8-K
Farmers National Banc Corp /Oh/ (FMNB)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
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 27, 2022
Farmers National Banc Corp.
(Exact name of registrant as specified in its charter)
| Ohio | 001-35296 | 34-1371693 |
|---|---|---|
| (State or other jurisdiction<br> <br>of incorporation) | (Commission<br> <br>File Number) | (IRS Employer<br> <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)
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:
| Title of each class | Trading<br> <br>Symbol | Name of each exchange<br> <br>on 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. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On January 27, 2022, 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.
| Item 9.01 | Financial Statements and Exhibits. |
|---|---|
| (d) | Exhibits. |
| --- | --- |
| Exhibit<br>Number | Description |
| --- | --- |
| 99.1 | Press Release, dated January 27, 2022 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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. | |
|---|---|
| By: | /s/ Kevin J. Helmick |
| Kevin J. Helmick | |
| President and Chief Executive Officer |
Date: January 27, 2022
EX-99.1
Exhibit 99.1
January 27, 2022
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
RECORD 2021 RESULTS
| • | Earnings per diluted share of $0.18 ($0.50 excluding one-time items, non-GAAP) for 4^th^ quarter of 2021 |
|---|---|
| • | Completed the acquisition of Cortland Bancorp |
| --- | --- |
| • | Issued $75.0 million of subordinated debt at a rate of 3.125% |
| --- | --- |
| • | 156 consecutive quarters of profitability |
| --- | --- |
| • | Efficiency ratio, (excluding one-time items, non-GAAP), of 47.4% for the fourth quarter of 2021 |
| --- | --- |
| • | Allowance for credit losses ratio of 1.26% at December 31, 2021 |
| --- | --- |
| • | Return on average assets, (excluding one-time items, non-GAAP), was 1.65% for the fourth quarter of 2021 |
| --- | --- |
| • | ROAE and ROATE, (excluding one-time items, non-GAAP), 14.8% and 18.5%, respectively, for fourth quarter of 2021 |
| --- | --- |
CANFIELD, Ohio (January 27, 2022) – Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today announced financial results for the three and twelve months ended December 31, 2021.
On a GAAP basis, net income for the fourth quarter of 2021 was $5.7 million, or $0.18 per diluted share, compared to $11.4 million, or $0.40 per diluted share, for the three months ended December 31, 2020. The results for the quarter included pretax items for acquisition related provision for credit loss expense of $4.9 million, $6.5 million for acquisition costs, $1.8 million for a prepayment penalty on an FHLB advance, security gains of $25,000, a loss of $195,000 on the sale of assets, and a one-time gain of $239,000 for the sale of Farmers’ credit card portfolio. Excluding these items (non-GAAP), core net income for the quarter ended December 31, 2021, would have been $16.2 million, or $0.50 per diluted share.
Net income for the twelve months ended December 31, 2021, totaled $51.8 million, or $1.77 per diluted share, compared to $41.9 million, or $1.47 per diluted share for the twelve months ended December 31, 2020. Results for the year ended December 31, 2021, included pre-tax items for acquisition related provision for credit loss expense of $4.9 million, acquisition costs of $7.1 million, prepayment penalties on FHLB advances of $2.1 million, security gains of $1.0 million, a loss of $247,000 on the sale of assets, and the one-time gain of $239,000 on the sale of the credit card portfolio. Net income for the twelve months ended December 31, 2021, excluding these items (non-GAAP), was $62.3 million, or $2.13 per share.
On November 1, 2021, Farmers and Cortland Bancorp (“Cortland”) completed the previously announced merger of Cortland into Farmers in a cash and stock transaction. Under the terms of the merger agreement, shareholders of Cortland were able to elect to receive either $28.00 per share in cash or 1.75 shares of Farmers’ common stock, subject to an overall limitation of 75% of the Cortland shares being exchanged for Farmers shares and 25% for cash. The merger combines two complementary banking institutions with similar culture and operating philosophies, and will further solidify Farmers’ market share in Trumbull and Mahoning counties while expanding Farmers’ presence in the greater Cleveland market. In February 2022, the systems integration of Farmers and Cortland will be completed, bringing the combined 48 branches together under one name.
At the closing of the merger, Farmers issued 5.6 million shares of its common stock along with cash of $29.6 million, which represented a transaction value of approximately $128.5 million based on its closing stock price of $17.82 on October 31, 2021. The transaction value has been allocated to assets acquired and liabilities assumed, including $482.2 million in loans and loans held for sale, $305.2 million in other tangible assets, $695.3 million in deposits, $17.9 million in other liabilities and $54.4 million in goodwill and other intangible assets. Prior to closing, Cortland incurred $3.3 million of merger-related costs. The year-over-year comparison of Farmers results is impacted by the Cortland merger, with 2021 including two months of combined operations from Cortland compared to none in the prior year.
Kevin J. Helmick, President and CEO, stated, “The last two years have brought unbelievable challenges to the world and our industry. Through it all, the Farmers team has continued to deliver record earnings and superior returns while catering to the needs of the communities we serve. I am extremely proud of our staff for all of their hard work. With the closing of the Cortland acquisition, I look forward to the possibilities in 2022.”
Balance Sheet
Total assets at December 31, 2021, grew to $4.14 billion compared to $3.32 billion at September 30, 2021 and $3.07 billion at December 31, 2020. The acquisition of Cortland added $841.7 million in assets to the balance sheet. Gross loans (excluding loans held for sale) were $2.33 billion at December 31, 2021, compared to $1.89 billion at September 30, 2021 and $2.08 billion at December 31, 2020. Gross loan growth for the quarter totaled $436.9 million and included $470.6 million in gross loans associated with the acquisition of Cortland (excluding Cortland’s PPP loans) offset by a decline in PPP loan balances of $26.3 million (inclusive of Cortland’s PPP loans) and a decline in other loan balances of $7.4 million which includes the sale of the Company’s credit card portfolio. The credit card portfolio had a balance of $3.0 million at the time of sale. At December 31, 2021, the Company has $37.5 million of PPP loans before deferred fees still to be forgiven and $1.3 million in net deferred fees associated with these loans still to be recognized into income.
Available for sale securities increased to $1.43 billion at December 31, 2021, an increase of $852.1 million from December 31, 2020. During 2021, the Company continued to deploy excess cash balances into securities. The Cortland acquisition in the fourth quarter was responsible for $130.6 million of the growth in the portfolio.
Total deposits at December 31, 2021, were $3.55 billion compared to $2.87 billion at September 30, 2021, and $2.61 billion at December 31, 2020. The growth, year over year, was due to $695.3 million in deposits obtained in the acquisition of Cortland and $241.1 million of organic growth, or 9.2% organically. After adjusting for Cortland in the fourth quarter, deposits shrank $14.5 million for the quarter.
Total stockholders’ equity increased to $472.4 million at December 31, 2021, compared to $377.5 million at September 30, 2021 and $350.1 million at December 31, 2020. The increase in stockholders’ equity was due to the Cortland acquisition and the Company’s earnings offset by dividends paid to common shareholders and changes in other comprehensive income.
Credit Quality
Non-performing loans to loans declined to 0.69% at December 31, 2021, compared to 0.78% at September 30, 2021. Early stage delinquencies, defined as 30-89 days past due, were $8.9 million, or 0.38% of total loans, at December 31, 2021, compared to $6.9 million, or 0.37% of total loans, for the prior quarter.
On January 1, 2021, Farmers adopted the Current Expected Credit Loss (“CECL”) model of accounting for credit losses. At adoption, Farmers recorded a $2.16 million increase to its allowance for loan losses and a $0.29 million increase to its reserve for off-balance sheet commitments for a combined $2.45 million, of which $1.94 million was recorded as a reduction to retained earnings with the remainder to deferred taxes. In connection with the Cortland acquisition, on November 1, 2021, Farmers recorded a $6.16 million increase to its allowance for loan losses, which was comprised of $4.87 million required to be recorded as a provision for credit losses related to non-purchased credit deteriorated loans and $1.29 million required to be recorded as a reduction of loan balances for purchased credit deteriorated loans.
Excluding the merger impact noted above, the fourth quarter 2021 results include net charge-offs of $313,000 and a provision for credit loss of $691,000 compared to net charge-offs of $197,000 and a provision expense of $3.0 million for the same period in 2020. As an overall percentage of loans, the allowance for credit losses increased to 1.26% at December 31, 2021, compared to 1.22% for the quarter ended September 30, 2021. Excluding the PPP loans, this allowance for credit losses to gross loans ratio increases to 1.28% (non-GAAP) as of December 31, 2021. Total net charge-offs as a percentage of average net loans outstanding was 6 basis points for the quarter ended December 31, 2021, compared to 4 basis points for the fourth quarter of 2020.
Net interest income
Net interest income was $29.7 million for the fourth quarter of 2021 compared to $25.8 million for the fourth quarter of 2020. The increase was due to growth in average interest earning assets, including the acquisition of Cortland, offset by a decline in net interest margin of 36 basis points. The net interest margin was 3.33% for the current quarter which is down from the 3.47% net interest margin reported in the third quarter of 2021 and lower than the 3.69% net interest margin reported in the fourth quarter of 2020. The decline in net interest margin in the fourth quarter of 2021 compared to the third quarter of 2021 was driven by the acquisition of Cortland and the issuance of subordinated debt, the proceeds of which were used to purchase securities. Excluding the impact of acquisition marks and related accretion and PPP interest and fees (non-GAAP), the net interest margin for the fourth quarter of 2021 was 3.21% compared to 3.37% for the third quarter of 2021 and 3.51% for the fourth quarter of 2020.
Noninterest income
Noninterest income declined to $9.5 million for the quarter ended December 31, 2021 compared to $10.5 million for the fourth quarter in 2020. Net gains on the sale of loans decreased to $1.7 million for the fourth quarter of 2021 compared to $3.6 million in the fourth quarter of 2020 due to lower origination volumes and tighter margins. In addition, security gains and other noninterest income were lower by $154,000 and $251,000, respectively, in the fourth quarter of 2021 compared to the same period in 2020. These declines have been partially offset by increases to service charges on deposit of $208,000, a 22.4% increase, trust fees of $559,000, a 28.7% increase, investment commissions of $161,000, a 35.8% increase, and an increase in bank owned life insurance (BOLI) income of $227,000 from the purchase of additional insurance in December 2020 and the addition of Cortland’s BOLI.
Noninterest expense
Total noninterest expense for the fourth quarter of 2021 increased to $27.7 million compared to $19.6 million in the fourth quarter of 2020. Excluding merger related costs and a $1.8 million prepayment penalty for the payoff of a $40 million FHLB advance, noninterest expense in the fourth quarter of 2021 was $19.3 million compared to $17.8 million of noninterest expense in the fourth quarter of 2020 after excluding merger related costs in that quarter. This increase in noninterest expense after adjusting for these items was primarily due to the acquisition of Cortland.
Covid Support Efforts
Farmers offered special financial assistance to support customers who were experiencing financial hardships related to the COVID-19 pandemic. The Company offered three month deferrals upon request by the borrowers, beginning in the middle of March, 2020 and concluding at the end of the three month deferral period. For those borrowers in industries that were greatly impacted by COVID-19, additional deferrals were considered and granted beyond the initial three month period. The range of deferred months for subsequent requests was three to nine months. The decline in deferred loans and balances was due to borrowers not requesting additional deferments and beginning to restart payments under the original terms of their loan. At December 31, 2021, Farmers had no customers still on deferral.
Farmers is also a preferred SBA lender and we dedicated significant additional staff and other resources to help our customers complete and submit their applications and supporting documentation for loans offered under the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, so that they could obtain SBA approval and receive funding as quickly as possible. During the initial 2020 period of the PPP program, the Company facilitated PPP assistance to 1,714 business customers totaling $199.8 million. The Company, on behalf of its customers, began processing borrower applications for PPP forgiveness at the beginning of September 2020. The SBA has up to ninety days to review an application for PPP forgiveness and provide a decision at the end of that review. Once forgiveness of the PPP loans has been communicated and payment is received from the SBA, the Company will record the cash received from the SBA, pay-off the loans based on the amount of forgiveness provided and accelerate the amount of net deferred loan fees/costs recognized for the portion of the PPP loans that are forgiven.
About Farmers National Banc Corp.
Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $4.4 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 48 banking locations in Mahoning, Trumbull, Columbiana, Portage, Stark, Wayne, Medina, Geauga and Cuyahoga Counties in Ohio and Beaver County 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, 2021 are $3.1 billion. Farmers National Insurance, LLC, a wholly-owned subsidiary of The Farmers National Bank of Canfield, offers a variety of insurance products.
Non-GAAP Disclosure
This press release includes disclosures of Farmers’ tangible common equity ratio, return on average tangible assets, return on average tangible equity, net income excluding costs related to acquisition activities, 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.
Forward-Looking Statements
This earnings release contains 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 the forward-looking statements include impacts from the COVID-19 pandemic, including further resurgence in the spread of COVID-19, on local, national and global economic conditions; higher default rates on loans made to our customers related to COVID-19 and its impact on our customers’ operations and financial condition; unexpected changes in interest rates or disruptions in the mortgage markets related to COVID-19 or other responses to the health crisis; impacts of the upcoming U.S. elections on the regulatory landscape, capital markets, and response to and management of the COVID-19 pandemic including further economic stimulus from the federal government; Farmers’ failure to integrate Cortland and Cortland Bank with Farmers in accordance with expectations; deviations from performance expectations related to Cortland and Cortland Bank; and the other factors contained in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and available on Farmers’ website (www.farmersbankgroup.com) and on the SEC’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Farmers does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.
Farmers National Banc Corp. and Subsidiaries
Consolidated Financial Highlights
(Amounts in thousands, except per share results) Unaudited
| Consolidated Statements of Income | For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2021 | Dec. 31,2020 | Dec. 31,2021 | Dec. 31,2020 | PercentChange | |||||||||||||||||
| Total interest income | $ | 31,685 | $ | 28,375 | $ | 28,609 | $ | 27,790 | $ | 28,833 | $ | 116,459 | $ | 112,327 | 3.7 | % | ||||||||
| Total interest expense | 1,986 | 1,841 | 2,119 | 2,523 | 3,030 | 8,469 | 16,136 | -47.5 | % | |||||||||||||||
| Net interest income | 29,699 | 26,534 | 26,490 | 25,267 | 25,803 | 107,990 | 96,191 | 12.3 | % | |||||||||||||||
| Provision for credit losses | 5,366 | (948 | ) | 50 | 425 | 3,000 | 4,893 | 9,100 | -46.2 | % | ||||||||||||||
| Noninterest income | 9,538 | 9,015 | 9,508 | 10,132 | 10,499 | 38,193 | 36,161 | 5.6 | % | |||||||||||||||
| Acquisition related costs | 6,521 | 472 | 104 | 12 | 1,798 | 7,109 | 3,223 | 120.6 | % | |||||||||||||||
| Other expense | 21,140 | 16,656 | 16,966 | 17,305 | 17,796 | 72,067 | 69,757 | 3.3 | % | |||||||||||||||
| Income before income taxes | 6,210 | 19,369 | 18,878 | 17,657 | 13,708 | 62,114 | 50,272 | 23.6 | % | |||||||||||||||
| Income taxes | 508 | 3,358 | 3,303 | 3,101 | 2,351 | 10,270 | 8,396 | 22.3 | % | |||||||||||||||
| Net income | $ | 5,702 | $ | 16,011 | $ | 15,575 | $ | 14,556 | $ | 11,357 | $ | 51,844 | $ | 41,876 | 23.8 | % | ||||||||
| Average diluted shares outstanding | 32,074 | 28,361 | 28,353 | 28,336 | 28,322 | 29,280 | 28,394 | |||||||||||||||||
| Basic earnings per share | 0.18 | 0.57 | 0.55 | 0.52 | 0.40 | 1.78 | 1.48 | |||||||||||||||||
| Diluted earnings per share | 0.18 | 0.56 | 0.55 | 0.51 | 0.40 | 1.77 | 1.47 | |||||||||||||||||
| Cash dividends per share | 0.14 | 0.11 | 0.11 | 0.11 | 0.11 | 0.47 | 0.44 | |||||||||||||||||
| Performance Ratios | ||||||||||||||||||||||||
| Net Interest Margin (Annualized) | 3.33 | % | 3.47 | % | 3.52 | % | 3.54 | % | 3.69 | % | 3.45 | % | 3.70 | % | ||||||||||
| Efficiency Ratio (Tax equivalent basis) | 63.61 | % | 46.04 | % | 45.70 | % | 47.76 | % | 50.07 | % | 51.13 | % | 52.55 | % | ||||||||||
| Return on Average Assets (Annualized) | 0.58 | % | 1.92 | % | 1.90 | % | 1.87 | % | 1.49 | % | 1.52 | % | 1.46 | % | ||||||||||
| Return on Average Equity (Annualized) | 5.24 | % | 16.93 | % | 17.17 | % | 16.81 | % | 13.10 | % | 13.64 | % | 12.80 | % | ||||||||||
| Dividends to Net Income | 82.99 | % | 19.41 | % | 19.95 | % | 21.35 | % | 27.30 | % | 27.11 | % | 29.62 | % | ||||||||||
| Other Performance Ratios (Non-GAAP) | ||||||||||||||||||||||||
| Return on Average Tangible Assets | 0.60 | % | 1.97 | % | 1.93 | % | 1.87 | % | 1.52 | % | 1.55 | % | 1.48 | % | ||||||||||
| Return on Average Tangible Equity | 6.57 | % | 19.63 | % | 19.81 | % | 19.30 | % | 15.48 | % | 16.13 | % | 15.07 | % | ||||||||||
| Consolidated Statements of Financial Condition | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||
| Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2021 | Dec. 31,2020 | ||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Cash and cash equivalents | $ | 112,790 | $ | 79,808 | $ | 149,357 | $ | 326,385 | $ | 254,621 | ||||||||||||||
| Securities available for sale | 1,427,677 | 1,183,361 | 996,271 | 802,866 | 575,600 | |||||||||||||||||||
| Other investments | 30,459 | 19,041 | 20,573 | 21,317 | 21,528 | |||||||||||||||||||
| Loans held for sale | 4,545 | 2,628 | 1,922 | 3,993 | 4,766 | |||||||||||||||||||
| Loans | 2,331,082 | 1,894,216 | 1,959,865 | 2,037,404 | 2,078,044 | |||||||||||||||||||
| Less allowance for credit losses (a) | 29,386 | 23,136 | 24,806 | 24,935 | 22,144 | |||||||||||||||||||
| Net Loans | 2,301,696 | 1,871,080 | 1,935,059 | 2,012,469 | 2,055,900 | |||||||||||||||||||
| Other assets | 265,582 | 161,129 | 156,876 | 157,494 | 158,733 | |||||||||||||||||||
| Total Assets | $ | 4,142,749 | $ | 3,317,047 | $ | 3,260,058 | $ | 3,324,524 | $ | 3,071,148 | ||||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Noninterest-bearing | $ | 916,237 | $ | 675,938 | $ | 663,640 | $ | 675,045 | $ | 608,791 | ||||||||||||||
| Interest-bearing | 2,630,998 | 2,190,475 | 2,115,183 | 2,158,009 | 2,002,087 | |||||||||||||||||||
| Total deposits | 3,547,235 | 2,866,413 | 2,778,823 | 2,833,054 | 2,610,878 | |||||||||||||||||||
| Other interest-bearing liabilities | 87,758 | 49,649 | 78,369 | 79,683 | 78,906 | |||||||||||||||||||
| Other liabilities | 35,324 | 23,461 | 35,958 | 64,432 | 31,267 | |||||||||||||||||||
| Total liabilities | 3,670,317 | 2,939,523 | 2,893,150 | 2,977,169 | 2,721,051 | |||||||||||||||||||
| Stockholders’ Equity | 472,432 | 377,524 | 366,908 | 347,355 | 350,097 | |||||||||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 4,142,749 | $ | 3,317,047 | $ | 3,260,058 | $ | 3,324,524 | $ | 3,071,148 | ||||||||||||||
| Period-end shares outstanding | 33,898 | 28,322 | 28,322 | 28,308 | 28,258 | |||||||||||||||||||
| Book value per share | $ | 13.94 | $ | 13.33 | $ | 12.95 | $ | 12.27 | $ | 12.39 | ||||||||||||||
| Tangible book value per share (Non-GAAP)* | 10.91 | 11.61 | 11.23 | 10.53 | 10.63 | |||||||||||||||||||
| * | Tangible book value per share is calculated by dividing tangible common equity by outstanding shares<br> | |||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| Capital and Liquidity | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |||||||||
| Common Equity Tier 1 Capital Ratio (b) | 13.13 | % | 14.58 | % | 13.95 | % | 13.49 | % | 13.22 | % | ||||||||||||||
| Total Risk Based Capital Ratio (b) | 17.56 | % | 16.25 | % | 15.54 | % | 15.10 | % | 14.72 | % | ||||||||||||||
| Tier 1 Risk Based Capital Ratio (b) | 13.79 | % | 15.18 | % | 14.39 | % | 13.93 | % | 13.67 | % | ||||||||||||||
| Tier 1 Leverage Ratio (b) | 10.11 | % | 10.17 | % | 9.70 | % | 9.69 | % | 9.77 | % | ||||||||||||||
| Equity to Asset Ratio | 11.40 | % | 11.38 | % | 11.25 | % | 10.45 | % | 11.40 | % | ||||||||||||||
| Tangible Common Equity Ratio (c) | 9.15 | % | 10.06 | % | 9.90 | % | 9.10 | % | 9.94 | % | ||||||||||||||
| Net Loans to Assets | 55.56 | % | 56.41 | % | 59.36 | % | 60.53 | % | 66.94 | % | ||||||||||||||
| Loans to Deposits | 65.72 | % | 66.08 | % | 70.53 | % | 71.92 | % | 79.59 | % | ||||||||||||||
| Asset Quality | ||||||||||||||||||||||||
| Non-performing loans | $ | 16,195 | $ | 14,744 | $ | 13,873 | $ | 11,640 | $ | 13,835 | ||||||||||||||
| Other Real Estate Owned | 0 | 0 | 30 | 30 | 0 | |||||||||||||||||||
| Non-performing assets | 16,195 | 14,744 | 13,903 | 11,670 | 13,835 | |||||||||||||||||||
| Loans 30 - 89 days delinquent | 8,891 | 6,944 | 7,606 | 7,183 | 9,297 | |||||||||||||||||||
| Charged-off loans | 470 | 411 | 502 | 284 | 387 | |||||||||||||||||||
| Recoveries | 157 | 125 | 323 | 200 | 190 | |||||||||||||||||||
| Net Charge-offs | 313 | 286 | 179 | 84 | 197 | |||||||||||||||||||
| Annualized Net Charge-offs to | ||||||||||||||||||||||||
| Average Net Loans Outstanding | 0.06 | % | 0.06 | % | 0.04 | % | 0.02 | % | 0.04 | % | ||||||||||||||
| Allowance for Credit Losses to Total Loans (a) | 1.26 | % | 1.22 | % | 1.27 | % | 1.22 | % | 1.07 | % | ||||||||||||||
| Non-performing Loans to Total Loans | 0.69 | % | 0.78 | % | 0.71 | % | 0.57 | % | 0.67 | % | ||||||||||||||
| Allowance to Non-performing Loans (a) | 181.45 | % | 156.92 | % | 178.81 | % | 214.22 | % | 160.06 | % | ||||||||||||||
| Non-performing Assets to Total Assets | 0.39 | % | 0.44 | % | 0.43 | % | 0.35 | % | 0.45 | % | ||||||||||||||
| (a) | CECL methodology used during 2021. Prior periods used the incurred loss methodology. | |||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| (b) | December 31, 2021 ratio is estimated | |||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| (c) | This is a non-GAAP financial measure. A reconciliation to GAAP is shown<br>below | |||||||||||||||||||||||
| --- | --- | |||||||||||||||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||||||
| End of Period Loan Balances | Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2021 | Dec. 31,2020 | |||||||||||||||||||
| Commercial real estate | $ | 1,011,891 | $ | 690,407 | $ | 704,809 | $ | 702,556 | $ | 713,936 | ||||||||||||||
| Commercial | 313,836 | 302,356 | 351,261 | 406,064 | 404,492 | |||||||||||||||||||
| Residential real estate | 453,635 | 376,901 | 383,187 | 400,982 | 413,841 | |||||||||||||||||||
| HELOC | 127,433 | 106,750 | 107,153 | 107,501 | 110,352 | |||||||||||||||||||
| Consumer | 189,522 | 189,497 | 190,064 | 193,295 | 203,061 | |||||||||||||||||||
| Agricultural loans | 232,365 | 226,896 | 223,427 | 227,073 | 232,129 | |||||||||||||||||||
| Total, excluding net deferred loan costs | $ | 2,328,682 | $ | 1,892,807 | $ | 1,959,901 | $ | 2,037,471 | $ | 2,077,811 | ||||||||||||||
| For the Three Months Ended | For the Twelve Months<br>Ended | |||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| Noninterest Income | Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2021 | Dec. 31,2020 | Dec. 31,2021 | Dec. 31,2020 | |||||||||||||||||
| Service charges on deposit accounts | $ | 1,138 | $ | 924 | $ | 790 | $ | 808 | $ | 930 | $ | 3,660 | $ | 3,682 | ||||||||||
| Bank owned life insurance income | 414 | 340 | 300 | 284 | 187 | 1,338 | 795 | |||||||||||||||||
| Trust fees | 2,509 | 2,335 | 2,358 | 2,236 | 1,950 | 9,438 | 7,632 | |||||||||||||||||
| Insurance agency commissions | 706 | 799 | 948 | 1,003 | 776 | 3,456 | 3,124 | |||||||||||||||||
| Security gains, including fair value changes | 25 | 459 | 32 | 488 | 179 | 1,004 | 380 | |||||||||||||||||
| Retirement plan consulting fees | 378 | 334 | 389 | 320 | 394 | 1,421 | 1,523 | |||||||||||||||||
| Investment commissions | 611 | 638 | 523 | 504 | 450 | 2,276 | 1,530 | |||||||||||||||||
| Net gains on sale of loans | 1,728 | 1,466 | 2,191 | 2,900 | 3,610 | 8,285 | 11,362 | |||||||||||||||||
| Other mortgage banking fee income, net | 2 | 32 | (55 | ) | (115 | ) | 108 | (136 | ) | (83 | ) | |||||||||||||
| Debit card and EFT fees | 1,424 | 1,227 | 1,322 | 1,171 | 1,061 | 5,144 | 4,264 | |||||||||||||||||
| Other noninterest income | 603 | 461 | 710 | 533 | 854 | 2,307 | 1,952 | |||||||||||||||||
| Total Noninterest Income | $ | 9,538 | $ | 9,015 | $ | 9,508 | $ | 10,132 | $ | 10,499 | $ | 38,193 | $ | 36,161 | ||||||||||
| For the Three Months Ended | For the Twelve Months<br>Ended | |||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||||||
| Noninterest Expense | Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2021 | Dec. 31,2020 | Dec. 31,2021 | Dec. 31,2020 | |||||||||||||||||
| Salaries and employee benefits | $ | 10,230 | $ | 9,321 | $ | 9,866 | $ | 9,976 | $ | 9,638 | $ | 39,393 | $ | 39,826 | ||||||||||
| Occupancy and equipment | 2,422 | 1,899 | 1,890 | 2,275 | 2,060 | 8,486 | 7,254 | |||||||||||||||||
| State and local taxes | 620 | 552 | 551 | 554 | 515 | 2,277 | 2,138 | |||||||||||||||||
| Professional fees | 1,296 | 1,009 | 830 | 1,056 | 341 | 4,191 | 2,733 | |||||||||||||||||
| Merger related costs | 6,521 | 472 | 104 | 12 | 1,798 | 7,109 | 3,223 | |||||||||||||||||
| Advertising | 776 | 466 | 357 | 260 | 478 | 1,859 | 1,531 | |||||||||||||||||
| FDIC insurance | 152 | 140 | 120 | 170 | 100 | 582 | 750 | |||||||||||||||||
| Intangible amortization | 414 | 316 | 316 | 316 | 332 | 1,362 | 1,327 | |||||||||||||||||
| Core processing charges | 880 | 860 | 831 | 627 | 831 | 3,198 | 3,551 | |||||||||||||||||
| Other noninterest expenses | 4,350 | 2,093 | 2,205 | 2,071 | 3,501 | 10,719 | 10,647 | |||||||||||||||||
| Total Noninterest Expense | $ | 27,661 | $ | 17,128 | $ | 17,070 | $ | 17,317 | $ | 19,594 | $ | 79,176 | $ | 72,980 |
Business Combination
| Consideration | ||
|---|---|---|
| Cash | $ | 29,618 |
| Stock | 98,921 | |
| Fair value of total consideration transferred | $ | 128,539 |
| Fair value of assets acquired | ||
| Cash and cash equivalents | $ | 113,391 |
| Securities available for sale | 130,574 | |
| Other investments | 16,092 | |
| Loans, net | 482,168 | |
| Premises and equipment | 12,644 | |
| Bank owned life insurance | 21,547 | |
| Core deposit intangible | 5,886 | |
| Current and deferred taxes | 3,135 | |
| Other assets | 7,805 | |
| Total assets acquired | 793,242 | |
| Fair value of liabilities assumed | ||
| Deposits | 695,274 | |
| Short-term borrowings | 4,246 | |
| Long-term borrowings | 4,262 | |
| Accrued interest payable and other liabilities | 9,386 | |
| Total liabilities | 713,168 | |
| Net assets acquired | $ | 80,074 |
| Goodwill created | 48,465 | |
| Total net assets acquired | $ | 128,539 |
Average Balance Sheets and Related Yields and Rates
(Dollar Amounts in Thousands)
| Three Months EndedDecember 31, 2021 | Three Months EndedDecember 31, 2020 | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AVERAGE<br>BALANCE | INTEREST (1) | YIELD/<br>RATE (1) | AVERAGE<br>BALANCE | INTEREST (1) | YIELD/<br>RATE (1) | |||||||||
| EARNING ASSETS | ||||||||||||||
| Loans (2) | $ | 2,187,770 | $ | 24,946 | 4.52 | % | $ | 2,110,031 | $ | 25,409 | 4.79 | % | ||
| Taxable securities | 892,563 | 3,948 | 1.75 | 223,306 | 1,335 | 2.38 | ||||||||
| Tax-exempt securities (2) | 410,016 | 3,397 | 3.29 | 262,829 | 2,514 | 3.81 | ||||||||
| Other investments | 26,475 | 142 | 2.13 | 15,138 | 128 | 3.36 | ||||||||
| Federal funds sold and other | 114,496 | 39 | 0.14 | 237,357 | 67 | 0.11 | ||||||||
| Total earning assets | 3,631,320 | 32,472 | 3.55 | 2,848,661 | 29,453 | 4.11 | ||||||||
| Nonearning assets | 248,581 | 184,344 | ||||||||||||
| Total assets | $ | 3,879,901 | $ | 3,033,005 | ||||||||||
| INTEREST-BEARING LIABILITIES | ||||||||||||||
| Time deposits | $ | 379,786 | $ | 697 | 0.73 | % | $ | 458,340 | $ | 1,591 | 1.38 | % | ||
| Brokered time deposits | 0 | 0 | 0.00 | 43,685 | 98 | 0.89 | ||||||||
| Savings deposits | 736,732 | 202 | 0.11 | 489,071 | 236 | 0.19 | ||||||||
| Demand deposits - interest bearing | 1,367,921 | 475 | 0.14 | 995,977 | 804 | 0.32 | ||||||||
| Short term borrowings | 0 | 2 | 0.00 | 3,859 | 7 | 0.72 | ||||||||
| Long term borrowings | 80,799 | 610 | 3.00 | 76,400 | 294 | 1.53 | ||||||||
| Total interest-bearing liabilities | $ | 2,565,238 | 1,986 | 0.31 | $ | 2,067,332 | 3,030 | 0.58 | ||||||
| NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
| Demand deposits - noninterest bearing | 851,130 | 593,955 | ||||||||||||
| Other liabilities | 31,824 | 26,769 | ||||||||||||
| Stockholders’ equity | 431,709 | 344,949 | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,879,901 | $ | 3,033,005 | ||||||||||
| Net interest income and interest rate spread | $ | 30,486 | 3.24 | % | $ | 26,423 | 3.53 | % | ||||||
| Net interest margin | 3.33 | % | 3.69 | % | ||||||||||
| (1) | Interest and yields are calculated on a tax-equivalent basis where<br>applicable. | |||||||||||||
| --- | --- | |||||||||||||
| (2) | For 2021, adjustments of $86 thousand and $701 thousand, respectively, were made to tax equate income<br>on tax exempt loans and tax exempt securities. For 2020, adjustments of $101 thousand and $519 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal<br>federal income tax rate of 21%, less disallowances. | |||||||||||||
| --- | --- | |||||||||||||
| Twelve Months EndedDecember 31, 2021 | Twelve Months EndedDecember 31, 2020 | |||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| AVERAGE<br>BALANCE | INTEREST (1) | YIELD/<br>RATE (1) | AVERAGE<br>BALANCE | INTEREST (1) | YIELD/<br>RATE (1) | |||||||||
| EARNING ASSETS | ||||||||||||||
| Loans (2) | $ | 2,041,347 | $ | 95,180 | 4.66 | % | $ | 2,062,936 | $ | 98,779 | 4.79 | % | ||
| Taxable securities | 617,475 | 11,399 | 1.85 | 209,817 | 5,423 | 2.58 | ||||||||
| Tax-exempt securities (2) | 348,627 | 12,027 | 3.45 | 250,394 | 9,675 | 3.86 | ||||||||
| Other investments | 21,912 | 498 | 2.27 | 16,073 | 543 | 3.38 | ||||||||
| Federal funds sold and other | 180,718 | 201 | 0.11 | 124,447 | 298 | 0.24 | ||||||||
| Total earning assets | 3,210,079 | 119,305 | 3.72 | 2,663,667 | 114,718 | 4.31 | ||||||||
| Nonearning assets | 195,805 | 205,727 | ||||||||||||
| Total assets | $ | 3,405,884 | $ | 2,869,394 | ||||||||||
| INTEREST-BEARING LIABILITIES | ||||||||||||||
| Time deposits | $ | 393,039 | $ | 3,652 | 0.93 | % | $ | 480,302 | $ | 8,083 | 1.68 | % | ||
| Brokered time deposits | 11,737 | 75 | 0.64 | 72,472 | 1,057 | 1.46 | ||||||||
| Savings deposits | 569,179 | 712 | 0.13 | 462,021 | 1,080 | 0.23 | ||||||||
| Demand deposits - interest bearing | 1,240,014 | 2,336 | 0.19 | 856,462 | 4,161 | 0.49 | ||||||||
| Short term borrowings | 3,957 | 11 | 0.28 | 20,764 | 359 | 1.73 | ||||||||
| Long term borrowings | 70,057 | 1,683 | 2.40 | 82,451 | 1,396 | 1.69 | ||||||||
| Total interest-bearing liabilities | $ | 2,287,983 | 8,469 | 0.37 | $ | 1,974,472 | 16,136 | 0.82 | ||||||
| NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||
| Demand deposits - noninterest bearing | $ | 714,978 | $ | 546,177 | ||||||||||
| Other liabilities | 23,498 | 21,570 | ||||||||||||
| Stockholders’ equity | 379,425 | 327,175 | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 3,405,884 | $ | 2,869,394 | ||||||||||
| Net interest income and interest rate spread | $ | 110,836 | 3.35 | % | $ | 98,582 | 3.49 | % | ||||||
| Net interest margin | 3.45 | % | 3.70 | % | ||||||||||
| (1) | Interest and yields are calculated on a tax-equivalent basis where<br>applicable. | |||||||||||||
| --- | --- | |||||||||||||
| (2) | For 2021, adjustments of $360 thousand and $2.5 million, respectively, were made to tax equate income<br>on tax exempt loans and tax exempt securities. For 2020, adjustments of $400 thousand and $2.0 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal<br>federal income tax rate of 21%, less disallowances. | |||||||||||||
| --- | --- |
Reconciliation of Total Assets to Tangible Assets
| For the Three Months Ended | For the Twelve Months<br>Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2021 | Dec. 31,2020 | Dec. 31,2021 | Dec. 31,2020 | ||||||||
| Total Assets | $ | 4,142,749 | $ | 3,317,047 | $ | 3,260,058 | $ | 3,324,524 | $ | 3,071,148 | $ | 4,142,749 | $ | 3,071,148 |
| Less Goodwill and other intangibles | 102,606 | 48,670 | 48,985 | 49,301 | 49,617 | 102,606 | 49,617 | |||||||
| Tangible Assets | $ | 4,040,143 | $ | 3,268,377 | $ | 3,211,073 | $ | 3,275,223 | $ | 3,021,531 | $ | 4,040,143 | $ | 3,021,531 |
| Average Assets | 3,879,901 | 3,304,708 | 3,280,316 | 3,155,695 | 3,033,005 | 3,405,912 | 2,869,394 | |||||||
| Less average Goodwill and other intangibles | 84,580 | 48,879 | 49,193 | 49,509 | 51,476 | 58,111 | 49,363 | |||||||
| Average Tangible Assets | $ | 3,795,321 | $ | 3,255,829 | $ | 3,231,123 | $ | 3,106,186 | $ | 2,981,529 | $ | 3,347,801 | $ | 2,820,031 |
Reconciliation of Common Stockholders’ Equity to Tangible Common Equity
| For the Three Months Ended | For the Twelve Months<br>Ended | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2021 | Dec. 31,2020 | Dec. 31,2021 | Dec. 31,2020 | ||||||||
| Stockholders’ Equity | $ | 472,432 | $ | 377,524 | $ | 366,908 | $ | 347,355 | $ | 350,097 | $ | 472,432 | $ | 350,097 |
| Less Goodwill and other intangibles | 102,606 | 48,670 | 48,985 | 49,301 | 49,617 | 102,606 | 49,617 | |||||||
| Tangible Common Equity | $ | 369,826 | $ | 328,854 | $ | 317,923 | $ | 298,054 | $ | 300,480 | $ | 369,826 | $ | 300,480 |
| Average Stockholders’ Equity | 431,709 | 375,208 | 363,753 | 351,190 | 344,949 | 379,425 | 327,175 | |||||||
| Less average Goodwill and other intangibles | 84,580 | 48,879 | 49,193 | 49,509 | 51,476 | 58,111 | 49,363 | |||||||
| Average Tangible Common Equity | $ | 347,129 | $ | 326,329 | $ | 314,560 | $ | 301,681 | $ | 293,473 | $ | 321,314 | $ | 277,812 |
Reconciliation of Net Income, Less Merger and One-Time Items
| For the Three Months Ended | For the Twelve Months<br>Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2021 | Dec. 31,2020 | Dec. 31,2021 | Dec. 31,2020 | |||||||||||||||
| Net income | $ | 5,702 | $ | 16,011 | $ | 15,575 | $ | 14,556 | $ | 11,357 | $ | 51,844 | $ | 41,876 | |||||||
| Acquisition related costs - after tax | 5,232 | 468 | 83 | 9 | 1,431 | 5,731 | 2,585 | ||||||||||||||
| Acquisition related provision - after tax | 3,846 | 0 | 0 | 0 | 0 | 3,846 | 0 | ||||||||||||||
| FHLB prepayment penalties - after tax | 1,425 | 257 | 0 | 0 | 0 | 1,682 | 666 | ||||||||||||||
| Net loss (gain) on asset/security sales - after tax | 134 | (362 | ) | (26 | ) | (344 | ) | 502 | (598 | ) | 404 | ||||||||||
| Gain on sale of credit card portfolio - after tax | (189 | ) | 0 | 0 | 0 | 0 | (189 | ) | 0 | ||||||||||||
| Net income - Adjusted | $ | 16,150 | $ | 16,374 | $ | 15,632 | $ | 14,221 | $ | 13,290 | $ | 62,316 | $ | 45,531 | |||||||
| Diluted EPS excluding merger and one-time items | $ | 0.50 | $ | 0.58 | $ | 0.55 | $ | 0.50 | $ | 0.47 | $ | 2.13 | $ | 1.60 | |||||||
| Return on Average Assets excluding merger and one-time<br>items (Annualized) | 1.65 | % | 1.97 | % | 1.91 | % | 1.83 | % | 1.74 | % | 1.83 | % | 1.59 | % | |||||||
| Return on Average Equity excluding merger and one-time<br>items (Annualized) | 14.84 | % | 17.31 | % | 17.24 | % | 16.42 | % | 15.29 | % | 16.42 | % | 13.92 | % | |||||||
| Return on Average Tangible Equity excluding acquisition costs and<br>one-time items (Annualized) | 18.46 | % | 19.91 | % | 19.93 | % | 19.12 | % | 17.97 | % | 19.39 | % | 16.39 | % |
Efficiency ratio excluding one-time items
| For the Three Months Ended | For the Twelve Months<br>Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2021 | Dec. 31,2020 | Dec. 31,2021 | Dec. 31,2020 | |||||||||||||||
| Net interest income, after tax | $ | 30,492 | $ | 27,256 | $ | 27,192 | $ | 25,901 | $ | 26,423 | $ | 110,840 | $ | 98,582 | |||||||
| Noninterest income | 9,538 | 9,015 | 9,508 | 10,132 | 10,499 | 38,193 | 36,161 | ||||||||||||||
| Net loss (gain) on asset/security sales | 170 | (458 | ) | (33 | ) | (436 | ) | 635 | (757 | ) | 511 | ||||||||||
| Gain on sale of credit card portfolio | (239 | ) | 0 | 0 | 0 | 0 | (239 | ) | 0 | ||||||||||||
| Net interest income and noninterest income adjusted | 39,961 | 35,813 | 36,667 | 35,597 | 37,557 | 148,037 | 135,254 | ||||||||||||||
| Noninterest expense less intangible amortization | 27,247 | 16,813 | 16,755 | 17,002 | 19,213 | 77,817 | 70,001 | ||||||||||||||
| Acquisition related costs | 6,521 | 472 | 104 | 12 | 1,798 | 7,109 | 3,223 | ||||||||||||||
| FHLB prepayment penalties | 1,804 | 325 | 0 | 0 | 0 | 2,129 | 0 | ||||||||||||||
| Noninterest income adjusted | 18,922 | 16,016 | 16,651 | 16,990 | 17,415 | 68,579 | 66,778 | ||||||||||||||
| Efficiency ratio excluding one-time items | 47.35 | % | 44.72 | % | 45.41 | % | 47.73 | % | 46.37 | % | 46.33 | % | 49.37 | % |
Net interest margin excluding acquisition marks and PPP interest and fees
| For the Three Months Ended | For the Twelve Months<br>Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2021 | Dec. 31,2020 | Dec. 31,2021 | Dec. 31,2020 | |||||||||||||||
| Net interest income, fully-taxable equivalent | $ | 30,486 | $ | 27,256 | $ | 27,192 | $ | 25,901 | $ | 26,423 | $ | 110,836 | $ | 98,582 | |||||||
| Acquisition marks | 496 | (35 | ) | 200 | 271 | 308 | 932 | 1,126 | |||||||||||||
| PPP interest and fees | 979 | 1,402 | 2,097 | 2,144 | 2,456 | 6,621 | 4,914 | ||||||||||||||
| Adjusted and annualized net interest income | 115,098 | 102,712 | 99,854 | 95,249 | 93,865 | 103,283 | 92,542 | ||||||||||||||
| Average earning assets | 3,631,320 | 3,120,336 | 3,077,915 | 2,937,144 | 2,848,661 | 3,210,079 | 2,663,667 | ||||||||||||||
| less PPP average balances | 47,939 | 76,990 | 131,856 | 125,168 | 177,382 | 95,226 | 121,641 | ||||||||||||||
| Adjusted average earning assets | 3,583,381 | 3,043,346 | 2,946,059 | 2,811,976 | 2,671,279 | 3,114,853 | 2,542,026 | ||||||||||||||
| Net interest margin excluding marks and PPP interest and fees | 3.21 | % | 3.37 | % | 3.39 | % | 3.39 | % | 3.51 | % | 3.32 | % | 3.64 | % |
Reconciliation of Allowance for Credit Losses to Gross Loans, Excluding PPP Loans and Acquired Loans
| For the Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec. 31,2021 | Sept. 30,2021 | June 30,2021 | March 31,2020 | Dec. 31,2020 | |||||||||||
| Gross Loans | $ | 2,331,082 | $ | 1,894,216 | $ | 1,959,865 | $ | 2,037,404 | $ | 2,078,044 | |||||
| PPP Loans, net | 36,215 | 53,580 | 92,073 | 136,826 | 125,396 | ||||||||||
| Loans less PPP | 2,294,867 | 1,840,636 | 1,867,792 | 1,900,578 | 1,952,648 | ||||||||||
| Allowance for Credit Losses to Gross Loans Excluding PPP (a) | 1.28 | % | 1.26 | % | 1.33 | % | 1.31 | % | 1.13 | % | |||||
| Acquired Loans | 654,552 | 211,954 | 233,790 | 251,616 | 272,150 | ||||||||||
| (a) | CECL methodology used for the 2021 quarters. Prior period used the incurred loss methodology.<br> | ||||||||||||||
| --- | --- |