Farmers National Banc Corp. (FMNB) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Farmers National Banc Corp. (FMNB) Financial Services Profile

Farmers National Banc Corp. stands out in the regional banking sector by offering a comprehensive suite of financial services, including commercial banking, trust, and insurance, with a strong presence in northeastern Ohio and southwestern Pennsylvania.

What Is the Investment Thesis for FMNB?

Farmers National Banc Corp. presents a solid investment thesis characterized by a market capitalization of $696M and a P/E ratio of 8.1, indicating potential value relative to earnings. The company boasts a profit margin of 20.2% and a gross margin of 65.0%, reflecting operational efficiency and effective cost management. Key growth catalysts include the expansion of its banking services and insurance offerings, which are expected to drive revenue growth in the coming years. Furthermore, the company's dividend yield of 4.80% provides an attractive return for income-focused investors. However, potential risks include regulatory challenges and competitive pressures in the regional banking sector, which could impact profitability and growth prospects.

Based on FMP financials and quantitative analysis

FMNB Key Highlights

Market capitalization of $696M, indicating a stable market presence in regional banking.

• P/E ratio of 8.1, suggesting potential value compared to earnings in the financial services sector.
• Profit margin of 20.2%, showcasing strong operational efficiency.
• Gross margin of 65.0%, exceeding many industry peers and reflecting effective cost management.
• Dividend yield of 4.80%, appealing to income-focused investors.

Who Are FMNB's Competitors?

FMNB is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FMNB's Key Strengths?

Long-standing reputation and brand recognition in the regional banking sector.

• Diverse service offerings that cater to both personal and business clients.
• Strong financial metrics, including high profit and gross margins.
• Community-focused approach that enhances customer loyalty and retention.

What Are FMNB's Weaknesses?

Limited geographic presence compared to larger national banks.

• Dependence on the economic conditions of the northeastern Ohio market.
• Potential vulnerability to regulatory changes affecting the financial services industry.
• Relatively smaller scale may limit competitive pricing strategies.

What Could Drive FMNB Stock Higher?

Launch of enhanced digital banking platform aimed at improving customer experience and engagement.

• Expansion of insurance product offerings to capture a larger market share.
• Strategic partnerships with local businesses to strengthen community ties and enhance service offerings.
• Plans to open new branches in underserved markets to increase geographic reach.
• Implementation of new regulatory compliance measures to ensure adherence to evolving industry standards.

What Are the Key Risks for FMNB?

Financial-distress signal — its Altman Z-Score of 0.17 sits in the distress zone (elevated bankruptcy risk).

• Economic downturns that may affect loan performance and overall profitability.
• Regulatory challenges that could increase compliance costs and operational complexities.
• Increased competition from larger banks and fintech companies that may pressure market share.
• Vulnerability to market volatility impacting investment income and insurance products.

What Are the Growth Opportunities for FMNB?

• Growth opportunity 1: The expansion of digital banking services is a significant growth driver for Farmers National. As consumer preferences shift towards online banking, the company plans to enhance its digital platforms to improve customer experience and increase engagement. The digital banking market is projected to grow at a CAGR of 8.5% from 2023 to 2028, providing Farmers National with a substantial opportunity to capture new customers and retain existing ones.
• Growth opportunity 2: Farmers National's insurance services present another avenue for growth. With the property and casualty insurance market estimated to reach $1 trillion by 2027, the company aims to expand its offerings and market share in this segment. By leveraging its existing customer base and cross-selling insurance products, Farmers National can enhance its revenue streams and diversify its business model.
• Growth opportunity 3: The company's focus on trust and retirement services is expected to drive growth as demographics shift towards an aging population. With more individuals seeking retirement planning and estate management, Farmers National can capitalize on this trend by enhancing its service offerings and targeting this demographic. The retirement services market is projected to grow significantly, providing a robust opportunity for Farmers National to expand its client base.
• Growth opportunity 4: Geographic expansion into underserved markets in Ohio and Pennsylvania is a potential growth strategy for Farmers National. By opening new branches in areas with limited banking services, the company can tap into new customer segments and increase its market penetration. The regional banking sector is seeing a trend towards consolidation, and Farmers National's expansion could position it as a leader in these new markets.
• Growth opportunity 5: Farmers National's commitment to community involvement and local partnerships can enhance its brand reputation and customer loyalty. By engaging in community development initiatives and supporting local businesses, the company can strengthen its ties with the community, leading to increased customer retention and new business opportunities. This community-focused approach is increasingly valued by consumers, particularly in the regional banking space.

What Are FMNB's Competitive Advantages?

• Established brand with over 130 years of experience in the financial services industry.
• Strong community ties and customer relationships that enhance loyalty.
• Diverse range of services that cater to various financial needs.
• Operational efficiency reflected in high profit and gross margins.
• Focus on personalized service differentiates Farmers National from larger banks.

What Does FMNB Do?

Farmers National Banc Corp. was founded in 1887 in Canfield, Ohio, and has evolved into a multifaceted financial holding company. Initially focused on traditional banking, the company has expanded its offerings to include trust services, retirement consulting, insurance, and financial management. Today, Farmers National operates 47 banking locations across northeastern Ohio and one in southwestern Pennsylvania, serving a diverse clientele with a wide array of financial products. Its services encompass commercial and retail banking, including checking and savings accounts, various loan products, and credit card services. Additionally, the company provides personal and corporate trust services, estate settlement, retirement services, and property and casualty insurance products. Farmers National has positioned itself as a trusted financial partner in its communities, leveraging its long-standing history and expertise to cater to both individual and corporate clients. The company’s commitment to customer service and community involvement has solidified its reputation in the regional banking landscape, making it a key player in the financial services industry.

What Products and Services Does FMNB Offer?

• Provide commercial and retail banking services including checking and savings accounts.
• Offer various loan products such as mortgages, home equity loans, and installment loans.
• Deliver personal and corporate trust services, including estate settlement and trust administration.
• Provide retirement consulting and management services.
• Offer property and casualty insurance products through licensed representatives.
• Engage in financial management and investment in municipal securities.

How Does FMNB Make Money?

• Generate revenue through interest on loans and fees from banking services.
• Earn income from trust and retirement services, including management fees.
• Collect premiums from property and casualty insurance products.
• Leverage investment income from municipal securities and other financial instruments.
• Cross-sell financial products to existing customers to enhance revenue streams.

What Industry Does FMNB Operate In?

The regional banking sector is characterized by a competitive landscape with a focus on community-oriented services and customer relationships. Farmers National Banc Corp. operates within a market that is expected to grow as consumers increasingly seek personalized banking solutions. Trends such as digital banking and the demand for diversified financial services are reshaping the industry, presenting both opportunities and challenges. Farmers National's established presence in northeastern Ohio positions it favorably to capitalize on these trends, although it faces competition from both larger banks and emerging fintech companies.

Who Are FMNB's Key Customers?

• Individuals seeking personal banking and financial services.
• Small to medium-sized businesses requiring commercial banking solutions.
• Trust clients needing estate and retirement planning services.
• Local organizations looking for insurance products and financial management.
• Community members interested in personalized banking experiences.

Farmers National Banc Corp. Financial Trajectory

Farmers National Banc Corp. (FMNB) reported $72.8M in revenue for Q2 2026, reflecting 0.0% growth compared to the prior quarter. The company recorded net income of $16.3M, with diluted EPS of $0.36. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Financial Services. Across the four most recent quarters, FMNB averaged $0.36 in diluted EPS.

Company Profile

Farmers National Banc Corp. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Canfield, US. The company is led by CEO Kevin J. Helmick. FMNB has traded publicly since 1999.

How Farmers National Banc Corp. Is Valued

Farmers National Banc Corp. carries a market capitalization of $696M, placing it in the small-cap category. Relative to its peer group, FMNB's quantitative score of 79/100 is roughly in line with the peer average of 78/100.

Return on equity for Farmers National Banc Corp. stands at 9.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.9%, showing how much profit it generates from its asset base. FMNB trades at a trailing price-to-earnings ratio of 8.12, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.

Farmers National Banc Corp.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.17 places it in the distress zone, a signal of elevated financial risk.

Farmers National Banc Corp. has beaten Wall Street's EPS estimate in 4 of its last 8 reported quarters — more hits than misses.

Wall Street analysts project Farmers National Banc Corp. revenue of about $269.8M for fiscal 2026, with EPS near $1.57.

FMNB Financials

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What Investors Ask About Farmers National Banc Corp. (FMNB) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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