Market Signal Briefing

CANFIELD, Ohio--(BUSINESS WIRE)--Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today announced net income of $12.5 million, or $0.33 per diluted share, for the third quarter of 2025 compared to $8.5 million, or $0.23 per diluted share, for the third quarter of 2024. Net income for the third quarter of 2025 included pretax losses for the sale of investment securities and other assets totaling $1.0 million and a charge of $3.1 million for consulting services associated with the strategic decision to transition core platform vendors. 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. Excluding these items (non-GAAP), net income for the third quarter of 2025 was $15.7 million, or $0.42 per diluted share.

Kevin J. Helmick, President and CEO, stated: “Farmers continues to deliver strong financial results, demonstrating the value our diversified financial services provide to customers across our Ohio and Pennsylvania communities. Throughout 2025, we have taken deliberate actions to further strengthen our operating platform and enhance our financial model, ensuring the Company is well positioned to drive sustainable growth and profitability for many years to come.”

“Today, we also announced the merger of the Middlefield Banc Corp, which is expected to close in the first quarter of 2026. Upon completion, Farmers will have more than $7.4 billion in assets, serving customers across attractive markets in Northeast and Central Ohio and Western Pennsylvania. Middlefield is a high-quality franchise with complementary markets and a strong community banking culture, and we believe the combination offers significant upside for our shareholders. I look forward to updating our investors as we focus on the successful completion and integration of this merger in the coming quarters,” concluded Mr. Helmick.

Balance Sheet

Total assets increased to $5.24 billion in the third quarter of 2025 from $5.18 billion at June 30, 2025 and $5.12 billion at December 31, 2024. Loans increased to $3.34 billion at September 30, 2025 from $3.30 billion at June 30, 2025 and $3.27 billion at December 31, 2024. The increase from the prior quarter was primarily due to strong growth in the commercial area with an increase in balances of $30.1 million, or 6.0% annualized growth.

Securities available for sale totaled $1.30 billion at September 30, 2025 compared to $1.27 billion as of June 30, 2025, and $1.27 billion at December 31, 2024. The mark to market adjustment improved by $27.4 million between June 30 and September 30 as interest rates declined. The Company anticipates continued rate volatility in the bond market in 2025, which will continue to affect the value of the portfolio.

Total deposits increased slightly between June 30, 2025 and September 30, 2025 but are up $133.7 million since December 31, 2024. During the third quarter of 2025, the Company paid off its brokered CDs totaling $75.0 million, while public funds increased $65.7 million primarily due to seasonality. Excluding public funds and brokered CDs, the Company has experienced excellent deposit growth with an increase of $108.3 million, or 4.2% annualized growth, since December 31, 2024.

Total stockholders’ equity increased to $465.9 million at September 30, 2025, compared to $437.7 million at June 30, 2025, and $406.0 million at December 31, 2024. The increase was primarily due to an improvement in accumulated other comprehensive income along with increased retained earnings.

Credit Quality

Non-performing loans increased to $35.3 million at September 30, 2025 from $27.8 million at June 30, 2025, and $22.8 million at December 31, 2024. A single loan relationship totaling $7.3 million moved into nonaccrual this quarter. The loan is secured by an apartment building in Troy, Michigan. The Company is working to have resolution on this relationship by December 31, 2025. Nonperforming loans to total loans were 1.06% at September 30, 2025, 0.84% at June 30, 2025, and 0.70% at December 31, 2024. The Company’s loans which were 30-89 days delinquent were $16.1 million at September 30, 2025, or 0.48% of total loans, compared to $17.7 million at June 30, 2025, and $13.0 million at December 31, 2024.

The provision for credit losses and unfunded commitments totaled $1.4 million for the third quarter of 2025 compared to $7.0 million for the third quarter of 2024. The provision in the third quarter of 2024 was impacted by a single commercial office loan that resulted in a charge-off of $4.4 million and the establishment of a specific reserve on the credit in the amount of $1.2 million. Annualized net charge-offs as a percentage of average loans were 0.07% for the third quarter of 2025, compared to 0.07% for the second quarter of 2025 and 0.58% for the third quarter of 2024. The allowance for credit losses to total loans was 1.18% at September 30, 2025, 1.17% at June 30, 2025, and 1.10% at December 31, 2024.

Net Interest Income

The Company reported net interest income of $36.3 million for the third quarter of 2025, compared to $31.9 million in the third quarter of 2024. Average interest earning assets increased to $4.92 billion in the third quarter of 2025 compared to $4.89 billion in the third quarter of 2024. The increase was primarily driven by an increase in average loan balances of $69.9 million. The net interest margin improved to 3.00% in the third quarter of 2025 compared to 2.91% in the second quarter of 2025 and 2.66% in the third quarter of 2024. The year-over-year increase in net interest margin was due to higher yields on earning assets and lower funding costs on interest bearing liabilities. The Federal Reserve rate cuts in the back half of 2024 have benefitted funding costs, while the lag effects of assets repricing continued to drive earning asset yields higher. The yield on interest earning assets increased from 4.79% in the third quarter of 2024 to 4.88% in the third quarter of 2025, while the cost of interest-bearing liabilities declined from 2.84% in the third quarter of 2024 to 2.51% in the third quarter of 2025. With the Federal Reserve beginning another round of rate cuts, the Company expects its net interest margin will continue to expand into 2026 as the Company remains liability sensitive and will benefit greatly from falling interest rates. Excluding acquisition marks and PPP interest, non-GAAP, the Company’s net interest margin was 2.86% in the third quarter of 2025, 2.77% in the second quarter of 2025, and 2.48% in the third quarter of 2024.

Noninterest Income

Noninterest income declined to $11.4 million in the third quarter of 2025 from $12.3 million in the third quarter of 2024. The decline was primarily due to larger losses on the sale of securities in the third quarter of 2025 along with lower SBIC income in 2025. Service charge income on deposit accounts declined $118,000 to $1.9 million in the third quarter of 2025 compared to $2.0 million for the third quarter of 2024 as overdraft fees continue to lag levels seen in 2024. Bank owned life insurance (BOLI) income increased $164,000 during the third quarter of 2025 to $852,000 compared to $688,000 in the third quarter of 2024. The Company purchased an additional $15.0 million in policies during the first quarter of 2025 and policy crediting rates have increased over the last twelve months. Trust fees increased to $2.7 million in the third quarter of 2025 from $2.5 million in the third quarter of 2024. The Company continues to grow this line of business through deeper penetration in its acquired markets. Losses on the sale of available for sale securities were $927,000 in the third quarter of 2025 compared to a loss of $403,000 in the third quarter of 2024.

The Company restructured $28.5 million of securities in the third quarter of 2025 and reinvested the proceeds into securities yielding approximately 220 basis points more than the securities sold. Retirement plan consulting fees increased from $677,000 in the third quarter of 2024 to $1.1 million in the third quarter of 2025 primarily due to the acquisition of Crest Retirement Advisors LLC in late December of 2024. Investment commissions grew to $658,000 in the third quarter of 2025 from $476,000 in the third quarter of 2024. This business unit continues to grow as the Company has added additional financial advisors over the last 12 months. Other noninterest income was $954,000 in the third quarter of 2025 compared to $2.6 million in the third quarter of 2024. SBIC income was $1.1 million in the third quarter of 2024 compared to $258,000 in the third quarter of 2025. In addition, the Company recorded $565,000 in the third quarter of 2024 for recoveries on loans that were charged off prior to acquisition while the Company did not receive any recovery income in 2025. The Company also realized gains on the sale of assets of $404,000 in the third quarter of 2024 compared to losses on the sale of assets of $102,000 in the third quarter of 2025.

Noninterest Expense

Noninterest expense increased to $31.7 million in the third quarter of 2025 from $27.2 million in the third quarter of 2024. Salaries and employee benefits increased by $1.1 million to $16.0 million in the third quarter of 2025, from $14.9 million in the third quarter of 2024. The increase was primarily driven by annual raises, the acquisition of Crest Retirement in the fourth quarter of 2024 and higher commission expense from increased revenue in the fee-based businesses. Occupancy and equipment expense increased to $4.4 million in the third quarter of 2025 from $4.0 million in the third quarter of 2024 due to increased maintenance costs in 2025. FDIC and state and local taxes improved by $268,000 to $1.2 million in the third quarter of 2025 compared to $1.5 million in the third quarter of 2024. The Company incurred $3.1 million in expense in the third quarter of 2025 related to consulting services associated with the strategic decision to transition core platform vendors. Core processing expense increased to $1.4 million for the quarter ended September 30, 2025, from $1.2 million for the quarter ended September 30, 2024. The increase was due to annual increases and timing differences

Liquidity

The Company had access to an additional $618.1 million in FHLB borrowing capacity at September 30, 2025, along with $353.2 million in available for sale securities that are available for pledging. The Company’s loan to deposit ratio was 75.9% at September 30, 2025 while the Company’s average deposit balance per account (excluding collateralized deposits) was $26,235 for the same period.

About Farmers National Banc Corp.

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $5.2 billion in banking assets. Farmers National Banc Corp.’s wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 62 banking locations in Mahoning, Trumbull, Columbiana, Portage, Stark, Wayne, Medina, Geauga and Cuyahoga Counties in Ohio and Beaver, Butler, Allegheny, Jefferson, Clarion, Venango, Clearfield, Mercer, Elk and Crawford Counties in Pennsylvania, and Farmers Trust Company, which operates trust offices and offers services in the same geographic markets. Total wealth management assets under care at September 30, 2025 are $4.6 billion. Farmers National Insurance, LLC, a wholly-owned subsidiary of The Farmers National Bank of Canfield, offers a variety of insurance products.

Non-GAAP Disclosure

This press release includes disclosures of Farmers’ tangible common equity ratio, return on average tangible assets, return on average tangible equity, net income excluding costs related to acquisition activities and certain items, return on average assets excluding merger costs and certain items, return on average equity excluding merger costs and certain items, net interest margin excluding acquisition marks and related accretion and PPP interest and fees and efficiency ratio less certain items, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers’ marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures to their GAAP equivalents are included in the tables following Consolidated Financial Highlights below.

Cautionary Statements Regarding Forward-Looking Statements

We make statements in this news release and our related investor conference call, and we may from time to time make other statements, that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Farmers’ financial condition, results of operations, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management’s current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Farmers’ control. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions, as well as any statements related to future expectations of performance or conditional verbs, such as “will,” “would,” “should,” “could” or “may.” Farmers’ actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Farmers’ actual results to differ materially from those described in certain forward-looking statements include significant changes in near-term local, regional, and U.S. economic conditions including those resulting from continued high rates of inflation, tightening monetary policy of the Board of Governors of the Federal Reserve, U.S. and foreign country tariff policies, and possibility of a recession; and the other factors contained in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and available on Farmers’ website (www.farmersbankgroup.com) and on the SEC’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Farmers does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

 

 

 

Farmers National Banc Corp. and Subsidiaries

Consolidated Financial Highlights

(Amounts in thousands, except per share results) Unaudited

 

 

Consolidated Statements of Income

For the Three Months Ended

For the Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

Percent

2025

2025

2025

2024

2024

2025

2024

Change

Total interest income

$

59,366

$

57,702

$

57,305

$

57,909

$

57,923

$

174,374

$

169,823

2.7

%

Total interest expense

23,059

22,781

23,110

25,170

26,047

68,949

74,194

-7.1

%

Net interest income

36,307

34,921

34,195

32,739

31,876

105,425

95,629

10.2

%

Provision (credit) for credit losses

1,419

3,548

(204

)

295

7,008

4,763

7,671

-37.9

%

Noninterest income

11,430

12,122

10,481

11,413

12,340

34,032

30,302

12.3

%

System conversion / Acquisition related costs

3,123

0

0

92

0

3,123

0

0.0

%

Other expense

28,556

27,175

28,526

26,082

27,075

84,258

80,517

4.6

%

Income before income taxes

14,639

16,320

16,354

17,683

10,133

47,313

37,743

25.4

%

Income taxes

2,178

2,410

2,776

3,292

1,598

7,364

6,185

19.1

%

Net income

$

12,461

$

13,910

$

13,578

$

14,391

$

8,535

$

39,949

$

31,558

26.6

%

 

Average diluted shares outstanding

37,677

37,622

37,626

37,616

37,567

37,626

37,495

Basic earnings per share

0.33

0.37

0.36

0.38

0.23

1.07

0.85

Diluted earnings per share

0.33

0.37

0.36

0.38

0.23

1.06

0.84

Cash dividends per share

0.17

0.17

0.17

0.17

0.17

0.51

0.51

Performance Ratios

Net Interest Margin (Annualized)

3.00

%

2.91

%

2.85

%

2.72

%

2.66

%

2.92

%

2.69

%

Efficiency Ratio (Tax equivalent basis)

62.66

%

56.66

%

59.60

%

56.42

%

58.47

%

59.68

%

60.24

%

Efficiency Ratio (Tax equivalent basis) excluding core conversion, acquisition costs and other extraordinary items (b)

56.43

%

55.66

%

59.57

%

56.10

%

59.05

%

57.20

%

60.26

%

Return on Average Assets (Annualized)

0.96

%

1.08

%

1.06

%

1.12

%

0.66

%

1.04

%

0.83

%

Return on Average Equity (Annualized)

11.26

%

13.08

%

13.12

%

13.43

%

8.18

%

12.46

%

10.51

%

Other Performance Ratios (Non-GAAP)

Return on Average Tangible Assets

1.00

%

1.13

%

1.10

%

1.16

%

0.69

%

1.07

%

0.86

%

Return on Average Tangible Equity

19.46

%

23.37

%

24.02

%

23.95

%

14.94

%

22.18

%

19.95

%

 

Consolidated Statements of Financial Condition

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

2025

2025

2025

2024

2024

Assets

Cash and cash equivalents

$

92,345

$

90,740

$

113,256

$

85,738

$

189,136

Debt securities available for sale

1,301,766

1,274,899

1,281,413

1,266,553

1,293,350

Other investments

44,245

42,410

40,334

45,405

33,617

 

Loans held for sale

4,975

2,174

2,973

5,005

2,852

Loans

3,337,780

3,303,359

3,251,391

3,268,346

3,280,517

Less allowance for credit losses

39,528

38,563

35,549

35,863

36,186

Net Loans

3,298,252

3,264,796

3,215,842

3,232,483

3,244,331

 

Other assets

493,992

503,409

503,222

483,740

473,217

Total Assets

$

5,235,575

$

5,178,428

$

5,157,040

$

5,118,924

$

5,236,503

 

Liabilities and Stockholders' Equity

Deposits

Noninterest-bearing

$

994,604

$

995,865

$

979,142

$

965,507

$

969,682

Interest-bearing

3,405,911

3,325,564

3,342,182

3,226,321

3,317,223

Brokered time deposits

0

74,988

159,964

74,951

74,932

Total deposits

4,400,515

4,396,417

4,481,288

4,266,779

4,361,837

Other interest-bearing liabilities

321,581

289,428

188,275

391,150

371,038

Other liabilities

47,530

54,835

58,343

54,967

63,950

Total liabilities

4,769,626

4,740,680

4,727,906

4,712,896

4,796,825

Stockholders' Equity

465,949

437,748

429,134

406,028

439,678

Total Liabilities and Stockholders' Equity

$

5,235,575

$

5,178,428

$

5,157,040

$

5,118,924

$

5,236,503

 

Period-end shares outstanding

37,647

37,642

37,615

37,586

37,574

Book value per share

$

12.38

$

11.69

$

11.41

$

10.80

$

11.70

Tangible book value per share (Non-GAAP)*

7.44

6.70

6.42

5.80

6.69

 

* Tangible book value per share is calculated by dividing tangible common equity by outstanding shares

 

 

 

For the Three Months Ended

For the

Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

Capital and Liquidity

2025

2025

2025

2024

2024

2025

2024

Common Equity Tier 1 Capital Ratio (a)

11.74

%

11.56

%

11.44

%

11.14

%

10.91

%

Total Risk Based Capital Ratio (a)

15.23

%

15.04

%

14.87

%

14.55

%

14.34

%

Tier 1 Risk Based Capital Ratio (a)

12.22

%

12.05

%

11.92

%

11.62

%

11.39

%

Tier 1 Leverage Ratio (a)

8.75

%

8.67

%

8.52

%

8.36

%

8.20

%

Equity to Asset Ratio

8.90

%

8.45

%

8.32

%

7.93

%

8.40

%

Tangible Common Equity Ratio (b)

5.54

%

5.03

%

4.86

%

4.42

%

4.98

%

Net Loans to Assets

63.00

%

63.05

%

62.36

%

63.15

%

61.96

%

Loans to Deposits

75.85

%

75.14

%

72.55

%

76.60

%

75.21

%

Asset Quality

Non-performing loans

$

35,344

$

27,819

$

20,724

$

22,818

$

19,076

Non-performing assets

35,519

28,052

20,902

22,903

19,137

Loans 30 - 89 days delinquent

16,083

17,727

11,192

13,032

15,562

Charged-off loans

869

748

698

928

5,116

2,315

7,059

Recoveries

333

176

362

293

504

871

873

Net Charge-offs

536

572

336

635

4,612

1,444

6,186

Annualized Net Charge-offs to Average Net Loans

0.07

%

0.07

%

0.04

%

0.08

%

0.58

%

0.06

%

0.26

%

Allowance for Credit Losses to Total Loans

1.18

%

1.17

%

1.09

%

1.10

%

1.10

%

Non-performing Loans to Total Loans

1.06

%

0.84

%

0.64

%

0.70

%

0.58

%

Loans 30 - 89 Days Delinquent to Total Loans

0.48

%

0.54

%

0.34

%

0.40

%

0.47

%

Allowance to Non-performing Loans

111.84

%

138.62

%

171.54

%

157.17

%

189.69

%

Non-performing Assets to Total Assets

0.68

%

0.54

%

0.41

%

0.45

%

0.37

%

 

(a) September 30, 2025 ratio is estimated

(b) This is a non-GAAP financial measure. A reconciliation to GAAP is shown below

 

For the Three Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

End of Period Loan Balances

2025

2025

2025

2024

2024

Commercial real estate

$

1,428,583

$

1,385,162

$

1,370,661

$

1,382,714

$

1,372,374

Commercial

351,213

363,009

336,600

349,966

358,247

Residential real estate

850,112

849,443

846,639

845,081

852,444

HELOC

176,609

171,312

161,991

158,014

155,967

Consumer

251,557

253,363

257,310

259,954

269,231

Agricultural loans

269,025

270,599

267,737

262,392

261,773

Total, excluding net deferred loan costs

$

3,327,099

$

3,292,888

$

3,240,938

$

3,258,121

$

3,270,036

 

 

For the Three Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

End of Period Customer Deposit Balances

2025

2025

2025

2024

2024

Noninterest-bearing demand

$

994,604

$

995,866

$

979,142

$

965,507

$

969,682

Interest-bearing demand

1,443,422

1,388,596

1,468,424

1,366,255

1,453,288

Money market

761,788

748,770

718,083

682,558

676,664

Savings

410,165

416,795

416,162

414,796

418,771

Certificate of deposit

790,536

771,403

739,512

762,712

768,500

Total customer deposits

$

4,400,515

$

4,321,430

$

4,321,323

$

4,191,828

$

4,286,905

 

Memo: Public funds included in above numbers

$

867,253

$

801,561

$

873,200

$

766,853

$

879,618

 

 

 

For the Three Months Ended

For the

Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

Noninterest Income

2025

2025

2025

2024

2024

2025

2024

Service charges on deposit accounts

$

1,874

$

1,749

$

1,758

$

1,890

$

1,992

$

5,381

$

5,421

Bank owned life insurance income, including death benefits

852

832

810

613

688

2,494

2,046

Trust fees

2,745

2,596

2,641

2,700

2,544

7,982

7,398

Insurance agency commissions

1,395

1,828

1,741

1,273

1,416

4,964

4,199

Security gains (losses), including fair value changes for equity securities

(927

)

36

(1,313

)

10

(403

)

(2,205

)

(2,647

)

Retirement plan consulting fees

1,060

783

798

719

677

2,641

1,918

Investment commissions

658

721

529

621

476

1,908

1,386

Net gains on sale of loans

559

329

326

282

506

1,214

1,219

Other mortgage banking fee income (loss), net

192

27

147

285

(168

)

366

150

Debit card and EFT fees

2,068

2,017

1,866

2,164

1,993

5,951

5,320

Other noninterest income

954

1,204

1,178

856

2,619

3,336

3,892

Total Noninterest Income

$

11,430

$

12,122

$

10,481

$

11,413

$

12,340

$

34,032

$

30,302

 

 

For the Three Months Ended

For the

Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

Noninterest Expense

2025

2025

2025

2024

2024

2025

2024

Salaries and employee benefits

$

15,992

$

14,722

$

16,166

$

14,424

$

14,874

$

46,880

$

44,501

Occupancy and equipment

4,370

4,119

4,138

4,075

3,968

12,627

11,512

FDIC insurance and state and local taxes

1,212

1,262

1,262

1,019

1,480

3,736

4,010

Professional fees

990

1,026

1,196

785

1,084

3,213

3,532

System conversion / Merger related costs

3,123

0

0

92

0

3,123

0

Advertising

466

454

456

192

435

1,376

1,312

Intangible amortization

718

735

735

914

629

2,188

1,947

Core processing charges

1,412

1,401

1,397

1,202

1,186

4,210

3,420

Other noninterest expenses

3,396

3,456

3,176

3,471

3,419

10,028

10,283

Total Noninterest Expense

$

31,679

$

27,175

$

28,526

$

26,174

$

27,075

$

87,381

$

80,517

 

 

 

 

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)

 

Three Months Ended

Three Months Ended

September 30, 2025

September 30, 2024

AVERAGE

YIELD/

AVERAGE

YIELD/

BALANCE

INTEREST (1)

RATE (1)

BALANCE

INTEREST (1)

RATE (1)

EARNING ASSETS

Loans (2)

$

3,311,535

$

48,713

5.88

%

$

3,241,603

$

47,060

5.81

%

Taxable securities

1,134,806

7,466

2.63

1,104,264

6,761

2.45

Tax-exempt securities (2)

363,171

2,895

3.19

379,551

2,992

3.15

Other investments

40,940

459

4.48

34,873

346

3.97

Federal funds sold and other

71,823

466

2.60

130,053

1,371

4.22

Total earning assets

4,922,275

59,999

4.88

4,890,344

58,530

4.79

Nonearning assets

256,723

243,718

Total assets

$

5,178,998

$

5,134,062

INTEREST-BEARING LIABILITIES

Time deposits

$

782,861

$

6,825

3.49

%

$

753,163

$

7,584

4.03

%

Brokered time deposits

48,094

527

4.38

26,062

286

4.39

Savings deposits

1,177,080

4,566

1.55

1,103,269

4,372

1.59

Demand deposits - interest bearing

1,431,878

8,454

2.36

1,411,520

9,305

2.64

Total interest-bearing deposits

3,439,913

20,372

2.37

3,294,014

21,547

2.62

 

Short term borrowings

150,022

1,681

4.48

289,652

3,477

4.80

Long term borrowings

86,506

1,006

4.65

87,368

1,023

4.68

Total borrowed funds

236,528

2,687

4.54

377,020

4,500

4.77

 

Total interest-bearing liabilities

3,676,441

23,059

2.51

3,671,034

26,047

2.84

 

NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY

Demand deposits - noninterest bearing

1,007,534

983,274

Other liabilities

52,467

62,427

Stockholders' equity

442,556

417,327

TOTAL LIABILITIES AND

STOCKHOLDERS' EQUITY

$

5,178,998

$

5,134,062

Net interest income and interest rate spread

$

36,940

2.37

%

$

32,483

1.95

%

Net interest margin

3.00

%

2.66

%

 

(1) Interest and yields are calculated on a tax-equivalent basis where applicable.

(2) For 2025, adjustments of $110,000 and $523,000, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2024, adjustments of $71,000 and $536,000, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances.

 

 

 

For the Nine Months Ended

For the Nine Months Ended

September 30, 2025

September 30, 2024

AVERAGE

YIELD/

AVERAGE

YIELD/

BALANCE

INTEREST (1)

RATE (1)

BALANCE

INTEREST (1)

RATE (1)

EARNING ASSETS

Loans (2)

$

3,282,794

$

142,683

5.80

%

$

3,212,799

$

138,746

5.76

%

Taxable securities

1,137,393

21,946

2.57

1,108,055

19,988

2.41

Tax-exempt securities (2)

368,209

8,785

3.18

389,094

9,174

3.14

Other investments

41,760

1,462

4.67

34,243

1,030

4.01

Federal funds sold and other

70,407

1,405

2.66

93,601

2,740

3.90

Total earning assets

4,900,563

176,281

4.80

4,837,792

171,678

4.73

Nonearning assets

243,133

229,966

Total assets

$

5,143,696

$

5,067,758

INTEREST-BEARING LIABILITIES

Time deposits

$

751,144

$

20,041

3.56

%

$

741,450

$

21,865

3.93

%

Brokered time deposits

95,634

3,112

4.34

8,751

286

4.36

Savings deposits

1,146,098

12,861

1.50

1,096,788

12,087

1.47

Demand deposits - interest bearing

1,421,764

24,314

2.28

1,386,390

25,857

2.49

Total interest-bearing deposits

3,414,640

60,328

2.36

3,233,379

60,095

2.48

 

Short term borrowings

168,480

5,634

4.46

304,607

11,000

4.81

Long term borrowings

86,358

2,987

4.61

88,304

3,098

4.68

Total borrowed funds

254,838

8,621

4.51

392,911

14,098

4.78

 

Total interest-bearing liabilities

3,669,478

68,949

2.51

3,626,290

74,193

2.73

 

NONINTEREST-BEARING LIABILITIES

AND STOCKHOLDERS' EQUITY

Demand deposits - noninterest bearing

$

992,824

983,576

Other liabilities

54,014

57,577

Stockholders' equity

427,380

400,315

TOTAL LIABILITIES AND

STOCKHOLDERS' EQUITY

$

5,143,696

$

5,067,758

Net interest income and interest rate spread

$

107,332

2.29

%

$

97,485

2.00

%

Net interest margin

2.92

%

2.69

%

 

(1) Interest and yields are calculated on a tax-equivalent basis where applicable.

(2) For 2025, adjustments of $322,000 and $1.6 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2024, adjustments of $228,000 and $1.6 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances.

 

 

 

Reconciliation of Total Assets to Tangible Assets

For the Three Months Ended

For the

Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

2025

2025

2025

2024

2024

2025

2024

Total Assets

$

5,235,575

$

5,178,428

$

5,157,040

$

5,118,924

$

5,236,503

$

5,235,575

$

5,236,503

Less Goodwill and other intangibles

186,013

186,731

187,466

188,200

188,340

186,013

188,340

Tangible Assets

$

5,049,562

$

4,991,697

$

4,969,574

$

4,930,724

$

5,048,163

$

5,049,562

$

5,048,163

Average Assets

5,178,998

5,132,661

5,118,767

5,159,901

5,134,062

5,143,696

5,067,758

Less average Goodwill and other intangibles

186,479

187,209

187,947

188,256

188,755

187,207

189,391

Average Tangible Assets

$

4,992,519

$

4,945,452

$

4,930,820

$

4,971,645

$

4,945,307

$

4,956,489

$

4,878,367

 

 

Reconciliation of Common Stockholders' Equity to Tangible Common Equity

For the Three Months Ended

For the

Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

2025

2025

2025

2024

2024

2025

2024

Stockholders' Equity

$

465,949

$

437,748

$

429,134

$

406,028

$

439,678

$

465,949

$

439,678

Less Goodwill and other intangibles

186,013

186,731

187,466

188,200

188,340

186,013

188,340

Tangible Common Equity

$

279,936

$

251,017

$

241,668

$

217,828

$

251,338

$

279,936

$

251,338

Average Stockholders' Equity

442,556

425,249

414,021

428,646

417,327

427,380

400,315

Less average Goodwill and other intangibles

186,479

187,209

187,947

188,256

188,755

187,207

189,391

Average Tangible Common Equity

$

256,077

$

238,040

$

226,074

$

240,390

$

228,572

$

240,173

$

210,924

 

 

Reconciliation of Net Income, Less Merger and Certain Items

For the Three Months Ended

For the

Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

2025

2025

2025

2024

2024

2025

2024

Net income

$

12,461

$

13,910

$

13,578

$

14,391

$

8,535

$

39,949

$

31,558

System conversion / Acquisition related costs - after tax

2,467

0

0

82

0

2,467

0

Net loss (gain) on asset/security sales - after tax

760

(137

)

1,056

70

(32

)

1,680

2,050

Net income - Adjusted

$

15,688

$

13,773

$

14,634

$

14,543

$

8,503

$

44,097

$

33,608

Diluted EPS excluding merger and certain items

$

0.42

$

0.37

$

0.39

$

0.39

$

0.23

$

1.17

$

0.90

Return on Average Assets excluding system conversion, merger and certain items (Annualized)

1.21

%

1.07

%

1.14

%

1.13

%

0.66

%

1.14

%

0.88

%

Return on Average Equity excluding system conversion, merger and certain items (Annualized)

14.18

%

12.96

%

14.14

%

13.57

%

8.15

%

13.76

%

11.19

%

Return on Average Tangible Equity excluding system conversion, merger costs and certain items (Annualized)

24.51

%

23.14

%

25.89

%

24.20

%

14.88

%

24.48

%

21.24

%

 

 

Efficiency ratio excluding certain items

For the Three Months Ended

For the

Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

2025

2025

2025

2024

2024

2025

2024

Net interest income, tax equated

$

36,940

$

35,554

$

34,837

$

33,364

$

32,483

$

107,332

$

97,485

Noninterest income

11,430

12,122

10,481

11,413

12,340

34,032

30,302

Net loss (gain) on asset/security sales

962

(173

)

1,337

89

(41

)

2,127

2,594

Net interest income and noninterest income adjusted

49,332

47,503

46,655

44,866

44,782

143,491

130,381

Noninterest expense less intangible amortization

30,961

26,440

27,791

25,260

26,446

85,193

78,570

System conversion / Acquisition related costs

3,123

0

0

92

0

3,123

0

Noninterest expense adjusted

27,838

26,440

27,791

25,168

26,446

82,070

78,570

Efficiency ratio excluding certain items

56.43

%

55.66

%

59.57

%

56.10

%

59.05

%

57.20

%

60.26

%

 

 

Net interest margin excluding acquisition marks and PPP interest and fees

For the Three Months Ended

For the

Nine Months Ended

Sept. 30,

June 30,

March 31,

Dec. 31,

Sept. 30,

Sept. 30,

Sept. 30,

2025

2025

2025

2024

2024

2025

2024

Net interest income, tax equated

$

36,940

$

35,554

$

34,837

$

33,364

$

32,483

$

107,332

$

97,485

Acquisition marks

1,677

1,731

2,151

1,953

2,123

5,559

6,884

PPP interest and fees

0

0

0

0

1

0

2

Adjusted and annualized net interest income

141,052

135,292

130,744

125,644

121,436

135,697

120,799

Average earning assets

4,922,275

4,886,771

4,892,311

4,912,702

4,890,344

4,900,563

4,837,792

Less PPP average balances

89

95

105

112

118

98

167

Adjusted average earning assets

4,922,186

4,886,676

4,892,206

4,912,590

4,890,226

4,900,465

4,837,625

Net interest margin excluding marks and PPP interest and fees

2.87

%

2.77

%

2.67

%

2.56

%

2.48

%

2.77

%

2.50

%

 

 

More News From Farmers National Banc Corp.

October 22, 2025 07:45 ET

 | Source:

Brookfield Asset Management Ltd

NEW YORK, Oct. 22, 2025 (GLOBE NEWSWIRE) -- Brookfield has announced the launch of the Brookfield Private Equity Fund (Canada) (“BPE-CAD” or the “Fund”). The evergreen strategy provides investors streamlined access to Brookfield’s leading private equity platform through a simplified investment process that includes monthly subscriptions and a low investment minimum.

BPE-CAD builds on Brookfield’s 25-year track record of investing in and transforming companies that underpin the global economy. The Fund offers investors exposure to a diversified portfolio of high-quality businesses, leveraging Brookfield’s deep operational expertise and focus on creating long-lasting value.

“Our private equity strategy is simple, consistent and successful – we’re value investors focused on operational transformation in essential industrial and business services,” said Anuj Ranjan, CEO of Brookfield’s Private Equity Group. “With a robust investment pipeline ahead, we believe our global scale, disciplined investment strategy, and deep operating expertise create a unique opportunity for advisors and their clients seeking diversification and long-term value.”

“Allocations to alternatives are growing rapidly—not just for institutions, but also among individual investors”, said David Nowak, President of Brookfield’s Private Equity Group and CEO of BPE. “Building on Brookfield’s private wealth experience across real estate, infrastructure, and credit, we look forward to bringing our 25-year track record to the advisor community in Canada, and to continuing to expand our capabilities for individual investors globally over the coming months.”

With $150 billion in assets under management, a team of 160 investment professionals, and 142,000 operating employees worldwide, Brookfield’s private equity platform specializes in the operational transformation of essential businesses and has delivered consistent results across market cycles.

About Brookfield Asset Management
Brookfield Asset Management Ltd. (NYSE: BAM, TSX, BAM) is a leading global alternative asset manager, headquartered in New York, with over $1 trillion of assets under management across infrastructure, renewable power and transition, private equity, real estate, and credit. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors. We draw on Brookfield’s heritage as an owner and operator to invest for value and generate strong returns for our clients, across economic cycles.

For more information, please visit our website at www.brookfield.com.

HomeIndustriesTelecommunicationsEarnings ResultsEarnings ResultsThe company has made a push to offer more customers both fiber and wireless services and says the move is paying off. Analysts will be monitoring the impact of promotions.Published: Oct. 22, 2025 at 7:45 a.m. ET

AT&T Inc. delivered another quarter of robust subscriber gains, which the company saw as a validation of investments into its wireless and fiber networks.

For the third quarter, the company added a net of 405,000 postpaid phone subscribers, which are those who pay for service after a cycle is complete. Analysts tracked by FactSet were expecting about 334,000. This marks the fifth quarter out of the past six in which AT&T T topped 400,000 postpaid phone net additions.

CANFIELD, Ohio & MIDDLEFIELD, Ohio--(BUSINESS WIRE)--Farmers National Banc Corp. (“Farmers”) (NASDAQ: FMNB), the holding company for The Farmers National Bank of Canfield (“Farmers National Bank”), and Middlefield Banc Corp. (“Middlefield”) (NASDAQ: MBCN), the holding company for The Middlefield Banking Company (“Middlefield Bank”), jointly announced today the signing of a definitive merger agreement (the “Agreement”) pursuant to which Middlefield will merge with and into Farmers in an all-stock transaction. The Agreement was unanimously approved by the boards of directors of both companies.

Pursuant to the Agreement, each share of Middlefield common stock outstanding immediately prior to completion of the merger will be converted into the right to receive 2.6 shares of Farmers common stock. Based on Farmers’ closing share price of $13.91 on October 20, 2025, the proposed transaction is valued at approximately $299.0 million, or $36.17 per Middlefield share. The merger is expected to qualify as a tax-free reorganization. The transaction is subject to receipt of Middlefield and Farmers shareholder approvals and customary regulatory approvals. The transaction is expected to close by the end of the first quarter of 2026.

At the close of the transaction, Farmers intends to appoint two Middlefield directors to Farmers’ Board of Directors. For additional information about the proposed merger, please see the Investor Presentation – Merger, filed as Exhibit 99.4 to Farmers’ Form 8-K filed on October 22, 2025.

Kevin J. Helmick, President and CEO of Farmers, stated, “We are excited to announce the merger with Middlefield. This is our seventh bank acquisition in the last 10 years and reflects our proven track record of executing and integrating strategic M&A. The merger brings together two high-performing community banks with complementary markets, shared values, and a common vision for growth. We know Middlefield and its markets well, and this partnership not only deepens our presence in Northeast Ohio but meaningfully expands our footprint across Central and Western Ohio markets. This includes the Columbus region, where we are making strategic investments to expand in Ohio’s largest and fastest-growing market. Together, we will create a larger, more diversified institution with enhanced scale, deeper relationships, and a stronger foundation to drive long-term shareholder value.”

Ronald L. Zimmerly, Jr., President and Chief Executive Officer of Middlefield, commented, “Joining Farmers represents an exciting next chapter for Middlefield and the communities we serve. Our customers will benefit from a broader suite of financial products and advanced digital capabilities, while continuing to receive the same personalized service and local decision-making that define our culture. This merger enhances our ability to grow and support our stakeholders and deliver meaningful value for our shareholders.”

Upon consummation of the transaction, Middlefield Bank will be merged with and into Farmers National Bank and Middlefield Bank’s branches will become branches of Farmers National Bank. Upon closing, Farmers estimates it will have approximately $7.4 billion in assets and 83 branch locations throughout Ohio and western Pennsylvania.

As of September 30, 2025, Middlefield had total assets of approximately $2.0 billion, which included total loans of $1.6 billion, deposits of $1.6 billion and stockholders’ equity of $224.1 million.

Janney Montgomery Scott LLC. is serving as financial advisor to Farmers and Vorys, Sater, Seymour and Pease LLP is serving as legal counsel to Farmers on the transaction. Raymond James & Associates, Inc. is serving as financial advisor to Middlefield and Nelson Mullins Riley & Scarborough LLP is serving as legal counsel to Middlefield on the transaction.

CONFERENCE CALL INFORMATION

Farmers will host a conference call on October 22, 2025, at 9:00 a.m. ET, to discuss the acquisition of Middlefield Banc Corp. Participants can join the call by dialing 1-877-407-0752 or 1-201-389-0912. The conference call will also be broadcast simultaneously via webcast on a listen-only basis and can be found here: https://viavid.webcasts.com/starthere.jsp?ei=1738011&tp_key=9334633d73.

A link to the press release, presentation, and webcast will be available at ir.farmersbankgroup.com.

A replay of the conference call can be accessed through November 5, 2025, by dialing 1-844-512-2921 or 1-412-317-6671 and Access ID: 13756434.

ABOUT FARMERS NATIONAL BANC CORP.

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $5.2 billion in banking assets. Farmers National Banc Corp.’s wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 62 banking locations in Mahoning, Trumbull, Columbiana, Portage, Stark, Wayne, Medina, Geauga and Cuyahoga Counties in Ohio and Beaver, Butler, Allegheny, Jefferson, Clarion, Venango, Clearfield, Mercer, Elk and Crawford Counties in Pennsylvania, and Farmers Trust Company, which operates trust offices and offers services in the same geographic markets. Total wealth management assets under care at September 30, 2025 are $4.6 billion. Farmers National Insurance, LLC, a wholly-owned subsidiary of The Farmers National Bank of Canfield, offers a variety of insurance products.

About Middlefield Banc Corp.

Middlefield Banc Corp., headquartered in Middlefield, Ohio, is the bank holding company of The Middlefield Banking Company, with total assets of $1.98 billion at September 30, 2025. The Bank operates 21 full-service banking centers and an LPL Financial® brokerage office serving Ada, Beachwood, Bellefontaine, Chardon, Cortland, Dublin, Garrettsville, Kenton, Mantua, Marysville, Middlefield, Newbury, Orwell, Plain City, Powell, Solon, Sunbury, Twinsburg, and Westerville. The Bank also operates a Loan Production Office in Mentor, Ohio.

Additional information is available at www.middlefieldbank.bank

FORWARD LOOKING STATEMENTS

We make statements in this news release and our related investor conference call, and we may from time to time make other statements, that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Farmers’ and Middlefield’s financial condition, results of operations, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management’s current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Farmers’ and Middlefield’s control. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions, as well as any statements related to future expectations of performance or conditional verbs, such as “will,” “would,” “should,” “could” or “may.”

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 Farmers’ and Middlefield’s control. Numerous uncertainties, risks, and changes could cause or contribute to Farmers’ or Middlefield’s actual results, performance, and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, the possibility that the closing of the proposed transaction is delayed or does not occur at all because required regulatory approvals, shareholder approval or other conditions to the transaction are not obtained or satisfied on a timely basis or at all; the possibility that the anticipated benefits of the transaction are not realized when expected or at all; Farmers’ and Middlefield’s failure to integrate Middlefield and Middlefield Bank with Farmers and Farmers National Bank in accordance with expectations; deviations from performance expectations related to Middlefield and Middlefield Bank ; diversion of management’s attention on the proposed transaction; significant changes in economic conditions in markets where Farmers and Middlefield conduct business which could materially impact credit quality trends; significant changes in U.S. economic conditions including those resulting from continued high rates of inflation, tightening monetary policy of the Board of Governors of the Federal Reserve, and effects of U.S. and foreign country tariff policies; general business conditions in the banking industry; the regulatory environment; general fluctuations in interest rates; demand for loans in the market areas where Farmers and Middlefield conduct business; rapidly changing technology and evolving banking industry standards; competitive factors, including increased competition with regional and national financial institutions; and new service and product offerings by competitors and price pressures; and other factors disclosed periodically in Farmers’ and Middlefield’s filings with the Securities and Exchange Commission (the “SEC”).

Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this release or made elsewhere from time to time by Farmers, Middlefield or on Farmers’ or Middlefield’s behalf, respectively. Forward-looking statements speak only as of the date made, and neither Farmers nor Middlefield assumes any duty and does not undertake to update forward-looking statements.

Farmers and Middlefield provide further detail regarding these risks and uncertainties in their respective latest Annual Reports on Form 10-K, including in the risk factors section of their respective latest Annual Reports on Form 10-K, as well as in subsequent SEC filings, available on the SEC’s website at www.sec.gov.

OTHER INFORMATION

In connection with the proposed merger, Farmers will file with the SEC a Registration Statement on Form S-4 that will include a joint proxy statement and a prospectus of Farmers, as well as other relevant documents concerning the proposed transaction.

SHAREHOLDERS OF FARMERS AND MIDDLEFIELD AND OTHER INVESTORS ARE URGED TO CAREFULLY READ THE PROXY STATEMENT AND PROSPECTUS TO BE INCLUDED IN THE REGISTRATION STATEMENT ON FORM S-4, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT FARMERS, MIDDLEFIELD, THE PROPOSED MERGER, THE PERSONS SOLICITING PROXIES WITH RESPECT TO THE PROPOSED MERGER, AND THEIR INTERESTS IN THE PROPOSED MERGER AND RELATED MATTERS.

The respective directors and executive officers of Farmers and Middlefield and other persons may be deemed to be participants in the solicitation of proxies from Farmers and Middlefield shareholders with respect to the proposed merger. Information regarding the directors of Farmers is available in its proxy statement filed with the SEC on March 18, 2025 in connection with its 2025 Annual Meeting of Shareholders and information regarding the executive officers of Farmers is available in its Form 10-K filed with the SEC on March 6, 2025. Information regarding the directors of Middlefield is available in its proxy statement filed with the SEC on April 4, 2025 in connection with its 2025 Annual Meeting of Shareholders and information regarding the directors and executive officers of Middlefield is available in its Form 10-K filed with the SEC on March 13, 2025. Other information regarding the participants in the solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and prospectus to be included in the Registration Statement on Form S-4 and other relevant materials to be filed with the SEC when they become available.

Investors and security holders will be able to obtain free copies of the registration statement (when available) and other documents filed with the SEC by Farmers through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Farmers will be available free of charge on Farmers’ website at https://www.farmersbankgroup.com or may be obtained from Farmers by written request to Farmers National Banc Corp., 20 South Broad Street, Canfield, Ohio 44406, Attention: Investor Relations. Copies of the documents filed or to be filed with the SEC by Middlefield may be obtained without charge from Middlefield by written request to Middlefield Banc Corp., 15985 East High Street, Middlefield, Ohio, 44062, Attention: Julie E. Shaw, Secretary.

More News From Farmers National Banc Corp.

The maker of surgical robots installed 427 da Vinci systems in the third quarter, up from 379 last year.

We are all familiar with the so-called “October Effect.” 

Investopedia describes it this way: “The October effect refers to the belief that stocks tend to decline during the month of October. It is considered to be more of a psychological expectation than an actual phenomenon, as most statistics contradict the theory.” 

It’s an interesting phenomenon, to use their word. We come into the month looking for an increased potential for market crashes, and an increase in volatility vs. previous months. We expect a deterioration of investor sentiment as the market swings. And, yet, we know we may also see the stock market display surprising resilience — historically speaking — with gains above average.

October brings a sort of good-meets-bad-meets-ugly that is likely to turn out great in the end.  

So far this quarter, October 2025 has seemingly delivered on all those fronts. With an ongoing government shutdown, and concerns about its economic impact, October has already welcomed a pick up in volatility that saw the Cboe VIX Index hit, at one point, its highest level since those early-April tariff-related highs. Uncertainty — partly fueled by a lack of fresh economic data — looms large, and investors are nervous. And, yet, the market keeps on flirting with and/or forging new historic highs. 

Equity ETF asset flows, perhaps surprisingly or perhaps not at all, tell us that investors are aware of the market noise, but they continue to bet heavily on stock market resilience with a side of caution. 

Let’s look at some numbers. 

More Large-Caps Please
Coming into Q4, equity ETFs had been taking in about 58% of all net asset creations this year across all asset classes. So far in October, equities ETFs have taken in 50% of all ETF asset flows, a haul that’s strong but lagging year-to-date levels in relative terms. 

Within that asset gathering pace, however, we see an appetite for traditional large-cap exposure — as in S&P 500 exposure — that goes on undeterred. The top-three most popular ETFs this month are all tied to the broad benchmark.

Vanguard S&P 500 ETF (VOO) has picked up $7.8 billion in October.
SPDR Portfolio S&P 500 ETF (SPLG) has picked up $5.2 billion in October.
SPDR S&P 500 ETF Trust (SPY) has picked up $4.4 billion in October. 

Together, these three ETFs have snagged roughly 37% of all equity ETF flows so far this month. And it’s the Invesco QQQ Trust Series (QQQ) — you guessed it — that rings in at number four, with net asset creations of $2.6 billion in October, followed by the Vanguard Total Stock Market ETF (VTI), with $2 billion. 

In other words, the top-five list of investor favorites this month looks like a who’s who among traditional passive equity ETF stalwarts. 

The flip side is equally interesting. For all of our increasing fears and concerns about the path of economic growth, diversification within equities hasn’t been a big theme this month. 

The iShares Russell 2000 ETF (IWM) is the month’s biggest asset loser so far in October, bleeding over $3 billion in assets. The Invesco S&P 500 Equal Weight ETF (RSP) comes second, with net asset redemptions of about $1.4 billion. Small-caps, equal-weighted portfolios — both well-liked diversifiers to large-cap concentration — are both leading outflows this quarter.

Can’t Get Enough Gold
It could be that diversification remains focused on one of the year’s biggest bullish stories, which continues to be reflected by insatiable investor appetite. That is gold. 

In many ways, gold has emerged this year as the goldilocks asset, delivering that much-needed diversification from equities while offering capital appreciation as prices hit repeated new records, and acting as a safe-haven play to concerns about rising inflation. 

We’ve all marveled at gold’s performance this year, and we continue to gasp at some of the price projections for the yellow metal going forward. Investors are buying a lot of physical gold ETFs this quarter. 

So far in October, the commodities asset class of ETFs has snagged over 8.8% of all ETF asset flows. The top-three asset gatherers are all gold funds: 

SPDR Gold Shares (GLD) has picked up $4.6 billion in October.
SPDR Gold Minishares Trust (GLDM) has picked up $1.1 billion in October.
iShares Gold Trust (IAU) has picked up $788 million in October.  

October Effect Isn’t Real. Long Live October Effect
To go back to Investopedia, “statistical evidence” isn’t very strong that October brings weaker stock market performance, but “the psychological expectations” of a challenging October persist. 

So far this month, The S&P 500 is up about 0.8%. The Nasdaq 100 is up nearly 2%. And gold has already tacked on 7% in gains this month. 

“From a historical perspective, October has marked the end of more bear markets than the beginning,” according to Investopedia. “This makes October an interesting prospect for contrarian buying.” 

So far, so good. 

For more news, information, and strategy, visit ETF Trends.

Earn free CE credits and discover new strategies

The New York credit-ratings and research company raised its full-year outlook after logging higher profit and revenue in the third quarter.

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:

Solitario Resources Corp. (XPL - Free Report) : This precious metal, zinc, and other base metal exploration-stage company has seen the Zacks Consensus Estimate for its current year earnings increasing 33.3% over the last 60 days.

CTO Realty Growth, Inc. (CTO - Free Report) : This publicly traded real estate investment trust has seen the Zacks Consensus Estimate for its next year earnings increasing 4.4% over the last 60 days.

Maximus, Inc. (MMS - Free Report) : This business process services provider to the public sector has seen the Zacks Consensus Estimate for its current year earnings increasing 6.6% over the last 60 days.

Gold Fields Limited (GFI - Free Report) : This gold producer has seen the Zacks Consensus Estimate for its current year earnings increasing 7.7% over the last 60 days.

Universal Insurance Holdings, Inc. (UVE - Free Report) : This insurance holding company has seen the Zacks Consensus Estimate for its current year earnings increasing 63.8% over the last 60 days.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Chipotle Rewards members who visit a Chipotle restaurant in costume from 3 p.m. to close local time on October 31 can get a $6 entrée offer¹
Chipotle is bringing back its Boorito Costume Contest on TikTok with a nostalgic nod to the brand's 2020 challenge; fans can enter for a chance to win a VIP card, worth over $500 in free Chipotle2
Throughout October, Chipotle is inviting Rewards members to "Chip-or-Treat" for offers like free guac, free chips, double protein and extra Rewards points3
, /PRNewswire/ -- Chipotle Mexican Grill (NYSE: CMG) today announced the return of Boorito, the brand's iconic Halloween tradition. On October 31, Chipotle Rewards members who visit a Chipotle restaurant in costume from 3 p.m. to close local time and scan their Rewards member card at checkout will receive a $6 entrée offer.1 In honor of Boorito's 25th anniversary, Chipotle is also bringing back its Boorito Costume Contest that will give fans a chance to score a VIP Card, worth over $500 in free Chipotle.2

Chipotle is celebrating Boorito on Halloween with a $6 entree offer for Chipotle Rewards members dressed in-costume in-restaurant on Halloween.

Throwing It Back: Chipotle's Nostalgic Boorito Costume Contest
In a nod to the brand's 2020 Halloween TikTok challenge, Chipotle is inviting fans to take their Halloween fits to the next level with a new Boorito Costume Contest on TikTok. From Monday, October 27 through Sunday, November 2, superfans who show off their costume for Boorito 2025 by posting a TikTok with #BooritoCostumeContest will be entered for a chance to win a VIP Card from Chipotle.2

"Boorito started as a simple way to bring people together on Halloween, and over 25 years it has grown to become the biggest annual celebration of our real fans and real food," said Chris Brandt, President, Chief Brand Officer. "Boorito has long served as a runway for our guests to show off their creative costumes, so we're leveraging TikTok to drive additional excitement and inspiration this year."

"Chip-or-Treat" at Chipotle for Free Sides All Month
Earlier this month, Chipotle introduced "Chip-or-Treat," a perk giving Chipotle Rewards members scary-good offers all spooky season. With 77% of adults feeling nostalgic about trick-or-treating,4 Chipotle invites Rewards members to "Chip-or-Treat" to enjoy offers like free guac, chips and extra Rewards points.3 

How Chip-or-Treat Works: 

Through Thursday, October 30, Chipotle Rewards members can "Chip-or-Treat" at Chipotle by purchasing an entrée on the Chipotle app, Chipotle.com or in-restaurant and scanning their Chipotle Rewards member card. 
Within a few hours after a purchase, Chipotle Rewards members will receive a "Chip-or-Treat" email providing a treat tailored to their preferences, valid for five days. 
Members can "Chip-or-Treat" once per week to earn up to four treats and four exclusive Rewards badges in October.
Build-Your-Own Chipotle: Now Available With Extra Protein, Plus $10 Off Offer
Chipotle recently introduced Build-Your-Own Chipotle (BYOC), a digital-exclusive family meal that brings a shareable, customizable spread of real ingredients to your home, designed to serve four to six and ready for pickup in as little as 15 minutes. It's the perfect pre-party fuel for Halloween house hangs and dorm gatherings leading up to the holiday, letting everyone build their own burrito bowls, salads, soft tacos, and even nachos. Now, guests have the option to add an extra 8 oz of protein, the equivalent to two servings, to their BYOC order. This allows guests to choose two different proteins.

Each order includes:

One protein (24 oz): choice of chicken, steak, braised beef barbacoa, carnitas or Sofritas
One rice: choice of white rice or brown rice
One bean: choice of black beans or pinto beans
One premium side: choice of guac or Queso Blanco
Choice of three salsas/toppings: sour cream, tomatillo-red chili salsa, tomatillo-green chili salsa, roasted chili-corn salsa, fresh tomato salsa
Shredded romaine lettuce and cheese
Two large bags of chips
Eight soft taco tortillas
Forks, napkins and bowls for six people5 
For a limited time, fans can enjoy $10 off their first BYOC order with code TRYBYOC through December 31 or until 500,000 redemptions, whichever comes first.6

This promotion is not affiliated with or authorized, endorsed, or sponsored by TikTok, any of its affiliates or personnel.

1 – Chipotle Rewards members can receive one (1) entrée item for US$6 when appearing in costume at a participating U.S. location and scanning for Rewards at point of sale. Valid only on October 31, 2025 beginning at 3:00 p.m. local time through restaurant closing; redemption is subject to availability. Not valid for kid's meals, catering orders or on third party ordering platforms. Limit one discounted item per guest. In-person redemption only; not valid for delivery or pickup orders. Extra cost for guacamole (except for veggie entrees), Queso Blanco, extra meat or other modifiers. Taxes, gratuities, and any sides are not included and are the responsibility of the guest. Restrictions may apply to use with other coupons, promotions, or special offers. Additional restrictions may apply; void where prohibited.

2 – NO PURCHASE NECESSARY. Open to legal residents of the 50 U.S. & D.C who are 18 years of age or older. Contest Period: October 27, 2025 at 9:00 a.m. PT – November 2, 2025 at 11:59 pm PT. To enter the Contest, post a video on TikTok showing off your Halloween costume using #BooritoCostumeContest. See Official Rules at http://chipotle.com/boorito-costume-contest for additional eligibility restrictions, judging criteria, prize descriptions/restrictions/ARV's, and complete details. Sponsor: CMG Strategy Co., LLC.

3 – Rewards members only; promotion runs October 6, 2025 to October 30, 2025. Regular menu entrée purchase required, excluding tax and tip. Weeks consist of Monday through Sunday; limited to one reward per week. For clarity purposes, "regular menu entrée item" means a burrito, burrito bowl, single order of three tacos, quesadilla (only available via the Chipotle app or on Chipotle.com), or a salad, subject to availability. A regular menu entrée item does not include kid's meals, 3-point meals, or single tacos. Must scan for rewards at time of purchase, or purchase in Rewards account using Chipotle mobile app or Chipotle.com. Purchase must be from participating U.S. restaurants only. Full Chipotle Rewards terms at chipotle.com/rewards-terms.

4 – Source: Ferrero North America 2024 Adultoween Survey

5 – Opt-in to receive napkins and utensils at digital checkout. 

6 – Valid for $10 off any one "Build-Your-Own" item, excluding 2 Large Chips & 3 Dips item, from participating Chipotle restaurants in the U.S. during regular operating hours. Valid for orders placed and fulfilled through December 31, 2025 or until 500,000 redemptions, whichever comes first. Must be ordered via order.chipotle.com or the Chipotle mobile app, with use of promo code TRYBYOC. Higher menu price and additional fees apply for delivery orders. Limit one discount per transaction. Not valid on Chipotle Catering, in-restaurant orders, or orders via third-party platforms. Redemption and deliveries are subject to availability. May not be combined with other coupons, promotions or special offers. Void where prohibited; additional restrictions may apply.

About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 3,800 restaurants as of June 30, 2025, in the United States, Canada, the United Kingdom, France, Germany, Kuwait, and United Arab Emirates and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. With over 130,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit chipotle.com.

SOURCE Chipotle Mexican Grill, Inc.

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The AT&T is displayed on the facade of one of its branches in Mexico City, Mexico September 10, 2025. REUTERS/Henry Romero Purchase Licensing Rights, opens new tab

Oct 22 (Reuters) - AT&T

(T.N), opens new tab added more wireless subscribers than expected in the third quarter on Wednesday, as bundled plans and heavy promotions around the latest iPhone launch helped it attract more customers in a fiercely competitive market.

Shares of the company were up 4% in premarket trading.

Sign up here.

The quarter ended September is a critical period for U.S. wireless carriers, with competition peaking around Apple's

(AAPL.O), opens new tab annual iPhone launch.

Like all other carriers, AT&T has also rolled out lucrative promotions for the iPhone 17 series to lock in new subscribers and encourage existing users to upgrade to pricier plans.

It added 405,000 monthly bill paying wireless subscribers, compared to expectations for 334,100 additions, according to FactSet.

By packaging wireless and fiber broadband services together for a discount, AT&T has encouraged more customers to take multiple offerings and reduce customer exits. More than 41% of fiber households have also opted for mobile plans.

Investor focus has also been on the company's recent strategic moves to bolster its network capabilities. AT&T recently announced a landmark $23 billion deal to acquire wireless spectrum licenses from EchoStar

(SATS.O), opens new tab.

Equipment revenue in the third quarter grew 6.1%, pushed by stronger phone sales. Operating costs in the mobility unit rose 3.8%, driven by higher expenses from selling more and pricier phones and increased spending on marketing and promotions.

Revenue from its business wireline unit fell 7.8% in the quarter, hurt by declines in legacy voice and data services.

On an adjusted basis, AT&T earned 54 cents per share, largely in line with estimates, according to LSEG data.

Total third-quarter revenue stood at $30.7 billion, missing estimates of $30.87 billion.

Reporting by Harshita Mary Varghese in Bengaluru; Editing by Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways
Nvidia is the only Magnificent Seven company that is expected to be a top 5 contributor to S&P 500 earnings growth this earnings season, according to a recent FactSet analysis. This time last year, four companies in the Mag 7 were in the top ten contributors to the S&P 500's aggregate profit growth.The gap between growth at the Mag 7 and the rest of the S&P 500 index has already shrunk, and is expected to narrow further over the next year.

The Magnificent Seven have been the stars of the S&P 500 for the past several years, but the group’s period of exceptional earnings growth may be nearing an end. 

Only one of the Magnificent Seven—AI chip giant Nvidia (NVDA)—is expected to be among the top five contributors to S&P 500 earnings growth in the third quarter, according to John Butters, Vice President and Senior Earnings Analyst at FactSet Research. This time last year, two of the Mag 7—Nvidia and Alphabet (GOOG)—were expected to be in the top five, and two more—Amazon (AMZN) and Meta Platforms (META)—were expected to make the top 10.

This year, the four other companies expected to contribute the most to index-level profit growth are Eli Lilly (LLY), Intel (INTC), Boeing (BA), and Micron (MU). Eli Lilly, Intel, and Boeing are all benefiting from easy comparisons against last year. Nvidia and Micron, on the other hand, were top contributors to growth last year and are expected to report earnings growth of 53% and 157%, respectively, underscoring how significant artificial intelligence demand has become to S&P 500 companies.

Why This Is Important
Their exceptionally strong earnings growth was one of the main reasons that Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta and Tesla were dubbed the "Magnificent Seven" in 2023. Their growth fueled much of the stock market's gains over the past few years. As their growth slows, the profitability of other S&P 500 companies counts for more when investors forecast the index's future value.

Mag 7 Growth Has Moderated, But Remains Better than Most
Artificial intelligence will also be the focus when the Magnificent Seven report earnings, starting with Tesla (TSLA) after markets close on Wednesday. Microsoft (MSFT), Alphabet and Meta Platforms will report exactly a week later, followed by Apple (AAPL) and Amazon next Thursday.

According to analysts surveyed by FactSet, the Mag 7’s earnings grew an estimated 14.9% last quarter, more than twice as fast as the so-called “Other 493” (6.7%). That gap would be larger without Tesla, which is expected to report its fourth straight quarter of contraction as it contends with inflation and high borrowing costs that have put a new car out of reach for many consumers. 

The only other company that is expected to report earnings declined since last year is Amazon, where profit likely fell by less than 1%, according to analyst estimates compiled by Visible Alpha. The rest of the Mag 7 companies with earnings in the next two weeks are expected to say their profits grew between 1% (Alphabet) and 10% (Microsoft) last quarter.

The “Other 493” are expected to continue to close the earnings gap over the next year. The Mag 7’s earnings growth is expected to hold steady around 15% through the first quarter of 2026, while the rest of the index’s growth rate is forecast to accelerate to 11% in the first quarter of 2026 and eventually reach 14.6% in the third quarter of next year, according to FactSet Research.

That said, the Mag 7 could outperform expectations as they did in the second quarter when earnings grew nearly 27%, easily outpacing Wall Street’s forecast for 14%. 

Do you have a news tip for Investopedia reporters? Please email us at

[email protected]

BioGaia AB (publ) (OTCPK:BIOGY) Q3 2025 Earnings Call October 22, 2025 3:30 AM EDT

Company Participants

Theresa Agnew - CEO & President
Alexander Kotsinas - Executive VP & CFO

Conference Call Participants

Kristofer Liljeberg-Svensson - DNB Carnegie, Research Division
Mattias Vadsten - SEB, Research Division
Mattias Häggblom - Handelsbanken Capital Markets AB, Research Division

Presentation

Operator

Welcome to BioGaia Q3 Report for 2025. [Operator Instructions] Now I will hand the conference over to CEO, Theresa Agnew; and CFO, Alexander Kotsinas. Please go ahead.

Theresa Agnew
CEO & President

Hi. This is Theresa Agnew, CEO of BioGaia, and Alex and I are here to present our Q3 results. So sales were SEK 327 million, which is an increase of 7% due to higher sales in Americas as well as Asia Pacific. Growth overall was 14% when excluding currency effects. Year-to-date, our growth is 8%, excluding currency effects and 4%, including currency. Our sales in Asia Pacific for the quarter increased by 17% and Americas increased by 10% and in EMEA decreased by 4%, primarily due to sales in Eastern Europe. We saw strong growth following increased media investments in the U.S. and other prioritized direct markets such as Canada, the U.K. and Australia. With our increased media, we've been attracting new consumers to the brand and enhancing our brand awareness. For the quarter, our EBIT is SEK 86 million, and our EBIT margin is 26%. And as you can see, this compares to 14% EBIT margin last year. This was lower due to the MetaboGen impairment loss of SEK 51 million. Our year-to-date EBIT margin is now 27%.

Just to remind you of our BioGaia company strategy, we have 3 strategic pillars. The first is Grow the Core, in which we focus on gut health, colic, oral health as well as immune health. Our second is Expansion Through

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