EX-99.1 2 d871051dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

January 29, 2025

Press Release

 

  Source:

Farmers National Banc Corp.

Kevin J. Helmick, President and CEO

20 South Broad Street, P.O. Box 555

Canfield, OH 44406

330.533.3341

Email: [email protected]

FARMERS NATIONAL BANC CORP. REPORTS SOLID EARNINGS AND

IMPROVING MARGIN FOR THE FOURTH QUARTER OF 2024

 

   

168 consecutive quarters of profitability

 

   

Net interest margin improved from 2.66% in the third quarter of 2024 to 2.72% in the fourth quarter of 2024

 

   

Efficiency ratio declined to 56.4% for the fourth quarter of 2024

 

   

Continued strong performance in fee-based businesses

 

   

Completed acquisition of Crest Retirement Advisors LLC based in Dublin, OH

 

   

Wealth management assets under management increased to $4.2 billion at December 31, 2024 including the Crest addition

CANFIELD, Ohio (January 29, 2025) – Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today reported net income of $14.4 million, or $0.38 per diluted share, for the quarter ended December 31, 2024, compared to $14.6 million, or $0.39 per diluted share, for the quarter ended December 31, 2023. Net income for the fourth quarter of 2024 included certain pretax items. Excluding these items (non-GAAP), net income for the fourth quarter of 2024 was $14.5 million, or $0.39 per diluted share.

Kevin J. Helmick, President and CEO, stated “Our team has done an outstanding job navigating a dynamic economic and interest rate cycle in 2024. We are proud to provide our Ohio and Pennsylvania communities with diverse, personalized, and market-leading financial solutions and are excited about expanding our fee business into the greater Columbus market with the acquisition of Crest Retirement. Our fourth quarter performance highlights the positive momentum underway in our business and we continue to believe Farmers is very well positioned to grow earnings in 2025.”

Balance Sheet

Total assets were $5.12 billion at December 31, 2024, compared to $5.24 billion at September 30, 2024, and $5.08 billion at December 31, 2023. Loans declined slightly to $3.27 billion at December 31, 2024 from $3.28 billion at September 30, 2024, but increased $70.2 million from December 31, 2023. The decrease from the prior quarter was primarily due to declines in residential real estate and indirect lending, while the increase from December 31, 2023, was driven by increased commercial real estate balances along with increased HELOC balances.

Securities available for sale totaled $1.27 billion at December 31, 2024, compared to $1.29 billion at September 30, 2024 and $1.30 billion at December 31, 2023. Gross unrealized losses on the portfolio totaled $244.1 million at December 31, 2024 compared to $189.4 million at September 30, 2024 and $217.1 million at December 31, 2023. Interest rates rose sharply in the fourth quarter of 2024 from the third quarter of 2024 driving the increase in gross unrealized losses during the quarter. Volatility in the bond market is expected to continue in 2025.

Total deposits declined to $4.27 billion at December 31, 2024 from $4.36 billion at September 30, 2024, but increased $89.4 million from $4.18 billion at December 31, 2023. The increase since December 31, 2023, was driven by the acquisition of $75.0 million in brokered deposits in the third quarter of 2024 and growth in customer deposits (non-brokered) of $14.4 million. The decline since September 30, 2024 was driven by the seasonal decline in public funds which totaled approximately $113.2 million.

Total stockholders’ equity declined to $406.0 million at December 31, 2024, compared to $439.7 million at September 30, 2024 and $404.4 million at December 31, 2023. The decrease from September 30, 2024 was primarily driven by an increase in the unrealized losses on investment securities. The increase since December 31, 2023 was primarily driven by an increase in retained earnings offset by an increase in unrealized losses on investment securities.


Credit Quality

Non-performing loans increased to $22.8 million at December 31, 2024, compared to $19.1 million at September 30, 2024 and $15.1 million at December 31, 2023. The increase since September 30, 2024 was primarily driven by the addition of a single commercial credit with a balance of $2.6 million. The increase from December 31, 2023 resulted from the addition of a single commercial real estate credit with a remaining balance of $8.1 million and the $2.6 million commercial credit mentioned above offset by declines in the balances of other non-performing loans. The Company expects that a single non-performing loan with a balance of $1.2 million will be paid off in the first quarter of 2025 and two other non-performing loans totaling $1.6 million will be sold in the first quarter of 2025 at par. Non-performing loans to total loans were 0.70% at December 31, 2024 compared to 0.58% at September 30, 2024 and 0.47% at December 31, 2023. The Company’s loans which were 30-89 days delinquent were $13.0 million at December 31, 2024, or 0.40% of total loans. This is down from $15.6 million at September 30, 2024 and $16.7 million at December 31, 2023.

The Company’s provision for credit losses and unfunded commitments totaled $295,000 for the quarter ended December 31, 2024, compared to $286,000 for the quarter ended December 31, 2023. Annualized net charge-offs as a percentage of average loans were 0.08% for the fourth quarter of 2024, compared to 0.10% for the fourth quarter of 2023. The allowance for credit losses to total loans was 1.10% at December 31, 2024, compared to 1.10% at September 30 2024, and 1.08% at December 31, 2023.

Net Interest Income

The Company recorded $32.7 million of net interest income in the fourth quarter of 2024 compared to $32.8 million in the fourth quarter of 2023. Average interest earning assets increased to $4.91 billion in the fourth quarter of 2024 compared to $4.82 billion for the fourth quarter of 2023. The increase was driven by an increase in average loan balances of $82.2 million and an increase in federal funds sold and other earning assets of $39.1 million. These increases were offset by a decline in the average balance of investment securities. The net interest margin declined to 2.72% in the fourth quarter of 2024 compared to 2.78% in the fourth quarter of 2023 but was up sharply from the 2.66% margin reported in the third quarter of 2024. The year-over-year decline in net interest margin was due to higher funding costs outstripping the increase in yields on earning assets. The current rate cutting cycle by the Federal Reserve that began in September of 2024 had a significant impact on funding costs in the fourth quarter of 2024 and was the primary reason for the net interest margin increasing during the fourth quarter. The yield on interest bearing liabilities declined from 2.84% in the third quarter of 2024 to 2.72% in the fourth quarter of 2024. The Company expects its net interest margin will continue to expand in 2025 as funding costs reprice lower. Excluding acquisition marks and PPP interest, non-GAAP, the Company’s net interest margin was 2.56% in the fourth quarter of 2024 compared to 2.48% in the third quarter of 2024 and 2.58% in the fourth quarter of 2023.

Noninterest Income

Noninterest income declined from $12.2 million in the fourth quarter of 2023 to $11.4 million in the fourth quarter of 2024 primarily due to a decline of $1.0 million in the net gain on sale of loans. During the fourth quarter of 2023, the Company recognized a gain on the sale of commercial loans totaling $915,000. No gain was recognized on commercial loan sales in 2024.

Income from service charges on deposit accounts increased $213,000 to $1.9 million for the fourth quarter of 2024 compared to $1.7 million for the fourth quarter in 2023. The Company undertook a review of all service charges in late 2023 and early 2024 and implemented fee increases across deposit product lines in the second quarter of 2024. Trust fees in the fourth quarter of 2024 increased by $318,000 to $2.7 million compared to $2.4 million in the fourth quarter of 2023. The increase was due to continued growth in the business unit. Insurance agency commissions declined to $1.3 million in the fourth quarter of 2024 from $1.5 million in the fourth quarter of 2023. The fourth quarter of 2023 included an accrual adjustment that did not occur in 2024. Retirement plan consulting fees increased from $631,000 in the fourth quarter of 2023 to $719,000 in the fourth quarter of 2024. The increase was due to increased business in the division. The acquisition of Crest Retirement Advisors LLC in late December of 2024 is expected to further bolster this unit in 2025. Other mortgage banking fee income increased to $285,000 during the fourth quarter of 2024 from $139,000 in the fourth quarter of 2023. The increase was driven by a recovery on the Company’s mortgage servicing rights in the fourth quarter of 2024. Debit card income grew to $2.2 million in the fourth quarter of 2024 from $1.7 million in the fourth quarter of 2023 as better volumes were realized in the current period. Other noninterest income declined to $856,000 in the fourth quarter of 2024 from $1.6 million in the fourth quarter of 2023. The Company recorded $1.1 million in SBIC income in the fourth quarter of 2023 compared to $527,000 in the fourth quarter of 2024. SBIC investments continue to generate solid returns but income can fluctuate wildly quarter to quarter.

Noninterest Expense

Noninterest expense declined to $26.2 million for the fourth quarter of 2024 compared to $27.0 million for the fourth quarter of 2023. Salaries and employee benefits were $14.4 million for the fourth quarter of 2024 compared to $14.9 million for the fourth quarter of 2023. The decrease was primarily driven by lower healthcare expenses. FDIC and state and local taxes were lower by $465,000 in the fourth quarter of 2024 compared to the fourth quarter of 2023. The decrease was primarily driven by a decrease in FDIC premiums. Professional fees declined to $785,000 for the period ended December 31, 2024, compared to $1.0 million for the period ended December 31, 2023 due to lower legal and consulting expense in the fourth quarter of 2024. The fourth quarter of 2024 included $92,000 of merger related charges for the Crest acquisition compared to $452,000 of merger related charges in the fourth quarter of 2023 for the Emclaire


acquisition. Advertising expense declined to $191,000 in the fourth quarter of 2024 compared to $414,000 in the fourth quarter of 2023. The decline was due to an over accrual for advertising expense that was not recognized. Intangible amortization increased to $914,000 in the fourth quarter of 2024 from $578,000 for the fourth quarter of 2023. This increase was driven by acceleration in the amortization from the Cortland acquisition. Other noninterest expense increased to $3.5 million in the fourth quarter of 2024 up from the $3.2 million recognized in the fourth quarter of 2023. The increase was primarily due to $208,000 of operational losses during the fourth quarter of 2024 compared to operational recoveries of $102,000 in the fourth quarter of 2024.

Liquidity

At December 31, 2024, the Company had access to an additional $549.7 million of FHLB borrowing capacity, along with $414.0 million in available for sale securities that are available for additional pledging. The Company’s loan to deposit ratio was 76.6% at December 31, 2024 while the Company’s average deposit balance per account (excluding collateralized deposits) was $25,188 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 $5.1 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 five trust offices and offers services in the same geographic markets. Total wealth management assets under care at December 31, 2024 are $4.2 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, and possibility of a recession; and the other factors contained in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2023 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 Twelve Months Ended  
     Dec. 31,     Sept. 30,     June 30,     March 31,     Dec. 31,     Dec. 31,     Dec. 31,     Percent  
     2024     2024     2024     2024     2023     2024     2023     Change  

Total interest income

   $ 57,909     $ 57,923     $ 56,846     $ 55,054     $ 55,069     $ 227,732     $ 213,335       6.7

Total interest expense

     25,170       26,047       24,780       23,367       22,239       99,364       75,549       31.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     32,739       31,876       32,066       31,687       32,830       128,368       137,786       -6.8

Provision (credit) for credit losses

     295       7,008       1,112       (449     286       7,966       9,153       -13.0

Noninterest income

     11,413       12,340       9,606       8,357       12,156       41,716       41,861       -0.3

Acquisition related costs

     92       0       0       0       452       92       5,475       -98.3

Other expense

     26,082       27,075       26,403       27,039       26,520       106,599       106,321       0.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     17,683       10,133       14,157       13,454       17,728       55,427       58,698       -5.6

Income taxes

     3,292       1,598       2,374       2,214       3,151       9,478       8,766       8.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 14,391     $ 8,535     $ 11,783     $ 11,240     $ 14,577     $ 45,949     $ 49,932       -8.0
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average diluted shares outstanding

     37,616       37,567       37,487       37,479       37,426       37,512       37,498    

Basic earnings per share

     0.38       0.23       0.32       0.30       0.39       1.23       1.34    

Diluted earnings per share

     0.38       0.23       0.31       0.30       0.39       1.22       1.33    

Cash dividends per share

     0.17       0.17       0.17       0.17       0.17       0.68       0.68    

Performance Ratios

                

Net Interest Margin (Annualized)

     2.72     2.66     2.71     2.70     2.78     2.69     2.91  

Efficiency Ratio (Tax equivalent basis)

     56.42     58.47     60.80     61.54     57.84     59.26     59.24  

Return on Average Assets (Annualized)

     1.12     0.66     0.93     0.90     1.17     0.90     0.99  

Return on Average Equity (Annualized)

     13.43     8.18     12.15     11.47     17.98     11.28     13.97  

Other Performance Ratios (Non-GAAP)

                

Return on Average Tangible Assets

     1.16     0.69     0.97     0.93     1.22     0.94     1.03  

Return on Average Tangible Equity

     23.95     14.94     23.74     21.88     43.77     21.05     30.23  

 

Consolidated Statements of Financial Condition                                   
     Dec. 31,      Sept. 30,      June 30,      March 31,      Dec. 31,  
     2024      2024      2024      2024      2023  

Assets

              

Cash and cash equivalents

   $ 85,738      $ 189,136      $ 180,987      $ 148,630      $ 103,658  

Debt securities available for sale

     1,266,553        1,293,350        1,246,730        1,270,149        1,299,701  

Other investments

     45,405        33,617        37,594        34,619        35,311  

Loans held for sale

     5,005        2,852        2,577        1,854        3,711  

Loans

     3,268,346        3,280,517        3,237,369        3,181,318        3,198,127  

Less allowance for credit losses

     35,863        36,186        33,991        33,159        34,440  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Loans

     3,232,483        3,244,331        3,203,378        3,148,159        3,163,687  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Other assets

     483,740        473,217        485,587        476,599        472,282  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Assets

   $ 5,118,924      $ 5,236,503      $ 5,156,853      $ 5,080,010      $ 5,078,350  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities and Stockholders’ Equity

              

Deposits

              

Noninterest-bearing

   $ 965,507      $ 969,682      $ 968,693      $ 977,475      $ 1,026,630  

Interest-bearing

     3,226,321        3,317,223        3,237,142        3,220,650        3,150,756  

Brokered time deposits

     74,951        74,932        0        0        0  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total deposits

     4,266,779        4,361,837        4,205,835        4,198,125        4,177,386  

Other interest-bearing liabilities

     391,150        371,038        494,890        433,777        443,663  

Other liabilities

     54,967        63,950        59,434        51,082        52,886  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

     4,712,896        4,796,825        4,760,159        4,682,984        4,673,935  

Stockholders’ Equity

     406,028        439,678        396,694        397,026        404,415  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Liabilities and Stockholders’ Equity

   $ 5,118,924      $ 5,236,503      $ 5,156,853      $ 5,080,010      $ 5,078,350  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Period-end shares outstanding

     37,586        37,574        37,575        37,546        37,503  

Book value per share

   $ 10.80      $ 11.70      $ 10.56      $ 10.57      $ 10.78  

Tangible book value per share (Non-GAAP)*

     5.80        6.69        5.53        5.52        5.71  

 

*

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


     For the Three Months Ended     For the Twelve Months Ended  
     Dec. 31,     Sept. 30,     June 30,     March 31,     Dec. 31,     Dec. 31,     Dec. 31,  
Capital and Liquidity    2024     2024     2024     2024     2023     2024     2023  

Common Equity Tier 1 Capital Ratio (a)

     11.26     10.91     10.94     10.88     10.61    

Total Risk Based Capital Ratio (a)

     14.67     14.34     14.42     14.38     14.06    

Tier 1 Risk Based Capital Ratio (a)

     11.75     11.39     11.43     11.37     11.10    

Tier 1 Leverage Ratio (a)

     8.37     8.20     8.26     8.19     8.02    

Equity to Asset Ratio

     7.93     8.40     7.69     7.82     7.96    

Tangible Common Equity Ratio (b)

     4.42     4.98     4.18     4.24     4.38    

Net Loans to Assets

     63.15     61.96     62.12     61.97     62.30    

Loans to Deposits

     76.60     75.21     76.97     75.78     76.56    

Asset Quality

              

Non-performing loans

   $ 22,818     $ 19,076     $ 12,870     $ 11,951     $ 15,063      

Non-performing assets

     22,903       19,137       12,975       12,215       15,321      

Loans 30 - 89 days delinquent

     13,032       15,562       18,546       14,069       16,705      

Charged-off loans

     928       5,116       661       1,282       972       7,987       2,937  

Recoveries

     293       504       98       271       172       1,166       681  

Net Charge-offs

     635       4,612       563       1,011       800       6,821       2,256  

Annualized Net Charge-offs to Average Net Loans

     0.08     0.58     0.07     0.13     0.10     0.21     0.07

Allowance for Credit Losses to Total Loans

     1.10     1.10     1.05     1.04     1.08    

Non-performing Loans to Total Loans

     0.70     0.58     0.40     0.38     0.47    

Loans 30 - 89 Days Delinquent to Total Loans

     0.40     0.47     0.57     0.44     0.52    

Allowance to Non-performing Loans

     157.17     189.69     264.11     277.46     228.64    

Non-performing Assets to Total Assets

     0.45     0.37     0.25     0.24     0.30    

 

(a)

December 31, 2024 ratio is estimated

(b)

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

 

            For the Three Months Ended         
     Dec. 31,      Sept. 30,      June 30,      March 31,      Dec. 31,  
End of Period Loan Balances    2024      2024      2024      2024      2023  

Commercial real estate

   $ 1,382,714      $ 1,372,374      $ 1,348,675      $ 1,339,372      $ 1,335,806  

Commercial

     349,966        358,247        343,694        335,747        346,354  

Residential real estate

     845,081        852,444        849,561        836,252        843,697  

HELOC

     158,014        155,967        151,511        143,696        142,441  

Consumer

     259,954        269,231        268,606        256,846        259,784  

Agricultural loans

     262,392        261,773        265,035        260,425        261,288  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total, excluding net deferred loan costs

   $ 3,258,121      $ 3,270,036      $ 3,227,082      $ 3,172,338      $ 3,189,370  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

            For the Three Months Ended         
     Dec. 31,      Sept. 30,      June 30,      March 31,      Dec. 31,  
End of Period Customer Deposit Balances    2024      2024      2024      2024      2023  

Noninterest-bearing demand

   $ 965,507      $ 969,682      $ 968,693      $ 977,474      $ 1,026,630  

Interest-bearing demand

     1,366,255        1,453,288        1,380,266        1,381,383        1,362,609  

Money market

     682,558        676,664        677,058        646,308        593,975  

Savings

     414,796        418,771        433,166        452,949        468,890  

Certificate of deposit

     762,712        768,500        746,652        740,011        725,282  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total customer deposits

   $ 4,191,828      $ 4,286,905      $ 4,205,835      $ 4,198,125      $ 4,177,386  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

     For the Three Months Ended      For the Twelve Months Ended  
     Dec. 31,      Sept. 30,     June 30,     March 31,     Dec. 31,      Dec. 31,     Dec. 31,  
Noninterest Income    2024      2024     2024     2024     2023      2024     2023  

Service charges on deposit accounts

   $ 1,890      $ 1,992     $ 1,846     $ 1,583     $ 1,677      $ 7,311     $ 6,322  

Bank owned life insurance income, including death benefits

     613        688       652       707       617        2,659       2,442  

Trust fees

     2,700        2,544       2,345       2,510       2,382        10,099       9,047  

Insurance agency commissions

     1,273        1,416       1,255       1,528       1,540        5,472       5,444  

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

     10        (403     (124     (2,120     19        (2,638     (471

Retirement plan consulting fees

     719        677       623       617       631        2,637       2,467  

Investment commissions

     621        476       478       432       589        2,007       1,978  

Net gains on sale of loans

     282        506       417       297       1,280        1,502       2,391  

Other mortgage banking fee income (loss), net

     285        (168     192       125       139        435       711  

Debit card and EFT fees

     2,164        1,993       1,760       1,567       1,697        7,484       7,059  

Other noninterest income

     856        2,619       162       1,111       1,585        4,748       4,471  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 

Total Noninterest Income

   $ 11,413      $ 12,340     $ 9,606     $ 8,357     $ 12,156      $ 41,716     $ 41,861  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

 


     For the Three Months Ended      For the Twelve Months Ended  
     Dec. 31,      Sept. 30,      June 30,      March 31,      Dec. 31,      Dec. 31,      Dec. 31,  
Noninterest Expense    2024      2024      2024      2024      2023      2024      2023  

Salaries and employee benefits

   $ 14,424      $ 14,874      $ 14,558      $ 15,069      $ 14,871      $ 58,925      $ 57,374  

Occupancy and equipment

     4,075        3,968        3,815        3,730        3,896        15,588        15,434  

FDIC insurance and state and local taxes

     1,019        1,480        1,185        1,345        1,484        5,029        5,848  

Professional fees

     785        1,084        1,194        1,254        1,004        4,317        4,351  

Merger related costs

     92        0        0        0        452        92        5,475  

Advertising

     191        435        445        431        414        1,503        1,793  

Intangible amortization

     914        629        630        688        578        2,861        3,434  

Core processing charges

     1,201        1,186        1,099        1,135        1,057        4,622        4,639  

Other noninterest expenses

     3,471        3,419        3,477        3,387        3,216        13,754        13,448  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Noninterest Expense

   $ 26,172      $ 27,075      $ 26,403      $ 27,039      $ 26,972      $ 106,691      $ 111,796  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)

 

     Three Months Ended     Three Months Ended  
     December 31, 2024     December 31, 2023  
     AVERAGE             YIELD/     AVERAGE             YIELD/  
     BALANCE      INTEREST (1)      RATE (1)     BALANCE      INTEREST (1)      RATE (1)  

EARNING ASSETS

                

Loans (2)

   $ 3,270,825      $ 47,286        5.78   $ 3,188,581      $ 44,868        5.63

Taxable securities

     1,119,391        6,850        2.45       1,113,107        6,536        2.35  

Tax-exempt securities (2)

     379,342        2,991        3.15       411,860        3,235        3.14  

Other investments

     38,855        420        4.32       37,625        529        5.62  

Federal funds sold and other

     104,289        987        3.79       65,236        564        3.46  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total earning assets

     4,912,702        58,534        4.77       4,816,409        55,732        4.63  

Nonearning assets

     247,199             163,905        
  

 

 

         

 

 

       

Total assets

   $ 5,159,901           $ 4,980,314        
  

 

 

         

 

 

       

INTEREST-BEARING LIABILITIES

                

Time deposits

   $ 765,674      $ 7,463        3.90   $ 712,485      $ 6,291        3.53

Brokered time deposits

     74,941        822        4.39       96,634        1,315        5.44  

Savings deposits

     1,091,547        4,056        1.49       1,068,465        2,918        1.09  

Demand deposits - interest bearing

     1,419,048        8,731        2.46       1,393,252        7,922        2.27  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing deposits

     3,351,210        21,072        2.52       3,270,836        18,446        2.26  

Short term borrowings

     260,369        3,105        4.77       206,826        2,749        5.32  

Long term borrowings

     86,096        993        4.61       88,609        1,043        4.71  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total borrowed funds

     346,465        4,098        4.73       295,435        3,792        5.13  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

     3,697,675        25,170        2.72       3,566,271        22,238        2.49  

NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY

  

Demand deposits - noninterest bearing

     973,788             1,035,405        

Other liabilities

     59,792             54,306        

Stockholders’ equity

     428,646             324,332        
  

 

 

         

 

 

       

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 5,159,901           $ 4,980,314        
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income and interest rate spread

      $ 33,364        2.05      $ 33,494        2.14
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest margin

           2.72           2.78
        

 

 

         

 

 

 

 

(1)

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

(2)

For 2024, adjustments of $94 thousand and $530 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2023, adjustments of $86 thousand and $577 thousand, 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.


     Twelve Months Ended     Twelve Months Ended  
     December 31, 2024     December 31, 2023  
     AVERAGE             YIELD/     AVERAGE             YIELD/  
     BALANCE      INTEREST (1)      RATE (1)     BALANCE      INTEREST (1)      RATE (1)  

EARNING ASSETS

                

Loans (2)

   $ 3,227,384      $ 186,032        5.76   $ 3,155,858      $ 172,161        5.46

Taxable securities

     1,110,905        26,838        2.42       1,143,547        26,231        2.29  

Tax-exempt securities (2)

     386,643        12,165        3.15       419,557        13,283        3.17  

Other investments

     35,402        1,450        4.10       39,559        1,986        5.02  

Federal funds sold and other

     96,288        3,727        3.87       74,950        2,476        3.30  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total earning assets

     4,856,622        230,212        4.74       4,833,471        216,137        4.47  

Nonearning assets

     234,297             205,683        
  

 

 

         

 

 

       

Total assets

   $ 5,090,919           $ 5,039,154        
  

 

 

         

 

 

       

INTEREST-BEARING LIABILITIES

                

Time deposits

   $ 745,945      $ 29,329        3.93   $ 654,717      $ 19,462        2.97

Brokered time deposits

     25,389        1,108        4.36       132,895        6,204        4.67  

Savings deposits

     1,095,470        16,144        1.47       1,113,561        9,899        0.89  

Demand deposits - interest bearing

     1,396,193        34,588        2.48       1,415,425        27,541        1.95  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

Total interest-bearing deposits

     3,262,997        81,169        2.49       3,316,598        63,106        1.90  

Short term borrowings

     293,488        14,105        4.81       160,964        8,357        5.19  

Long term borrowings

     87,749        4,090        4.66       88,439        4,086        4.62  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total borrowed funds

     381,237        18,195        4.77       249,403        12,443        4.99  
  

 

 

    

 

 

      

 

 

    

 

 

    

Total interest-bearing liabilities

     3,644,234        99,364        2.73       3,566,001        75,549        2.12  

NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY

                

Demand deposits - noninterest bearing

   $ 981,115           $ 1,065,389        

Other liabilities

     58,134             50,302        

Stockholders’ equity

     407,436             357,462        
  

 

 

         

 

 

       

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 5,090,919           $ 5,039,154        
  

 

 

    

 

 

      

 

 

    

 

 

    

Net interest income and interest rate spread

      $ 130,848        2.01      $ 140,588        2.35
     

 

 

    

 

 

      

 

 

    

 

 

 

Net interest margin

           2.69           2.91
        

 

 

         

 

 

 

 

(1)

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

(2)

For 2024, adjustments of $322 thousand and $2.2 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2023, adjustments of $268 thousand and $1.9 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 Twelve Months Ended  
     Dec. 31,      Sept. 30,      June 30,      March 31,      Dec. 31,      Dec. 31,      Dec. 31,  
     2024      2024      2024      2024      2023      2024      2023  

Total Assets

   $ 5,118,924      $ 5,236,503      $ 5,156,853      $ 5,080,010      $ 5,078,350      $ 5,118,924      $ 5,078,350  

Less Goodwill and other intangibles

     188,200        188,340        188,970        189,599        190,288        188,200        190,288  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Tangible Assets

   $ 4,930,724      $ 5,048,163      $ 4,967,883      $ 4,890,411      $ 4,888,062      $ 4,930,724      $ 4,888,062  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Assets

     5,159,901        5,134,062        5,044,516        5,023,966        4,980,314        5,090,919        5,039,154  

Less average Goodwill and other intangibles

     188,256        188,755        189,382        190,040        191,108        189,105        192,306  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Tangible Assets

   $ 4,971,645      $ 4,945,307      $ 4,855,134      $ 4,833,926      $ 4,789,206      $ 4,901,814      $ 4,846,848  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Reconciliation of Common Stockholders’ Equity to Tangible
Common Equity
   For the Three Months Ended      For the Twelve Months Ended  
     Dec. 31,      Sept. 30,      June 30,      March 31,      Dec. 31,      Dec. 31,      Dec. 31,  
     2024      2024      2024      2024      2023      2024      2023  

Stockholders’ Equity

   $ 406,028      $ 439,678      $ 396,694      $ 397,026      $ 404,415      $ 406,028      $ 404,415  

Less Goodwill and other intangibles

     188,200        188,340        188,970        189,599        190,288        188,200        190,288  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Tangible Common Equity

   $ 217,828      $ 251,338      $ 207,724      $ 207,427      $ 214,127      $ 217,828      $ 214,127  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Stockholders’ Equity

     428,646        417,327        387,881        395,549        324,332        407,436        357,462  

Less average Goodwill and other intangibles

     188,256        188,755        189,382        190,040        191,108        189,105        192,306  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Tangible Common Equity

   $ 240,390      $ 228,572      $ 198,499      $ 205,509      $ 133,224      $ 218,331      $ 165,156  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


Reconciliation of Net Income, Less Merger and Certain Items    For the Three Months Ended     For the Twelve Months Ended  
     Dec. 31,     Sept. 30,     June 30,     March 31,     Dec. 31,     Dec. 31,     Dec. 31,  
     2024     2024     2024     2024     2023     2024     2023  

Net income

   $ 14,391     $ 8,535     $ 11,783     $ 11,240     $ 14,577     $ 45,949     $ 49,932  

Acquisition related costs - after tax

     82       0       0       0       358       82       4,395  

Acquisition related provision - after tax

     0       0       0       0       0       0       6,077  

Employee severence - after tax

     0       0       0       0       798       0       798  

Lawsuit settlement expense - after tax

     0       0       0       0       0       0       620  

Net (gain) on loan sale - after tax

     0       0       0       0       (723     0       (723

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

     70       (32     407       1,675       171       2,120       698  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income - Adjusted

   $ 14,543     $ 8,503     $ 12,190     $ 12,915     $ 15,181     $ 48,151     $ 61,797  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted EPS excluding merger and certain items

   $ 0.39     $ 0.23     $ 0.33     $ 0.34     $ 0.41     $ 1.28     $ 1.65  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1.13     0.66     0.97     1.03     1.22     0.95     1.23

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

     13.57     8.15     12.57     13.06     18.72     11.82     17.29

Return on Average Tangible Equity excluding acquisition costs and certain items (Annualized)

     24.20     14.88     24.56     25.14     45.58     22.05     37.42

 

Efficiency ratio excluding certain items    For the Three Months Ended     For the Twelve Months Ended  
     Dec. 31,     Sept. 30,     June 30,     March 31,     Dec. 31,     Dec. 31,     Dec. 31,  
     2024     2024     2024     2024     2023     2024     2023  

Net interest income, tax equated

   $ 33,364     $ 32,483     $ 32,661     $ 32,341     $ 33,494     $ 130,848     $ 140,588  

Noninterest income

     11,413       12,340       9,606       8,357       12,156       41,716       41,861  

Net (gain) on loan sale

     0       0       0       0       (915     0       (915

Net loss (gain) on asset/security sales

     89       (41     515       2,120       217       2,684       883  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income and noninterest income adjusted

     44,866       44,782       42,782       42,818       44,952       175,248       182,417  

Noninterest expense less intangible amortization

     25,260       26,446       25,773       26,351       26,394       103,830       108,361  

Legal settlement expense

     0       0       0       0       0       0       785  

Employee severence

     0       0       0       0       1,010       0       1,010  

Acquisition related costs

     92       0       0       0       452       92       5,475  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Noninterest expense adjusted

     25,168       26,446       25,773       26,351       24,932       103,738       101,091  

Efficiency ratio excluding certain items

     56.10     59.05     60.24     61.54     55.46     59.19     55.42

 

Net interest margin excluding acquisition
marks and PPP interest and fees
   For the Three Months Ended     For the Twelve Months Ended  
     Dec. 31,     Sept. 30,     June 30,     March 31,     Dec. 31,     Dec. 31,     Dec. 31,  
     2024     2024     2024     2024     2023     2024     2023  

Net interest income, tax equated

   $ 33,364     $ 32,483     $ 32,661     $ 32,341     $ 33,494     $ 130,848     $ 140,588  

Acquisition marks

     1,953       2,123       2,391       2,370       2,475       8,837       10,946  

PPP interest and fees

     0       0       1       1       1       2       5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted and annualized net interest income

     125,644       121,440       121,076       119,880       124,072       122,009       129,637  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Average earning assets

     4,912,702       4,890,344       4,825,532       4,796,922       4,816,409       4,856,622       4,833,471  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Less PPP average balances

     112       118       171       213       229       153       254  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted average earning assets

     4,912,590       4,890,226       4,825,361       4,796,709       4,816,180       4,856,469       4,833,217  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest margin excluding marks and PPP interest and fees

     2.56     2.48     2.51     2.50     2.58     2.51     2.68