# EDGAR Filing Document

**Accession Number:** 0000709337
**File Stem:** 0001193125-23-014782
**Filing Date:** 2023-1
**Character Count:** 46188
**Document Hash:** f2dfd3e0ab06b04fb91ede036cb3b0bb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-23-014782.hdr.sgml**: 20230125

**ACCESSION NUMBER**: 0001193125-23-014782

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230125

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230125

**DATE AS OF CHANGE**: 20230125

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** FARMERS NATIONAL BANC CORP /OH/
- **CENTRAL INDEX KEY:** 0000709337
- **STANDARD INDUSTRIAL CLASSIFICATION:** STATE COMMERCIAL BANKS [6022]
- **IRS NUMBER:** 341371693
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35296
- **FILM NUMBER:** 23549855

**BUSINESS ADDRESS:**
- **STREET 1:** 20 S BROAD STREET
- **STREET 2:** P O BOX 555
- **CITY:** CANFIELD
- **STATE:** OH
- **ZIP:** 44406
- **BUSINESS PHONE:** 3305333341

**MAIL ADDRESS:**
- **STREET 1:** 20 S BROAD STREET
- **STREET 2:** PO BOX 555
- **CITY:** CANFIELD
- **STATE:** OH
- **ZIP:** 44406

?xml version="1.0" encoding="utf-8" ? 8-K

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### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### WASHINGTON, D.C. 20549

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### FORM 8-K

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#### CURRENT REPORT

#### PURSUANT TO SECTION 13 OR 15(d)

#### OF THE SECURITIES EXCHANGE ACT OF 1934

#### Date of Report (Date of earliest event reported): January 25, 2023

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## Farmers National Banc Corp.

#### (Exact name of registrant as specified in its charter)

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---

| | | |
|:---|:---|:---|
| **Ohio** | **001-35296** | **34-1371693** |
| **(State or other jurisdiction<br>of incorporation)** | **(Commission**<br> **File Number)** | **(IRS Employer<br>Identification No.)** |

---

---

| | |
|:---|:---|
| **20 South Broad Street, P.O. Box 555, Canfield, Ohio** | **44406-0555** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

(330) 533-3341

#### (Registrant's telephone number, including area code)

#### (Former name or former address, if changed since last report)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading<br>Symbol** | **Name of each exchange on<br>which registered** |
| Common Stock, No Par Value | FMNB | The NASDAQ Stock Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.**  |

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On January 25, 2023, Farmers National Banc Corp. (the "Company") announced earnings for the quarter and year ended December 31, 2021. A copy of the press release and certain financial information for those periods is attached as Exhibit 99.1 hereto and incorporated by reference herein.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 and Exhibit 99.1 is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 and Exhibit 99.1 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended (the "Securities Act") except as may be expressly set forth by specific reference in such filing.

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| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.**  |

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&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Exhibits.</u>

---

| | |
|:---|:---|
| Exhibit<br>Number | Description |
| 99.1 | [Press Release, dated January 25, 2023](d369003dex991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| **Farmers National Banc Corp.** | **Farmers National Banc Corp.** |
| By: | /s/ Kevin J. Helmick |
|  | Kevin J. Helmick |
|  | President and Chief Executive Officer |

---

Date: January 25, 2023

## Exhibit 99.1

**Exhibit 99.1** 

January 25, 2023

***Press Release***

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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: <u>exec@farmersbankgroup.com</u> |

---

**FARMERS NATIONAL BANC CORP. REPORTS** 

**RESULTS FOR FOURTH QUARTER 2022** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Earnings per diluted share of $0.39 ($0.42 excluding certain items, non-GAAP) for the fourth quarter of 2022** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Loan growth of $5.2 million for the quarter, excluding PPP loans** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **160 consecutive quarters of profitability** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Efficiency ratio, (excluding certain items, non-GAAP), of 51.1% for the fourth quarter of 2022** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Return on average assets, (excluding certain items, non-GAAP), was 1.36% for the fourth quarter of 2022** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **ROAE and ROATE, (excluding certain items, non-GAAP), 21.3% and 34.6%, respectively, for fourth quarter of 2022** 

CANFIELD, Ohio (January 25, 2023) – Farmers National Banc Corp. ("Farmers" or the "Company") (NASDAQ: FMNB) reported today net income of $13.4 million for the three months ended December 31, 2022 compared to $5.7 million for the three months ended December 31, 2021. The Company reported diluted earnings per share of $0.39 for the fourth quarter of 2022 versus $0.18 for the same period in 2021. Results for the fourth quarter of 2022 included pretax items of $584,000 for merger related costs and combined net losses of $338,000 on the sale of securities and the sale of other assets. Excluding these items (non-GAAP), net income for the quarter ended December 31, 2022, would have been $14.1 million, or $0.42 per diluted share.

Net income for the twelve months ended December 31, 2022, totaled $60.6 million, or $1.79 per diluted share, compared to $51.8 million, or $1.77 per diluted share for the twelve months ended December 31, 2021. Results for the year ended December 31, 2022, included pre-tax items for acquisition costs of $4.1 million, security losses of $454,000, $8.4 million in other noninterest income for the proceeds of a legal settlement, a $6.0 million charitable contribution to the Farmers Charitable Foundation, $2.1 million in legal expenses associated with the legal settlement and gains of $19,000 on the sale of assets. Net income for the twelve months ended December 31, 2022, excluding these items (non-GAAP), was $64.0 million, or $1.89 per share.

Kevin J. Helmick, President and CEO, stated, "2022 was a strong year for Farmers as we produced record net income, which drove strong returns on assets, equity, and tangible equity. In addition, we successfully integrated the 2021 Cortland Bancorp acquisition, focused on completing the 2023 Emclaire Financial Corp. acquisition, and enhanced our leadership team and board. With the January 2023 completion of the Emclaire Financial Corp. acquisition, we have expanded our presence throughout Pennsylvania and significantly increased our scale with over $5.0 billion in bank assets and $3.0 billion in wealth assets. I believe Farmers is well positioned to navigate an increasingly difficult economic and interest rate environment as a result of our strong asset quality and capital levels, experienced leadership team, and dedication to provide our communities with exceptional financial products and services."

On March 23, 2022, Farmers entered into an agreement and plan of merger (the "Merger Agreement") with Emclaire Financial Corp. (formerly NASDAQ: EMCF), a Pennsylvania corporation ("Emclaire"), and the parent company of The Farmers National Bank of Emlenton ("Emlenton"). On July 20, 2022, the transaction received the approval of Emclaire's shareholders and on December 2, 2022, the transaction received regulatory approval. The transaction closed on January 1, 2023. Emclaire operated 19 branches in ten counties throughout western Pennsylvania and as of December 31, 2022, had total assets of $1.02 billion, gross loans of $797.3 million and deposits of $874.6 million.

**Balance Sheet** 

Total assets declined to $4.08 billion at December 31, 2022 compared to $4.12 billion at September 30, 2022. Gross loans (excluding loans held for sale and PPP loans) increased by $5.2 million to $2.40 billion at December 30, 2022 from the prior quarter.

Securities available for sale decreased $27.1 million to $1.27 billion at December 31, 2022 from $1.30 billion at September 30, 2022. The decrease was primarily driven by runoff and the sale of securities during the quarter offset by improvement in the gross unrealized loss. The gross unrealized loss at December 31, 2022 was $266.5 million compared to $290.1 million at September 30, 2022 and a gross unrealized gain of $11.7 million at December 31, 2021. With continued loan growth and the acquisition of Emclaire, the Company plans on allowing the securities portfolio to shrink and provide liquidity. The volatility in the bond market is expected to continue in 2023, which may result in increased volatility in the fair value of the Company's available for sale securities.

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Total customer deposits (excluding brokered time deposits) declined to $3.42 billion at December 31, 2022 from $3.52 billion at September 30, 2022. Customer deposit balances at December 31, 2021 were $3.55 billion. Intense competition from both other banks and the treasury market itself drove the decline in deposits. In addition, it appears that some customers are utilizing deposit balances to counter the higher cost of living brought on by the inflationary environment in 2022. The Company expects competition for deposits to remain highly elevated for the foreseeable future which will continue to increase funding costs.

Total stockholders' equity increased to $292.3 million at December 31, 2022 from $265.6 million at September 30, 2022 but has declined from $472.4 million at December 31, 2021. The decrease in stockholders' equity since December 31, 2021 has primarily been due to the decline in accumulated other comprehensive income associated with the rapid increase in U.S. treasury rates in 2022 which has had a negative effect on the value of the Company's available for sale securities, and in turn, the dollar amount that flows through accumulated other comprehensive income. The Company's tangible book value per share (non-GAAP) was $5.60 at December 31, 2022 compared to $4.79 at September 30, 2022, and $10.91 at December 31, 2021.

**Credit Quality** 

Non-performing loans (NPLs) were $14.8 million at December 31, 2022 compared to $16.2 million at December 31, 2021. The NPL to loans ratio was 0.62% at December 31, 2022 compared to 0.69% at December 31, 2021. Non-performing assets to assets has also declined from 0.39% at December 31, 2021 to 0.36% at December 31, 2022. Early stage delinquencies, defined as 30-89 days delinquent, were $9.6 million, or 0.40% of total loans, at December 31, 2022 compared to $8.9 million, or 0.38% of total loans at December 31, 2021.

The Company recorded a provision for credit losses and unfunded commitments of $416,000 in the fourth quarter of 2022 compared to a provision for credit losses of $5.4 million in the fourth quarter of 2021. During the fourth quarter of 2021, the Company completed the acquisition of Cortland Bancorp and recorded a $4.9 million provision for credit losses related to the acquisition which accounts for the majority of the difference in provision costs between the 4<sup>th</sup> quarter of 2022 and the 4<sup>th</sup> quarter of 2021. The Company experienced net charge-offs of $570,000 during the fourth quarter of 2022 compared to $313,000 in the fourth quarter of 2021. Net charge-offs as a percentage of average net loans was 10 basis points for the quarter ended December 31, 2022, compared to 6 basis points for the fourth quarter of 2021. The allowance for credit losses to total loans declined to 1.12% at December 31, 2022, compared to 1.26% at December 31, 2021. The low level of charge-off activity over the last several years continues to result in less allowance for credit losses being required.

**Net Interest Income** 

The net interest margin was 2.99% for the fourth quarter of 2022 compared to 3.21% for the third quarter of 2022 and 3.33% for the fourth quarter of 2021. The decline in net interest margin during the fourth quarter of 2022 compared to the prior quarter and the fourth quarter of 2021 was caused by a rapid increase in deposit rates due to intense competition for deposits, the continued Federal Reserve rate hiking cycle and runoff of deposit balances which are being replaced by much costlier wholesale funding. Loans continue to reprice higher but cannot keep up with the increase in funding costs. Excluding the impact of acquisition marks and related accretion and PPP interest and fees, the net interest margin (non-GAAP) for the fourth quarter of 2022 was 2.96% compared to 3.18% for the third quarter of 2022 and 3.21% for the fourth quarter of 2021. Net interest income decreased to $29.4 million for the fourth quarter of 2022 from $29.7 million for the quarter ended December 31, 2021. The decrease was due to net interest margin compression discussed above offset somewhat by larger average assets. In addition, during the fourth quarter of 2021, the Company recognized $979,000 in interest and fees associated with PPP loans compared to $10,000 in the fourth quarter of 2022.

**Noninterest Income** 

Noninterest income decreased $1.3 million from the fourth quarter of 2021 to the fourth quarter of 2022. The primary reason for the decline was a drop of $1.5 million in the net gains on the sale of loans. This drop was caused by lower mortgage production compared to the prior year due to the dramatic increase in interest rates in 2022 and a lower saleable mix. Bank owned life insurance increased $176,000 in the fourth quarter of 2022 compared to the fourth quarter of 2021. This increase was primarily due to a death benefit of $184,000 received in the fourth quarter of 2022. Insurance commissions increased to $1.1 million in the fourth quarter of 2022 compared to $706,000 in the fourth quarter of 2021. This business exhibited strong growth throughout 2022. Security losses for the fourth quarter of 2022 totaled $366,000 compared to security gains of $25,000 for the same period in 2021. The Company used the proceeds from the sales to pay down wholesale borrowings.

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**Noninterest Expense** 

Total noninterest expense decreased to $21.1 million in the fourth quarter of 2022 compared to $27.7 million for the fourth quarter of 2021. The year-over-year decrease was primarily due to the merger costs of $6.5 million incurred in the fourth quarter of 2021 compared to merger costs of $584,000 incurred in the fourth quarter of 2022. In addition, the Company incurred $1.8 million of expense in the fourth quarter of 2021 for prepayment penalties on FHLB advances. There were no prepayment penalties in the fourth quarter of 2022. Offsetting, these decreases were increases in salaries and employee benefits primarily related to increased healthcare costs, increased occupancy and equipment expense and increased FDIC insurance expense.

**About Farmers National Banc Corp.** 

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $4.1 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 65 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, 2022 are $3.0 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, efficiency ratio less one-time expenses, and allowance for credit losses to gross loans, excluding PPP loans and acquired loans, 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 impacts from the length and extent of the economic impacts of the COVID-19 pandemic; 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; Farmers' failure to integrate Emclaire and Emlenton with Farmers in accordance with expectations; deviations from performance expectations related to Emclaire and Emlenton; and the other factors contained in Farmers' Annual Report on Form 10-K for the year ended December 31, 2021 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.

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**Farmers National Banc Corp. and Subsidiaries** 

**Consolidated Financial Highlights** 

(Amounts in thousands, except per share results) Unaudited

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Consolidated Statements of Income** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Twelve Months Ended** | **For the Twelve Months Ended** | **For the Twelve Months Ended** |
|  | **Dec. 31,** | **Sept. 30,** | **June 30,** | **March 31,** | **Dec. 31,** | **Dec. 31,** | **Dec. 31,** | **Percent** |
|  | **2022** | **2022** | **2022** | **2022** | **2021** | **2022** | **2021** | **Change** |
|  Total interest income | $38111 | $36410 | $34286 | $33279 | $31685 | $142086 | $116459 | 22.0% |
|  Total interest expense | 8679 | 4629 | 2575 | 2037 | 1986 | 17920 | 8469 | 111.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net interest income** | 29432 | 31781 | 31711 | 31242 | 29699 | 124166 | 107990 | 15.0% |
|  Provision (credit) for credit losses | 416 | 448 | 616 | (358) | 5366 | 1122 | 4893 | -77.1% |
|  Noninterest income | 8200 | 8827 | 9477 | 17698 | 9538 | 44202 | 38193 | 15.7% |
|  Acquisition related costs | 584 | 872 | 674 | 1940 | 6521 | 4070 | 7109 | -42.7% |
|  Other expense | 20511 | 20527 | 20787 | 28516 | 21140 | 90341 | 72067 | 25.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Income before income taxes** | 16121 | 18761 | 19111 | 18842 | 6210 | 72835 | 62114 | 17.3% |
|  Income taxes | 2765 | 3315 | 3160 | 2998 | 508 | 12238 | 10270 | 19.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net income** | $13356 | $15446 | $15951 | $15844 | $5702 | $60597 | $51844 | 16.9% |
|  Average diluted shares outstanding | 33962 | 33932 | 33923 | 33937 | 32074 | 33929 | 29280 |  |
|  Basic earnings per share | 0.39 | 0.46 | 0.47 | 0.47 | 0.18 | 1.79 | 1.78 |  |
|  Diluted earnings per share | 0.39 | 0.46 | 0.47 | 0.47 | 0.18 | 1.79 | 1.77 |  |
|  Cash dividends per share | 0.17 | 0.16 | 0.16 | 0.16 | 0.14 | 0.65 | 0.47 |  |
|  **Performance Ratios** |  |  |  |  |  |  |  |  |
|  Net Interest Margin (Annualized) | 2.99% | 3.21% | 3.25% | 3.27% | 3.33% | 3.18% | 3.45% |  |
|  Efficiency Ratio (Tax equivalent basis) | 52.59% | 50.55% | 49.95% | 61.36% | 63.61% | 53.68% | 51.13% |  |
|  Return on Average Assets (Annualized) | 1.31% | 1.48% | 1.54% | 1.52% | 0.58% | 1.46% | 1.52% |  |
|  Return on Average Equity (Annualized) | 20.16% | 18.71% | 17.97% | 13.89% | 5.24% | 17.24% | 13.64% |  |
|  Dividends to Net Income | 43.10% | 35.06% | 33.95% | 34.18% | 82.99% | 36.31% | 27.11% |  |
|  **Other Performance Ratios (Non-GAAP)** |  |  |  |  |  |  |  |  |
|  Return on Average Tangible Assets | 1.32% | 1.52% | 1.57% | 1.55% | 0.60% | 1.50% | 1.55% |  |
|  Return on Average Tangible Equity | 32.81% | 27.06% | 25.23% | 17.92% | 6.57% | 24.31% | 16.13% |  |

---

**Consolidated Statements of Financial Condition** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Dec. 31,**<br>**2022** | **Sept. 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **Dec. 31,**<br>**2021** |
|  **Assets** |  |  |  |  |  |
|  Cash and cash equivalents | $75551 | $79981 | $65458 | $137627 | $112790 |
|  Securities available for sale | 1268025 | 1295133 | 1361682 | 1463626 | 1427677 |
|  Other investments | 33444 | 34399 | 34451 | 34019 | 30459 |
|  Loans held for sale | 858 | 2142 | 2714 | 1904 | 4545 |
|  Loans | 2404750 | 2399981 | 2374485 | 2304971 | 2331082 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less allowance for credit losses | 26978 | 27282 | 27454 | 27015 | 29386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Loans | 2377772 | 2372699 | 2347031 | 2277956 | 2301696 |
|  Other assets | 326550 | 335668 | 303028 | 290723 | 265582 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Assets** | $4082200 | $4120022 | $4114364 | $4205855 | $4142749 |
|  **Liabilities and Stockholders' Equity** |  |  |  |  |  |
|  Deposits |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noninterest-bearing | $896957 | $934638 | $983713 | $963143 | $916237 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest-bearing | 2526760 | 2590054 | 2586829 | 2690668 | 2630998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Brokered time deposits | 138051 | 42459 | 54996 | 40000 | 0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deposits | 3561768 | 3567151 | 3625538 | 3693811 | 3547235 |
|  Other interest-bearing liabilities | 183211 | 243098 | 137985 | 87872 | 87758 |
|  Other liabilities | 44926 | 44154 | 29392 | 30286 | 35324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 3789905 | 3854403 | 3792915 | 3811969 | 3670317 |
|  Stockholders' Equity | 292295 | 265619 | 321449 | 393886 | 472432 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Liabilities and Stockholders' Equity** | $4082200 | $4120022 | $4114364 | $4205855 | $4142749 |
|  Period-end shares outstanding | 34055 | 34060 | 34032 | 34008 | 33898 |
|  Book value per share | $8.58 | $7.80 | $9.45 | $11.58 | $13.94 |
|  Tangible book value per share (Non-GAAP)\* | 5.60 | 4.79 | 6.46 | 8.58 | 10.91 |

---

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Capital and Liquidity** |  |  |  |  |  |
|  Common Equity Tier 1 Capital Ratio (a) | 13.61% | 13.36% | 13.3% | 13.31% | 13.16% |
|  Total Risk Based Capital Ratio (a) | 17.66% | 17.44% | 17.46% | 17.59% | 17.6% |
|  Tier 1 Risk Based Capital Ratio (a) | 14.22% | 13.97% | 13.92% | 13.95% | 13.82% |
|  Tier 1 Leverage Ratio (a) | 9.84% | 10.24% | 9.56% | 9.56% | 10.12% |
|  Equity to Asset Ratio | 7.16% | 6.45% | 7.81% | 9.37% | 11.4% |
|  Tangible Common Equity Ratio (b) | 4.79% | 4.06% | 5.47% | 7.11% | 9.15% |
|  Net Loans to Assets | 58.25% | 57.59% | 57.04% | 54.16% | 55.56% |
|  Loans to Deposits | 67.52% | 67.28% | 65.49% | 62.4% | 65.72% |
|  **Asset Quality** |  |  |  |  |  |
|  Non-performing loans | $14803.0 | $12976.0 | $14107.0 | $14046.0 | $16195.0 |
|  Non-performing assets | 14876.0 | 13042.0 | 14107.0 | 14046.0 | 16195.0 |
|  Loans 30—89 days delinquent | 9605.0 | 6659.0 | 8716.0 | 7304.0 | 8891.0 |
|  Charged-off loans | 754.0 | 783.0 | 177.0 | 1590.0 | 470.0 |
|  Recoveries | 184.0 | 178.0 | 135.0 | 149.0 | 157.0 |
|  Net Charge-offs | 570.0 | 605.0 | 42.0 | 1441.0 | 313.0 |
|  Annualized Net Charge-offs to |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Average Net Loans Outstanding | 0.1% | 0.1% | 0.01% | 0.25% | 0.06% |
|  Allowance for Credit Losses to Total Loans | 1.12% | 1.14% | 1.16% | 1.17% | 1.26% |
|  Non-performing Loans to Total Loans | 0.62% | 0.54% | 0.59% | 0.61% | 0.69% |
|  Allowance to Non-performing Loans | 182.25% | 210.25% | 194.61% | 192.33% | 181.45% |
|  Non-performing Assets to Total Assets | 0.36% | 0.32% | 0.34% | 0.33% | 0.39% |

---

(a) December 31, 2022 ratio is estimated

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** |
|  | **Dec. 31,** | **Sept. 30,** | **June 30,** | **March 31,** | **Dec. 31,** |
| **End of Period Loan Balances** | **2022** | **2022** | **2022** | **2022** | **2021** |
|  Commercial real estate | $1028050 | $1028484 | $1040243 | $1000972 | $1011891 |
|  Commercial | 293643 | 296932 | 285981 | 298903 | 313836 |
|  Residential real estate | 475791 | 474014 | 464489 | 455501 | 453635 |
|  HELOC | 132179 | 132267 | 129392 | 128221 | 127433 |
|  Consumer | 221260 | 222706 | 218219 | 192586 | 189522 |
|  Agricultural loans | 246937 | 239081 | 230477 | 224845 | 232365 |
|  Total, excluding net deferred loan costs | $2397860 | $2393484 | $2368801 | $2301028 | $2328682 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Twelve Months<br>Ended** | **For the Twelve Months<br>Ended** |
|  | **Dec. 31,** | **Sept. 30,** | **June 30,** | **March 31,** | **Dec. 31,** | **Dec. 31,** | **Dec. 31,** |
| **Noninterest Income** | **2022** | **2022** | **2022** | **2022** | **2021** | **2022** | **2021** |
|  Service charges on deposit accounts | $1203 | $1229 | $1139 | $1145 | $1138 | $4716 | $3660 |
|  Bank owned life insurance income, including death benefits | 590 | 406 | 405 | 409 | 414 | 1810 | 1338 |
|  Trust fees | 2373 | 2370 | 2376 | 2519 | 2509 | 9638 | 9438 |
|  Insurance agency commissions | 1133 | 1136 | 1086 | 1047 | 706 | 4402 | 3456 |
|  Security gains (losses), including fair value changes for equity securities | (366) | (17) | (60) | (11) | 25 | (454) | 1004 |
|  Retirement plan consulting fees | 337 | 332 | 323 | 397 | 378 | 1389 | 1421 |
|  Investment commissions | 508 | 424 | 557 | 694 | 611 | 2183 | 2276 |
|  Net gains on sale of loans | 242 | 326 | 365 | 1129 | 1728 | 2062 | 8285 |
|  Other mortgage banking fee income (loss), net | 98 | 94 | 39 | 60 | 2 | 291 | (136) |
|  Debit card and EFT fees | 1407 | 1463 | 1528 | 1416 | 1424 | 5814 | 5144 |
|  Other noninterest income | 675 | 1064 | 1719 | 8893 | 603 | 12351 | 2307 |
|  Total Noninterest Income | $8200 | $8827 | $9477 | $17698 | $9538 | $44202 | $38193 |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Twelve Months<br>Ended** | **For the Twelve Months<br>Ended** |
|  | **Dec. 31,** | **Sept. 30,** | **June 30,** | **March 31,** | **Dec. 31,** | **Dec. 31,** | **Dec. 31,** |
| **Noninterest Expense** | **2022** | **2022** | **2022** | **2022** | **2021** | **2022** | **2021** |
|  Salaries and employee benefits | $11385 | $10724 | $11073 | $11831 | $10230 | $45013 | $39393 |
|  Occupancy and equipment | 2753 | 3028 | 2918 | 2680 | 2422 | 11379 | 8486 |
|  FDIC insurance and state and local taxes | 1010 | 1017 | 979 | 945 | 772 | 3951 | 2859 |
|  Professional fees | 938 | 985 | 1056 | 3135 | 1296 | 6114 | 4191 |
|  Merger related costs | 584 | 872 | 674 | 1940 | 6521 | 4070 | 7109 |
|  Advertising | 472 | 596 | 487 | 392 | 776 | 1947 | 1859 |
|  Intangible amortization | 702 | 432 | 419 | 420 | 414 | 1973 | 1362 |
|  Core processing charges | 742 | 738 | 1123 | 745 | 880 | 3348 | 3198 |
|  Other noninterest expenses | 2509 | 3007 | 2732 | 8368 | 4350 | 16616 | 10719 |
|  Total Noninterest Expense | $21095 | $21399 | $21461 | $30456 | $27661 | $94411 | $79176 |

---

------

**Average Balance Sheets and Related Yields and Rates** 

(Dollar Amounts in Thousands)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | AVERAGE | | YIELD/ | AVERAGE | | YIELD/ |
|  | BALANCE | INTEREST (1) | RATE (1) | BALANCE | INTEREST (1) | RATE (1) |
|  EARNING ASSETS |  |  |  |  |  |  |
|  Loans (2) | $2394872 | $29092 | 4.86% | $2187770 | $24946 | 4.52% |
|  Taxable securities | 1105545 | 5556 | 2.01 | 892563 | 3948 | 1.75 |
|  Tax-exempt securities (2) | 453917 | 3580 | 3.15 | 410016 | 3397 | 3.29 |
|  Other investments | 33901 | 326 | 3.85 | 26475 | 142 | 2.13 |
|  Federal funds sold and other | 59108 | 336 | 2.27 | 114496 | 39 | 0.14 |
|  Total earning assets | 4047343 | 38890 | 3.84 | 3631320 | 32472 | 3.55 |
|  Nonearning assets | 33154 |  |  | 248581 |  |  |
|  Total assets | $4080497 |  |  | $3879901 |  |  |
|  INTEREST-BEARING LIABILITIES |  |  |  |  |  |  |
|  Time deposits | $370914 | $1261 | 1.36% | $379786 | $697 | 0.73% |
|  Brokered time deposits | 115021 | 1034 | 3.60 | 0 | 0 | 0.00 |
|  Savings deposits | 871584 | 879 | 0.40 | 736732 | 202 | 0.11 |
|  Demand deposits - interest bearing | 1301475 | 3805 | 1.17 | 1367921 | 475 | 0.14 |
|  Short term borrowings | 85641 | 777 | 3.63 | 0 | 2 | 0.00 |
|  Long term borrowings | 88138 | 922 | 4.18 | 80799 | 610 | 3.00 |
|  Total interest-bearing liabilities | $2832773 | 8678 | 1.23 | $2565238 | 1986 | 0.31 |
|  NONINTEREST-BEARING LIABILITIES |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |
|  Demand deposits - noninterest bearing | 938881 |  |  | 851130 |  |  |
|  Other liabilities | 43904 |  |  | 31824 |  |  |
|  Stockholders' equity | 264939 |  |  | 431709 |  |  |
|  TOTAL LIABILITIES AND |  |  |  |  |  |  |
|  STOCKHOLDERS' EQUITY | $4080497 |  |  | $3879901 |  |  |
|  Net interest income and interest rate spread |  | $30212 | 2.61% |  | $30486 | 3.24% |
|  Net interest margin |  |  | 2.99% |  |  | 3.33% |

---

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

(2) For 2022, adjustments of $72 thousand and $707 thousand, respectively, were made to tax equate income
on tax exempt loans and tax exempt securities. For 2021, adjustments of $86 thousand and $701 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** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **December 31, 2022** | **December 31, 2022** | **December 31, 2022** | **December 31, 2021** | **December 31, 2021** | **December 31, 2021** |
|  | AVERAGE | | YIELD/ | AVERAGE | | YIELD/ |
|  | BALANCE | INTEREST (1) | RATE (1) | BALANCE | INTEREST (1) | RATE (1) |
|  EARNING ASSETS |  |  |  |  |  |  |
|  Loans (2) | $2358724 | $108100 | 4.58% | $2041347 | $95180 | 4.66% |
|  Taxable securities | 1081966 | 20843 | 1.93 | 617475 | 11399 | 1.85 |
|  Tax-exempt securities (2) | 465855 | 14952 | 3.21 | 348627 | 12027 | 3.45 |
|  Other investments | 33153 | 871 | 2.63 | 21912 | 498 | 2.27 |
|  Federal funds sold and other | 76253 | 684 | 0.90 | 180718 | 200 | 0.11 |
|  Total earning assets | 4015951 | 145450 | 3.62 | 3210079 | 119304 | 3.72 |
|  Nonearning assets | 128757 |  |  | 195805 |  |  |
|  Total assets | $4144708 |  |  | $3405884 |  |  |
|  INTEREST-BEARING LIABILITIES |  |  |  |  |  |  |
|  Time deposits | $360687 | $3044 | 0.84% | $393039 | $3652 | 0.93% |
|  Brokered time deposits | 56965 | 1240 | 2.18 | 11737 | 75 | 0.64 |
|  Savings deposits | 846418 | 1352 | 0.16 | 569179 | 712 | 0.13 |
|  Demand deposits - interest bearing | 1392058 | 7449 | 0.54 | 1240014 | 2336 | 0.19 |
|  Short term borrowings | 55668 | 1408 | 2.53 | 3957 | 7 | 0.28 |
|  Long term borrowings | 87972 | 3427 | 3.90 | 70057 | 1687 | 2.40 |
|  Total interest-bearing liabilities | $2799768 | 17920 | 0.64 | $2287983 | 8469 | 0.37 |
|  NONINTEREST-BEARING LIABILITIES |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AND STOCKHOLDERS' EQUITY |  |  |  |  |  |  |
|  Demand deposits - noninterest bearing | $959294 |  |  | $714978 |  |  |
|  Other liabilities | 34180 |  |  | 23498 |  |  |
|  Stockholders' equity | 351466 |  |  | 379425 |  |  |
|  TOTAL LIABILITIES AND |  |  |  |  |  |  |
|  STOCKHOLDERS' EQUITY | $4144708 |  |  | $3405884 |  |  |
|  Net interest income and interest rate spread |  | $127530 | 2.98% |  | $110835 | 3.35% |
|  Net interest margin |  |  | 3.18% |  |  | 3.45% |

---

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

(2) For 2022, adjustments of $310 thousand and $3.1 million, respectively, were made to tax equate income
on tax exempt loans and tax exempt securities. For 2021, adjustments of $360 thousand and $2.5 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 Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Twelve Months<br>Ended** | **For the Twelve Months<br>Ended** |
|  | **Dec. 31,**<br>**2022** | **Sept. 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **Dec. 31,**<br>**2021** | **Dec. 31,**<br>**2022** | **Dec. 31,**<br>**2021** |
|  Total Assets | $4082200 | $4120022 | $4114364 | $4205855 | $4142749 | $4082200 | $4142749 |
|  Less Goodwill and other intangibles | 101666 | 102368 | 101767 | 102187 | 102606 | 101666 | 102606 |
|  Tangible Assets | $3980534 | $4017654 | $4012597 | $4103668 | $4040143 | $3980534 | $4040143 |
|  Average Assets | 4144708 | 4164855 | 4155719 | 4178618 | 3879901 | 4144708 | 3405884 |
|  Less average Goodwill and other intangibles | 102126 | 101981 | 102042 | 102462 | 84580 | 102151 | 58111 |
|  Average Tangible Assets | $4042582 | $4062874 | $4053677 | $4076156 | $3795321 | $4042557 | $3347773 |

---

**Reconciliation of Common Stockholders' Equity to Tangible Common Equity** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Twelve Months<br>Ended** | **For the Twelve Months<br>Ended** |
|  | **Dec. 31,**<br>**2022** | **Sept. 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **Dec. 31,**<br>**2021** | **Dec. 31,**<br>**2022** | **Dec. 31,**<br>**2021** |
|  Stockholders' Equity | $292295 | $265619 | $321449 | $393886 | $472432 | $292295 | $472432 |
|  Less Goodwill and other intangibles | 101666 | 102368 | 101767 | 102187 | 102606 | 101666 | 102606 |
|  Tangible Common Equity | $190629 | $163251 | $219682 | $291699 | $369826 | $190629 | $369826 |
|  Average Stockholders' Equity | 264939 | 330300 | 354981 | 456206 | 431709 | 351466 | 379425 |
|  Less average Goodwill and other intangibles | 102126 | 101981 | 102042 | 102462 | 84580 | 102151 | 58111 |
|  Average Tangible Common Equity | $162813 | $228319 | $252939 | $353744 | $347129 | $249315 | $321314 |

---

**Reconciliation of Net Income, Less Merger and Certain Items** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Twelve Months<br>Ended** | **For the Twelve Months<br>Ended** |
|  | **Dec. 31,**<br>**2022** | **Sept. 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **Dec. 31,**<br>**2021** | **Dec. 31,**<br>**2022** | **Dec. 31,**<br>**2021** |
|  Net income | $13356 | $15446 | $15951 | $15844 | $5702 | $60597 | $51844 |
|  Acquisition related costs - after tax | 475 | 711 | 564 | 1540 | 5232 | 3290 | 5731 |
|  Acquisition related provision - after tax | 0 | 0 | 0 | 0 | 3846 | 0 | 3846 |
|  Lawsuit settlement income - after tax | 0 | 0 | 0 | (6616) | 0 | (6616) | 0 |
|  Lawsuit settlement contingent legal expense - after tax | 0 | 0 | 0 | 1639 | 0 | 1639 | 0 |
|  Charitable donation - after tax | 0 | 0 | 0 | 4740 | 0 | 4740 | 0 |
|  FHLB prepayment penalties - after tax | 0 | 0 | 0 | 0 | 1425 | 0 | 1682 |
|  Net loss (gain) on asset/security sales - after tax | 268 | 4 | (25) | 97 | 134 | 344 | (598) |
|  Gain on sale of credit card portfolio - after tax | 0 | 0 | 0 | 0 | (189) | 0 | (189) |
|  Net income - Adjusted | $14099 | $16161 | $16490 | $17244 | $16150 | $63994 | $62316 |
|  Diluted EPS excluding merger and one-time items | $0.42 | $0.48 | $0.49 | $0.51 | $0.50 | $1.89 | $2.13 |
|  Return on Average Assets excluding merger and certain items (Annualized) | 1.36% | 1.55% | 1.59% | 1.65% | 1.65% | 1.54% | 1.83% |
|  Return on Average Equity excluding merger and certain items (Annualized) | 21.29% | 19.57% | 18.58% | 15.12% | 14.84% | 18.21% | 16.42% |
|  Return on Average Tangible Equity excluding acquisition costs and certain items (Annualized) | 34.64% | 28.31% | 26.08% | 19.50% | 18.46% | 25.67% | 19.39% |

---

------

**Efficiency ratio excluding certain items** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Twelve Months<br>Ended** | **For the Twelve Months<br>Ended** |
|  | **Dec. 31,**<br>**2022** | **Sept. 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **Dec. 31,**<br>**2021** | **Dec. 31,**<br>**2022** | **Dec. 31,**<br>**2021** |
|  Net interest income, tax equated | $30212 | $32636 | $32583 | $32100 | $30486 | $127530 | $110835 |
|  Noninterest income | 8200 | 8827 | 9477 | 17698 | 9538 | 44202 | 38193 |
|  Legal settlement income | 0 | 0 | 0 | (8375) | 0 | (8375) | 0 |
|  Net loss (gain) on asset/security sales | 338 | 6 | (32) | 123 | 170 | 435 | (757) |
|  Gain on sale of credit card portfolio | 0 | 0 | 0 | 0 | (239) | 0 | (239) |
|  Net interest income and noninterest income adjusted | 38750 | 41469 | 42028 | 41546 | 39955 | 163792 | 148032 |
|  Noninterest expense less intangible amortization | 20393 | 20967 | 21042 | 30036 | 27247 | 92438 | 77817 |
|  Charitable donation | 0 | 0 | 0 | 6000 | 0 | 6000 | 0 |
|  Contingent legal settlement expense | 0 | 0 | 0 | 2075 | 0 | 2075 | 0 |
|  Acquisition related costs | 584 | 872 | 674 | 1940 | 6521 | 4070 | 7109 |
|  FHLB prepayment penalties | 0 | 0 | 0 | 0 | 1804 | 0 | 2129 |
|  Noninterest income adjusted | 19809 | 20095 | 20368 | 20021 | 18922 | 80293 | 68579 |
|  Efficiency ratio excluding one-time items | 51.12% | 48.46% | 48.46% | 48.19% | 47.36% | 49.02% | 46.33% |

---

**Net interest margin excluding acquisition marks and PPP interest and fees** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Three Months Ended** | **For the Twelve Months<br>Ended** | **For the Twelve Months<br>Ended** |
|  | **Dec. 31,**<br>**2022** | **Sept. 30,**<br>**2022** | **June 30,**<br>**2022** | **March 31,**<br>**2022** | **Dec. 31,**<br>**2021** | **Dec. 31,**<br>**2022** | **Dec. 31,**<br>**2021** |
|  Net interest income, tax equated | $30212 | $32636 | $32583 | $32100 | $30486 | $127530 | $110835 |
|  Acquisition marks | 209 | 246 | 381 | 957 | 496 | 1793 | 932 |
|  PPP interest and fees | 10 | 62 | 634 | 686 | 979 | 1392 | 6621 |
|  Adjusted and annualized net interest income | 119972 | 129312 | 126272 | 121828 | 115098 | 124345 | 103283 |
|  Average earning assets | 4047343 | 4065085 | 4015385 | 3931506 | 3631320 | 4015951 | 3210079 |
|  Less PPP average balances | 485 | 1586 | 16019 | 30003 | 47939 | 11914 | 95226 |
|  Adjusted average earning assets | 4046858 | 4063499 | 3999366 | 3901503 | 3583381 | 4004037 | 3114853 |
|  Net interest margin excluding marks and PPP interest and fees | 2.96% | 3.18% | 3.16% | 3.12% | 3.21% | 3.11% | 3.32% |

---