Exhibit 99.1

 

July 22, 2026

 

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 RESULTS FOR SECOND QUARTER OF 2026

 

 

●

174 consecutive quarters of profitability

 

●

EPS was $0.39 for the quarter, $0.41 excluding acquisition and core conversion costs (non-GAAP)
 

●

Non-performing loans declined $15.2 million, or 25.4%, during the quarter
 

●

Commercial lending fundings accelerated significantly during the second quarter, with approximately $175.0 million in fundings, representing an 181% increase over the first quarter
 

●

Unfunded commercial balances expanded by approximately $40.0 million, or 9%, since the end of March, reflecting continued growth in committed business and lending activity
 

●

Net interest margin increased to 3.44% in the second quarter of 2026 from 3.12% in the first quarter of 2026 and 2.91% in the second quarter of 2025
 

●

Efficiency ratio was 55.6% in the second quarter of 2026, 53.2% excluding acquisition/core conversion costs (non-GAAP)

 

CANFIELD, Ohio (July 22, 2026) – Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today reported net income of $23.0 million, or $0.39 per diluted share, for the second quarter of 2026 compared to $13.9 million, or $0.37 per diluted share, for the second quarter of 2025. Net income in the second quarter of 2026 included $1.7 million of expense related to the March 2, 2026 acquisition of Middlefield Banc Corp. (Middlefield) and core conversion costs. Excluding these items (non-GAAP), adjusted net income for the second quarter of 2026 was $24.4 million, or $0.41 per diluted share.

 

Kevin J. Helmick, President and CEO, stated: “I am extremely pleased with the accelerated commercial fundings of $175 million in the second quarter as the team continues to focus on consistency in this area. We also made meaningful progress integrating the March 2026 Middlefield acquisition during the quarter and preparing for our core technology conversion, which remains on track for completion late in the third quarter. These initiatives are important components of our ongoing investment to build a stronger, more efficient and increasingly scalable community banking platform. As we bring our teams, systems and capabilities together, we believe we are strengthening the foundation of our business and enhancing our ability to serve customers across our growing Ohio and Pennsylvania markets.”

 

Balance Sheet

 

Total assets were $7.14 billion at June 30, 2026, compared to $7.18 billion at March 31, 2026, and $5.25 billion at December 31, 2025. The increase since December was due to the Middlefield acquisition which added $1.82 billion in assets at the date of closing. Total loans, net of allowance, decreased to $4.72 billion at June 30, 2026, from $4.75 billion at March 31, 2026, and $3.27 billion at December 31, 2025. The increase since December was due to Middlefield which added $1.49 billion in total loans at the date of closing. The decline from March was due to heavier than expected commercial loan payoffs from the Middlefield portfolio and a decline in non-performing loans. The Company expects the payoffs to return to normal levels in the third quarter.

 

Securities available for sale decreased slightly to $1.47 billion at June 30, 2026, compared to $1.48 billion at March 31, 2026, and $1.34 billion at December 31, 2025. Middlefield added $152.8 million to securities available for sale. The Company anticipates continued rate volatility in the bond market in 2026, which will continue to affect the value of the portfolio.

 

Total deposits declined to $5.83 billion at June 30, 2026, compared to $5.92 billion at March 31, 2026, and $4.34 billion at December 31, 2025. The increase since December was primarily due to Middlefield, which added $1.49 billion in deposits at the time of closing. The decline since March was primarily due to seasonal factors associated with public funds and the purposeful shrinkage of certain non-core deposits acquired in the Middlefield transaction.

 

Total stockholders’ equity increased to $784.0 million at June 30, 2026, from $766.9 million at March 31, 2026, and $485.7 million at December 31, 2025. The increase since December was primarily driven by the acquisition of Middlefield while the increase since March was primarily driven by earnings offset by dividends paid to shareholders.

 

 
 

 

 

Credit Quality

 

Non-performing loans declined to $44.6 million at June 30, 2026, from $59.9 million at March 31, 2026 and $26.2 million at December 31, 2025. The increase from December was due to the Middlefield acquisition while the decrease from March was due to strong workout efforts in the second quarter. Nonperforming loans to total loans were 0.93% at June 30, 2026, compared to 1.25% at March 31, 2026, and 0.79% at December 31, 2025. Loans 30-89 days delinquent were $18.9 million at June 30, 2026, or 0.40% of total loans, compared to $14.7 million at March 31, 2026, and $16.9 million at December 31, 2025.

 

The provision for credit losses and unfunded commitments was $2.4 million in the second quarter of 2026 compared to a provision for credit losses of $3.5 million in the second quarter of 2025. Annualized net charge-offs as a percentage of average loans were 0.30% in the second quarter of 2026, compared to 0.07% in the second quarter of 2025. The increase in net charge-offs was associated with the resolution of non-performing loans, but most of the net charge-offs came from loans that carried specific reserves the cost of which had been recognized in prior periods. The allowance for credit losses to total loans was 1.12% at June 30, 2026, 1.14% at March 31, 2026, and 1.11% at December 31, 2025.

 

Net Interest Income

 

Net interest income increased to $56.0 million in the second quarter of 2026, compared to $34.9 million in the second quarter of 2025. Average interest earning assets increased to $6.63 billion in the second quarter of 2026 compared to $4.89 billion in the second quarter of 2025. The increase was primarily driven by the acquisition of Middlefield. Net interest margin improved to 3.44% in the second quarter of 2026 compared to 2.91% in the second quarter of 2025. The year-over-year increase in net interest margin was due to the acquisition and higher yields on earning assets and lower funding costs on interest bearing liabilities. In addition, the Company saw greater accretion of loan marks in the second quarter associated with the payoff of Middlefield loan balances mentioned earlier. The Company also recognized a $1.0 million prepayment penalty from the payoff of one of the Middlefield commercial loans. The Company expects the net interest margin to settle back into a range of approximately 3.34% to 3.37% in the third quarter of 2026. The yield on interest earning assets increased from 4.77% in the second quarter of 2025 to 5.25% in the second quarter of 2026, while the cost of interest-bearing liabilities declined from 2.49% in the second quarter of 2025 to 2.44% in the second quarter of 2026. Excluding acquisition marks, non-GAAP, the Company’s net interest margin was 3.28% in the second quarter of 2026, and 2.77% in the second quarter of 2025.

 

Noninterest Income

 

Noninterest income increased to $14.4 million in the second quarter of 2026 from $12.1 million in the second quarter of 2025. The increase was driven by the Middlefield acquisition and continued growth in the Company’s wealth lines of business. Service charge income was $2.4 million in the second quarter of 2026 compared to $1.7 million in the second quarter of 2025 primarily due to the acquisition. Bank owned life insurance income increased to $1.4 million in the second quarter of 2026 compared to $832,000 in the second quarter of 2025. Death claims were higher by $271,000 in 2026 compared to 2025 and the addition of Middlefield was primarily responsible for the difference. Trust fees were $3.1 million for the second quarter of 2026 up from $2.6 million in the second quarter of 2025 as continued growth in this business unit continued to drive revenue. Insurance commissions declined to $1.5 million in the second quarter of 2026 from $1.8 million in the second quarter of 2025. During the second quarter of 2025, the Company recognized $329,000 in revenue sharing associated with its BOLI purchase in the first quarter of 2025. Investment commissions totaled $1.0 million for the second quarter of 2026 compared to $721,000 for the second quarter of 2025. The increase was primarily due to the addition of Middlefield and the continued additions of investment representatives to the program. Debit card income increased to $2.6 million in the second quarter of 2026 from $2.0 million in the second quarter of 2025. The increase was driven by the Middlefield acquisition. Other noninterest income declined to $826,000 in the second quarter of 2026 compared to $1.2 million in the second quarter of 2025 primarily due to lower SBIC income in 2026.

 

Noninterest Expense

 

Noninterest expense increased to $40.9 million in the second quarter of 2026 from $27.2 million in the second quarter of 2025 primarily as a result of the Middlefield acquisition and the recognition of $1.7 million in acquisition and core conversion costs in the second quarter of 2026. Many of the categories of expense discussed below will begin to see a decline in the second half of the year after the Company completes its anticipated system conversion in August of 2026. Salaries and employee benefits increased to $21.3 million in the second quarter of 2026 from $14.7 million in the second quarter of 2025. The increase was primarily driven by annual raises and the Middlefield acquisition. Occupancy and equipment expenses increased to $5.9 million in the second quarter of 2026, an increase of $1.8 million from the second quarter of 2025, primarily as result of the acquisition. Professional fees increased to $1.4 million in the second quarter of 2026 from $1.0 million in the second quarter of 2025. The increase was primarily driven by the Middlefield acquisition. FDIC insurance and state and local taxes were $1.9 million in the second quarter of 2026 compared to $1.3 million in the second quarter of 2025. The increase was due to the acquisition and increased franchise tax from higher levels of capital year-over-year. Core processing expense increased to $2.3 million in the second quarter of 2026 compared to $1.4 million in the second quarter of 2025. The increase was due to the acquisition and a lower level of service credits in 2026. Other noninterest expense increased by $1.0 million to $4.5 million in the second quarter of 2026 primarily as a result of the acquisition and timing issues.

 

 
 

 

 

Liquidity

 

The Company had access to an additional $608.5 million in FHLB borrowing capacity at June 30, 2026, along with $415.3 million in available for sale securities that are available for pledging. The Company’s loan to deposit ratio was 81.9% at June 30, 2026.

 

About Farmers National Banc Corp.

 

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $7.1 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 83 banking locations in Ohio and western Pennsylvania, and Farmers Trust Company, which operates trust offices and offers services in the same geographic markets. Total wealth management assets under care at June 30, 2026, are $5.1 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 acquisition costs and certain items, return on average equity excluding acquisition 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, 2025 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 Six Months Ended
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

Percent
 

2026

2026

2025

2025

2025

2026

2025

Change

Total interest income

$86,094

$67,117

$59,418

$59,366

$57,702

$153,209

$115,007

33.2%

Total interest expense

30,062

24,549

22,398

23,059

22,781

54,610

45,891

19.0%

 Net interest income

56,032

42,568

37,020

36,307

34,921

98,599

69,116

42.7%

Provision (credit) for credit losses

2,437

(1,034)

2,306

1,419

3,548

1,403

3,344

-58.0%

Noninterest income

14,413

13,688

12,098

11,430

12,122

28,100

22,603

24.3%

System conversion / Acquisition related costs

1,695

3,981

925

3,123

0

5,677

0

0.0%

Other expense

39,179

33,337

28,153

28,556

27,175

72,514

55,701

30.2%

 Income before income taxes

27,134

19,972

17,734

14,639

16,320

47,105

32,674

44.2%

Income taxes

4,099

3,708

3,096

2,178

2,410

7,806

5,186

50.5%

 Net income

$23,035

$16,264

$14,638

$12,461

$13,910

$39,299

$27,488

43.0%
                 

Average diluted shares outstanding

59,223

44,874

37,705

37,677

37,622

52,071

37,622

  

Basic earnings per share

0.39

0.36

0.39

0.33

0.37

0.76

0.73

  

Diluted earnings per share

0.39

0.36

0.39

0.33

0.37

0.76

0.73

  

Cash dividends per share

0.17

0.17

0.17

0.17

0.17

0.34

0.34

  

Performance Ratios

                

Net Interest Margin  (Annualized)

3.44%

3.12%

3.05%

3.00%

2.91%

3.29%

2.88%

  

Efficiency Ratio  (Tax equivalent basis)

55.60%

63.97%

57.11%

62.66%

56.66%

59.32%

58.12%

  

Efficiency Ratio  (Tax equivalent basis) excluding core conversion, acquisition costs and other extraordinary items (b)

53.21%

56.96%

55.00%

56.43%

55.66%

54.87%

56.83%

  

Return on Average Assets  (Annualized)

1.29%

1.11%

1.12%

0.96%

1.08%

1.21%

1.07%

  

Return on Average Equity  (Annualized)

11.82%

11.55%

12.17%

11.26%

13.08%

11.70%

13.10%

  

Other Performance Ratios (Non-GAAP)

                

Return on Average Tangible Assets

1.35%

1.15%

1.16%

1.00%

1.13%

1.26%

1.11%

  

Return on Average Tangible Equity

19.54%

18.13%

19.90%

19.46%

23.37%

18.92%

23.69%

  
                 

Consolidated Statements of Financial Condition

                
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

      
 

2026

2026

2025

2025

2025

      

Assets

                

Cash and cash equivalents

$164,754

$186,083

$92,357

$92,345

$90,740

      

Debt securities available for sale

1,473,698

1,484,198

1,343,457

1,301,766

1,274,899

      

Other investments

60,539

54,858

45,397

44,245

42,410

      
                 

Loans held for sale

2,862

1,919

1,516

4,975

2,174

      

Loans

4,776,477

4,800,064

3,304,713

3,337,780

3,303,359

      

 Less allowance for credit losses

53,285

54,684

36,811

39,528

38,563

      

 Net Loans

4,723,192

4,745,380

3,267,902

3,298,252

3,264,796

      
                 

Other assets

715,839

703,038

495,241

493,992

503,409

      

 Total Assets

$7,140,884

$7,175,476

$5,245,870

$5,235,575

$5,178,428

      
                 

Liabilities and Stockholders' Equity

                

Deposits

                

 Noninterest-bearing

$1,368,145

$1,334,021

$994,122

$994,604

$995,865

      

 Interest-bearing

4,462,969

4,587,364

3,348,656

3,405,911

3,325,564

      

 Brokered time deposits

0

0

0

0

74,988

      

 Total deposits

5,831,114

5,921,385

4,342,778

4,400,515

4,396,417

      

Other interest-bearing liabilities

455,374

435,108

367,733

321,581

289,428

      

Other liabilities

70,444

52,093

49,634

47,530

54,835

      

 Total liabilities

6,356,932

6,408,586

4,760,145

4,769,626

4,740,680

      

Stockholders' Equity

783,952

766,890

485,725

465,949

437,748

      

 Total Liabilities

                

 and Stockholders' Equity

$7,140,884

$7,175,476

$5,245,870

$5,235,575

$5,178,428

      
                 

Period-end shares outstanding

59,233

59,215

37,653

37,647

37,642

      

Book value per share

$13.24

$12.95

$12.90

$12.38

$11.63

      

Tangible book value per share (Non-GAAP)*

8.05

7.74

7.98

7.44

6.67

      
                 

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

                
 
 

 

 

 

For the Three Months Ended

For the Six Months Ended

  
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

  

Capital and Liquidity

2026

2026

2025

2025

2025

2026

2025

  

Common Equity Tier 1 Capital Ratio (a)

11.96%

11.70%

12.02%

11.62%

11.56%

      

Total Risk Based Capital Ratio (a)

14.83%

14.63%

15.46%

15.08%

15.04%

      

Tier 1 Risk Based Capital Ratio (a)

12.46%

12.19%

12.51%

12.10%

12.05%

      

Tier 1 Leverage Ratio (a)

9.38%

11.21%

8.92%

8.75%

8.67%

      

Equity to Asset Ratio

10.98%

10.69%

9.26%

8.90%

8.45%

      

Tangible Common Equity Ratio (b)

6.98%

6.68%

5.94%

5.54%

5.03%

      

Net Loans to Assets

66.14%

66.13%

62.29%

63.00%

63.05%

      

Loans to Deposits

81.91%

81.06%

76.10%

75.85%

75.14%

      

Asset Quality

                

Non-performing loans

$44,636

$59,854

$26,215

$35,344

$27,819

      

Non-performing assets

44,827

59,977

26,370

35,519

28,052

      

Loans 30 - 89 days delinquent

18,869

14,700

16,947

16,083

17,727

      

Charged-off loans

3,803

729

5,192

869

748

4,532

1,446

  

Recoveries

170

285

295

333

176

455

538

  

Net Charge-offs

3,633

444

4,897

536

572

4,077

908

  

Annualized Net Charge-offs to Average Net Loans

0.30%

0.05%

0.59%

0.07%

0.07%

0.19%

0.06%

  

Allowance for Credit Losses to Total Loans

1.12%

1.14%

1.11%

1.18%

1.17%

      

Non-performing Loans to Total Loans

0.93%

1.25%

0.79%

1.06%

0.84%

      

Loans 30 - 89 Days Delinquent to Total Loans

0.40%

0.31%

0.51%

0.48%

0.54%

      

Allowance to Non-performing Loans

119.38%

91.36%

140.42%

111.84%

138.62%

      

Non-performing Assets to Total Assets

0.63%

0.84%

0.50%

0.68%

0.54%

      
                 

(a) June 30, 2026 ratio is estimated.

    

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

                
                 
 

For the Three Months Ended

      
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

      

End of Period Loan Balances

2026

2026

2025

2025

2025

      

Commercial real estate

$2,022,733

$2,078,421

$1,398,116

$1,428,583

$1,385,162

      

Commercial

592,431

591,406

340,224

351,213

363,009

      

Residential real estate

1,230,110

1,219,766

850,300

850,112

849,443

      

HELOC

360,685

349,656

181,544

176,609

171,312

      

Consumer

272,890

265,136

257,795

251,557

253,363

      

Agricultural loans

285,027

284,014

265,565

269,025

270,599

      

Total, excluding net deferred loan costs

$4,763,876

$4,788,399

$3,293,544

$3,327,099

$3,292,888

      
                 
                 
 

For the Three Months Ended

      
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

      

End of Period Customer Deposit Balances

2026

2026

2025

2025

2025

      

Noninterest-bearing demand

$1,368,145

$1,334,021

$994,122

$994,604

$995,866

      

Interest-bearing demand

1,626,459

1,698,780

1,377,520

1,443,422

1,388,596

      

Money market

1,397,397

1,395,660

795,631

761,788

748,770

      

Savings

560,710

576,089

408,743

410,165

416,795

      

Certificate of deposit

878,402

916,835

766,762

790,536

771,403

      

Total customer deposits

$5,831,113

$5,921,385

$4,342,778

$4,400,515

$4,321,430

      
                 

Memo: Public funds included in above numbers

$989,604

$1,056,571

$773,896

$867,253

$801,561

      
                 
 

For the Three Months Ended

For the Six Months Ended

  
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

  

Noninterest Income

2026

2026

2025

2025

2025

2026

2025

  

Service charges on deposit accounts

$2,434

$1,966

$1,831

$1,874

$1,749

$4,400

$3,507

  

Bank owned life insurance income, including death benefits

1,401

1,492

891

852

832

2,893

1,642

  

Trust fees

3,089

3,030

3,079

2,745

2,596

6,119

5,237

  

Insurance agency commissions

1,485

1,683

1,567

1,395

1,828

3,168

3,569

  

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

22

(18)

(7)

(927)

36

4

(1,278)

  

Retirement plan consulting fees

954

886

1,009

1,060

783

1,840

1,581

  

Investment commissions

1,044

871

706

658

721

1,915

1,250

  

Net gains on sale of loans

398

380

436

559

329

778

655

  

Other mortgage banking fee income (loss), net

199

477

106

192

27

676

174

  

Debit card and EFT fees

2,561

2,023

1,956

2,068

2,017

4,584

3,882

  

Other noninterest income

826

898

523

954

1,204

1,723

2,384

  

Total Noninterest Income

$14,413

$13,688

$12,097

$11,430

$12,122

$28,100

$22,603

  
 
 

 

 

 

 

        

 

    
                 
 

For the Three Months Ended

For the Six Months Ended

  
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

  

Noninterest Expense

2026

2026

2025

2025

2025

2026

2025

  

Salaries and employee benefits

$21,312

$18,511

$15,397

$15,992

$14,722

$39,823

$30,888

  

Occupancy and equipment

5,935

5,126

4,456

4,370

4,119

11,060

8,258

  

FDIC insurance and state and local taxes

1,933

1,603

925

1,212

1,262

3,536

2,524

  

Professional fees

1,357

1,112

1,179

990

1,026

2,469

2,223

  

System conversion / Merger related costs

1,695

3,981

925

3,123

0

5,676

0

  

Advertising

627

544

449

466

454

1,171

910

  

Intangible amortization

1,195

865

711

718

735

2,060

1,469

  

Core processing charges

2,327

1,750

1,391

1,412

1,401

4,077

2,798

  

Other noninterest expenses

4,493

3,826

3,646

3,396

3,456

8,319

6,631

  

Total Noninterest Expense

$40,874

$37,318

$29,079

$31,679

$27,175

$78,191

$55,701

  
                 
                 

Average Balance Sheets and Related Yields and Rates

    

(Dollar Amounts in Thousands)

    
                 
 

Three Months Ended

Three Months Ended

    
 

June 30, 2026

June 30, 2025

    
 

AVERAGE

  

YIELD/

AVERAGE

  

YIELD/

    
 

BALANCE

INTEREST (1)

RATE (1)

BALANCE

INTEREST (1)

RATE (1)

    

EARNING ASSETS

                

Loans (2)

$4,776,409

$73,087

6.12%

$3,274,394

$47,160

5.76%

    

Taxable securities

1,179,497

7,874

2.67

1,141,799

7,384

2.59

    

Tax-exempt securities (2)

487,020

4,475

3.68

364,531

2,900

3.18

    

Other investments

56,122

692

4.93

40,206

462

4.60

    

Federal funds sold and other

127,500

887

2.78

65,841

429

2.61

    

Total earning assets

6,626,548

87,015

5.25

4,886,771

58,335

4.77

    

Nonearning assets

493,197

    

245,890

        

Total assets

$7,119,745

    

$5,132,661

        

INTEREST-BEARING LIABILITIES

                

Time deposits

$900,746

$7,212

3.20%

$751,828

$6,584

3.50%

    

Brokered time deposits

0

0

0.00

96,461

1,047

4.34

    

Savings deposits

1,955,160

9,719

1.99

1,145,277

4,284

1.50

    

Demand deposits - interest bearing

1,684,213

9,054

2.15

1,440,090

8,325

2.31

    

Total interest-bearing deposits

4,540,119

25,985

2.29

3,433,656

20,240

2.36

    
                 

Short term borrowings

302,505

2,874

3.80

137,725

1,536

4.46

    

Long term borrowings

94,242

1,203

5.11

86,354

1,005

4.66

    

Total borrowed funds

396,747

4,077

4.11

224,079

2,541

4.54

    
                 

Total interest-bearing liabilities

4,936,866

30,062

2.44

3,657,735

22,781

2.49

    
                 

NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY

                

Demand deposits - noninterest bearing

1,349,492

    

992,990

        

Other liabilities

53,932

    

56,687

        

Stockholders' equity

779,455

    

425,249

        

TOTAL LIABILITIES AND

                

STOCKHOLDERS' EQUITY

$7,119,745

    

$5,132,661

        

Net interest income and interest rate spread

  

$56,953

2.81%

  

$35,554

2.28%

    

Net interest margin

    

3.44%

    

2.91%

    
                 

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

    

(2) For 2026, adjustments of $110,000 and $811,000, respectively, were made to tax equate income on tax exempt loans and tax exempt securities.  For 2025, adjustments of $110,000 and $524,000, 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.

    
                 
 
 

 

 

                 
 

For the Six Months Ended

For the Six Months Ended

    
 

June 30, 2026

June 30, 2025

    
 

AVERAGE

  

YIELD/

AVERAGE

  

YIELD/

    
 

BALANCE

INTEREST (1)

RATE (1)

BALANCE

INTEREST (1)

RATE (1)

    

EARNING ASSETS

                

Loans (2)

$4,296,382

$128,301

5.97%

$3,268,186

$93,970

5.75%

    

Taxable securities

1,178,346

15,647

2.66

1,138,707

14,480

2.54

    

Tax-exempt securities (2)

445,534

7,890

3.54

370,770

5,890

3.18

    

Other investments

53,933

1,453

5.39

42,177

1,003

4.76

    

Federal funds sold and other

115,222

1,568

2.72

69,687

939

2.69

    

Total earning assets

6,089,417

154,859

5.09

4,889,527

116,282

4.76

    

Nonearning assets

404,977

    

236,226

        

Total assets

$6,494,394

    

$5,125,753

        

INTEREST-BEARING LIABILITIES

                

Time deposits

$856,498

$13,841

3.23%

$739,103

$13,216

3.58%

    

Brokered time deposits

0

0

0.00

119,798

2,585

4.32

    

Savings deposits

1,724,087

16,226

1.88

1,130,350

8,296

1.47

    

Demand deposits - interest bearing

1,566,410

16,357

2.09

1,412,543

15,860

2.25

    

Total interest-bearing deposits

4,146,995

46,424

2.24

3,401,794

39,957

2.35

    
                 

Short term borrowings

317,696

6,009

3.78

177,862

3,954

4.45

    

Long term borrowings

91,744

2,177

4.75

86,282

1,980

4.59

    

Total borrowed funds

409,440

8,186

4.00

264,144

5,934

4.49

    
                 

Total interest-bearing liabilities

4,556,435

54,610

2.40

3,665,938

45,891

2.50

    
                 

NONINTEREST-BEARING LIABILITIES

                

 AND STOCKHOLDERS' EQUITY

                

Demand deposits - noninterest bearing

$1,226,626

    

$985,347

        

Other liabilities

39,484

    

54,802

        

Stockholders' equity

671,849

    

419,666

        

TOTAL LIABILITIES AND

                

STOCKHOLDERS' EQUITY

$6,494,394

    

$5,125,753

        

Net interest income and interest rate spread

  

$100,249

2.69%

  

$70,391

2.26%

    

Net interest margin

    

3.29%

    

2.88%

    
                 

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

                

(2) For 2026, adjustments of $215,000 and $1.4 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities.  For 2025, adjustments of $212,000 and $1.1 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 Six Months Ended

  
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

  
 

2026

2026

2025

2025

2025

2026

2025

  

Total Assets

$7,140,884

$7,175,476

$5,245,870

$5,235,575

$5,178,428

$7,140,884

$5,178,428

  

Less Goodwill and other intangibles

307,000

308,463

185,301

186,013

186,731

307,000

186,731

  

Tangible Assets

$6,833,884

$6,867,013

$5,060,569

$5,049,562

$4,991,697

$6,833,884

$4,991,697

  

Average Assets

7,119,745

5,862,096

5,225,497

5,178,998

5,132,661

6,494,394

5,125,753

  

Less average Goodwill and other intangibles

307,881

204,198

186,844

186,479

187,209

256,325

187,576

  

Average Tangible Assets

$6,811,864

$5,657,898

$5,038,653

$4,992,519

$4,945,452

$6,238,069

$4,938,177

  
                 
                 

Reconciliation of Common Stockholders' Equity to Tangible Common Equity

For the Three Months Ended

For the Six Months Ended

  
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

  
 

2026

2026

2025

2025

2025

2026

2025

  

Stockholders' Equity

$783,952

$766,890

$485,725

$465,949

$437,748

$783,952

$437,748

  

Less Goodwill and other intangibles

307,000

308,463

185,301

186,013

186,731

307,000

186,731

  

Tangible Common Equity

$476,952

$458,427

$300,424

$279,936

$251,017

$476,952

$251,017

  

Average Stockholders' Equity

779,455

563,048

481,061

442,556

425,249

671,849

419,666

  

Less average Goodwill and other intangibles

307,881

204,198

186,844

186,479

187,209

256,325

187,576

  

Average Tangible Common Equity

$471,574

$358,850

$294,217

$256,077

$238,040

$415,524

$232,090

  
 
 

 

 

                 
                 

Reconciliation of Net Income, Less Merger and Certain Items

For the Three Months Ended

For the Six Months Ended

  
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

  
 

2026

2026

2025

2025

2025

2026

2025

  

Net income

$23,035

$16,264

$14,638

$12,461

$13,910

$39,299

$27,488

  

System conversion / Acquisition related costs - after tax

1,365

3,418

398

2,467

0

4,783

0

  

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

13

22

113

760

(137)

36

920

  

Net income - Adjusted

$24,413

$19,704

$15,149

$15,688

$13,773

$44,118

$28,408

  

Diluted EPS excluding merger and certain items

$0.41

$0.44

$0.40

$0.42

$0.37

$0.85

$0.76

  

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

1.37%

1.37%

1.16%

1.21%

1.07%

1.36%

1.11%

  

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

12.53%

14.22%

12.60%

14.18%

12.96%

13.13%

13.54%

  

Return on Average Tangible Equity excluding system conversion, merger costs and certain items (Annualized)

20.71%

22.31%

20.60%

24.51%

23.14%

21.23%

24.48%

  
                 
                 

Efficiency ratio excluding certain items

For the Three Months Ended

For the Six Months Ended

  
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

  
 

2026

2026

2025

2025

2025

2026

2025

  

Net interest income, tax equated

$56,953

$43,295

$37,653

$36,940

$35,554

$100,248

$70,391

  

Noninterest income

14,413

13,688

12,097

11,430

12,122

28,100

22,603

  

Net loss (gain) on asset/security sales

17

28

143

962

(173)

45

1,164

  

Net interest income and noninterest income adjusted

71,383

57,011

49,893

49,332

47,503

128,393

95,435

  

Noninterest expense less intangible amortization

39,679

36,453

28,368

30,961

26,440

76,131

54,231

  

System conversion / Acquisition related costs

1,695

3,981

925

3,123

0

5,677

0

  

Noninterest expense adjusted

37,984

32,472

27,443

27,838

26,440

70,454

54,231

  

Efficiency ratio excluding certain items

53.21%

56.96%

55.00%

56.43%

55.66%

54.87%

56.83%

  
                 
               

Net interest margin excluding acquisition marks and PPP interest and fees

For the Three Months Ended

For the Six Months Ended

  
 

June 30,

March 31,

Dec. 31,

Sept. 30,

June 30,

June 30,

June 30,

  
 

2026

2026

2025

2025

2025

2026

2025

  

Net interest income, tax equated

$ 56,953

$ 43,295

$ 37,653

$ 36,940

$ 35,554

$ 100,249

$ 70,391

  

Acquisition marks

2,658

1,817

1,894

1,677

1,731

4,435

3,882

  

Adjusted and annualized net interest income

217,180

165,912

143,036

141,052

135,292

191,628

133,018

  

Average earning assets

6,626,548

5,546,319

4,937,016

4,922,275

4,886,771

6,089,417

4,889,527

  

Less PPP average balances

27

69

87

89

95

48

103

  

Adjusted average earning assets

6,626,521

5,546,250

4,936,929

4,922,186

4,886,676

6,089,369

4,889,424

  

Net interest margin excluding marks and PPP interest and fees

3.28%

2.99%

2.90%

2.87%

2.77%

3.15%

2.72%