FARMERS NATIONAL BANC CORP /OH/ Segments Disclosure

NOTE 23 – SEGMENT INFORMATION

 

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

 

Accounting policies for segments are the same as those described in Note 1. Income taxes are calculated on operating income. Transactions among segments are made at fair value.

 

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

 

		Trust				Bank				Consolidated Segment
December 31, 2025		Segment				Segment				Totals
Total assets for reportable segments		$	17,000			$	5,230,175			$	5,247,175
Eliminations and other											(1,305	)
Total consolidated assets										$	5,245,870

 

		Trust				Bank				Consolidated Segment
December 31, 2024		Segment				Segment				Totals
Total assets for reportable segments		$	17,204			$	5,104,012			$	5,121,216
Eliminations and other											(2,292	)
Total consolidated assets										$	5,118,924

 

		Trust				Bank				Consolidated Segment
For year ended 2025		Segment				Segment				Totals
Interest income - loans including fees		$	0			$	191,003			$	191,003
Interest income - investments			0				38,937				38,937
Trust fees			11,061				0				11,061
Retirement plan consulting fees			3,650				0				3,650
Total consolidated segment revenues			14,711				229,940				244,651
Reconciliation of revenue
Other revenues											35,271
Total consolidated revenues										$	279,922
Interest expense - deposits			0				79,778				79,778
Interest expense - borrowings			0				11,570				11,570
Provision for credit losses and unfunded loans			0				7,069				7,069
Payroll expenses			5,956				56,240				62,196
Total consolidated segment expenses			5,956				154,657				160,613
Segment profit			8,755				75,283				84,038
Reconciliation of expenses
Other expenses *											54,263
Total consolidated expenses										$	214,876
Total consolidated income before taxes										$	65,046
Other segment disclosures
Occupancy and equipment		$	580			$	16,457			$	17,037
Intangible amortization		$	91			$	2,808			$	2,899

 

		Trust				Bank				Consolidated Segment
For year ended 2024		Segment				Segment				Totals
Interest income - loans including fees		$	0			$	185,710			$	185,710
Interest income - investments			0				36,675				36,675
Trust fees			10,099				0				10,099
Retirement plan consulting fees			2,637				0				2,637
Total consolidated segment revenues			12,736				222,385				235,121
Reconciliation of revenue
Other revenues											34,327
Total consolidated revenues										$	269,448
Interest expense - deposits			0				81,169				81,169
Interest expense - borrowings			0				18,195				18,195
Provision for credit losses and unfunded loans			0				7,966				7,966
Payroll expenses			5,398				53,467				58,865
Total consolidated segment expenses			5,398				160,797				166,195
Segment profit			7,338				61,588				68,926
Reconciliation of expenses
Other expenses *											47,826
Total consolidated expenses										$	214,021
Total consolidated income before taxes										$	55,427
Other segment disclosures
Occupancy and equipment		$	528			$	15,020			$	15,548
Intangible amortization		$	48			$	2,813			$	2,861

 

		Trust				Bank				Consolidated Segment
For year ended 2023		Segment				Segment				Totals
Interest income - loans including fees		$	0			$	171,808			$	171,808
Interest income - investments			0				36,869				36,869
Trust fees			9,047				0				9,047
Retirement plan consulting fees			2,467				0				2,467
Total consolidated segment revenues			11,514				208,677				220,191
Reconciliation of revenue
Other revenues											35,005
Total consolidated revenues										$	255,196
Interest expense - deposits			0				63,106				63,106
Interest expense - borrowings			0				12,443				12,443
Provision for credit losses and unfunded loans			0				9,153				9,153
Payroll expenses			4,950				52,351				57,301
Total consolidated segment expenses			4,950				137,053				142,003
Segment profit			6,564				71,624				78,188
Reconciliation of expenses
Other expenses *											54,495
Total consolidated expenses										$	196,498
Total consolidated income before taxes										$	58,698
Other segment disclosures
Occupancy and equipment		$	434			$	14,973			$	15,407
Intangible amortization		$	60			$	3,374			$	3,434

 

* Includes occupancy expenses, FDIC insurance, state and local taxes, professional fees, merger costs, advertising, intangible amortization, core processing charges, charitable donations and other operating expenses.

 

Bank segment includes Farmers Insurance and Investment.