Farmers National (NASDAQ: FMNB) lifts Q1 2026 profit with Middlefield acquisition
Rhea-AI Filing Summary
Farmers National Banc Corp. reported stronger first quarter 2026 results as it closed the Middlefield Banc Corp. acquisition and expanded in Ohio and Pennsylvania.
Net income was $16.3 million, up from $13.6 million a year earlier, while diluted earnings per share held at $0.36. Excluding $4.0 million of acquisition and core conversion costs, adjusted net income rose to $20.0 million, or $0.45 per diluted share, reflecting higher core profitability.
Total assets climbed to $7.18 billion at March 31, 2026 from $5.25 billion at year-end 2025, with Middlefield contributing $1.82 billion of assets, $1.49 billion of loans and $1.49 billion of deposits. Net interest income increased to $42.6 million and the net interest margin improved to 3.12%, helped by higher asset yields and lower funding costs.
Credit quality remained controlled, though nonperforming loans rose to $59.9 million, or 1.25% of total loans, mainly from the acquired portfolio. Farmers posted a 1.11% return on average assets and 11.55% return on average equity, and management expects further net interest margin expansion in the second quarter of 2026 as Middlefield synergies are realized.
Positive
- None.
Negative
- None.
Insights
Middlefield deal drives scale and margins, with solid underlying profitability.
Farmers National shows a larger balance sheet and better earnings power in Q1 2026. Assets rose to $7.18B, loans to $4.80B, and deposits to $5.92B, largely from the Middlefield acquisition. Net income reached $16.3M, with adjusted earnings of $20.0M after backing out $3.98M in deal and conversion costs.
Profitability metrics are healthy: net interest income increased to $42.6M, the net interest margin widened to 3.12%, and adjusted return on average assets was 1.37%. Management also cites an expected further net interest margin expansion of about 25 basis points in Q2 2026 as full Middlefield impacts flow through.
Credit remains manageable but bears watching, with nonperforming loans rising to $59.9M or 1.25% of total loans due to acquired credits. The allowance for credit losses covers 1.14% of loans, and annualized net charge-offs are low at 0.05%. Future filings will show how integration costs taper, whether margin expansion materializes, and how asset quality trends evolve in the combined portfolio.
8-K Event Classification
Key Figures
Key Terms
net interest margin financial
CECL model financial
tangible common equity ratio financial
nonperforming loans financial
efficiency ratio financial
Earnings Snapshot
The company expects the net interest margin to expand by approximately 25 basis points in the second quarter of 2026 as the full impact of the Middlefield acquisition is realized.
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Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit Number
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Description
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99.1
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Press Release, dated April 22, 2026
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99.2
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Investor Presentation, dated April 22, 2026
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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Farmers National Banc Corp.
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By:
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/s/ Kevin J. Helmick
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Kevin J. Helmick
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President and Chief Executive Officer
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Exhibit 99.1
April 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. ANNOUNCES RESULTS FOR FIRST QUARTER OF 2026
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173 consecutive quarters of profitability |
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Closed the acquisition of Middlefield Banc Corp. on March 2, 2026 |
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EPS was $0.36 for the quarter, $0.45 excluding acquisition and core conversion costs (non-GAAP) |
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Net interest margin increased to 3.12% in the first quarter of 2026 from 3.05% in the fourth quarter of 2025 and 2.85% in the first quarter of 2025 |
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Return on average assets was 1.11% in the first quarter of 2026, 1.37% excluding acquisition/core conversion costs (non-GAAP) |
CANFIELD, Ohio (April 22, 2026) – Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) reported net income of $16.3 million, or $0.36 per diluted share, for the first quarter of 2026 compared to $13.6 million, or $0.36 per diluted share, for the first quarter of 2025. Net income in the first quarter of 2026 included $4.0 million related to the acquisition of Middlefield Banc Corp. (Middlefield) and core conversion costs. Excluding these items (non-GAAP), adjusted net income for the first quarter of 2026 was $20.0 million, or $0.45 per diluted share.
Kevin J. Helmick, President and CEO, stated: “Farmers is off to a solid start in 2026, highlighted by the successful completion of the Middlefield acquisition and continued strength across our core Ohio and Pennsylvania markets. We are focused on successfully integrating Middlefield into our operations and completing our core technology conversion, both of which are expected to be completed in the third quarter of 2026. In addition, we are well positioned to capitalize on our expanded presence in Columbus, Ohio, as a result of recent investments and the Middlefield acquisition. Combined, we believe these actions position Farmers for continued profitable growth and value creation.”
Balance Sheet
Total assets increased to $7.18 billion at March 31, 2026, from $5.25 billion at December 31, 2025, primarily due to the Middlefield acquisition which added $1.82 billion in assets. Total loans, net of allowance, increased to $4.75 billion at March 31, 2026, from $3.27 billion at December 31, 2025. Middlefield added $1.49 billion in total loans at the date of closing.
Securities available for sale increased to $1.48 billion at March 31, 2026, compared to $1.34 billion at December 31, 2025. Middlefield added $152.8 million to the total. The Company anticipates continued rate volatility in the bond market in 2026, which will continue to affect the value of the portfolio.
Total deposits were $5.92 billion at March 31, 2026, an increase of $1.58 billion from December 31, 2025. The increase was primarily due to Middlefield, which added $1.49 billion in deposits, as well as seasonal growth in public funds.
Total stockholders’ equity increased to $766.9 million at March 31, 2026, compared to $485.7 million at December 31, 2025. The increase was primarily driven by the acquisition of Middlefield.
Credit Quality
Non-performing loans increased from $26.2 million at December 31, 2025, to $59.9 million at March 31, 2026. The increase was due to the acquisition of Middlefield. Nonperforming loans to total loans were 1.25% at March 31, 2026 compared to 0.79% at December 31, 2025. The Company’s loans which were 30-89 days delinquent were $14.7 million at March 31, 2026, or 0.31% of total loans, compared to $16.9 million at December 31, 2025.
The provision for credit losses and unfunded commitments was a recovery of $1.0 million in the first quarter of 2026 compared to a recovery of $204,000 in the first quarter of 2025. The provision in the first quarter of 2026 was positively impacted by improvements in qualitative factors in the Company’s CECL model. Annualized net charge-offs as a percentage of average loans were 0.05% in the first quarter of 2026, compared to 0.04% in the first quarter of 2025. The allowance for credit losses to total loans was 1.14% at March 31, 2026, compared to 1.11% at December 31, 2025. With the addition of Middlefield, the Company established a Day 1 allowance for credit losses of $19.3 million for the Middlefield loan balances. This was the primary reason for the increase in the allowance for loan losses to loans ratio in the first quarter.
Net Interest Income
Net interest income increased to $42.6 million in the first quarter of 2026, compared to $34.2 million in the first quarter of 2025. Average interest earning assets increased to $5.55 billion in the first quarter of 2026 compared to $4.89 billion in the first quarter of 2025. The increase was primarily driven by the acquisition of Middlefield. The net interest margin improved to 3.12% in the first quarter of 2026 compared to 2.85% in the first 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. The Company expects the net interest margin to expand by approximately 25 basis points in the second quarter of 2026 as the full impact of the Middlefield acquisition is realized. The yield on interest earning assets increased from 4.74% in the first quarter of 2025 to 4.89% in the first quarter of 2026, while the cost of interest-bearing liabilities declined from 2.52% in the first quarter of 2025 to 2.35% in the first quarter of 2026. Excluding acquisition marks, non-GAAP, the Company’s net interest margin was 2.99% in the first quarter of 2026, and 2.67% in the first quarter of 2025.
Noninterest Income
Noninterest income increased to $13.7 million in the first quarter of 2026 from $10.5 million in the first quarter of 2025. The increase was driven by the Middlefield acquisition, growth in the wealth lines of business and lower losses on the sale of securities. Service charge income increased to $2.0 million in the first quarter of 2026 compared to $1.8 million in the first quarter of 2025 primarily due to the acquisition. Bank owned life insurance income was $1.5 million in the first quarter of 2026 compared to $810,000 in the first quarter of 2025. Death claims were higher by $416,000 in 2026 compared to 2025 and the addition of Middlefield was primarily responsible for the remaining difference. Trust fees increased to $3.0 million in the first quarter of 2026 from $2.6 million in the first quarter of 2025 as the Company continues to show excellent growth in this business unit. Losses on the sale of securities were $18,000 in the first quarter of 2026, down from a loss of $1.3 million in the first quarter of 2025. The Company restructured $23.8 million of securities at the end of the first quarter of 2025 resulting in the loss realized on the sale. Investment commissions increased $342,000 from the first quarter of 2025 to first quarter of 2026 as the Company continued to add investment representatives to the program. Other mortgage banking income was $477,000 in the first quarter of 2026 compared to $147,000 in the first quarter of 2025. This increase was primarily due to the Company recovering $303,000 of mortgage servicing rights impairment in the first quarter of 2026. Other noninterest income declined to $898,000 in the first quarter of 2026 compared to $1.2 million in the first quarter of 2025 primarily due to lower SBIC income in 2026.
Noninterest Expense
Noninterest expense increased to $37.3 million in the first quarter of 2026 from $28.5 million in the first quarter of 2025 primarily as a result of the Middlefield acquisition and the recognition of $4.0 million in acquisition and core conversion costs in the first quarter of 2026. Salaries and employee benefits increased to $18.5 million in the first quarter of 2026 from $16.2 million in the first quarter of 2025. The increase was primarily driven by annual raises and the acquisition. Occupancy and equipment expense increased by $988,000 in the first quarter of 2026 from the first quarter of 2025 primarily as a result of the acquisition and higher building maintenance costs due to more severe winter weather conditions. FDIC insurance and state and local taxes were $1.6 million in the quarter ended March 31, 2026, an increase of $341,000 from the quarter ending March 31, 2025 due to the acquisition and increased franchise tax due to higher levels of capital year-over-year. Core processing expense increased to $1.8 million in the first quarter of 2026 compared to $1.4 million in the first quarter of 2025. The increase was due to the acquisition and a lower level of service credits in 2026. Other noninterest expense increased by $650,000 to $3.8 million in the first quarter of 2026 primarily as a result of the acquisition and timing issues.
Liquidity
The Company had access to an additional $788.9 million in FHLB borrowing capacity at March 31, 2026, along with $446.6 million in available for sale securities that are available for pledging. The Company’s loan to deposit ratio was 81.1% at March 31, 2026.
About Farmers National Banc Corp.
Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $7.2 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 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 March 31, 2026 are $4.9 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.
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Farmers National Banc Corp. and Subsidiaries |
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Consolidated Financial Highlights |
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(Amounts in thousands, except per share results) Unaudited |
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Consolidated Statements of Income |
For the Three Months Ended |
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March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
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2026 |
2025 |
2025 |
2025 |
2025 |
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Total interest income |
$67,117 |
$59,418 |
$59,366 |
$57,702 |
$57,305 |
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Total interest expense |
24,549 |
22,398 |
23,059 |
22,781 |
23,110 |
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Net interest income |
42,568 |
37,020 |
36,307 |
34,921 |
34,195 |
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Provision (credit) for credit losses |
(1,034) |
2,306 |
1,419 |
3,548 |
(204) |
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Noninterest income |
13,688 |
12,098 |
11,430 |
12,122 |
10,481 |
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System conversion / Acquisition related costs |
3,981 |
925 |
3,123 |
0 |
0 |
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Other expense |
33,337 |
28,153 |
28,556 |
27,175 |
28,526 |
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Income before income taxes |
19,972 |
17,734 |
14,639 |
16,320 |
16,354 |
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Income taxes |
3,708 |
3,096 |
2,178 |
2,410 |
2,776 |
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Net income |
$16,264 |
$14,638 |
$12,461 |
$13,910 |
$13,578 |
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Average diluted shares outstanding |
44,874 |
37,705 |
37,677 |
37,622 |
37,626 |
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Basic earnings per share |
0.36 |
0.39 |
0.33 |
0.37 |
0.36 |
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Diluted earnings per share |
0.36 |
0.39 |
0.33 |
0.37 |
0.36 |
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Cash dividends per share |
0.17 |
0.17 |
0.17 |
0.17 |
0.17 |
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Performance Ratios |
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Net Interest Margin (Annualized) |
3.12% |
3.05% |
3.00% |
2.91% |
2.85% |
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Efficiency Ratio (Tax equivalent basis) |
63.97% |
57.11% |
62.66% |
56.66% |
59.60% |
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Efficiency Ratio (Tax equivalent basis) excluding core conversion, acquisition costs and other extraordinary items (b) |
56.96% |
55.00% |
56.43% |
55.66% |
59.57% |
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Return on Average Assets (Annualized) |
1.11% |
1.12% |
0.96% |
1.08% |
1.06% |
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Return on Average Equity (Annualized) |
11.55% |
12.17% |
11.26% |
13.08% |
13.12% |
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Other Performance Ratios (Non-GAAP) |
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Return on Average Tangible Assets |
1.15% |
1.16% |
1.00% |
1.13% |
1.10% |
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Return on Average Tangible Equity |
18.13% |
19.90% |
19.46% |
23.37% |
24.02% |
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Consolidated Statements of Financial Condition |
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March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
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2026 |
2025 |
2025 |
2025 |
2025 |
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Assets |
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Cash and cash equivalents |
$186,083 |
$92,357 |
$92,345 |
$90,740 |
$113,256 |
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Debt securities available for sale |
1,484,198 |
1,343,457 |
1,301,766 |
1,274,899 |
1,281,413 |
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Other investments |
54,858 |
45,397 |
44,245 |
42,410 |
40,334 |
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Loans held for sale |
1,919 |
1,516 |
4,975 |
2,174 |
2,973 |
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Loans |
4,800,064 |
3,304,713 |
3,337,780 |
3,303,359 |
3,251,391 |
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Less allowance for credit losses |
54,684 |
36,811 |
39,528 |
38,563 |
35,549 |
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Net Loans |
4,745,380 |
3,267,902 |
3,298,252 |
3,264,796 |
3,215,842 |
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Other assets |
703,038 |
495,241 |
493,992 |
503,409 |
503,222 |
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Total Assets |
$7,175,476 |
$5,245,870 |
$5,235,575 |
$5,178,428 |
$5,157,040 |
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Liabilities and Stockholders' Equity |
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Deposits |
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Noninterest-bearing |
$1,334,021 |
$994,122 |
$994,604 |
$995,865 |
$979,142 |
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Interest-bearing |
4,587,364 |
3,348,656 |
3,405,911 |
3,325,564 |
3,342,182 |
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Brokered time deposits |
0 |
0 |
0 |
74,988 |
159,964 |
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Total deposits |
5,921,385 |
4,342,778 |
4,400,515 |
4,396,417 |
4,481,288 |
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Other interest-bearing liabilities |
435,108 |
367,733 |
321,581 |
289,428 |
188,275 |
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Other liabilities |
52,093 |
49,634 |
47,530 |
54,835 |
58,343 |
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Total liabilities |
6,408,586 |
4,760,145 |
4,769,626 |
4,740,680 |
4,727,906 |
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Stockholders' Equity |
766,890 |
485,725 |
465,949 |
437,748 |
429,134 |
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Total Liabilities |
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and Stockholders' Equity |
$7,175,476 |
$5,245,870 |
$5,235,575 |
$5,178,428 |
$5,157,040 |
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Period-end shares outstanding |
59,215 |
37,653 |
37,647 |
37,642 |
37,615 |
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Book value per share |
$12.95 |
$12.90 |
$12.38 |
$11.63 |
$11.41 |
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Tangible book value per share (Non-GAAP)* |
7.74 |
7.98 |
7.44 |
6.67 |
6.42 |
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* Tangible book value per share is calculated by dividing tangible common equity by outstanding shares |
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For the Three Months Ended |
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March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
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Capital and Liquidity |
2026 |
2025 |
2025 |
2025 |
2025 |
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Common Equity Tier 1 Capital Ratio (a) |
11.77% |
12.02% |
11.62% |
11.56% |
11.44% |
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Total Risk Based Capital Ratio (a) |
14.72% |
15.46% |
15.08% |
15.04% |
14.87% |
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Tier 1 Risk Based Capital Ratio (a) |
12.27% |
12.51% |
12.10% |
12.05% |
11.92% |
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Tier 1 Leverage Ratio (a) |
8.92% |
8.92% |
8.75% |
8.67% |
8.52% |
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Equity to Asset Ratio |
10.69% |
9.26% |
8.90% |
8.45% |
8.32% |
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Tangible Common Equity Ratio (b) |
6.68% |
5.94% |
5.54% |
5.03% |
4.86% |
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Net Loans to Assets |
66.13% |
62.29% |
63.00% |
63.05% |
62.36% |
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Loans to Deposits |
81.06% |
76.10% |
75.85% |
75.14% |
72.55% |
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Asset Quality |
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Non-performing loans |
$59,854 |
$26,215 |
$35,344 |
$27,819 |
$20,724 |
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Non-performing assets |
59,977 |
26,370 |
35,519 |
28,052 |
20,902 |
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Loans 30 - 89 days delinquent |
14,700 |
16,947 |
16,083 |
17,727 |
11,192 |
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Charged-off loans |
729 |
5,192 |
869 |
748 |
698 |
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Recoveries |
285 |
295 |
333 |
176 |
362 |
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Net Charge-offs |
444 |
4,897 |
536 |
572 |
336 |
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Annualized Net Charge-offs to Average Net Loans |
0.05% |
0.59% |
0.07% |
0.07% |
0.04% |
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Allowance for Credit Losses to Total Loans |
1.14% |
1.11% |
1.18% |
1.17% |
1.09% |
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Non-performing Loans to Total Loans |
1.25% |
0.79% |
1.06% |
0.84% |
0.64% |
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Loans 30 - 89 Days Delinquent to Total Loans |
0.31% |
0.51% |
0.48% |
0.54% |
0.34% |
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Allowance to Non-performing Loans |
91.36% |
140.42% |
111.84% |
138.62% |
171.54% |
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Non-performing Assets to Total Assets |
0.84% |
0.50% |
0.68% |
0.54% |
0.41% |
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(a) September 30, 2025 ratio is estimated |
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(b) This is a non-GAAP financial measure. A reconciliation to GAAP is shown below |
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For the Three Months Ended |
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March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
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End of Period Loan Balances |
2026 |
2025 |
2025 |
2025 |
2025 |
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Commercial real estate |
$2,078,421 |
$1,398,116 |
$1,428,583 |
$1,385,162 |
$1,370,661 |
|
Commercial |
591,406 |
340,224 |
351,213 |
363,009 |
336,600 |
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Residential real estate |
1,219,766 |
850,300 |
850,112 |
849,443 |
846,639 |
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HELOC |
349,656 |
181,544 |
176,609 |
171,312 |
161,991 |
|
Consumer |
265,136 |
257,795 |
251,557 |
253,363 |
257,310 |
|
Agricultural loans |
284,014 |
265,565 |
269,025 |
270,599 |
267,737 |
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Total, excluding net deferred loan costs |
$4,788,399 |
$3,293,544 |
$3,327,099 |
$3,292,888 |
$3,240,938 |
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For the Three Months Ended |
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March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
|
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End of Period Customer Deposit Balances |
2026 |
2025 |
2025 |
2025 |
2025 |
|
Noninterest-bearing demand |
$1,334,021 |
$994,122 |
$994,604 |
$995,866 |
$979,142 |
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Interest-bearing demand |
1,698,780 |
1,377,520 |
1,443,422 |
1,388,596 |
1,468,424 |
|
Money market |
1,395,660 |
795,631 |
761,788 |
748,770 |
718,083 |
|
Savings |
576,089 |
408,743 |
410,165 |
416,795 |
416,162 |
|
Certificate of deposit |
916,835 |
766,762 |
790,536 |
771,403 |
739,512 |
|
Total customer deposits |
$5,921,385 |
$4,342,778 |
$4,400,515 |
$4,321,430 |
$4,321,323 |
|
Memo: Public funds included in above numbers |
$1,056,571 |
$773,896 |
$867,253 |
$801,561 |
$873,200 |
|
For the Three Months Ended |
|||||
|
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
|
|
Noninterest Income |
2026 |
2025 |
2025 |
2025 |
2025 |
|
Service charges on deposit accounts |
$1,966 |
$1,831 |
$1,874 |
$1,749 |
$1,758 |
|
Bank owned life insurance income, including death benefits |
1,492 |
891 |
852 |
832 |
810 |
|
Trust fees |
3,030 |
3,079 |
2,745 |
2,596 |
2,641 |
|
Insurance agency commissions |
1,683 |
1,567 |
1,395 |
1,828 |
1,741 |
|
Security gains (losses), including fair value changes for equity securities |
(18) |
(7) |
(927) |
36 |
(1,313) |
|
Retirement plan consulting fees |
886 |
1,009 |
1,060 |
783 |
798 |
|
Investment commissions |
871 |
706 |
658 |
721 |
529 |
|
Net gains on sale of loans |
380 |
436 |
559 |
329 |
326 |
|
Other mortgage banking fee income (loss), net |
477 |
106 |
192 |
27 |
147 |
|
Debit card and EFT fees |
2,023 |
1,956 |
2,068 |
2,017 |
1,866 |
|
Other noninterest income |
898 |
523 |
954 |
1,204 |
1,178 |
|
Total Noninterest Income |
$13,688 |
$12,097 |
$11,430 |
$12,122 |
$10,481 |
|
For the Three Months Ended |
|||||
|
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
|
|
Noninterest Expense |
2026 |
2025 |
2025 |
2025 |
2025 |
|
Salaries and employee benefits |
$18,511 |
$15,397 |
$15,992 |
$14,722 |
$16,166 |
|
Occupancy and equipment |
5,126 |
4,456 |
4,370 |
4,119 |
4,138 |
|
FDIC insurance and state and local taxes |
1,603 |
925 |
1,212 |
1,262 |
1,262 |
|
Professional fees |
1,112 |
1,179 |
990 |
1,026 |
1,196 |
|
System conversion / Merger related costs |
3,981 |
925 |
3,123 |
0 |
0 |
|
Advertising |
544 |
449 |
466 |
454 |
456 |
|
Intangible amortization |
865 |
711 |
718 |
735 |
735 |
|
Core processing charges |
1,750 |
1,391 |
1,412 |
1,401 |
1,397 |
|
Other noninterest expenses |
3,826 |
3,646 |
3,396 |
3,456 |
3,176 |
|
Total Noninterest Expense |
$37,318 |
$29,079 |
$31,679 |
$27,175 |
$28,526 |
|
Average Balance Sheets and Related Yields and Rates |
||||||
|
(Dollar Amounts in Thousands) |
||||||
|
Three Months Ended |
Three Months Ended |
|||||
|
March 31, 2026 |
March 31, 2025 |
|||||
|
AVERAGE |
YIELD/ |
AVERAGE |
YIELD/ |
|||
|
BALANCE |
INTEREST (1) |
RATE (1) |
BALANCE |
INTEREST (1) |
RATE (1) |
|
|
EARNING ASSETS |
||||||
|
Loans (2) |
$3,811,021 |
$55,214 |
5.80% |
$3,261,908 |
$46,810 |
5.74% |
|
Taxable securities |
1,177,183 |
7,773 |
2.64 |
1,135,580 |
7,096 |
2.50 |
|
Tax-exempt securities (2) |
403,587 |
3,415 |
3.38 |
377,078 |
2,990 |
3.17 |
|
Other investments |
51,720 |
761 |
5.89 |
44,170 |
541 |
4.90 |
|
Federal funds sold and other |
102,808 |
681 |
2.65 |
73,575 |
510 |
2.77 |
|
Total earning assets |
5,546,319 |
67,844 |
4.89 |
4,892,311 |
57,947 |
4.74 |
|
Nonearning assets |
315,777 |
226,456 |
||||
|
Total assets |
$5,862,096 |
$5,118,767 |
||||
|
INTEREST-BEARING LIABILITIES |
||||||
|
Time deposits |
$811,760 |
$6,629 |
3.27% |
$733,406 |
$6,632 |
3.62% |
|
Brokered time deposits |
0 |
0 |
0.00 |
143,393 |
1,538 |
4.29 |
|
Savings deposits |
1,490,444 |
6,507 |
1.75 |
1,115,259 |
4,012 |
1.44 |
|
Demand deposits - interest bearing |
1,447,299 |
7,304 |
2.02 |
1,377,522 |
7,535 |
2.19 |
|
Total interest-bearing deposits |
3,749,503 |
20,440 |
2.18 |
3,369,580 |
19,717 |
2.34 |
|
Short term borrowings |
333,056 |
3,135 |
3.77 |
218,444 |
2,417 |
4.43 |
|
Long term borrowings |
89,218 |
974 |
4.37 |
86,209 |
976 |
4.53 |
|
Total borrowed funds |
422,274 |
4,109 |
3.89 |
304,653 |
3,393 |
4.45 |
|
Total interest-bearing liabilities |
4,171,777 |
24,549 |
2.35 |
3,674,233 |
23,110 |
2.52 |
|
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
|
Demand deposits - noninterest bearing |
1,102,395 |
977,619 |
||||
|
Other liabilities |
24,876 |
52,894 |
||||
|
Stockholders' equity |
563,048 |
414,021 |
||||
|
TOTAL LIABILITIES AND |
||||||
|
STOCKHOLDERS' EQUITY |
$5,862,096 |
$5,118,767 |
||||
|
Net interest income and interest rate spread |
$43,295 |
2.54% |
$34,837 |
2.22% |
||
|
Net interest margin |
3.12% |
2.85% |
||||
|
(1) Interest and yields are calculated on a tax-equivalent basis where applicable. |
||||||
|
(2) For 2025, adjustments of $110,000 and $523,000, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2024, adjustments of $71,000 and $536,000, 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. |
||||||
|
Reconciliation of Total Assets to Tangible Assets |
For the Three Months Ended |
||||
|
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
|
|
2026 |
2025 |
2025 |
2025 |
2025 |
|
|
Total Assets |
$7,175,476 |
$5,245,870 |
$5,235,575 |
$5,178,428 |
$5,157,040 |
|
Less Goodwill and other intangibles |
308,463 |
185,301 |
186,013 |
186,731 |
187,466 |
|
Tangible Assets |
$6,867,013 |
$5,060,569 |
$5,049,562 |
$4,991,697 |
$4,969,574 |
|
Average Assets |
5,862,096 |
5,225,497 |
5,178,998 |
5,132,661 |
5,118,767 |
|
Less average Goodwill and other intangibles |
204,198 |
186,844 |
186,479 |
187,209 |
187,947 |
|
Average Tangible Assets |
$5,657,898 |
$5,038,653 |
$4,992,519 |
$4,945,452 |
$4,930,820 |
|
Reconciliation of Common Stockholders' Equity to Tangible Common Equity |
For the Three Months Ended |
||||
|
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
|
|
2026 |
2025 |
2025 |
2025 |
2025 |
|
|
Stockholders' Equity |
$766,890 |
$485,725 |
$465,949 |
$437,748 |
$429,134 |
|
Less Goodwill and other intangibles |
308,463 |
185,301 |
186,013 |
186,731 |
187,466 |
|
Tangible Common Equity |
$458,427 |
$300,424 |
$279,936 |
$251,017 |
$241,668 |
|
Average Stockholders' Equity |
563,048 |
481,061 |
442,556 |
425,249 |
414,021 |
|
Less average Goodwill and other intangibles |
204,198 |
186,844 |
186,479 |
187,209 |
187,947 |
|
Average Tangible Common Equity |
$358,850 |
$294,217 |
$256,077 |
$238,040 |
$226,074 |
|
Reconciliation of Net Income, Less Merger and Certain Items |
For the Three Months Ended |
||||
|
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
|
|
2026 |
2025 |
2025 |
2025 |
2025 |
|
|
Net income |
$16,264 |
$14,638 |
$12,461 |
$13,910 |
$13,578 |
|
System conversion / Acquisition related costs - after tax |
3,730 |
398 |
2,467 |
0 |
0 |
|
Net loss (gain) on asset/security sales - after tax |
22 |
113 |
760 |
(137) |
1,056 |
|
Net income - Adjusted |
$20,016 |
$15,149 |
$15,688 |
$13,773 |
$14,634 |
|
Diluted EPS excluding merger and certain items |
$0.45 |
$0.40 |
$0.42 |
$0.37 |
$0.39 |
|
Return on Average Assets excluding system conversion, merger and certain items (Annualized) |
1.37% |
1.16% |
1.21% |
1.07% |
1.14% |
|
Return on Average Equity excluding system conversion, merger and certain items (Annualized) |
14.22% |
12.60% |
14.18% |
12.96% |
14.14% |
|
Return on Average Tangible Equity excluding system conversion, merger costs and certain items (Annualized) |
22.31% |
20.60% |
24.51% |
23.14% |
25.89% |
|
Efficiency ratio excluding certain items |
For the Three Months Ended |
||||
|
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
|
|
2026 |
2025 |
2025 |
2025 |
2025 |
|
|
Net interest income, tax equated |
$43,295 |
$37,653 |
$36,940 |
$35,554 |
$34,837 |
|
Noninterest income |
13,688 |
12,097 |
11,430 |
12,122 |
10,481 |
|
Net loss (gain) on asset/security sales |
28 |
143 |
962 |
(173) |
1,337 |
|
Net interest income and noninterest income adjusted |
57,011 |
49,893 |
49,332 |
47,503 |
46,655 |
|
Noninterest expense less intangible amortization |
36,453 |
28,368 |
30,961 |
26,440 |
27,791 |
|
System conversion / Acquisition related costs |
3,981 |
925 |
3,123 |
0 |
0 |
|
Noninterest expense adjusted |
32,472 |
27,443 |
27,838 |
26,440 |
27,791 |
|
Efficiency ratio excluding certain items |
56.96% |
55.00% |
56.43% |
55.66% |
59.57% |
|
Net interest margin excluding acquisition marks and PPP interest and fees |
For the Three Months Ended |
||||
|
March 31, |
Dec. 31, |
Sept. 30, |
June 30, |
March 31, |
|
|
2026 |
2025 |
2025 |
2025 |
2025 |
|
|
Net interest income, tax equated |
$ 43,295 |
$ 37,653 |
$ 36,940 |
$ 35,554 |
$ 34,837 |
|
Acquisition marks |
1,817 |
1,894 |
1,677 |
1,731 |
2,151 |
|
PPP interest and fees |
0 |
0 |
0 |
0 |
0 |
|
Adjusted and annualized net interest income |
165,912 |
143,036 |
141,052 |
135,292 |
130,744 |
|
Average earning assets |
5,546,319 |
4,937,016 |
4,922,275 |
4,886,771 |
4,892,311 |
|
Less PPP average balances |
69 |
87 |
89 |
95 |
105 |
|
Adjusted average earning assets |
5,546,250 |
4,936,929 |
4,922,186 |
4,886,676 |
4,892,206 |
|
Net interest margin excluding marks and PPP interest and fees |
2.99% |
2.90% |
2.87% |
2.77% |
2.67% |
Exhibit 99.2
