EX-99.1 2 d871051dex991.htm 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: exec@farmersbankgroup.com

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 | %