Press Release

Source: Farmers National Banc Corp.

John S. Gulas, President and CEO

20 South Broad Street P.O. Box 555

Canfield, OH 44406

330.533.3341

330.533.0451 (FAX)

Email: exec@fnbcanfield.com

FARMERS NATIONAL BANC CORP. REPORTS RESULTS FOR FOURTH QUARTER 2010

CONTINUED STRONG REVENUE GROWTH:

GROWTH IN TANGIBLE BOOK VALUE PER SHARE AND STRONG CAPITAL LEVELS:

IMPROVED ASSET QUALITY:

CANFIELD, Ohio (February 5, 2011) – Farmers National Banc Corp. (OTCBB: FMNB) today reported net income of $0.24 per diluted share for the quarter ended December 31, 2010, a 243% and 14% improvement when compared to the fourth quarter of 2009 and third quarter of 2010, respectively. Excluding gains and losses on sales of securities realized in each of the quarters, pre-tax, pre-provision income improved 40.5% and 14.0% compared to the fourth quarter of 2009 and third quarter of 2010, respectively. Total assets of $983 million at December 31, 2010 decreased 3.16% compared to December 31, 2009, resulting from a $20.3 million decrease of short-term borrowings due to a decline in repurchase agreement balances held by public fund customers. Additionally, tangible book value per share increased 10% to $5.95 per share as compared to $5.41 per share at December 31, 2009.

John S. Gulas, President and CEO, stated “Our pre-tax, pre-provision income increased to $6.3 million for the fourth quarter of 2010, which represents a 61% increase over the $3.9 million reported for the fourth quarter of 2009. Net interest income increased 10% and other income increased by 48%. The increases reflect the success of our efforts to grow income producing assets and fee income. A $1.5 million gain on the sale of securities in the current quarter contributed significantly to the increase in other income, but even without that contribution, other income for the fourth quarter increased by 17% over the prior comparable period. Our fourth quarter 2010 net income results reflect the improving trend of profitability we have been experiencing during the prior three quarters of 2010. During the past two years, we have implemented a strategy to earn our way through the ‘Great Recession’ by adding income producing assets and fee income and by enhancing expense management and our loan review process. We continue to see the benefits of this strategy through our increased earnings power and improving asset quality trends that are better than many of our peers.”

For the twelve months ended December 31, 2010, the Company reported net income of $9.0 million, a 54% increase from the $5.8 million for the same period in 2009. For the twelve months ended December 31, 2010, the Company reported net income of $0.66 per diluted share, a 50% increase from the $0.44 per diluted share for the same period of 2009. Returns on average assets and average equity equated to 0.87% and 10.46%, respectively, for the twelve month period ended December 31, 2010, compared to 0.60% and 7.32% for the same period of 2009. The increase in net income was primarily due to an increase in net interest income of $4.1 million during this period, compared to the same period in 2009, offset by a $2.0 million increase in provision for loan losses. The Company also recorded security gains of $2.7 million in 2010, compared to $943 thousand in 2009. The Company’s total assets reported at December 31, 2010 were $982.8 million, a decrease of 3.16%, compared to $1.01 billion in total assets recorded at December 31, 2009. Net loans were reported at $581.1 million at December 31, 2010, versus $602.0 million at the same time in 2009, a decrease of $20.9 million, or 3.5%. Over this same period, deposits decreased $16.5 million, or 2.1%, from $777.6 million at December 31, 2009 to $761.1 million at December 31, 2010. The decrease in loan and deposit levels is a result of the Company’s efforts to carefully monitor and achieve appropriate capital to asset ratios in this economy. “Our successful capital raise, which closed on January 31, 2011, will provide the fuel needed to again grow our asset base and provide additional revenue producing opportunities,” stated Gulas.

Stockholders’ equity totaled $88.05 million, or 8.96% of total assets, at December 31, 2010, an increase of $7.4 million, or 9.2%, compared to $80.6 million at December 31, 2009. The increase in equity was a result of net income, offset by mark to market adjustments in the Company’s investment securities and cash dividends paid to stockholders during the past twelve months. Stockholders received a $0.03 per share cash dividend on December 31, 2010 and a total of $0.12 per share cash dividends paid in the past four quarters. Book value increased 8.2% from $5.96 per share at December 31, 2009 to $6.45 per share at December 31, 2010. The Company’s tangible book value increased 10.0% from $5.41 per share at December 31, 2009 to $5.95 per share at December 31, 2010.

Net Interest Income -— Net interest income was $9.8 million for the fourth quarter of 2010, which compared to $8.8 million in the fourth quarter of 2009. This represents a 10.4% increase quarter over quarter. The net interest margin to average earning assets on a fully taxable equivalent basis improved 22 basis points to 4.16% for the three months ended December 31, 2010, compared to 3.94% for the same period in the prior year. In comparing the two period quarters, yields on earning assets decreased 47 basis points, while the cost of interest bearing liabilities decreased 73 basis points.

On a year-to-date basis, net interest income improved to $37.4 million for the twelve month period ended December 31, 2010, compared to $33.2 million for the same period in 2009. The net interest margin to average earning assets on a fully taxable equivalent basis was 4.10% for the twelve months ended December 31, 2010, compared to 3.88% for the same period in the prior year, an improvement of 22 basis points.

Noninterest Income -— Noninterest income was $4.5 million for the fourth quarter of 2010, which is a $1.4 million or 47.6%, improvement over results for the same quarter of 2009. The Company recognized gains on sales of securities of $1.5 million in the three months ended December 31, 2010 compared to a $509 thousand gain for the same period in the prior year. Excluding gains on sales of securities, noninterest income for the fourth quarter of 2010 would have improved by 17.0% when compared to the same quarter of 2009. Service charges on deposit accounts were $540 thousand for the current quarter, compared to $574 thousand in the same quarter in the prior year. This decline was primarily a result of a decline in overdraft fee income.

Noninterest income for the twelve months ended December 31, 2010 was $13.2 million, compared to $9.4 million for the same period in 2009. The increase in noninterest income was primarily due to a $1.4 million increase in trust fee income and a $1.7 million increase in gains on sales of securities. Farmers Trust Company was purchased on March 31, 2009; therefore, the prior year’s results included only nine months of income compared to twelve months in 2010. The addition of Farmers Trust Company, and its growth from $822 million in trust assets at December 31, 2009 to over $912 million in assets at December 31, 2010, complements our existing core retail and asset management services. Excluding gains on sales of securities, noninterest income for the twelve months ended December 31, 2010 would have improved by 24.7% when compared to the same period of 2009.

Noninterest Expense -— Noninterest expense totaled $7.87 million for the fourth quarter of 2010, which is $47 thousand less than the $7.92 million in the previous quarter. This decrease is spread among several expense categories. The current period’s total noninterest expense of $7.87 million is $51 thousand less than the $7.92 million reported for the same quarter in 2009.

Noninterest expense for the twelve months ended December 31, 2010 was $30.96 million, compared to $29.66 million for the same period in 2009, representing an increase of $1.3 million, or 4.41%. The increase resulted from the inclusion of expenses associated with Farmers Trust Company throughout 2010. Because Farmers Trust Company was acquired on March 31, 2009, results for 2009 included only nine months of expenses associated with its operations. Farmers Trust Company’s noninterest expense was $4.6 million for 2010, compared to $3.4 million reported for the same period in 2009.

The Company’s tax equivalent efficiency ratio for the twelve month period ended December 31, 2010 was 61.10% compared to 67.00% for the same period in 2009. The improvement in the efficiency ratio was the result of the 12.5% improvement in net interest income and a $2.1 million increase in noninterest income, excluding gains on sales of securities.

Asset Quality -— Non-performing loans totaled $8.9 million at December 31, 2010, a decline of 3.3% and 11.9%, compared to September 30, 2010 and December 31, 2009, respectively. Non-performing loans equaled 1.51% of total loans at December 31, 2010, the lowest percentage since December 31, 2008. Loans 30–89 days delinquent increased $2.0 million or 34.5% to $7.9 million since September 30, 2010. This increase is primarily the result of one residential real estate loan relationship. It should be noted that loans 30-89 days delinquent at December 31, 2010 are $1.3 million less than the $9.2 million reported at December 31, 2009. On December 31, 2010, the ratio of the allowance for loan losses (ALLL) to non-performing loans was 105%, compared to 85% in the preceding quarter, and 73% at December 31, 2009. At December 31, 2010, the ALLL/total loan ratio was 1.58% compared to 1.21% at December 31, 2009. Although the Company has experienced a lower level of net charge-offs and non-performing loans in the fourth quarter of 2010, management believes an increase in the allowance for loan losses is necessary at December 31, 2010 because of an increase in the historical loss experience of commercial real estate loans and commercial and industrial loans that are classified as substandard. Substandard loans are those that exhibit one or more structural weaknesses and are characterized by the distinct possibility that the Company will sustain some loss on the loan unless the weaknesses are corrected. At December 31, 2010, the ALLL balance was $9.3 million, up 25.8% from $7.4 million at December 31, 2009. For the three months ended December 31, 2010, management provided $2.2 million to the allowance for loan losses, an increase of $700 thousand from the preceding quarter and a decrease of $800 thousand over the same three month period in the prior year. Net charge-offs for the quarter ending December 31, 2010 were $677 thousand compared to $2.8 million and $2.0 million for the fourth quarter of 2009 and the third quarter of 2010, respectively.

Farmers National Banc Corp. is the bank holding company for the Farmers National Bank of Canfield, Farmers National Insurance, LLC and Farmers Trust Company. Farmers’ operates sixteen banking offices throughout Mahoning, Trumbull and Columbiana Counties and two trust offices located in Youngstown and Howland. The bank offers a wide range of banking and investment services to companies and individuals, and maintains a website at www.farmersbankgroup.com.

Non-GAAP Disclosure

This press release includes disclosures of our tangible common equity ratio and pre-tax, pre-provision income and pre-tax,pre-provision income, excluding gains (losses) on sales of securities, which are non-GAAP financial measures. 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 generally accepted accounting principles in the United States (GAAP). The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and the Company’s 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 are included in the tables following Consolidated Financial Highlights below.

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the Company’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 the Company’s control. The Company’s 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 the Company’s actual results to differ materially from those described in the forward-looking statements can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 and Quarterly Report on Form 10-Q for the period ended September 30, 2010, which have been filed with the Securities and Exchange Commission and are available on the Company’s website (www.farmersbankgroup.com) and on the Securities and Exchange Commission’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. The Company 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.