Farmers National Banc (FMNB) Stock Faces Rising Non Performing Loans After Q2 2026 Earnings

Farmers National Banc (FMNB) just posted Q2 2026 results with total revenue of US$68.0 million and basic EPS of US$0.39, alongside trailing twelve month revenue of US$218.4 million and EPS of US$1.49 that reflect year over year earnings growth of 31.7%. Over recent quarters, revenue has moved from US$43.5 million in Q2 2025 to US$68.0 million in Q2 2026, while quarterly EPS has ranged between roughly US$0.33 and US$0.39. This sets up a closer look at how a 30.4% net profit margin shapes the current rewards narrative for investors.

See our full analysis for Farmers National Banc.

With the latest numbers on the table, the next step is to see how Farmers National Banc’s earnings and margins line up with the prevailing narratives around growth potential, risks, and sustainability.

Curious how numbers become stories that shape markets? Explore Community Narratives

Farmers National Banc’s 31.7% earnings growth in focus

• Over the last 12 months, Farmers National Banc has generated net income of US$66.4 million and basic EPS of US$1.49, alongside a net profit margin of 30.4% compared with 29.8% a year earlier.
• What stands out for a bullish view is that reported earnings grew 31.7% over the past year while the five year average growth rate is 0.6% per year. This heavily supports the idea of an earnings upswing but also raises the question of how this period compares to a more typical run rate.
  • Supporters can point to trailing twelve month revenue of US$218.4 million and EPS of US$1.49 as evidence that recent performance is stronger than the longer term average trend.
  • At the same time, the gap between 31.7% recent earnings growth and 0.6% five year average growth highlights that the latest period sits well above the longer history, so readers may want to see if future results keep aligning with this higher level.

Loan book expansion and rising non performing loans

• Total loans in the reported quarterly data moved from US$3,240.9 million in Q1 2025 to US$4,788.4 million in Q1 2026, while non performing loans in those same quarters went from US$20.7 million to US$59.9 million.
• Bears who worry about credit risk will focus on non performing loans rising over this period and on the allowance for bad loans covering 91% of bad loans, because this supports concerns about how much of the loan book is backed by reserves and how that interacts with the larger loan balance.
  • Critics highlight that Q1 2026 non performing loans of US$59.9 million are higher than the US$26.2 million level seen in Q4 2025, which pairs with the below 100% allowance coverage figure to frame credit quality as a key area to watch.
  • On the other side of that bearish concern, net income excluding extra items has still been reported at US$16.3 million in Q1 2026 and US$23.0 million in Q2 2026, so the loan performance and reserve coverage are being weighed against earnings that remain positive in these periods.

Farmers National Banc valuation vs DCF fair value

• Farmers National Banc shares currently trade at US$15.00 with a P/E of 13.4x, compared with a DCF fair value of US$32.34, the broader US Banks industry P/E of 12.2x, and a peer average P/E of 14.3x.
• Supportive investors argue that the stock trading about 53.6% below the DCF fair value and at a P/E that sits above the industry but below peers, combined with a 4.53% dividend yield and the 30.4% net margin, supports a bullish case that the current price does not fully reflect the trailing earnings and margin profile.
  • What is most supportive of that stance is that trailing twelve month net income of US$66.4 million and EPS of US$1.49 are being valued at US$15.00 per share, which is below both the US$32.34 DCF fair value figure and the 14.3x peer P/E level cited.
  • At the same time, the 4.53% dividend yield and the reported 31.7% earnings growth over the last year are being priced at a P/E only modestly above the 12.2x US Banks industry level, which bullish readers may see as a key part of the reward side of the equation.

To see how other investors connect these earnings, valuation signals, and credit trends into a single storyline for Farmers National Banc, check out the Curious how numbers become stories that shape markets? Explore Community Narratives.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Farmers National Banc's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Mixed on Farmers National Banc after these earnings and credit numbers, or leaning one way already? Check the figures for yourself, weigh the earnings strength against the flagged concerns, and then shape your own stance using the 4 key rewards and 3 important warning signs.

See What Else Is Out There

For all the strengths in Farmers National Banc’s latest numbers, rising non performing loans and below 100% allowance coverage keep the overall risk profile in focus.

If you want to balance that kind of credit uncertainty, it is worth urgently scanning 82 resilient stocks with low risk scores to find companies where risk scores look more resilient.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com