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Dec 31, 2025
Fidelity D & D Bancorp Q4 2025 Earnings Report
Farmers National Banc Corp. reported higher net income in Q4 2025 compared to the prior year, with solid performance across key segments and improved margins.
Key Takeaways
Farmers National Banc Corp. delivered strong Q4 2025 results, driven by increased net interest income, improved noninterest income, and margin expansion. Despite higher charge-offs, credit metrics remain stable and capital levels improved.
Net income rose to $14.6 million, with adjusted net income at $15.1 million excluding merger-related costs.
Net interest margin improved to 3.05%, driven by higher asset yields and lower funding costs.
Noninterest income increased to $12.1 million, supported by trust fees, insurance commissions, and annuity sales.
Allowance for credit losses to total loans remained stable at 1.11% despite higher net charge-offs.
Forward Guidance
Management expects continued net interest margin expansion in 2026 due to falling interest rates and remains optimistic about long-term shareholder value creation following the planned Middlefield Banc Corp. merger.
Positive Outlook
- Net interest margin expected to continue expanding in 2026.
- Company to benefit from additional Fed rate cuts as it is liability sensitive.
- Merger with Middlefield Banc Corp. expected to close in Q1 2026, expanding market footprint.
- Trust, insurance, and retirement plan businesses showing strong growth.
- Improved mark-to-market on investment portfolio due to declining rates.
Challenges Ahead
- Charge-offs increased in Q4, impacting provision for credit losses.
- Deposit runoff due to seasonal public fund withdrawals.
- Operating expenses increased due to merger and system conversion costs.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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