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First & Farmers National Bank, Inc.

Somerset, KY · Cert 2738 · Pine Knob Holdings LLC

National charter · OCC · 11 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B in assets in KY3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks under $1B in assets in KY (n=69). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

62

Q2 2024Q2 2026peer median (50)

Asset Quality

41

Q2 2024Q2 2026peer median (50)

Profitability

68

Q2 2024Q2 2026peer median (50)

Liquidity

88

Q2 2024Q2 2026peer median

Efficiency

70

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

First & Farmers National Bank, Inc.

Somerset, KY · Cert 2738 · Pine Knob Holdings LLC

National charter · OCC · 1 affiliate bank · 11 branches (30 in holding)

Q2 2026

$714.2MAssets
$495.1MLoans
$630.7MDeposits
$78.3MEquity
Loan mix
93%RE $441.3M3%C&I $14.8M4%Consumer $20.8MQ2 2025Q2 2026
Deposit mix
72%Interest-bearing $452.6M28%Noninterest $178.1MQ2 2025Q2 2026

NIM

4.78%Q2 ’245.00%Q2 ’255.08%Q2 ’26+10%+5%

Non-interest income vs. expense

2.58%Q2 ’242.52%Q2 ’252.48%Q2 ’26+0%-4%

Executive Summary

  • Earnings: ROA of 1.50%, up 19 bps year over year; NIM at 3.94%.
  • Asset quality: problem loans at 0.77% of loans (+51 bps YoY), with net charge-offs at 0.05%.
  • Capital: tier 1 leverage ratio of 11.51%, up 7 bps from a year ago.
  • Funding: loans stand at 78.51% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.50%+19 bps YoY

Net Interest Margin (YTD, annualized)

3.94%+19 bps YoY

Efficiency Ratio (YTD, annualized)

50.78%-356 bps YoY

Tier 1 Leverage Ratio

11.51%+7 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets1.31%1.34%1.36%1.47%1.50%+19 bps
Return on Equity11.96%12.06%12.23%13.09%13.44%+148 bps
Net Interest Margin3.76%3.78%3.82%3.97%3.94%+19 bps
Efficiency Ratio54.34%53.90%54.11%51.80%50.78%-356 bps
Non-Interest Burden2.10%2.09%2.12%2.08%2.02%-8 bps
Growth
Asset Growth (YoY)-0.67%0.39%4.49%3.29%9.10%+977 bps
Loan Growth (YoY)1.43%2.27%2.08%2.62%5.97%+454 bps
Deposit Growth (YoY)-3.65%0.01%4.86%5.58%13.42%+1,707 bps
Asset Quality
Nonperforming Loans / Loans0.27%0.93%0.97%0.81%0.77%+51 bps
Net Charge-Offs / Loans0.00%0.01%-0.07%0.07%0.05%+4 bps
Allowance / Loans1.57%1.54%1.59%1.58%1.54%-3 bps
Allowance Coverage of NPLs5.9x1.6x1.6x1.9x2.0x-3.9x
Capital
Tier 1 Leverage Ratio11.43%11.75%11.47%11.52%11.51%+7 bps
Total Risk-Based Capital15.68%16.14%15.73%15.98%15.86%+18 bps
Equity / Assets11.21%11.62%11.29%11.25%10.97%-25 bps
Liquidity & Funding
Loans / Deposits84.03%84.43%83.39%81.25%78.51%-552 bps
Liquid Assets / Assets1.99%2.07%2.43%2.45%3.66%+167 bps
CRE / Total Capitaln/a174.24%180.28%174.20%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

First & Farmers National Bank, Inc.

Somerset, KY · Cert 2738 · Peer group: banks under $1B in assets in KY (n=69) · Pine Knob Holdings LLC

National charter · OCC · 1 affiliate bank · 11 branches (30 in holding)

Q2 2026

$714.2MAssets
$495.1MLoans
$630.7MDeposits
$78.3MEquity

Executive Summary

  • Strongest standing: return on assets outperforms 75% of banks under $1B in assets in KY (rank 17 of 69).
  • Widest gap: nonperforming loans / loans trails 62% of banks under $1B in assets in KY (rank 44 of 69).
  • Overall: at or above the peer median on 7 of 9 directional measures.

Return on Assets

1.45%

Rank 17 of 69

Net Interest Margin

3.94%

Rank 20 of 69

Efficiency Ratio

56.40%

Rank 22 of 69

Equity / Assets

10.97%

Rank 28 of 69

Non-interest income vs. expense

$3.2M$17.3MINCOMEEXPENSE
Unfavorable gap of $14.1M · efficiency ratio beats 70% of banks under $1B in assets in KY
Bank 56.40%Peer median 63.0%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets1.45%0.83%1.18%1.44%Beats 75%17 / 69
Return on Equity13.21%7.64%11.70%15.70%Beats 59%28 / 69
Net Interest Margin3.94%3.45%3.75%3.96%Beats 71%20 / 69
Efficiency Ratio56.40%55.32%62.99%70.80%Beats 70%22 / 69
Asset Quality
Nonperforming Loans / Loans0.77%0.18%0.52%1.14%Beats 38%44 / 69
Net Charge-Offs / Loans0.03%0.01%0.02%0.06%Beats 43%40 / 69
Capital
Tier 1 Capital Ratio14.61%11.33%13.58%16.27%Beats 59%28 / 69
Total Risk-Based Capital Ratio15.86%11.55%14.43%17.27%Beats 67%23 / 69
Equity / Assets10.97%8.31%9.91%12.53%Beats 59%28 / 69
Liquidity & Funding
Loans / Deposits78.51%71.40%81.07%88.03%42nd pctl40 / 69
Loans / Assets69.33%61.10%68.66%76.68%51st pctl34 / 69
Brokered Deposits / Depositsn/aNot reported for this institution