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Farmers National Banc Corp. Announces Strong Results for First Quarter of 2024
Kevin J. Helmick, President and CEO, stated, "I am encouraged by the solid start to 2024 as we focus on leveraging the investments we made over the past year, pursuing actions to strategically improve our balance sheet, and maintaining the Company's longstanding commitment to strong asset quality. While we expect the economic and interest rate environment to remain fluid in 2024, we believe we are well positioned to help our local communities build a better future by continuing to provide our customers with leading financial services."
Balance Sheet
Total assets were $5.08 billion at March 31, 2024, unchanged from December 31, 2023. Loans decreased slightly to $3.18 billion at March 31, 2024 compared to $3.20 billion at December 31, 2023. The Company anticipates loan growth of 1 - 2%, in 2024 reflecting a more challenging economic and interest rate environment, as well as the Company's focus on maintaining excellent asset quality.
The Company had securities available for sale of $1.27 billion at March 31, 2024, compared to $1.30 billion at December 31, 2023. Gross unrealized losses on the portfolio totaled $234.2 million at March 31, 2024, compared to gross unrealized losses of $217.1 million at December 31, 2023. The Company also completed a security restructure during the quarter, which involved selling approximately $44.3 million of securities and reinvesting the proceeds into securities with yields 200 basis points higher than those sold. The earn back on the $2.1 million loss that was incurred on the sale is approximately 2.5 years. The Company expects bond market volatility to continue in 2024 and anticipates that it will continue to allow the size of the securities portfolio to shrink via runoff to optimize profitability and provide liquidity.
Total deposits increased to $4.20 billion at March 31, 2024, compared to $4.18 billion at December 31, 2023. Noninterest bearing deposits declined $49.2 million during the first quarter of 2024 even as interest bearing deposits increased $69.9 million. Customers continue to seek higher rates on their deposit balances but the pace of activity has slowed somewhat.
Total stockholders' equity was $397.0 million at March 31, 2024 compared to $404.4 million at December 31, 2023. The decline was driven by an increase in the unrealized losses on investment securities of $12.4 million offset by earnings net of dividend payments to shareholders.
Credit Quality
The Company's non-performing loans dropped to $12.0 million at March 31, 2024, from $15.1 million at December 31, 2023. Non-performing loans to total loans was 0.38% at March 31, 2024, compared to 0.47% at December 31, 2023. Non-performing assets to total assets were 0.24% at March 31, 2024, compared to 0.30% at December 31, 2023. The Company's loans which were 30-89 days delinquent were $14.1 million at March 31, 2024, or 0.44% of total loans.
The provision for credit losses and unfunded commitments was a recovery of $449,000 in the first quarter of 2024 compared to provision expense for credit losses and unfunded commitments of $8.6 million for the first quarter of 2023. On January 1, 2023, the Company completed its acquisition of Emclaire Financial Corp. As a result of this acquisition, the Company incurred a day one provision expense for credit losses and unfunded commitments of $7.7 million. The recovery of provision expense in the first quarter of 2024 was due to shrinkage in the loan portfolio and continued improvements in the Company's credit metrics. Annualized net charge-offs as a percentage of average loans were 0.13% for the three months ended March 31, 2024, compared to 0.03% for the three months ended March 31, 2023. The allowance for credit losses to total loans was 1.04% at March 31, 2024, compared to 1.08% at December 31, 2023.
Net Interest Income
The Company's net interest income for the three months ended March 31, 2024, totaled $31.7 million compared to $36.6 million in the first quarter of 2023. Average earning assets have declined $69.3 million when comparing the first quarter of 2024 to the first quarter of 2023 due to the runoff in investment securities exceeding the growth in loan balances. In addition, the net interest margin has declined from 3.07% in the first quarter of 2023 to 2.70% in the first quarter of 2024. The decline in net interest margin between the first quarter of 2024 and the first quarter of 2023 was due to increased funding costs outstripping the increase in yields on earning assets. This increase in funding costs has been due to the rapid increase in deposit rates due to intense competition for deposits, the Federal Reserve's rate hiking cycle, and runoff of deposit balances which are being replaced with more costly wholesale funding.
Noninterest Income
The Company reported noninterest income of $8.4 million during the first quarter of 2024 compared to $10.4 million for the first quarter of 2023. This decrease is primarily due to the Company completing the securities restructure in the first quarter of 2024, which resulted in a $2.1 million loss on the sale of the securities. In the first quarter of 2023, the Company recognized $121,000 in securities gains.
Service charges on deposit accounts were $1.6 million for the first quarter of 2024 compared to $1.4 million for the same period in 2023 due to increased activity. Bank owned life insurance income increased to $707,000 in the first quarter from $547,000 in the first quarter of 2023. A death benefit of $83,000 in 2024 and higher earnings credit on the policies drove the increase. Trust fees increased by $206,000 in the first quarter of 2024 compared to the same period in 2023 due to continued strong growth in this line of business. Likewise, insurance commissions, retirement consulting fees and investment commissions all exhibited solid growth in the first quarter of 2024 compared to the first quarter of 2023. Debit card income declined $222,000 to $1.6 million in the first quarter of 2024 compared to $1.8 million for the first quarter of 2023 reflecting a year-over-year decline in average customer spend per transaction. Other noninterest income declined to $1.1 million for the first three months of 2024 compared to $1.3 million for the first three months of 2023 as the Company received less SBIC income from its investments in 2024 compared to 2023.
Noninterest Expense
Noninterest expense was $27.0 million for the first three months of 2024 compared to $30.7 million for the first three months of 2023. This decrease was primarily driven by the Company recording $4.3 million in merger related charges in 2023. There were no merger related charges recorded in 2024. Salaries and employee benefits were $15.1 million in the first quarter of 2024 compared to $14.6 million in the first quarter of 2023. The increase was primarily driven by higher salaries associated with employee raises. Occupancy and equipment expense decreased by $139,000 in the first quarter of 2024 compared to the first quarter of 2023 primarily due to several branch closures. FDIC and state and local taxes increased $123,000 to $1.3 million for the first three months of 2024 compared to $1.2 million for the first three months of 2023 due to an increase in the FDIC assessment rate. Professional fees increased $140,000 for the three months ended March 31, 2024, compared to the first quarter of 2023 primarily due to increased legal fees. Intangible amortization declined $220,000 in the first three months of 2024 to $688,000 compared to $909,000 for the first three months of 2023 primarily due to the amortization from a prior acquisition running off. Other noninterest expense increased $309,000 in the first quarter of 2024 compared to the first quarter of 2023.
Liquidity
At March 31, 2024, the Company's loan to deposit ratio was 75.8% and the Company's average deposit balance per account (excluding collateralized deposits) was $22,748. The Company has access to an additional $739.9 million of FHLB borrowing capacity at March 31, 2024, along with $274.6 million of available for sale securities that are not pledged.
About Farmers National Banc Corp.
Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $5.1 billion in banking assets. Farmers National Banc Corp.'s wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 62 banking locations in Mahoning, Trumbull, Columbiana, Portage, Stark, Wayne, Medina, Geauga and Cuyahoga Counties in Ohio and Beaver, Butler, Allegheny, Jefferson, Clarion, Venango, Clearfield, Mercer, Elk and Crawford Counties in Pennsylvania, and Farmers Trust Company, which operates five trust offices and offers services in the same geographic markets. Total wealth management assets under care at March 31, 2024 are $3.8 billion. Farmers National Insurance, LLC, a wholly-owned subsidiary of The Farmers National Bank of Canfield, offers a variety of insurance products.
Non-GAAP Disclosure
This press release includes disclosures of Farmers' tangible common equity ratio, return on average tangible assets, return on average tangible equity, net income excluding costs related to acquisition activities and certain items, return on average assets excluding merger costs and certain items, return on average equity excluding merger costs and certain items, net interest margin excluding acquisition marks and related accretion and PPP interest and fees and efficiency ratio less certain items, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers' marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures to their GAAP equivalents are included in the tables following Consolidated Financial Highlights below.
Cautionary Statements Regarding Forward-Looking Statements
We make statements in this news release and our related investor conference call, and we may from time to time make other statements, that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Farmers' financial condition, results of operations, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management's current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Farmers' control. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions, as well as any statements related to future expectations of performance or conditional verbs, such as "will," "would," "should," "could" or "may." Farmers' actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Farmers' actual results to differ materially from those described in certain forward-looking statements include significant changes in near-term local, regional, and U.S. economic conditions including those resulting from continued high rates of inflation, tightening monetary policy of the Board of Governors of the Federal Reserve, and possibility of a recession; and the other factors contained in Farmers' Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and available on Farmers' website (www.farmersbankgroup.com) and on the SEC's website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management's views as of any subsequent date. Farmers does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
Farmers National Banc Corp. and Subsidiaries
Consolidated Financial Highlights
(Amounts in thousands, except per share results) Unaudited
---------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Consolidated Statements of Income For the Three Months Ended
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2024 2023 2023 2023 2023
---------------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Total interest income $ 55,054 $ 55,069 $ 54,229 $ 52,804 $ 51,233
Total interest expense 23,367 22,239 20,461 18,226 14,623
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Net interest income 31,687 32,830 33,768 34,578 36,610
Provision (credit) for credit losses (449 ) 286 243 25 8,599
Noninterest income 8,357 12,156 9,831 9,449 10,425
Acquisition related costs 0 452 268 442 4,313
Other expense 27,039 26,520 27,448 25,944 26,409
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Income before income taxes 13,454 17,728 15,640 17,616 7,714
Income taxes 2,214 3,151 2,326 2,650 639
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Net income $ 11,240 $ 14,577 $ 13,314 $ 14,966 $ 7,075
==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ====================
Average diluted shares outstanding 37,479 37,426 37,379 37,320 37,933
Basic earnings per share 0.30 0.39 0.36 0.40 0.19
Diluted earnings per share 0.30 0.39 0.36 0.40 0.19
Cash dividends per share 0.17 0.17 0.17 0.17 0.17
Performance Ratios
Net Interest Margin (Annualized) 2.70 % 2.78 % 2.86 % 2.92 % 3.07 %
Efficiency Ratio (Tax equivalent basis) 61.54 % 57.84 % 60.11 % 56.28 % 62.53 %
Return on Average Assets (Annualized) 0.90 % 1.17 % 1.06 % 1.18 % 0.56 %
Return on Average Equity (Annualized) 11.47 % 17.98 % 14.49 % 16.12 % 7.71 %
Dividends to Net Income 56.65 % 43.68 % 47.82 % 42.54 % 90.50 %
Other Performance Ratios (Non-GAAP)
Return on Average Tangible Assets 0.93 % 1.22 % 1.09 % 1.23 % 0.58 %
Return on Average Tangible Equity 21.88 % 43.77 % 30.29 % 33.55 % 16.31 %
Consolidated Statements of Financial Condition March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2024 2023 2023 2023 2023
---------------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Assets
Cash and cash equivalents $ 148,630 $ 103,658 $ 93,923 $ 116,063 $ 128,001
Debt securities available for sale 1,270,149 1,299,701 1,210,736 1,316,878 1,355,449
Other investments 34,619 35,311 35,342 44,975 39,670
Loans held for sale 1,854 3,711 1,910 2,197 1,703
Loans 3,181,318 3,198,127 3,168,554 3,155,200 3,152,339
Less allowance for credit losses 33,159 34,440 34,753 34,957 36,011
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Net Loans 3,148,159 3,163,687 3,133,801 3,120,243 3,116,328
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Other assets 476,599 472,282 495,451 473,098 468,735
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Total Assets $ 5,080,010 $ 5,078,350 $ 4,971,163 $ 5,073,454 $ 5,109,886
==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ====================
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing $ 977,475 $ 1,026,630 $ 1,039,524 $ 1,084,232 $ 1,106,870
Interest-bearing 3,220,650 3,150,756 3,217,869 3,165,381 3,207,121
Brokered time deposits 0 0 254,257 21,135 82,169
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Total deposits 4,198,125 4,177,386 4,511,650 4,270,748 4,396,160
Other interest-bearing liabilities 433,777 443,663 88,550 388,437 292,324
Other liabilities 51,082 52,886 54,981 47,278 46,760
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Total liabilities 4,682,984 4,673,935 4,655,181 4,706,463 4,735,244
Stockholders' Equity 397,026 404,415 315,982 366,991 374,642
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Total Liabilities
and Stockholders' Equity $ 5,080,010 $ 5,078,350 $ 4,971,163 $ 5,073,454 $ 5,109,886
==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ====================
Period-end shares outstanding 37,546 37,503 37,489 37,457 37,439
Book value per share $ 10.57 $ 10.78 $ 8.43 $ 9.80 $ 10.01
Tangible book value per share (Non-GAAP)* 5.52 5.71 3.33 4.67 4.84
* Tangible book value per share is calculated by dividing tangible common equity by outstanding shares
For the Three Months Ended For the Three Months Ended
---------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, March 31, Dec. 31, Sept. 30, June 30, March 31,
Capital and Liquidity 2024 2023 2023 2023 2023
------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Common Equity Tier 1 Capital Ratio (a) 10.88 % 10.61 % 10.37 % 10.25 % 10.04 %
Total Risk Based Capital Ratio (a) 14.33 % 14.06 % 13.83 % 13.76 % 13.60 %
Tier 1 Risk Based Capital Ratio (a) 11.38 % 11.10 % 10.86 % 10.74 % 10.54 %
Tier 1 Leverage Ratio (a) 8.19 % 8.02 % 7.84 % 7.68 % 7.43 %
Equity to Asset Ratio 7.82 % 7.96 % 6.36 % 7.23 % 7.33 %
Tangible Common Equity Ratio (b) 4.24 % 4.38 % 2.61 % 3.58 % 3.69 %
Net Loans to Assets 61.97 % 62.30 % 63.04 % 61.50 % 60.99 %
Loans to Deposits 75.78 % 76.56 % 70.23 % 73.88 % 71.71 %
Asset Quality
Non-performing loans $ 11,951 $ 15,063 $ 18,368 $ 17,956 $ 17,959
Non-performing assets 12,215 15,321 18,522 18,167 18,053
Loans 30 - 89 days delinquent 14,069 16,705 13,314 12,321 10,219
Charged-off loans 1,282 972 525 971 469
Recoveries 271 172 139 172 198
Net Charge-offs 1,011 800 386 799 271
Annualized Net Charge-offs to Average Net Loans 0.13 % 0.10 % 0.05 % 0.10 % 0.03 %
Allowance for Credit Losses to Total Loans 1.04 % 1.08 % 1.10 % 1.11 % 1.14 %
Non-performing Loans to Total Loans 0.38 % 0.47 % 0.58 % 0.57 % 0.57 %
Loans 30 - 89 Days Delinquent to Total Loans 0.44 % 0.52 % 0.42 % 0.39 % 0.32 %
Allowance to Non-performing Loans 277.46 % 228.64 % 189.20 % 194.68 % 200.52 %
Non-performing Assets to Total Assets 0.24 % 0.30 % 0.37 % 0.36 % 0.35 %
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
(a) March 31, 2024 ratio is estimated
(b) This is a non-GAAP financial measure. A reconciliation to GAAP is shown below
For the Three Months Ended For the Three Months Ended
March 31, March 31, Dec. 31, Sept. 30, June 30, March 31,
End of Period Loan Balances 2024 2023 2023 2023 2023
------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Commercial real estate $ 1,339,372 $ 1,335,806 $ 1,295,847 $ 1,284,974 $ 1,286,830
Commercial 335,747 346,354 357,691 362,664 361,845
HELOC 143,696 142,441 140,772 138,535 137,319
Consumer 256,846 259,784 261,136 260,326 260,596
Agricultural loans 260,425 261,288 261,738 250,807 244,938
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Total, excluding net deferred loan costs $ 3,172,338 $ 3,189,370 $ 3,159,913 $ 3,146,839 $ 3,144,602
==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ====================
For the Three Months Ended For the Three Months Ended
March 31, March 31, Dec. 31, Sept. 30, June 30, March 31,
End of Period Customer Deposit Balances 2024 2023 2023 2023 2023
------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Noninterest-bearing demand $ 977,474 $ 1,026,630 $ 1,039,524 $ 1,084,232 $ 1,106,870
Interest-bearing demand 1,381,383 1,362,609 1,426,349 1,383,326 1,473,001
Money market 646,308 593,975 588,043 610,051 599,037
Savings 452,949 468,890 488,991 511,642 535,321
Certificate of deposit 740,011 725,282 714,486 660,362 599,762
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Total customer deposits $ 4,198,125 $ 4,177,386 $ 4,257,393 $ 4,249,613 $ 4,313,991
==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ====================
For the Three Months Ended For the Three Months Ended
--------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, March 31, Dec. 31, Sept. 30, June 30, March 31,
Noninterest Income 2024 2023 2023 2023 2023
------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Service charges on deposit accounts $ 1,583 $ 1,677 $ 1,712 $ 1,501 $ 1,432
Bank owned life insurance income, including death benefits 707 617 694 584 547
Trust fees 2,793 2,656 2,617 2,248 2,587
Insurance agency commissions 1,528 1,540 1,116 1,332 1,456
Security gains (losses), including fair value changes for equity securities (2,120 ) 19 (624 ) 13 121
Retirement plan consulting fees 334 357 360 382 307
Investment commissions 432 589 520 476 393
Net gains on sale of loans 297 1,280 395 406 310
Other mortgage banking fee income (loss), net 125 139 185 234 153
Debit card and EFT fees 1,567 1,697 1,763 1,810 1,789
Other noninterest income 1,111 1,585 1,093 463 1,330
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Total Noninterest Income $ 8,357 $ 12,156 $ 9,831 $ 9,449 $ 10,425
==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ====================
For the Three Months Ended For the Three Months Ended
--------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, March 31, Dec. 31, Sept. 30, June 30, March 31,
Noninterest Expense 2024 2023 2023 2023 2023
------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Salaries and employee benefits $ 15,069 $ 14,871 $ 14,233 $ 13,625 $ 14,645
Occupancy and equipment 3,730 3,896 3,810 3,859 3,869
FDIC insurance and state and local taxes 1,345 1,484 1,648 1,494 1,222
Professional fees 1,254 1,004 1,043 1,190 1,114
Merger related costs 0 452 268 442 4,313
Advertising 431 414 492 478 409
Intangible amortization 688 578 725 1,222 909
Core processing charges 1,135 1,057 1,274 1,144 1,164
Other noninterest expenses 3,387 3,216 4,223 2,932 3,077
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Total Noninterest Expense $ 27,039 $ 26,972 $ 27,716 $ 26,386 $ 30,722
==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ====================
Average Balance Sheets and Related Yields and Rates
(Dollar Amounts in Thousands)
Three Months Ended Three Months Ended Three Months Ended
March 31, 2024 March 31, 2024 March 31, 2023
-------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
AVERAGE AVERAGE YIELD/ YIELD/ AVERAGE YIELD/ YIELD/
BALANCE BALANCE INTEREST (1) RATE (1) BALANCE INTEREST (1) RATE (1)
EARNING ASSETS
Loans (2) $ 3,181,337 $ 45,096 5.67 % $ 3,136,494 $ 40,942 5.22 %
Taxable securities 1,101,347 6,415 2.33 1,171,596 6,550 2.24
Tax-exempt securities (2) 408,075 3,208 3.14 438,614 3,519 3.21
Other investments 34,406 362 4.21 36,564 376 4.11
Federal funds sold and other 71,757 626 3.49 82,995 610 2.94
-------------------- ---------- -------------------- ---------- -------------------- ---------- -------------------- ----------
Total earning assets 4,796,922 55,707 4.65 4,866,263 51,997 4.27
Nonearning assets 227,044 218,746
-------------------- ---------- ------------------------------ ------------------------------ -------------------- ----------
Total assets $ 5,023,966 $ $ $ 5,085,009
==================== ========== ============================== ============================== ==================== ==========
INTEREST-BEARING LIABILITIES
Time deposits $ 736,932 $ 7,048 3.83 % $ 590,412 $ 3,339 2.26 %
Brokered time deposits 0 0 0.00 231,040 2,321 4.02
Savings deposits 1,084,579 3,598 1.33 1,153,588 1,954 0.68
Demand deposits - interest bearing 1,345,311 7,743 2.30 1,417,955 5,093 1.44
-------------------- ---------- -------------------- ---------- -------------------- ---------- -------------------- ----------
Total interest-bearing deposits 3,166,822 18,389 2.32 3,392,995 12,707 1.50
Short term borrowings 324,791 3,939 4.85 80,589 921 4.57
Long term borrowings 88,721 1,038 4.68 88,269 995 4.51
-------------------- ---------- -------------------- ---------- -------------------- ---------- -------------------- ----------
Total borrowed funds 413,512 4,977 4.81 168,858 1,916 4.54
-------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------
Total interest-bearing liabilities 3,580,334 23,366 2.61 3,561,853 14,623 1.64
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits - noninterest bearing 995,168 1,107,422
Other liabilities 52,915 48,883
Stockholders' equity 395,549 366,851
-------------------- ---------- ------------------------------ ------------------------------ -------------------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,023,966 $ $ $ 5,085,009
==================== ========== ------------------------------ ============================== ==================== ==========
Net interest income and interest rate spread $ $ 32,341 2.04 % $ $ 37,374 2.63 %
============================== ==================== ========== ========== ==================== ============================== ==================== ========== ========== ====================
Net interest margin 2.70 2.70 2.70 % 3.07 3.07 3.07 %
============================== ============================== ========== ==================== ============================== ============================== ========== ====================
(1) Interest and yields are calculated on a tax-equivalent basis where applicable.
Reconciliation of Total Assets to Tangible Assets
For the Three Months Ended For the Three Months Ended
-------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2024 2023 2023 2023 2023
-------------------------------------------------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Total Assets $ 5,080,010 $ 5,078,350 $ 4,971,163 $ 5,073,454 $ 5,109,886
Less Goodwill and other intangibles 189,599 190,288 191,326 192,052 193,273
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Tangible Assets $ 4,890,411 $ 4,888,062 $ 4,779,837 $ 4,881,402 $ 4,916,613
==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ====================
Average Assets 5,023,966 4,980,314 5,058,969 5,070,444 5,085,009
Less average Goodwill and other intangibles 190,040 191,108 191,804 192,972 193,368
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Average Tangible Assets $ 4,833,926 $ 4,789,206 $ 4,867,165 $ 4,877,472 $ 4,891,641
==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ====================
Reconciliation of Common Stockholders' Equity to Tangible Common Equity
For the Three Months Ended For the Three Months Ended
-------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
March 31, March 31, Dec. 31, Sept. 30, June 30, March 31,
2024 2024 2023 2023 2023 2023
-------------------------------------------------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------
Stockholders' Equity $ 397,026 $ 404,415 $ 315,982 $ 366,991 $ 374,642
Less Goodwill and other intangibles 189,599 190,288 191,326 192,052 193,273
-------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- --------- --------------------
Tangible Common Equity $ 207,427 $ 214,127 $ 124,656 $ 174,939 $ 181,369
==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ==================== ==================== ========= ====================
Average Stockholders' Equity 395,549 324,332 367,600 371,421 366,8