EX-99.1 2 d941398dex991.htm EX-99.1

Exhibit 99.1

April 16, 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 EARNINGS FOR FIRST QUARTER OF 2025

| • |  | 169 consecutive quarters of profitability

| • |  | Opened a commercial loan production office in Columbus at the end of the first quarter

| • |  | Net interest margin increased from 2.70% in the first quarter of 2024 to 2.85% in the first quarter of 2025

| • |  | Efficiency ratio improved to 59.6% in the first quarter of 2025 compared to the first quarter of 2024

| • |  | Restructured $23.8 million of available for sale securities in March with a 260 basis point pickup in reinvestment yield

| • |  | Credit metrics remain solid with non-performing loans to loans ratio falling to 0.64% at March 31, 2025

| • |  | Annualized net charge-offs as a percentage of average loans were only 4 basis points in the first quarter of 2025

CANFIELD, Ohio (April 16, 2025) – Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today reported net income of $13.6 million, or $0.36 per diluted share, for the first quarter of 2025 compared to $11.2 million, or $0.30 per diluted share, for the first quarter of 2024. Net income for the first quarter of 2025 included pretax losses on the sale of investments securities and other assets totaling $1.3 million. Excluding these items (non-GAAP), net income for the first quarter of 2025 was $14.6 million, or $0.39 per diluted share.

Kevin J. Helmick, President and CEO, stated “We entered 2025 from a position of strength with a legacy of profitability, strong asset quality and robust liquidity levels. As near-term economic uncertainty has picked up recently, we are well positioned to support our Ohio and Pennsylvania communities, while making strategic investments across our business and adding proven bankers to our team. The most recent of those strategic investments is the Company’s exciting entrance into the growth market of greater Columbus.”

Balance Sheet

Total assets increased by $38.1 million in the first quarter of 2025 to $5.16 billion from $5.12 billion at December 31, 2024. Loans declined slightly to $3.25 billion at March 31, 2025 from $3.27 billion at December 31, 2024. The decrease from the prior quarter was primarily due to declines in C&I and CRE lending as rising business uncertainty has reduced origination activity. The pipeline for the second quarter currently shows improvement but the introduction of tariffs adds more uncertainty to the decision making of borrowers.

The Company had securities available for sale totaling $1.28 billion as of March 31, 2025, compared to $1.27 billion at December 31, 2024. Net unrealized losses on the portfolio totaled $223.7 million at March 31, 2025, compared to $244.1 million at December 31, 2024. The Company also restructured $23.8 million of available for sale securities and reinvested the proceeds into securities with yields approximately 260 basis points higher than those sold. The earn back on the $1.3 million loss that was incurred on the sale is approximately 2.2 years. The Company anticipates continued volatility in the bond market in 2025.

Total deposits increased to $4.48 billion at March 31, 2025, from $4.27 billion at December 31, 2024. This $214.5 million increase was driven by an increase of $85.0 million in brokered CDs along with an increase in customer deposits of $129.5 million. The majority of the increase in customer deposits was driven by seasonal growth in public funds which totaled $106.3 million for the quarter.

Total stockholders’ equity increased to $429.1 million at March 31, 2025, from $406.0 million at December 31, 2024. The increase was due to a reduction in the unrealized losses on investments securities of $16.0 million along with an increase in retained earnings of $7.2 million due to $13.6 million of net income recognized during the quarter offset by dividends paid on outstanding common shares.

Credit Quality

Non-performing loans declined to $20.7 million at March 31, 2025, compared to $22.8 million at December 31, 2024. The Company continues to actively manage its level of non-performing loans and designated a single non-performing loan relationship totaling $1.8 million to “loans held for sale” during the first quarter of 2025. The Company expects a sale of the relationship to close in the second quarter of 2025. Non-performing loans to total loans were 0.64% at March 31, 2025, compared to 0.70% at December 31, 2024. The Company’s loans which were 30-89 days delinquent were $11.2 million at March 31, 2025, compared to $13.0 million at December 31, 2024, or 0.34% of total loans at March 31, 2025.

The Company’s provision for credit losses and unfunded commitments was a recovery of $204,000 for the first quarter of 2025 compared to a recovery of $449,000 for the first quarter of 2024. The recovery in the first quarter of 2025 was driven primarily by a recovery related to the provision for unfunded commitments. Annualized net charge-offs as a percentage of average loans were 0.04% for the first quarter of 2025, compared to 0.13% for the first quarter of 2024. The allowance for credit losses to total loans was 1.09% at March 31, 2025, compared to 1.10% at December 31, 2024.

Net Interest Income

The Company recorded $34.2 million in net interest income in the first quarter of 2025 compared to $31.7 million in the first quarter of 2024. Average interest earning assets increased to $4.89 billion in the first quarter of 2025 compared to $4.80 billion in the first quarter of 2024. The increase was primarily driven by an increase in average loan balances of $80.6 million. The net interest margin improved to 2.85% in the first quarter of 2025 from 2.70% in the first quarter of 2024. The year-over-year increase in net interest margin was due to higher yields on earning assets and lower funding costs on interest bearing liabilities. The current rate cutting cycle by the Federal Reserve that began in September of 2024 has had a significant impact on funding costs while the lag effects of assets repricing continue to drive earning asset yields higher. The yield on interest earning assets increased from 4.65% in the first quarter of 2024 to 4.74% in the first quarter of 2025 with both loans and securities showing increased yields. Interest bearing liabilities declined from 2.61% in the first quarter of 2024 to 2.52% in the first quarter of 2025. The Company expects its net interest margin will continue to expand in 2025 but the degree of expansion will depend on future Federal Reserve cuts to the fed funds rate. Excluding acquisition marks and PPP interest, non-GAAP, the Company’s net interest margin was 2.67% in the first quarter of 2025 compared to 2.50% in the first quarter of 2024.

Noninterest Income

Noninterest income increased from $8.4 million in the first quarter of 2024 to $10.5 million in the first quarter of 2025 due to improved profitability across all fee based lines of business and a lower level of losses on the sale of available for sale securities. Service charge income on deposit accounts increased $175,000 to $1.8 million in the first quarter of 2025 compared to $1.6 million for the first quarter in 2024. 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. Bank owned life insurance income increased $103,000 during the first quarter of 2025 to $810,000 compared to $707,000 in the first quarter of 2024. The Company purchased an additional $15.0 million in policies during the first quarter of 2025 and policy crediting rates have increased over the last twelve months. Trust fees increased to $2.6 million in the first quarter of 2025 compared to $2.5 million in the first quarter of 2024. The increase was due to continued growth in the business unit. Insurance agency commissions increased to $1.7 million in the first quarter of 2025 from $1.5 million in the first quarter of 2024. Annuity sales continue to drive growth. Losses on the sale of available for sale securities declined to $1.3 million in the first quarter of 2025 from a loss of $2.1 million in the first quarter of 2024. The bank restructured $23.8 million at the end of the first quarter of 2025 resulting in the loss realized on the sale. Retirement plan consulting fees increased to $798,000 in the first quarter of 2025 from $617,000 in the first quarter of 2024 primarily due to the acquisition of Crest Retirement Advisors LLC in late December of 2024. Debit card income grew from $1.6 million in the first quarter of 2024 to $1.9 million in the first quarter of 2025 as better volumes were realized in the current period.

Noninterest Expense

Noninterest expense increased to $28.5 million in the first quarter of 2025 compared to $27.0 million in the first quarter of 2024. Salaries and employee benefits increased to $16.2 million in the first quarter of 2025, from $15.1 million for the first quarter of 2024. The increase was primarily driven by annual raises, the acquisition of Crest Retirement in the fourth quarter of 2024 and higher commission expense from increased revenue in the fee-based businesses. Occupancy and equipment expense increased to $4.1 million in the first quarter of 2025 from $3.7 million in the first quarter of 2024 due to increased maintenance costs in 2025, the result of more severe winter weather along with timing differences. Core processing expense increased $262,000 from the first quarter of 2024 to $1.4 million in the first quarter of 2025. The increase was due to annual increases and timing differences. Other noninterest expense declined to $3.2 million in the first quarter of 2025 from $3.4 million in the first quarter of 2024. Several categories of expense showed declines as the Company continues to implement various cost saving initiatives.

Liquidity

The Company had access to an additional $749.3 million in FHLB borrowing capacity at March 31, 2025, along with $319.8 million in available for sale securities that are available for pledging. The Company’s loan to deposit ratio was 72.6% at March 31, 2025 while the Company’s average deposit balance per account (excluding collateralized deposits) was $25,741 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 $5.2 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 trust offices and offers services in the same geographic markets. Total wealth management assets under care at March 31, 2025 are $4.3 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, U.S. and foreign country tariff policies, and possibility of a recession; and the other factors contained in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2024 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 |
|  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Total interest income |  | $ | 57,305 |  |  | $ | 57,909 |  |  | $ | 57,923 |  |  | $ | 56,846 |  |  | $ | 55,054 |
Total interest expense |  |  | 23,110 |  |  |  | 25,170 |  |  |  | 26,047 |  |  |  | 24,780 |  |  |  | 23,367 |
Net interest income |  |  | 34,195 |  |  |  | 32,739 |  |  |  | 31,876 |  |  |  | 32,066 |  |  |  | 31,687 |
Provision (credit) for credit losses |  |  | (204 | ) |  |  | 295 |  |  |  | 7,008 |  |  |  | 1,112 |  |  |  | (449 | )
Noninterest income |  |  | 10,481 |  |  |  | 11,413 |  |  |  | 12,340 |  |  |  | 9,606 |  |  |  | 8,357 |
Acquisition related costs |  |  | 0 |  |  |  | 92 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Other expense |  |  | 28,526 |  |  |  | 26,082 |  |  |  | 27,075 |  |  |  | 26,403 |  |  |  | 27,039 |
Income before income taxes |  |  | 16,354 |  |  |  | 17,683 |  |  |  | 10,133 |  |  |  | 14,157 |  |  |  | 13,454 |
Income taxes |  |  | 2,776 |  |  |  | 3,292 |  |  |  | 1,598 |  |  |  | 2,374 |  |  |  | 2,214 |
Net income |  | $ | 13,578 |  |  | $ | 14,391 |  |  | $ | 8,535 |  |  | $ | 11,783 |  |  | $ | 11,240 |
Average diluted shares outstanding |  |  | 37,381 |  |  |  | 37,616 |  |  |  | 37,567 |  |  |  | 37,487 |  |  |  | 37,479 |
Basic earnings per share |  |  | 0.36 |  |  |  | 0.38 |  |  |  | 0.23 |  |  |  | 0.32 |  |  |  | 0.30 |
Diluted earnings per share |  |  | 0.36 |  |  |  | 0.38 |  |  |  | 0.23 |  |  |  | 0.31 |  |  |  | 0.30 |
Cash dividends per share |  |  | 0.17 |  |  |  | 0.17 |  |  |  | 0.17 |  |  |  | 0.17 |  |  |  | 0.17 |
Performance Ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net Interest Margin (Annualized) |  |  | 2.85 | % |  |  | 2.72 | % |  |  | 2.66 | % |  |  | 2.71 | % |  |  | 2.70 | %
Efficiency Ratio (Tax equivalent basis) |  |  | 59.60 | % |  |  | 56.42 | % |  |  | 58.47 | % |  |  | 60.80 | % |  |  | 61.54 | %
Return on Average Assets (Annualized) |  |  | 1.06 | % |  |  | 1.12 | % |  |  | 0.66 | % |  |  | 0.93 | % |  |  | 0.90 | %
Return on Average Equity (Annualized) |  |  | 13.12 | % |  |  | 13.43 | % |  |  | 8.18 | % |  |  | 12.15 | % |  |  | 11.47 | %
Other Performance Ratios (Non-GAAP) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on Average Tangible Assets |  |  | 1.10 | % |  |  | 1.16 | % |  |  | 0.69 | % |  |  | 0.97 | % |  |  | 0.93 | %
Return on Average Tangible Equity |  |  | 24.02 | % |  |  | 23.95 | % |  |  | 14.94 | % |  |  | 23.74 | % |  |  | 21.88 | %
Consolidated Statements of Financial Condition |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 113,256 |  |  | $ | 85,738 |  |  | $ | 189,136 |  |  | $ | 180,987 |  |  | $ | 148,630 |
Debt securities available for sale |  |  | 1,281,413 |  |  |  | 1,266,553 |  |  |  | 1,293,350 |  |  |  | 1,246,730 |  |  |  | 1,270,149 |
Other investments |  |  | 40,334 |  |  |  | 45,405 |  |  |  | 33,617 |  |  |  | 37,594 |  |  |  | 34,619 |
Loans held for sale |  |  | 2,973 |  |  |  | 5,005 |  |  |  | 2,852 |  |  |  | 2,577 |  |  |  | 1,854 |
Loans |  |  | 3,251,391 |  |  |  | 3,268,346 |  |  |  | 3,280,517 |  |  |  | 3,237,369 |  |  |  | 3,181,318 |
Less allowance for credit losses |  |  | 35,549 |  |  |  | 35,863 |  |  |  | 36,186 |  |  |  | 33,991 |  |  |  | 33,159 |
Net Loans |  |  | 3,215,842 |  |  |  | 3,232,483 |  |  |  | 3,244,331 |  |  |  | 3,203,378 |  |  |  | 3,148,159 |
Other assets |  |  | 503,222 |  |  |  | 483,740 |  |  |  | 473,217 |  |  |  | 485,587 |  |  |  | 476,599 |
Total Assets |  | $ | 5,157,040 |  |  | $ | 5,118,924 |  |  | $ | 5,236,503 |  |  | $ | 5,156,853 |  |  | $ | 5,080,010 |
Liabilities and Stockholders’ Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noninterest-bearing |  | $ | 979,142 |  |  | $ | 965,507 |  |  | $ | 969,682 |  |  | $ | 968,693 |  |  | $ | 977,475 |
Interest-bearing |  |  | 3,342,182 |  |  |  | 3,226,321 |  |  |  | 3,317,223 |  |  |  | 3,237,142 |  |  |  | 3,220,650 |
Brokered time deposits |  |  | 159,964 |  |  |  | 74,951 |  |  |  | 74,932 |  |  |  | 0 |  |  |  | 0 |
Total deposits |  |  | 4,481,288 |  |  |  | 4,266,779 |  |  |  | 4,361,837 |  |  |  | 4,205,835 |  |  |  | 4,198,125 |
Other interest-bearing liabilities |  |  | 188,275 |  |  |  | 391,150 |  |  |  | 371,038 |  |  |  | 494,890 |  |  |  | 433,777 |
Other liabilities |  |  | 58,343 |  |  |  | 54,967 |  |  |  | 63,950 |  |  |  | 59,434 |  |  |  | 51,082 |
Total liabilities |  |  | 4,727,906 |  |  |  | 4,712,896 |  |  |  | 4,796,825 |  |  |  | 4,760,159 |  |  |  | 4,682,984 |
Stockholders’ Equity |  |  | 429,134 |  |  |  | 406,028 |  |  |  | 439,678 |  |  |  | 396,694 |  |  |  | 397,026 |
Total Liabilities and Stockholders’ Equity |  | $ | 5,157,040 |  |  | $ | 5,118,924 |  |  | $ | 5,236,503 |  |  | $ | 5,156,853 |  |  | $ | 5,080,010 |
Period-end shares outstanding |  |  | 37,615 |  |  |  | 37,586 |  |  |  | 37,574 |  |  |  | 37,575 |  |  |  | 37,546 |
Book value per share |  | $ | 11.41 |  |  | $ | 10.80 |  |  | $ | 11.70 |  |  | $ | 10.56 |  |  | $ | 10.57 |
Tangible book value per share (Non-GAAP)* |  |  | 6.42 |  |  |  | 5.80 |  |  |  | 6.69 |  |  |  | 5.53 |  |  |  | 5.52 |

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

|  | For the Three Months Ended |
Capital and Liquidity |  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Common Equity Tier 1 Capital Ratio (a) |  |  | 11.48 | % |  |  | 11.14 | % |  |  | 10.91 | % |  |  | 10.94 | % |  |  | 10.88 | %
Total Risk Based Capital Ratio (a) |  |  | 14.88 | % |  |  | 14.55 | % |  |  | 14.34 | % |  |  | 14.42 | % |  |  | 14.38 | %
Tier 1 Risk Based Capital Ratio (a) |  |  | 11.97 | % |  |  | 11.62 | % |  |  | 11.39 | % |  |  | 11.43 | % |  |  | 11.37 | %
Tier 1 Leverage Ratio (a) |  |  | 8.54 | % |  |  | 8.36 | % |  |  | 8.20 | % |  |  | 8.26 | % |  |  | 8.19 | %
Equity to Asset Ratio |  |  | 8.32 | % |  |  | 7.93 | % |  |  | 8.40 | % |  |  | 7.69 | % |  |  | 7.82 | %
Tangible Common Equity Ratio (b) |  |  | 4.86 | % |  |  | 4.42 | % |  |  | 4.98 | % |  |  | 4.18 | % |  |  | 4.24 | %
Net Loans to Assets |  |  | 62.36 | % |  |  | 63.15 | % |  |  | 61.96 | % |  |  | 62.12 | % |  |  | 61.97 | %
Loans to Deposits |  |  | 72.55 | % |  |  | 76.60 | % |  |  | 75.21 | % |  |  | 76.97 | % |  |  | 75.78 | %
Asset Quality |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-performing loans |  | $ | 20,724 |  |  | $ | 22,818 |  |  | $ | 19,076 |  |  | $ | 12,870 |  |  | $ | 11,951 |
Non-performing assets |  |  | 20,902 |  |  |  | 22,903 |  |  |  | 19,137 |  |  |  | 12,975 |  |  |  | 12,215 |
Loans 30 - 89 days delinquent |  |  | 11,192 |  |  |  | 13,032 |  |  |  | 15,562 |  |  |  | 18,546 |  |  |  | 14,069 |
Charged-off loans |  |  | 698 |  |  |  | 928 |  |  |  | 5,116 |  |  |  | 661 |  |  |  | 1,282 |
Recoveries |  |  | 362 |  |  |  | 293 |  |  |  | 504 |  |  |  | 98 |  |  |  | 271 |
Net Charge-offs |  |  | 336 |  |  |  | 635 |  |  |  | 4,612 |  |  |  | 563 |  |  |  | 1,011 |
Annualized Net Charge-offs to Average Net Loans |  |  | 0.04 | % |  |  | 0.08 | % |  |  | 0.58 | % |  |  | 0.07 | % |  |  | 0.13 | %
Allowance for Credit Losses to Total Loans |  |  | 1.09 | % |  |  | 1.10 | % |  |  | 1.10 | % |  |  | 1.05 | % |  |  | 1.04 | %
Non-performing Loans to Total Loans |  |  | 0.64 | % |  |  | 0.70 | % |  |  | 0.58 | % |  |  | 0.40 | % |  |  | 0.38 | %
Loans 30 - 89 Days Delinquent to Total Loans |  |  | 0.34 | % |  |  | 0.40 | % |  |  | 0.47 | % |  |  | 0.57 | % |  |  | 0.44 | %
Allowance to Non-performing Loans |  |  | 171.54 | % |  |  | 157.17 | % |  |  | 189.69 | % |  |  | 264.11 | % |  |  | 277.46 | %
Non-performing Assets to Total Assets |  |  | 0.41 | % |  |  | 0.45 | % |  |  | 0.37 | % |  |  | 0.25 | % |  |  | 0.24 | %

(a) | March 31, 2025 ratio is estimated

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

|  | For the Three Months Ended |
End of Period Loan Balances |  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Commercial real estate |  | $ | 1,370,661 |  |  | $ | 1,382,714 |  |  | $ | 1,372,374 |  |  | $ | 1,348,675 |  |  | $ | 1,339,372 |
Commercial |  |  | 336,600 |  |  |  | 349,966 |  |  |  | 358,247 |  |  |  | 343,694 |  |  |  | 335,747 |
Residential real estate |  |  | 846,639 |  |  |  | 845,081 |  |  |  | 852,444 |  |  |  | 849,561 |  |  |  | 836,252 |
HELOC |  |  | 161,991 |  |  |  | 158,014 |  |  |  | 155,967 |  |  |  | 151,511 |  |  |  | 143,696 |
Consumer |  |  | 257,310 |  |  |  | 259,954 |  |  |  | 269,231 |  |  |  | 268,606 |  |  |  | 256,846 |
Agricultural loans |  |  | 267,737 |  |  |  | 262,392 |  |  |  | 261,773 |  |  |  | 265,035 |  |  |  | 260,425 |
Total, excluding net deferred loan costs |  | $ | 3,240,938 |  |  | $ | 3,258,121 |  |  | $ | 3,270,036 |  |  | $ | 3,227,082 |  |  | $ | 3,172,338 |
|  | For the Three Months Ended |
End of Period Customer Deposit Balances |  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Noninterest-bearing demand |  | $ | 979,142 |  |  | $ | 965,507 |  |  | $ | 969,682 |  |  | $ | 968,693 |  |  | $ | 977,474 |
Interest-bearing demand |  |  | 1,468,424 |  |  |  | 1,366,255 |  |  |  | 1,453,288 |  |  |  | 1,380,266 |  |  |  | 1,381,383 |
Money market |  |  | 718,083 |  |  |  | 682,558 |  |  |  | 676,664 |  |  |  | 677,058 |  |  |  | 646,308 |
Savings |  |  | 416,162 |  |  |  | 414,796 |  |  |  | 418,771 |  |  |  | 433,166 |  |  |  | 452,949 |
Certificate of deposit |  |  | 739,512 |  |  |  | 762,712 |  |  |  | 768,500 |  |  |  | 746,652 |  |  |  | 740,011 |
Total customer deposits |  | $ | 4,321,323 |  |  | $ | 4,191,828 |  |  | $ | 4,286,905 |  |  | $ | 4,205,835 |  |  | $ | 4,198,125 |
|  | For the Three Months Ended |
Noninterest Income |  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Service charges on deposit accounts |  | $ | 1,758 |  |  | $ | 1,890 |  |  | $ | 1,992 |  |  | $ | 1,846 |  |  | $ | 1,583 |
Bank owned life insurance income, including death benefits |  |  | 810 |  |  |  | 613 |  |  |  | 688 |  |  |  | 652 |  |  |  | 707 |
Trust fees |  |  | 2,641 |  |  |  | 2,700 |  |  |  | 2,544 |  |  |  | 2,345 |  |  |  | 2,510 |
Insurance agency commissions |  |  | 1,741 |  |  |  | 1,273 |  |  |  | 1,416 |  |  |  | 1,255 |  |  |  | 1,528 |
Security gains (losses), including fair value changes for equity securities |  |  | (1,313 | ) |  |  | 10 |  |  |  | (403 | ) |  |  | (124 | ) |  |  | (2,120 | )
Retirement plan consulting fees |  |  | 798 |  |  |  | 719 |  |  |  | 677 |  |  |  | 623 |  |  |  | 617 |
Investment commissions |  |  | 529 |  |  |  | 621 |  |  |  | 476 |  |  |  | 478 |  |  |  | 432 |
Net gains on sale of loans |  |  | 326 |  |  |  | 282 |  |  |  | 506 |  |  |  | 417 |  |  |  | 297 |
Other mortgage banking fee income (loss), net |  |  | 147 |  |  |  | 285 |  |  |  | (168 | ) |  |  | 192 |  |  |  | 125 |
Debit card and EFT fees |  |  | 1,866 |  |  |  | 2,164 |  |  |  | 1,993 |  |  |  | 1,760 |  |  |  | 1,567 |
Other noninterest income |  |  | 1,178 |  |  |  | 856 |  |  |  | 2,619 |  |  |  | 162 |  |  |  | 1,111 |
Total Noninterest Income |  | $ | 10,481 |  |  | $ | 11,413 |  |  | $ | 12,340 |  |  | $ | 9,606 |  |  | $ | 8,357 |

|  | For the Three Months Ended |
Noninterest Expense |  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Salaries and employee benefits |  | $ | 16,166 |  |  | $ | 14,424 |  |  | $ | 14,874 |  |  | $ | 14,558 |  |  | $ | 15,069 |
Occupancy and equipment |  |  | 4,138 |  |  |  | 4,075 |  |  |  | 3,968 |  |  |  | 3,815 |  |  |  | 3,730 |
FDIC insurance and state and local taxes |  |  | 1,262 |  |  |  | 1,019 |  |  |  | 1,480 |  |  |  | 1,185 |  |  |  | 1,345 |
Professional fees |  |  | 1,196 |  |  |  | 785 |  |  |  | 1,084 |  |  |  | 1,194 |  |  |  | 1,254 |
Merger related costs |  |  | 0 |  |  |  | 92 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Advertising |  |  | 456 |  |  |  | 192 |  |  |  | 435 |  |  |  | 445 |  |  |  | 431 |
Intangible amortization |  |  | 735 |  |  |  | 914 |  |  |  | 629 |  |  |  | 630 |  |  |  | 688 |
Core processing charges |  |  | 1,397 |  |  |  | 1,202 |  |  |  | 1,186 |  |  |  | 1,099 |  |  |  | 1,135 |
Other noninterest expenses |  |  | 3,176 |  |  |  | 3,471 |  |  |  | 3,419 |  |  |  | 3,477 |  |  |  | 3,387 |
Total Noninterest Expense |  | $ | 28,526 |  |  | $ | 26,174 |  |  | $ | 27,075 |  |  | $ | 26,403 |  |  | $ | 27,039 |

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)

|  | Three Months Ended March 31, 2025 |  |  | Three Months Ended March 31, 2024 |
|  | AVERAGE BALANCE |  |  | INTEREST (1) |  |  | YIELD/ RATE (1) |  |  | AVERAGE BALANCE |  |  | INTEREST (1) |  |  | YIELD/ RATE (1) |
EARNING ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans (2) |  | $ | 3,261,908 |  |  | $ | 46,810 |  |  |  | 5.74 | % |  | $ | 3,181,337 |  |  | $ | 45,096 |  |  |  | 5.67 | %
Taxable securities |  |  | 1,135,580 |  |  |  | 7,096 |  |  |  | 2.50 |  |  |  | 1,101,347 |  |  |  | 6,415 |  |  |  | 2.33 |
Tax-exempt securities (2) |  |  | 377,078 |  |  |  | 2,990 |  |  |  | 3.17 |  |  |  | 408,075 |  |  |  | 3,208 |  |  |  | 3.14 |
Other investments |  |  | 44,170 |  |  |  | 541 |  |  |  | 4.90 |  |  |  | 34,406 |  |  |  | 362 |  |  |  | 4.21 |
Federal funds sold and other |  |  | 73,575 |  |  |  | 510 |  |  |  | 2.77 |  |  |  | 71,757 |  |  |  | 626 |  |  |  | 3.49 |
Total earning assets |  |  | 4,892,311 |  |  |  | 57,947 |  |  |  | 4.74 |  |  |  | 4,796,922 |  |  |  | 55,707 |  |  |  | 4.65 |
Nonearning assets |  |  | 226,456 |  |  |  |  |  |  |  |  |  |  |  | 227,044 |  |  |  |  |  |  |  |  |
Total assets |  | $ | 5,118,767 |  |  |  |  |  |  |  |  |  |  | $ | 5,023,966 |  |  |  |  |  |  |  |  |
INTEREST-BEARING LIABILITIES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time deposits |  | $ | 733,406 |  |  | $ | 6,632 |  |  |  | 3.62 | % |  | $ | 736,932 |  |  | $ | 7,048 |  |  |  | 3.83 | %
Brokered time deposits |  |  | 143,393 |  |  |  | 1,538 |  |  |  | 4.29 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0.00 |
Savings deposits |  |  | 1,115,259 |  |  |  | 4,012 |  |  |  | 1.44 |  |  |  | 1,084,579 |  |  |  | 3,598 |  |  |  | 1.33 |
Demand deposits - interest bearing |  |  | 1,377,522 |  |  |  | 7,535 |  |  |  | 2.19 |  |  |  | 1,345,311 |  |  |  | 7,743 |  |  |  | 2.30 |
Total interest-bearing deposits |  |  | 3,369,580 |  |  |  | 19,717 |  |  |  | 2.34 |  |  |  | 3,166,822 |  |  |  | 18,389 |  |  |  | 2.32 |
Short term borrowings |  |  | 218,444 |  |  |  | 2,417 |  |  |  | 4.43 |  |  |  | 324,791 |  |  |  | 3,939 |  |  |  | 4.85 |
Long term borrowings |  |  | 86,209 |  |  |  | 976 |  |  |  | 4.53 |  |  |  | 88,721 |  |  |  | 1,038 |  |  |  | 4.68 |
Total borrowed funds |  |  | 304,653 |  |  |  | 3,393 |  |  |  | 4.45 |  |  |  | 413,512 |  |  |  | 4,977 |  |  |  | 4.81 |
Total interest-bearing liabilities |  |  | 3,674,233 |  |  |  | 23,110 |  |  |  | 2.52 |  |  |  | 3,580,334 |  |  |  | 23,366 |  |  |  | 2.61 |
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Demand deposits - noninterest bearing |  |  | 977,619 |  |  |  |  |  |  |  |  |  |  |  | 995,168 |  |  |  |  |  |  |  |  |
Other liabilities |  |  | 52,894 |  |  |  |  |  |  |  |  |  |  |  | 52,915 |  |  |  |  |  |  |  |  |
Stockholders’ equity |  |  | 414,021 |  |  |  |  |  |  |  |  |  |  |  | 395,549 |  |  |  |  |  |  |  |  |
TOTAL LIABILITIES AND |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
STOCKHOLDERS’ EQUITY |  | $ | 5,118,767 |  |  |  |  |  |  |  |  |  |  | $ | 5,023,966 |  |  |  |  |  |  |  |  |
Net interest income and interest rate spread |  |  |  |  |  | $ | 34,837 |  |  |  | 2.22 | % |  |  |  |  |  | $ | 32,341 |  |  |  | 2.04 | %
Net interest margin |  |  |  |  |  |  |  |  |  |  | 2.85 | % |  |  |  |  |  |  |  |  |  |  | 2.70 | %

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

(2) | For 2025, adjustments of $103 thousand and $539 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2024, adjustments of $80 thousand and $573 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.

Reconciliation of Total Assets to Tangible Assets |  | For the Three Months Ended |
|  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Total Assets |  | $ | 5,157,040 |  |  | $ | 5,118,924 |  |  | $ | 5,236,503 |  |  | $ | 5,156,853 |  |  | $ | 5,080,010 |
Less Goodwill and other intangibles |  |  | 187,466 |  |  |  | 188,200 |  |  |  | 188,340 |  |  |  | 188,970 |  |  |  | 189,599 |
Tangible Assets |  | $ | 4,969,574 |  |  | $ | 4,930,724 |  |  | $ | 5,048,163 |  |  | $ | 4,967,883 |  |  | $ | 4,890,411 |
Average Assets |  |  | 5,118,767 |  |  |  | 5,159,901 |  |  |  | 5,134,062 |  |  |  | 5,044,516 |  |  |  | 5,023,966 |
Less average Goodwill and other intangibles |  |  | 187,947 |  |  |  | 188,256 |  |  |  | 188,755 |  |  |  | 189,382 |  |  |  | 190,040 |
Average Tangible Assets |  | $ | 4,930,820 |  |  | $ | 4,971,645 |  |  | $ | 4,945,307 |  |  | $ | 4,855,134 |  |  | $ | 4,833,926 |
Reconciliation of Common Stockholders’ Equity to Tangible Common Equity |  | For the Three Months Ended |
|  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Stockholders’ Equity |  | $ | 429,134 |  |  | $ | 406,028 |  |  | $ | 439,678 |  |  | $ | 396,694 |  |  | $ | 397,026 |
Less Goodwill and other intangibles |  |  | 187,466 |  |  |  | 188,200 |  |  |  | 188,340 |  |  |  | 188,970 |  |  |  | 189,599 |
Tangible Common Equity |  | $ | 241,668 |  |  | $ | 217,828 |  |  | $ | 251,338 |  |  | $ | 207,724 |  |  | $ | 207,427 |
Average Stockholders’ Equity |  |  | 414,021 |  |  |  | 428,646 |  |  |  | 417,327 |  |  |  | 387,881 |  |  |  | 395,549 |
Less average Goodwill and other intangibles |  |  | 187,947 |  |  |  | 188,256 |  |  |  | 188,755 |  |  |  | 189,382 |  |  |  | 190,040 |
Average Tangible Common Equity |  | $ | 226,074 |  |  | $ | 240,390 |  |  | $ | 228,572 |  |  | $ | 198,499 |  |  | $ | 205,509 |

Reconciliation of Net Income, Less Merger and Certain Items |  | For the Three Months Ended |
|  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Net income |  | $ | 13,578 |  |  | $ | 14,391 |  |  | $ | 8,535 |  |  | $ | 11,783 |  |  | $ | 11,240 |
Acquisition related costs - after tax |  |  | 0 |  |  |  | 82 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Net loss (gain) on asset/security sales - after tax |  |  | 1,056 |  |  |  | 70 |  |  |  | (32 | ) |  |  | 407 |  |  |  | 1,675 |
Net income - Adjusted |  | $ | 14,634 |  |  | $ | 14,543 |  |  | $ | 8,503 |  |  | $ | 12,190 |  |  | $ | 12,915 |
Diluted EPS excluding merger and certain items |  | $ | 0.39 |  |  | $ | 0.39 |  |  | $ | 0.23 |  |  | $ | 0.33 |  |  | $ | 0.34 |
Return on Average Assets excluding merger and certain items (Annualized) |  |  | 1.14 | % |  |  | 1.13 | % |  |  | 0.66 | % |  |  | 0.97 | % |  |  | 1.03 | %
Return on Average Equity excluding merger and certain items (Annualized) |  |  | 14.14 | % |  |  | 13.57 | % |  |  | 8.15 | % |  |  | 12.57 | % |  |  | 13.06 | %
Return on Average Tangible Equity excluding acquisition costs and certain items (Annualized) |  |  | 25.89 | % |  |  | 24.20 | % |  |  | 14.88 | % |  |  | 24.56 | % |  |  | 25.14 | %
Efficiency ratio excluding certain items |  | For the Three Months Ended |
|  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Net interest income, tax equated |  | $ | 34,837 |  |  | $ | 33,364 |  |  | $ | 32,483 |  |  | $ | 32,661 |  |  | $ | 32,341 |
Noninterest income |  |  | 10,481 |  |  |  | 11,413 |  |  |  | 12,340 |  |  |  | 9,606 |  |  |  | 8,357 |
Net (gain) on loan sale |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Net loss (gain) on asset/security sales |  |  | 1,337 |  |  |  | 89 |  |  |  | (41 | ) |  |  | 515 |  |  |  | 2,120 |
Net interest income and noninterest income adjusted |  |  | 46,655 |  |  |  | 44,866 |  |  |  | 44,782 |  |  |  | 42,782 |  |  |  | 42,818 |
Noninterest expense less intangible amortization |  |  | 27,791 |  |  |  | 25,260 |  |  |  | 26,446 |  |  |  | 25,773 |  |  |  | 26,351 |
Acquisition related costs |  |  | 0 |  |  |  | 92 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Noninterest expense adjusted |  |  | 27,791 |  |  |  | 25,168 |  |  |  | 26,446 |  |  |  | 25,773 |  |  |  | 26,351 |
Efficiency ratio excluding certain items |  |  | 59.57 | % |  |  | 56.10 | % |  |  | 59.05 | % |  |  | 60.24 | % |  |  | 61.54 | %
Net interest margin excluding acquisition marks and PPP interest and fees |  | For the Three Months Ended |
|  | March 31, 2025 |  |  | Dec. 31, 2024 |  |  | Sept. 30, 2024 |  |  | June 30, 2024 |  |  | March 31, 2024 |
Net interest income, tax equated |  | $ | 34,837 |  |  | $ | 33,364 |  |  | $ | 32,483 |  |  | $ | 32,661 |  |  | $ | 32,341 |
Acquisition marks |  |  | 2,151 |  |  |  | 1,953 |  |  |  | 2,123 |  |  |  | 2,391 |  |  |  | 2,370 |
PPP interest and fees |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1 |  |  |  | 1 |
Adjusted and annualized net interest income |  |  | 130,744 |  |  |  | 125,644 |  |  |  | 121,440 |  |  |  | 121,076 |  |  |  | 119,880 |
Average earning assets |  |  | 4,892,311 |  |  |  | 4,912,702 |  |  |  | 4,890,344 |  |  |  | 4,825,532 |  |  |  | 4,796,922 |
Less PPP average balances |  |  | 105 |  |  |  | 112 |  |  |  | 118 |  |  |  | 171 |  |  |  | 213 |
Adjusted average earning assets |  |  | 4,892,206 |  |  |  | 4,912,590 |  |  |  | 4,890,226 |  |  |  | 4,825,361 |  |  |  | 4,796,709 |
Net interest margin excluding marks and PPP interest and fees |  |  | 2.67 | % |  |  | 2.56 | % |  |  | 2.48 | % |  |  | 2.51 | % |  |  | 2.50 | %