the amortized cost basis of the Company's commercial real estate portfolio segment by industry as of March 31, 2026 and December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | % of Commercial |  | Weighted Average | Weighted Average |
| (In Thousands of Dollars) | Amortized Cost | Real Estate | % of Total Portfolio | Loan-to-Value | Occupancy |
| **March 31, 2026** |  |  |  |  |  |
| Commercial real estate |  |  |  |  |  |
| Retail | $336456 | 14.57% | 7.01% | 50.87% | 88.59% |
| Farmland | 231455 | 10.03% | 4.82% | 46.85% | 100.00% |
| Warehouse/Industrial | 232623 | 10.08% | 4.85% | 51.12% | 93.90% |
| Office | 194707 | 8.43% | 4.06% | 58.58% | 81.72% |
| Multifamily | 247892 | 10.74% | 5.16% | 59.24% | 72.54% |
| Medical | 145189 | 6.29% | 3.02% | 54.08% | 93.66% |
| Hotel | 43459 | 1.88% | 0.91% | 43.57% | 75.61% |
| Special Purpose | 75927 | 3.29% | 1.58% | 52.88% | 100.00% |
| Restaurant | 43121 | 1.87% | 0.90% | 49.44% | 100.00% |
| Multifamily - Construction | 37343 | 1.62% | 0.78% | 54.52% | 5.02% |
| All Other | 720558 | 31.21% | 15.01% | 45.37% | 96.24% |
| Total | $2308730 | 100.00% | 48.10% |  |  |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | % of Commercial |  | Weighted Average | Weighted Average |
| (In Thousands of Dollars) | Amortized Cost | Real Estate | % of Total Portfolio | Loan-to-Value | Occupancy |
| **December 31, 2025** |  |  |  |  |  |
| Commercial real estate |  |  |  |  |  |
| Retail | $337257 | 20.97% | 10.21% | 51.86% | 87.81% |
| Farmland | 211231 | 13.13% | 6.39% | 48.61% | 100.00% |
| Warehouse/Industrial | 236391 | 14.70% | 7.15% | 52.50% | 93.23% |
| Office | 191765 | 11.92% | 5.80% | 59.74% | 81.76% |
| Multifamily | 171956 | 10.69% | 5.20% | 59.15% | 72.03% |
| Medical | 141396 | 8.79% | 4.28% | 55.31% | 93.83% |
| Hotel | 44356 | 2.76% | 1.34% | 44.15% | 75.81% |
| Special Purpose | 78533 | 4.88% | 2.38% | 53.62% | 98.62% |
| Restaurant | 44583 | 2.77% | 1.35% | 52.52% | 100.00% |
| Multifamily - Construction | 62595 | 3.89% | 1.89% | 55.98% | 27.46% |
| All Other | 88123 | 5.48% | 2.67% | 46.51% | 96.04% |
| Total | $1608186 | 100.00% | 48.66% |  |  |

---

<u>Allowance for Credit Losses</u>. The following table indicates key asset quality ratios that management evaluates on an ongoing basis. The amortized cost balances were used in the calculations.

**Asset Quality History**

(In Thousands of Dollars)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **3/31/2026** | **12/31/2025** | **9/30/2025** | **6/30/2025** | **3/31/2025** |
| Nonperforming loans | $59854 | $26215 | $35344 | $27819 | $20724 |
| Nonperforming loans as a % of total loans | 1.25% | 0.79% | 1.06% | 0.84% | 0.64% |
| Non-performing assets | $59977 | $26318 | $35519 | $28052 | $20902 |
| Non-performing assets as a % of total assets | 0.84% | 0.50% | 0.68% | 0.54% | 0.41% |
| Loans delinquent 30-89 days | $14700 | $16947 | $16083 | $17727 | $11192 |
| Loans delinquent 30-89 days as a % of total loans | 0.31% | 0.51% | 0.48% | 0.54% | 0.34% |
| Allowance for credit losses | $54684 | $36811 | $39528 | $35863 | $35549 |
| Allowance for credit losses as a % of total loans | 1.14% | 1.11% | 1.18% | 1.17% | 1.09% |
| Allowance for credit losses as a % of nonperforming loans | 91.36% | 140.42% | 111.84% | 138.62% | 171.54% |
| Net charge-offs for the quarter | $444 | $4897 | $536 | $572 | $336 |
| Annualized net charge-offs to average net loans outstanding | 0.05% | 0.59% | 0.07% | 0.07% | 0.04% |

---

The Company's allowance for credit losses increased to $54.7 million for the period ended March 31, 2026, from $36.8 million for the period ended December 31, 2025. The increase in the allowance for credit losses was primarily driven by the Merger. The Company recorded a $4.0 million and $15.3 million increase to the allowance for credit losses for the Day 1 reserve for purchased financial assets with credit deterioration and purchased seasoned loans, respectively. The Company estimates the ACL based on the amortized cost basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan's amortized cost basis and the related measurement of the ACL. Estimating the amount of the ACL is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change.

Based on the evaluation of the adequacy of the allowance for credit losses, management believes that the allowance for credit losses at March 31, 2026 is adequate. The provision for credit losses is based on management's judgment after taking into consideration all factors connected with the collectability of the existing loan portfolio. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Specific factors considered by management in determining the amounts charged to operating expenses include previous credit loss experience, the status of past due interest and principal payments, the quality of financial information supplied by loan customers and the general condition of the industries in the community to which loans have been made.

<u>Deposits.</u> Total deposits increased to $5.9 billion at March 31, 2026 from $4.34 billion at December 31, 2025. Customer deposits grew $1.6 billion, including an increase of $282.7 million in public funds. The increase was primarily due to Middlefield, which added $1.49 billion in deposits, as well as seasonal growth in public funds.

<u>Short-term Borrowings.</u> Total short-term borrowing balances increased from $281.0 million at December 31, 2025 to $341.0 million at March 31, 2026. The Middlefield Merger added $145.0 million in short-term borrowings offset by payoffs.

<u>Total Stockholders' Equity.</u> Total stockholders' equity increased to $766.9 million at March 31, 2026 from $485.7 million at December 31, 2025. The increase was primarily due to an increase in common stock of $276.2 million from the Merger coupled with growth in retained earnings of $9.8 million due to $16.3 million of net income recognized during the first three months of the year partially offset by dividends paid on outstanding common shares.

The capital management function is a regular process that consists of providing capital for both the current financial position and the anticipated future growth of the Company. At March 31, 2026, the Company is required to maintain 4.5% common equity tier 1 to risk weighted assets excluding the conservation buffer to be adequately capitalized. The Company's common equity tier 1 to risk weighted assets was 11.70%, total risk-based capital ratio stood at 14.63%, and the Tier 1 risk-based capital ratio and Tier 1 leverage ratio were at 12.19% and 11.21%, respectively, at March 31, 2026. Management believes that the Company and the Bank meet all capital adequacy requirements to which they are subject, as of March 31, 2026.

Federal bank regulatory agencies finalized a rule that simplifies capital requirements for community banks by allowing them to adopt a simple leverage ratio to measure capital adequacy. The community bank leverage ratio framework removes requirements for calculating and reporting risk-based capital ratios for a qualifying community bank that opts into the framework. The Company has not elected to adopt this framework.

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**Critical Accounting Policies**

The Company follows financial accounting and reporting policies that are in accordance with U.S. GAAP. These policies are presented in Note 1 of the consolidated audited financial statements in the Company's Annual Report to Shareholders included in the Company's 2025 Form 10-K. Critical accounting policies are those policies that require management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. The Company has identified accounting policies that are critical accounting policies and an understanding of these policies is necessary to understand the Company's financial statements. These policies relate to determining the adequacy of the allowance for credit losses, if there is any impairment of goodwill or other intangible and estimating the fair value of assets acquired and liabilities assumed in connection with any merger activity. Additional information regarding these policies is included in the notes to the aforementioned 2025 consolidated financial statements, Note 1 (Summary of Significant Accounting Policies), Note 4 (Loans) and Note 2 (Business Combinations), and the sections captioned "Loan Portfolio."

Farmers maintains an allowance for credit losses. The allowance for credit losses is presented as a reserve against loans on the balance sheets. Credit losses are charged off against the allowance for credit losses, while recoveries of amounts previously charged off are credited to the allowance for credit losses. A provision for credit losses is charged to operations based on management's periodic evaluation of adequacy of the allowance.

The Company's allowance for credit losses represents management's estimate of expected credit losses over the remaining expected life of the Company's financial assets measured at amortized cost and certain off-balance sheet lending-related commitments.

The allowance for credit losses involves significant judgment on a number of matters including the weighting of macroeconomic forecasts and microeconomic statistics, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Note 4 for further information on these judgments as well as the Company's policies and methodologies used to determine the Company's allowance for credit losses.

A significant judgment involved in estimating the Company's allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the four-quarter forecast period within the Company's methodology. The four-quarter forecast incorporates three macroeconomic variables ("MEV") that are relevant for exposures across the Company.

• U.S. changes in real gross domestic product (GDP).

• U.S. personal consumption expenditures (PCE) inflation.

• U.S. civilian unemployment rate.

Changes in the Company's assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.

It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.

To consider the impact of a hypothetical alternate macroeconomic forecast, the Company compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios. The central and relative adverse scenarios each included the three MEVs, but differed in the levels, paths and peaks/troughs of those variables over the four-quarter forecast period.

For example, compared to the Company's central scenario that is based on a four-quarter forecasted change in U.S. real GDP of 2.40% from 4Q2025 to 4Q2026, U.S. PCE inflation of 2.70%, and U.S. unemployment of 4.40%, the Company's relative adverse scenario assumes a four-quarter forecast with a contraction of U.S. real GDP, a PCE inflation between 5.00% and 7.00% and an elevated U.S. unemployment rate between 6.00% and 7.00%. This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:

• The impacts of changes in the MEVs are both interrelated and nonlinear, so the results of this analysis cannot be simply extrapolated for more severe changes in macroeconomic variables.

• Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.

To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of March 31, 2026, the Company compared the modeled estimates under its relative adverse scenario for two of the Company's largest loan pools to its central scenario for the same loan pools. Without considering offsetting or correlated effects in other qualitative components of the Company's allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences:

• An increase of approximately $943,000 for residential real estate loans and lending-related commitments

• An increase of approximately $1.4 million for commercial real estate non-owner occupied loans and lending-related commitments

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This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in the other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.

Recognizing that forecasts of macroeconomic conditions are inherently uncertain, the Company believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the period ended March 31, 2026.

The Company uses two methodologies to analyze loan pools. The cohort method and the PD/LGD. Cohort relies on the creation of cohorts to capture loans that qualify for a particular segment, as of a point in time. Those loans are then tracked over their remaining lives to determine their loss experience. The Company aggregates financial assets on the basis of similar risk characteristics when evaluating loans on a collective basis. Those characteristics include, but are not limited to, internal or external credit score, risk ratings, financial asset, loan type, collateral type, size, effective interest rate, term, or geographical location. The Company uses cohort primarily for consumer loan portfolios.

The PD portion of PD/LGD is defined by the Company as 90 days past due, placed on non-accrual, or is partially or wholly charged-off. Typically, a one-year time period is used to assess PD. PD can be measured and applied using various risk criteria. Risk rating is one common way to apply PDs. LGD is to determine the percentage of loss by facility or collateral type. LGD estimates can sometimes be driven, or influenced, by product type, industry or geography. The Company uses PD/LGD primarily for commercial loan portfolios.

Management believes that the accounting for goodwill and other intangible assets also involves a higher degree of judgment than most other significant accounting policies. GAAP establishes standards for the amortization of acquired intangible assets and the impairment assessment of goodwill. Goodwill arising from business combinations represents the value attributable to unidentifiable intangible assets in the business acquired. The Company's goodwill relates to the value inherent in the banking industry and that value is dependent upon the ability of the Company's subsidiaries to provide quality, cost-effective services in a competitive marketplace. The goodwill value is supported by revenue that is in part driven by the volume of business transacted. A decrease in earnings resulting from a decline in the customer base or the inability to deliver cost-effective services over sustained periods can lead to impairment of goodwill that could adversely impact earnings in future periods. GAAP requires an annual evaluation of goodwill for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The fair value of the goodwill is estimated by reviewing the past and projected operating results for the subsidiaries and comparable industry information. At March 31, 2026, on a consolidated basis, Farmers had intangibles of $36.8 million subject to amortization and $271.7 million in goodwill, which was not subject to periodic amortization.

The Company accounts for acquisitions under FASB ASC Topic 805, Business Combinations, which requires the use of the acquisition method of accounting. Assets acquired and liabilities assumed in a business combination are recorded at the estimated fair value on their purchase date. As provided for under GAAP, management has up to 12 months following the date of the acquisition to finalize the fair values of acquired assets and assumed liabilities. In particular, the valuation of acquired loans involves significant estimates, assumptions and judgment based on information available as of the acquisition date. Loans acquired in a business combination transaction are evaluated either individually or in pools of loans with similar characteristics; including consideration of a credit component. A number of factors are considered in determining the estimated fair value of purchased loans including, among other things, the remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, estimated holding periods, contractual interest rates compared to market interest rates, and net present value of cash flows expected to be received.

**Liquidity** 

The Company maintains, in the opinion of management, liquidity sufficient to satisfy depositors' requirements and to meet the credit needs of customers. The Company depends on its ability to maintain its market share of deposits as well as its potential to acquire new funds. The Company's ability to attract deposits and borrow funds depends in large measure on its profitability, capitalization and overall financial condition. The Company's objective in liquidity management is to maintain the ability to meet loan commitments, purchase securities or to repay deposits and other liabilities in accordance with their terms without an adverse impact on current or future earnings. Principal sources of liquidity for the Company include assets considered relatively liquid, such as federal funds sold, cash-due from banks, as well as cash flows from maturities and repayments of loans, and to a lesser extent securities.

Along with its liquid assets, the Bank has additional sources of liquidity available which help to ensure that adequate funds are available as needed. These other sources include, but are not limited to, access to funds in the wholesale arena, the ability to obtain deposits through the adjustment of interest rates and the purchasing of federal funds and borrowings on approved lines of credit at major domestic banks. The Bank has a line of credit totaling $25.0 million and there was no balance on this line at either March 31, 2026 or December 31, 2025. The Company also has access to borrow $11.5 million at the Federal Reserve Discount Window, however, there was no balance on this line at March 31, 2026 or December 31, 2025. The Federal Reserve Discount Window can be an additional source of funds with the posting of additional collateral. As of March 31, 2026, the Bank had $341.0 million in outstanding balances with the FHLB. Additional borrowing capacity at the FHLB was approximately $788.9 million at March 31, 2026. The Bank views its membership in the FHLB as a solid source of liquidity. Management feels that its liquidity position is adequate and will continue to monitor the position on a monthly basis.

**Off-Balance Sheet Arrangements** 

In the normal course of business, to meet the financial needs of our customers, we are a party to financial instruments with off-balance sheet risk. These financial instruments generally include commitments to originate mortgage, commercial and consumer loans, and involve to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the Consolidated Balance Sheets. The Bank's maximum exposure to credit loss in the event of nonperformance by the borrower is represented by the contractual amount of those instruments. Because some commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The same credit policies are used in making commitments as are used for on-balance sheet instruments. Collateral is required in instances where deemed necessary. Undisbursed balances of loans closed include funds not disbursed but committed for construction projects. Unused lines of credit include funds not disbursed, but committed for, home equity, commercial and consumer lines of credit. Financial standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily used to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Total unused commitments were $1.03 billion at March 31, 2026, and $710 million at December 31, 2025. Additionally, the Company has committed up to $21.2 million in subscriptions in SBIC investment funds and at March 31, 2026, the Company had invested $16.0 million in these funds.

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**Recent Market and Regulatory Developments** 

Various and significant legislation affecting financial institutions and the financial industry is from time to time introduced in the U.S. Congress and state legislatures, as well as by regulatory agencies. Such initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions or proposals to substantially change the financial institution regulatory system.

Also, such statutes, regulations and policies are continually under review by Congress, state legislatures and federal and state regulatory agencies and are subject to change at any time, particularly in the current economic and regulatory environment. Any such change in statutes, regulations or regulatory policies applicable to the Company could have a material effect on the business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Recent Market and Regulatory Developments** 

Various and significant legislation affecting financial institutions and the financial industry is from time to time introduced in the U.S. Congress and state legislatures, as well as by regulatory agencies. Such initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions or proposals to substantially change the financial institution regulatory system.

Also, such statutes, regulations and policies are continually under review by Congress, state legislatures and federal and state regulatory agencies and are subject to change at any time, particularly in the current economic and regulatory environment. Any such change in statutes, regulations or regulatory policies applicable to the Company could have a material effect on the business of the Company.

**Item 3. Quantitative and Qualitative Disclosures about Market Risk** 

Important considerations in asset/liability management are liquidity, the balance between interest rate sensitive assets and liabilities and the adequacy of capital. Interest rate sensitive assets and liabilities are those which have rates subject to change within a future time period due to maturity of the instrument or changes in market rates. While liquidity management involves meeting the funds flow requirements of the Company, the management of interest rate sensitivity focuses on the structure of these assets and liabilities with respect to maturity and repricing characteristics. Managing interest rate sensitive assets and liabilities provides a means of tempering fluctuating interest rates and maintaining net interest margins through periods of changing interest rates. The Company monitors interest rate sensitive assets and liabilities to determine the overall interest rate position over various time frames.

The Company considers the primary market exposure to be interest rate risk. Simulation analysis is used to monitor the Company's exposure to changes in interest rates, and the effect of the change to net interest income. The following table shows the effect on net interest income and the net present value of equity from a sudden and sustained 400 basis point increase to a 400 basis point decrease in market interest rates. The assumptions and predictions include inputs to compute baseline net interest income, expected changes in rates on interest bearing deposit accounts and loans, competition and various other factors that are difficult to accurately predict.

---

| | | | |
|:---|:---|:---|:---|
| **Changes In Interest Rate** | **March 31, 2026** | **December 31, 2025** | **ALCO** |
| **(basis points)** | **Result** | **Result** | **Guidelines** |
| Net Interest Income Change |  |  |  |
| +400 | -4.5% | -6.6% | -12.5% |
| +300 | -3.6% | -5.2% | -10.0% |
| +200 | -2.5% | -3.4% | -7.5% |
| +100 | -1.3% | -1.8% | -5.0% |
| -100 | 1.4% | 1.4% | -5.0% |
| -200 | 2.5% | 2.3% | -10.0% |
| -300 | 3.5% | 3.4% | -15.0% |
| -400 | 3.7% | 3.5% | -20.0% |
| Net Present Value Of Equity Change |  |  |  |
| +400 | -20.0% | -27.9% | -12.5% |
| +300 | -14.9% | -20.7% | -10.0% |
| +200 | -9.3% | -12.9% | -7.5% |
| +100 | -4.5% | -6.2% | -5.0% |
| -100 | 2.3% | 3.1% | -10.0% |
| -200 | 0.8% | 2.4% | -15.0% |
| -300 | -4.7% | -2.9% | -20.0% |
| -400 | -9.3% | -2.5% | -25.0% |

---

The yield curve has changed dramatically over the past four years. From March 2022 to July 2023, in an intense effort to diffuse inflation, the Federal Open Market Committee raised the discount rate from 0.25% to 5.50%. The committee then held the discount rate at 5.50% until September 2024 when they cut the discount rate by a total of 100 basis points over the last four months of 2024. These rate cuts in 2024 were an attempt to guide the economy into a "soft landing", where the still comparatively elevated rate would continue to bring down inflation without harming the job market or the economy. The committee cut rates by 25 basis points three more times in 2025 in an effort to prioritize employment to promote economic stability amid a slowing labor market. The new target rate set in December 2025 was 3.50% to 3.75%, where it has remained for the first three months of 2026. Overall, the discount rate remains elevated despite the rate cuts over the past two years.

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The remaining results of the simulations in the table above indicate that interest rate change results fall within internal limits established by the Company at both March 31, 2026, and December 31, 2025. A report on interest rate risk is presented to the Board of Directors and the Asset/Liability Committee on a quarterly basis. The Company has no market risk sensitive instruments held for trading purposes.

With the largest amount of interest sensitive assets and liabilities maturing within twelve months, the Company monitors this area most closely. Early withdrawal of deposits, prepayments of loans and loan delinquencies are some of the factors that can impact actual results in comparison to our simulation analysis. In addition, changes in rates on interest sensitive assets and liabilities may not be equal, which could result in a change in net interest margin.

Interest rate sensitivity management provides some degree of protection against net interest income volatility. It is not possible or necessarily desirable to attempt to eliminate this risk completely by matching interest sensitive assets and liabilities. Other factors, such as market demand, interest rate outlook, regulatory restraint and strategic planning also have an effect on the desired balance sheet structure.

**Item 4. Controls and Procedures** 

Based on their evaluation, as of the end of the period covered by this Quarterly Report on Form 10-Q, the Company's Chief Executive Officer and Chief Financial Officer have concluded the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) are effective. There were no changes in the Company's internal controls over financial reporting (as defined in Rule 13a–15(f) under the Exchange Act) that occurred during the fiscal quarter ended March 31, 2026, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

**PART II - OTHER INFORMATION** 

**Item 1. Legal Proceedings** 

The Company is a defendant in lawsuits and other adversary proceedings arising in the ordinary course of business. Legal costs incurred in connection with the resolution of claims and lawsuits are generally expensed as incurred, although the Company establishes accruals where losses are deemed probable and reasonably estimable. The Company's assessment of the current exposure with respect to adverse claims in legal matters could change in the event of the discovery of additional facts in such matters or upon determinations by judges, juries, administrative agencies or other finders of fact that are inconsistent with the Company's evaluation of claims. It is possible that the ultimate resolution of matters, if unfavorable, may be material to the results of operations in a particular future period as the time and amount of any resolution of such actions and its relationship to the future results of operations are not known.

**Item 1A. Risk Factors** 

For discussion of risk factors related to the Company, refer to Part 1, Item 1A, "Risk Factor," contained in the Company's Annual Report on form 10-K for the year ended December 31, 2025.

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**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds** 

**Purchases of equity securities by the issuer.**

On March 1, 2023, the Company announced that its Board of Directors authorized the purchase of up to 1,000,000 shares of its common stock in the open market or in privately negotiated transactions, from time to time and subject to market and other conditions. This 2023 Repurchase Program supersedes the Company's 2019 share repurchase program. The 2023 Repurchase Program may be modified, suspended or terminated by the Company at any time.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  |  | Total Number of | Maximum Number |
|  |  |  | Shares Purchased | of Shares that May |
|  | Total Number of | Average Price | as Part of Publicly | Yet be Purchased |
| Period | Shares Purchased | Paid per Share | Announced Program | Under the Program |
| Beginning balance |  |  |  | 497047 |
| January 1 - 31 | 874 | $13.30 | 0 | 497047 |
| February 1 - 28 | 43565 | 13.60 | 0 | 497047 |
| March 1 - 31 | 0 | 0 | 0 | 497047 |
| Ending balance | 44439 | 3.59 | 0 | 497047 |

---

There was no treasury stock activity under the program during the three month period ended March 31, 2026.

**Item 3. Defaults Upon Senior Securities** 

Not applicable.

**Item 4. Mine Safety Disclosures** 

Not applicable.

**Item *5.* Other Information** 

**Securities Trading Plans of Directors and Executive Officers**

During the *three* months ended *March 31, 2026*, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule *10b5*-*1*(c) of the Exchange Act or any "non-Rule *10b5*-*1* trading arrangement" (as defined in Item *408*(c) of Regulation S-K).

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**Item 6. Exhibits** 

The following exhibits are filed or incorporated by reference as part of this report:

---

| | |
|:---|:---|
| 2.1\* | <u>[Agreement and Plan of Merger by and between Farmers National Banc Corp. and Middlefield Banc Corp., dated as of October 22, 2025 (incorporated by reference from exhibit 2.1 to the Company's Current Report on Form 8-K filed with the Commission on October 27, 2025).](http://www.sec.gov/Archives/edgar/data/709337/000143774925031827/ex_876968.htm)</u> |
| 3.1 | [<u>Articles of Incorporation of Farmers National Banc Corp., as amended (incorporated by reference from Exhibit 4.1 to the Company's Registration Statement on Form S-3 filed with the Commission on October 3, 2001).</u>](http://www.sec.gov/Archives/edgar/data/709337/000095015201504813/l90593aex4-1.txt) |
| 3.2 | [<u>Amendment to Articles of Incorporation of Farmers National Banc Corp., as amended (incorporated by reference from Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on May 1, 2013).</u>](http://www.sec.gov/Archives/edgar/data/709337/000119312513192011/d528998dex31.htm) |
| 3.3 | [<u>Amendment to Articles of Incorporation of Farmers National Banc Corp., as amended (incorporated by reference from Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on April 20, 2018).</u>](http://www.sec.gov/Archives/edgar/data/709337/000119312518124849/d740857dex31.htm) |
| 3.4 | [Amendment to Articles of Incorporation of Farmers National Banc Corp., as amended (incorporated by reference from Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on February 10, 2026).](http://www.sec.gov/Archives/edgar/data/709337/000143774926003620/ex_918444.htm) |
| 3.5 | [<u>Amended Code of Regulations of Farmers National Banc Corp. (incorporated by reference from Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the Commission on April 17, 2020).</u>](http://www.sec.gov/Archives/edgar/data/709337/000119312520110764/d919033dex31.htm) |
| 10.1\* | [Farmers National Banc Corp. 2026 Form of Performance-based Cash Award under 2026 Incentive Plan.](ex_949962.htm) |
| 10.2\* | [Farmers National Banc Corp. 2026 Form of Notice of Grant of Performance-based Restricted Stock Awards under 2022 Equity Incentive Plan.](ex_949963.htm) |
| 10.3\* | [Farmers National Banc Corp. 2026 Form of Performance-based Equity Award under 2022 Equity Incentive Plan.](ex_949964.htm) |
| 10.4\* | [Farmers National Banc Corp. 2026 Restricted Stock Award under 2022 Equity Incentive Plan.](ex_949965.htm) |
| 31.1 | [<u>Rule 13a-14(a)/15d-14(a) Certification of Kevin J. Helmick, President and Chief Executive Officer of the Company (principal executive officer) (filed herewith).</u>](ex_913171.htm) |
| 31.2 | [<u>Rule 13a-14(a)/15d-14(a) Certification of A. Troy Adair, Executive Vice President, Chief Financial Officer and Secretary of the Company (principal financial officer) (filed herewith).</u>](ex_913172.htm) |
| 32.1 | [<u>Certification pursuant to 18 U.S.C. Section 1350 of Kevin J. Helmick, President and Chief Executive Officer of the Company (principal executive officer) (filed herewith).</u>](ex_913173.htm) |
| 32.2 | [<u>Certification pursuant to 18 U.S.C. Section 1350 of A. Troy Adair, Executive Vice President, Chief Financial Officer and Secretary of the Company (principal financial officer) (filed herewith).</u>](ex_913174.htm) |
| 101 | The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, formatted in iXBRL (Inline Extensible Business Reporting Language), filed herewith: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Income; (iii) the Consolidated Statements of Comprehensive Income; (iv) the Consolidated Statements of Stockholders' Equity, (v) the Consolidated Statements of Cash Flows; and (vi) Notes to Unaudited Consolidated Financial Statements. |
| 104 | The cover page from the Company's Quarterly report on Form 10-Q for the quarter ended March 31, 2026, has been formatted in Inline XBRL. |

---

\* Pursuant to Item 601(a)(5) of Regulation S-K, certain schedules and similar attachments have been omitted. The registrant hereby agrees to furnish a copy of any omitted schedule or similar attachment to the SEC upon request.

\*\* Constitutes a management contract or compensatory plan or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48

------

[**Table of Contents**](#toc)

<u>SIGNATURES</u>

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 thereunto duly authorized.

FARMERS NATIONAL BANC CORP.

---

| |
|:---|
| Dated: May 7, 2026 |
| /s/ Kevin J. Helmick |
| Kevin J. Helmick<br> President and Chief Executive Officer |

---

---

| |
|:---|
| Dated: May 7, 2026 |
| /s/ A. Troy Adair |
| A. Troy Adair<br> Senior Executive Vice President, Chief Financial Officer and Secretary |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 49

## Exhibit 10.1

EXHIBIT 10.1

**FARMERS NATIONAL BANC CORP.**

**PERFORMANCE-BASED CASH AWARD AGREEMENT** 

**(2026)** Farmers National Banc Corp. (the "<u>Company</u>") hereby grants the undersigned Participant an Award pursuant to the Farmers National Banc Corp. Long-Term Incentive Plan (the "<u>Cash LTI Plan</u>"), as evidenced by the Notice of Grant accompanying this Award Agreement (the "<u>Grant Notice</u>"), and as further described in this Award Agreement (this "<u>Award Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;1. *Nature of Award:* Effective as of the date specified in the Grant Notice (the " <u>Grant Date</u> "), the Company hereby grants to the individual identified in the Grant Notice (the " <u>Participant</u> " or " <u>you</u> ") the award as set forth in the Grant Notice (the " <u>Award</u> "). The Award is subject to the terms and conditions described in the Cash LTI Plan, this Award Agreement and the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;2. *Performance Period:* The three-year period beginning on January 1, 2026 and ending on December 31, 2028 (the " <u>Performance Period</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;3. *Target Cash Award as Percentage of Base Compensation*: ____% x .25 (the " <u>Target Performance-Based Cash Award</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;4. *Earning an Award:* The Participant shall be eligible to receive a payment equal to an amount between 0% and 200% of the Target Performance-Based Cash Award, based on achievement during the Performance Period of the Performance Objective set forth in the table below. Performance between two stated levels will be interpolated when determining the percentage of the Target Performance-Based Cash Award earned.

The percentage of the Target Performance-Based Cash Award that may be earned will be based on the Company's Total Shareholder Return ("<u>TSR</u>") during the Performance Period compared to the Total Shareholder Return of the Company's Peer Group during the Performance Period ("<u>Relative TSR</u>"), expressed as a percentile. Between 0% and 200% of the Target Performance-Based Cash Award is subject to vesting on the "<u>Normal Vesting Date</u>" stated in the Grant Notice, in accordance with the following schedule and percentages:

---

| | |
|:---|:---|
| Performance Objective:<br> Relative TSR during Performance Period | Percentage of<br> Target Performance-Based Cash Award Earned |
| Less than Peer Group 25<sup>th</sup> percentile | 0% |
| Equal to Peer Group 25<sup>th</sup> percentile (threshold) | 20% |
| Equal to Peer Group 50<sup>th</sup> percentile (target) | 100% |
| Equal to or higher than Peer Group 75<sup>th</sup> percentile (max) | 200% |

---

For these purposes: (i) Relative TSR shall be determined by the Committee in its sole discretion; and (ii) the Committee shall select the institutions constituting, and make such periodic adjustments as it determines appropriate to, the "<u>Peer Group</u>" in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;5. *Payment of Award:* With respect to the Performance Period, the Committee shall certify the level of achievement of the Performance Objective set forth in Section 4 and determine the amount payable with respect to your Award based on such level of achievement. Payment of the Award shall be made to the Participant in cash in a single lump sum on the Normal Vesting Date determined by multiplying the applicable percentage for the level of performance certified by the Committee times the Participant's Target Performance-Based Cash Award.

&nbsp;&nbsp;&nbsp;&nbsp;6. *Limitations on Payment of Award:* The Committee may, in its sole discretion, reduce the amount payable with respect to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;7. *Forfeiture of Awards:* If the Company is required to prepare an accounting restatement due to material non-compliance of the Company, as a result of misconduct by a Participant, with any financial reporting requirement under any applicable laws, the Participant shall reimburse the Company for all amounts received under the Cash LTI Plan within thirty (30) days after receipt of notice of the same from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;8. *Effect of Termination:* This Award may be forfeited if the Participant's employment terminates prior to the Normal Vesting Date, although it will depend on the reason for termination as provided below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination Due to Death, Disability or Retirement</u>. If your employment with the Company and its Affiliates terminates due to your death, Disability, or Retirement, the amount of your Award (if any) shall be multiplied by a fraction, the numerator of which is the number of whole months you were employed from the Grant Date to the date of your termination due to death, Disability or Retirement, and the denominator of which is thirty-six (36). Payment of the Award shall be made to the Participant in cash in a single lump sum determined by multiplying such pro rata portion of your Target Performance-Based Cash Award by the applicable percentage for the level of performance certified by the Committee, with performance based on the Relative TSR for the portion of the Performance Period that ended on the last day of the calendar quarter immediately preceding the date of termination. Such payment of the Award will occur within ninety (90) days following the date of termination. For purposes of this Award Agreement, " <u>Retirement</u> " means termination (other than for Cause (as defined in Exhibit A attached hereto)) after attaining either age fifty-five (55) with at least ten (10) years of service with the Company and the Affiliates or age sixty-two (62) with at least five (5) years of service with the Company and the Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination without Cause or by the Participant for Good Reason</u>. If your employment with the Company and its Affiliates is terminated by the Company or its Affiliate without Cause, or you terminate your employment for Good Reason (as defined in Exhibit A attached hereto), you will be paid a prorated portion of your Target Performance-Based Cash Award determined in the same manner as described in Section 8(a) above based on your termination date. Such payment will occur within ninety (90) days following the date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination for any Other Reason</u>. If your employment with the Company and its Affiliates terminates under any other circumstance (including if your employment is terminated by the Company or any Affiliate for Cause, regardless of whether such termination could also constitute a Retirement), you shall forfeit any rights with respect to the Award on your date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;9. *Effect of Change in Control:* Notwithstanding the foregoing, if a Change in Control occurs after the Grant Date, your Award will be subject to the additional terms and conditions described in this Section 9. If such a Change in Control occurs prior to the Normal Vesting Date and on the date of such Change in Control or within two (2) years thereafter your employment is terminated by the Company, an Affiliate or a successor in interest for any reason other than for Cause or by you for Good Reason, you shall be entitled to receive a payment equal to the amount payable with respect to your Award as though the Performance Objective had been satisfied at the "target" level of achievement for the Performance Period. Therefore, you shall be entitled to a payment in the amount of 100% of your Target Performance-Based Cash Award. Payment will be made in a single lump-sum cash payment within sixty (60) days following the date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;10. *Restrictive Covenants:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Solicitation</u> **.** The Participant acknowledges and agrees that as a condition to and in consideration of this Award Agreement, during the term of the Participant's employment and for a period of twenty-four (24) months thereafter (the "Non-Solicitation Restrictive Period"), the Participant will not, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Solicit, engage or otherwise interfere with any customer or client who is at the time of termination or was within the preceding six (6) months of termination a customer or client of the Company, its Affiliate or any other related entity that employed the Participant for the purposes of directly or indirectly furnishing any financial or banking services that a national banking association, bank holding company, state bank, savings and loan association or other regulated financial institution is permitted by law to conduct or furnish on the date the Participant's employment is terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Employ, solicit for employment, engage or otherwise interfere with any person who is at the time of termination or was within the preceding six (6) months of termination employed by, engaged by, or providing services to the Company, its Affiliates or any related entity, or otherwise directly or indirectly induce or take any action which would encourage or influence any such person to leave that person's employment or engagement, or terminate, reduce or modify their business or relationship with the Company, or any of its Affiliates or related entities.

The restrictive covenants and the Non-Solicitation Restrictive Period provided for herein will not be construed to limit the application of any other restrictive covenant or restriction period set forth in any other agreement entered into between the Participant and the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Nondisclosure and Non-appropriation of Information</u>. The Participant recognizes and acknowledges that while employed by the Company or any Affiliate, the Participant will have access to, learn, be provided with and, in some cases, prepare and create, certain Confidential Information (as defined in Section 10(c) below), proprietary information and/or trade secrets of the Company and/or any Affiliate, including, but not limited to, processes, financial information, pricing information, operating techniques, marketing processes, training techniques, customer, vendor, and referral source lists, price and cost information, files and forms, (collectively, the " <u>Trade Secrets</u> "), all of which are of substantial value to the Company and/or any Affiliate and the businesses conducted by them. The Participant expressly covenants and agrees that the Participant will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Hold in a fiduciary capacity and not reveal, communicate, use or cause to be used for the Participant's own benefit or divulge during the period of employment by the Company and/or any Affiliate and for an indefinite period thereafter, any Confidential Information, proprietary information or Trade Secrets now or hereafter owned by the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Not sell, exchange, give away, or otherwise dispose of Confidential Information, proprietary information or Trade Secrets now or hereafter owned by the Company and/or any Affiliate, whether the same will or may have been originated or discovered by the Company, any Affiliate, the Participant or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Not reveal, divulge or make known to any person, firm, company or corporation any Confidential Information, proprietary information or Trade Secrets of the Company and/or any Affiliate, unless such communication is required pursuant to a compulsory proceeding in which the Participant's failure to provide such Confidential Information, proprietary information or Trade Secrets would subject the Participant to criminal or civil sanctions and then only to the extent that the Participant provides prior notice to the Company prior to disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Return to the Company before termination of employment with the Company or any Affiliate, any and all written information, material or equipment that constitutes, contains or relates in any way to Confidential Information, proprietary information, Trade Secrets and any other documents, equipment, and material of any kind relating in any way to the business of the Company or any Affiliate, which are in the Participant's possession, custody and control and which are or may be property of the Company or any Affiliate, whether confidential or not, including any and all copies thereof which may have been made by or for the Participant and that the Participant will maintain no copies thereof after termination of the Participant's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Definition of</u> <u>"</u> <u>Confidential Information</u> <u>"</u>. "Confidential Information" means all information disclosed to or known by the Participant as a consequence of or through the Participant's employment with the Company or any Affiliate which either has not been made generally available to the public and is useful or of value to the current or anticipated business of the Company or any Affiliate, or has been identified to the Participant as confidential, either orally or in writing. Confidential Information includes without limitation computer software and programs; marketing, manufacturing, organizational research and development; business plans; sales forecasts; identities, competence, abilities and compensation of other employees of the Company or any Affiliate; pricing cost and other financial information; current and prospective customer and supplier lists and information about customers, suppliers or their employees; information concerning planned or pending acquisitions or divestitures; and information concerning purchases of equipment or property. Confidential Information does not include information which is in or hereafter enters the public domain through no fault of the Participant, or is disclosed by a third party having the legal right to use and disclose the information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other Terms and Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant acknowledges that the Participant is entering into this Award Agreement voluntarily and has given careful consideration to the restraints imposed by this Award Agreement. Irrespective of the manner of any employment termination, the restraints imposed by this Award Agreement will be operative during their full time periods and throughout the restrictive areas set forth in this Award Agreement. The Participant further acknowledges that if the Participant's employment with the Company or any Affiliate terminates for any reason the Participant can earn a livelihood without violating the foregoing restrictions and that the Participant's ability to earn a livelihood without violating these restrictions is a material employment condition. The Participant acknowledges and recognizes that if the Participant's employment terminates for any reason, this Section 10 of this Award Agreement will survive any such termination and any expiration of this Award Agreement. Further, the Participant agrees and consents that this Award Agreement is assignable by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Participant agrees that if a court of law finds that the provisions of this Award Agreement are too harsh so that they are unenforceable, then such court of law may enforce those restrictions and limitations which are acceptable and deemed enforceable by the court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event the Participant breaches the terms of this Award Agreement, it is agreed that all time periods contained in this Award Agreement will be tolled until the Participant ceases to breach this Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Injunction</u>. The parties acknowledge and agree, due to the subject matter of this Award Agreement, that money damages will be an inadequate remedy for a breach by the Participant of any of the obligations hereunder. Consequently, if the Participant breaches or threatens to breach any of the obligations under this Award Agreement, the Participant agrees that the Company shall have the right, in addition to any other rights or remedies available to it at law or in equity, to obtain equitable relief, including, without limitation, injunctive relief and specific performance, in the event of any breach or threatened breach. Further, the parties hereto agree and declare that it may be impossible to measure in monetary terms the damages that may accrue to the Company or any Affiliate by reason of the Participant's violation of this Award Agreement. Therefore, in the event that the Company, or any successor in interest thereto, shall institute an action or proceeding to enforce the provisions of this Award Agreement, each party or other person against whom such action or proceeding is brought shall and hereby does, in advance, waive the claim or defense that there is adequate remedy at law. In the event such injunctive relief is warranted and obtained by the Company, the Participant agrees to pay all costs of said action, including reasonable attorney fees.

&nbsp;&nbsp;&nbsp;&nbsp;11. *Miscellaneous:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Transferability</u>. The Award may not be sold, transferred, pledged, assigned or otherwise alienated or hypothecated, except by will or the laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Beneficiary</u>. Unless otherwise specifically designated by the Participant in writing, the Participant's beneficiary under the Cash LTI Plan shall be the Participant's spouse or, if no spouse survives the Participant, the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Right to Continued Service or to Awards</u>. The granting of the Award shall impose no obligation on the Company or any Affiliate to continue the employment of the Participant or interfere with or limit the right of the Company or any Affiliate to terminate the employment of the Participant at any time, with or without Cause, which right is expressly reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Withholding</u>. The Company or an Affiliate, as applicable, shall have the power and the right to deduct, withhold or collect any amount required by law or regulation to be withheld with respect to any taxable event arising with respect to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Requirements of Law</u>. The grant of the Award shall be subject to all applicable laws, rules and regulations (including applicable federal and state securities laws) and to all required approvals of any governmental agencies or national securities exchange, market or other quotation system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Governing Law</u>. This Award Agreement shall be governed by and construed in accordance with the laws of (other than laws governing conflicts of laws) the State of Ohio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Award Subject to Cash LTI Plan</u>. The Award is subject to the terms and conditions described in this Award Agreement and the Cash LTI Plan, which is incorporated by reference into and made a part of this Award Agreement. In the event of a conflict between the terms of the Cash LTI Plan and the terms of this Award Agreement, the terms of the Cash LTI Plan will govern. The Committee has the sole responsibility of interpreting the Cash LTI Plan and this Award Agreement, and its determination of the meaning of any provision in the Cash LTI Plan or this Award Agreement will be binding on the Participant. Capitalized terms that are not defined in this Award Agreement have the same meanings as in the Cash LTI Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Section 409A</u>. If the Participant is determined to be a "specified employee" (within the meaning of Section 409A of the Code and as determined under the Company's policy for determining specified employees), the Participant shall not be entitled to payment or to distribution of any portion of the Award that is subject to Section 409A of the Code (and for which no exception applies) and is payable or distributable on account of the Participant's "separation from service" (within the meaning of Section 409A of the Code) until the expiration of six months from the date of such separation from service (or, if earlier, the Participant's death). Such Award, or portion thereof, shall be paid or distributed on the first business day of the seventh month following such separation from service. If the Award is subject to Section 409A of the Code (and no exception applies) and the Award is to be paid during a designated period that begins in one taxable year and ends in a second taxable year, the Award shall be paid in the later of the two taxable years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Signature in Counterparts</u>. This Award Agreement may be signed in counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument.

[signature page attached]

------

**PARTICIPANT**

Date: ______________________

Print Name:<u> </u><u> </u><u> </u><u> </u><u> </u>

**FARMERS NATIONAL BANC CORP.**

By: _________________________________ Date: ______________________

Its: _________________________________

------

EXHIBIT A

DEFINITIONS OF "CAUSE" AND "GOOD REASON"

**"Cause**" means that, in the reasonable judgment of the Committee, any of the following events have occurred: (1) the willful or negligent failure by the Participant to substantially perform the Participant's duties with the Company and, after written notification by the Company to the Participant, the continued failure of the Participant to substantially perform such duties; (2) the willful or negligent engagement by the Participant in conduct which is demonstrably and materially injurious to the Company, financially or otherwise; (3) action or inaction by the Participant that constitutes a breach of fiduciary duty with respect to the Company or any of its subsidiaries; (4) the violation of any material written policy, rule or regulation of the Company; or (5) the Participant's material breach of any agreement in respect of confidentiality with the Company, whether or not entered into after the Grant Date.

**"Good Reason**" means the occurrence of any of the following: (1) a reduction in the Participant's annual base salary rate, unless such reduction generally applies to other Participants regardless of the reason(s) therefor; (2) a substantial diminution in the Participant's duties, authorities or responsibilities; or (3) the relocation of the Participant's principal place of employment with the Company such that (a) the distance from the former principal place of employment to the relocated principal place of employment is over fifty (50) miles and (b) the distance from the Participant's primary residence to the relocated principal place of employment is over fifty (50) miles; provided, however, that Good Reason shall exist only to the extent that the Participant provides the Company with written notice of the Participant's intention to terminate employment with the Company for Good Reason that specifies the condition(s) constituting Good Reason and the Company fails to correct such condition(s) within ten (10) business days from receipt of such written notice. Notwithstanding the foregoing, Good Reason shall cease to exist for an event on the one hundred and twentieth (120<sup>th</sup>) day following the later of its occurrence or the Participant's knowledge thereof, unless the Participant has given the Company written notice of such condition and of the Participant's intent to terminate for Good Reason prior to such date. With respect to the Chief Executive Officer only, Good Reason shall also include a change in responsibilities such that the Chief Executive Officer reports to someone other than directly to the Board.

## Exhibit 10.2

**Exhibit 10.2**

**Notice of Grant of**

**Restricted Stock Award, Performance-based Equity Award, and** <br> **Performance-based Cash Award**

------

**Name**

**Street Address**

**City, State Zip Code**

------

Subject to the terms and conditions of the Farmers National Banc Corp. 2022 Equity Incentive Plan and the Farmers National Banc Corp. Long-Term Incentive Plan (collectively, the "Plans"), and the accompanying Restricted Stock Award Agreement, Performance-Based Equity Award Agreement, and Performance-Based Cash Award Agreement (collectively, the "Award Agreements"), you have been granted Shares of Restricted Stock, Performance-based Shares, and a Performance-based Cash Award (collectively, the "Awards") as follows:

**Grant Date: [___________], 2026**

------

**Number of Shares or $:** Your Awards consist of the following:

**______** Shares of Restricted Stock

______ Performance-based Shares

------

$_____ Target Performance-based Cash

------

**Vesting Schedule:** Your Awards of Shares of Restricted Stock, Performance-based Shares, and Performance-based Cash will be subject to vesting on [________], 2029 (the "Normal Vesting Date"), subject to all other terms and conditions described in the respective Award Agreements.

**Settlement:** Your Awards will be settled in Shares or cash, depending on the Award, as described in the respective Award Agreements.

This Notice of Grant and the accompanying Award Agreements describe your Awards and the terms and conditions of your Awards. To ensure you fully understand these terms and conditions, you should:

● Read each Plan carefully to ensure you understand how the Plan works; and

● Read this Notice of Grant and each corresponding Award Agreement carefully to ensure you understand the nature of your Award and what you must do to earn it.

You may contact Mark Nicastro by telephone (330-533-5025) or email (mnicastro@farmersbankgroup.com) if you have any questions about your Awards or Award Agreements.

---

| | | |
|:---|:---|:---|
| **LTIP Opportunity Percentage** | **Grant Date Annual Salary** | **Grant Date Share Price (30-day Trailing Average)** |

---

## Exhibit 10.3

EXHIBIT 10.3

**FARMERS NATIONAL BANC CORP.**

**PERFORMANCE-BASED EQUITY AWARD AGREEMENT**

**(2026)** Farmers National Banc Corp. (the "<u>Company</u>") hereby grants the undersigned Participant an Award pursuant to the Farmers National Banc Corp. 2022 Equity Incentive Plan (the "<u>Equity LTI Plan</u>") as evidenced by the Notice of Grant accompanying this Award Agreement (the "<u>Grant Notice</u>"), and as further described in this Award Agreement (this "<u>Award Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;1. *Nature of Award:* Effective as of the date specified in the Grant Notice (the " <u>Grant Date</u> "), the Company hereby grants to the individual identified in the Grant Notice (the " <u>Participant</u> " or " <u>you</u> ") the Award of Performance-based Shares as set forth in the Grant Notice (the " <u>Award</u> "). The Award is subject to the terms and conditions described in the Equity LTI Plan, this Award Agreement and the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;2. *Performance Period:* The three-year period beginning on January 1, 2026 and ending on December 31, 2028 (the " <u>Performance Period</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;3. *Target Equity Award as Percentage of Base Compensation:* ____% x .50 (the " <u>Target Performance-Based Equity Award</u> ").

&nbsp;&nbsp;&nbsp;&nbsp;4. *Earning an Award:* The Participant shall be eligible to receive a benefit in Shares equal in value between 0% and 200% of the Target Performance-Based Equity Award, based on achievement during the Performance Period of the Performance Objective set forth in the table below. Performance between two stated levels will be interpolated when determining the percentage of the Target Performance-Based Equity Award earned.

The amount of the Target Performance-Based Equity Award that may be earned in Shares ("<u>Performance-based Shares</u>") will be based on the sum of the Company's return on average tangible common equity for each fiscal year during the Performance Period, as adjusted, divided by three ("<u>Average ROATCE</u>"), compared to the adjusted Average ROATCE of the Company's Peer Group during the Performance Period ("<u>Relative Average ROATCE</u>"). The total, maximum number of Performance-based Shares described in the Grant Notice eligible to be earned was determined by (i) dividing the dollar amount of the Participant's Target Performance-Based Equity Award by the average reported closing price of a Share during the thirty (30) day period ending on the day prior to the Grant Date of this Award, and (ii) multiplying the result by 200% (x 2.0), rounded to the nearest whole Share. Therefore, between 0% and 100% of the Performance-based Shares are subject to vesting on the "<u>Normal Vesting Date</u>" stated in the Grant Notice, in accordance with the following schedule and percentages:

---

| | |
|:---|:---|
| Performance Objective:<br> Relative Average ROATCE for Performance Period | Percentage of Performance-based Shares Earned |
| Less than Peer Group 25<sup>th</sup> percentile | 0% |
| Equal to Peer Group 25<sup>th</sup> percentile (threshold) | 10% |
| Equal to Peer Group 50<sup>th</sup> percentile (target) | 50% |
| Equal to or higher than Peer Group 75<sup>th</sup> percentile (max) | 100% |

---

For these purposes: (i) Relative Average ROATCE shall be determined by the Committee in its sole discretion, including adjusting items; and (ii) the Committee shall select the institutions constituting, and make such periodic adjustments as it determines appropriate to, the "<u>Peer Group</u>" in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;5. *Payment of Award*: With respect to the Performance Period, the Committee shall certify the level of achievement of the Performance Objective set forth in Section 4 and determine the amount payable with respect to your Award based on such level of achievement. Payment of the Award shall be made to the Participant on the Normal Vesting Date in the form of a number of Shares determined by multiplying the applicable percentage for the level of performance certified by the Committee times the Participant's total number of Performance-based Shares. Any Performance-based Shares that do not vest as of the Normal Vesting Date will be forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;6. *Limitations on Payment of Award:* The Committee may, in its sole discretion, reduce the amount payable with respect to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;7. *Forfeiture of Awards:* If the Company is required to prepare an accounting restatement due to material non-compliance of the Company, as a result of misconduct by a Participant, with any financial reporting requirement under any applicable laws, the Participant shall reimburse the Company for all amounts received under the Equity LTI Plan within thirty (30) days after receipt of notice of the same from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;8. *Effect of Termination:* This Award may be forfeited if the Participant's employment terminates prior to the Normal Vesting Date, although it will depend on the reason for termination as provided below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Termination Due to Death, Disability or Retirement</u>. If your employment with the Company and its Affiliates terminates due to your death, Disability, or Retirement, you will vest in a prorated portion of your Performance-based Shares determined by multiplying the number of your Performance-based Shares by a fraction, the numerator of which is the number of whole months you were employed from the Grant Date to the date of your termination due to death, Disability or Retirement, and the denominator of which is thirty-six (36). Payment of the Award shall be made to the Participant in the form of a number of Shares determined by multiplying such pro rata portion of your Performance-based Shares by the applicable percentage for the level of performance certified by the Committee, with performance based on the Company's Relative Average ROATCE for the portion of the Performance Period that ended on the last day of the calendar quarter immediately preceding the date of termination. Such settlement of the Award will occur within ninety (90) days following the date of termination. Any Performance-based Shares that do not vest or are not so settled will be forfeited. For purposes of this Award Agreement, " <u>Retirement</u> " means termination (other than for Cause (as defined in Exhibit A attached hereto)) after attaining either age fifty-five (55) with at least ten (10) years of service with the Company and the Affiliates or age sixty-two (62) with at least five (5) years of service with the Company and the Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Termination without Cause or by the Participant for Good Reason</u>. If your employment with the Company and its Affiliates is terminated by the Company or its Affiliate without Cause, or you terminate your employment for Good Reason (as defined in Exhibit A attached hereto), you will vest in and receive a prorated portion of your Performance-based Shares determined in the same manner as described in Section 8(a) above based on your termination date. Such settlement will occur within ninety (90) days following the date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination for any Other Reason</u>. If your employment with the Company and its Affiliates terminates under any other circumstance (including if your employment is terminated by the Company or any Affiliate for Cause, regardless of whether such termination could also constitute a Retirement), your Performance-based Shares will be forfeited on your termination date.

&nbsp;&nbsp;&nbsp;&nbsp;9. *Effect of Change in Control*: Notwithstanding the foregoing, if a Change in Control occurs after the Grant Date, your Performance-based Shares will be subject to the additional terms and conditions described in this Section 9. If such a Change in Control occurs prior to the Normal Vesting Date and on the date of such Change in Control or within two (2) years thereafter your employment is terminated by the Company, an Affiliate or a successor in interest for any reason other than for Cause or by you for Good Reason, you shall be entitled to receive a number of Shares determined as though the Performance Objective had been satisfied at the "target" level of achievement for the Performance Period. Therefore, 50% of your unvested Performance-based Shares which remain unvested as of the termination date will fully vest. Such settlement will occur within sixty (60) days following the date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;10. *Restrictive Covenants:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Solicitation</u>. The Participant acknowledges and agrees that as a condition to and in consideration of this Award Agreement, during the term of the Participant's employment and for a period of twenty-four (24) months thereafter (the "Non-Solicitation Restrictive Period"), the Participant will not, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Solicit, engage or otherwise interfere with any customer or client who is at the time of termination or was within the preceding six (6) months of termination a customer or client of the Company, its Affiliate or any other related entity that employed the Participant for the purposes of directly or indirectly furnishing any financial or banking services that a national banking association, bank holding company, state bank, savings and loan association or other regulated financial institution is permitted by law to conduct or furnish on the date the Participant's employment is terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Employ, solicit for employment, engage or otherwise interfere with any person who is at the time of termination or was within the preceding six (6) months of termination employed by, engaged by, or providing services to the Company, its Affiliates or any related entity, or otherwise directly or indirectly induce or take any action which would encourage or influence any such person to leave that person's employment or engagement, or terminate, reduce or modify their business or relationship with the Company, or any of its Affiliates or related entities.

The restrictive covenants and the Non-Solicitation Restrictive Period provided for herein will not be construed to limit the application of any other restrictive covenant or restriction period set forth in any other agreement entered into between the Participant and the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Nondisclosure and Non-appropriation of Information</u>. The Participant recognizes and acknowledges that while employed by the Company or any Affiliate, the Participant will have access to, learn, be provided with and, in some cases, prepare and create, certain Confidential Information (as defined in Section 10(c) below), proprietary information and/or trade secrets of the Company and/or any Affiliate, including, but not limited to, processes, financial information, pricing information, operating techniques, marketing processes, training techniques, customer, vendor, and referral source lists, price and cost information, files and forms, (collectively, the " <u>Trade Secrets</u> "), all of which are of substantial value to the Company and/or any Affiliate and the businesses conducted by them. The Participant expressly covenants and agrees that the Participant will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Hold in a fiduciary capacity and not reveal, communicate, use or cause to be used for the Participant's own benefit or divulge during the period of employment by the Company and/or any Affiliate and for an indefinite period thereafter, any Confidential Information, proprietary information or Trade Secrets now or hereafter owned by the Company or any Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Not sell, exchange, give away, or otherwise dispose of Confidential Information, proprietary information or Trade Secrets now or hereafter owned by the Company and/or any Affiliate, whether the same will or may have been originated or discovered by the Company, any Affiliate, the Participant or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Not reveal, divulge or make known to any person, firm, company or corporation any Confidential Information, proprietary information or Trade Secrets of the Company and/or any Affiliate, unless such communication is required pursuant to a compulsory proceeding in which the Participant's failure to provide such Confidential Information, proprietary information or Trade Secrets would subject the Participant to criminal or civil sanctions and then only to the extent that the Participant provides prior notice to the Company prior to disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Return to the Company before termination of employment with the Company or any Affiliate, any and all written information, material or equipment that constitutes, contains or relates in any way to Confidential Information, proprietary information, Trade Secrets and any other documents, equipment, and material of any kind relating in any way to the business of the Company or any Affiliate, which are in the Participant's possession, custody and control and which are or may be property of the Company or any Affiliate, whether confidential or not, including any and all copies thereof which may have been made by or for the Participant and that the Participant will maintain no copies thereof after termination of the Participant's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Definition of</u> <u>"</u> <u>Confidential Information</u> <u>"</u>. "Confidential Information" means all information disclosed to or known by the Participant as a consequence of or through the Participant's employment with the Company or any Affiliate which either has not been made generally available to the public and is useful or of value to the current or anticipated business of the Company or any Affiliate, or has been identified to the Participant as confidential, either orally or in writing. Confidential Information includes without limitation computer software and programs; marketing, manufacturing, organizational research and development; business plans; sales forecasts; identities, competence, abilities and compensation of other employees of the Company or any Affiliate; pricing cost and other financial information; current and prospective customer and supplier lists and information about customers, suppliers or their employees; information concerning planned or pending acquisitions or divestitures; and information concerning purchases of equipment or property. Confidential Information does not include information which is in or hereafter enters the public domain through no fault of the Participant, or is disclosed by a third party having the legal right to use and disclose the information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Other Terms and Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant acknowledges that the Participant is entering into this Award Agreement voluntarily and has given careful consideration to the restraints imposed by this Award Agreement. Irrespective of the manner of any employment termination, the restraints imposed by this Award Agreement will be operative during their full time periods and throughout the restrictive areas set forth in this Award Agreement. The Participant further acknowledges that if the Participant's employment with the Company or any Affiliate terminates for any reason the Participant can earn a livelihood without violating the foregoing restrictions and that the Participant's ability to earn a livelihood without violating these restrictions is a material employment condition. The Participant acknowledges and recognizes that if the Participant's employment terminates for any reason, this Section 10 of this Award Agreement will survive any such termination and any expiration of this Award Agreement. Further, the Participant agrees and consents that this Award Agreement is assignable by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Participant agrees that if a court of law finds that the provisions of this Award Agreement are too harsh so that they are unenforceable, then such court of law may enforce those restrictions and limitations which are acceptable and deemed enforceable by the court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event the Participant breaches the terms of this Award Agreement, it is agreed that all time periods contained in this Award Agreement will be tolled until the Participant ceases to breach this Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Injunction</u>. The parties acknowledge and agree, due to the subject matter of this Award Agreement, that money damages will be an inadequate remedy for a breach by the Participant of any of the obligations hereunder. Consequently, if the Participant breaches or threatens to breach any of the obligations under this Award Agreement, the Participant agrees that the Company shall have the right, in addition to any other rights or remedies available to it at law or in equity, to obtain equitable relief, including, without limitation, injunctive relief and specific performance, in the event of any breach or threatened breach. Further, the parties hereto agree and declare that it may be impossible to measure in monetary terms the damages that may accrue to the Company or any Affiliate by reason of the Participant's violation of this Award Agreement. Therefore, in the event that the Company, or any successor in interest thereto, shall institute an action or proceeding to enforce the provisions of this Award Agreement, each party or other person against whom such action or proceeding is brought shall and hereby does, in advance, waive the claim or defense that there is adequate remedy at law. In the event such injunctive relief is warranted and obtained by the Company, the Participant agrees to pay all costs of said action, including reasonable attorney fees.

&nbsp;&nbsp;&nbsp;&nbsp;11. *Miscellaneous:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Non-Transferability</u>. The Award may not be sold, disposed of, transferred, pledged, assigned or otherwise alienated or hypothecated, except by will or the laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Beneficiary</u>. Unless otherwise specifically designated by the Participant in writing on a form provided by the Company, the Participant's beneficiary under the Equity LTI Plan shall be the Participant's spouse or, if no spouse survives the Participant, the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Right to Continued Service or to Awards</u>. The granting of the Award shall impose no obligation on the Company or any Affiliate to continue the employment of the Participant or interfere with or limit the right of the Company or any Affiliate to terminate the employment of the Participant at any time, with or without Cause, which right is expressly reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Tax Withholding</u>. The Company or an Affiliate, as applicable, shall have the power and the right to deduct, withhold or collect any amount required by law or regulation to be withheld with respect to any taxable event arising with respect to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Requirements of Law</u>. The grant of the Award shall be subject to all applicable laws, rules and regulations (including applicable federal and state securities laws) and to all required approvals of any governmental agencies or national securities exchange, market or other quotation system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Governing Law</u>. This Award Agreement shall be governed by and construed in accordance with the laws of the State of Ohio, without regard to its conflict of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Award Subject to Equity LTI Plan</u>. The Award is subject to the terms and conditions described in this Award Agreement and the Equity LTI Plan, which is incorporated by reference into and made a part of this Award Agreement. In the event of a conflict between the terms of the Equity LTI Plan and the terms of this Award Agreement, the terms of the Equity LTI Plan will govern. The Committee has the sole responsibility of interpreting the Equity LTI Plan and this Award Agreement, and its determination of the meaning of any provision in the Equity LTI Plan or this Award Agreement will be binding on the Participant. Capitalized terms that are not defined in this Award Agreement have the same meanings as in the Equity LTI Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Section 409A</u>. If the Participant is determined to be a "specified employee" (within the meaning of Section 409A of the Code and as determined under the Company's policy for determining specified employees), the Participant shall not be entitled to payment or to distribution of any portion of the Award that is subject to Section 409A of the Code (and for which no exception applies) and is payable or distributable on account of the Participant's "separation from service" (within the meaning of Section 409A of the Code) until the expiration of six months from the date of such separation from service (or, if earlier, the Participant's death). Such Award, or portion thereof, shall be paid or distributed on the first business day of the seventh month following such separation from service. If any portion of the Award is subject to Section 409A of the Code (and no exception applies) and such portion is to be settled during a designated period that begins in one taxable year and ends in a second taxable year, such portion of the Award shall be settled in the later of the two taxable years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Signature in Counterparts</u>. This Award Agreement may be signed in counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument.

[signature page attached]

------

**PARTICIPANT**

______________________________________ Date: ______________________

Print Name:<u> </u><u> </u><u> </u><u> </u><u> </u>

**FARMERS NATIONAL BANC CORP.**

By: _________________________________ Date: ______________________

Its: _________________________________

------

EXHIBIT A

DEFINITIONS OF "CAUSE" AND "GOOD REASON"

**"Cause**" means that, in the reasonable judgment of the Committee, any of the following events have occurred: (1) the willful or negligent failure by the Participant to substantially perform the Participant's duties with the Company and, after written notification by the Company to the Participant, the continued failure of the Participant to substantially perform such duties; (2) the willful or negligent engagement by the Participant in conduct which is demonstrably and materially injurious to the Company, financially or otherwise; (3) action or inaction by the Participant that constitutes a breach of fiduciary duty with respect to the Company or any of its subsidiaries; (4) the violation of any material written policy, rule or regulation of the Company; or (5) the Participant's material breach of any agreement in respect of confidentiality with the Company, whether or not entered into after the Grant Date.

**"Good Reason**" means the occurrence of any of the following: (1) a reduction in the Participant's annual base salary rate, unless such reduction generally applies to other Participants regardless of the reason(s) therefor; (2) a substantial diminution in the Participant's duties, authorities or responsibilities; or (3) the relocation of the Participant's principal place of employment with the Company such that (a) the distance from the former principal place of employment to the relocated principal place of employment is over fifty (50) miles and (b) the distance from the Participant's primary residence to the relocated principal place of employment is over fifty (50) miles; provided, however, that Good Reason shall exist only to the extent that the Participant provides the Company with written notice of the Participant's intention to terminate employment with the Company for Good Reason that specifies the condition(s) constituting Good Reason and the Company fails to correct such condition(s) within ten (10) business days from receipt of such written notice. Notwithstanding the foregoing, Good Reason shall cease to exist for an event on the one hundred and twentieth (120<sup>th</sup>) day following the later of its occurrence or the Participant's knowledge thereof, unless the Participant has given the Company written notice of such condition and of the Participant's intent to terminate for Good Reason prior to such date. With respect to the Chief Executive Officer only, Good Reason shall also include a change in responsibilities such that the Chief Executive Officer reports to someone other than directly to the Board.

## Exhibit 10.4

EXHIBIT 10.4

**FARMERS NATIONAL BANC CORP.**

**RESTRICTED STOCK AWARD AGREEMENT**

**(2026)** Farmers National Banc Corp. (the "<u>Company</u>") hereby grants the undersigned Participant an Award pursuant to the Farmers National Banc Corp. 2022 Equity Incentive Plan (the "<u>Plan</u>") as evidenced by the Notice of Grant accompanying this Award Agreement (the "<u>Grant Notice</u>"), and as further described in this Award Agreement (this "<u>Award Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;1. *Nature of Award:* Effective as of the date specified in the Grant Notice (the " <u>Grant Date</u> "), the Company hereby grants to the individual identified in the Grant Notice (the " <u>Participant</u> " or " <u>you</u> ") the Award of Restricted Stock as set forth in the Grant Notice (the " <u>Award</u> "). The Award is subject to the terms and conditions described in the Plan, this Award Agreement and the Grant Notice.

&nbsp;&nbsp;&nbsp;&nbsp;2. *Number of Shares:* The number of Shares of Restricted Stock in your Award is set forth in the Grant Notice. For purposes of this Award Agreement, each whole Share awarded represents the right to receive one Share.

&nbsp;&nbsp;&nbsp;&nbsp;3. *Vesting:* The Shares of Restricted Stock in your Award will be settled or will be forfeited depending on whether the terms and conditions described in the Grant Notice, this Award Agreement, and the Plan are satisfied. Accordingly, your Shares of Restricted Stock normally will vest on the " <u>Normal Vesting Date</u> " in accordance with the schedule identified in the Grant Notice. If the scheduled Normal Vesting Date is a non-business day, the next following business day will be considered the Normal Vesting Date.

&nbsp;&nbsp;&nbsp;&nbsp;4. *Forfeiture of Awards:* If the Company is required to prepare an accounting restatement due to material non-compliance of the Company, as a result of misconduct by a Participant, with any financial reporting requirement under any applicable laws, the Participant shall reimburse the Company for all amounts received under the Plan within thirty (30) days after receipt of notice of the same from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;5. *Effect of Termination:* This Award may be forfeited if the Participant's employment terminates prior to the Normal Vesting Date, although it will depend on the reason for termination as provided below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Termination Due to Death or Disability</u>. If your employment with the Company and its Affiliates terminates due to your death or Disability, your Shares of Restricted Stock will vest fully on the date of your termination due to death or Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Termination Due to Retirement</u>. If your employment with the Company and its Affiliates terminates due to your Retirement, you will vest in a prorated portion of your Shares of Restricted Stock determined by multiplying such number of Shares of Restricted Stock by a fraction, the numerator of which is the number of whole months you were employed from the Grant Date to the date of Retirement, and the denominator of which is thirty-six (36). For purposes of this Award Agreement, " <u>Retirement</u> " means termination (other than for Cause (as defined in Exhibit A attached hereto)) after attaining either age fifty-five (55) with at least ten (10) years of service with the Company and the Affiliates or age sixty-two (62) with at least five (5) years of service with the Company and the Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Termination without Cause or by the Participant for Good Reason</u>. If your employment with the Company and its Affiliates is terminated by the Company or its Affiliate without Cause, or you terminate your employment for Good Reason (as defined in Exhibit A attached hereto), you will vest in and receive a prorated portion of your Award Shares determined in the same manner as described in Section 5.b. above based on your termination date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Termination for any Other Reason</u>. If your employment with the Company and its Affiliates terminates under any other circumstance (including if your employment is terminated by the Company or any Affiliate for Cause, regardless of whether such termination could also constitute a Retirement), your Shares of Restricted Stock will be forfeited on your termination date.

&nbsp;&nbsp;&nbsp;&nbsp;6. *Effect of Change in Control:* Notwithstanding the foregoing, if a Change in Control occurs after the Grant Date, your Shares of Restricted Stock will be subject to the additional terms and conditions described in this Section 6. If such a Change in Control occurs prior to the Normal Vesting Date and on the date of such Change in Control or within two (2) years thereafter your employment is terminated by the Company, an Affiliate or a successor in interest for any reason other than for Cause or by you for Good Reason, your Shares of Restricted Stock which remain unvested as of the termination date will fully vest.

&nbsp;&nbsp;&nbsp;&nbsp;7. *Restrictive Covenants:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Non-Solicitation</u>. The Participant acknowledges and agrees that as a condition to and in consideration of this Award Agreement, during the term of the Participant's employment and for a period of twenty-four (24) months thereafter (the " <u>Non-Solicitation Restrictive Period</u> "), the Participant will not, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Solicit, engage or otherwise interfere with any customer or client who is at the time of termination or was within the preceding six (6) months of termination a customer or client of the Company, its Affiliate or any other related entity that employed the Participant for the purposes of directly or indirectly furnishing any financial or banking services that a national banking association, bank holding company, state bank, savings and loan association or other regulated financial institution is permitted by law to conduct or furnish on the date the Participant's employment is terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Employ, solicit for employment, engage or otherwise interfere with any person who is at the time of termination or was within the preceding six (6) months of termination employed by, engaged by, or providing services to the Company, its Affiliates or any related entity, or otherwise directly or indirectly induce or take any action which would encourage or influence any such person to leave that person's employment or engagement, or terminate, reduce or modify their business or relationship with the Company, or any of its Affiliates or related entities.

The restrictive covenants and the Non-Solicitation Restrictive Period provided for herein will not be construed to limit the application of any other restrictive covenant or restriction period set forth in any other agreement entered into between the Participant and the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Nondisclosure and Non-appropriation of Information</u>. The Participant recognizes and acknowledges that while employed by the Company or any Affiliate, the Participant will have access to, learn, be provided with and, in some cases, prepare and create, certain Confidential Information (as defined in Section 7.c. below), proprietary information and/or trade secrets of the Company and/or any Affiliate, including, but not limited to, processes, financial information, pricing information, operating techniques, marketing processes, training techniques, customer, vendor, and referral source lists, price and cost information, files and forms (collectively, the " <u>Trade Secrets</u> "), all of which are of substantial value to the Company and/or any Affiliate and the businesses conducted by them. The Participant expressly covenants and agrees that the Participant will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Hold in a fiduciary capacity and not reveal, communicate, use or cause to be used for the Participant's own benefit or divulge during the period of employment by the Company and/or any Affiliate and for an indefinite period thereafter, any Confidential Information, proprietary information or Trade Secrets now or hereafter owned by the Company or any Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Not sell, exchange, give away, or otherwise dispose of Confidential Information, proprietary information or Trade Secrets now or hereafter owned by the Company and/or any Affiliate, whether the same will or may have been originated or discovered by the Company, any Affiliate, the Participant or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Not reveal, divulge or make known to any person, firm, company or corporation any Confidential Information, proprietary information or Trade Secrets of the Company and/or any Affiliate, unless such communication is required pursuant to a compulsory proceeding in which the Participant's failure to provide such Confidential Information, proprietary information or Trade Secrets would subject the Participant to criminal or civil sanctions and then only to the extent that the Participant provides prior notice to the Company prior to disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Return to the Company before termination of employment with the Company or any Affiliate, any and all written information, material or equipment that constitutes, contains or relates in any way to Confidential Information, proprietary information, Trade Secrets and any other documents, equipment, and material of any kind relating in any way to the business of the Company or any Affiliate, which are in the Participant's possession, custody and control and which are or may be property of the Company or any Affiliate, whether confidential or not, including any and all copies thereof which may have been made by or for the Participant and that the Participant will maintain no copies thereof after termination of the Participant's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Definition of</u> <u>"</u> <u>Confidential Information</u> <u>"</u>. " <u>Confidential Information</u> " means all information disclosed to or known by the Participant as a consequence of or through the Participant's employment with the Company or any Affiliate which either has not been made generally available to the public and is useful or of value to the current or anticipated business of the Company or any Affiliate, or has been identified to the Participant as confidential, either orally or in writing. Confidential Information includes without limitation: computer software and programs; marketing, manufacturing, organizational research and development; business plans; sales forecasts; identities, competence, abilities and compensation of other employees of the Company or any Affiliate; pricing cost and other financial information; current and prospective customer and supplier lists and information about customers, suppliers or their employees; information concerning planned or pending acquisitions or divestitures; and information concerning purchases of equipment or property. Confidential Information does not include information which is in or hereafter enters the public domain through no fault of the Participant, or is disclosed by a third party having the legal right to use and disclose the information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Other Terms and Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Participant acknowledges that the Participant is entering into this Award Agreement voluntarily and has given careful consideration to the restraints imposed by this Award Agreement. Irrespective of the manner of any employment termination, the restraints imposed by this Award Agreement will be operative during their full time periods and throughout the restrictive areas set forth in this Award Agreement. The Participant further acknowledges that if the Participant's employment with the Company or any Affiliate terminates for any reason the Participant can earn a livelihood without violating the foregoing restrictions and that the Participant's ability to earn a livelihood without violating these restrictions is a material employment condition. The Participant acknowledges and recognizes that if the Participant's employment terminates for any reason, this Section 7 of this Award Agreement will survive any such termination and any expiration of this Award Agreement. Further, the Participant agrees and consents that this Award Agreement is assignable by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Participant agrees that if a court of law finds that the provisions of this Award Agreement are too harsh so that they are unenforceable, then such court of law may enforce those restrictions and limitations which are acceptable and deemed enforceable by the court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event the Participant breaches the terms of this Award Agreement, it is agreed that all time periods contained in this Award Agreement will be tolled until the Participant ceases to breach this Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Injunction</u>. The parties acknowledge and agree, due to the subject matter of this Award Agreement, that money damages will be an inadequate remedy for a breach by the Participant of any of the obligations hereunder. Consequently, if the Participant breaches or threatens to breach any of the obligations under this Award Agreement, the Participant agrees that the Company shall have the right, in addition to any other rights or remedies available to it at law or in equity, to obtain equitable relief, including, without limitation, injunctive relief and specific performance, in the event of any breach or threatened breach. Further, the parties hereto agree and declare that it may be impossible to measure in monetary terms the damages that may accrue to the Company or any Affiliate by reason of the Participant's violation of this Award Agreement. Therefore, in the event that the Company, or any successor in interest thereto, shall institute an action or proceeding to enforce the provisions of this Award Agreement, each party or other person against whom such action or proceeding is brought shall and hereby does, in advance, waive the claim or defense that there is adequate remedy at law. In the event such injunctive relief is warranted and obtained by the Company, the Participant agrees to pay all costs of said action, including reasonable attorney fees.

&nbsp;&nbsp;&nbsp;&nbsp;8. *Miscellaneous:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Non-Transferability</u>. The Award may not be sold, disposed of, transferred, pledged, assigned or otherwise alienated or hypothecated, except by will or the laws of descent and distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Beneficiary</u>. Unless otherwise specifically designated by the Participant in writing on a form provided by the Company, the Participant's beneficiary under the Plan shall be the Participant's spouse or, if no spouse survives the Participant, the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. <u>No Right to Continued Service or to Awards</u>. The granting of the Award shall impose no obligation on the Company or any Affiliate to continue the employment of the Participant or interfere with or limit the right of the Company or any Affiliate to terminate the employment of the Participant at any time, with or without Cause, which right is expressly reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Tax Withholding</u>. The Company or an Affiliate, as applicable, shall have the power and the right to deduct, withhold or collect any amount required by law or regulation to be withheld with respect to any taxable event arising with respect to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Requirements of Law</u>. The grant of the Award shall be subject to all applicable laws, rules and regulations (including applicable federal and state securities laws) and to all required approvals of any governmental agencies or national securities exchange, market or other quotation system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Governing Law</u>. This Award Agreement shall be governed by and construed in accordance with the laws of the State of Ohio, without regard to its conflict of law principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. <u>Award Subject to Plan</u>. The Award is subject to the terms and conditions described in this Award Agreement and the Plan, which is incorporated by reference into and made a part of this Award Agreement. In the event of a conflict between the terms of the Plan and the terms of this Award Agreement, the terms of the Plan will govern. The Committee has the sole responsibility of interpreting the Plan and this Award Agreement, and its determination of the meaning of any provision in the Plan or this Award Agreement will be binding on the Participant. Capitalized terms that are not defined in this Award Agreement have the same meanings as in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. <u>Section 409A Payment Delay</u>. If the Participant is determined to be a "specified employee" (within the meaning of Section 409A of the Code and as determined under the Company's policy for determining specified employees), the Participant shall not be entitled to payment or to distribution of any portion of the Award that is subject to Section 409A of the Code (and for which no exception applies) and is payable or distributable on account of the Participant's "separation from service" (within the meaning of Section 409A of the Code) until the expiration of six months from the date of such separation from service (or, if earlier, the Participant's death). Such Award, or portion thereof, shall be paid or distributed on the first business day of the seventh month following such separation from service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Signature in Counterparts</u>. This Award Agreement may be signed in counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **PARTICIPANT**<br> Signature<br> Print<br> Date:<u> </u><u> </u><u> </u><u> </u><u> </u><u> </u> | **FARMERS NATIONAL BANC CORP.**<br> By:<u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><br> Its:<u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><br> Date:<u> </u><u> </u><u> </u><u> </u><u> </u><u> </u> |

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EXHIBIT A

DEFINITIONS OF "CAUSE" AND "GOOD REASON"

**"Cause**" means that, in the reasonable judgment of the Committee, any of the following events have occurred: (1) the willful or negligent failure by the Participant to substantially perform the Participant's duties with the Company and, after written notification by the Company to the Participant, the continued failure of the Participant to substantially perform such duties; (2) the willful or negligent engagement by the Participant in conduct which is demonstrably and materially injurious to the Company, financially or otherwise; (3) action or inaction by the Participant that constitutes a breach of fiduciary duty with respect to the Company or any of its subsidiaries; (4) the violation of any material written policy, rule or regulation of the Company; or (5) the Participant's material breach of any agreement in respect of confidentiality with the Company, whether or not entered into after the Grant Date.

**"Good Reason**" means the occurrence of any of the following: (1) a reduction in the Participant's annual base salary rate, unless such reduction generally applies to other Participants regardless of the reason(s) therefor; (2) a substantial diminution in the Participant's duties, authorities or responsibilities; or (3) the relocation of the Participant's principal place of employment with the Company such that (a) the distance from the former principal place of employment to the relocated principal place of employment is over fifty (50) miles and (b) the distance from the Participant's primary residence to the relocated principal place of employment is over fifty (50) miles; provided, however, that Good Reason shall exist only to the extent that the Participant provides the Company with written notice of the Participant's intention to terminate employment with the Company for Good Reason that specifies the condition(s) constituting Good Reason and the Company fails to correct such condition(s) within ten (10) business days from receipt of such written notice. Notwithstanding the foregoing, Good Reason shall cease to exist for an event on the one hundred and twentieth (120<sup>th</sup>) day following the later of its occurrence or the Participant's knowledge thereof, unless the Participant has given the Company written notice of such condition and of the Participant's intent to terminate for Good Reason prior to such date. With respect to the Chief Executive Officer only, Good Reason shall also include a change in responsibilities such that the Chief Executive Officer reports to someone other than directly to the Board.

## Exhibit 31.1

**Exhibit 31.1** 

<u>CERTIFICATIONS</u>

Certification of Chief Executive Officer

CERTIFICATION FOR QUARTERLY REPORT ON FORM 10-Q

I, Kevin J. Helmick certify that:

1) I have reviewed this quarterly report on Form 10-Q of Farmers National Banc Corp.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5) The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Kevin J. Helmick

Kevin J. Helmick

Chief Executive Officer

May 7, 2026

## Exhibit 31.2

**Exhibit 31.2** 

<u>CERTIFICATIONS</u>

Certification of Chief Financial Officer

CERTIFICATION FOR QUARTERLY REPORT ON FORM 10-Q

I, A. Troy Adair certify that:

1) I have reviewed this quarterly report on Form 10-Q of Farmers National Banc Corp.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5) The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ A. Troy Adair

A. Troy Adair

Chief Financial Officer

May 7, 2026

## Exhibit 32.1

**Exhibit 32.1** 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Farmers National Banc Corp. (the "Corporation") on Form 10-Q for the period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I Kevin J. Helmick, Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ Kevin J. Helmick

Kevin J. Helmick

Chief Executive Officer

May 7, 2026

## Exhibit 32.2

**Exhibit 32.2** 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Farmers National Banc Corp. (the "Corporation") on Form 10-Q for the period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I A. Troy Adair, Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ A. Troy Adair

A. Troy Adair

Chief Financial Officer

May 7, 2026