Farmers National Banc (FMNB) 8-K Results of Operations and Financial Condition

Exhibit 99.1

January 29, 2020

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

2019 FOURTH QUARTER FINANCIAL RESULTS

• Record net income of $9.7 million for the quarter is 11% higher than same quarter in 2018

• 148 consecutive quarters of profitability

• Annualized return on average assets was 1.58% and annualized return on average equity 12.78% for the quarter ended December 31, 2019

• 14% noninterest income growth in the fourth quarter of 2019 compared to same quarter in 2018

• 8.5% growth in customernon-brokered deposits compared to December 31, 2018

• Non-performing assets to total assets remain at low levels, 0.26% at December 31, 2019

CANFIELD, Ohio (January 29, 2020) – Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported financial results for the three months and year ended December 31, 2019.

Net income for the three months ended December 31, 2019 was $9.7 million, or $0.35 per diluted share, which compares to $8.7 million, or $0.31 per diluted share, for the three months ended December 31, 2018 and $9.2 million or $0.33 per diluted share for the linked quarter. Annualized return on average assets and annualized return on average equity were 1.58% and 12.78%, respectively, for the three month period ending December 31, 2019, compared to 1.50% and 13.65% for the same three month period in 2018, and 1.51% and 12.49% for the linked quarter. Farmers’ return on average tangible equity(non-GAAP) was 15.03% for the quarter ended December 31, 2019 compared to 16.68% for the same quarter in 2018 and 14.80% for the linked quarter.

Net income for the twelve months ended December 31, 2019 was $35.8 million, or $1.28 per diluted share, compared to $32.6 million or $1.16 per diluted share for the same twelve month period in 2018. Return on average assets and return on average equity were 1.50% and 12.56%, respectively, for the twelve months ended December 31, 2019, compared to 1.46% and 13.13% for the same period in 2018.

On January 7, 2020, Farmers announced it completed the merger of Maple Leaf Financial (“Maple Leaf”), the holding company for Geauga Savings Bank, with branches located in Cuyahoga and Geauga Counties in Ohio. The transaction increases Farmers’ market share in Cuyahoga and Geauga Counties and enables Farmers to continue building local scale throughout Northeast Ohio. As of September 30, 2019, Maple Leaf had total assets of $275.6 million, which included gross loans of $183.5 million, deposits of $183.4 million and equity of $33.4 million.

Kevin J. Helmick, President and CEO, stated, “As a result of solid loan and deposit growth over the past twelve months, 14% increase in noninterest income, careful management of our noninterest expenses and continued strong asset quality, we are pleased to report an 11% increase in net income compared to the same quarter one year ago. We are also pleased to report a 25% increase in cash dividends paid to our shareholders, from $0.08 per share paid in the fourth quarter of 2018 to $0.10 paid for the same quarter in 2019.”

2019 Fourth Quarter Financial Highlights

• Loan growth

Total loans were $1.81 billion at December 31, 2019, compared to $1.74 billion at December 31, 2018, representing an increase of 4.4%. 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. The increase in loans has occurred in the agricultural, commercial, commercial real estate, and residential real estate loan portfolios. Loans now comprise 79.5% of the Bank’s average earning assets for the quarter ended December 31, 2019, a slight improvement compared to 79.4% for the same period in 2018. This improvement, along with the growth in earning assets, has resulted in a 6.1% increase in tax equated loan interest income, including fees, in the fourth quarter of 2019 compared to the same quarter in 2018.

• Loan quality

Non-performing assets to total assets remain at a low level, currently at 0.26%. Early stage delinquencies also continue to remain at low levels, at $11.9 million, or 0.66% of total loans, at December 31, 2019. Net charge-offs for the current quarter were $374 thousand, compared to $310 thousand in the same quarter in 2018, and total net charge-offs as a percentage of average net loans outstanding is only 0.09% for the quarter ended December 31, 2019.

• Net interest margin

The net interest margin for the three months ended December 31, 2019 was 3.84%, a 4 basis points increase from the quarter ended December 31, 2018, and 5 basis points better than the 3.79% reported for the linked quarter. In comparing the fourth quarter of 2019 to the same period in 2018, asset yields increased 7 basis points, while the cost of interest-bearing liabilities increased just 3 basis points. Most of the increase in the asset yields was the result of higher rates earned on loans. The net interest margin is impacted by the additional accretion as a result of the discounted loan portfolios acquired in the previous mergers, which increased the net interest margin by 4 basis points for the quarter ended December 31, 2019 and 5 basis points for the quarter ended December 31, 2018.

• Noninterest income

Noninterest income increased 14.1% to $7.6 million for the quarter ended December 31, 2019 compared to $6.7 million in the same quarter in 2018. Gains on the sales of mortgage loans increased $685 thousand or 82%, investment commissions increased $176 thousand or 68%, trust fees increased $139 thousand or 8%, insurance agency commissions grew $54 thousand or 8%, and other operating income increased $91 thousand or 23% in comparing the fourth quarter of 2019 to the same quarter in 2018. These increases were offset by a decrease of securities gains of $232 thousand or 89%.

• Noninterest expenses

Farmers has remained committed to managing the level of noninterest expenses. Total noninterest expenses for the fourth quarter of 2019 increased 2.3% to $16.4 million compared to $16.0 million in the same quarter in 2018, primarily as a result of increases in merger related costs of $284 thousand and other operating expenses of $236 thousand, offset by a $316 thousand decrease in salaries and employee benefits and a $155 thousand decrease in FDIC insurance expense. Annualized noninterest expenses measured as a percentage of quarterly average assets decreased from 2.75% in the fourth quarter of 2018 to 2.68% in the fourth quarter of 2019.

• Efficiency ratio

The efficiency ratio for the quarter ended December 31, 2019 decreased to 54.51% compared to 57.73% for the same quarter in 2018. The improvement in net interest income and noninterest income in the fourth quarter of 2019 was offset by a slightly higher level of noninterest expenses as explained in the preceding paragraphs.

2020 Outlook

Mr. Helmick added, “With the announcement of the completion of our acquisition of Geauga Savings Bank and our continued strong financial performance during this year, we look forward in 2020 to realize the benefits of the full integration of our new banking locations and to build on our momentum of having achieved another successful year. We remain extremely proud of our committed employees that continue to deliver strong results for our stakeholders and remain committed to our community banking approach and culture.”

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $2.4 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 41 banking locations in Mahoning, Trumbull, Columbiana, Stark, Wayne, Medina 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, 2019 are $2.5 billion. 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, 2018, 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
	2019		2019		2019			2019		2018			2019		2018			Change
Total interest income	$	25,847	$	25,931	$	25,529		$	24,679	$	24,447		$	101,986	$	91,766			11.1	%
Total interest expense		4,682		5,174		5,038			4,714		4,373			19,608		13,265			47.8	%
Net interest income		21,165		20,757		20,491			19,965		20,074			82,378		78,501			4.9	%
Provision for loan losses		600		550		750			550		525			2,450		3,000			-18.3	%
Noninterest income		7,647		7,441		6,994			6,520		6,705			28,602		25,499			12.2	%
Acquisition related costs (income)		104		112		(19	)		0		(180	)		197		(155	)		-227.1	%
Other expense		16,247		16,311		16,723			15,977		16,163			65,258		62,872			3.8	%
Income before income taxes		11,861		11,225		10,031			9,958		10,271			43,075		38,283			12.5	%
Income taxes		2,186		2,071		1,488			1,570		1,585			7,315		5,714			28.0	%
Net income	$	9,675	$	9,154	$	8,543		$	8,388	$	8,686		$	35,760	$	32,569			9.8	%

Average diluted shares outstanding	27,829		27,819		27,931		27,983		27,962		27,876		27,974
Basic earnings per share	0.35		0.33		0.31		0.30		0.31		1.29		1.18
Diluted earnings per share	0.35		0.33		0.31		0.30		0.31		1.28		1.16
Cash dividends	2,767		2,767		2,504		2,500		2,223		10,538		8,315
Cash dividends per share	0.10		0.10		0.09		0.09		0.08		0.38		0.30
Performance Ratios
Net Interest Margin (Annualized)	3.84	%	3.79	%	3.84	%	3.81	%	3.80	%	3.82	%	3.87	%
Efficiency Ratio (Tax equivalent basis)	54.51	%	55.90	%	58.28	%	57.83	%	57.73	%	56.59	%	57.93	%
Return on Average Assets (Annualized)	1.58	%	1.51	%	1.45	%	1.45	%	1.50	%	1.50	%	1.46	%
Return on Average Equity (Annualized)	12.78	%	12.49	%	12.34	%	12.71	%	13.65	%	12.56	%	13.13	%
Dividends to Net Income	28.60	%	30.23	%	29.31	%	29.80	%	25.59	%	29.47	%	25.53	%
Other Performance Ratios(Non-GAAP)
Return on Average Tangible Assets	1.62	%	1.55	%	1.47	%	1.46	%	1.54	%	1.53	%	1.49	%
Return on Average Tangible Equity	15.03	%	14.80	%	14.59	%	14.99	%	16.68	%	14.81	%	16.02	%
Return on Average Tangible Equity excluding acquisition costs	15.17	%	14.95	%	14.55	%	14.99	%	16.34	%	14.88	%	15.95	%

Consolidated Statements of Financial Condition

	Dec. 31,		Sept. 30,		June 30,		March 31,		Dec. 31,
	2019		2019		2019		2019		2018
Assets
Cash and cash equivalents	$	70,760	$	85,675	$	64,007	$	69,672	$	57,926
Securities available for sale		432,233		423,193		424,252		403,770		402,190
Equity securities		7,909		7,856		7,222		7,460		7,130
Loans held for sale		2,600		2,079		1,093		2,360		1,237
Loans		1,811,539		1,784,125		1,780,504		1,743,651		1,735,840
Less allowance for loan losses		14,487		14,261		14,222		13,777		13,592
Net Loans		1,797,052		1,769,864		1,766,282		1,729,874		1,722,248
Other assets		138,604		144,543		143,093		142,938		138,133
Total Assets	$	2,449,158	$	2,433,210	$	2,405,949	$	2,356,074	$	2,328,864
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing	$	434,126	$	432,609	$	415,935	$	415,131	$	421,950
Interest-bearing		1,574,838		1,608,043		1,584,700		1,539,202		1,377,770
Total deposits		2,008,964		2,040,652		2,000,635		1,954,333		1,799,720
Other interest-bearing liabilities		122,197		76,324		96,978		109,348		250,792
Other liabilities		18,688		23,011		23,511		19,442		16,032
Total liabilities		2,149,849		2,139,987		2,121,124		2,083,123		2,066,544
Stockholders’ Equity		299,309		293,223		284,825		272,951		262,320
Total Liabilities and Stockholders’ Equity	$	2,449,158	$	2,433,210	$	2,405,949	$	2,356,074	$	2,328,864
Period-end shares outstanding		27,671		27,669		27,768		27,777		27,792
Book value per share	$	10.82	$	10.60	$	10.26	$	9.83	$	9.44
Tangible book value per share (Non-GAAP)*		9.28		9.04		8.70		8.26		7.86

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

Capital and Liquidity

Common Equity Tier 1 Capital Ratio (a)		12.94	%		12.70	%		12.47	%		12.37	%		12.16	%
Total Risk Based Capital Ratio (a)		13.82	%		13.58	%		13.34	%		13.24	%		13.03	%
Tier 1 Risk Based Capital Ratio (a)		13.06	%		12.83	%		12.59	%		12.50	%		12.28	%
Tier 1 Leverage Ratio (a)		10.69	%		10.42	%		10.27	%		10.07	%		9.91	%
Equity to Asset Ratio		12.22	%		12.05	%		11.84	%		11.58	%		11.26	%
Tangible Common Equity Ratio (b)		10.67	%		10.47	%		10.22	%		9.92	%		9.56	%
Net Loans to Assets		73.37	%		72.74	%		73.41	%		73.42	%		73.95	%
Loans to Deposits		90.17	%		87.43	%		89.00	%		89.22	%		96.45	%
Asset Quality
Non-performing loans	$	6,345		$	6,749		$	7,252		$	7,578		$	7,731
Other Real Estate Owned		19			74			74			208			0
Non-performing assets		6,364			6,823			7,326			7,786			7,731
Loans 30 - 89 days delinquent		11,893			9,076			10,203			9,082			8,877
Charged-off loans		519			674			588			566			753
Recoveries		145			163			283			201			443
Net Charge-offs		374			511			305			365			310
Annualized Net Charge-offs to
Average Net Loans Outstanding		0.09	%		0.12	%		0.07	%		0.08	%		0.07	%
Allowance for Loan Losses to Total Loans		0.80	%		0.80	%		0.80	%		0.79	%		0.78	%
Non-performing Loans to Total Loans		0.35	%		0.38	%		0.41	%		0.43	%		0.45	%
Allowance to Non-performing Loans		228.32	%		211.31	%		196.11	%		181.80	%		175.81	%
Non-performing Assets to Total Assets		0.26	%		0.28	%		0.30	%		0.33	%		0.33	%

(a) December 31, 2019 ratio is estimated

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

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,
	2019		2019		2019		2019		2018		2019		2018
Total Assets	$	2,449,158	$	2,433,210	$	2,405,949	$	2,356,074	$	2,328,864	$	2,449,158	$	2,328,864
Less Goodwill and other intangibles		42,645		42,973		43,298		43,625		43,952		42,645		43,952
Tangible Assets	$	2,406,513	$	2,390,237	$	2,362,651	$	2,312,449	$	2,284,912	$	2,406,513	$	2,284,912
Average Assets		2,424,574		2,409,010		2,369,388		2,338,792		2,301,847		2,383,236		2,230,380
Less average Goodwill and other intangibles		42,859		43,187		43,508		43,840		44,185		43,345		44,712
Average Tangible Assets	$	2,381,715	$	2,365,823	$	2,325,880	$	2,294,952	$	2,257,662	$	2,339,891	$	2,185,668
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,
	2019		2019		2019		2019		2018		2019		2018
Stockholders’ Equity	$	299,309	$	293,223	$	284,825	$	272,951	$	262,320	$	299,309	$	262,320
Less Goodwill and other intangibles		42,645		42,973		43,298		43,625		43,952		42,645		43,952
Tangible Common Equity	$	256,664	$	250,250	$	241,527	$	229,326	$	218,368	$	256,664	$	218,368
Average Stockholders’ Equity		300,355		290,673		277,746		267,736		252,449		284,759		247,965
Less average Goodwill and other intangibles		42,859		43,187		43,508		43,840		44,185		43,345		44,712
Average Tangible Common Equity	$	257,496	$	247,486	$	234,238	$	223,896	$	208,264	$	241,414	$	203,253

Reconciliation of Net Income, Excluding Acquisition Related Costs

	For the Three Months Ended												For the Twelve Months Ended
	Dec. 31,		Sept. 30,		June 30,			March 31,		Dec. 31,			Dec. 31,		Dec. 31,
	2019		2019		2019			2019		2018			2019		2018
Net income	$	9,675	$	9,154	$	8,543		$	8,388	$	8,686		$	35,760	$	32,569
Acquisition related costs (income) – tax equated		90		97		(20	)		0		(180	)		167		(158	)
Net income – Adjusted	$	9,765	$	9,251	$	8,523		$	8,388	$	8,506		$	35,927	$	32,411
Diluted EPS excluding acquisition costs	$	0.35	$	0.33	$	0.31		$	0.30	$	0.30		$	1.29	$	1.16

	Dec. 31,		Sept. 30,		June 30,			March 31,		Dec. 31,
End of Period Loan Balances	2019		2019		2019			2019		2018
Commercial real estate	$	616,778	$	602,580	$	614,452		$	589,219	$	579,481
Commercial		255,823		251,613		256,657			254,957		245,172
Residential real estate		500,024		499,996		493,529			488,854		492,887
Consumer		209,271		207,319		207,417			209,541		216,284
Agricultural loans		226,333		219,487		205,544			198,210		199,013
Total, excluding net deferred loan costs	$	1,808,229	$	1,780,995	$	1,777,599		$	1,740,781	$	1,732,837
	For the Three Months Ended
	Dec. 31,		Sept. 30,		June 30,			March 31,		Dec. 31,
Noninterest Income	2019		2019		2019			2019		2018
Service charges on deposit accounts	$	1,139	$	1,208	$	1,093		$	1,074	$	1,115
Bank owned life insurance income		192		204		208			214		221
Trust fees		1,891		1,905		1,821			1,858		1,752
Insurance agency commissions		696		681		739			803		642
Security gains (losses)		28		22		(18	)		10		260
Retirement plan consulting fees		343		338		450			358		370
Investment commissions		435		384		327			260		259
Net gains on sale of loans		1,517		1,143		1,055			671		832
Debit card and EFT fees		922		935		887			778		861
Other operating income		484		621		432			494		393
Total Noninterest Income	$	7,647	$	7,441	$	6,994		$	6,520	$	6,705
	For the Three Months Ended
	Dec. 31,		Sept. 30,		June 30,			March 31,		Dec. 31,
Noninterest Expense	2019		2019		2019			2019		2018
Salaries and employee benefits	$	9,128	$	9,422	$	9,266		$	9,356	$	9,444
Occupancy and equipment		1,667		1,615		1,650			1,717		1,566
State and local taxes		416		468		472			470		474
Professional fees		787		654		887			794		734
Merger related costs (income)		104		112		(19	)		0		(180	)
Advertising		607		437		442			250		416
FDIC insurance		79		80		85			87		234
Intangible amortization		326		326		327			327		355
Core processing charges		876		900		803			791		762
Telephone and data		235		236		217			260		288
Other operating expenses		2,126		2,173		2,574			1,925		1,890
Total Noninterest Expense	$	16,351	$	16,423	$	16,704		$	15,977	$	15,983

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)

	Three Months Ended							Three Months Ended
	December 31, 2019							December 31, 2018
	AVERAGE							AVERAGE
	BALANCE		INTEREST (1)		RATE (1)			BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	1,784,421	$	22,725		5.05	%	$	1,706,008	$	21,424		4.98	%
Taxable securities		181,894		1,162		2.53			199,472		1,241		2.47
Tax-exempt securities (2)		227,259		2,205		3.85			202,241		1,936		3.80
Equity securities		12,059		130		4.28			11,822		185		6.21
Federal funds sold and other		37,914		170		1.78			29,663		154		2.06
Total earning assets		2,243,547		26,392		4.67			2,149,206		24,940		4.60
Nonearning assets		181,027							152,641
Total assets	$	2,424,574						$	2,301,847
INTEREST-BEARING LIABILITIES
Time deposits	$	418,722	$	2,089		1.98	%	$	324,696	$	1,349		1.65	%
Brokered time deposits		85,973		446		2.06			272		2		2.35
Savings deposits		402,464		320		0.32			438,008		284		0.26
Demand deposits		683,143		1,506		0.87			578,470		1,128		0.77
Short term borrowings		35,838		99		1.10			264,371		1,562		2.34
Long term borrowings		45,203		222		1.95			6,089		48		3.13
Total interest-bearing liabilities	$	1,671,343		4,682		1.11		$	1,611,906		4,373		1.08
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits		434,778							423,576
Other liabilities		18,098							13,916
Stockholders’ equity		300,355							252,449
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,424,574						$	2,301,847
Net interest income and interest rate spread			$	21,710		3.56	%			$	20,567		3.52	%
Net interest margin						3.84	%						3.80	%

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

(2) For 2019, adjustments of $99 thousand and $446 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2018, adjustments of $92 thousand and $401 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances.

	Twelve Months Ended							Twelve Months Ended
	December 31, 2019							December 31, 2018
	AVERAGE							AVERAGE
	BALANCE		INTEREST (1)		RATE (1)			BALANCE		INTEREST (1)		RATE (1)
EARNING ASSETS
Loans (2)	$	1,757,799	$	89,517		5.09	%	$	1,632,541	$	80,192		4.91	%
Taxable securities		190,944		4,840		2.53			202,270		4,928		2.44
Tax-exempt securities		216,586		8,418		3.89			194,302		7,195		3.70
Equity securities (2)		12,057		627		5.20			11,382		652		5.73
Federal funds sold and other		34,948		729		2.09			34,006		644		1.89
Total earning assets		2,212,334		104,131		4.71			2,074,501		93,611		4.51
Nonearning assets		170,902							155,879
Total assets	$	2,383,236						$	2,230,380
INTEREST-BEARING LIABILITIES
Time deposits	$	401,317	$	7,847		1.96	%	$	293,725	$	4,210		1.43	%
Brokered time deposits		83,311		1,921		2.31			68		2		2.35
Savings deposits		410,672		1,285		0.31			465,283		1,015		0.22
Demand deposits		641,461		5,807		0.91			506,099		2,912		0.58
Short term borrowings		96,145		2,250		2.34			281,063		4,936		1.76
Long term borrowings		23,318		498		2.14			6,491		190		2.93
Total interest-bearing liabilities	$	1,656,224		19,608		1.18		$	1,552,729		13,265		0.85
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits	$	429,289						$	415,968
Other liabilities		12,964							13,718
Stockholders’ equity		284,759							247,965
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,383,236						$	2,230,380
Net interest income and interest rate spread			$	84,523		3.53	%			$	80,346		3.66	%
Net interest margin						3.82	%						3.87	%

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

(2) For 2019, adjustments of $414 thousand and $1.7 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2018, adjustments of $357 thousand and $1.5 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances.