Farmers National Banc (FMNB) 8-K 2016 Fourth Quarter and Annual Financial Results

Exhibit 99.1

January 25, 2017

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

2016 FOURTH QUARTER AND ANNUAL FINANCIAL RESULTS

• Record Earnings for the year ended December 31, 2016 of $20.6 million

• 10% organic loan growth since December 31, 2015

• 136 consecutive quarters of profitability

• Return on average assets was 1.07% and return on average equity 9.72% for the year ended December 31, 2016

• Noninterest income increased 27% in 2016 compared to 2015

• Non-performing assets to total assets remain at low levels, 0.44% at December 31, 2016

CANFIELD, Ohio (January 25, 2017) – Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported financial results for the three and twelve months ended December 31, 2016.

Net income for the three months ended December 31, 2016 was $5.4 million, or $0.20 per diluted share, which compares to $3.2 million, or $0.12 per diluted share, for the three months ended December 31, 2015. Excluding expenses related to acquisition activities, net income for the two periods was $5.4 million or $0.20 per diluted share and $4.3 million or $0.16 per diluted share, respectively.

Annualized return on average assets and return on average equity were 1.08% and 9.74%, respectively, for the three month period ending December 31, 2016, compared to 0.68% and 6.51% for the same three month period in 2015. Excluding expenses related to acquisition activities, the annualized return on average assets and return on average equity for the quarter ended December 31, 2016 were 1.08% and 9.77% compared to 0.93% and 8.87% for the same quarter in 2015.

Net income for the year ended December 31, 2016 was $20.6 million, or $0.76 per diluted share, compared to $8.1 million or $0.36 per diluted share for 2015. Return on average assets and return on average equity were 1.07% and 9.72%, respectively, for the year ending December 31, 2016, compared to 0.54% and 4.97% for the same period in 2015. Excluding expenses related to acquisition activities net income for the two years was $21.0 million, or $0.78 per share and $12.9 million or $0.57 per share, respectively. The annualized return on average assets and return on average equity excluding acquisition costs were 1.09% and 9.92% in 2016, compared to 0.87% and 7.95% in 2015, respectively.

On June 1, 2016 Farmers completed the acquisition of Bowers Insurance Agency, Inc. (“Bowers Group”). The Bowers Group will continue to operate under its name from its current location in Cortland, Ohio as part of Farmers’ wholly-owned insurance agency subsidiary Farmers National Insurance, LLC. The strategic acquisition is expected to enhance Farmers’ current company and product line up, and offer broader options of commercial, farm, home, and auto property/casualty insurance to meet all the needs of all Farmers’ customers.

Kevin J. Helmick, President and CEO, stated, “We are happy to report a record year in net income, which has been achieved through the successful integration of our recent mergers, our 10% organic loan growth, and our continued focus on increasing noninterest income and careful management of noninterest expenses.”

2016 Fourth Quarter Financial Highlights

• Loan growth

Total loans were $1.43 billion at December 31, 2016, compared to $1.30 billion at December 31, 2015, representing an increase of 10.1%. The increase in loans is a direct result of Farmers’ focus on loan growth utilizing a talented lending and credit team, while adhering to a sound underwriting discipline. Most of the increase in loans has occurred in the commercial real estate, agricultural, residential real estate and consumer loan portfolios. Loans now comprise 76.3% of the Bank’s average earning assets for the year ended December 31, 2016, an improvement compared to 70.1% for the same period in 2015. This improvement along with the growth in earning assets has resulted in a 41% increase in tax equated loan income from 2015 to 2016.

• Loan quality

Non-performing assets to total assets remain at a safe level, currently at 0.44%. Early stage delinquencies also continue to remain at low levels, at $12.7 million, or 0.89% of total loans, at December 31, 2016. Net charge-offs for the current quarter were $656 thousand, up $360 thousand compared to $296 thousand in the same quarter in 2015, however total net charge-offs as a percentage of average net loans outstanding decreased from 0.23% for the year ended December 31, 2015 to 0.15% in 2016. Lending to the energy sector is insignificant and less than 1% of the loan portfolio.

• Net interest margin

The net interest margin for the three months ended December 31, 2016 was 3.95%, a 4 basis points decrease from the quarter ended December 31, 2015. In comparing the fourth quarter of 2016 to the same period in 2015, asset yields decreased 1 basis point, while the cost of interest-bearing liabilities increased 3 basis points. The net interest margin is impacted by the additional accretion as a result of the discounted loan portfolios acquired in the NBOH andTri-State mergers. Excluding the amortization of premium on time deposits and FHLB advances along with the accretion of the acquired loan discount, the net interest margin would have been 7 basis points lower or 3.88% for the quarter ended December 31, 2016.

• Noninterest income

Noninterest income increased 17.4% to $6.1 million for the quarter ended December 31, 2016 compared to $5.2 million in 2015. Gains on the sale of mortgage loans increased $431 thousand, or 106% in the current year’s quarter compared to the same quarter in 2015. Insurance agency commissions increased $384 thousand in comparing the same two quarters due mainly to the acquisition of the Bowers Group. Other operating income increased $148 thousand or 14% in 2016, mainly as a result of an increase in income from an investment in a Small Business Investment Company (SBIC) fund.

• Noninterest expenses

Farmers has remained committed to managing the level of noninterest expenses. Total noninterest expenses for the fourth quarter of 2016 decreased to $15.0 million compared to $16.6 million in the same quarter in 2015, primarily as a result of a $1.7 million decrease in merger related costs. Annualized noninterest expenses measured as a percentage of quarterly average assets decreased from 3.58% in the fourth quarter of 2015 to 3.03% in the fourth quarter of 2016.

• Efficiency ratio

The efficiency ratio for the quarter ended December 31, 2016 improved to 60.37% compared to 73.07% for the same quarter in 2015. The main factors leading to the improvement in the efficiency ratio were the increase in net interest income and noninterest income, the decrease in merger related costs, along with the stabilized level of noninterest expenses relative to average assets as explained in the preceding paragraphs.

2017 Outlook

Mr. Helmick added, “We are pleased with our financial results for 2016. We remain well positioned to grow and create value for all our stakeholders, as our commitment to provide innovative solutions for our customers, associates, shareholders, and local communities continues.

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $2 billion in banking assets and $1 billion in trust 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 39 banking locations in Mahoning, Trumbull, Columbiana, Stark, Wayne, Medina and Cuyahoga Counties in Ohio and Beaver County in Pennsylvania, Farmers Trust Company, which operates three trust offices and offers services in the same geographic markets and National Associates, Inc.. Farmers National Insurance, LLC and Bowers Insurance Agency, Inc., wholly-owned subsidiaries of The Farmers National Bank of Canfield, offer 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 and net income excluding costs related to acquisition activities, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). Anon-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 thesenon-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 ofnon-GAAP financial measures 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 can be found in Farmers’ Annual Report on Form10-K for the year ended December 31, 2015, as amended, which has been filed with the Securities and Exchange Commission (SEC) and is 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,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,			Percent
	2016			2016			2016			2016			2015			2016			2015			Change
Total interest income	$	18,469		$	18,332		$	17,950		$	17,747		$	17,481		$	72,498		$	53,827			34.7	%
Total interest expense		1,178			1,139			1,061			1,000			1,023			4,378			4,090			7.0	%
Net interest income		17,291			17,193			16,889			16,747			16,458			68,120			49,737			37.0	%
Provision for loan losses		990			1,110			990			780			990			3,870			3,510			10.3	%
Other income		6,076			6,485			5,737			4,946			5,175			23,244			18,306			27.0	%
Merger related costs		19			31			224			289			1,736			563			6,392			-91.2	%
Other expense		14,981			15,194			14,559			14,155			14,884			58,889			47,587			23.8	%
Income before income taxes		7,377			7,343			6,853			6,469			4,023			28,042			10,554			165.7	%
Income taxes		2,014			1,967			1,833			1,671			848			7,485			2,499			199.5	%
Net income	$	5,363		$	5,376		$	5,020		$	4,798		$	3,175		$	20,557		$	8,055			155.2	%
Average shares outstanding		27,048			27,048			26,965			26,937			27,027			27,000			22,678
Basic and diluted earnings per share		0.20			0.20			0.19			0.18			0.12			0.76			0.36
Cash dividends		1,082			1,082			1,083			1,077			809			4,324			2,683
Cash dividends per share		0.04			0.04			0.04			0.04			0.03			0.16			0.12
Performance Ratios
Net Interest Margin (Annualized)		3.95	%		3.97	%		4.06	%		4.07	%		3.99	%		4.01	%		3.81	%
Efficiency Ratio (Tax equivalent basis)		60.37	%		60.85	%		62.60	%		62.65	%		73.07	%		61.59	%		75.26	%
Return on Average Assets (Annualized)		1.08	%		1.10	%		1.06	%		1.03	%		0.68	%		1.07	%		0.54	%
Return on Average Equity (Annualized)		9.74	%		9.97	%		9.69	%		9.41	%		6.51	%		9.72	%		4.97	%
Dividends to Net Income		20.18	%		20.13	%		21.57	%		22.45	%		25.48	%		21.03	%		33.31	%
Other Performance Ratios(Non-GAAP)
Return on Average Tangible Assets		1.11	%		1.13	%		1.08	%		1.04	%		0.70	%		1.09	%		0.55	%
Return on Average Tangible Equity		12.34	%		12.73	%		12.22	%		11.83	%		8.44	%		12.30	%		5.92	%

Consolidated Statements of Financial Condition
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,
	2016			2016			2016			2016			2015
Assets
Cash and cash equivalents	$	41,778		$	67,372		$	62,184		$	34,619		$	56,014
Securities available for sale		369,995			368,729			378,432			387,093			394,312
Loans held for sale		355			2,148			1,737			488			1,769
Loans		1,427,635			1,395,620			1,358,484			1,315,501			1,296,865
Less allowance for loan losses		10,852			10,518			9,720			9,390			8,978
Net Loans		1,416,783			1,385,102			1,348,764			1,306,111			1,287,887
Other assets		137,202			137,657			134,002			131,996			129,920
Total Assets	$	1,966,113		$	1,961,008		$	1,925,119		$	1,860,307		$	1,869,902
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing	$	366,870		$	352,441		$	339,364		$	334,391		$	314,650
Interest-bearing		1,157,886			1,139,724			1,108,078			1,111,491			1,094,397
Total deposits		1,524,756			1,492,165			1,447,442			1,445,882			1,409,047
Other interest-bearing liabilities		213,496			235,757			247,934			192,078			247,985
Other liabilities		14,645			17,649			17,252			18,365			14,823
Total liabilities		1,752,897			1,745,571			1,712,628			1,656,325			1,671,855
Stockholders’ Equity		213,216			215,437			212,491			203,982			198,047
Total Liabilities and Stockholders’ Equity	$	1,966,113		$	1,961,008		$	1,925,119		$	1,860,307		$	1,869,902
Period-end shares outstanding		27,048			27,048			27,048			26,924			26,944
Book value per share	$	7.88		$	7.96		$	7.86		$	7.58		$	7.35
Tangible book value per share(Non-GAAP)		6.21			6.29			6.17			5.99			5.76
Capital and Liquidity
Common Equity Tier 1 Capital Ratio (a)		11.73	%		11.67	%		11.61	%		11.82	%		11.59	%
Total Risk Based Capital Ratio (a)		12.44	%		12.51	%		12.41	%		12.63	%		12.37	%
Tier 1 Risk Based Capital Ratio (a)		11.73	%		11.81	%		11.75	%		11.97	%		11.74	%
Tier 1 Leverage Ratio (a)		9.32	%		9.35	%		9.37	%		9.34	%		9.21	%
Equity to Asset Ratio		10.84	%		10.99	%		11.04	%		10.96	%		10.59	%
Tangible Common Equity Ratio		8.75	%		8.88	%		8.87	%		8.88	%		8.50	%
Net Loans to Assets		72.06	%		70.63	%		70.06	%		70.21	%		68.87	%
Loans to Deposits		93.63	%		93.53	%		93.85	%		90.98	%		92.04	%
Asset Quality
Non-performing loans	$	8,170		$	8,003		$	8,360		$	9,710		$	10,445
Other Real Estate Owned		482			506			572			555			942
Non-performing assets		8,652			8,509			8,932			10,265			11,387
Loans 30—89 days delinquent		12,747			10,986			11,371			10,072			9,130
Charged-off loans		841			562			820			578			447
Recoveries		185			250			160			210			151
Net Charge-offs		656			312			660			368			296
Annualized Net Charge-offs to Average Net Loans Outstanding		0.20	%		0.09	%		0.20	%		0.11	%		0.09	%
Allowance for Loan Losses to Total Loans		0.76	%		0.75	%		0.72	%		0.71	%		0.69	%
Non-performing Loans to Total Loans		0.57	%		0.57	%		0.62	%		0.74	%		0.81	%
Allowance toNon-performing Loans		132.83	%		131.43	%		116.27	%		96.70	%		85.96	%
Non-performing Assets to Total Assets		0.44	%		0.43	%		0.46	%		0.55	%		0.61	%

(a) December 31, 2016 ratio is estimated

Reconciliation of Common Stockholders’ Equity to Tangible Common Equity											For the Twelve Months Ended
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2016		2016		2016		2016		2015		2016		2015
Stockholders’ Equity	$	213,216	$	215,437	$	212,491	$	203,982	$	198,047	$	213,216	$	198,047
Less Goodwill and other intangibles		45,154		45,299		45,718		42,574		42,911		45,154		42,911
Tangible Common Equity	$	168,062	$	170,138	$	166,773	$	161,408	$	155,136	$	168,062	$	155,136
Average Stockholders’ Equity		219,028		214,484		207,776		204,986		193,446		211,408		162,086
Less Average Goodwill and other intangibles		45,173		45,575		43,475		42,796		43,028		44,284		26,128
Average Tangible Common Equity	$	173,855	$	168,909	$	164,301	$	162,190	$	150,418	$	167,124	$	135,958
Reconciliation of Total Assets to Tangible Assets											For the Twelve Months Ended
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2016		2016		2016		2016		2015		2016		2015
Total Assets	$	1,966,113	$	1,961,008	$	1,925,119	$	1,860,307	$	1,869,902	$	1,966,113	$	1,869,902
Less Goodwill and other intangibles		45,154		45,299		45,718		42,574		42,911		45,154		42,911
Tangible Assets	$	1,920,959	$	1,915,709	$	1,879,401	$	1,817,733	$	1,826,991	$	1,920,959	$	1,826,991
Average Assets		1,977,589		1,949,204		1,897,068		1,881,458		1,854,586		1,924,914		1,482,527
Less average Goodwill and other intangibles		45,173		45,575		43,475		42,796		43,028		44,284		26,128
Average Tangible Assets	$	1,932,416	$	1,903,629	$	1,853,593	$	1,838,662	$	1,811,558	$	1,880,630	$	1,456,399

Reconciliation of Net Income, Excluding Costs Related to Acquisition Activities											For the Twelve Months
	For the Three Months Ended										Ended
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,		Dec. 31,		Dec. 31,
	2016		2016		2016		2016		2015		2016		2015
Income before income taxes—Reported	$	7,377	$	7,343	$	6,853	$	6,469	$	4,023	$	28,042	$	10,554
Acquisition Costs		19		31		224		289		1,736		563		6,392
Income before income taxes—Adjusted		7,396		7,374		7,077		6,758		5,759		28,605		16,946
Income tax expense (b)		2,018		1,973		1,899		1,746		1,434		7,636		4,060
Net income—Adjusted	$	5,378	$	5,401	$	5,178	$	5,012	$	4,325	$	20,969	$	12,886
Average shares outstanding		27,048		27,048		26,965		26,937		27,027		27,000		22,678
EPS excluding acquisition costs	$	0.20	$	0.20	$	0.19	$	0.19	$	0.16	$	0.78	$	0.57

(b) The income tax expense change from actual income tax expense relates to the deductibility of certain acquisition costs.

Reconciliation of Return on Average Assets and Average Equity, Excluding Acquisition Costs																For the Twelve Months
	For the Three Months Ended															Ended
	Dec. 31,			Sept. 30,			June 30,			March 31,			Dec. 31,			Dec. 31,			Dec. 31,
	2016			2016			2016			2016			2015			2016			2015
ROA excluding acquisition costs (c)		1.09	%		1.11	%		1.09	%		1.07	%		0.93	%		1.09	%		0.87	%
ROE excluding acquisition costs (d)		9.82	%		10.07	%		9.97	%		9.78	%		8.94	%		9.92	%		7.95	%

(c) Net income - adjusted divided by average assets

(d) Net income - adjusted divided by average equity

	For the Three Months Ended
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
End of Period Loan Balances	2016		2016		2016		2016		2015
Commercial real estate	$	446,975	$	426,657	$	418,269	$	414,119	$	409,326
Commercial		204,771		207,228		201,796		197,708		199,843
Residential real estate		430,674		423,009		418,693		405,560		394,728
Consumer		212,836		205,466		192,232		180,791		180,837
Agricultural loans		128,981		129,959		124,551		114,625		109,400
Total, excluding net deferred loan costs	$	1,424,237	$	1,392,319	$	1,355,541	$	1,312,803	$	1,294,134
	For the Three Months Ended
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
Noninterest Income	2016		2016		2016		2016		2015
Service charges on deposit accounts	$	1,031	$	1,057	$	987	$	935	$	1,049
Bank owned life insurance income		208		194		201		212		214
Trust fees		1,482		1,693		1,564		1,496		1,518
Insurance agency commissions		559		569		293		139		175
Security gains		1		31		41		0		46
Retirement plan consulting fees		444		561		496		489		425
Investment commissions		310		308		356		236		286
Net gains on sale of loans		838		1,063		540		402		407
Other operating income		1,203		1,009		1,259		1,037		1,055
Total Noninterest Income	$	6,076	$	6,485	$	5,737	$	4,946	$	5,175
	For the Three Months Ended
	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
Noninterest Expense	2016		2016		2016		2016		2015
Salaries and employee benefits	$	8,248	$	8,366	$	7,740	$	7,554	$	8,220
Occupancy and equipment		1,748		1,587		1,616		1,664		1,772
State and local taxes		363		394		394		393		283
Professional fees		803		671		754		529		833
Merger related costs		19		31		224		289		1,736
Advertising		241		383		363		345		482
FDIC insurance		199		287		286		283		326
Intangible amortization		368		421		335		337		345
Core processing charges		743		738		580		638		770
Other operating expenses		2,268		2,347		2,491		2,412		1,853
Total Noninterest Expense	$	15,000	$	15,225	$	14,783	$	14,444	$	16,620

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)

	Three Months Ended							Three Months Ended
	December 31, 2016							December 31, 2015
	AVERAGE BALANCE		INTEREST (1)		RATE (1)			AVERAGE BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	1,397,289	$	16,328		4.65	%	$	1,262,480	$	15,113		4.75	%
Taxable securities		223,731		1,173		2.09			283,571		1,480		2.07
Tax-exempt securities (2)		140,113		1,483		4.21			133,837		1,361		4.03
Equity securities		9,644		112		4.62			9,520		145		6.04
Federal funds sold and other		37,473		47		0.50			11,523		9		0.31
Total earning assets		1,808,250		19,143		4.21			1,700,931		18,108		4.22
Nonearning assets		169,339							153,655
Total assets	$	1,977,589						$	1,854,586
INTEREST-BEARING LIABILITIES
Time deposits	$	240,415	$	463		0.77	%	$	246,113	$	490		0.79	%
Savings deposits		537,292		184		0.14			539,227		163		0.12
Demand deposits		364,443		215		0.23			324,295		161		0.20
Short term borrowings		206,852		204		0.39			188,352		91		0.19
Long term borrowings		17,403		111		2.54			19,835		118		2.36
Total interest-bearing liabilities	$	1,366,405		1,177		0.34		$	1,317,822		1,023		0.31
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits		376,463							324,887
Other liabilities		15,693							18,431
Stockholders’ equity		219,028							193,446
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,977,589						$	1,854,586
Net interest income and interest rate spread			$	17,966		3.87	%			$	17,085		3.91	%
Net interest margin						3.95	%						3.99	%

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

(2) For 2016, adjustments of $160 thousand and $531 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2015, adjustments of $159 thousand and $470 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 35%, less disallowances.

	Twelve Months Ended							Twelve Months Ended
	December 31, 2016							December 31, 2015
	AVERAGE BALANCE		INTEREST (1)		RATE (1)			AVERAGE BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	1,344,308	$	63,757		4.74	%	$	955,415	$	45,242		4.74	%
Taxable securities		240,087		5,058		2.11			279,808		5,903		2.11
Tax-exempt securities		132,550		5,581		4.21			103,947		4,510		4.34
Equity securities (2)		9,613		515		5.36			6,561		287		4.37
Federal funds sold and other		34,579		166		0.48			16,855		29		0.17
Total earning assets		1,761,137		75,077		4.26		$	1,362,586		55,971		4.11
Nonearning assets		163,777							119,941
Total assets	$	1,924,914						$	1,482,527
INTEREST-BEARING LIABILITIES
Time deposits	$	245,384	$	1,834		0.75	%	$	227,412	$	2,610		1.15	%
Savings deposits		540,626		685		0.13			468,123		534		0.11
Demand deposits		333,712		701		0.21			219,257		345		0.16
Short term borrowings		211,713		689		0.33			107,850		177		0.16
Long term borrowings		19,886		468		2.35			34,799		424		1.22
Total interest-bearing liabilities	$	1,351,321	$	4,377		0.32		$	1,057,441		4,090		0.39
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits	$	248,003						$	250,628
Other liabilities		14,182							12,372
Stockholders’ equity		211,408							162,086
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,824,914						$	1,482,527
Net interest income and interest rate spread			$	70,700		3.94	%			$	51,881		3.72	%
Net interest margin						4.01	%						3.81	%

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

(2) For 2016, adjustments of $648 thousand and $1.9 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2015, adjustments of $585 thousand and $1.6 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 35%, less disallowances.