EX-99.1

Exhibit 99.1

July 26, 2019

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: exec@farmersbankgroup.com

FARMERS NATIONAL BANC CORP. ANNOUNCES

2019 SECOND QUARTER FINANCIAL RESULTS

•

Net income is 6% higher than same quarter in 2018

•

146 consecutive quarters of profitability

•

Annualized return on average assets was 1.45% and annualized return on average equity 12.34% for the quarter ended June 30, 2019

•

8.6% loan growth since June 30, 2018

•

Non-performing assets to total assets remain at low levels, 0.30% at June 30, 2019

CANFIELD, Ohio (July 26, 2019) – Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported financial results for the three months ended June 30, 2019.

Net income for the three months ended June 30, 2019 was $8.5 million, or $0.31 per diluted share, which compares to $8.1 million, or $0.29 per diluted share, for the three months ended June 30, 2018 and $8.4 million or $0.30 per diluted share for the linked quarter. Annualized return on average assets and return on average equity were 1.45% and 12.34%, respectively, for the three month period ending June 30, 2019, compared to 1.47% and 13.28% for the same three month period in 2018, and 1.45% and 12.71% for the linked quarter. Farmers’ return on average tangible equity (Non-GAAP) was 14.59% for the quarter ended June 30, 2019 compared to 16.24% for the same quarter in 2018 and 14.99% for the linked quarter.

Net income for the six months ended June 30, 2019 was $16.9 million, or $0.61 per diluted share, compared to $15.8 million or $0.57 per diluted share for the same six month period in 2018. Return on average assets and return on average equity were 1.45% and 12.54%, respectively, for the six months ended June 30, 2019, compared to 1.46% and 13.13% for the same period in 2018.

Kevin J. Helmick, President and CEO, stated, “As a result of 9% loan growth over the past twelve months, 11% increase in noninterest income, careful management of our noninterest expenses and continued strong asset quality, we are pleased to report a 6% increase in net income compared to the same quarter one year ago. We are also pleased to report a 29% increase in cash dividends paid to our shareholders, from $0.07 per share paid in the second quarter of 2018 to $0.09 paid for the same quarter in 2019.”

2019 Second Quarter Financial Highlights

•

Loan growth

Total loans were $1.78 billion at June 30, 2019, compared to $1.64 billion at June 30, 2018, representing an increase of 8.6%. The increase in loans is a direct result of Farmers’ focus on loan growth utilizing talented lending and credit team, while adhering to a sound underwriting discipline. The increase in loans has occurred in the commercial, commercial real estate, residential real estate and agricultural loan portfolios. Loans now comprise 79.6% of the Bank’s average earning assets for the quarter ended June 30, 2019, an improvement compared to 78.6% for the same period in 2018. This improvement, along with the growth in earning assets, has resulted in a 14.2% increase in tax equated loan income in the second quarter of 2019 compared to the same quarter in 2018.

•

Loan quality

Non-performing assets to total assets remain at a low level, currently at 0.30%. Early stage delinquencies also continue to remain at low levels, at $10.2 million, or 0.57% of total loans, at June 30, 2019. Net charge-offs for the current quarter were $305 thousand, compared to $536 thousand in the same quarter in 2018 and total net charge-offs as a percentage of average net loans outstanding is only 0.07% for the quarter ended June 30, 2019.

•

Net interest margin

The net interest margin for the three months ended June 30, 2019 was 3.84%, a 9 basis points decrease from the quarter ended June 30, 2018, but a 3 basis points increase from the linked quarter. In comparing the second quarter of 2019 to the same period in 2018, asset yields increased 25 basis points, while the cost of interest-bearing liabilities increased 47 basis points. Most of this increase was the result of higher rates paid on interest-bearing checking accounts and time deposits, consistent with increases in the federal funds sold rate. The net interest margin is impacted by the additional accretion as a result of the discounted loan portfolios acquired in the previous mergers, which increased the net interest margin by 5 basis points for the quarters ended June 30, 2019 and 2018.

•

Noninterest income

Noninterest income increased 10.9% to $7.0 million for the quarter ended June 30, 2019 compared to $6.3 million in the same quarter in 2018. Gains on the sales of mortgage loans increased $449 thousand or 74%, other operating income increased $66 thousand or 18%, trust fees increased $81 thousand or 5% and service charges on deposit accounts increased $108 thousand or 11% in comparing the second quarter of 2019 to the same quarter in 2018. These increases were offset by a decrease of securities gains of $45 thousand or 166.7% and retirement plan consulting fees of $15 thousand or 3.2%.

•

Noninterest expenses

Farmers has remained committed to managing the level of noninterest expenses. Total noninterest expenses for the second quarter of 2019 increased 8.1% to $16.7 million compared to $15.5 million in the same quarter in 2018, primarily as a result of an increase in salaries and employee benefits of $438 thousand, offset by a $140 thousand decrease in FDIC insurance expense. Included in other operating expenses in the second quarter of 2019 were $505 thousand in expenses that management does not expect to occur in future quarters. Annualized noninterest expenses measured as a percentage of quarterly average assets rose slightly from 2.82% in the second quarter of 2018 to 2.83% in the second quarter of 2019.

•

Efficiency ratio

The efficiency ratio for the quarter ended June 30, 2019 increased slightly to 58.28% compared to 57.31% for the same quarter in 2018. The improvement in net interest income and noninterest income in the second quarter of 2019 was offset by a higher level of noninterest expenses as explained in the preceding paragraphs.

2019 Outlook

Mr. Helmick added, “We continue to build on the momentum gained in the first quarter with another three months of pleasing performance. We are extremely proud of our committed employees that continue to deliver strong results for our stakeholders and remain committed to our community banking approach and culture.”

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $2.4 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 41 banking locations in Mahoning, Trumbull, Columbiana, Stark, Wayne, Medina and Cuyahoga Counties in Ohio and Beaver County in Pennsylvania, Farmers Trust Company, which operates four trust offices and offers services in the same geographic markets, and National Associates, Inc. Total wealth management assets under care at June 30, 2019 are $2.5 billion. Farmers National Insurance, LLC and Bowers Insurance Agency, Inc., wholly-owned subsidiaries of The Farmers National Bank of Canfield, offer 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 and net income excluding costs related to acquisition activities, 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 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 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 the forward-looking statements can be found in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2018, which has been filed with the Securities and Exchange Commission (SEC) and is 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 Six Months Ended
	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,			June 30,			June 30,			Percent
	2019			2019			2018			2018			2018			2019			2018			Change
Total interest income	$	25,529		$	24,679		$	24,447		$	23,563		$	22,474		$	50,208		$	43,756			14.7	%
Total interest expense		5,038			4,714			4,373			3,644			2,912			9,752			5,248			85.8	%

Net interest income		20,491			19,965			20,074			19,919			19,562			40,456			38,508			5.1	%
Provision for loan losses		750			550			525			950			750			1,300			1,525			-14.8	%
Noninterest income		6,994			6,520			6,705			6,478			6,306			13,514			12,316			9.7	%
Acquisition related costs (income)		(19	)		0			(180	)		0			0			(19	)		25			-176	%
Other expense		16,723			15,977			16,163			16,180			15,458			32,700			30,529			7.1	%

Income before income taxes		10,031			9,958			10,271			9,267			9,660			19,989			18,745			6.6	%
Income taxes		1,488			1,570			1,585			1,183			1,587			3,058			2,946			3.8	%

Net income	$	8,543		$	8,388		$	8,686		$	8,084		$	8,073		$	16,931		$	15,799			7.2	%

Average diluted shares outstanding		27,931			27,983			27,962			28,002			27,979			27,950			27,949
Basic and diluted earnings per share		0.31			0.30			0.31			0.29			0.29			0.61			0.57
Cash dividends		2,504			2,500			2,223			2,222			1,935			5,004			3,870
Cash dividends per share		0.09			0.09			0.08			0.08			0.07			0.18			0.14
Performance Ratios
Net Interest Margin (Annualized)		3.84	%		3.81	%		3.80	%		3.86	%		3.93	%		3.83	%		3.92	%
Efficiency Ratio (Tax equivalent basis)		58.28	%		57.83	%		57.73	%		58.70	%		57.31	%		58.06	%		57.64	%
Return on Average Assets (Annualized)		1.45	%		1.45	%		1.50	%		1.42	%		1.47	%		1.45	%		1.46	%
Return on Average Equity (Annualized)		12.34	%		12.71	%		13.65	%		12.80	%		13.28	%		12.54	%		13.13	%
Dividends to Net Income		29.31	%		29.80	%		25.59	%		27.49	%		23.97	%		29.56	%		24.50	%
Other Performance Ratios (Non-GAAP)
Return on Average Tangible Assets		1.47	%		1.46	%		1.54	%		1.46	%		1.50	%		1.47	%		1.48	%
Return on Average Tangible Equity		14.59	%		14.99	%		16.68	%		15.70	%		16.24	%		14.82	%		15.99	%
Return on Average Tangible Equity excluding acquisition costs		14.55	%		14.99	%		16.34	%		15.70	%		16.24	%		14.80	%		16.01	%

Consolidated Statements of Financial Condition


	June 30,			March 31,			Dec. 31,			Sept. 30,			June 30,
	2019			2019			2018			2018			2018
Assets
Cash and cash equivalents	$	64,007		$	69,672		$	57,926		$	75,635		$	76,623
Securities available for sale		424,252			403,770			402,190			389,996			388,890
Equity securities		7,222			7,460			7,130			6,892			6,344
Loans held for sale		1,093			2,360			1,237			1,428			1,987
Loans		1,780,504			1,743,651			1,735,840			1,691,532			1,639,191
Less allowance for loan losses		14,222			13,777			13,592			13,377			12,764

Net Loans		1,766,282			1,729,874			1,722,248			1,678,155			1,626,427

Other assets		143,093			142,938			137,999			140,572			137,668

Total Assets	$	2,405,949		$	2,356,074		$	2,328,730		$	2,292,678		$	2,237,939

Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing	$	415,935		$	415,131		$	421,950		$	426,689		$	420,991
Interest-bearing		1,584,700			1,539,202			1,377,770			1,332,022			1,229,346

Total deposits		2,000,635			1,954,333			1,799,720			1,758,711			1,650,337
Other interest-bearing liabilities		96,978			109,348			250,792			270,273			322,565
Other liabilities		23,511			19,442			15,898			14,905			17,527

Total liabilities		2,121,124			2,083,123			2,066,410			2,043,889			1,990,429
Stockholders’ Equity		284,825			272,951			262,320			248,789			247,510

Total Liabilities and Stockholders’ Equity	$	2,405,949		$	2,356,074		$	2,328,730		$	2,292,678		$	2,237,939

Period-end shares outstanding		27,768			27,777			27,792			27,777			27,641
Book value per share	$	10.26		$	9.83		$	9.44		$	8.96		$	8.95
Tangible book value per share (Non-GAAP)*		8.70			8.26			7.86			7.36			7.34

* Tangible book value per share is calculated by dividing tangible common equity by average outstanding shares
Capital and Liquidity
Common Equity Tier 1 Capital Ratio (a)		12.31	%		12.37	%		12.16	%		12.13	%		12.11	%
Total Risk Based Capital Ratio (a)		13.06	%		13.24	%		13.03	%		13.00	%		12.97	%
Tier 1 Risk Based Capital Ratio (a)		12.41	%		12.50	%		12.28	%		12.26	%		12.24	%
Tier 1 Leverage Ratio (a)		10.00	%		10.07	%		9.91	%		9.87	%		9.81	%
Equity to Asset Ratio		11.84	%		11.58	%		11.26	%		10.85	%		11.06	%
Tangible Common Equity Ratio (b)		10.22	%		9.92	%		9.56	%		9.09	%		9.25	%
Net Loans to Assets		73.41	%		73.42	%		73.96	%		73.20	%		72.68	%
Loans to Deposits		89.00	%		89.22	%		96.45	%		96.18	%		99.32	%
Asset Quality
Non-performing loans	$	7,252		$	7,578		$	7,731		$	9,222		$	8,406
Other Real Estate Owned		74			208			0			0			0
Non-performing assets		7,326			7,786			7,731			9,222			8,406
Loans 30 - 89 days delinquent		10,203			9,082			8,877			10,626			10,636
Charged-off loans		588			566			753			544			777
Recoveries		283			201			443			207			241
Net Charge-offs		305			365			310			337			536
Annualized Net Charge-offs to Average Net Loans Outstanding		0.07	%		0.08	%		0.07	%		0.08	%		0.13	%
Allowance for Loan Losses to Total Loans		0.80	%		0.79	%		0.78	%		0.79	%		0.78	%
Non-performing Loans to Total Loans		0.41	%		0.43	%		0.45	%		0.55	%		0.51	%
Allowance to Non-performing Loans		196.11	%		181.80	%		175.81	%		145.06	%		151.84	%
Non-performing Assets to Total Assets		0.30	%		0.33	%		0.33	%		0.40	%		0.38	%

(a)	June 30, 2019 ratio is estimated

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

Reconciliation of Total Assets to Tangible Assets


													For the Six Months Ended
	June 30,			March 31,		Dec. 31,			Sept. 30,		June 30,		June 30,			June 30,
	2019			2019		2018			2018		2018		2019			2018
Total Assets	$	2,405,949		$	2,356,074	$	2,328,730		$	2,292,678	$	2,237,939	$	2,405,949		$	2,237,939
Less Goodwill and other intangibles		43,298			43,625		43,952			44,305		44,661		43,298			44,661

Tangible Assets	$	2,362,651		$	2,312,449	$	2,284,778		$	2,248,373	$	2,193,278	$	2,362,651		$	2,193,278

Average Assets		2,369,388			2,338,792		2,301,847			2,255,049		2,199,960		2,354,112			2,181,431
Less average Goodwill and other intangibles		43,508			43,840		44,185			44,541		44,893		43,674			45,070

Average Tangible Assets	$	2,325,880		$	2,294,952	$	2,257,662		$	2,210,508	$	2,155,067	$	2,310,438		$	2,136,361


Reconciliation of Common Stockholders’ Equity to Tangible Common Equity
													For the Six Months Ended
	June 30,			March 31,		Dec. 31,			Sept. 30,		June 30,		June 30,			June 30,
	2019			2019		2018			2018		2018		2019			2018
Stockholders’ Equity	$	284,825		$	272,951	$	262,320		$	248,789	$	247,510	$	284,825		$	247,510
Less Goodwill and other intangibles		43,298			43,625		43,952			44,305		44,661		43,298			44,661

Tangible Common Equity	$	241,527		$	229,326	$	218,368		$	204,484	$	202,849	$	241,527		$	202,849

Average Stockholders’ Equity		277,746			267,736		252,449			250,503		243,792		272,218			242,682
Less average Goodwill and other intangibles		43,508			43,840		44,185			44,541		44,893		43,674			45,070

Average Tangible Common Equity	$	234,238		$	223,896	$	208,264		$	205,962	$	198,899	$	228,544		$	197,612


Reconciliation of Net Income, Excluding Acquisition Related Costs
	For the Three Months Ended												For the Six Months Ended
	June 30,			March 31,		Dec. 31,			Sept. 30,		June 30,		June 30,			June 30,
	2019			2019		2018			2018		2018		2019			2018
Net income	$	8,543		$	8,388	$	8,686		$	8,084	$	8,073	$	16,931		$	15,799
Acquisition related costs - tax equated		(20	)		0		(180	)		0		0		(20	)		22

Net income - Adjusted	$	8,523		$	8,388	$	8,506		$	8,084	$	8,073	$	16,911		$	15,821

Diluted EPS excluding acquisition costs	$	0.31		$	0.30	$	0.30		$	0.29	$	0.29	$	0.61		$	0.57


	June 30,			March 31,		Dec. 31,			Sept. 30,			June 30,
End of Period Loan Balances	2019			2019		2018			2018			2018
Commercial real estate	$	614,452		$	589,219	$	579,481		$	562,272		$	523,417
Commercial		256,657			254,957		245,172			233,188			232,672
Residential real estate		493,529			488,854		492,887			489,851			479,486
Consumer		207,417			209,541		216,284			220,826			219,138
Agricultural loans		205,544			198,210		199,013			182,038			181,173

Total, excluding net deferred loan costs	$	1,777,599		$	1,740,781	$	1,732,837		$	1,688,175		$	1,635,886


	For the Three Months Ended
	June 30,			March 31,		Dec. 31,			Sept. 30,			June 30,
Noninterest Income	2019			2019		2018			2018			2018
Service charges on deposit accounts	$	1,093		$	1,074	$	1,115		$	1,151		$	985
Bank owned life insurance income		208			214		221			219			219
Trust fees		1,821			1,858		1,752			1,827			1,740
Insurance agency commissions		739			803		642			567			713
Security gains (losses)		(18	)		10		260			(34	)		27
Retirement plan consulting fees		450			358		370			470			465
Investment commissions		327			260		259			273			315
Net gains on sale of loans		1,055			671		832			804			606
Debit card and EFT fees		887			778		861			814			870
Other operating income		432			494		393			387			366

Total Noninterest Income	$	6,994		$	6,520	$	6,705		$	6,478		$	6,306


	For the Three Months Ended
	June 30,			March 31,		Dec. 31,			Sept. 30,			June 30,
Noninterest Expense	2019			2019		2018			2018			2018
Salaries and employee benefits	$	9,266		$	9,356	$	9,444		$	8,966		$	8,828
Occupancy and equipment		1,650			1,717		1,566			1,597			1,611
State and local taxes		472			470		474			475			479
Professional fees		887			794		734			687			737
Merger related costs (income)		(19	)		0		(180	)		0			0
Advertising		442			250		416			489			379
FDIC insurance		85			87		234			218			225
Intangible amortization		326			327		355			354			355
Core processing charges		803			791		762			778			794
Telephone and data		217			260		288			298			238
Other operating expenses		2,575			1,925		1,890			2,318			1,812

Total Noninterest Expense	$	16,704		$	15,977	$	15,983		$	16,180		$	15,458

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)


	Three Months Ended							Three Months Ended
	June 30, 2019							June 30, 2018

	AVERAGE BALANCE		INTEREST (1)		RATE (1)			AVERAGE BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	1,749,828	$	22,431		5.14	%	$	1,606,993	$	19,636		4.90	%
Taxable securities		195,934		1,238		2.53			202,588		1,228		2.43
Tax-exempt securities (2)		211,533		2,065		3.92			190,494		1,737		3.66
Equity securities		12,055		171		5.69			11,214		154		5.51
Federal funds sold and other		29,205		158		2.17			33,541		167		2.00

Total earning assets		2,198,555		26,063		4.75			2,044,830		22,922		4.50
Nonearning assets		170,833							155,130

Total assets	$	2,369,388						$	2,199,960

INTEREST-BEARING LIABILITIES
Time deposits	$	401,005	$	1,984		1.98	%	$	283,429	$	957		1.35	%
Brokered time deposits		94,463		559		2.35			0		0		0
Savings deposits		416,024		340		0.33			477,365		256		0.22
Demand deposits		631,436		1,476		0.94			469,609		510		0.44
Short term borrowings		100,199		631		2.53			298,802		1,140		1.53
Long term borrowings		5,724		48		3.36			6,674		49		2.94

Total interest-bearing liabilities	$	1,648,851		5,038		1.23		$	1,535,879		2,912		0.76

NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits		425,672							408,567
Other liabilities		17,119							11,722
Stockholders’ equity		277,746							243,792

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,369,388						$	2,199,960

Net interest income and interest rate spread			$	21,025		3.52	%			$	20,010		3.74	%

Net interest margin						3.84	%						3.93	%

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

(2)

For 2019, adjustments of $107 thousand and $427 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2018, adjustments of $91 thousand and $357 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.


	Six Months Ended							Six Months Ended
	June 30, 2019							June 30, 2018

	AVERAGE BALANCE		INTEREST (1)		RATE (1)			AVERAGE BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	1,738,953	$	44,002		5.10	%	$	1,586,140	$	38,145		4.85	%
Taxable securities		195,871		2,482		2.56			204,455		2,461		2.43
Tax-exempt securities		209,586		4,076		3.92			188,041		3,417		3.66
Equity securities (2)		12,058		346		5.79			11,051		300		5.47
Federal funds sold and other		31,712		354		2.25			34,308		312		1.83

Total earning assets		2,188,180		51,260		4.72			2,023,995		44,635		4.45
Nonearning assets		165,932							157,436
Total assets	$	2,354,112						$	2,181,431

INTEREST-BEARING LIABILITIES
Time deposits	$	384,643	$	3,642		1.91	%	$	277,408	$	1,770		1.29	%
Brokered time deposits		70,793		825		2.33			0		0		0
Savings deposits		418,306		648		0.31			479,870		438		0.18
Demand deposits		610,631		2,679		0.88			460,503		926		0.41
Short term borrowings		148,723		1,862		2.52			290,617		2,021		1.40
Long term borrowings		5,815		96		3.33			6,768		93		2.77

Total interest-bearing liabilities	$	1,638,911		9,752		1.20		$	1,515,166		5,248		0.70
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits	$	427,039						$	409,705
Other liabilities		15,944							13,878
Stockholders’ equity		272,218							242,682
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,354,112						$	2,181,431

Net interest income and interest rate spread			$	41,508		3.52	%			$	39,387		3.75	%

Net interest margin						3.83	%						3.92	%

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

(2)

For 2019, adjustments of $209 thousand and $843 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2018, adjustments of $173 thousand and $706 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.