10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

For the Quarterly period ended September 30, 2024

Commission file number 001-35296

FARMERS NATIONAL BANC CORP.

(Exact name of registrant as specified in its charter)

Ohio	34-1371693
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No)
20 South Broad Street Canfield, OH	44406
(Address of principal executive offices)	(Zip Code)

(330) 533-3341

(Registrant’s telephone number, including area code)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act.

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, No Par Value	FMNB	The NASDAQ Stock Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Small reporting company	☐
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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at October 31, 2024
Common Stock, No Par Value	37,587,732 shares

		Page Number
PART I - FINANCIAL INFORMATION
Item 1	Financial Statements (Unaudited)
	Included in Part I of this report:
	Farmers National Banc Corp. and Subsidiaries
	Consolidated Condensed Balance Sheets (Unaudited)	2
	Consolidated Condensed Statements of Income (Unaudited)	3
	Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited)	4
	Consolidated Condensed Statements of Stockholders’ Equity (Unaudited)	5
	Consolidated Condensed Statements of Cash Flows (Unaudited)	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	44
Item 3	Quantitative and Qualitative Disclosures About Market Risk	54
Item 4	Controls and Procedures	55
PART II - OTHER INFORMATION		55
Item 1	Legal Proceedings	55
Item 1A	Risk Factors	55
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	56
Item 3	Defaults Upon Senior Securities	56
Item 4	Mine Safety Disclosures	56
Item 5	Other Information	56
Item 6	Exhibits	57
SIGNATURES		58
10-Q Certifications
Section 906 Certifications

1

CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)

FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES

	(In Thousands of Dollars)
	September 30, 2024			December 31, 2023
ASSETS
Cash and due from banks	$	21,149		$	28,896
Federal funds sold and other		167,987			74,762
TOTAL CASH AND CASH EQUIVALENTS		189,136			103,658
Securities available for sale (Amortized cost $1,482,798 in 2024 and $1,516,841 in 2023)		1,293,350			1,299,701
Other investments		33,617			35,311
Loans held for sale, at fair value		2,852			3,711
Loans		3,280,517			3,198,127
Less allowance for credit losses		36,186			34,440
NET LOANS		3,244,331			3,163,687
Premises and equipment, net		48,095			44,364
Goodwill		167,446			167,446
Other intangibles, net		20,894			22,842
Bank owned life insurance		100,976			99,482
Affordable housing investments		22,567			17,893
Other assets		113,239			120,255
TOTAL ASSETS	$	5,236,503		$	5,078,350
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	969,682		$	1,026,630
Interest-bearing		3,317,223			3,150,756
Brokered time deposits		74,932			0
TOTAL DEPOSITS		4,361,837			4,177,386
Short-term borrowings		285,000			355,000
Long-term borrowings		86,038			88,663
Other liabilities		63,950			52,886
TOTAL LIABILITIES		4,796,825			4,673,935
Commitments and contingent liabilities
Stockholders' Equity:
Common Stock, no par value; 50,000,000 shares authorized; 39,321,709 shares issued in 2024 and 2023; 37,573,650 and 37,502,773 shares outstanding, respectively		365,542			365,305
Retained earnings		249,171			236,757
Accumulated other comprehensive (loss)		(150,951	)		(172,554	)
Treasury stock, at cost; 1,748,059 and 1,818,936 shares in 2024 and 2023, respectively		(24,084	)		(25,093	)
TOTAL STOCKHOLDERS' EQUITY		439,678			404,415
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,236,503		$	5,078,350

See accompanying notes

2

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES

	(In Thousands except Per Share Data)
	For the Three Months Ended						For the Nine Months Ended
	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
INTEREST AND DIVIDEND INCOME
Loans, including fees	$	46,989		$	43,838		$	138,519		$	127,025
Taxable securities		6,761			6,493			19,988			19,697
Tax exempt securities		2,456			2,661			7,546			8,176
Dividends		346			487			1,030			1,457
Federal funds sold and other interest income		1,371			750			2,740			1,911
TOTAL INTEREST AND DIVIDEND INCOME		57,923			54,229			169,823			158,266
INTEREST EXPENSE
Deposits		21,547			17,462			60,096			44,660
Short-term borrowings		3,476			1,960			11,000			5,608
Long-term borrowings		1,024			1,039			3,098			3,042
TOTAL INTEREST EXPENSE		26,047			20,461			74,194			53,310
NET INTEREST INCOME		31,876			33,768			95,629			104,956
Provision for credit losses		6,807			182			7,932			8,232
Provision (credit) for unfunded loans		201			61			(261	)		635
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		24,868			33,525			87,958			96,089
NONINTEREST INCOME
Service charges on deposit accounts		1,992			1,712			5,421			4,646
Bank owned life insurance income		688			694			2,046			1,825
Trust fees		2,544			2,327			7,398			6,665
Insurance agency commissions		1,416			1,116			4,199			3,904
Security (losses), including fair value changes for equity securities		(403	)		(624	)		(2,647	)		(490	)
Retirement plan consulting fees		677			650			1,918			1,837
Investment commissions		476			520			1,386			1,389
Net gains on sale of loans		506			395			1,219			1,111
Other mortgage banking income, net		(168	)		185			150			571
Debit card and EFT fees		1,993			1,763			5,320			5,362
Other operating income		2,619			1,093			3,892			2,885
TOTAL NONINTEREST INCOME		12,340			9,831			30,302			29,705
NONINTEREST EXPENSES
Salaries and employee benefits		14,874			14,233			44,501			42,503
Occupancy and equipment		3,968			3,810			11,512			11,538
FDIC insurance and state and local taxes		1,480			1,648			4,010			4,365
Professional fees		1,084			1,043			3,532			3,347
Merger related costs		0			268			0			5,022
Advertising		435			492			1,312			1,379
Intangible amortization		629			725			1,947			2,856
Core processing charges		1,186			1,274			3,420			3,582
Other operating expenses		3,419			4,223			10,283			10,232
TOTAL NONINTEREST EXPENSES		27,075			27,716			80,517			84,824
INCOME BEFORE INCOME TAXES		10,133			15,640			37,743			40,970
INCOME TAXES		1,598			2,326			6,185			5,614
NET INCOME	$	8,535		$	13,314		$	31,558		$	35,356
EARNINGS PER SHARE - basic	$	0.23		$	0.36		$	0.85		$	0.94
EARNINGS PER SHARE - diluted	$	0.23		$	0.36		$	0.84		$	0.94

See accompanying notes

3

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES

	(In Thousands of Dollars)
	For the Three Months Ended						For the Nine Months Ended
	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
NET INCOME	$	8,535		$	13,314		$	31,558		$	35,356
Other comprehensive income (loss):
Net unrealized holding gains (losses) on available for sale securities		52,472			(75,679	)		25,012			(54,088	)
Reclassification adjustment for losses realized in income on sales		421			618			2,680			498
Reclassification adjustment for (gains) losses realized in income on fair value hedge		(1,903	)		776			(347	)		776
Net unrealized holding gains (losses)		50,990			(74,285	)		27,345			(52,814	)
Income tax effect		(10,708	)		15,600			(5,742	)		11,091
Unrealized holding gains (losses), net of reclassification and tax		40,282			(58,685	)		21,603			(41,723	)
Change in funded status of post-retirement plan, net of tax		0			0			0			0
Other comprehensive income (loss), net of tax		40,282			(58,685	)		21,603			(41,723	)
TOTAL COMPREHENSIVE INCOME (LOSS)	$	48,817		$	(45,371	)	$	53,161		$	(6,367	)

See accompanying notes

4

CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited)

FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES

(Table Dollar Amounts in Thousands except Per Share Data)

							Accumulated
							Other
	Common			Retained			Comprehensive			Treasury
	Stock			Earnings			Income (Loss)			Stock			Total
Balance December 31, 2023	$	365,305		$	236,757		$	(172,554	)	$	(25,093	)	$	404,415
Net income					11,240									11,240
Other comprehensive (loss)								(12,400	)					(12,400	)
Restricted share issuance		(363	)								367			4
Restricted share forfeitures		153									(155	)		(2	)
Stock based compensation expense		662												662
Vesting of Long Term Incentive Plan		(914	)								919			5
Share forfeitures for taxes											(529	)		(529	)
Dividends paid at $0.17 per share					(6,369	)								(6,369	)
Balance March 31, 2024	$	364,843		$	241,628		$	(184,954	)	$	(24,491	)	$	397,026
Net income					11,783									11,783
Other comprehensive (loss)								(6,279	)					(6,279	)
Restricted share issuance		(484	)								489			5
Stock based compensation expense		626												626
Share forfeitures for taxes											(79	)		(79	)
Dividends paid at $0.17 per share					(6,388	)								(6,388	)
Balance June 30, 2024	$	364,985		$	247,023		$	(191,233	)	$	(24,081	)	$	396,694
Net income					8,535									8,535
Other comprehensive income								40,282						40,282
Restricted share issuance		(145	)								146			1
Restricted share forfeitures		34									(35	)		(1	)
Stock based compensation expense		668												668
Share forfeitures for taxes											(114	)		(114	)
Dividends paid at $0.17 per share					(6,387	)								(6,387	)
Balance September 30, 2024	$	365,542		$	249,171		$	(150,951	)	$	(24,084	)	$	439,678
							Accumulated
							Other
	Common			Retained			Comprehensive			Treasury
	Stock			Earnings			Income (Loss)			Stock			Total
Balance December 31, 2022	$	305,340		$	212,375		$	(210,490	)	$	(14,930	)	$	292,295
Net income					7,075									7,075
Other comprehensive income								33,796						33,796
Share issuance as part of a business combination		59,202												59,202
Restricted share issuance		(432	)								437			5
Restricted share forfeitures		21									(21	)		0
Stock based compensation expense		615												615
Vesting of Long Term Incentive Plan		(428	)								431			3
Share forfeitures for taxes											(252	)		(252	)
Treasury share purchases											(11,660	)		(11,660	)
Dividends paid at $0.17 per share					(6,437	)								(6,437	)
Balance March 31, 2023	$	364,318		$	213,013		$	(176,694	)	$	(25,995	)	$	374,642
Net income					14,966									14,966
Other comprehensive (loss)								(16,834	)					(16,834	)
Restricted share issuance		(323	)								326			3
Stock based compensation expense		649												649
Share forfeitures for taxes											(68	)		(68	)
Dividends paid at $0.17 per share					(6,367	)								(6,367	)
Balance June 30, 2023	$	364,644		$	221,612		$	(193,528	)	$	(25,737	)	$	366,991
Net income					13,314									13,314
Other comprehensive (loss)								(58,685	)					(58,685	)
Restricted share issuance		(459	)								464			5
Stock based compensation expense		744												744
Share forfeitures for taxes											(14	)		(14	)
Dividends paid at $0.17 per share					(6,373	)								(6,373	)
Balance September 30, 2023	$	364,929		$	228,553		$	(252,213	)	$	(25,287	)	$	315,982

See accompanying notes.

5

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

FARMERS NATIONAL BANC CORP. AND SUBSIDIARIES

	(In Thousands of Dollars)
	Nine Months Ended
	September 30, 2024			September 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	31,558		$	35,356
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses		7,932			8,232
(Credit) provision for unfunded loans		(261	)		635
Depreciation and amortization		4,604			5,779
Net amortization of securities		453			690
Available for sale security losses		2,680			498
Realized (gains) on equity securities		(33	)		(8	)
(Gain) on debt extinguishment		(444	)		0
Loss on premises and equipment sales and disposals, net		391			149
Stock compensation expense		1,956			2,008
Earnings on bank owned life insurance		(1,921	)		(1,720	)
Income recognized from death benefit on bank owned life insurance		(125	)		(105	)
Origination of loans held for sale		(56,610	)		(52,342	)
Proceeds from loans held for sale		57,094			52,401
Net gains on sale of loans		(1,219	)		(1,111	)
Net change in other assets and liabilities		7,318			(2,012	)
NET CASH FROM OPERATING ACTIVITIES		53,373			48,450
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities and repayments of securities available for sale		42,379			44,870
Proceeds from sales of securities available for sale		48,865			85,306
Purchases of securities available for sale		(60,334	)		(650	)
Proceeds from sales of equity securities		54			46
Purchase of equity securities		(56	)		(52	)
Proceeds from maturities and repayments of SBIC funds		800			754
Purchases of SBIC funds		(1,592	)		(749	)
Proceeds from redemption of regulatory stock		10,065			26,076
Purchase of regulatory stock		(7,544	)		(20,170	)
Loan originations and payments, net		(80,246	)		(24,237	)
Purchase of portfolio loans		(8,069	)		0
Proceeds from loans held for sale previously classified as portfolio loans		1,594			0
Proceeds from BOLI death benefit		556			419
Additions to premises and equipment		(7,245	)		(1,977	)
Net cash paid in business combinations		0			(13,175	)
NET CASH FROM INVESTING ACTIVITIES		(60,773	)		96,461
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits		184,451			74,069
Net change in short-term borrowings		(70,000	)		(170,000	)
Redemption of subordinated debentures		(2,535	)		0
Cash dividends paid		(19,038	)		(19,064	)
Repurchase of common shares		0			(11,544	)
NET CASH FROM FINANCING ACTIVITIES		92,878			(126,539	)
NET CHANGE IN CASH AND CASH EQUIVALENTS		85,478			18,372
Beginning cash and cash equivalents		103,658			75,551
Ending cash and cash equivalents	$	189,136		$	93,923
Supplemental cash flow information:
Interest paid	$	85,457		$	57,384
Supplemental noncash disclosures:
Issuance of stock awards	$	2,195		$	1,658
Issuance of stock for business combinations	$	0		$	59,202
Lease liabilities arising from obtaining right-of-use assets	$	0		$	1,289

See accompanying notes

6

NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

Principles of Consolidation:

Farmers National Banc Corp. (“Company” or “Farmers”) is a Financial Holding Company registered under the Bank Holding Company Act of 1956, as amended. The Company provides full banking services through its nationally chartered subsidiary, The Farmers National Bank of Canfield (“Bank”). The consolidated financial statements also include the accounts of the Bank’s subsidiaries; Farmers National Insurance, LLC (“Insurance”) and Farmers of Canfield Investment Co. (“Investments”). The Company provides trust and retirement consulting services through its subsidiary, Farmers Trust Company (“Trust”), and insurance services through the Bank’s subsidiary, Insurance. Farmers National Captive, Inc. (“Captive”) was a wholly-owned insurance subsidiary of the Company that provided property and casualty insurance coverage to the Company and its subsidiaries until November 2023 when the Company dissolved the entity. Captive pooled resources with eleven similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves and to provide insurance where not available or economically feasible. The consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries, along with the Trust and Captive. All significant intercompany balances and transactions have been eliminated in the consolidation.

Basis of Presentation:

The unaudited consolidated condensed financial statements have been prepared in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report to Shareholders included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). The interim consolidated financial statements include all adjustments (consisting of only normal recurring items) that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year. Certain items included in the prior period financial statements were reclassified to conform to the current period presentation. There was no effect on net income or total stockholders’ equity.

Estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Segments:

The Company provides a broad range of financial services to individuals and companies in northeastern Ohio and western Pennsylvania. Operations are managed and financial performance is primarily aggregated and reported in two lines of business, the Bank segment and the Trust segment.

Equity:

There are 50,000,000 shares authorized and available for issuance as of September 30, 2024. Outstanding shares at September 30, 2024 were 37,573,650.

Comprehensive Income:

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized gains and losses on securities available for sale and changes in the funded status of the post-retirement plan, which are recognized as components of stockholders’ equity, net of tax effect.

7

Updates to Significant Accounting Policies:

New Accounting Standard:

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments of this update are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The main new provision requires significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The amendments of this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

On March 12, 2020, the FASB issued ASU 2020-04 and amended by ASU 2021-01, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, to ease the burden of accounting for contract modifications related to reference rate reform. The amendments in ASU 2020-04 create a new Topic in the Codification, ASC 848, Reference Rate Reform, which contains guidance that is designed to simplify how entities account for contracts that are modified to replace LIBOR or other benchmark interest rates with new rates. The amendments in ASU 2020-04 gave entities the option to apply expedients and exceptions to contract modifications that are made until December 31, 2022, if certain criteria are met. If adopted, these amendments and exceptions should be applied to all eligible modifications to contracts that are accounted for under an ASC Topic or industry Subtopic. The guidance in ASC 848 does not apply to any contract modifications that were made after December 31, 2022. In December 2022, the FASB issued ASU 2022-06 that defers the sunset date from December 31, 2022 to December 31, 2024. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

Business Combinations:

On January 1, 2023, the Company completed its previously announced merger with Emclaire Financial Corp., a Pennsylvania corporation and registered financial holding company (“Emclaire”), pursuant to the Agreement and Plan of Merger dated as of March 23, 2022. The Farmers National Bank of Emlenton, the banking subsidiary of Emclaire, merged with and into The Farmers National Bank of Canfield, the national banking subsidiary of the Company, with Farmers Bank as the surviving bank. Pursuant to the terms of the Merger Agreement, at the effective time of the Merger (the “Effective Time”) Emclaire merged with and into Merger Sub (the “Merger”), with Merger Sub as the surviving entity in the Merger. Promptly following the consummation of the Merger, Merger Sub was dissolved and liquidated and The Farmers National Bank of Emlenton, the banking subsidiary of Emclaire, merged with and into The Farmers National Bank of Canfield, the national banking subsidiary of the Company, with Farmers Bank as the surviving bank. Pursuant to the terms of the Merger Agreement, at the effective time of the merger, each common share, without par value, of Emclaire common shares issued and outstanding was converted into the right to receive, without interest, $40.00 in cash or 2.15 common shares, without par value, of the Company's common shares, subject to an overall limitation of 70% of the Emclaire common shares being exchanged and the remaining 30% of Emclaire common shares being exchanged for the cash. The transaction created expansion for the Company in Pennsylvania and into the Pittsburgh market. The Company issued 4.2 million shares of its common stock along with cash of $33.4 million, which represented a transaction value of approximately $92.6 million based on its closing stock price of $14.12 on December 31, 2022.

In accordance with ASC 805, the Company expensed $268 thousand and $5.0 million of merger related costs, for the Emclaire acquisition, during the three and nine month periods ended September 30, 2023, respectively. There were no merger related expenses recorded during 2024. The Company recorded goodwill of $72.9 million as a result of the combination. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies, including the reduction of personnel and overlapping contracts, expected to be derived from the Company’s strategy to enhance and expand its presence in Pennsylvania. The merger offers the Company the opportunity to increase profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded market area. The goodwill was determined not to be deductible for income tax purposes.

8

The following table summarizes the consideration paid for Emclaire and the amounts of the assets acquired and liabilities assumed on the closing date of the acquisition.

(In Thousands of Dollars)
Consideration
Cash	$	33,440
Stock		59,202
Fair value of total consideration transferred	$	92,642
Fair value of assets acquired
Cash and cash equivalents	$	20,265
Securities available for sale		126,970
Other investments		7,795
Loans, net		740,659
Premises and equipment		14,808
Bank owned life insurance		22,485
Core deposit intangible		19,249
Current and deferred taxes		17,708
Other assets		7,682
Total assets acquired		977,621
Fair value of liabilities assumed
Deposits		875,813
Short-term borrowings		75,000
Accrued interest payable and other liabilities		7,104
Total liabilities		957,917
Net assets acquired	$	19,704
Goodwill created		72,938
Total net assets acquired	$	92,642

The fair value of net assets acquired includes fair value adjustments to certain receivables that were considered performing as of the acquisition date. The fair value adjustments were determined using the income method, discounted cash flow approach. However, the Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered purchase credit deteriorated (“PCD”) at the acquisition date and were not subject to the guidance relating to PCD loans. Receivables acquired that were not subject to these requirements had a fair value and gross contractual amounts receivable of $714.4 million and $764.8 million on the date of acquisition.

The fair value of purchased financial assets that were classified as PCD loans are discussed in the loan footnote.

Securities:

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2024 and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). No allowance for credit losses have been recognized for the securities portfolio at September 30, 2024 or December 31, 2023.

			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
September 30, 2024
U.S. Treasury and U.S. government sponsored entities	$	132,478	$	119	$	(13,004	)	$	119,593
State and political subdivisions		611,001		4,159		(87,438	)		527,722
Corporate bonds		18,494		313		(371	)		18,436
Mortgage-backed securities		601,239		491		(88,517	)		513,213
Collateralized mortgage obligations		116,764		482		(5,485	)		111,761
Small Business Administration		2,822		0		(197	)		2,625
Totals	$	1,482,798	$	5,564	$	(195,012	)	$	1,293,350

9

			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
December 31, 2023
U.S. Treasury and U.S. government sponsored entities	$	145,439	$	113	$	(17,597	)	$	127,955
State and political subdivisions		644,880		4,792		(93,503	)		556,169
Corporate bonds		18,554		187		(466	)		18,275
Mortgage-backed securities		624,529		1		(104,144	)		520,386
Collateralized mortgage obligations		80,227		331		(6,559	)		73,999
Small Business Administration		3,212		0		(295	)		2,917
Totals	$	1,516,841	$	5,424	$	(222,564	)	$	1,299,701

The proceeds from sales of available-for-sale securities and the associated gains and losses are as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
Proceeds	$	4,109		$	15,388		$	48,865		$	85,306
Gross gains		0			0			17			441
Gross losses		(421	)		(618	)		(2,697	)		(939	)

The amortized cost and fair value of the debt securities portfolio are shown in the table below by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call, or prepayment penalties. Securities not due at a single maturity date are shown separately.

	September 30, 2024
(In Thousands of Dollars)	Amortized Cost		Fair Value
Maturity
Within one year	$	3,154	$	3,188
One to five years		66,494		60,894
Five to ten years		162,857		152,018
Beyond ten years		529,468		449,651
Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities		720,825		627,599
Total	$	1,482,798	$	1,293,350

The following table summarizes the investment securities with unrealized losses for which an allowance for credit losses has not been recorded at September 30, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position.

	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands of Dollars)	Value		Loss			Value		Loss			Value		Loss
September 30, 2024
U.S. Treasury and U.S. government sponsored entities	$	2,758	$	(252	)	$	114,823	$	(12,752	)	$	117,581	$	(13,004	)
State and political subdivisions		32,039		(2,730	)		418,686		(84,708	)		450,725		(87,438	)
Corporate bonds		2,392		(34	)		8,857		(337	)		11,249		(371	)
Mortgage-backed securities		0		0			497,592		(88,517	)		497,592		(88,517	)
Collateralized mortgage obligations		20,871		(315	)		49,258		(5,170	)		70,129		(5,485	)
Small Business Administration		0		0			2,625		(197	)		2,625		(197	)
Total	$	58,060	$	(3,331	)	$	1,091,841	$	(191,681	)	$	1,149,901	$	(195,012	)

10

	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands of Dollars)	Value		Loss			Value		Loss			Value		Loss
December 31, 2023
U.S. Treasury and U.S. government sponsored entities	$	399	$	(1	)	$	122,361	$	(17,596	)	$	122,760	$	(17,597	)
State and political subdivisions		15,852		(1,684	)		428,416		(91,819	)		444,268		(93,503	)
Corporate bonds		8,463		(284	)		3,881		(182	)		12,344		(466	)
Mortgage-backed securities		5,113		(76	)		515,259		(104,068	)		520,372		(104,144	)
Collateralized mortgage obligations		20,019		(980	)		43,808		(5,579	)		63,827		(6,559	)
Small Business Administration		0		0			2,917		(295	)		2,917		(295	)
Total	$	49,846	$	(3,025	)	$	1,116,642	$	(219,539	)	$	1,166,488	$	(222,564	)

As of September 30, 2024, the Company’s security portfolio consisted of 944 securities, 756 of which were in an unrealized loss position. The treasury, agency, mortgage-backed securities, collateralized mortgage obligations and small business administration securities that the Company owns are all issued by government sponsored entities and therefore contain no potential for credit loss. The Company does not consider any of its available-for-sale securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses have occurred as a result of changes in noncredit related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. The vast majority of the Company's state and political subdivisions holdings are of high credit quality, and are rated AA or higher. In addition, management has both the ability and intent to hold the securities for a period of time sufficient to allow for the recovery in fair value. As of September 30, 2024, the Company has not recorded an allowance for credit losses on available for sale (“AFS”) securities.

Equity Securities

The Company also holds equity securities which include $15.7 million in Small Business Investment Company (“SBIC”) partnership investments as well as $261 thousand in local and regional bank holdings and other miscellaneous equity funds at September 30, 2024. At December 31, 2023, the Company held $14.9 million in SBIC investments and $226 thousand in local and regional bank holdings and other miscellaneous equity funds. Gains on these equity funds were recognized as income in 2024 and 2023 in compliance with ASU 2016-01, which requires all equity securities to be measured at their fair value with changes in fair value being recognized through the statements of income.

Loans:

Loan balances were as follows:

(In Thousands of Dollars)	September 30, 2024			December 31, 2023
Commercial real estate
Owner occupied	$	396,970		$	399,273
Non-owner occupied		684,603			712,315
Farmland		203,387			202,950
Other		290,801			224,218
Commercial
Commercial and industrial		358,247			346,354
Agricultural		58,386			58,338
Residential real estate
1-4 family residential		852,444			843,697
Home equity lines of credit		155,967			142,441
Consumer
Indirect		239,075			226,815
Direct		20,404			23,805
Other		9,752			9,164
Total loans	$	3,270,036		$	3,189,370
Net deferred loan costs		10,481			8,757
Allowance for credit losses		(36,186	)		(34,440	)
Net loans	$	3,244,331		$	3,163,687

11

Allowance for credit loss activity

The following tables present the activity in the allowance for credit losses by portfolio segment for the three and nine month periods ended September 30, 2024 and 2023:

Three Months Ended September 30, 2024

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate		Consumer			Total
Allowance for credit losses
Beginning balance	$	17,223		$	4,628		$	7,422	$	4,718		$	33,991
(Credit) Provision for credit losses		6,226			(24	)		117		488			6,807
Loans charged off		(4,401	)		(396	)		0		(319	)		(5,116	)
Recoveries		3			407			10		84			504
Total ending allowance balance	$	19,051		$	4,615		$	7,549	$	4,971		$	36,186

Nine Months Ended September 30, 2024

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	18,150		$	5,087		$	6,916		$	4,287		$	34,440
(Credit) Provision for credit losses		5,427			466			676			1,363			7,932
Loans charged off		(4,547	)		(1,411	)		(81	)		(1,020	)		(7,059	)
Recoveries		21			473			38			341			873
Total ending allowance balance	$	19,051		$	4,615		$	7,549		$	4,971		$	36,186

Three Months Ended September 30, 2023

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	18,537		$	5,295		$	6,866		$	4,259		$	34,957
PCD ACL on loans acquired		0			0			0			0			0
(Credit) Provision for credit losses		182			(45	)		13			32			182
Loans charged off		(3	)		(154	)		(157	)		(211	)		(525	)
Recoveries		0			6			12			121			139
Total ending allowance balance	$	18,716		$	5,102		$	6,734		$	4,201		$	34,753

Nine Months Ended September 30, 2023

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	14,840		$	4,186		$	4,374		$	3,578		$	26,978
PCD ACL on loans acquired		850			138			11			0			999
Provision for credit losses		3,185			1,638			2,542			867			8,232
Loans charged off		(160	)		(888	)		(251	)		(666	)		(1,965	)
Recoveries		1			28			58			422			509
Total ending allowance balance	$	18,716		$	5,102		$	6,734		$	4,201		$	34,753

The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company's historical loss experience from December 31, 2011 to September 30, 2024. As of September 30, 2024, the Company expects that the markets in which it operates will experience minimal changes to economic conditions, stable trend in unemployment rate, and a level trend of delinquencies. Management adjusted historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company's estimate was a cumulative loss rate covering the expected contractual term of the portfolio. While there are many factors that go into the calculation of the allowance for credit losses, the change in the balances from September 30, 2023 to September 30,

12

2024 is largely attributed to adjustments made to an increase in the specific reserve related to the individual evaluation of a commercial real estate non-owner occupied loan, adjustments made to the Portfolio Composition and Growth qualitative factor and increased loan balances. These factors were partially offset by adjustments made to the Commercial Staffing qualitative factor and release of reserves related to loans transferred to held for sale.

The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of September 30, 2024 and December 31, 2023:

(In Thousands of Dollars)	Nonaccrual with no allowance for credit loss		Nonaccrual with an allowance for credit loss		Loans past due over 89 days still accruing
September 30, 2024
Commercial real estate
Owner occupied	$	1,576	$	852	$	0
Non-owner occupied		0		8,105		0
Farmland		1,789		5		0
Other		0		0		0
Commercial
Commercial and industrial		224		1,027		0
Agricultural		179		237		0
Residential real estate
1-4 family residential		526		3,489		91
Home equity lines of credit		96		146		0
Consumer
Indirect		87		500		0
Direct		66		75		0
Other		0		6		0
Total loans	$	4,543	$	14,442	$	91

(In Thousands of Dollars)	Nonaccrual with no allowance for credit loss		Nonaccrual with an allowance for credit loss		Loans past due over 89 days still accruing
December 31, 2023
Commercial real estate
Owner occupied	$	1,804	$	830	$	0
Non-owner occupied		19		1,491		0
Farmland		1,957		9		0
Other		0		80		0
Commercial
Commercial and industrial		394		1,408		0
Agricultural		203		317		0
Residential real estate
1-4 family residential		348		3,009		460
Home equity lines of credit		240		210		69
Consumer
Indirect		22		300		125
Direct		65		69		1
Other		0		5		0
Total loans	$	5,052	$	7,728	$	655

The above table for the period ending December 31, 2023 does not include a $1.63 million non-owner occupied commercial real estate loan that was held-for-sale and in nonaccrual status. There were no nonaccrual or past due loans related to loans held-for-sale at September 30, 2024.

13

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2024 and December 31, 2023:

(In Thousands of Dollars)	Real Estate		Business Assets		Vehicles		Cash
September 30, 2024
Commercial real estate
Owner occupied	$	1,576	$	0	$	0	$	0
Non-owner occupied		8,119		0		0		0
Farmland		1,789		0		0		0
Other		0		0		0		0
Commercial
Commercial and industrial		79		145		0		0
Agricultural		0		179		0		0
Residential real estate
1-4 family residential		4,001		0		0		0
Home equity lines of credit		270		0		0		0
Consumer
Indirect		0		0		123		0
Direct		0		0		12		66
Other		0		0		0		0
Total loans	$	15,834	$	324	$	135	$	66

(In Thousands of Dollars)	Real Estate		Business Assets		Vehicles		Cash
December 31, 2023
Commercial real estate
Owner occupied	$	1,804	$	0	$	0	$	0
Non-owner occupied		1,335		0		0		0
Farmland		1,957		0		0		0
Other		0		0		0		0
Commercial
Commercial and industrial		94		867		0		0
Agricultural		0		203		0		0
Residential real estate
1-4 family residential		3,352		0		0		0
Home equity lines of credit		294		0		0		0
Consumer
Indirect		0		0		53		0
Direct		0		0		19		66
Other		0		0		0		0
Total loans	$	8,836	$	1,070	$	72	$	66

14

The following tables present the aging of the recorded investment in past due loans as of September 30, 2024 and December 31, 2023 by class of loans.

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
September 30, 2024
Commercial real estate
Owner occupied	$	706	$	448	$	2,428	$	3,582	$	393,158	$	396,740
Non-owner occupied		3,166		0		8,105		11,271		672,893		684,164
Farmland		0		0		1,794		1,794		201,397		203,191
Other		0		639		0		639		289,761		290,400
Commercial
Commercial and industrial		240		281		1,251		1,772		358,063		359,835
Agricultural		324		115		416		855		58,392		59,247
Residential real estate
1-4 family residential		5,367		1,542		4,106		11,015		841,767		852,782
Home equity lines of credit		672		92		242		1,006		155,066		156,072
Consumer
Indirect		1,285		512		587		2,384		245,505		247,889
Direct		62		11		141		214		20,228		20,442
Other		100		0		6		106		9,649		9,755
Total loans	$	11,922	$	3,640	$	19,076	$	34,638	$	3,245,879	$	3,280,517

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
December 31, 2023
Commercial real estate
Owner occupied	$	302	$	293	$	2,634	$	3,229	$	395,799	$	399,028
Non-owner occupied		90		0		1,510		1,600		710,195		711,795
Farmland		365		0		1,966		2,331		200,395		202,726
Other		0		0		80		80		223,697		223,777
Commercial
Commercial and industrial		540		199		1,802		2,541		345,278		347,819
Agricultural		292		40		520		852		58,223		59,075
Residential real estate
1-4 family residential		6,819		4,488		3,817		15,124		828,437		843,561
Home equity lines of credit		729		34		519		1,282		141,189		142,471
Consumer
Indirect		2,045		289		447		2,781		232,105		234,886
Direct		153		23		135		311		23,514		23,825
Other		4		0		5		9		9,155		9,164
Total loans	$	11,339	$	5,366	$	13,435	$	30,140	$	3,167,987	$	3,198,127

Loan Restructurings

The Company adopted the accounting guidance in ASU No. 2022-02, effective as of January 1, 2023, which eliminates the recognition and measurement of troubled debt restructurings (“TDR”). Due to the removal of the TDR designation, the Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

15

Any restructuring of a loan in which the borrower has experienced financial difficulty and the terms of the loan are more favorable than would generally be considered for borrowers with the same credit characteristics would be individually evaluated. Otherwise, the restructured loan remains in the appropriate segment in the ACL model.

The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2024 and September 30, 2023, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

For the three month period ended September 30, 2024, there were no modifications to borrowers experiencing financial difficulty.

Nine Months Ended September 30, 2024	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Principal Forgiveness		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable
Residential real estate
Home equity lines of credit	$	0	$	0	$	29	$	20	$	49		0.03	%
Total modifications to borrowers experiencing financial difficulty	$	0	$	0	$	29	$	20	$	49		0.00	%

Three Months Ended September 30, 2023	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Principal Forgiveness		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable
Residential real estate
1-4 family residential	$	0	$	0	$	31	$	133	$	164		0.02	%
Total modifications to borrowers experiencing financial difficulty	$	0	$	0	$	31	$	133	$	164		0.01	%

Nine Months Ended September 30, 2023	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Principal Forgiveness		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable
Commercial
Commercial and industrial	$	50	$	0	$	0	$	0	$	50		0.01	%
Residential real estate
1-4 family residential		0		0		31		133		164		0.02	%
Total modifications to borrowers experiencing financial difficulty	$	50	$	0	$	31	$	133	$	214		0.01	%

16

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and September 30, 2023:

For the three month period ended September 30, 2024, there were no loan modification for borrowers experiencing financial difficulty.

	Payment Deferral	Term Extension		Interest Rate Reduction
	Weighted-Average Years Added to the Life	Weighted-Average Years Added to the Life		Weighted-Average Contractual Interest Rate
Nine Months Ended September 30, 2024				From			To
Residential real estate
Home equity lines of credit			10		10.45	%		5.91	%

	Payment Deferral		Term Extension		Interest Rate Reduction
	Weighted-Average Years Added to the Life		Reduction of Amortized Cost Basis of the Loans		Weighted-Average Contractual Interest Rate
Three Months Ended September 30, 2023					From			To
Residential real estate
1-4 family residential				5		4.77	%		3.38	%
	Payment Deferral		Term Extension		Interest Rate Reduction
	Weighted-Average Years Added to the Life		Reduction of Amortized Cost Basis of the Loans		Weighted-Average Contractual Interest Rate
Nine Months Ended September 30, 2023					From			To
Commercial
Commercial and industrial		0.5
Residential real estate
1-4 family residential				5		4.77	%		3.38	%

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the three and nine months ended September 30, 2024 and September 30, 2023:

For the three month period ended September 30, 2024, there were no loan modification for borrowers experiencing financial difficulty.

Nine Months Ended September 30, 2024	Payment status (Amortized cost Basis)
(In Thousands of Dollars)	Current		30-89 Days past due		90+ Days past due
Accrual restructured loans
Residential real estate
Home equity lines of credit	$	0	$	20	$	0
Total accruing restructured loans	$	0	$	20	$	0
Nonaccrual restructured loans
Residential real estate
Home equity lines of credit		0		0		29
Total nonaccrual restructured loans	$	0	$	0	$	29
Total restructured loans	$	0	$	20	$	29

Three Months Ended September 30, 2023	Payment status (Amortized cost Basis)
(In Thousands of Dollars)	Current		30-89 Days past due		90+ Days past due
Residential real estate
1-4 family residential	$	164	$	0	$	0
Total accruing restructured loans	$	164	$	0	$	0
Total restructured loans	$	164	$	0	$	0

17

Nine Months Ended September 30, 2023	Payment status (Amortized cost Basis)
(In Thousands of Dollars)	Current		30-89 Days past due		90+ Days past due
Commercial
Commercial and industrial	$	50	$	0	$	0
Residential real estate
1-4 family residential		164		0		0
Total accruing restructured loans	$	214	$	0	$	0
Nonaccrual restructured loans
Total nonaccrual restructured loans	$	0	$	0	$	0
Total restructured loans	$	214	$	0	$	0

As of September 30, 2024, the Company had no commitments to lend any additional funds on restructured loans.

The following table presents the amortized cost basis of loans that had a payment default during the three and nine months ended September 30, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. For purposes of this disclosure a default occurs when within 12 months of the original modification, a loan is 30 days contractually past due under the modified terms:

Three Months Ended September 30, 2024	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction
Residential real estate
1-4 family residential	$	0	$	37	$	0	$	0
Home equity lines of credit		0		0		29		20
Total modifications to borrowers experiencing financial difficulty	$	0	$	37	$	29	$	20

Nine Months Ended September 30, 2024	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction
Residential real estate
1-4 family residential	$	0	$	37	$	0	$	0
Home equity lines of credit		0		0		29		20
Total modifications to borrowers experiencing financial difficulty	$	0	$	37	$	29	$	20

For the three and nine months ended September 30, 2023, the Company had no loans that defaulted during the period and had been modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance of the credit losses is adjusted by the same amount.

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company establishes a risk rating at origination for all commercial loan and commercial real estate relationships. For relationships over $3 million, management monitors the loans on an ongoing basis for any changes in the borrower’s ability to service their debt. Management also affirms the risk ratings for the loans in their respective portfolios on an annual basis. The Company uses the following definitions for risk ratings:

18

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

As of September 30, 2024 and December 31, 2023, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

(In Thousands of Dollars)	Pass		Special Mention		Sub standard		Doubtful		Total
September 30, 2024
Commercial real estate
Owner occupied	$	385,103	$	4,908	$	6,729	$	0	$	396,740
Non-owner occupied		637,248		9,976		35,765		1,175		684,164
Farmland		200,902		0		2,289		0		203,191
Other		280,656		1,106		8,638		0		290,400
Commercial
Commercial and industrial		348,796		171		10,868		0		359,835
Agricultural		58,760		67		420		0		59,247
Total loans	$	1,911,465	$	16,228	$	64,709	$	1,175	$	1,993,577

(In Thousands of Dollars)	Pass		Special Mention		Sub standard		Total
December 31, 2023
Commercial real estate
Owner occupied	$	386,015	$	9,628	$	3,385	$	399,028
Non-owner occupied		648,063		27,938		35,794		711,795
Farmland		200,240		0		2,486		202,726
Other		215,459		0		8,318		223,777
Commercial
Commercial and industrial		334,764		646		12,409		347,819
Agricultural		58,506		17		552		59,075
Total loans	$	1,843,047	$	38,229	$	62,944	$	1,944,220

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential, consumer indirect and direct loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The above table for the period ending December 31, 2023 does not include a $1.63 million non-owner occupied commercial real estate loan that was held-for-sale and risk rated substandard. There were no special mention or substandard loans related to loans held-for-sale at September 30, 2024. In the 1-4 family residential real estate portfolio at September 30, 2024, other real estate owned and foreclosure properties were $0 and $361 thousand, respectively. At December 31, 2023, other real estate owned and foreclosure properties were $92 thousand and $207 thousand, respectively.

19

The following tables present the recorded investment in residential, consumer indirect and direct auto loans based on payment activity as of September 30, 2024 and December 31, 2023. Nonperforming loans are loans past due 90 days or more and still accruing interest and nonaccrual loans.

	Residential Real Estate				Consumer
(In Thousands of Dollars)	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
September 30, 2024
Performing	$	848,676	$	155,830	$	247,302	$	20,301	$	9,749
Nonperforming		4,106		242		587		141		6
Total loans	$	852,782	$	156,072	$	247,889	$	20,442	$	9,755

	Residential Real Estate				Consumer
(In Thousands of Dollars)	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
December 31, 2023
Performing	$	839,744	$	141,952	$	234,439	$	23,690	$	9,159
Nonperforming		3,817		519		447		135		5
Total loans	$	843,561	$	142,471	$	234,886	$	23,825	$	9,164

The following table presents total loans by risk categories and year of origination:

	Term Loans Amortized Cost Basis by Origination Year
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial real estate - Owner occupied:
Risk Rating
Pass	$	34,754	$	55,619	$	49,745	$	61,781	$	47,164	$	133,476	$	2,564	$	385,103
Special mention		0		3,250		0		1,130		0		528		0		4,908
Substandard		0		0		2,313		0		628		3,600		188		6,729
Total commercial real estate - Owner occupied loans	$	34,754	$	58,869	$	52,058	$	62,911	$	47,792	$	137,604	$	2,752	$	396,740
Commercial real estate - Owner Occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	21	$	0	$	0	$	21
Commercial real estate - Non-owner occupied:
Risk Rating
Pass	$	28,980	$	47,673	$	133,108	$	81,447	$	73,555	$	265,029	$	7,456	$	637,248
Special mention		0		0		536		314		0		9,126		0		9,976
Substandard		7,141		409		0		10,910		6,925		10,380		0		35,765
Doubtful		0		0		0		1,175		0		0		0		1,175
Total commercial real estate - Non-owner occupied loans	$	36,121	$	48,082	$	133,644	$	93,846	$	80,480	$	284,535	$	7,456	$	684,164
Commercial real estate - Non-owner occupied: Current period gross write-offs	$	0	$	0	$	0	$	4,380	$	146	$	0	$	0	$	4,526
Commercial real estate - Farmland:
Risk Rating
Pass	$	11,476	$	22,178	$	39,688	$	19,790	$	32,079	$	72,989	$	2,702	$	200,902
Substandard		0		0		0		319		0		1,970		0		2,289
Total commercial real estate - Farmland loans	$	11,476	$	22,178	$	39,688	$	20,109	$	32,079	$	74,959	$	2,702	$	203,191
Commercial real estate - Other:
Risk Rating
Pass	$	28,993	$	101,466	$	70,158	$	46,221	$	8,595	$	24,624	$	599	$	280,656
Special mention		0		993		0		113		0		0		0		1,106
Substandard		8,602		0		0		0		0		36		0		8,638
Total commercial real estate - Other loans	$	37,595	$	102,459	$	70,158	$	46,334	$	8,595	$	24,660	$	599	$	290,400

20

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial - Commercial and industrial:
Risk Rating
Pass	$	59,602	$	87,280	$	59,819	$	29,847	$	13,538	$	23,284	$	75,426	$	348,796
Special mention		0		0		0		171		0		0		0		171
Substandard		80		87		5,851		281		191		1,804		2,574		10,868
Total commercial - Commercial and industrial loans	$	59,682	$	87,367	$	65,670	$	30,299	$	13,729	$	25,088	$	78,000	$	359,835
Commercial - Commercial and industrial: Current period gross write-offs	$	0	$	231	$	284	$	104	$	220	$	164	$	313	$	1,316
Commercial - Agricultural:
Risk Rating
Pass	$	7,691	$	12,502	$	14,426	$	6,352	$	2,216	$	1,152	$	14,421	$	58,760
Special mention		0		0		0		0		0		0		67		67
Substandard		0		1		45		63		172		139		0		420
Total commercial - Agricultural loans	$	7,691	$	12,503	$	14,471	$	6,415	$	2,388	$	1,291	$	14,488	$	59,247
Commercial - Agricultural: Current period gross write-offs	$	0	$	0	$	36	$	13	$	29	$	17	$	0	$	95
Residential real estate - 1-4 family residential:
Payment Performance
Performing	$	62,632	$	71,869	$	161,600	$	157,665	$	123,755	$	267,898	$	3,257	$	848,676
Nonperforming		0		0		24		299		1,920		1,863		0		4,106
Total residential real estate - 1-4 family residential loans	$	62,632	$	71,869	$	161,624	$	157,964	$	125,675	$	269,761	$	3,257	$	852,782
Residential real estate - 1-4 family residential: Current period gross write-offs	$	0	$	0	$	0	$	17	$	0	$	64	$	0	$	81
Residential real estate - Home equity lines of credit:
Payment Performance
Performing	$	0	$	166	$	61	$	169	$	95	$	4,491	$	150,848	$	155,830
Nonperforming		0		0		29		0		0		161		52		242
Total residential real estate - Home equity lines of credit loans	$	0	$	166	$	90	$	169	$	95	$	4,652	$	150,900	$	156,072

21

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Consumer - Indirect:
Payment Performance
Performing	$	68,575	$	60,128	$	54,533	$	25,248	$	15,820	$	22,998	$	0	$	247,302
Nonperforming		0		81		189		153		68		96		0		587
Total consumer - Indirect loans	$	68,575	$	60,209	$	54,722	$	25,401	$	15,888	$	23,094	$	0	$	247,889
Consumer - Indirect: Current period gross write-offs	$	10	$	65	$	89	$	150	$	93	$	336	$	0	$	743
Consumer - Direct:
Payment Performance
Performing	$	2,246	$	2,539	$	2,735	$	1,489	$	906	$	10,039	$	347	$	20,301
Nonperforming		0		9		6		35		66		25		0		141
Total consumer - Direct loans	$	2,246	$	2,548	$	2,741	$	1,524	$	972	$	10,064	$	347	$	20,442
Consumer - Direct: Current period gross write-offs	$	0	$	7	$	29	$	5	$	5	$	91	$	0	$	137
Consumer - Other:
Payment Performance
Performing	$	0	$	0	$	0	$	60	$	100	$	375	$	9,214	$	9,749
Nonperforming		0		0		0		0		0		1		5		6
Total consumer - Other loans	$	0	$	0	$	0	$	60	$	100	$	376	$	9,219	$	9,755
Consumer - Other: Current period gross write-offs	$	0	$	0	$	1	$	0	$	0	$	139	$	0	$	140

22

	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial real estate - Owner occupied:
Risk Rating
Pass	$	57,983	$	58,178	$	66,205	$	42,023	$	48,849	$	109,831	$	2,946	$	386,015
Special mention		0		293		0		8,779		0		556		0		9,628
Substandard		0		0		0		10		490		2,701		184		3,385
Total commercial real estate - Owner occupied loans	$	57,983	$	58,471	$	66,205	$	50,812	$	49,339	$	113,088	$	3,130	$	399,028
Commercial real estate - Owner Occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	1	$	0	$	0	$	1
Commercial real estate - Non-owner occupied:
Risk Rating
Pass	$	49,177	$	135,433	$	88,188	$	77,713	$	81,079	$	205,729	$	10,744	$	648,063
Special mention		0		0		12,156		0		6,565		9,217		0		27,938
Substandard		0		0		3,972		10,037		3,492		17,794		499		35,794
Total commercial real estate - Non-owner occupied loans	$	49,177	$	135,433	$	104,316	$	87,750	$	91,136	$	232,740	$	11,243	$	711,795
Commercial real estate - Non-owner occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	144	$	201	$	0	$	345
Commercial real estate - Farmland:
Risk Rating
Pass	$	22,576	$	40,101	$	20,890	$	34,036	$	18,634	$	59,900	$	4,103	$	200,240
Substandard		0		0		330		0		26		2,130		0		2,486
Total commercial real estate - Farmland loans	$	22,576	$	40,101	$	21,220	$	34,036	$	18,660	$	62,030	$	4,103	$	202,726
Commercial real estate - Farmland: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	3	$	0	$	3
Commercial real estate - Other:
Risk Rating
Pass	$	68,911	$	56,753	$	47,895	$	9,063	$	8,516	$	23,269	$	1,052	$	215,459
Substandard		0		0		0		8,186		0		132		0		8,318
Total commercial real estate - Other loans	$	68,911	$	56,753	$	47,895	$	17,249	$	8,516	$	23,401	$	1,052	$	223,777

23

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial - Commercial and industrial:
Risk Rating
Pass	$	90,807	$	85,255	$	40,444	$	21,794	$	9,736	$	23,030	$	63,698	$	334,764
Special mention		0		141		355		21		0		0		129		646
Substandard		195		3,551		980		404		1,077		699		5,503		12,409
Total commercial - Commercial and industrial loans	$	91,002	$	88,947	$	41,779	$	22,219	$	10,813	$	23,729	$	69,330	$	347,819
Commercial - Commercial and industrial: Current period gross write-offs	$	0	$	178	$	579	$	11	$	16	$	394	$	0	$	1,178
Commercial - Agricultural:
Risk Rating
Pass	$	13,738	$	17,368	$	8,917	$	3,584	$	1,386	$	1,133	$	12,380	$	58,506
Special mention		0		0		0		0		0		0		17		17
Substandard		0		33		118		225		24		152		0		552
Total commercial - Agricultural loans	$	13,738	$	17,401	$	9,035	$	3,809	$	1,410	$	1,285	$	12,397	$	59,075
Commercial - Agricultural: Current period gross write-offs	$	0	$	15	$	70	$	3	$	0	$	6	$	0	$	94
Residential real estate - 1-4 family residential:
Payment Performance
Performing	$	63,365	$	171,862	$	164,469	$	132,989	$	49,380	$	254,027	$	3,652	$	839,744
Nonperforming		37		58		312		1,645		115		1,650		0		3,817
Total residential real estate - 1-4 family residential loans	$	63,402	$	171,920	$	164,781	$	134,634	$	49,495	$	255,677	$	3,652	$	843,561
Residential real estate - 1-4 family residential: Current period gross write-offs	$	52	$	0	$	49	$	130	$	0	$	129	$	0	$	360
Residential real estate - Home equity lines of credit:
Payment Performance
Performing	$	0	$	19	$	14	$	111	$	51	$	3,302	$	138,455	$	141,952
Nonperforming		0		26		13		15		0		465		0		519
Total residential real estate - Home equity lines of credit loans	$	0	$	45	$	27	$	126	$	51	$	3,767	$	138,455	$	142,471
Residential real estate - Home equity lines of credit: Current period gross write-offs	$	0	$	0	$	0	$	8	$	0	$	16	$	0	$	24

24

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Consumer - Indirect:
Payment Performance
Performing	$	74,425	$	71,705	$	32,528	$	21,163	$	11,395	$	23,223	$	0	$	234,439
Nonperforming		54		108		138		85		26		36		0		447
Total consumer - Indirect loans	$	74,479	$	71,813	$	32,666	$	21,248	$	11,421	$	23,259	$	0	$	234,886
Consumer - Indirect: Current period gross write-offs	$	33	$	138	$	71	$	35	$	23	$	232	$	0	$	532
Consumer - Direct:
Payment Performance
Performing	$	3,552	$	3,812	$	2,203	$	1,352	$	974	$	11,431	$	366	$	23,690
Nonperforming		0		17		0		65		0		53		0		135
Total consumer - Direct loans	$	3,552	$	3,829	$	2,203	$	1,417	$	974	$	11,484	$	366	$	23,825
Consumer - Direct: Current period gross write-offs	$	11	$	38	$	22	$	51	$	9	$	100	$	0	$	231
Consumer - Other:
Payment Performance
Performing	$	0	$	0	$	60	$	103	$	82	$	278	$	8,636	$	9,159
Nonperforming		0		0		0		0		0		5		0		5
Total consumer - Other loans	$	0	$	0	$	60	$	103	$	82	$	283	$	8,636	$	9,164
Consumer - Other: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	20	$	149	$	169

The Company follows ASU 2016-13 to calculate the allowance for credit losses which requires projecting credit losses over the lifetime of the credits. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of any underlying collateral.

The credit loss estimation process involves procedures that consider the unique characteristics of the Company’s loan portfolio segments. These segments are disaggregated into the loan pools for monitoring. A model of risk characteristics, such as loss history and delinquency experience, trends in past due and non-performing loans, as well as existing economic conditions and supportable forecasts are used to determine credit loss assumptions.

The Company uses two methodologies to analyze loan pools. The cohort method and the probability of default/loss given default (“PD/LGD”). Cohort relies on the creation of cohorts to capture loans that qualify for a particular segment, as of a point in time. Those loans are then tracked over their remaining lives to determine their loss experience. The Company aggregates financial assets on the basis of similar risk characteristics when evaluating loans on a collective basis. Those characteristics include, but are not limited to, internal or external credit score, risk ratings, financial asset, loan type, collateral type, size, effective interest rate, term, or geographical location. The Company uses cohort primarily for consumer loan portfolios.

The probability of default portion of PD/LGD is defined by the Company as 90 days past due, placed on non-accrual, loan restructuring for borrowers experiencing financial difficulty or is partially, or wholly, charged-off. Typically, a one-year time period is used to assess probability of default (“PD”). PD can be measured and applied using various risk criteria. Risk rating is one common way to apply PDs. Loss given default LGD is to determine the percentage of loss by facility or collateral type. LGD estimates can sometimes be driven, or influenced, by product type, industry or geography. The Company uses PD/LGD primarily for commercial loan portfolios.

25

The following table presents the loan pools and the associated methodology used during the calculation of the allowance for credit losses in 2024.

Portfolio Segments	Loan Pool	Methodology	Loss Drivers
Residential real estate	1-4 Family Residential Real Estate - 1st Liens	Cohort	Credit Loss History
	1-4 Family Residential Real Estate - 2nd Liens	Cohort	Credit Loss History
Home Equity Lines of Credit	Home Equity Lines of Credit	Cohort	Credit Loss History
Consumer Finance	Cash Reserves	Cohort	Credit Loss History
	Direct	Cohort	Credit Loss History
	Indirect	Cohort	Credit Loss History
Commercial	Commercial and Industrial	PD/LGD	Credit Loss History
	Agricultural	PD/LGD	Credit Loss History
	Municipal	PD/LGD	Credit Loss History
Commercial real estate	Owner Occupied	PD/LGD	Credit Loss History
	Non-Owner Occupied	PD/LGD	Credit Loss History
	Multifamily	PD/LGD	Credit Loss History
	Farmland	PD/LGD	Credit Loss History
	Construction	PD/LGD	Credit Loss History

According to the accounting standard, an entity may make an accounting policy election not to measure an allowance for credit losses for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables for all loan segments. Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being 90 days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows insufficient collateral coverage based on a current assessment of the value of the collateral.

In addition, ASC Topic 326 requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the Company must first establish a loss expectation for extended (funded) commitments. This loss expectation, expressed as a ratio to the amortized cost basis, is then applied to the portion of unfunded commitments not considered unilaterally cancelable, and considered by the company’s management as likely to fund over the life of the instrument. At September 30, 2024, the Company had $681 million in unfunded commitments and set aside $1.58 million in anticipated credit losses. At December 31, 2023, the Company had $753 million in unfunded commitments and set aside $1.84 million in anticipated credit losses. The $72 million decrease in unfunded commitments and $261 thousand decrease in the reserve for anticipated credit losses is due to existing construction loan projects that are moving forward and advances are being made to the loan. This reserve is recorded in other liabilities as opposed to the ACL.

The determination of the ACL is complex and the Company makes decisions on the effects of factors that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgments as to the facts and circumstances related to particular situations or credits. The ACL was $36.2 million at September 30, 2024 and $34.4 million at December 31, 2023. The increase of $1.8 million was due to an increase to the specific reserve related to a non-owner occupied commercial real estate relationship, updates to the Company's delay periods that impacted the loss ratios of certain loan pools under the Cohort methodology, increased Portfolio Composition and growth qualitative factors due to increasing loan balances. These factors were partially offset by the reduction of the specific reserve related to a loan settlement, reduction of the specific reserve related to a payoff of another individually evaluated relationship, and improved loss rates for certain loan pools under the PD/LGD methodology.

26

Purchased Loans

Under ASU Topic 326, when loans are purchased with evidence of more than significant deterioration of credit, they are accounted for as purchase credit deteriorated (“PCD”). PCD loans acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss on the acquisition date. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. During 2024, the Company has not acquired any additional PCD loans. The outstanding balance at September 30, 2024 and related allowance on PCD loans is as follows:

	Loan Balance		ACL Balance
Commercial real estate
Owner Occupied	$	384	$	14
Non-owner Occupied		27,033		475
Farmland		5		0
Commercial
Commercial and industrial		1,690		115
Agricultural		117		7
Residential real estate
1-4 family residential		1,265		7
Home equity lines of credit		3		0
Total	$	30,497	$	618

Revenue from Contracts with Customers:

All material revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. ASC 606 rules govern the disclosure of revenue tied to contracts. The following table presents the Company’s noninterest income by revenue stream and reportable segment, net of eliminations, for the three and nine months ended September 30, 2024 and 2023.

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Three Months Ended September 30, 2024
Service charges on deposit accounts	$	0	$	1,992	$	1,992
Debit card and EFT fees		0		1,993		1,993
Trust fees		2,544		0		2,544
Insurance agency commissions		0		1,416		1,416
Retirement plan consulting fees		677		0		677
Investment commissions		0		476		476
Other (outside the scope of ASC 606)		0		3,242		3,242
Total noninterest income	$	3,221	$	9,119	$	12,340

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Three Months Ended September 30, 2023
Service charges on deposit accounts	$	0	$	1,712	$	1,712
Debit card and EFT fees		0		1,763		1,763
Trust fees		2,327		0		2,327
Insurance agency commissions		0		1,116		1,116
Retirement plan consulting fees		650		0		650
Investment commissions		0		520		520
Other (outside the scope of ASC 606)		0		1,743		1,743
Total noninterest income	$	2,977	$	6,854	$	9,831

27

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Nine Months Ended September 30, 2024
Service charges on deposit accounts	$	0	$	5,421	$	5,421
Debit card and EFT fees		0		5,320		5,320
Trust fees		7,398		0		7,398
Insurance agency commissions		0		4,199		4,199
Retirement plan consulting fees		1,918		0		1,918
Investment commissions		0		1,386		1,386
Other (outside the scope of ASC 606)		0		4,660		4,660
Total noninterest income	$	9,316	$	20,986	$	30,302

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Nine Months Ended September 30, 2023
Service charges on deposit accounts	$	0	$	4,646	$	4,646
Debit card and EFT fees		0		5,362		5,362
Trust fees		6,665		0		6,665
Insurance agency commissions		0		3,904		3,904
Retirement plan consulting fees		1,837		0		1,837
Investment commissions		0		1,389		1,389
Other (outside the scope of ASC 606)		0		5,902		5,902
Total noninterest income	$	8,502	$	21,203	$	29,705

A description of the Company’s revenue streams under ASC 606 follows:

Service charges on deposit accounts – The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements, and determined that the agreements can be terminated at any time by either the Bank or the account holder. Transaction fees, such as balance transfers, wires and overdraft charges are settled the day the performance obligation is satisfied. The Bank’s monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would not require a change in the accounting treatment for these fees under the revenue standards.

Debit Card Interchange Fees – Customers and the Bank have an account agreement and maintain deposit balances with the Bank. Customers use a bank issued debit card to purchase goods and services, and the Bank earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Bank records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. There are no contingent debit card interchange fees recorded by the Company that could be subject to a clawback in future periods.

Trust fees – Services provided to Trust customers are a series of distinct services that have the same pattern of transfer each month. Fees for trust accounts are billed and drafted from trust accounts monthly. The Company records these fees on the income statement on a monthly basis. Fees are assessed based on the total investable assets of the customer’s trust account. A signed contract between the Company and the customer is maintained for all customer trust accounts with payment terms identified. It is probable that the fees will be collectible as funds being managed are accessible by the asset manager. Past history of trust fee income recorded by the Company indicates that it is highly unlikely that a significant reversal could occur. There are no contingent incentive fees recorded by the Company that could be subject to a clawback in future periods.

Insurance Agency Commissions – Insurance agency commissions are received from insurance carriers for the agency’s share of commissions from customer premium payments. These commissions are recorded into income when checks are received from the insurance carriers, and there is no contingent portion associated with these commission checks. There may be a short time-lag in recording revenue when cash is received instead of recording the revenue when the policy is signed by the customer, but the time lag is insignificant and does not impact the revenue recognition process.

28

Insurance also receives incentive checks from the insurance carriers for achieving specified levels of production with particular carriers. These amounts are recorded into income when a check is received, and there are no contingent amounts associated with these payments that may be clawed back by the carrier in the future. Similar to the monthly commissions explained in the preceding paragraph, there may be a short time-lag in recording incentive revenue on a cash basis as opposed to estimating the amount of incentive revenue expected to be earned, this does not materially impact the recognition of Insurance revenue. If there were any amounts that would need to be refunded for one specific Insurance customer, management believes the reversal would not be significant.

Other potential situations surrounding the recognition of Insurance revenue include estimating potential refunds due to the likely cancellation of a percentage of customers canceling their policies and recording revenue at the time of policy renewals.

Retirement Plan Consulting Fees – Revenue is recognized based on the level of work performed for the client. Any payments that are received for work to be performed in the future are recorded in a deferred revenue account, and recorded into income when the fees are earned.

Investment Commissions – Investment commissions are earned through the sales of non-deposit investment products to customers of the Company. The sales are conducted through a third-party broker-dealer. When the commissions are received and recorded into income on the Bank’s income statement, there is no contingent portion that may need to be refunded back to the broker dealer.

Other – Income items included in “Other” are Bank owned life insurance income, security gains, net gains on the sale of loans and other operating income. Any amounts within the scope of ASC 606 are deemed immaterial.

Fair Value:

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

There are three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities;quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Investment Securities

The Company uses a third party service to estimate fair value on available for sale securities on a monthly basis. The Company’s service provider uses a leading evaluation pricing service for U.S. domestic fixed income securities and values securities using exit pricing requirements. The Company independently corroborates the fair value received through this pricing service by obtaining the pricing through a second source at the end of each quarter. The fair values for investment securities, which consist of equity securities that are recorded at fair value to comply with exit pricing, are determined by quoted market prices in active markets, if available (Level 1). The equity securities change in fair value is recorded in the income statement. For securities where quoted prices are not available, fair values are calculated based on quoted prices for similar assets in active markets, quoted prices for similar assets in markets that are not active or inputs other than quoted prices, which provide a reasonable basis for fair value determination. Such inputs may include interest rates and yield curves, prepayment speeds, credit risks and default rates. The inputs used are principally derived from observable market data (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The fair values of Level 3 investment securities are determined by using unobservable inputs to measure fair value of assets for which there is little, if any, market activity at the measurement date, using reasonable inputs and assumptions based on the best information at the time, to the extent that inputs are available without undue cost and effort.

At September 30, 2024, the Company determined that no securities had a fair value less than amortized cost that was as a result of credit deterioration as outlined in ASU 2016-13.

29

Loans Held For Sale, at Fair Value

The fair value of loans held for sale is estimated based upon binding contracts or quotes from third party investors (Level 2).

Mortgage Banking Derivatives

The fair value of mortgage banking derivatives are calculated using derivative valuation models that utilize quoted prices for similar assets adjusted for the specific attributes of the commitments and other observable market data at the valuation date (Level 2).

Loan Servicing Rights

Loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount at the end of each quarter. If the carrying amount of an individual tranche exceeds the fair value then an impairment is recorded on that tranche so that the servicing asset is carried at fair value. The calculation of the fair value is performed by an independent third party and the model uses factors such as the interest rate, prepayment speeds and other default rate assumptions that market participants would use in estimating the future net servicing income that can be validated against available market data (Level 2).

Interest Rate Swaps

The Company periodically enters into interest rate swap agreements with its commercial customers who desire a fixed rate loan term that is longer than the Company is willing to extend. The Company enters into a reciprocal swap agreement with a third party that offsets the interest rate risk from the interest rate extended to the customer. The fair value of these interest rate swap derivative instruments is calculated by an independent third party and are based upon valuation models that use observable market data as of the measurement date (Level 2).

The Company also entered into a fair value hedge to mitigate the risk of further interest rate increases and the subsequent impact on the valuation of the company’s state and political subdivision municipal bond portfolio. The Company uses an independent third party to perform a market valuation analysis for this derivative (Level 2).

Collateral Dependent Loans

Fair value estimates of collateral dependent loans that are individually reviewed are based on the fair value of the collateral, less estimated costs to sell. Loans carried at fair value generally receive individual allocations of the allowance for credit losses in 2023 and 2024. For collateral dependent loans, fair value is commonly based on recent real estate appraisals or in quoted sales price in certain instances. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Adjustments to a quoted price are routinely made to factor in data that affect the marketability of the collateral. Such adjustments, in both instances, are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. These loans are evaluated on a quarterly basis and adjusted accordingly.

Other Real Estate Owned

Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair values are commonly based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

Appraisals for both collateral-dependent loans and other real estate owned are performed by certified general appraisers (for commercial and commercial real estate properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Appraisal Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On an annual basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what adjustments should be made to appraisals to arrive at fair value.

30

Assets measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at September 30, 2024 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Investment securities available-for sale
U.S. Treasury and U.S. government sponsored entities	$	119,593	$	0	$	119,593	$	0
State and political subdivisions		527,722		0		527,722		0
Corporate bonds		18,436		0		17,018		1,418
Mortgage-backed securities-residential		513,213		0		513,213		0
Collateralized mortgage obligations		111,761		0		111,761		0
Small Business Administration		2,625		0		2,625		0
Total investment securities	$	1,293,350	$	0	$	1,291,932	$	1,418
Equity securities	$	261	$	261	$	0	$	0
Loans held for sale		2,852		0		2,852		0
Interest rate swaps		2,739		0		2,739		0
Interest rate lock commitments		96		0		96		0
Financial Liabilities
Interest rate swaps	$	2,739	$	0	$	2,739	$	0
Fair value hedge derivative		1,392		0		1,392		0
Mortgage banking derivative		14		0		14		0

			Fair Value Measurements at December 31, 2023 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Investment securities available-for sale
U.S. Treasury and U.S. government sponsored entities	$	127,955	$	0		127,955	$	0
State and political subdivisions		556,169		0		556,169		0
Corporate bonds		18,275		0		16,935		1,340
Mortgage-backed securities-residential		520,386		0		520,386		0
Collateralized mortgage obligations		73,999		0		73,999		0
Small Business Administration		2,917		0		2,917		0
Total investment securities	$	1,299,701	$	0	$	1,298,361	$	1,340
Equity securities	$	226	$	226	$	0	$	0
Loans held for sale		3,711		0		3,711		0
Interest rate swaps		4,191		0		4,191		0
Interest rate lock commitments		109		0		109		0
Financial Liabilities
Interest rate swaps	$	4,191	$	0	$	4,191	$	0
Fair value hedge derivative		836		0		836		0
Mortgage banking derivative		14		0		14		0

There were no significant transfers between Level 1 and Level 2 during the periods presented above.

31

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months ended September 30				Nine Months ended September 30
(In Thousands of Dollars)	2024		2023		2024		2023
Beginning Balance	$	1,397	$	1,224	$	1,340	$	1
Transfers between levels		0		0		0		0
Acquired and/or purchased		0		0		0		1,600
Discount accretion (premium amortization)		13		11		39		23
Repayments, calls and maturities		0		0		0		(401	)
Changes in unrealized gains (losses)		8		1		39		13
Ending Balance	$	1,418	$	1,236	$	1,418	$	1,236

Assets measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at September 30, 2024 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Individually evaluated loans
Commercial real estate
Non-owner occupied	$	6,944	$	0	$	0	$	6,944
1–4 family residential		1,517		0		0		1,517
Mortgage servicing rights		454		0		454		0

			Fair Value Measurements at December 31, 2023 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Individually evaluated loans
Commercial real estate
Non-owner occupied	$	838	$	0	$	0	$	838
Commercial and industrial		267		0		0		267
1–4 family residential		1,547		0		0		1,547
Mortgage servicing rights		210		0		210		0

32

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods ended September 30, 2024 and December 31, 2023:

September 30, 2024	Fair value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated loans
Commercial real estate	$	6,944	Income Approach	Adjustment for difference between cap rates of comparable sales	(56.03%) - 69.02% (40.71%)
Residential		1,517	Sales comparison	Adjustment for differences between comparable sales	(5.39%) - 2.11% (2.67%)

December 31, 2023	Fair value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated loans
Commercial real estate	$	838	Income approach	Adjustment for difference between cap rates of comparable sales	(49.65%) - 46.77% (16.63%)
Commercial		267	Quoted price for collateral	Offer Price	64.38%
Residential		1,547	Sales comparison	Adjustment for differences between comparable sales	(5.39%) - (2.11%) (2.67%)

The carrying amounts and estimated fair values of financial instruments not previously disclosed at September 30, 2024 and December 31, 2023 are as follows:

	Carrying		Fair Value Measurements at September 30, 2024 Using:
(In Thousands of Dollars)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	189,136	$	21,149	$	167,987	$	0	$	189,136
Regulatory stock		17,678	n/a		n/a		n/a		n/a
Loans, net		3,244,331		0		0		3,136,414		3,136,414
Financial liabilities
Deposits		4,361,837		3,518,405		841,386		0		4,359,791
Short-term borrowings		285,000		0		285,000		0		285,000
Long-term borrowings		86,038		0		76,389		0		76,389

	Carrying		Fair Value Measurements at December 31, 2023 Using:
(In Thousands of Dollars)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	103,658	$	28,896	$	74,762	$	0	$	103,658
Regulatory stock		20,197	n/a		n/a		n/a		n/a
Loans, net		3,163,687		0		0		3,015,732		3,015,732
Financial liabilities
Deposits		4,177,386		3,452,104		719,497		0		4,171,601
Short-term borrowings		355,000		0		355,000		0		355,000
Long-term borrowings		88,663		0		70,893		0		70,893

33

Goodwill and Intangible Assets:

Goodwill associated with the Company’s purchases of Emlenton in January 2023 and other past acquisitions totaled $167.4 million at September 30, 2024 and December 31, 2023. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through an impairment test. Management performs goodwill impairment testing on an annual basis as of September 30, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. As of September 30, 2024, no events or changes in circumstances indicated that the fair value of the reporting unit was below its carrying value. The Company will continue to monitor its goodwill for possible impairment.

Acquired Intangible Assets

Acquired intangible assets were as follows:

	September 30, 2024					December 31, 2023
(In Thousands of Dollars)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer relationship intangibles	$	7,210	$	(7,055	)	$	7,210	$	(6,953	)
Non-compete contracts		457		(423	)		457		(413	)
Trade name		1,126		(461	)		1,126		(440	)
Core deposit intangible		32,115		(12,075	)		32,115		(10,260	)
Total	$	40,908	$	(20,014	)	$	40,908	$	(18,066	)

Aggregate amortization expense was $629 thousand and $1.9 million for the three and nine month periods ended September 30, 2024. Amortization expense was $725 thousand and $2.9 million for the three and nine month periods ended September 30, 2023.

Estimated amortization expense for each of the next five periods and thereafter:

2024 (3 months)	$	629
2025		2,451
2026		2,355
2027		2,242
2028		2,231
Thereafter		10,986
Total	$	20,894

Leases:

The Company has operating leases for branch office locations, vehicles, land and certain office equipment such as printers and copiers. The leases have remaining lease terms of up to 16.8 years, some of which had options to extend the lease for up to 15 years, while the Fairlawn lending building and NAI building leases have the options to terminate in March of 2025.

The right of use assets and lease liabilities were $9.0 million and $9.2 million as of September 30, 2024, respectively, and $8.8 million and $9.0 million at December 31, 2023, respectively. The right of use assets are included in other assets while the lease liabilities are included in other liabilities on the balance sheet.

Lease expense for the three and nine month periods ended September 30, 2024, was $327 thousand and $985 thousand, respectively. Lease expense for the three and nine month periods ended September 30, 2023, was $103 thousand and $820 thousand, respectively. The weighted-average remaining lease term for all leases was 10.13 years as of September 30, 2024. The weighted-average discount rate was 3.16% for all leases as of September 30, 2024.

On January 1, 2023, the Company performed a valuation of Emlenton's leases to determine an initial right of use asset (“ROU asset”) and lease liability in connection with the Merger. The Company recorded an initial ROU asset and lease liability of $1.3 million for these leases.

34

Maturities of lease liabilities are as follows as of September 30, 2024:

2024 (3 months)	$	334
2025		1,282
2026		1,166
2027		1,083
2028		1,097
Thereafter		5,984
Total Payments		10,946
Less: lease liability expense		(1,709	)
Total	$	9,237

Derivative Financial Instruments:

Interest Rate Swaps

The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a variable rate loan while creating a fixed rate loan for the customer by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value of $70.2 million and fair value of $2.7 million in other assets and $2.7 million in other liabilities at September 30, 2024. At December 31, 2023, the Company had interest rate swaps associated with commercial loans with a notional value of $63.9 million and fair value of $4.2 million in other assets and $4.2 million in other liabilities. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820.

There were no net gains or losses for interest rate swaps for the either the three or the nine month periods ended September 30, 2024 and 2023.

Interest Rate Swap Designated as a Fair Value Hedge

The Company has one interest rate swap with a notional amount of $100.0 million that was in place at both September 30, 2024 and December 31, 2023. This swap is designated as a fair value hedge to mitigate the risk of further interest rate increases and the subsequent impact on the valuation of the company’s state and political subdivision municipal bond portfolio. The gross aggregate fair value of the swap at September 30, 2024 was $(1.4) million and was recorded as a $(1.5) million mark to market adjustment in other assets and $152 thousand was recorded to other assets for the accrued interest receivable. At December 31, 2023, the gross aggregate fair value of the swap was $(836) thousand and was recorded as a $(1.3) million mark to market adjustment in other liabilities, and $425 thousand was recorded to other assets for the accrued interest receivable. The Company expects the hedge to remain in effect for the remaining term of the swap, which matures August 2026. A summary of the interest rate swap designated as a fair value hedge is presented below:

	September 30, 2024			December 31, 2023
Notional amount fair value hedge	$	100,000		$	100,000
Fixed pay rates		4.35	%		4.35	%
Variable SOFR receive rates		4.96	%		5.38	%
Remaining maturity (in years)		1.8			2.6
Fair value	$	(1,392	)	$	(836	)

Mortgage Banking Derivatives

Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third-party investors are considered derivatives. The Company enters into forward commitments for the future delivery of residential mortgage loans when the interest rate locks are committed in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships.

35

The net gains (losses) relating to non-designated derivative instruments used for risk management are included in Net Gains on Sale of Loans on the Consolidated Statements of Income and are summarized below for the quarters ended September 30, 2024 and September 30, 2023:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
Forward sales contracts	$	(18	)	$	22		$	0		$	6
Interest rate lock commitments		43			(76	)		(12	)		(19	)

The following table reflects the amount and fair value of mortgage banking derivatives included in the Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023:

	September 30, 2024					December 31, 2023
	Notional		Fair			Notional		Fair
	Amount		Value			Amount		Value
Included in other assets:
Forward sales contracts	$	361	$	2		$	0	$	0
Interest rate lock commitments		9,454		96			7,400		109
Mortgage banking derivative		0		0			0		0
Total included in other assets	$	9,815	$	98		$	7,400	$	109
Included in other liabilities:
Mortgage banking derivative	$	9,500	$	(14	)	$	3,300	$	(14	)

Earnings Per Share:

The computation of basic and diluted earnings per share is shown in the following table:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Basic EPS
Net income (In thousands of dollars)	$	8,535	$	13,314	$	31,558	$	35,356
Weighted average shares outstanding		37,352,872		37,241,383		37,319,035		37,430,782
Basic earnings per share	$	0.23	$	0.36	$	0.85	$	0.94
Diluted EPS
Net income (In thousands of dollars)	$	8,535	$	13,314	$	31,558	$	35,356
Weighted average shares outstanding for basic earnings per share		37,352,872		37,241,383		37,319,035		37,430,782
Dilutive effect of restricted stock awards		214,083		137,971		175,503		102,427
Weighted average shares for diluted earnings per share		37,566,955		37,379,354		37,494,538		37,533,209
Diluted earnings per share	$	0.23	$	0.36	$	0.84	$	0.94

There were no restricted stock awards that were considered anti-dilutive for the three month period ended September 30, 2024 and 167,178 restricted stock awards that were considered anti-dilutive for the nine month period ended September 30, 2024. There were 13,046 and 204,105 restricted stock awards that were considered anti-dilutive for the three and nine month periods ended September 30, 2023, respectively.

Stock Based Compensation:

In April of 2022, the Company, with the approval of shareholders, created the 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan permits the award of up to one million shares to the Company’s directors and employees to attract and retain exceptional personnel, motivate performance and, most importantly, to help align the interests of the Company’s executives with those of the Company’s shareholders. The 2022 Plan replaced the 2017 Plan. There were 71,925 service time based share awards and 99,253 performance based share awards granted under the 2022 Plan during the nine month period ended September 30, 2024, as shown in the table below. The actual number of performance based shares issued will depend on the relative performance of the Company’s average return on

36

equity compared to a group of peer companies over a three year vesting period, ending December 31, 2026. As of September 30, 2024, 563,681 shares are still available to be awarded from the 2022 Plan. The 2017 Plan has been sunset.

The restricted stock awards were granted with a fair value price equal to the market price of the Company’s common stock at the date of the grant. Expense recognized was $668 thousand and $2.0 million for the three and nine month periods ended September 30, 2024, respectively. During prior periods, the expense recognized was $744 thousand and $2.0 million for the three and nine month periods ended September 30, 2023, respectively. As of September 30, 2024, there was $3.0 million of total unrecognized compensation expense related to the nonvested shares granted under the Plan. The remaining cost is expected to be recognized over 2.4 years.

The following is the activity under the Plans during the nine month period ended September 30, 2024.

	Maximum Awarded Service Units			Weighted Average Grant Date Fair Value		Maximum Awarded Performance Units			Weighted Average Grant Date Fair Value
Beginning balance - non-vested shares		253,776		$	14.97		209,484		$	15.01
Granted		71,925			12.97		99,253			13.81
Vested		(91,256	)		12.76		(66,192	)		13.79
Forfeited		(13,667	)		16.35		(19,625	)		15.05
Ending balance - non-vested shares		220,778		$	14.30		222,920		$	14.57

The following is the activity under the Plans during the nine month period ended September 30, 2023.

	Maximum Awarded Service Units			Weighted Average Grant Date Fair Value		Maximum Awarded Performance Units			Weighted Average Grant Date Fair Value
Beginning balance - non-vested shares		193,015		$	16.69		137,369		$	15.85
Granted		87,391			12.88		102,750			14.16
Vested		(30,990	)		12.92		(30,635	)		14.35
Forfeited		(1,541	)		17.64		0			0.00
Ending balance - non-vested shares		247,875		$	15.40		209,484		$	15.01

The 157,448 shares that vested during the nine month period ended September 30, 2024 had a weighted average fair value of $13.19 per share.

37

Other Comprehensive Income (Loss):

The following tables represent the changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and nine month periods ended September 30, 2024 and 2023.

(In Thousands of Dollars)	Net unrealized holding (losses) gains on available for sale securities			Reclassification adjustment for (gains) losses realized in income on fair value hedge			Change in funded status of post-retirement plan			Total
Balance December 31, 2023	$	(171,539	)	$	(1,013	)	$	(2	)	$	(172,554	)
Other comprehensive (loss) before reclassification		(15,149	)		0			0			(15,149	)
Amounts reclassified from accumulated other comprehensive income		1,686			1,063			0			2,749
Net current period other comprehensive (loss) income		(13,463	)		1,063			0			(12,400	)
Balance March 31, 2024	$	(185,002	)	$	50		$	(2	)	$	(184,954	)
Other comprehensive (loss) before reclassification		(6,545	)		0			0			(6,545	)
Amounts reclassified from accumulated other comprehensive income		99			167			0			266
Net current period other comprehensive (loss) income		(6,446	)		167			0			(6,279	)
Balance June 30, 2024	$	(191,448	)	$	217		$	(2	)	$	(191,233	)
Other comprehensive income before reclassification		41,452			0			0			41,452
Amounts reclassified from accumulated other comprehensive income		333			(1,503	)		0			(1,170	)
Net current period other comprehensive income (loss)		41,785			(1,503	)		0			40,282
Balance September 30, 2024	$	(149,663	)	$	(1,286	)	$	(2	)	$	(150,951	)
Balance December 31, 2022	$	(210,489	)	$	0		$	(1	)	$	(210,490	)
Other comprehensive income before reclassification		33,891			0			0			33,891
Amounts reclassified from accumulated other comprehensive (loss)		(95	)		0			0			(95	)
Net current period other comprehensive income		33,796			0			0			33,796
Balance March 31, 2023	$	(176,693	)	$	0		$	(1	)	$	(176,694	)
Other comprehensive (loss) before reclassification		(16,834	)		0			0			(16,834	)
Amounts reclassified from accumulated other comprehensive income		0			0			0			0
Net current period other comprehensive (loss)		(16,834	)		0			0			(16,834	)
Balance June 30, 2023	$	(193,527	)	$	0		$	(1	)	$	(193,528	)
Other comprehensive (loss) before reclassification		(59,786	)		0			0			(59,786	)
Amounts reclassified from accumulated other comprehensive income		488			613			0			1,101
Net current period other comprehensive (loss) income		(59,298	)		613			0			(58,685	)
Balance September 30, 2023	$	(252,825	)	$	613		$	(1	)	$	(252,213	)

Amounts reclassified out of each component of accumulated other comprehensive income (loss) were not material for the three and nine month periods ended September 30, 2024 and 2023.

38

Regulatory Capital Matters:

Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action by regulators that, if undertaken, could have a direct material effect on the financial statements. Management believes that as of September 30, 2024, the Company and the Bank meet all capital adequacy requirements to which they are subject.

The FDIC and other federal banking regulators revised the risk-based capital requirements applicable to financial holding companies and insured depository institutions, including the Company and the Bank, to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision (“Basel III”).

The common equity tier 1 capital, tier 1 capital and total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. The leverage ratio is calculated by dividing tier 1 capital by adjusted average total assets.

Basel III limits capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity tier 1 capital, tier 1 capital and total capital to risk-weighted assets in addition to the amount necessary to meet minimum risk-based capital requirements. Excluding the additional buffer, Basel III requires the Company and the Bank to maintain (i) a minimum ratio of common equity tier 1 capital to risk-weighted assets of at least 4.5%, (ii) a minimum ratio of tier 1 capital to risk-weighted assets of at least 6.0%, (iii) a minimum ratio of total capital to risk-weighted assets of at least 8.0% and (iv) a minimum leverage ratio of at least 4.0%.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At September 30, 2024 and December 31, 2023, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

39

Actual and required capital amounts and ratios, which do not include the capital conservation buffer, are presented below at September 30, 2024 and December 31, 2023:

	Actual					Requirement For Capital Adequacy Purposes:					To be Well Capitalized Under Prompt Corrective Action Provisions:
	Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2024
Common equity tier 1 capital ratio
Consolidated	$	406,169		10.91	%	$	167,578		4.5	%	N/A		N/A
Bank		426,179		11.46	%		167,368		4.5	%		241,753		6.5	%
Total risk based capital ratio
Consolidated		533,935		14.34	%		297,916		8.0	%	N/A		N/A
Bank		463,945		12.47	%		297,543		8.0	%		371,928		10.0	%
Tier 1 risk based capital ratio
Consolidated		424,169		11.39	%		223,437		6.0	%	N/A		N/A
Bank		426,179		11.46	%		223,157		6.0	%		297,543		8.0	%
Tier 1 leverage ratio
Consolidated		424,169		8.20	%		206,949		4.0	%	N/A		N/A
Bank		426,179		8.26	%		206,383		4.0	%		257,978		5.0	%
December 31, 2023
Common equity tier 1 capital ratio
Consolidated	$	392,244		10.61	%	$	166,303		4.5	%	N/A		N/A
Bank		411,304		11.15	%		165,996		4.5	%	$	239,772		6.5	%
Total risk based capital ratio
Consolidated		519,684		14.06	%		295,650		8.0	%	N/A		N/A
Bank		447,584		12.13	%		295,104		8.0	%		368,881		10.0	%
Tier 1 risk based capital ratio
Consolidated		410,244		11.10	%		221,737		6.0	%	N/A		N/A
Bank		411,304		11.15	%		221,328		6.0	%		295,104		8.0	%
Tier 1 leverage ratio
Consolidated		410,244		8.02	%		204,598		4.0	%	N/A		N/A
Bank		411,304		8.07	%		203,989		4.0	%		254,986		5.0	%

Segment Information:

The reportable segments are determined by the products and services offered, primarily distinguished between banking and trust. These segments are also distinguished by the level of information provided to the chief operating decision makers in the Company, who use such information to review performance of various components of the business, which are then aggregated. Loans, investments, and deposits provide the revenues in the banking operation. All operations are domestic. Significant segment totals are reconciled to the financial statements as follows:

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
September 30, 2024
Goodwill and other intangibles	$	5,643	$	186,960	$	(4,263	)	$	188,340
Total assets	$	15,640	$	5,223,757	$	(2,894	)	$	5,236,503

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
December 31, 2023
Goodwill and other intangibles	$	5,680	$	188,871	$	(4,263	)	$	190,288
Total assets	$	15,845	$	5,065,150	$	(2,645	)	$	5,078,350

40

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Three Months Ended September 30, 2024
Net interest income	$	45	$	32,854	$	(1,023	)	$	31,876
Provision for credit losses and unfunded loans		0		7,008		0			7,008
Service fees, security gains and other noninterest income		3,311		8,876		153			12,340
Noninterest expense		1,786		23,417		371			25,574
Amortization and depreciation expense		14		1,340		147			1,501
Income before taxes		1,556		9,965		(1,388	)		10,133
Income taxes		328		1,561		(291	)		1,598
Net income	$	1,228	$	8,404	$	(1,097	)	$	8,535

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Nine Months Ended September 30, 2024
Net interest income	$	159	$	98,568	$	(3,098	)	$	95,629
Provision for credit losses and unfunded loans		0		7,671		0			7,671
Service fees, security gains and other noninterest income		9,503		21,224		(425	)		30,302
Noninterest expense		5,515		68,996		1,402			75,913
Amortization and depreciation expense		52		4,177		375			4,604
Income before taxes		4,095		38,948		(5,300	)		37,743
Income taxes		862		6,437		(1,114	)		6,185
Net income	$	3,233	$	32,511	$	(4,186	)	$	31,558

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Three Months Ended September 30, 2023
Net interest income	$	81	$	34,679	$	(992	)	$	33,768
Provision for credit losses and unfunded loans		0		243		0			243
Service fees, security gains and other noninterest income		2,994		6,847		(10	)		9,831
Noninterest expense		1,679		23,873		484			26,036
Amortization and depreciation expense		22		1,544		114			1,680
Income before taxes		1,374		15,866		(1,600	)		15,640
Income taxes		289		2,416		(379	)		2,326
Net income	$	1,085	$	13,450	$	(1,221	)	$	13,314

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Nine Months Ended September 30, 2023
Net interest income	$	195	$	107,663	$	(2,902	)	$	104,956
Provision for credit losses and unfunded loans		0		8,867		0			8,867
Service fees, security gains and other noninterest income		8,562		21,770		(627	)		29,705
Noninterest expense		4,976		72,464		1,604			79,044
Amortization and depreciation expense		68		5,372		340			5,780
Income before taxes		3,713		42,730		(5,473	)		40,970
Income taxes		781		6,122		(1,289	)		5,614
Net income	$	2,932	$	36,608	$	(4,184	)	$	35,356

41

The Bank segment includes Farmers National Insurance and Farmers of Canfield Investment Co.

Short-term borrowings:

At September 30, 2024, the Bank did not have any short-term advances from the Federal Home Loan Bank (“FHLB”). At December 31, 2023, the Bank had $70.0 million of short-term advances from the FHLB, which were at an interest rate of 5.41%. This short-term borrowing was borrowed using the FHLB's overnight repurchase advance program, as this product allows the most flexibility to meet the Bank's varying liquidity needs. These FHLB advances were secured by pledged assets which are described in the following Long-Term Borrowings footnote.

In addition, the Bank had $285.0 million in short-term borrowings at both September 30, 2024 and December 31, 2023. The current borrowing matures in January 2025 and has a fixed interest rate of 4.76%. These borrowings are secured by securities with a par value of $288.0 million.

The Bank has access to a line of credit for $25.0 million at a major domestic bank that is below prime rate. The line and terms are periodically reviewed by the lending bank and is generally subject to withdrawal at their discretion. There were no outstanding borrowings under this line at September 30, 2024, or December 31, 2023.

Farmers has one unsecured revolving line of credit for $5.0 million. This line can be renewed annually and has an interest rate of prime with a floor of 3.5%. There was no outstanding balance on this line at either September 30, 2024, or December 31, 2023.

Long-term borrowings:

There were no long-term advances from the FHLB at September 30, 2024, or at December 31, 2023.

Long-term and short-term FHLB advances are secured by a blanket pledge of residential mortgage, commercial real estate, and multi-family loans totaling $1.7 billion at September 30, 2024 and $1.6 billion at December 31, 2023. Based on this collateral, the Bank is eligible to borrow an additional $695.8 million at September 30, 2024.

In November 2021, the Company completed the issuance of $75.0 million aggregate principal amount, fixed-to-floating rate subordinated notes due December 15, 2031, in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended. The notes carry a fixed rate of 3.125% for five years at which time they will convert to a floating rate based on the three-month term secured overnight funding rate, plus a spread of 220 basis points. The net proceeds from the sale were approximately $73.8 million, after deducting the offering expenses. The Company’s intent was to use the proceeds from the sale for general corporate purposes, which may include, without limitation, providing capital to support its growth organically or through acquisitions, in financing investments, capital expenditures, repurchasing its common shares and for investments in the Bank as regulatory capital. The subordinated debentures are included in Total Capital under current regulatory guidelines and interpretations.

In August 2024, the Company bought back and retired $3 million of the outstanding subordinated notes. The Company may, at its option, beginning December 15, 2026, redeem additional portions of the notes, in whole or in part, from time to time, subject to certain conditions.

On November 1, 2021, the Company completed its acquisition of Cortland, which included the assumption of Floating Rate Junior Subordinated Debt Securities due in September 15, 2037 (the “junior subordinated debt securities”) at an acquisition-date fair value of $4.3 million, held in a wholly-owned statutory trust whose common securities were wholly-owned by Cortland. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The securities bear interest at a rate of 1.45% over the 3-month term SOFR rate that includes an additional spread adjustment of 26 basis points. The rate at September 30, 2024 was 6.66% and at December 31, 2023 the rate was 7.10%.

On January 7, 2020, the Company completed its acquisition of Maple Leaf, which included the assumption of Floating Rate Junior Subordinated Debt Securities due December 15, 2036 (the “junior subordinated debt securities”) held in a wholly-owned statutory trust whose common securities were wholly-owned by Maple Leaf. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The

42

securities bear interest at a rate of 1.70% over the 3-month term SOFR rate that includes an additional spread adjustment of 26 basis points. The rate at September 30, 2024 was 7.01% and at December 31, 2023 the rate was 7.45%.

In 2015, the Company completed its acquisition of National Bancshares Corporation, which included the assumption of Floating Rate Junior Subordinated Debt Securities due June 15, 2035 (the “junior subordinated debt securities”) held in a wholly-owned statutory trust, TSEO Statutory Trust I. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The securities bear interest at a rate of 1.80% over the 3-month term SOFR rate that includes an additional spread adjustment of 26 basis points. The rate at September 30, 2024 was 6.91% and at December 31, 2023 the rate was 7.35%.

In all three instances, the Company may redeem the junior subordinated debentures at any quarter-end, in whole, or in part, at par. This type of subordinated debenture qualifies as Tier 1 capital for regulatory purposes in determining and evaluating the Company’s capital adequacy.

A summary of all junior subordinated debentures issued by the Company to affiliates and subordinated debentures follows. For the junior subordinated debentures, these amounts represent the par value of the obligations owed to these affiliates, including the Company’s equity interest in the trusts along with any unamortized fair value marks. For the subordinated debentures, these amounts represent the par value less the remaining deferred offering expense associated with the issuance of the debentures. Balances were as follows at September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
	Amount		Amount
TSEO Statutory Trust I	$	2,558	$	2,521
Maple Leaf Financial Statutory Trust II		7,908		7,740
Cortland Statutory Trust I		4,423		4,382
Total junior subordinated debentures owed to unconsolidated subsidiary trusts	$	14,889	$	14,643
Subordinated Debentures	$	71,149	$	74,020
Total long-term borrowings	$	86,038	$	88,663

Qualified affordable housing project investments:

The Company invests in qualified affordable housing projects. At September 30, 2024 and December 31, 2023, the balance of the investment for qualified affordable housing projects was $22.6 million and $17.9 million, respectively. Total unfunded commitments related to the investments in qualified affordable housing projects totaled $15.1 million and $12.3 million at September 30, 2024 and December 31, 2023. The Company expects to complete the fulfillment of these commitments during the year ending 2038.

In the third quarters ended September 30, 2024 and September 30, 2023, the Company recognized amortization expense of $513 thousand and $426 thousand, respectively, which was included within income tax expense on the consolidated statements of income. In both of the nine month periods ended September 30, 2024 and September 30, 2023, the Company recognized amortization expense of $1.3 million, which was included within income tax expense on the consolidated statements of income.

Additionally, during the third quarters ended September 30, 2024 and September 30, 2023, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $602 thousand and $558 thousand, respectively. For both of the nine month periods ended September 30, 2024 and September 30, 2023, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $1.6 million.

During the nine month periods ended September 30, 2024 and September 30, 2023, the Company did not incur any impairment losses related to its investment in affordable housing tax credits.

43

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Note Regarding Forward Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are not statements of historical fact, but rather statements based on the Company’s current expectations, beliefs and assumptions regarding the future of Farmers’ business, future plans and strategies, projections, anticipated events and trends, its intended results and future performance, the economy and other future conditions. Forward-looking statements are preceded by terms such as “will,” “would,” “should,” “could,” “may,” “expect,” “estimate,” “believe,” “anticipate,” “intend,” “plan,” “project,” or variations of these words, or similar expressions. Forward-looking statements are not a guarantee of future performance and actual future results could differ materially from those contained in forward-looking information. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Numerous uncertainties, risks, and changes could cause or contribute to Farmers’ actual results, performance, and achievements to be materially different from those expressed or implied by the forward-looking statements.

Factors that could cause or contribute to such differences include, without limitation, risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission (the “Commission”), including without limitation, the risk factors disclosed in Item 1A, “Risk Factors,” in the Company’s 2023 Form 10-K, as updated in Item 1A, “Risk Factors,” in this Quarterly Report on Form 10-Q.

Many of these factors are beyond the Company’s ability to control or predict, and readers are cautioned not to put undue reliance on those forward-looking statements. The following, which is not intended to be an all-encompassing list, summarizes several factors that could cause the Company’s actual results to differ materially from those anticipated or expected in any forward-looking statement:

•general economic conditions in markets where the Company conducts business, which could materially impact credit quality trends;

•the length and extent of the economic impacts of the COVID-19 pandemic;

•the length and extent of the economic impacts of the ongoing conflict in Ukraine;

•actions by the Federal Reserve Board, U.S. Treasury and other government agencies, including those that impact money supply, market interest rates and inflation;

•disruptions in the mortgage and lending markets and significant or unexpected fluctuations in interest rates related to governmental responses to inflation, including financial stimulus packages and interest rate changes;

•general business conditions in the banking industry;

•the regulatory environment;

•general fluctuations in interest rates;

•demand for loans in the market areas where the Company conducts business;

•rapidly changing technology and evolving banking industry standards;

•competitive factors, including increased competition with regional and national financial institutions;

•Farmers' ability to attract, recruit and retain skilled employees; and

•new service and product offerings by competitors and price pressures.

Other factors not currently anticipated may also materially and adversely affect the Company’s results of operations, cash flows and financial position. There can be no assurance that future results will meet expectations. While the Company believes that the forward-looking statements in the presentation are reasonable, you should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. The Company does not undertake, and expressly disclaims, any obligation to update or alter any statements whether as a result of new information, future events or otherwise, except as may be required by applicable law.

44

Results of Operations. The following is a comparison of selected financial ratios and other results at or for the three and nine month periods ended September 30, 2024 and 2023:

	At or for the Three Months Ended September 30,						At or for the Nine Months Ended September 30,
(In Thousands, except Per Share Data)	2024			2023			2024			2023
Total assets	$	5,236,503		$	4,971,163		$	5,236,503		$	4,971,163
Net income	$	8,535		$	13,314		$	31,558		$	35,356
Diluted earnings per share	$	0.23		$	0.36		$	0.84		$	0.94
Return on average assets (annualized)		0.66	%		1.06	%		0.83	%		0.93	%
Return on average equity (annualized)		8.18	%		14.49	%		10.51	%		12.79	%
Net loans to assets		61.96	%		63.04	%		61.96	%		63.04	%
Loans to deposits		75.21	%		70.23	%		75.21	%		70.23	%

Net Income. The Company reported net income of $8.5 million, or $0.23 per diluted share, for the quarter ended September 30, 2024 compared to $13.3 million, or $0.36 per diluted share, for the quarter ended September 30, 2023. The results for the third quarter of 2024 were impacted by a single $12.5 million commercial credit backed by office space which resulted in a $4.4 million charge-off along with the establishment of a specific reserve on the credit in the amount of $1.2 million.

Net income for the nine months ended September 30, 2024 was $31.6 million, or $0.84 per diluted share, compared to $35.4 million, or $0.94 per diluted share, for the nine months ended September 30, 2023. The decrease in net income was due to a decline in net interest income partially offset by lower noninterest expense.

Net Interest Income. The following schedule details the various components of net interest income for the periods indicated. All asset yields are calculated on a tax-equivalent basis where applicable. Security yields are based on amortized cost.

45

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)

	Three Months Ended							Three Months Ended
	September 30, 2024							September 30, 2023
	AVERAGE							AVERAGE
	BALANCE		INTEREST		RATE (1)			BALANCE		INTEREST		RATE (1)
EARNING ASSETS
Loans (2)	$	3,241,603	$	47,060		5.81	%	$	3,153,309	$	43,928		5.57	%
Taxable securities		1,104,264		6,761		2.45			1,132,959		6,492		2.29
Tax-exempt securities (2)		379,551		2,992		3.15			413,117		3,251		3.15
Other investments		34,873		346		3.97			42,581		487		4.57
Federal funds sold and other		130,053		1,371		4.22			78,922		751		3.81
TOTAL EARNING ASSETS		4,890,344		58,530		4.79			4,820,888		54,909		4.56
Nonearning assets		243,718							215,445
TOTAL ASSETS	$	5,134,062						$	5,036,333
INTEREST-BEARING LIABILITIES
Time deposits	$	753,163	$	7,584		4.03	%	$	677,291	$	5,308		3.13	%
Brokered time deposits		26,062		286		4.39			145,839		1,882		5.16
Savings deposits		1,103,269		4,372		1.59			1,099,682		2,625		0.95
Demand deposits - interest bearing		1,411,520		9,305		2.64			1,412,922		7,647		2.16
Total interest-bearing deposits		3,294,014		21,547		2.62			3,335,734		17,462		2.09
Short term borrowings		289,652		3,477		4.80			141,717		1,961		5.53
Long term borrowings		87,368		1,023		4.68			88,494		1,038		4.69
Total borrowed funds		377,020		4,500		4.77			230,211		2,999		5.21
TOTAL INTEREST-BEARING LIABILITIES		3,671,034		26,047		2.84			3,565,945		20,461		2.30
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits - noninterest bearing		983,274							1,052,062
Other liabilities		62,427							50,726
Stockholders' equity		417,327							367,600
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,134,062						$	5,036,333
Net interest income and interest rate spread			$	32,483		1.95	%			$	34,448		2.26	%
Net interest margin						2.66	%						2.86	%

(1)Rates are calculated on an annualized basis.

(2)Interest on certain tax-exempt loans and tax-exempt securities in 2024 and 2023 is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%

46

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)

	Nine Months Ended  September 30, 2024							Nine Months Ended  September 30, 2023
	AVERAGE BALANCE		INTEREST		RATE (1)			AVERAGE BALANCE		INTEREST		RATE (1)
EARNING ASSETS
Loans (2)	$	3,212,799	$	138,746		5.76	%	$	3,144,817	$	127,293		5.40	%
Taxable securities		1,108,055		19,988		2.41			1,153,804		19,697		2.28
Tax-exempt securities (2)		389,094		9,174		3.14			422,151		10,048		3.17
Other investments		34,243		1,030		4.01			40,211		1,457		4.83
Federal funds sold and other		93,601		2,740		3.90			78,224		1,911		3.26
TOTAL EARNING ASSETS		4,837,792		171,678		4.73			4,839,207		160,406		4.42
Nonearning assets		229,966							219,762
TOTAL ASSETS	$	5,067,758						$	5,058,969
INTEREST-BEARING LIABILITIES
Time deposits	$	741,450	$	21,865		3.93	%	$	636,939	$	13,171		2.76	%
Brokered time deposits		8,751		286		4.36			145,115		4,889		4.49
Savings deposits		1,096,788		12,087		1.47			1,128,760		6,981		0.82
Demand deposits - interest bearing		1,386,390		25,857		2.49			1,421,208		19,619		1.84
Total interest-bearing deposits		3,233,379		60,095		2.48			3,332,022		44,660		1.79
Short term borrowings		304,607		11,000		4.81			145,509		5,608		5.14
Long term borrowings		88,304		3,098		4.68			88,382		3,043		4.59
Total borrowed funds		392,911		14,098		4.78			233,891		8,651		4.93
TOTAL INTEREST-BEARING LIABILITIES		3,626,290		74,193		2.73			3,565,913		53,311		1.99
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits		983,576							1,075,493
Other liabilities		57,577							48,936
Stockholders' equity		400,315							368,627
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,067,758						$	5,058,969
Net interest income and interest rate spread			$	97,485		2.00	%			$	107,095		2.43	%
Net interest margin						2.69	%						2.95	%

(1)Rates are calculated on an annualized basis.

(2)Interest on certain tax-exempt loans and tax-exempt securities in 2024 and 2023 is not taxable for Federal income tax purposes. In order to compare the tax-exempt yields on these assets to taxable yields, the interest earned on these assets is adjusted to a pre-tax equivalent amount based on the marginal corporate federal income tax rate of 21%

Net Interest Income. Net interest income for the three months ended September 30, 2024, was $31.9 million compared to $33.8 million for the three months ended September 30, 2023. A 20 basis point decline in the net interest margin was the primary reason for this decrease.

The net interest margin for the three month period ended September 30, 2024, was 2.66% compared to 2.86% for the same period in 2023. Interest-earning asset yields increased 23 basis points in the third quarter of 2024 compared to the third quarter of 2023 while the cost of interest-bearing liabilities increased 54 basis points when comparing these two periods. This increase in funding costs has been due to the rapid increase in deposit rates, intense competition for deposits and the Federal Reserve rate hiking cycle which resulted in an inverted yield curve. This increase in funding costs continues to outstrip the increases on the yield of interest-earning assets pushing the net interest margin lower.

Net interest income for the nine month period ended September 30, 2024, was $95.6 million compared to $105.0 million for the same period in 2023. The decrease in net interest income was driven by the same factors as discussed above. The net interest margin was 2.69% for the nine month period ended September 30, 2024 compared to 2.95% for the same period in 2023. The decline in net interest margin for the nine month period ended September 30, 2024, was also driven by the same factors discussed previously.

Provision for Credit Losses and Provision for Unfunded Loans. The provision for credit losses and unfunded commitments totaled $7.0 million for the three months ended September 30, 2024, compared to $243,000 for the three months ended September 30, 2023. The increased provision for credit losses was primarily due to the increased level of net charge-offs and reserving activity resulting from the

47

deterioration in a single commercial real estate credit backed by office space. Strong loan growth during the quarter also increased provision costs during the quarter.

For the first nine months of 2024, the Company recorded a provision for credit losses and unfunded loans of $7.7 million compared to $8.9 million for the same period in 2023. Included in the $8.9 million figure in 2023 was a Day 1 provision for credit losses and provision for unfunded loans under the current expected credit loss model (“CECL”) of $7.7 million related to the acquisition of Emlenton. There was no Day 1 provision recorded in 2024.

Noninterest Income. Noninterest income for the third quarter of 2024 was of $12.3 million compared to $9.8 million for the third quarter of 2023. This increase was due to solid growth in the Company’s fee based business lines along with gains from SBIC funds and a $444 thousand gain on the purchase of $3 million of the Company’s subordinated debt.

Service charges on deposit accounts increased $280 thousand to $2.0 million for the third quarter of 2024 compared to $1.7 million for the third quarter in 2023. The Company undertook a review of all service charges in late 2023 and early 2024 and implemented fee increases across deposit product lines in the second quarter of 2024. Trust fees increased by $217 thousand to $2.5 million at September 30, 2024, from $2.3 million at September 30, 2023. The increase was due to continued growth in the business unit. Insurance agency commissions grew to $1.4 million in the third quarter of 2024 from $1.1 million in the third quarter of 2023. The increase has been driven by strong growth in fixed annuity sales. Losses on the sale of securities totaled $403 thousand in the third quarter of 2024 compared to losses on the sale of securities of $624 thousand during the third quarter of 2023. Net gains on the sale of loans increased to $506 thousand in the third quarter of 2024 compared to $395 thousand in the third quarter of 2023. Greater saleable volume drove this increase. Other mortgage banking fee income was a loss of $168 thousand for the third quarter of 2024 compared to income of $185 thousand during the third quarter of 2023. The decline in income was due to an impairment charge on the Company’s higher coupon mortgage servicing right tranches in the third quarter of 2024. Debit card income grew to $2.0 million in the third quarter of 2024 from $1.8 million in the third quarter of 2023 as better volumes were realized in the current period. Other noninterest income increased from $1.1 million in the third quarter of 2023 to $2.6 million in the third quarter of 2024. The Company recorded $854 thousand more in SBIC income in the third quarter of 2024 compared to the same period in 2023. In addition, the Company purchased $3.0 million of its subordinated debt during the third quarter of 2024 recording a gain of $444 thousand. In the third quarter of 2023, the Company had no gains from the purchase of subordinated debt but instead recorded losses of $110 thousand on assets held for sale.

For the nine months ended September 30, 2024, noninterest income increased by $597 thousand compared to the nine months ended September 30, 2023. The increase was primarily due to growth in service charges and the Company's fee based businesses offset by security losses of $2.6 million in the first nine months of 2024 compared to security losses of $490 thousand for the first nine months of 2023.

Service charges on deposit accounts increased by $775 thousand in the first nine months of 2024 compared to the same period in 2023 due to the fee increases discussed above. Bank owned life insurance income increased to $2.0 million for the nine months ended September 30, 2024 compared to $1.8 million for the nine months ended September 30, 2023 as crediting rates on the insurance policies continue to increase. Trust fees increased to $7.4 million in the first nine months of 2024 from $6.7 million in the first nine months of 2023 due to continued strong growth in this line of business. Insurance agency commissions were $4.2 million for the first nine months of 2024 compared to $3.9 million for the same period in 2023. Strong annuity sales in 2024 drove the increase. Other mortgage banking fee income declined to $150 thousand for the nine months ended September 30, 2024 compared to $571 thousand for the same time in 2023. The decline was primarily due to the impairment charge discussed above. Other noninterest income increased to $3.9 million in the first nine months of 2024 from $2.9 million in the first nine months of 2023. The Company recorded $897 thousand more in SBIC income in the first nine months of 2024 compared to the same period in 2023.

Noninterest Expense. Noninterest expense totaled $27.1 million for the quarter ended September 30, 2024 compared to $27.7 million for the quarter ended September 30, 2023. The third quarter of 2023 included $268 thousand of merger related charges. There were no merger related expenses during the third quarter of 2024. Salaries and employee benefits were $14.9 million in the third quarter of 2024 compared to $14.2 million in the third quarter of 2023. The increase was primarily driven by higher salaries associated with employee raises along with higher health care expenses. FDIC and state and local taxes decreased by $168 thousand to $1.5 million for the third quarter of 2024 compared to $1.6 million for the third quarter of 2023 due to lower FDIC premiums. Intangible amortization declined to $629 thousand in the third quarter of 2024 from $725 thousand for the third quarter of 2023. This decrease was driven by amortization from a prior acquisition running off. Other noninterest expense decreased $804 thousand in the third quarter of 2024 to $3.4 million from $4.2 million in the third quarter of 2023. The primary reason for the decrease was due to a $785 thousand charge incurred in 2023 for the settlement of a lawsuit.

For the nine months ended September 30, 2024, noninterest expense decreased to $80.5 million from $84.8 million for the nine months ended September 30, 2023. In 2023, the Company incurred $5.0 million of merger related costs while no merger costs were incurred in

48

2024. Salaries and employee benefits increased to $44.5 million in the first nine months of 2024 compared to $42.5 million in the first nine months of 2023. The increase was primarily driven by salary increases associated with employee raises along with increased healthcare costs. FDIC and state and local taxes decreased $355 thousand to $4.0 million for the first nine months of 2024 compared to $4.4 million for the first nine months of 2023 due to improvements in the Bank's FDIC assessment variables. Professional fees increased $185 thousand for the nine months ended September 30, 2024, compared to the first nine months of 2023 primarily due to increased legal fees. Intangible amortization declined $909 thousand in the first nine months of 2024 to $1.9 million compared to $2.9 million for the first nine months of 2023. This decrease was driven by accelerated amortization that occurred in 2023 that did not reoccur in 2024 and amortization from a prior acquisition running off.

Income Taxes. Income tax expense was $1.6 million for the three months ended September 30, 2024 compared to $2.3 million for the three months ended September 30, 2023. The decrease in tax expense was primarily due to the decline in income before income taxes.

Income tax expense increased from $5.6 million for the nine months ended September 30, 2023 to $6.2 million for the nine months ended September 30, 2024. The increase in tax expense was primarily due to the Company dissolving Farmers National Captive, Inc. in November of 2023 so the Company is no longer receiving the tax benefits associated with this business.

Financial Condition

Cash and Cash Equivalents. Cash and cash equivalents increased $85.5 million during the first nine months of 2024 to $189.1 million from $103.7 million at December 31, 2023. The increase in the cash balances was primarily due to the Company intentionally holding more liquidity on its balance sheet at September 30, 2024.

Securities. Securities available-for-sale decreased to $1.29 billion at September 30, 2024, from $1.30 billion at December 31, 2023. Gross unrealized losses on the portfolio totaled $195.0 million at September 30, 2024, compared to gross unrealized losses of $222.6 million at December 31, 2023. In addition to the changes in the gross unrealized loss on the securities, the Company has also received $91.2 million in proceeds from the sale, maturity and repayments on securities during the first nine months of 2024. This has been partially offset by purchases totaling $60.3 million through the first nine months of 2024.

Loans. Net loans (excluding loans held for sale) increased to $3.28 billion at September 30, 2024 from $3.20 billion at December 31, 2023. The increase in 2024 has been due to growth in every major category of loans.

The following tables present the amortized cost basis of the Company's commercial real estate portfolio segment by industry as of September 30, 2024 and December 31, 2023:

(In Thousands of Dollars)	Amortized Cost		% of Commercial Real Estate			% of Total Portfolio			Weighted Average Loan-to-Value			Weighted Average Occupancy
September 30, 2024
Commercial real estate
Retail	$	339,876		21.59	%		10.36	%		53.65	%		85.27	%
Farmland		203,191		12.90	%		6.19	%		49.67	%		100.00	%
Warehouse/Industrial		185,107		11.76	%		5.64	%		54.14	%		72.41	%
Office		188,297		11.96	%		5.74	%		54.23	%		74.17	%
Multifamily		168,528		10.70	%		5.14	%		61.25	%		76.72	%
Medical		149,113		9.47	%		4.55	%		46.27	%		92.61	%
Hotel		44,729		2.84	%		1.36	%		45.59	%		79.64	%
Special Purpose		91,306		5.80	%		2.78	%		53.33	%		98.65	%
Restaurant		53,816		3.42	%		1.64	%		50.72	%		100.00	%
Multifamily - Construction		61,214		3.89	%		1.87	%		53.11	%		29.28	%
All Other		89,318		5.67	%		2.72	%		49.81	%		95.41	%
Total	$	1,574,495		100.00	%		47.99	%

49

(In Thousands of Dollars)	Amortized Cost		% of Commercial Real Estate			% of Total Portfolio			Weighted Average Loan-to-Value			Weighted Average Occupancy
December 31, 2023
Commercial real estate
Retail	$	354,953		23.09	%		11.10	%		55.16	%		85.26	%
Farmland		202,726		13.19	%		6.34	%		51.24	%		100.00	%
Warehouse/Industrial		166,291		10.82	%		5.20	%		56.04	%		70.99	%
Office		175,020		11.38	%		5.47	%		53.91	%		75.04	%
Multifamily		153,410		9.98	%		4.80	%		63.10	%		85.79	%
Medical		154,890		10.08	%		4.84	%		51.51	%		92.64	%
Hotel		49,695		3.23	%		1.55	%		48.64	%		79.59	%
Special Purpose		99,152		6.45	%		3.10	%		55.10	%		99.88	%
Restaurant		56,460		3.67	%		1.77	%		53.17	%		100.00	%
Multifamily - Construction		27,860		1.81	%		0.87	%		59.02	%		22.06	%
All Other		96,869		6.30	%		3.03	%		47.10	%		95.30	%
Total	$	1,537,326		100.00	%		48.07	%

Allowance for Credit Losses. The following table indicates key asset quality ratios that management evaluates on an ongoing basis. The recorded investment balances were used in the calculations.

Asset Quality History

(In Thousands of Dollars)

	9/30/2024			6/30/2024			3/31/2024			12/31/2023			9/30/2023
Nonperforming loans	$	19,076		$	12,870		$	11,951		$	15,063		$	18,368
Nonperforming loans as a % of total loans		0.58	%		0.40	%		0.38	%		0.47	%		0.58	%
Non-performing assets	$	19,137		$	12,975		$	12,215		$	15,229		$	18,522
Non-performing assets as a % of total assets		0.37	%		0.25	%		0.24	%		0.30	%		0.37	%
Loans delinquent 30-89 days	$	15,562		$	18,546		$	14,069		$	16,705		$	13,314
Loans delinquent 30-89 days as a % of total loans		0.47	%		0.57	%		0.44	%		0.52	%		0.42	%
Allowance for credit losses	$	36,186		$	33,991		$	33,159		$	34,440		$	34,753
Allowance for credit losses as a % of total loans		1.10	%		1.05	%		1.04	%		1.08	%		1.10	%
Allowance for credit losses as a % of nonperforming loans		189.69	%		264.11	%		277.46	%		228.64	%		189.20	%
Net charge-offs for the quarter	$	4,612		$	563		$	1,011		$	800		$	386
Annualized net charge-offs to average net loans outstanding		0.58	%		0.07	%		0.13	%		0.10	%		0.05	%

ASU 2022-02 was adopted on January 1, 2023 and such, non-performing loans balances include prior period TDRs and subsequent to January 1, 2023, loans with modifications to borrowers with financial difficulty are included in non-performing loans.

The Company's allowance for credit losses increased to $36.2 million for the period ended September 30, 2024, from $34.4 million for the period ended December 31, 2023. This increase was primarily driven by loan growth and the $1.2 million specific reserve placed on the one commercial loan in the third quarter of 2024. The Company estimates the ACL based on the amortized cost basis of the underlying loan and has made an accounting policy election to exclude accrued interest from the loan’s amortized cost basis and the related measurement of the ACL. Estimating the amount of the ACL is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge-offs, trends in past due and nonaccrual loans, and the level of potential problem loans, all of which may be susceptible to significant change.

Based on the evaluation of the adequacy of the allowance for credit losses, management believes that the allowance for credit losses at September 30, 2024 is adequate. The provision for credit losses is based on management’s judgment after taking into consideration all factors connected with the collectability of the existing loan portfolio. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Specific factors considered by management in determining the amounts charged to operating expenses include previous credit loss experience, the status of past

50

due interest and principal payments, the quality of financial information supplied by loan customers and the general condition of the industries in the community to which loans have been made.

Deposits. Total deposits increased to $4.36 billion at September 30, 2024 from $4.18 billion at December 31, 2023. This increase was primarily due to growth in interest-bearing deposits as customers seek higher yields on their deposit balances offset by declines in non-interest bearing deposits. In addition, the Company acquired $74.9 million of brokered time deposits which it used to pay down short-term borrowings.

Short-term Borrowings. Total short-term borrowing balances decreased from $355.0 million at December 31, 2023 to $285.0 million at September 30, 2024. This decrease was due to the Company using the proceeds from brokered time deposits to pay down short-term borrowings.

Total Stockholders' Equity. Total stockholders’ equity increased to $439.7 million at September 30, 2024 from $404.4 million at December 31, 2023. The increase was primarily due to a $21.6 million reduction in the accumulated other comprehensive loss offset by growth in retained earnings of $12.4 million.

The capital management function is a regular process that consists of providing capital for both the current financial position and the anticipated future growth of the Company. At September 30, 2024, the Company is required to maintain 4.5% common equity tier 1 to risk weighted assets excluding the conservation buffer to be adequately capitalized. The Company’s common equity tier 1 to risk weighted assets was 10.91%, total risk-based capital ratio stood at 14.34%, and the Tier 1 risk-based capital ratio and Tier 1 leverage ratio were at 11.39% and 8.20%, respectively, at September 30, 2024. Management believes that the Company and the Bank meet all capital adequacy requirements to which they are subject, as of September 30, 2024.

Federal bank regulatory agencies finalized a rule that simplifies capital requirements for community banks by allowing them to adopt a simple leverage ratio to measure capital adequacy. The community bank leverage ratio framework removes requirements for calculating and reporting risk-based capital ratios for a qualifying community bank that opts into the framework. The Company has not elected to adopt this framework.

Critical Accounting Policies

The Company follows financial accounting and reporting policies that are in accordance with U.S. GAAP. These policies are presented in Note 1 of the consolidated audited financial statements in the Company’s Annual Report to Shareholders included in the Company’s 2023 Form 10-K. Critical accounting policies are those policies that require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. The Company has identified two accounting policies that are critical accounting policies and an understanding of these policies is necessary to understand the Company’s financial statements. These policies relate to determining the adequacy of the allowance for credit losses and if there is any impairment of goodwill or other intangible. Additional information regarding these policies is included in the notes to the aforementioned 2023 consolidated financial statements, Note 1 (Summary of Significant Accounting Policies), Note 4 (Loans), and the sections captioned “Loan Portfolio.”

Farmers maintains an allowance for credit losses. The allowance for credit losses is presented as a reserve against loans on the balance sheets. Credit losses are charged off against the allowance for credit losses, while recoveries of amounts previously charged off are credited to the allowance for credit losses. A provision for credit losses is charged to operations based on management’s periodic evaluation of adequacy of the allowance.

The Company’s allowance for credit losses represents management’s estimate of expected credit losses over the remaining expected life of the Company’s financial assets measured at amortized cost and certain off-balance sheet lending-related commitments.

The allowance for credit losses involves significant judgment on a number of matters including the weighting of macroeconomic forecasts and microeconomic statistics, incorporation of historical loss experience, assessment of risk characteristics, assignment of risk ratings, valuation of collateral, and the determination of remaining expected life. Refer to Note 4 for further information on these judgments as well as the Company’s policies and methodologies used to determine the Company’s allowance for credit losses.

51

A significant judgment involved in estimating the Company’s allowance for credit losses relates to the macroeconomic forecasts used to estimate credit losses over the four-quarter forecast period within the Company’s methodology. The four-quarter forecast incorporates three macroeconomic variables (“MEV”) that are relevant for exposures across the Company.

•U.S. changes in real gross domestic product (GDP).

•U.S. personal consumption expenditures (PCE) inflation.

•U.S. civilian unemployment rate.

Changes in the Company’s assumptions and forecasts of economic conditions could significantly affect its estimate of expected credit losses in the portfolio at the balance sheet date or lead to significant changes in the estimate from one reporting period to the next.

It is difficult to estimate how potential changes in any one factor or input might affect the overall allowance for credit losses because management considers a wide variety of factors and inputs in estimating the allowance for credit losses. Changes in the factors and inputs considered may not occur at the same rate and may not be consistent across all product types, and changes in factors and inputs may be directionally inconsistent, such that improvement in one factor or input may offset deterioration in others.

To consider the impact of a hypothetical alternate macroeconomic forecast, the Company compared the modeled credit losses determined using its central and relative adverse macroeconomic scenarios. The central and relative adverse scenarios each included the three MEVs, but differed in the levels, paths and peaks/troughs of those variables over the four-quarter forecast period.

For example, compared to the Company’s central scenario that is based on a four-quarter forecasted change in U.S. real GDP of 2.00% from 4Q2024 to 4Q2025 U.S. PCE inflation of 2.10%, and U.S. unemployment of 4.40%, the Company’s relative adverse scenario assumes a four-quarter forecast with a contraction of U.S. real GDP, a PCE inflation between 5.00% and 7.00% and an elevated U.S. unemployment rate between 6.00% and 7.00%. This analysis is not intended to estimate expected future changes in the allowance for credit losses, for a number of reasons, including:

•The impacts of changes in the MEVs are both interrelated and nonlinear, so the results of this analysis cannot be simply extrapolated for more severe changes in macroeconomic variables.

•Expectations of future changes in portfolio composition and borrower behavior can significantly affect the allowance for credit losses.

To demonstrate the sensitivity of credit loss estimates to macroeconomic forecasts as of September 30, 2024, the Company compared the modeled estimates under its relative adverse scenario for two of the Company’s largest loan pools to its central scenario for the same loan pools. Without considering offsetting or correlated effects in other qualitative components of the Company’s allowance for credit losses, the comparison between these two scenarios for the exposures below reflect the following differences:

•An increase of approximately $650 thousand for residential real estate loans and lending-related commitments

•An increase of approximately $1.14 million for commercial real estate non-owner occupied loans and lending-related commitments

This analysis relates only to the modeled credit loss estimates and is not intended to estimate changes in the overall allowance for credit losses as it does not reflect any potential changes in the other adjustments to the quantitative calculation, which would also be influenced by the judgment management applies to the modeled lifetime loss estimates to reflect the uncertainty and imprecision of these modeled lifetime loss estimates based on then-current circumstances and conditions.

Recognizing that forecasts of macroeconomic conditions are inherently uncertain, the Company believes that its process to consider the available information and associated risks and uncertainties is appropriately governed and that its estimates of expected credit losses were reasonable and appropriate for the period ended September 30, 2024.

The Company uses two methodologies to analyze loan pools. The cohort method and the PD/LGD. Cohort relies on the creation of cohorts to capture loans that qualify for a particular segment, as of a point in time. Those loans are then tracked over their remaining lives to determine their loss experience. The Company aggregates financial assets on the basis of similar risk characteristics when evaluating loans on a collective basis. Those characteristics include, but are not limited to, internal or external credit score, risk ratings, financial asset, loan type, collateral type, size, effective interest rate, term, or geographical location. The Company uses cohort primarily for consumer loan portfolios.

52

The PD portion of PD/LGD is defined by the Company as 90 days past due, placed on non-accrual, or is partially or wholly charged-off. Typically, a one-year time period is used to assess PD. PD can be measured and applied using various risk criteria. Risk rating is one common way to apply PDs. LGD is to determine the percentage of loss by facility or collateral type. LGD estimates can sometimes be driven, or influenced, by product type, industry or geography. The Company uses PD/LGD primarily for commercial loan portfolios.

Management believes that the accounting for goodwill and other intangible assets also involves a higher degree of judgment than most other significant accounting policies. GAAP establishes standards for the amortization of acquired intangible assets and the impairment assessment of goodwill. Goodwill arising from business combinations represents the value attributable to unidentifiable intangible assets in the business acquired. The Company’s goodwill relates to the value inherent in the banking industry and that value is dependent upon the ability of the Company’s subsidiaries to provide quality, cost-effective services in a competitive marketplace. The goodwill value is supported by revenue that is in part driven by the volume of business transacted. A decrease in earnings resulting from a decline in the customer base or the inability to deliver cost-effective services over sustained periods can lead to impairment of goodwill that could adversely impact earnings in future periods. GAAP requires an annual evaluation of goodwill for impairment, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The fair value of the goodwill is estimated by reviewing the past and projected operating results for the subsidiaries and comparable industry information. At September 30, 2024, on a consolidated basis, Farmers had intangibles of $20.9 million subject to amortization and $167.4 million in goodwill, which was not subject to periodic amortization.

Liquidity

The Company maintains, in the opinion of management, liquidity sufficient to satisfy depositors’ requirements and meet the credit needs of customers. The Company depends on its ability to maintain its market share of deposits as well as acquiring new funds. The Company’s ability to attract deposits and borrow funds depends in large measure on its profitability, capitalization and overall financial condition. The Company’s objective in liquidity management is to maintain the ability to meet loan commitments, purchase securities or to repay deposits and other liabilities in accordance with their terms without an adverse impact on current or future earnings. Principal sources of liquidity for the Company include assets considered relatively liquid, such as federal funds sold, cash-due from banks, as well as cash flows from maturities and repayments of loans, and to a lesser extent securities.

Along with its liquid assets, the Bank has additional sources of liquidity available which help to ensure that adequate funds are available as needed. These other sources include, but are not limited to, access to funds in the wholesale arena, the ability to obtain deposits through the adjustment of interest rates and the purchasing of federal funds and borrowings on approved lines of credit at major domestic banks. At September 30, 2024, this line of credit totaled $25.0 million of which the Bank had not borrowed against. In addition, the Company has a revolving line of credit with a correspondent bank totaling $5.0 million. There was no balance on this line at September 30, 2024 and December 31, 2023. Management feels that its liquidity position is adequate and will continue to monitor the position on a monthly basis. As of September 30, 2024, the Bank had no outstanding balances with the FHLB. Additional borrowing capacity at the FHLB was approximately $695.8 million at September 30, 2024. The Company also has access to the Federal Reserve Discount Window, which provides an additional source of funds with the posting of collateral. The Bank views its membership in the FHLB as a solid source of liquidity.

Off-Balance Sheet Arrangements

In the normal course of business, to meet the financial needs of our customers, we are a party to financial instruments with off-balance sheet risk. These financial instruments generally include commitments to originate mortgage, commercial and consumer loans, and involve to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the Consolidated Balance Sheets. The Bank’s maximum exposure to credit loss in the event of nonperformance by the borrower is represented by the contractual amount of those instruments. Because some commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The same credit policies are used in making commitments as are used for on-balance sheet instruments. Collateral is required in instances where deemed necessary. Undisbursed balances of loans closed include funds not disbursed but committed for construction projects. Unused lines of credit include funds not disbursed, but committed for, home equity, commercial and consumer lines of credit. Financial standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. Those guarantees are primarily used to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Total unused commitments were $731.7 million at September 30, 2024, and $805.4 million at December 31, 2023. Additionally, the Company has committed up to $20.2 million in subscriptions in SBIC investment funds. At September 30, 2024, the Company had invested $16.5 million in these funds.

53

Recent Market and Regulatory Developments

Various and significant legislation affecting financial institutions and the financial industry is from time to time introduced in the U.S. Congress and state legislatures, as well as by regulatory agencies. Such initiatives may include proposals to expand or contract the powers of bank holding companies and depository institutions or proposals to substantially change the financial institution regulatory system.

Also, such statutes, regulations and policies are continually under review by Congress, state legislatures and federal and state regulatory agencies and are subject to change at any time, particularly in the current economic and regulatory environment. Any such change in statutes, regulations or regulatory policies applicable to the Company could have a material effect on the business of the Company.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Important considerations in asset/liability management are liquidity, the balance between interest rate sensitive assets and liabilities and the adequacy of capital. Interest rate sensitive assets and liabilities are those which have rates subject to change within a future time period due to maturity of the instrument or changes in market rates. While liquidity management involves meeting the funds flow requirements of the Company, the management of interest rate sensitivity focuses on the structure of these assets and liabilities with respect to maturity and repricing characteristics. Managing interest rate sensitive assets and liabilities provides a means of tempering fluctuating interest rates and maintaining net interest margins through periods of changing interest rates. The Company monitors interest rate sensitive assets and liabilities to determine the overall interest rate position over various time frames.

The Company considers the primary market exposure to be interest rate risk. Simulation analysis is used to monitor the Company’s exposure to changes in interest rates, and the effect of the change to net interest income. The following table shows the effect on net interest income and the net present value of equity from a sudden and sustained 400 basis point increase to a 400 basis point decrease in market interest rates. The assumptions and predictions include inputs to compute baseline net interest income, expected changes in rates on interest bearing deposit accounts and loans, competition and various other factors that are difficult to accurately predict.

Changes In Interest Rate (basis points)	September 30, 2024 Result			December 31, 2023 Result			ALCO Guidelines
Net Interest Income Change
+400		-7.0	%		-6.2	%		-12.5	%
+300		-5.5	%		-5.0	%		-10.0	%
+200		-3.7	%		-3.4	%		-7.5	%
+100		-1.9	%		-1.9	%		-5.0	%
-100		1.5	%		1.4	%		-5.0	%
-200		2.5	%		2.3	%		-10.0	%
-300		3.4	%		3.1	%		-15.0	%
-400		3.3	%		2.7	%		-20.0	%
Net Present Value Of Equity Change
+400		-36.1	%		-36.4	%		-12.5	%
+300		-26.9	%		-26.8	%		-10.0	%
+200		-17.1	%		-17.3	%		-7.5	%
+100		-8.3	%		-8.7	%		-5.0	%
-100		4.4	%		5.3	%		-10.0	%
-200		5.1	%		7.2	%		-15.0	%
-300		0.5	%		5.1	%		-20.0	%
-400		-1.4	%		3.5	%		-25.0	%

The yield curve has changed dramatically over the past two years. In an intense effort to diffuse inflation, the Federal Open Market Committee raised the discount rate 5.25% from March 2022 to July 2023, the fastest pace on record. The committee then held the discount rate at 5.5% until September 2024 when they cut the discount rate by 50 basis points, and set the rate at 5.0% in an attempt to guide the economy into a “soft landing”, where the still comparatively elevated rate of 5.0% will continue to bring down inflation without harming the job market or the economy.

The above table presents results in the up rate scenarios that exceed internal policy limits for the Economic Value of Equity (“EVE”) for both the current quarter end as well as the last year end. This unprecedented outcome was created by the events occurring over the past two years, namely, the massive influx of liquidity in the form of deposits in 2020 and 2021 from government assistance while interest rates were at their lowest; the deployment of those funds at those low rates; and now the usage of those deposits as consumers

54

utilize their deposits to maintain living standards in this highly inflationary economy, which prevents the Company from investing in the higher rates now available. With the EVE model moving rates even higher, it further exacerbates the differential between market rates and book rates, thereby creating the out of internal policy consequence. To mitigate these results, the Company has prioritized employing strategies to shrink the longer duration investment portfolio and replace the balances with assets having a shorter duration, including loans, in an effort to close the gap between the book and market rates. Any growth in lending will be done in a measured manner given the uncertain economic backdrop that exists today. The Company recognizes the risk inherent in growing loans but feels that its historical record of prudent underwriting, its low loan to deposit ratio and its strong credit metrics provide the ability to pursue solid opportunities in the marketplace. In addition, any loan growth will be broad based encompassing consumer, indirect, 1-4 family, commercial and industrial and CRE so as not to increase risk in any one portfolio or sector.

The remaining results of the simulations in the table above indicate that interest rate change results fall within internal limits established by the Company at both September 30, 2024, and December 31, 2023. A report on interest rate risk is presented to the Board of Directors and the Asset/Liability Committee on a quarterly basis. The Company has no market risk sensitive instruments held for trading purposes.

With the largest amount of interest sensitive assets and liabilities maturing within twelve months, the Company monitors this area most closely. Early withdrawal of deposits, prepayments of loans and loan delinquencies are some of the factors that can impact actual results in comparison to our simulation analysis. In addition, changes in rates on interest sensitive assets and liabilities may not be equal, which could result in a change in net interest margin.

Interest rate sensitivity management provides some degree of protection against net interest income volatility. It is not possible or necessarily desirable to attempt to eliminate this risk completely by matching interest sensitive assets and liabilities. Other factors, such as market demand, interest rate outlook, regulatory restraint and strategic planning also have an effect on the desired balance sheet structure.

Item 4. Controls and Procedures

Based on their evaluation, as of the end of the period covered by this Quarterly Report on Form 10-Q, the Company’s Chief Executive Officer and Chief Financial Officer have concluded the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) are effective. There were no changes in the Company’s internal controls over financial reporting (as defined in Rule 13a–15(f) under the Exchange Act) that occurred during the fiscal quarter ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

The Company is a defendant in lawsuits and other adversary proceedings arising in the ordinary course of business. Legal costs incurred in connection with the resolution of claims and lawsuits are generally expensed as incurred, although the Company establishes accruals where losses are deemed probable and reasonably estimable. The Company’s assessment of the current exposure with respect to adverse claims in legal matters could change in the event of the discovery of additional facts in such matters or upon determinations by judges, juries, administrative agencies or other finders of fact that are inconsistent with the Company’s evaluation of claims. It is possible that the ultimate resolution of matters, if unfavorable, may be material to the results of operations in a particular future period as the time and amount of any resolution of such actions and its relationship to the future results of operations are not known.

Item 1A. Risk Factors

The Company is exposed to risk when other financial institutions experience financial difficulties which could have an adverse impact on the banking industry environment in which the Company operates. The collapses of Silicon Valley Bank, Signature Bank and First Republic Bank have caused uncertainty in the investor community and banking customers. While the Company does not believe that the circumstances of these three bank failures are indicators of broader issues within the banking system, the failures may reduce customer confidence, affect sources of funding and liquidity, increase regulatory requirements and costs, adversely affect financial markets and/or have a negative reputational ramification for the financial services industry, including the Company. The Company will continue to monitor the ongoing events concerning these three banks as well as any future potential bank failures and volatility within the financial services industry generally, together with any responsive measures taken by the banking regulators to mitigate or manage potential turmoil in the financial services industry.

For further discussion of risk factors related to the Company, refer to Part 1, Item 1A, “Risk Factors,” contained in the Company’s 2023 10-K. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition.

55

Additional risk factors not currently known to us or that we currently deem immaterial may also adversely affect us. There have been no material changes to the risk factors previously disclosed in our 2023 Form 10K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of equity securities by the issuer.

On March 1, 2023, the Company announced that its Board of Directors authorized the purchase of up to 1,000,000 shares of its common stock in the open market or in privately negotiated transactions, from time to time and subject to market and other conditions. This 2023 Repurchase Program supersedes the Company's 2019 share repurchase program. The 2023 Repurchase Program may be modified, suspended or terminated by the Company at any time.

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Maximum Number of Shares that May Yet be Purchased Under the Program
Beginning balance								497,047
July 1-31		9,130	$	12.38		0		497,047
August 1-31		0		0.00		0		497,047
September 1-30		2,500		13.78		0		497,047
Ending balance		11,630		12.68		0		497,047

There was no treasury stock activity under the program during the three month period ended June 30, 2024.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Securities Trading Plans of Directors and Executive Officers

During the three months ended September 30, 2024, none of our directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) of the Exchange Act or any “non-Rule 10b5-1 trading arrangement” (as defined in Item 408(c) of Regulation S-K).

56

Item 6. Exhibits

The following exhibits are filed or incorporated by reference as part of this report:

3.1	Articles of Incorporation of Farmers National Banc Corp., as amended (incorporated by reference from Exhibit 4.1 to the Company’s Registration Statement on Form S-3 filed with the Commission on October 3, 2001).
3.2	Amendment to Articles of Incorporation of Farmers National Banc Corp., as amended (incorporated by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the Commission on May 1, 2013).
3.3	Amendment to Articles of Incorporation of Farmers National Banc Corp., as amended (incorporated by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the Commission on April 20, 2018).
3.4	Amended Code of Regulations of Farmers National Banc Corp. (incorporated by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K filed with the Commission on April 17, 2020).
10.1**	Farmers National Banc Corp. Third Amended and Restated Executive Separation Policy, as amended (filed herewith).
31.1	Rule 13a-14(a)/15d-14(a) Certification of Kevin J. Helmick, President and Chief Executive Officer of the Company (principal executive officer) (filed herewith).
31.2	Rule 13a-14(a)/15d-14(a) Certification of A. Troy Adair, Executive Vice President, Chief Financial Officer and Secretary of the Company (principal financial officer) (filed herewith).
32.1	Certification pursuant to 18 U.S.C. Section 1350 of Kevin J. Helmick, President and Chief Executive Officer of the Company (principal executive officer) (filed herewith).
32.2	Certification pursuant to 18 U.S.C. Section 1350 of A. Troy Adair, Executive Vice President, Chief Financial Officer and Secretary of the Company (principal financial officer) (filed herewith).
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in iXBRL (Inline Extensible Business Reporting Language), filed herewith: (i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Income; (iii) the Consolidated Statements of Comprehensive Income; (iv) the Consolidated Statements of Stockholders’ Equity, (v) the Consolidated Statements of Cash Flows; and (vi) Notes to Unaudited Consolidated Financial Statements.
104	The cover page from the Company’s Quarterly report on Form 10-Q for the quarter ended September 30, 2024, has been formatted in Inline XBRL.

57

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 thereunto duly authorized.

FARMERS NATIONAL BANC CORP.

Dated: November 7, 2024

/s/ Kevin J. Helmick

Kevin J. Helmick

President and Chief Executive Officer

Dated: November 7, 2024

/s/ A. Troy Adair

A. Troy Adair

Senior Executive Vice President, Chief Financial Officer and Secretary

58

EX-10.1

Exhibit 10.1

Farmers National Banc Corp.

Third Amended and Restated Executive Separation Policy

As amended: June 25, 2024

1.Purpose

Farmers National Banc Corp. (the “Company”) seeks to attract and retain the most qualified and capable professionals to serve in key executive positions to maximize the value of the Company for the benefit of the Company’s stockholders. To achieve this goal, the Company originally established this Executive Separation Policy effective November 7, 2013 (the “Original Effective Date”), adopted an Amended and Restated Executive Separation Policy effective June 23, 2015 (“First Amended Policy”), and adopted a Second Amended and Restated Executive Separation Policy effective June 1, 2017 (“Second Amended Policy”), to provide such employees with certain types of financial security and sufficient incentives to accept and continue their executive employment. This Third Amended and Restated Executive Separation Policy (this “Policy”) describes the separation pay and benefits that the Company will provide to Covered Executives (as defined below) if their employment with the Company terminates under certain circumstances. The Company also seeks through this Policy to ensure that the separation process is handled professionally and efficiently.

2.Application to Covered Employees

a)This Policy applies to the positions of Chief Executive Officer and President, Chief Financial Officer, Chief Credit Officer, Chief Operating Officer, Chief Retail and Marketing Officer, Chief Wealth Management Officer, Chief Human Resource Officer, Chief Information Officer, Chief Risk Officer, and such other executive officers comprising the Company’s senior management team as may be designated annually by the Board of Directors (collectively, the “Covered Executives”).

b)The Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”) may, from time to time, designate other persons holding other executive positions who are not members of the Company’s Senior Management Committee as Covered Executives under this Policy and the level of severance pay and benefits that such persons shall receive under this Policy.

3.Termination of Employment

The Company may terminate a Covered Executive’s employment with the Company, with or without Cause, and a Covered Executive may terminate his or her employment with the Company for or without Good Reason, subject, however, in each case, to the terms and conditions of any written employment agreement between the Covered Executive and the Company.

A.Termination by Company for Cause or by Covered Executive Without Good Reason

If the Company terminates a Covered Executive’s employment with the Company for Cause, or a Covered Executive terminates his or her employment with the Company without Good Reason, the Covered Executive will be entitled to: (1) all earned but unpaid compensation for time worked through the Termination Date, to be paid on the Payment Date; and (2) any rights and benefits (if any) provided under plans and programs of the Company, determined in accordance with the applicable terms and provisions of such plans and programs, including, without limitation, earned but unused vacation (the payments described in this Section 3.A are collectively referred to as the “Accrued Obligations”). Other than payment of the Accrued Obligations, a Covered Executive whose employment with the Company terminates as described in this Section 3.A shall not be entitled to receive any other severance pay or benefits. Nothing in the foregoing is intended to limit a Covered Executive’s ability to continue participating in the Company’s group health, dental and vision plans for the applicable COBRA continuation period, provided that the Covered Executive properly elects COBRA continuation coverage and pays the applicable COBRA premiums.

B.Termination by Company Without Cause or by Covered Executive for Good Reason

If the Company terminates a Covered Executive’s employment with the Company without Cause, or a Covered Executive terminates his or her employment with the Company for Good Reason, the Company will, subject to the terms and conditions of this Policy, provide the severance pay and benefits set forth below to the Covered Executive based on the Covered Executive’s position on the date of termination.

(1)If the Covered Executive is the Chief Executive Officer, the Covered Executive will receive the following severance pay and benefits:

(a)the Accrued Obligations;

(b)if the Covered Executive was employed by the Company on the Original Effective Date, a lump sum amount equal to 36 months of the Covered Executive’s then-current base salary (or, if greater, the base salary immediately prior to any reduction constituting Good Reason), to be paid on the Payment Date; if the Covered Executive was not employed by the Company on the Original Effective Date, a lump sum amount equal to 24 months of the Covered Executive’s then-current base salary (or, if greater, the base salary immediately prior to any reduction constituting Good Reason), to be paid on the Payment Date;

(c)a pro rata incentive bonus in a lump sum amount determined by multiplying the annual incentive that the Covered Executive would have earned under the Company’s annual incentive plan for the year in which the termination occurred, assuming that performance had

been attained at the “target” level as based on a percentage of the Covered Executive’s then-current base salary (or, if greater, the base salary immediately prior to any reduction constituting Good Reason), by a fraction, the numerator of which is the number of days elapsed during the calendar year prior to the Termination Date and the denominator of which is 365, to be paid on the Payment Date;

(d)a lump sum amount equal to the monthly COBRA premium payable by the Covered Executive to continue to receive health benefits at a level similar to which the Covered Executive and his or her spouse and dependents, if any, were participating immediately prior to the termination, in order to continue to receive such benefits during the applicable COBRA coverage period, multiplied by (i) 36 if the Covered Executive was employed by the Company on the Original Effective Date, or (ii) 24 if the Covered Executive was not employed by the Company on the Original Effective Date; and

(e)a lump sum payment in an amount not to exceed $10,000 for reasonable outplacement services by a firm selected by the Company, for a period of such services lasting not longer than one (1) year after the Termination Date.

(2)If the Covered Executive is the Chief Financial Officer, Chief Banking Officer, Chief Credit Officer, Chief Operating Officer, Chief Retail and Marketing Officer, Chief Wealth Management Officer, or Corporate Development Officer, the Covered Executive will receive the following severance pay and benefits:

(a)the Accrued Obligations;

(b)a lump sum amount equal to 18 months of the Covered Executive’s then-current base salary (or, if greater, the base salary immediately prior to any reduction constituting Good Reason), to be paid on the Payment Date;

(c)a pro rata incentive bonus in a lump sum amount determined by multiplying the annual incentive that the Covered Executive would have earned under the Company’s annual incentive plan for the year in which the termination occurred, assuming that performance had been attained at the “target” level as based on a percentage of the Covered Executive’s then-current base salary (or, if greater, the base salary immediately prior to any reduction constituting Good Reason), by a fraction, the numerator of which is the number of days elapsed during the calendar year prior to the Termination Date and the denominator of which is 365, to be paid on the Payment Date;

(d)a lump sum amount equal to the monthly COBRA premium payable by the Covered Executive to continue to receive health benefits at a

2

level similar to which the Covered Executive and his or her spouse and dependents, if any, were participating immediately prior to the termination, in order to continue to receive such benefits during the applicable COBRA coverage period, multiplied by 18; and

(e)a lump sum payment in an amount not to exceed $7,500 for reasonable outplacement services by a firm selected by the Company, for a period of such services lasting not longer than one (1) year after the Termination Date.

(3)If the Covered Executive is not the Chief Executive Officer, Chief Financial Officer, Chief Banking Officer, Chief Credit Officer, Chief Wealth Management Officer, Chief Retail and Marketing Officer, or Corporate Development Officer, the Covered Executive will receive the following severance pay and benefits:

(a)the Accrued Obligations;

(b)a lump sum amount equal to 12 months of the Covered Executive’s then-current base salary (or, if greater, the base salary immediately prior to any reduction constituting Good Reason), to be paid on the Payment Date;

(c)a pro rata incentive bonus in a lump sum amount determined by multiplying the annual incentive that the Covered Executive would have earned under the Company’s annual incentive plan for the year in which the termination occurred, assuming that performance had been attained at the “target” level as based on a percentage of the Covered Executive’s then-current base salary (or, if greater, the base salary immediately prior to any reduction constituting Good Reason), by a fraction, the numerator of which is the number of days elapsed during the calendar year prior to the Termination Date and the denominator of which is 365, to be paid on the Payment Date;

(d)a lump sum amount equal to the monthly COBRA premium payable by the Covered Executive to continue to receive health benefits at a level similar to which the Covered Executive and his or her spouse and dependents, if any, were participating immediately prior to the termination, in order to continue to receive such benefits during the applicable COBRA coverage period, multiplied by 12; and

(e)a lump sum payment in an amount not to exceed $7,500 for reasonable outplacement services by a firm selected by the Company, for a period of such services lasting not longer than one (1) year after the Termination Date.

1.Eligibility For Separation Pay and Benefits

3

Except with respect to the Accrued Obligations, the Company’s obligations to provide any severance pay and benefits under this Policy are conditioned upon the following:

A.The Covered Executive’s execution prior to the first date that any payment (other than the Accrued Obligations) is to begin, of a valid, enforceable, full and unconditional release reasonably acceptable to the Company, generally in the form attached as Exhibit A hereto, of all claims whether known or unknown that the Covered Executive may have against the Company, its officers, fiduciaries, directors, agents, and employees as of the Termination Date.

B.The Covered Executive agrees to the following:

(i)Non-Competition.For a period of 12 consecutive months after the Termination Date, the Covered Executive shall not, directly or indirectly, as owner, partner, joint venturer, stockholder (excluding the ownership of publicly-traded securities where such ownership does not exceed 1% of such securities outstanding), employee, officer, director, agent, principal, trustee or in any other business capacity whatsoever, engage in, become financially interested in, become employed by, render any consulting or business advice with respect to, or have any other connection with, any person or business entity engaged in the same business as the Company or an affiliate in any county where the Company or an affiliate maintains a branch or loan production office at the time of termination of the Covered Executive’s employment.

(ii)Non-Solicitation of Customers. For a period equal to the lesser of (a) 24, or (b) the number of months of the Covered Executive’s base salary used as a multiplier in Section B(1)(b), B(2)(b), or B(3)(b) as applicable, consecutive months after the Termination Date, the Covered Executive shall not, directly or indirectly solicit Business from any customers, clients or business patrons of the Company or an affiliate who were customers, clients or business patrons of the Company or an affiliate at the time of termination of the Covered Executive’s employment.

(iii)Non-Solicitation of Employees. For a period equal to the lesser of (a) 24, or (b) the number of months of the Covered Executive’s base salary used as a multiplier in Section B(1)(b), B(2)(b), or B(3)(b) as applicable, consecutive months after the Termination Date, the Covered Executive shall not, directly or indirectly employ or attempt to employ or solicit for employment any other individual who is employed by the Company or an affiliate at the time of termination of the Covered Executive’s employment.

(iv)Confidential Information. The Covered Executive shall not directly or indirectly communicate or divulge any Confidential Information relating to the Company or an affiliate to any other person or business entity. All records, files, plans, documents and the like relating to the business of the Company or an affiliate, including but not limited to Confidential Information which the Executive has or will prepare, use or come into

4

contact with shall remain the sole property of the Company or an affiliate, shall not be copied without written permission, and shall be returned immediately to the Company or an affiliate upon the Covered Executive’s termination of employment with the Company or an affiliate, or at the request of the Company or an affiliate at any time. Further, the Executive shall not directly or indirectly use or disclose to any other person or business entity any secret or Confidential Information of the Company or an affiliate without the prior written consent of an officer of the Company or an affiliate. The Executive further agrees to take all reasonable precautions to protect against the negligent or inadvertent disclosure of the secret or Confidential Information of the Company or an affiliate to any other person or business entity. If the Executive improperly uses or discloses any secret or Confidential Information of the Company or an affiliate, the Executive understands that the Covered Executive’s employment will be subject to termination for Cause. The Executive also recognizes that all writings, illustrations, drawings and other similar materials that embody or otherwise contain Confidential Information which the Executive may produce or which may be given to the Executive in connection with the Executive’s employment, are the property of the Company or an affiliate and it shall be the Executive’s obligation to deliver the same to the Company or an affiliate upon request, and upon termination of the Covered Executive’s employment with the Company or an affiliate for any reason.

(v)Intellectual Property Rights. The Covered Executive agrees and acknowledges that all Work Product shall be the sole, exclusive and absolute property of the Company or an affiliate. All such Work Product shall be deemed to be works for hire and the Executive assigns to the Company all rights, title and interest in, to and under such Work Product, including but not limited to, the right to obtain such patents, copyright registrations, trademark registrations or similar protections as the Company or an affiliate may desire to obtain. The Executive shall immediately disclose all Work Product to the Company or an affiliate and agrees, at any time upon the Company’s or an affiliate’s request and without additional compensation, to execute any documents and to otherwise cooperate with the Company or an affiliate respecting the perfection of its rights, title and interest in, to and under such Work Product, and in any litigation or other controversy in connection therewith, all reasonable expenses incident thereto to be borne by the Company or an affiliate. For purposes of this Policy, “Work Product”means any procedure, design feature, schematic, invention, improvement, development, discovery, know how, concept, idea or the like (whether or not patentable or registrable under copyright or trademark laws, or otherwise protectable under similar laws) that the Executive may conceive of, suggest, make, invent, develop or implement during the course of the Executive’s employment with the Company or an affiliate (whether individually or jointly with any other person), relating in any way to the Business, and all physical embodiments and manifestations thereof, and all patent rights, copyrights, trademarks (or application therefore) and similar protections therein.

5

(vi)Non-disparagement. The Covered Executive agrees that he or she will not knowingly make any statement or take any action likely to disparage or have an adverse effect on the Company’s business reputation; provided, however, that such restriction will not prevent the Covered Executive from making any statement or taking any action that is required by law.

(vii)In the event of a breach by the Covered Executive of any covenant set forth in this Section 4(B), the term of such covenant will be extended by the period of the duration of such breach and such covenant will survive any termination of this Agreement but only for the limited period of such extension. The restrictions provided in this Section 4(B) are in addition to any restrictions on competition or solicitation contained in any other agreement between the Company or an affiliate and the Executive. The provisions of this Section 4(B) constitute an essential element of this Agreement, without which the Company would not have entered into this Agreement. If the scope of any restriction contained in this Section 4(B) is too broad to permit enforcement of such restriction to its fullest extent, then such restriction will be enforced to the maximum extent permitted by law, and the Executive hereby consents and agrees that such scope may be judicially modified accordingly in any proceeding brought to enforce such restriction.

(viii)Notwithstanding any other remedy available, the restrictions described in this Section 4(B) may be enforced by the Company, an affiliate and/or any successor thereto, by an action to recover payments made under this Agreement, an action for injunction, and/or an action for damages. In the event the Company or an affiliate obtains a permanent injunction against the Executive after notice and the opportunity to appear, the Executive shall be liable to pay all costs, including reasonable attorneys’ fees, which the Company or an affiliate may incur in enforcing, to any extent, the provisions of this Agreement, whether or not litigation is actually commenced and including litigation of any appeal taken or defended by the Company or an affiliate in any action to enforce this Agreement and which affirms and/or results in a permanent injunction. Any proceedings brought to enforce Section 5 of this Agreement shall be brought in the courts of Mahoning County, Ohio and the Executive expressly waives any objection or defense relating to jurisdiction or forum non-conveniens or similar doctrine or theory. The Executive acknowledges and agrees that the remedy at law for any breach of this Section 5 shall be inadequate, and that the Company or an affiliate shall be entitled to injunctive relief without bond. Such injunctive relief shall not be exclusive, but shall be in addition to any other rights or remedies which the Company or an affiliate may have for any such breach. In addition to the injunctive remedies described herein, the Executive acknowledges and agrees that in the event of a final judicial determination against the Executive with respect to an actual or threatened breach by the Executive of this Section 5, the Company shall be entitled to withhold any remaining amounts payments payable under Section 3 of this Agreement.

6

C.After the Termination Date, the Covered Executive agrees to provide reasonable assistance and cooperation with the Company concerning business or legal related matters about which the Covered Executive possesses relevant knowledge or information. Such cooperation will be provided only at the Company’s specific request and will include, but not be limited to, assisting or advising the Company with respect to any business-related matters or any actual or threatened legal action (including testifying in depositions, hearings, and/or trials). The Covered Executive will be reimbursed for the reasonable costs of providing assistance and cooperation, including, without limitation, reasonable travel and lodging expenses.

D.The Company’s obligation to provide separation pay and benefits under this Policy will cease immediately if the Company determines that Covered Executive failed to comply with any of the foregoing conditions, and the Covered Executive will be required to return to the Company (with ten (10) days after request by the Company) any amounts the Company has paid to the Covered Executive under this Policy other than the Accrued Obligations.

2.Section 409A

This Policy is intended to comply with the requirements of Section 409A of the U.S. Internal Revenue Code of 1986, as amended (the “Code”), or an exemption or exclusion therefrom, and, with respect to amounts that are subject to Section 409A of the Code, shall in all respects be administered in accordance with Section 409A of the Code.

Each payment under this Policy shall be treated as a separate payment for purposes of Section 409A of the Code. In no event may the Covered Executive, directly or indirectly, designate the calendar year of any payment to be made under this Policy. If the Covered Executive dies following the Termination Date and prior to the payment of the any amounts delayed on account of Section 409A of the Code, such amounts shall be paid to the personal representative of the Covered Executive’s estate within 30 days after the date of the Covered Executive’s death.

All reimbursements and in-kind benefits provided under this Policy that constitute deferred compensation within the meaning of Section 409A of the Code shall be made or provided in accordance with the requirements of Section 409A of the Code, including, without limitation, that (i) in no event shall reimbursements by the Company under this Policy be made later than the end of the calendar year next following the calendar year in which the applicable fees and expenses were incurred, provided, that the Covered Executive shall have submitted an invoice for such fees and expenses at least ten (10) days before the end of the calendar year next following the calendar year in which such fees and expenses were incurred; (ii) the amount of in-kind benefits that the Company is obligated to pay or provide in any given calendar year shall not affect the in-kind benefits that the Company is obligated to pay or provide in any other calendar year; (iii) the Covered Executive’s right to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in no event shall the Company’s obligations to make such reimbursements or to provide such in-kind benefits apply later than the periods described in this Policy. Within the time period permitted by the applicable Treasury Regulations, the Company may modify this Policy, in the least restrictive manner necessary and without any diminution in the value of the payments to the Covered Executive, in order to cause the provisions of this Policy to comply with the requirements of Section 409A of

7

the Code, so as to avoid the imposition of taxes and penalties on the Covered Executive pursuant to Section 409A of the Code.

Notwithstanding anything in this Policy to the contrary, in the event that a Covered Executive is a “specified employee” (as defined in Section 409A of the Code) of the Company, as determined pursuant to the Company’s policy for identifying specified employees, on the date of the Covered Executive’s termination of employment and the Covered Executive is entitled to a payment and/or a benefit under this Policy that is required to be delayed pursuant to Section 409A(a)(2)(B)(i) of the Code, then such payment or benefit, as applicable, shall not be paid or provided (or begin to be paid or provided) until the first day of the seventh month following the date of the Covered Executive’s termination of employment (or, if earlier, the date of the Covered Executive’s death). The first payment that can be made to the Covered Executive following such period shall include the cumulative amount of any payments or benefits that could not be paid or provided during such period due to the application of Section 409A(a)(2)(B)(i) of the Code.

3.Employment at Will

Nothing in this Policy is to be construed such that a Covered Executive’s employment with the Company is anything other than employment “at will”.

4.ERISA Provisions

This Policy is intended to be a plan whose participation is limited to a “select group of management or highly compensated employees” within the meaning of Sections 4(b)(5), 201(2), 301(a)(3) and 401(a) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). The claims procedure set forth in U.S. Department of Labor Regulation Section 2560.503-1 are incorporated by reference into this Policy.

5.Governing Law

The rights and obligations of the Covered Executives and the Company under this Policy will be governed and interpreted in accordance with the internal laws of the State of Ohio without regard to choice of law principles and to the extent not preempted by ERISA.

8

6.Integration

This Policy supersedes and replaces the terms of any employment agreement, offer letter, or other agreement with the Company, including any agreement in respect of confidentiality, that governs the terms and conditions applicable to the Covered Executive’s separation from the Company and is in effect immediately prior to the Covered Executive’s termination of employment (“Alternative Agreement”) with respect to the payment of severance or benefits, to the extent that the Alternative Agreement provides for the payment of severance or benefits in an amount less than are payable under this Policy. To the extent that a Covered Executive is entitled to payment of severance or benefits under an Alternative Agreement in an amount greater than are payable under this Policy, the amount of severance or benefits shall be determined under the Alternative Agreement and the Covered Executive shall not be entitled to any payments of severance or benefits under this Policy.

For purposes of clarity, if a Covered Executive is or becomes a party to the Company’s Change in Control Agreement dated effective as of November 7, 2013 (or any successor form of agreement in respect of a change in control, collectively, a “Change in Control Agreement”) and is terminated under circumstances that would entitle the Covered Executive to payments and benefits under the Change in Control Agreement, the terms of the Change in Control Agreement, and not this Policy, will apply and the Covered Executive will not be eligible for the payment of severance or benefits under this Policy.

7.Reservation of Rights

This Policy may be modified from time to time, or terminated in its entirety, in the sole discretion of the Compensation Committee. Any modifications made by the Compensation Committee for any Covered Executive will apply to all Covered Executives for purposes of this Policy (except to the extent expressly stated otherwise). Any modifications to, or the termination of, this Policy will not affect the rights of Covered Executives whose Termination Date preceded such modification or termination. The Compensation Committee will have discretion to construe and interpret this Policy and its decisions will be final and binding on the Company, the Covered Executive and all other interested persons.

8.Tax Withholding

All payments to a Covered Executive under this Policy will be reduced by any required withholdings of applicable federal, state, local and foreign taxes.

9.Assignment

The Covered Executive’s rights and obligations under this Policy may not be assigned or transferred. The Company may not assign or transfer its obligations under this Agreement except in the event the Company is merged or consolidated into, or with, any other company, or if substantially all of the assets of the Company are transferred to another company.

10.Remedies for Breach

Each party will bear its own costs to resolve any dispute arising under this Policy; provided, however, that in the event that a Covered Executive is determined to be the prevailing party in

9

such dispute pursuant to a final non-appealable order or in a binding arbitration, the Company will reimburse the Covered Executive for the reasonable costs incurred to enforce this Policy, including, without limitation, reasonable attorneys’ fees.

11.Definitions

A.Cause means that, in the reasonable judgment of the Compensation Committee, any of the following events have occurred: (1) the willful or negligent failure by the Covered Executive to substantially perform his or her duties with the Company and, after written notification by the Company to the Covered Executive, the continued failure of the Covered Executive to substantially perform such duties; (2) the willful or negligent engagement by the Covered Executive in conduct which is demonstrably and materially injurious to the Company, financially or otherwise; (3) action or inaction by the Covered Executive that constitutes a breach of a fiduciary duty with respect to the Company or any of its subsidiaries; (4) the violation of any material written policy, rule or regulation of the Company; or (5) the Covered Executive’s material breach of any agreement in respect of confidentiality with the Company, whether or not entered into after the Effective Date.

B.Disability means a Covered Executive’s having become unable (as determined by the Compensation Committee in good faith) to perform regularly his or her duties with the Company by reason of illness or incapacity.

C.Good Reason means the occurrence of any of the following: (1) a reduction in a Covered Executive’s annual base salary rate, unless such reduction generally applies to other Covered Executives regardless of the reason(s) therefor; (2) a substantial diminution in a Covered Executive’s duties, authorities or responsibilities; or (3) the relocation of a Covered Executive’s principal place of employment with the Company such that (a) the distance from the former principal place of employment to the relocated principal place of employment is over 50 miles and (b) the distance from his or her primary residence to the relocated principal place of employment is over 50 miles; provided, however, that Good Reason shall exist only to the extent that a Covered Executive provides the Company, in care of the Company’s Chief Executive Officer (or, if involving the Company’s Chief Executive Officer, in care of the Chair of the Board of Directors) at the Company’s then-current corporate headquarters, with written notice of his or her intention to terminate employment with the Company for Good Reason that specifies the condition(s) constituting Good Reason and the Company fails to correct such condition(s) within ten (10) business days from receipt of such written notice. Notwithstanding the foregoing, Good Reason shall cease to exist for an event on the one hundred and twentieth (120th) day following the later of its occurrence or the Covered Executive’s knowledge thereof, unless the Covered Executive has given the Company written notice of such condition and of the Covered Executive’s intent to terminate for Good Reason prior to such date. With respect to the Chief Executive Officer only, Good Reason shall also include a change in responsibilities such that the Chief Executive Officer reports to someone other than directly to the Company’s Board of Directors.

D.Payment Date means, with respect to payment of any severance pay and/or benefits (except for any applicable medical, dental and/or vision benefits) relating to a Covered Executive’s termination of employment under this Policy, a date selected by the Company that is within thirty (30) days following the Termination Date except in respect of the payments provided for in 3B(1)(d) and 3B(2)(d) above; provided, however, that the Payment Date shall be such date

10

as avoids a violation of applicable law, including but not limited to, Section 409A of the Code. The Payment Date may, at the sole discretion of the Company, be different dates for different pay and/or benefits due under this Policy, as long as such dates comply with the requirements of applicable law.

E.Termination Date means the date on which a Covered Executive’s experiences a “separation from service” within the meaning of Section 409A of the Code from the Company.

F.Without Cause means a termination of a Covered Executive’s employment (1) by the Company other than for Cause or (2) because of the Covered Executive’s Disability, but only to the extent that the Covered Executive is not receiving long-term disability benefits under the Company’s long-term disability plan (or is eligible, but declined to receive, such long-term disability benefits).

11

EXHIBIT A

Form of Release

GENERAL RELEASE

This General Release (the “Agreement”) is made and entered into as of ______, 20___, by and between Farmers National Banc Corp. (the “Company”), and _________________ (the “Executive”) (collectively, the “Parties”).

Article I.RELEASES, WAIVERS AND REVOCATION RIGHTS

1.01Release. In consideration of receipt of the payments and benefits pursuant to the Company’s Executive Separation Policy, as it may have been amended from time to time (“Separation Policy”), the Executive does hereby fully and forever surrender, release, acquit and discharge the Company, and its principals, stockholders, directors, officers, agents, administrators, insurers, subsidiaries, affiliates, employees, successors, assigns, related entities, and legal representatives, personally and in their representative capacities, and each of them (collectively, “Released Parties”), of and from any and all claims for costs of attorneys’ fees, expenses, compensation, and all losses, demands and damage of whatsoever nature or kind in law or in equity, whether known or unknown, including without limitation those claims arising out of, under, or by reason of the Executive’s employment with the Company or any affiliate thereof, the Executive’s relationship with the Company or any affiliate and/or the termination of the Executive’s employment relationship and any and all claims which were or could have been asserted in any charge, complaint, or related lawsuit. Without limiting the generality of the foregoing, the Executive specifically releases and discharges, but not by way of limitation, any obligation, claim, demand or cause of action based on, or arising out of, any alleged wrongful termination, breach of employment contract, breach of implied covenants of good faith and fair dealing, defamation, fraud, promissory estoppel, intentional or negligent infliction of emotional distress, discrimination based on age, pain and suffering, personal injury, punitive damages, and any and all claims arising from any alleged violation by the Released Parties of any federal, state, or local statutes, ordinances or common laws, including but not limited to the Ohio Civil Rights Act, including all provisions of the Ohio Revised Code concerning discrimination on the basis of age, the Age Discrimination in Employment Act of 1967 (“ADEA”), Title VII of the Civil Rights Act of 1964, the Americans With Disabilities Act (“ADA” and “ADAA”) or the Employee Retirement Income Security Act of 1974. This release of rights is knowing and voluntary. The Company acknowledges that the Executive does not release herein any rights or claims which may arise after the Effective Date of this Agreement (as defined in Section 1.03 of this Agreement) nor any rights the Executive has under the CIC Agreement, any rights the Executive may have regarding the enforcement of the CIC Agreement, the Executive’s rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or the Executive’s rights to indemnification.

1.02Waiver of Right to Sue. Except with regard to the Company’s commitments contained in the Separation Policy, the Executive further agrees, promises and covenants that neither the Executive, nor any person, organization, or any other entity acting on the Executive’s behalf will file, charge, claim, sue or cause or permit to be filed, charged or claimed, any action for damages or other relief (including injunctive, declaratory, monetary relief or other) against the Company,

12

involving any matter occurring in the past up to the Effective Date of this Agreement or involving any continuing effects of actions or practices which arose prior to the Effective Date of this Agreement or the termination of the Executive’s employment.

1.03Older Workers’ Benefit Protection Act Waiver. The Executive has certain individual federal rights, which must be explicitly waived. Specifically, the Executive is protected by the ADEA from discrimination in employment because of the Executive’s age. By executing this Agreement, the Executive waives these rights as to any past or current claims. Notwithstanding anything else in this Agreement, excluded from this Agreement are ADEA age claims that may arise after execution of this Agreement. In connection with the releases in Section 1.01 and waivers in Section 1.02 of any and all claims or disputes that the Executive has or may have on the date hereof, the Executive makes the following acknowledgements:

[1]By signing this Agreement, the Executive waives all claims against the Released Parties for discrimination based on age, including without limitation, any claim which arises under or by reason of a violation of the ADEA.

[2]In consideration of the releases, waivers and covenants made by the Executive under this Agreement, the Executive will be receiving the applicable payments and other benefits in the amounts and manner described in Section 3B of the Separation Policy.

[3]The Executive represents and acknowledges that the Executive has consulted with an attorney prior to executing this Agreement and the Executive has been given a period of at least twenty-one (21) days within which to consider whether or not to enter into this Agreement.

[4]The Executive understands that this Agreement shall be effective as of the date on which the Executive signs the Agreement (“Effective Date”), provided that the Agreement is not revoked by the Executive within seven days after the Executive signs the Agreement. For a period of seven days after the Executive signs the Agreement, the Executive has the right to revoke and/or cancel this Agreement by the delivery of notice in writing of revocation and/or cancellation to the Company. In the event that the Executive does not revoke and/or cancel this Agreement during this period, this Agreement shall become effective on the Effective Date. In the event that the Executive revokes this Agreement, the Executive shall not be entitled to any of the consideration set out in Section 3B of the Separation Policy.

Article II. MISCELLANEOUS

2.01Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original, but all of which together will constitute one and the same Agreement. Facsimile signatures will have the same legal effect as original signatures.

2.02ApplicableLaw. To the extent not preempted by federal law, the provisions of this Agreement will be construed and enforced in accordance with the laws of the state of Ohio.

2.03Headings. The descriptive headings in this Agreement are inserted for convenience of reference only and are not intended to be part of or to affect the meaning or interpretation of this Agreement.

13

IN WITNESS WHEREOF, the Parties have executed this Agreement, as of _______, 20____.

FARMERS NATIONAL BANC CORP.

By: Title: Date signed:

THE EXECUTIVE

Signature Print Name Date signed:

14

EX-31.1

Exhibit 31.1

CERTIFICATIONS

Certification of Chief Executive Officer

CERTIFICATION FOR QUARTERLY REPORT ON FORM 10-Q

I, Kevin J. Helmick certify that:

1) I have reviewed this quarterly report on Form 10-Q of Farmers National Banc Corp.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Kevin J. Helmick

Kevin J. Helmick

Chief Executive Officer

November 7, 2024

EX-31.2

Exhibit 31.2

CERTIFICATIONS

Certification of Chief Financial Officer

CERTIFICATION FOR QUARTERLY REPORT ON FORM 10-Q

I, A. Troy Adair certify that:

1) I have reviewed this quarterly report on Form 10-Q of Farmers National Banc Corp.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures, and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ A. Troy Adair

A. Troy Adair

Chief Financial Officer

November 7, 2024

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Farmers National Banc Corp. (the “Corporation”) on Form 10-Q for the period ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I Kevin J. Helmick, Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ Kevin J. Helmick

Kevin J. Helmick

Chief Executive Officer

November 7, 2024

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Farmers National Banc Corp. (the “Corporation”) on Form 10-Q for the period ended September 30, 2024 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I A. Troy Adair, Chief Financial Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

/s/ A. Troy Adair

A. Troy Adair

Chief Financial Officer

November 7, 2024

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Oct. 31, 2024
Cover [Abstract]
Entity Registrant Name	FARMERS NATIONAL BANC CORP.
Entity Central Index Key	0000709337
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Document Type	10-Q
Document Period End Date	Sep. 30, 2024
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		37,587,732
Entity Shell Company	false
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	FMNB
Security Exchange Name	NASDAQ
Entity File Number	001-35296
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-1371693
Entity Address, Address Line One	20 South Broad Street
Entity Address, City or Town	Canfield
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44406
City Area Code	330
Local Phone Number	533-3341
Document Quarterly Report	true
Document Transition Report	false

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
ASSETS
Cash and due from banks	$ 21,149	$ 28,896
Federal funds sold and other	167,987	74,762
TOTAL CASH AND CASH EQUIVALENTS	189,136	103,658
Securities available for sale (Amortized cost $1,482,798 in 2024 and $1,516,841 in 2023)	1,293,350	1,299,701
Other investments	33,617	35,311
Loans held for sale, at fair value	2,852	3,711
Loans	3,280,517	3,198,127
Less allowance for credit losses	36,186	34,440
NET LOANS	3,244,331	3,163,687
Premises and equipment, net	48,095	44,364
Goodwill	167,446	167,446
Other intangibles, net	20,894	22,842
Bank owned life insurance	100,976	99,482
Affordable housing investments	22,567	17,893
Other assets	113,239	120,255
TOTAL ASSETS	5,236,503	5,078,350
Deposits:
Noninterest-bearing	969,682	1,026,630
Interest-bearing	3,317,223	3,150,756
Brokered time deposits	74,932	0
TOTAL DEPOSITS	4,361,837	4,177,386
Short-term borrowings	285,000	355,000
Long-term borrowings	86,038	88,663
Other liabilities	63,950	52,886
TOTAL LIABILITIES	4,796,825	4,673,935
Commitments and contingent liabilities
Stockholders' Equity:
Common Stock, no par value; 50,000,000 shares authorized; 39,321,709 shares issued in 2024 and 2023; 37,573,650 and 37,502,773 shares outstanding, respectively	365,542	365,305
Retained earnings	249,171	236,757
Accumulated other comprehensive (loss)	(150,951)	(172,554)
Treasury stock, at cost; 1,748,059 and 1,818,936 shares in 2024 and 2023, respectively	(24,084)	(25,093)
TOTAL STOCKHOLDERS' EQUITY	439,678	404,415
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 5,236,503	$ 5,078,350

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Securities available for sale, amortized cost	$ 1,482,798	$ 1,516,841
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	39,321,709	39,321,709
Common Stock, Shares, Outstanding	37,573,650	37,502,773
Treasury stock, shares	1,748,059	1,818,936

XML

Consolidated Condensed Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
INTEREST AND DIVIDEND INCOME
Loans, including fees	$ 46,989	$ 43,838	$ 138,519	$ 127,025
Taxable securities	6,761	6,493	19,988	19,697
Tax exempt securities	2,456	2,661	7,546	8,176
Dividends	346	487	1,030	1,457
Federal funds sold and other interest income	1,371	750	2,740	1,911
TOTAL INTEREST AND DIVIDEND INCOME	57,923	54,229	169,823	158,266
INTEREST EXPENSE
Deposits	21,547	17,462	60,096	44,660
Short-term borrowings	3,476	1,960	11,000	5,608
Long-term borrowings	1,024	1,039	3,098	3,042
TOTAL INTEREST EXPENSE	26,047	20,461	74,194	53,310
NET INTEREST INCOME	31,876	33,768	95,629	104,956
Provision for credit losses	6,807	182	7,932	8,232
Provision (credit) for unfunded loans	201	61	(261)	635
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES	24,868	33,525	87,958	96,089
NONINTEREST INCOME
Bank owned life insurance income	688	694	2,046	1,825
Security (losses), including fair value changes for equity securities	(403)	(624)	(2,647)	(490)
Net gains on sale of loans	506	395	1,219	1,111
Other mortgage banking income, net	(168)	185	150	571
Other operating income	2,619	1,093	3,892	2,885
TOTAL NONINTEREST INCOME	12,340	9,831	30,302	29,705
NONINTEREST EXPENSES
Salaries and employee benefits	14,874	14,233	44,501	42,503
Occupancy and equipment	3,968	3,810	11,512	11,538
FDIC insurance and state and local taxes	1,480	1,648	4,010	4,365
Professional fees	1,084	1,043	3,532	3,347
Merger related costs	0	268	0	5,022
Advertising	435	492	1,312	1,379
Intangible amortization	629	725	1,947	2,856
Core processing charges	1,186	1,274	3,420	3,582
Other operating expenses	3,419	4,223	10,283	10,232
TOTAL NONINTEREST EXPENSES	27,075	27,716	80,517	84,824
Income before taxes	10,133	15,640	37,743	40,970
INCOME TAXES	1,598	2,326	6,185	5,614
Net income	$ 8,535	$ 13,314	$ 31,558	$ 35,356
EARNINGS PER SHARE - basic	$ 0.23	$ 0.36	$ 0.85	$ 0.94
EARNINGS PER SHARE - diluted	$ 0.23	$ 0.36	$ 0.84	$ 0.94
Service Charges on Deposit Accounts
NONINTEREST INCOME
Noninterest income	$ 1,992	$ 1,712	$ 5,421	$ 4,646
Trust Fees
NONINTEREST INCOME
Noninterest income	2,544	2,327	7,398	6,665
Insurance Agency Commissions
NONINTEREST INCOME
Noninterest income	1,416	1,116	4,199	3,904
Retirement Plan Consulting Fees
NONINTEREST INCOME
Noninterest income	677	650	1,918	1,837
Investment Commissions
NONINTEREST INCOME
Noninterest income	476	520	1,386	1,389
Debit Card and EFT Fees
NONINTEREST INCOME
Noninterest income	$ 1,993	$ 1,763	$ 5,320	$ 5,362

XML

Consolidated Condensed Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 8,535	$ 13,314	$ 31,558	$ 35,356
Other comprehensive income (loss):
Net unrealized holding gains (losses) on available for sale securities	52,472	(75,679)	25,012	(54,088)
Reclassification adjustment for losses realized in income on sales	421	618	2,680	498
Reclassification adjustment for (gains) losses realized in income on fair value hedge	(1,903)	776	(347)	776
Net unrealized holding gains (losses)	50,990	(74,285)	27,345	(52,814)
Income tax effect	(10,708)	15,600	(5,742)	11,091
Unrealized holding gains (losses), net of reclassification and tax	40,282	(58,685)	21,603	(41,723)
Change in funded status of post-retirement plan, net of tax	0	0	0	0
Other comprehensive income (loss), net of tax	40,282	(58,685)	21,603	(41,723)
TOTAL COMPREHENSIVE INCOME (LOSS)	$ 48,817	$ (45,371)	$ 53,161	$ (6,367)

XML

Consolidated Condensed Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance at Dec. 31, 2022	$ 292,295	$ 305,340	$ 212,375	$ (210,490)	$ (14,930)
Net income	7,075		7,075
Other comprehensive income (loss)	33,796			33,796
Share issuance as part of a business combination	59,202	59,202
Restricted share issuance	5	(432)			437
Restricted share forfeitures	0	21			(21)
Stock based compensation expense	615	615
Vesting of Long Term Incentive Plan	3	(428)			431
Share forfeitures for taxes	(252)				(252)
Treasury share purchases	(11,660)				(11,660)
Dividends paid	(6,437)		(6,437)
Balance at Mar. 31, 2023	374,642	364,318	213,013	(176,694)	(25,995)
Balance at Dec. 31, 2022	292,295	305,340	212,375	(210,490)	(14,930)
Net income	35,356
Other comprehensive income (loss)	(41,723)
Balance at Sep. 30, 2023	315,982	364,929	228,553	(252,213)	(25,287)
Balance at Mar. 31, 2023	374,642	364,318	213,013	(176,694)	(25,995)
Net income	14,966		14,966
Other comprehensive income (loss)	(16,834)			(16,834)
Restricted share issuance	3	(323)			326
Stock based compensation expense	649	649
Share forfeitures for taxes	(68)				(68)
Dividends paid	(6,367)		(6,367)
Balance at Jun. 30, 2023	366,991	364,644	221,612	(193,528)	(25,737)
Net income	13,314		13,314
Other comprehensive income (loss)	(58,685)			(58,685)
Restricted share issuance	5	(459)			464
Stock based compensation expense	744	744
Share forfeitures for taxes	(14)				(14)
Dividends paid	(6,373)		(6,373)
Balance at Sep. 30, 2023	315,982	364,929	228,553	(252,213)	(25,287)
Balance at Dec. 31, 2023	404,415	365,305	236,757	(172,554)	(25,093)
Net income	11,240		11,240
Other comprehensive income (loss)	(12,400)			(12,400)
Restricted share issuance	4	(363)			367
Restricted share forfeitures	(2)	153			(155)
Stock based compensation expense	662	662
Vesting of Long Term Incentive Plan	5	(914)			919
Share forfeitures for taxes	(529)				(529)
Dividends paid	(6,369)		(6,369)
Balance at Mar. 31, 2024	397,026	364,843	241,628	(184,954)	(24,491)
Balance at Dec. 31, 2023	404,415	365,305	236,757	(172,554)	(25,093)
Net income	31,558
Other comprehensive income (loss)	21,603
Balance at Sep. 30, 2024	439,678	365,542	249,171	(150,951)	(24,084)
Balance at Mar. 31, 2024	397,026	364,843	241,628	(184,954)	(24,491)
Net income	11,783		11,783
Other comprehensive income (loss)	(6,279)			(6,279)
Restricted share issuance	5	(484)			489
Stock based compensation expense	626	626
Share forfeitures for taxes	(79)				(79)
Dividends paid	(6,388)		(6,388)
Balance at Jun. 30, 2024	396,694	364,985	247,023	(191,233)	(24,081)
Net income	8,535		8,535
Other comprehensive income (loss)	40,282			40,282
Restricted share issuance	1	(145)			146
Restricted share forfeitures	(1)	34			(35)
Stock based compensation expense	668	668
Share forfeitures for taxes	(114)				(114)
Dividends paid	(6,387)		(6,387)
Balance at Sep. 30, 2024	$ 439,678	$ 365,542	$ 249,171	$ (150,951)	$ (24,084)

XML

Consolidated Condensed Statements of Stockholders' Equity (Parenthetical) Unaudited - $ / shares	3 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023
Retained Earnings
Cash dividend paid per share of common stock	$ 0.17	$ 0.17	$ 0.17	$ 0.17	$ 0.17	$ 0.17

XML

Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 31,558	$ 35,356
Adjustments to reconcile net income to net cash from operating activities:
Provision for credit losses	7,932	8,232
(Credit) provision for unfunded loans	(261)	635
Depreciation and amortization	4,604	5,779
Net amortization of securities	453	690
Available for sale security losses	2,680	498
Realized (gains) on equity securities	(33)	(8)
(Gain) on debt extinguishment	(444)	0
Loss on premises and equipment sales and disposals, net	391	149
Stock compensation expense	1,956	2,008
Earnings on bank owned life insurance	(1,921)	(1,720)
Income recognized from death benefit on bank owned life insurance	(125)	(105)
Origination of loans held for sale	(56,610)	(52,342)
Proceeds from loans held for sale	57,094	52,401
Net gains on sale of loans	(1,219)	(1,111)
Net change in other assets and liabilities	7,318	(2,012)
NET CASH FROM OPERATING ACTIVITIES	53,373	48,450
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities and repayments of securities available for sale	42,379	44,870
Proceeds from sales of securities available for sale	48,865	85,306
Purchases of securities available for sale	(60,334)	(650)
Proceeds from sales of equity securities	54	46
Purchase of equity securities	(56)	(52)
Proceeds from maturities and repayments of SBIC funds	800	754
Purchases of SBIC funds	(1,592)	(749)
Proceeds from redemption of regulatory stock	10,065	26,076
Purchase of regulatory stock	(7,544)	(20,170)
Loan originations and payments, net	(80,246)	(24,237)
Purchase of portfolio loans	(8,069)	0
Proceeds from loans held for sale previously classified as portfolio loans	1,594	0
Proceeds from BOLI death benefit	556	419
Additions to premises and equipment	(7,245)	(1,977)
Net cash paid in business combinations	0	(13,175)
NET CASH FROM INVESTING ACTIVITIES	(60,773)	96,461
CASH FLOWS FROM FINANCING ACTIVITIES
Net change in deposits	184,451	74,069
Net change in short-term borrowings	(70,000)	(170,000)
Redemption of subordinated debentures	(2,535)	0
Cash dividends paid	(19,038)	(19,064)
Repurchase of common shares	0	(11,544)
NET CASH FROM FINANCING ACTIVITIES	92,878	(126,539)
NET CHANGE IN CASH AND CASH EQUIVALENTS	85,478	18,372
Beginning cash and cash equivalents	103,658	75,551
Ending cash and cash equivalents	189,136	93,923
Supplemental cash flow information:
Interest paid	85,457	57,384
Supplemental noncash disclosures:
Issuance of stock awards	2,195	1,658
Issuance of stock for business combinations	0	59,202
Lease liabilities arising from obtaining right-of-use assets	$ 0	$ 1,289

XML

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 8,535	$ 11,783	$ 11,240	$ 13,314	$ 14,966	$ 7,075	$ 31,558	$ 35,356

XML

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

Principles of Consolidation:

Farmers National Banc Corp. (“Company” or “Farmers”) is a Financial Holding Company registered under the Bank Holding Company Act of 1956, as amended. The Company provides full banking services through its nationally chartered subsidiary, The Farmers National Bank of Canfield (“Bank”). The consolidated financial statements also include the accounts of the Bank’s subsidiaries; Farmers National Insurance, LLC (“Insurance”) and Farmers of Canfield Investment Co. (“Investments”). The Company provides trust and retirement consulting services through its subsidiary, Farmers Trust Company (“Trust”), and insurance services through the Bank’s subsidiary, Insurance. Farmers National Captive, Inc. (“Captive”) was a wholly-owned insurance subsidiary of the Company that provided property and casualty insurance coverage to the Company and its subsidiaries until November 2023 when the Company dissolved the entity. Captive pooled resources with eleven similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves and to provide insurance where not available or economically feasible. The consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries, along with the Trust and Captive. All significant intercompany balances and transactions have been eliminated in the consolidation.

Basis of Presentation:

The unaudited consolidated condensed financial statements have been prepared in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report to Shareholders included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). The interim consolidated financial statements include all adjustments (consisting of only normal recurring items) that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year. Certain items included in the prior period financial statements were reclassified to conform to the current period presentation. There was no effect on net income or total stockholders’ equity.

Estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Segments:

The Company provides a broad range of financial services to individuals and companies in northeastern Ohio and western Pennsylvania. Operations are managed and financial performance is primarily aggregated and reported in two lines of business, the Bank segment and the Trust segment.

Equity:

There are 50,000,000 shares authorized and available for issuance as of September 30, 2024. Outstanding shares at September 30, 2024 were 37,573,650.

Comprehensive Income:

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized gains and losses on securities available for sale and changes in the funded status of the post-retirement plan, which are recognized as components of stockholders’ equity, net of tax effect.

Updates to Significant Accounting Policies:

New Accounting Standard:

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments of this update are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The main new provision requires significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The amendments of this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

On March 12, 2020, the FASB issued ASU 2020-04 and amended by ASU 2021-01, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, to ease the burden of accounting for contract modifications related to reference rate reform. The amendments in ASU 2020-04 create a new Topic in the Codification, ASC 848, Reference Rate Reform, which contains guidance that is designed to simplify how entities account for contracts that are modified to replace LIBOR or other benchmark interest rates with new rates. The amendments in ASU 2020-04 gave entities the option to apply expedients and exceptions to contract modifications that are made until December 31, 2022, if certain criteria are met. If adopted, these amendments and exceptions should be applied to all eligible modifications to contracts that are accounted for under an ASC Topic or industry Subtopic. The guidance in ASC 848 does not apply to any contract modifications that were made after December 31, 2022. In December 2022, the FASB issued ASU 2022-06 that defers the sunset date from December 31, 2022 to December 31, 2024. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

XML

Business Combinations

9 Months Ended

Sep. 30, 2024

Business Combinations [Abstract]

Business Combinations

Business Combinations:

On January 1, 2023, the Company completed its previously announced merger with Emclaire Financial Corp., a Pennsylvania corporation and registered financial holding company (“Emclaire”), pursuant to the Agreement and Plan of Merger dated as of March 23, 2022. The Farmers National Bank of Emlenton, the banking subsidiary of Emclaire, merged with and into The Farmers National Bank of Canfield, the national banking subsidiary of the Company, with Farmers Bank as the surviving bank. Pursuant to the terms of the Merger Agreement, at the effective time of the Merger (the “Effective Time”) Emclaire merged with and into Merger Sub (the “Merger”), with Merger Sub as the surviving entity in the Merger. Promptly following the consummation of the Merger, Merger Sub was dissolved and liquidated and The Farmers National Bank of Emlenton, the banking subsidiary of Emclaire, merged with and into The Farmers National Bank of Canfield, the national banking subsidiary of the Company, with Farmers Bank as the surviving bank. Pursuant to the terms of the Merger Agreement, at the effective time of the merger, each common share, without par value, of Emclaire common shares issued and outstanding was converted into the right to receive, without interest, $40.00 in cash or 2.15 common shares, without par value, of the Company's common shares, subject to an overall limitation of 70% of the Emclaire common shares being exchanged and the remaining 30% of Emclaire common shares being exchanged for the cash. The transaction created expansion for the Company in Pennsylvania and into the Pittsburgh market. The Company issued 4.2 million shares of its common stock along with cash of $33.4 million, which represented a transaction value of approximately $92.6 million based on its closing stock price of $14.12 on December 31, 2022.

In accordance with ASC 805, the Company expensed $268 thousand and $5.0 million of merger related costs, for the Emclaire acquisition, during the three and nine month periods ended September 30, 2023, respectively. There were no merger related expenses recorded during 2024. The Company recorded goodwill of $72.9 million as a result of the combination. Goodwill represents the future economic benefits arising from net assets acquired that are not individually identified and separately recognized and is attributable to synergies, including the reduction of personnel and overlapping contracts, expected to be derived from the Company’s strategy to enhance and expand its presence in Pennsylvania. The merger offers the Company the opportunity to increase profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded market area. The goodwill was determined not to be deductible for income tax purposes.

The following table summarizes the consideration paid for Emclaire and the amounts of the assets acquired and liabilities assumed on the closing date of the acquisition.

(In Thousands of Dollars)
Consideration
Cash	$	33,440
Stock		59,202
Fair value of total consideration transferred	$	92,642
Fair value of assets acquired
Cash and cash equivalents	$	20,265
Securities available for sale		126,970
Other investments		7,795
Loans, net		740,659
Premises and equipment		14,808
Bank owned life insurance		22,485
Core deposit intangible		19,249
Current and deferred taxes		17,708
Other assets		7,682
Total assets acquired		977,621
Fair value of liabilities assumed
Deposits		875,813
Short-term borrowings		75,000
Accrued interest payable and other liabilities		7,104
Total liabilities		957,917
Net assets acquired	$	19,704
Goodwill created		72,938
Total net assets acquired	$	92,642

The fair value of net assets acquired includes fair value adjustments to certain receivables that were considered performing as of the acquisition date. The fair value adjustments were determined using the income method, discounted cash flow approach. However, the Company believes that all contractual cash flows related to these financial instruments will be collected. As such, these receivables were not considered purchase credit deteriorated (“PCD”) at the acquisition date and were not subject to the guidance relating to PCD loans. Receivables acquired that were not subject to these requirements had a fair value and gross contractual amounts receivable of $714.4 million and $764.8 million on the date of acquisition.

The fair value of purchased financial assets that were classified as PCD loans are discussed in the loan footnote.

XML

Securities

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Securities

Securities:

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2024 and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). No allowance for credit losses have been recognized for the securities portfolio at September 30, 2024 or December 31, 2023.

			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
September 30, 2024
U.S. Treasury and U.S. government sponsored entities	$	132,478	$	119	$	(13,004	)	$	119,593
State and political subdivisions		611,001		4,159		(87,438	)		527,722
Corporate bonds		18,494		313		(371	)		18,436
Mortgage-backed securities		601,239		491		(88,517	)		513,213
Collateralized mortgage obligations		116,764		482		(5,485	)		111,761
Small Business Administration		2,822		0		(197	)		2,625
Totals	$	1,482,798	$	5,564	$	(195,012	)	$	1,293,350

			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
December 31, 2023
U.S. Treasury and U.S. government sponsored entities	$	145,439	$	113	$	(17,597	)	$	127,955
State and political subdivisions		644,880		4,792		(93,503	)		556,169
Corporate bonds		18,554		187		(466	)		18,275
Mortgage-backed securities		624,529		1		(104,144	)		520,386
Collateralized mortgage obligations		80,227		331		(6,559	)		73,999
Small Business Administration		3,212		0		(295	)		2,917
Totals	$	1,516,841	$	5,424	$	(222,564	)	$	1,299,701

The proceeds from sales of available-for-sale securities and the associated gains and losses are as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
Proceeds	$	4,109		$	15,388		$	48,865		$	85,306
Gross gains		0			0			17			441
Gross losses		(421	)		(618	)		(2,697	)		(939	)

The amortized cost and fair value of the debt securities portfolio are shown in the table below by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call, or prepayment penalties. Securities not due at a single maturity date are shown separately.

	September 30, 2024
(In Thousands of Dollars)	Amortized Cost		Fair Value
Maturity
Within one year	$	3,154	$	3,188
One to five years		66,494		60,894
Five to ten years		162,857		152,018
Beyond ten years		529,468		449,651
Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities		720,825		627,599
Total	$	1,482,798	$	1,293,350

The following table summarizes the investment securities with unrealized losses for which an allowance for credit losses has not been recorded at September 30, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position.

	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands of Dollars)	Value		Loss			Value		Loss			Value		Loss
September 30, 2024
U.S. Treasury and U.S. government sponsored entities	$	2,758	$	(252	)	$	114,823	$	(12,752	)	$	117,581	$	(13,004	)
State and political subdivisions		32,039		(2,730	)		418,686		(84,708	)		450,725		(87,438	)
Corporate bonds		2,392		(34	)		8,857		(337	)		11,249		(371	)
Mortgage-backed securities		0		0			497,592		(88,517	)		497,592		(88,517	)
Collateralized mortgage obligations		20,871		(315	)		49,258		(5,170	)		70,129		(5,485	)
Small Business Administration		0		0			2,625		(197	)		2,625		(197	)
Total	$	58,060	$	(3,331	)	$	1,091,841	$	(191,681	)	$	1,149,901	$	(195,012	)

	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands of Dollars)	Value		Loss			Value		Loss			Value		Loss
December 31, 2023
U.S. Treasury and U.S. government sponsored entities	$	399	$	(1	)	$	122,361	$	(17,596	)	$	122,760	$	(17,597	)
State and political subdivisions		15,852		(1,684	)		428,416		(91,819	)		444,268		(93,503	)
Corporate bonds		8,463		(284	)		3,881		(182	)		12,344		(466	)
Mortgage-backed securities		5,113		(76	)		515,259		(104,068	)		520,372		(104,144	)
Collateralized mortgage obligations		20,019		(980	)		43,808		(5,579	)		63,827		(6,559	)
Small Business Administration		0		0			2,917		(295	)		2,917		(295	)
Total	$	49,846	$	(3,025	)	$	1,116,642	$	(219,539	)	$	1,166,488	$	(222,564	)

As of September 30, 2024, the Company’s security portfolio consisted of 944 securities, 756 of which were in an unrealized loss position. The treasury, agency, mortgage-backed securities, collateralized mortgage obligations and small business administration securities that the Company owns are all issued by government sponsored entities and therefore contain no potential for credit loss. The Company does not consider any of its available-for-sale securities with unrealized losses to be attributable to credit-related factors, as the unrealized losses have occurred as a result of changes in noncredit related factors such as changes in interest rates, market spreads and market conditions subsequent to purchase, not credit deterioration. The vast majority of the Company's state and political subdivisions holdings are of high credit quality, and are rated AA or higher. In addition, management has both the ability and intent to hold the securities for a period of time sufficient to allow for the recovery in fair value. As of September 30, 2024, the Company has not recorded an allowance for credit losses on available for sale (“AFS”) securities.

Equity Securities

The Company also holds equity securities which include $15.7 million in Small Business Investment Company (“SBIC”) partnership investments as well as $261 thousand in local and regional bank holdings and other miscellaneous equity funds at September 30, 2024. At December 31, 2023, the Company held $14.9 million in SBIC investments and $226 thousand in local and regional bank holdings and other miscellaneous equity funds. Gains on these equity funds were recognized as income in 2024 and 2023 in compliance with ASU 2016-01, which requires all equity securities to be measured at their fair value with changes in fair value being recognized through the statements of income.

XML

Loans

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Loans

Loans:

Loan balances were as follows:

(In Thousands of Dollars)	September 30, 2024			December 31, 2023
Commercial real estate
Owner occupied	$	396,970		$	399,273
Non-owner occupied		684,603			712,315
Farmland		203,387			202,950
Other		290,801			224,218
Commercial
Commercial and industrial		358,247			346,354
Agricultural		58,386			58,338
Residential real estate
1-4 family residential		852,444			843,697
Home equity lines of credit		155,967			142,441
Consumer
Indirect		239,075			226,815
Direct		20,404			23,805
Other		9,752			9,164
Total loans	$	3,270,036		$	3,189,370
Net deferred loan costs		10,481			8,757
Allowance for credit losses		(36,186	)		(34,440	)
Net loans	$	3,244,331		$	3,163,687

Allowance for credit loss activity

The following tables present the activity in the allowance for credit losses by portfolio segment for the three and nine month periods ended September 30, 2024 and 2023:

Three Months Ended September 30, 2024

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate		Consumer			Total
Allowance for credit losses
Beginning balance	$	17,223		$	4,628		$	7,422	$	4,718		$	33,991
(Credit) Provision for credit losses		6,226			(24	)		117		488			6,807
Loans charged off		(4,401	)		(396	)		0		(319	)		(5,116	)
Recoveries		3			407			10		84			504
Total ending allowance balance	$	19,051		$	4,615		$	7,549	$	4,971		$	36,186

Nine Months Ended September 30, 2024

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	18,150		$	5,087		$	6,916		$	4,287		$	34,440
(Credit) Provision for credit losses		5,427			466			676			1,363			7,932
Loans charged off		(4,547	)		(1,411	)		(81	)		(1,020	)		(7,059	)
Recoveries		21			473			38			341			873
Total ending allowance balance	$	19,051		$	4,615		$	7,549		$	4,971		$	36,186

Three Months Ended September 30, 2023

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	18,537		$	5,295		$	6,866		$	4,259		$	34,957
PCD ACL on loans acquired		0			0			0			0			0
(Credit) Provision for credit losses		182			(45	)		13			32			182
Loans charged off		(3	)		(154	)		(157	)		(211	)		(525	)
Recoveries		0			6			12			121			139
Total ending allowance balance	$	18,716		$	5,102		$	6,734		$	4,201		$	34,753

Nine Months Ended September 30, 2023

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	14,840		$	4,186		$	4,374		$	3,578		$	26,978
PCD ACL on loans acquired		850			138			11			0			999
Provision for credit losses		3,185			1,638			2,542			867			8,232
Loans charged off		(160	)		(888	)		(251	)		(666	)		(1,965	)
Recoveries		1			28			58			422			509
Total ending allowance balance	$	18,716		$	5,102		$	6,734		$	4,201		$	34,753

The cumulative loss rate used as the basis for the estimate of credit losses is comprised of the Company's historical loss experience from December 31, 2011 to September 30, 2024. As of September 30, 2024, the Company expects that the markets in which it operates will experience minimal changes to economic conditions, stable trend in unemployment rate, and a level trend of delinquencies. Management adjusted historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company's estimate was a cumulative loss rate covering the expected contractual term of the portfolio. While there are many factors that go into the calculation of the allowance for credit losses, the change in the balances from September 30, 2023 to September 30,

2024 is largely attributed to adjustments made to an increase in the specific reserve related to the individual evaluation of a commercial real estate non-owner occupied loan, adjustments made to the Portfolio Composition and Growth qualitative factor and increased loan balances. These factors were partially offset by adjustments made to the Commercial Staffing qualitative factor and release of reserves related to loans transferred to held for sale.

The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of September 30, 2024 and December 31, 2023:

(In Thousands of Dollars)	Nonaccrual with no allowance for credit loss		Nonaccrual with an allowance for credit loss		Loans past due over 89 days still accruing
September 30, 2024
Commercial real estate
Owner occupied	$	1,576	$	852	$	0
Non-owner occupied		0		8,105		0
Farmland		1,789		5		0
Other		0		0		0
Commercial
Commercial and industrial		224		1,027		0
Agricultural		179		237		0
Residential real estate
1-4 family residential		526		3,489		91
Home equity lines of credit		96		146		0
Consumer
Indirect		87		500		0
Direct		66		75		0
Other		0		6		0
Total loans	$	4,543	$	14,442	$	91

(In Thousands of Dollars)	Nonaccrual with no allowance for credit loss		Nonaccrual with an allowance for credit loss		Loans past due over 89 days still accruing
December 31, 2023
Commercial real estate
Owner occupied	$	1,804	$	830	$	0
Non-owner occupied		19		1,491		0
Farmland		1,957		9		0
Other		0		80		0
Commercial
Commercial and industrial		394		1,408		0
Agricultural		203		317		0
Residential real estate
1-4 family residential		348		3,009		460
Home equity lines of credit		240		210		69
Consumer
Indirect		22		300		125
Direct		65		69		1
Other		0		5		0
Total loans	$	5,052	$	7,728	$	655

The above table for the period ending December 31, 2023 does not include a $1.63 million non-owner occupied commercial real estate loan that was held-for-sale and in nonaccrual status. There were no nonaccrual or past due loans related to loans held-for-sale at September 30, 2024.

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2024 and December 31, 2023:

(In Thousands of Dollars)	Real Estate		Business Assets		Vehicles		Cash
September 30, 2024
Commercial real estate
Owner occupied	$	1,576	$	0	$	0	$	0
Non-owner occupied		8,119		0		0		0
Farmland		1,789		0		0		0
Other		0		0		0		0
Commercial
Commercial and industrial		79		145		0		0
Agricultural		0		179		0		0
Residential real estate
1-4 family residential		4,001		0		0		0
Home equity lines of credit		270		0		0		0
Consumer
Indirect		0		0		123		0
Direct		0		0		12		66
Other		0		0		0		0
Total loans	$	15,834	$	324	$	135	$	66

(In Thousands of Dollars)	Real Estate		Business Assets		Vehicles		Cash
December 31, 2023
Commercial real estate
Owner occupied	$	1,804	$	0	$	0	$	0
Non-owner occupied		1,335		0		0		0
Farmland		1,957		0		0		0
Other		0		0		0		0
Commercial
Commercial and industrial		94		867		0		0
Agricultural		0		203		0		0
Residential real estate
1-4 family residential		3,352		0		0		0
Home equity lines of credit		294		0		0		0
Consumer
Indirect		0		0		53		0
Direct		0		0		19		66
Other		0		0		0		0
Total loans	$	8,836	$	1,070	$	72	$	66

The following tables present the aging of the recorded investment in past due loans as of September 30, 2024 and December 31, 2023 by class of loans.

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
September 30, 2024
Commercial real estate
Owner occupied	$	706	$	448	$	2,428	$	3,582	$	393,158	$	396,740
Non-owner occupied		3,166		0		8,105		11,271		672,893		684,164
Farmland		0		0		1,794		1,794		201,397		203,191
Other		0		639		0		639		289,761		290,400
Commercial
Commercial and industrial		240		281		1,251		1,772		358,063		359,835
Agricultural		324		115		416		855		58,392		59,247
Residential real estate
1-4 family residential		5,367		1,542		4,106		11,015		841,767		852,782
Home equity lines of credit		672		92		242		1,006		155,066		156,072
Consumer
Indirect		1,285		512		587		2,384		245,505		247,889
Direct		62		11		141		214		20,228		20,442
Other		100		0		6		106		9,649		9,755
Total loans	$	11,922	$	3,640	$	19,076	$	34,638	$	3,245,879	$	3,280,517

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
December 31, 2023
Commercial real estate
Owner occupied	$	302	$	293	$	2,634	$	3,229	$	395,799	$	399,028
Non-owner occupied		90		0		1,510		1,600		710,195		711,795
Farmland		365		0		1,966		2,331		200,395		202,726
Other		0		0		80		80		223,697		223,777
Commercial
Commercial and industrial		540		199		1,802		2,541		345,278		347,819
Agricultural		292		40		520		852		58,223		59,075
Residential real estate
1-4 family residential		6,819		4,488		3,817		15,124		828,437		843,561
Home equity lines of credit		729		34		519		1,282		141,189		142,471
Consumer
Indirect		2,045		289		447		2,781		232,105		234,886
Direct		153		23		135		311		23,514		23,825
Other		4		0		5		9		9,155		9,164
Total loans	$	11,339	$	5,366	$	13,435	$	30,140	$	3,167,987	$	3,198,127

XML

Loan Restructurings

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Loan Restructurings

Loan Restructurings

The Company adopted the accounting guidance in ASU No. 2022-02, effective as of January 1, 2023, which eliminates the recognition and measurement of troubled debt restructurings (“TDR”). Due to the removal of the TDR designation, the Company evaluates all loan restructurings according to the accounting guidance for loan modifications to determine if the restructuring results in a new loan or a continuation of the existing loan. Loan modifications to borrowers experiencing financial difficulty that result in a direct change in the timing or amount of contractual cash flows include situations where there is principal forgiveness, interest rate reductions, other-than-insignificant payment delays, term extensions, and combinations of the listed modifications. Therefore, the disclosures related to loan restructurings are only for modifications that directly affect cash flows.

Any restructuring of a loan in which the borrower has experienced financial difficulty and the terms of the loan are more favorable than would generally be considered for borrowers with the same credit characteristics would be individually evaluated. Otherwise, the restructured loan remains in the appropriate segment in the ACL model.

The following table presents the amortized cost basis of loans that were both experiencing financial difficulty and modified during the three and nine months ended September 30, 2024 and September 30, 2023, by class and type of modification. The percentage of the amortized cost basis of loans that were modified to borrowers in financial distress as compared to the amortized cost basis of each class of financing receivable is also presented below:

For the three month period ended September 30, 2024, there were no modifications to borrowers experiencing financial difficulty.

Nine Months Ended September 30, 2024	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Principal Forgiveness		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable
Residential real estate
Home equity lines of credit	$	0	$	0	$	29	$	20	$	49		0.03	%
Total modifications to borrowers experiencing financial difficulty	$	0	$	0	$	29	$	20	$	49		0.00	%

Three Months Ended September 30, 2023	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Principal Forgiveness		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable
Residential real estate
1-4 family residential	$	0	$	0	$	31	$	133	$	164		0.02	%
Total modifications to borrowers experiencing financial difficulty	$	0	$	0	$	31	$	133	$	164		0.01	%

Nine Months Ended September 30, 2023	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Principal Forgiveness		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable
Commercial
Commercial and industrial	$	50	$	0	$	0	$	0	$	50		0.01	%
Residential real estate
1-4 family residential		0		0		31		133		164		0.02	%
Total modifications to borrowers experiencing financial difficulty	$	50	$	0	$	31	$	133	$	214		0.01	%

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and September 30, 2023:

For the three month period ended September 30, 2024, there were no loan modification for borrowers experiencing financial difficulty.

	Payment Deferral	Term Extension		Interest Rate Reduction
	Weighted-Average Years Added to the Life	Weighted-Average Years Added to the Life		Weighted-Average Contractual Interest Rate
Nine Months Ended September 30, 2024				From			To
Residential real estate
Home equity lines of credit			10		10.45	%		5.91	%

	Payment Deferral		Term Extension		Interest Rate Reduction
	Weighted-Average Years Added to the Life		Reduction of Amortized Cost Basis of the Loans		Weighted-Average Contractual Interest Rate
Three Months Ended September 30, 2023					From			To
Residential real estate
1-4 family residential				5		4.77	%		3.38	%
	Payment Deferral		Term Extension		Interest Rate Reduction
	Weighted-Average Years Added to the Life		Reduction of Amortized Cost Basis of the Loans		Weighted-Average Contractual Interest Rate
Nine Months Ended September 30, 2023					From			To
Commercial
Commercial and industrial		0.5
Residential real estate
1-4 family residential				5		4.77	%		3.38	%

The Company closely monitors the performance of the loans that are modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the performance of such loans that have been modified in the three and nine months ended September 30, 2024 and September 30, 2023:

For the three month period ended September 30, 2024, there were no loan modification for borrowers experiencing financial difficulty.

Nine Months Ended September 30, 2024	Payment status (Amortized cost Basis)
(In Thousands of Dollars)	Current		30-89 Days past due		90+ Days past due
Accrual restructured loans
Residential real estate
Home equity lines of credit	$	0	$	20	$	0
Total accruing restructured loans	$	0	$	20	$	0
Nonaccrual restructured loans
Residential real estate
Home equity lines of credit		0		0		29
Total nonaccrual restructured loans	$	0	$	0	$	29
Total restructured loans	$	0	$	20	$	29

Three Months Ended September 30, 2023	Payment status (Amortized cost Basis)
(In Thousands of Dollars)	Current		30-89 Days past due		90+ Days past due
Residential real estate
1-4 family residential	$	164	$	0	$	0
Total accruing restructured loans	$	164	$	0	$	0
Total restructured loans	$	164	$	0	$	0

Nine Months Ended September 30, 2023	Payment status (Amortized cost Basis)
(In Thousands of Dollars)	Current		30-89 Days past due		90+ Days past due
Commercial
Commercial and industrial	$	50	$	0	$	0
Residential real estate
1-4 family residential		164		0		0
Total accruing restructured loans	$	214	$	0	$	0
Nonaccrual restructured loans
Total nonaccrual restructured loans	$	0	$	0	$	0
Total restructured loans	$	214	$	0	$	0

As of September 30, 2024, the Company had no commitments to lend any additional funds on restructured loans.

The following table presents the amortized cost basis of loans that had a payment default during the three and nine months ended September 30, 2024 and were modified in the twelve months prior to that default to borrowers experiencing financial difficulty. For purposes of this disclosure a default occurs when within 12 months of the original modification, a loan is 30 days contractually past due under the modified terms:

Three Months Ended September 30, 2024	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction
Residential real estate
1-4 family residential	$	0	$	37	$	0	$	0
Home equity lines of credit		0		0		29		20
Total modifications to borrowers experiencing financial difficulty	$	0	$	37	$	29	$	20

Nine Months Ended September 30, 2024	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Term Extension		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction
Residential real estate
1-4 family residential	$	0	$	37	$	0	$	0
Home equity lines of credit		0		0		29		20
Total modifications to borrowers experiencing financial difficulty	$	0	$	37	$	29	$	20

For the three and nine months ended September 30, 2023, the Company had no loans that defaulted during the period and had been modified in the twelve months prior to that default to borrowers experiencing financial difficulty.

Upon the Company's determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or portion of the loan) is written off. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance of the credit losses is adjusted by the same amount.

XML

Credit Quality Indicators

9 Months Ended

Sep. 30, 2024

Risks and Uncertainties [Abstract]

Credit Quality Indicators

Credit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company establishes a risk rating at origination for all commercial loan and commercial real estate relationships. For relationships over $3 million, management monitors the loans on an ongoing basis for any changes in the borrower’s ability to service their debt. Management also affirms the risk ratings for the loans in their respective portfolios on an annual basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. Substandard loans are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.

As of September 30, 2024 and December 31, 2023, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

(In Thousands of Dollars)	Pass		Special Mention		Sub standard		Doubtful		Total
September 30, 2024
Commercial real estate
Owner occupied	$	385,103	$	4,908	$	6,729	$	0	$	396,740
Non-owner occupied		637,248		9,976		35,765		1,175		684,164
Farmland		200,902		0		2,289		0		203,191
Other		280,656		1,106		8,638		0		290,400
Commercial
Commercial and industrial		348,796		171		10,868		0		359,835
Agricultural		58,760		67		420		0		59,247
Total loans	$	1,911,465	$	16,228	$	64,709	$	1,175	$	1,993,577

(In Thousands of Dollars)	Pass		Special Mention		Sub standard		Total
December 31, 2023
Commercial real estate
Owner occupied	$	386,015	$	9,628	$	3,385	$	399,028
Non-owner occupied		648,063		27,938		35,794		711,795
Farmland		200,240		0		2,486		202,726
Other		215,459		0		8,318		223,777
Commercial
Commercial and industrial		334,764		646		12,409		347,819
Agricultural		58,506		17		552		59,075
Total loans	$	1,843,047	$	38,229	$	62,944	$	1,944,220

The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses. For residential, consumer indirect and direct loan classes, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The above table for the period ending December 31, 2023 does not include a $1.63 million non-owner occupied commercial real estate loan that was held-for-sale and risk rated substandard. There were no special mention or substandard loans related to loans held-for-sale at September 30, 2024. In the 1-4 family residential real estate portfolio at September 30, 2024, other real estate owned and foreclosure properties were $0 and $361 thousand, respectively. At December 31, 2023, other real estate owned and foreclosure properties were $92 thousand and $207 thousand, respectively.

The following tables present the recorded investment in residential, consumer indirect and direct auto loans based on payment activity as of September 30, 2024 and December 31, 2023. Nonperforming loans are loans past due 90 days or more and still accruing interest and nonaccrual loans.

	Residential Real Estate				Consumer
(In Thousands of Dollars)	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
September 30, 2024
Performing	$	848,676	$	155,830	$	247,302	$	20,301	$	9,749
Nonperforming		4,106		242		587		141		6
Total loans	$	852,782	$	156,072	$	247,889	$	20,442	$	9,755

	Residential Real Estate				Consumer
(In Thousands of Dollars)	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
December 31, 2023
Performing	$	839,744	$	141,952	$	234,439	$	23,690	$	9,159
Nonperforming		3,817		519		447		135		5
Total loans	$	843,561	$	142,471	$	234,886	$	23,825	$	9,164

The following table presents total loans by risk categories and year of origination:

	Term Loans Amortized Cost Basis by Origination Year
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial real estate - Owner occupied:
Risk Rating
Pass	$	34,754	$	55,619	$	49,745	$	61,781	$	47,164	$	133,476	$	2,564	$	385,103
Special mention		0		3,250		0		1,130		0		528		0		4,908
Substandard		0		0		2,313		0		628		3,600		188		6,729
Total commercial real estate - Owner occupied loans	$	34,754	$	58,869	$	52,058	$	62,911	$	47,792	$	137,604	$	2,752	$	396,740
Commercial real estate - Owner Occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	21	$	0	$	0	$	21
Commercial real estate - Non-owner occupied:
Risk Rating
Pass	$	28,980	$	47,673	$	133,108	$	81,447	$	73,555	$	265,029	$	7,456	$	637,248
Special mention		0		0		536		314		0		9,126		0		9,976
Substandard		7,141		409		0		10,910		6,925		10,380		0		35,765
Doubtful		0		0		0		1,175		0		0		0		1,175
Total commercial real estate - Non-owner occupied loans	$	36,121	$	48,082	$	133,644	$	93,846	$	80,480	$	284,535	$	7,456	$	684,164
Commercial real estate - Non-owner occupied: Current period gross write-offs	$	0	$	0	$	0	$	4,380	$	146	$	0	$	0	$	4,526
Commercial real estate - Farmland:
Risk Rating
Pass	$	11,476	$	22,178	$	39,688	$	19,790	$	32,079	$	72,989	$	2,702	$	200,902
Substandard		0		0		0		319		0		1,970		0		2,289
Total commercial real estate - Farmland loans	$	11,476	$	22,178	$	39,688	$	20,109	$	32,079	$	74,959	$	2,702	$	203,191
Commercial real estate - Other:
Risk Rating
Pass	$	28,993	$	101,466	$	70,158	$	46,221	$	8,595	$	24,624	$	599	$	280,656
Special mention		0		993		0		113		0		0		0		1,106
Substandard		8,602		0		0		0		0		36		0		8,638
Total commercial real estate - Other loans	$	37,595	$	102,459	$	70,158	$	46,334	$	8,595	$	24,660	$	599	$	290,400

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial - Commercial and industrial:
Risk Rating
Pass	$	59,602	$	87,280	$	59,819	$	29,847	$	13,538	$	23,284	$	75,426	$	348,796
Special mention		0		0		0		171		0		0		0		171
Substandard		80		87		5,851		281		191		1,804		2,574		10,868
Total commercial - Commercial and industrial loans	$	59,682	$	87,367	$	65,670	$	30,299	$	13,729	$	25,088	$	78,000	$	359,835
Commercial - Commercial and industrial: Current period gross write-offs	$	0	$	231	$	284	$	104	$	220	$	164	$	313	$	1,316
Commercial - Agricultural:
Risk Rating
Pass	$	7,691	$	12,502	$	14,426	$	6,352	$	2,216	$	1,152	$	14,421	$	58,760
Special mention		0		0		0		0		0		0		67		67
Substandard		0		1		45		63		172		139		0		420
Total commercial - Agricultural loans	$	7,691	$	12,503	$	14,471	$	6,415	$	2,388	$	1,291	$	14,488	$	59,247
Commercial - Agricultural: Current period gross write-offs	$	0	$	0	$	36	$	13	$	29	$	17	$	0	$	95
Residential real estate - 1-4 family residential:
Payment Performance
Performing	$	62,632	$	71,869	$	161,600	$	157,665	$	123,755	$	267,898	$	3,257	$	848,676
Nonperforming		0		0		24		299		1,920		1,863		0		4,106
Total residential real estate - 1-4 family residential loans	$	62,632	$	71,869	$	161,624	$	157,964	$	125,675	$	269,761	$	3,257	$	852,782
Residential real estate - 1-4 family residential: Current period gross write-offs	$	0	$	0	$	0	$	17	$	0	$	64	$	0	$	81
Residential real estate - Home equity lines of credit:
Payment Performance
Performing	$	0	$	166	$	61	$	169	$	95	$	4,491	$	150,848	$	155,830
Nonperforming		0		0		29		0		0		161		52		242
Total residential real estate - Home equity lines of credit loans	$	0	$	166	$	90	$	169	$	95	$	4,652	$	150,900	$	156,072

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Consumer - Indirect:
Payment Performance
Performing	$	68,575	$	60,128	$	54,533	$	25,248	$	15,820	$	22,998	$	0	$	247,302
Nonperforming		0		81		189		153		68		96		0		587
Total consumer - Indirect loans	$	68,575	$	60,209	$	54,722	$	25,401	$	15,888	$	23,094	$	0	$	247,889
Consumer - Indirect: Current period gross write-offs	$	10	$	65	$	89	$	150	$	93	$	336	$	0	$	743
Consumer - Direct:
Payment Performance
Performing	$	2,246	$	2,539	$	2,735	$	1,489	$	906	$	10,039	$	347	$	20,301
Nonperforming		0		9		6		35		66		25		0		141
Total consumer - Direct loans	$	2,246	$	2,548	$	2,741	$	1,524	$	972	$	10,064	$	347	$	20,442
Consumer - Direct: Current period gross write-offs	$	0	$	7	$	29	$	5	$	5	$	91	$	0	$	137
Consumer - Other:
Payment Performance
Performing	$	0	$	0	$	0	$	60	$	100	$	375	$	9,214	$	9,749
Nonperforming		0		0		0		0		0		1		5		6
Total consumer - Other loans	$	0	$	0	$	0	$	60	$	100	$	376	$	9,219	$	9,755
Consumer - Other: Current period gross write-offs	$	0	$	0	$	1	$	0	$	0	$	139	$	0	$	140

	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial real estate - Owner occupied:
Risk Rating
Pass	$	57,983	$	58,178	$	66,205	$	42,023	$	48,849	$	109,831	$	2,946	$	386,015
Special mention		0		293		0		8,779		0		556		0		9,628
Substandard		0		0		0		10		490		2,701		184		3,385
Total commercial real estate - Owner occupied loans	$	57,983	$	58,471	$	66,205	$	50,812	$	49,339	$	113,088	$	3,130	$	399,028
Commercial real estate - Owner Occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	1	$	0	$	0	$	1
Commercial real estate - Non-owner occupied:
Risk Rating
Pass	$	49,177	$	135,433	$	88,188	$	77,713	$	81,079	$	205,729	$	10,744	$	648,063
Special mention		0		0		12,156		0		6,565		9,217		0		27,938
Substandard		0		0		3,972		10,037		3,492		17,794		499		35,794
Total commercial real estate - Non-owner occupied loans	$	49,177	$	135,433	$	104,316	$	87,750	$	91,136	$	232,740	$	11,243	$	711,795
Commercial real estate - Non-owner occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	144	$	201	$	0	$	345
Commercial real estate - Farmland:
Risk Rating
Pass	$	22,576	$	40,101	$	20,890	$	34,036	$	18,634	$	59,900	$	4,103	$	200,240
Substandard		0		0		330		0		26		2,130		0		2,486
Total commercial real estate - Farmland loans	$	22,576	$	40,101	$	21,220	$	34,036	$	18,660	$	62,030	$	4,103	$	202,726
Commercial real estate - Farmland: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	3	$	0	$	3
Commercial real estate - Other:
Risk Rating
Pass	$	68,911	$	56,753	$	47,895	$	9,063	$	8,516	$	23,269	$	1,052	$	215,459
Substandard		0		0		0		8,186		0		132		0		8,318
Total commercial real estate - Other loans	$	68,911	$	56,753	$	47,895	$	17,249	$	8,516	$	23,401	$	1,052	$	223,777

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial - Commercial and industrial:
Risk Rating
Pass	$	90,807	$	85,255	$	40,444	$	21,794	$	9,736	$	23,030	$	63,698	$	334,764
Special mention		0		141		355		21		0		0		129		646
Substandard		195		3,551		980		404		1,077		699		5,503		12,409
Total commercial - Commercial and industrial loans	$	91,002	$	88,947	$	41,779	$	22,219	$	10,813	$	23,729	$	69,330	$	347,819
Commercial - Commercial and industrial: Current period gross write-offs	$	0	$	178	$	579	$	11	$	16	$	394	$	0	$	1,178
Commercial - Agricultural:
Risk Rating
Pass	$	13,738	$	17,368	$	8,917	$	3,584	$	1,386	$	1,133	$	12,380	$	58,506
Special mention		0		0		0		0		0		0		17		17
Substandard		0		33		118		225		24		152		0		552
Total commercial - Agricultural loans	$	13,738	$	17,401	$	9,035	$	3,809	$	1,410	$	1,285	$	12,397	$	59,075
Commercial - Agricultural: Current period gross write-offs	$	0	$	15	$	70	$	3	$	0	$	6	$	0	$	94
Residential real estate - 1-4 family residential:
Payment Performance
Performing	$	63,365	$	171,862	$	164,469	$	132,989	$	49,380	$	254,027	$	3,652	$	839,744
Nonperforming		37		58		312		1,645		115		1,650		0		3,817
Total residential real estate - 1-4 family residential loans	$	63,402	$	171,920	$	164,781	$	134,634	$	49,495	$	255,677	$	3,652	$	843,561
Residential real estate - 1-4 family residential: Current period gross write-offs	$	52	$	0	$	49	$	130	$	0	$	129	$	0	$	360
Residential real estate - Home equity lines of credit:
Payment Performance
Performing	$	0	$	19	$	14	$	111	$	51	$	3,302	$	138,455	$	141,952
Nonperforming		0		26		13		15		0		465		0		519
Total residential real estate - Home equity lines of credit loans	$	0	$	45	$	27	$	126	$	51	$	3,767	$	138,455	$	142,471
Residential real estate - Home equity lines of credit: Current period gross write-offs	$	0	$	0	$	0	$	8	$	0	$	16	$	0	$	24

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Consumer - Indirect:
Payment Performance
Performing	$	74,425	$	71,705	$	32,528	$	21,163	$	11,395	$	23,223	$	0	$	234,439
Nonperforming		54		108		138		85		26		36		0		447
Total consumer - Indirect loans	$	74,479	$	71,813	$	32,666	$	21,248	$	11,421	$	23,259	$	0	$	234,886
Consumer - Indirect: Current period gross write-offs	$	33	$	138	$	71	$	35	$	23	$	232	$	0	$	532
Consumer - Direct:
Payment Performance
Performing	$	3,552	$	3,812	$	2,203	$	1,352	$	974	$	11,431	$	366	$	23,690
Nonperforming		0		17		0		65		0		53		0		135
Total consumer - Direct loans	$	3,552	$	3,829	$	2,203	$	1,417	$	974	$	11,484	$	366	$	23,825
Consumer - Direct: Current period gross write-offs	$	11	$	38	$	22	$	51	$	9	$	100	$	0	$	231
Consumer - Other:
Payment Performance
Performing	$	0	$	0	$	60	$	103	$	82	$	278	$	8,636	$	9,159
Nonperforming		0		0		0		0		0		5		0		5
Total consumer - Other loans	$	0	$	0	$	60	$	103	$	82	$	283	$	8,636	$	9,164
Consumer - Other: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	20	$	149	$	169

The Company follows ASU 2016-13 to calculate the allowance for credit losses which requires projecting credit losses over the lifetime of the credits. The ACL is adjusted through the provision for credit losses and reduced by net charge offs of loans. Although the Company has a diversified loan portfolio, the credit risk in the loan portfolio is largely influenced by general economic conditions and trends of the counties and markets in which the debtors operate, and the resulting impact on the operations of borrowers or on the value of any underlying collateral.

The credit loss estimation process involves procedures that consider the unique characteristics of the Company’s loan portfolio segments. These segments are disaggregated into the loan pools for monitoring. A model of risk characteristics, such as loss history and delinquency experience, trends in past due and non-performing loans, as well as existing economic conditions and supportable forecasts are used to determine credit loss assumptions.

The Company uses two methodologies to analyze loan pools. The cohort method and the probability of default/loss given default (“PD/LGD”). Cohort relies on the creation of cohorts to capture loans that qualify for a particular segment, as of a point in time. Those loans are then tracked over their remaining lives to determine their loss experience. The Company aggregates financial assets on the basis of similar risk characteristics when evaluating loans on a collective basis. Those characteristics include, but are not limited to, internal or external credit score, risk ratings, financial asset, loan type, collateral type, size, effective interest rate, term, or geographical location. The Company uses cohort primarily for consumer loan portfolios.

The probability of default portion of PD/LGD is defined by the Company as 90 days past due, placed on non-accrual, loan restructuring for borrowers experiencing financial difficulty or is partially, or wholly, charged-off. Typically, a one-year time period is used to assess probability of default (“PD”). PD can be measured and applied using various risk criteria. Risk rating is one common way to apply PDs. Loss given default LGD is to determine the percentage of loss by facility or collateral type. LGD estimates can sometimes be driven, or influenced, by product type, industry or geography. The Company uses PD/LGD primarily for commercial loan portfolios.

The following table presents the loan pools and the associated methodology used during the calculation of the allowance for credit losses in 2024.

Portfolio Segments	Loan Pool	Methodology	Loss Drivers
Residential real estate	1-4 Family Residential Real Estate - 1st Liens	Cohort	Credit Loss History
	1-4 Family Residential Real Estate - 2nd Liens	Cohort	Credit Loss History
Home Equity Lines of Credit	Home Equity Lines of Credit	Cohort	Credit Loss History
Consumer Finance	Cash Reserves	Cohort	Credit Loss History
	Direct	Cohort	Credit Loss History
	Indirect	Cohort	Credit Loss History
Commercial	Commercial and Industrial	PD/LGD	Credit Loss History
	Agricultural	PD/LGD	Credit Loss History
	Municipal	PD/LGD	Credit Loss History
Commercial real estate	Owner Occupied	PD/LGD	Credit Loss History
	Non-Owner Occupied	PD/LGD	Credit Loss History
	Multifamily	PD/LGD	Credit Loss History
	Farmland	PD/LGD	Credit Loss History
	Construction	PD/LGD	Credit Loss History

According to the accounting standard, an entity may make an accounting policy election not to measure an allowance for credit losses for accrued interest receivable if the entity writes off the applicable accrued interest receivable balance in a timely manner. The Company has made the accounting policy election not to measure an allowance for credit losses for accrued interest receivables for all loan segments. Current policy dictates that a loan will be placed on nonaccrual status, with the current accrued interest receivable balance being written off, upon the loan being 90 days delinquent or when the loan is deemed to be collateral dependent and the collateral analysis shows insufficient collateral coverage based on a current assessment of the value of the collateral.

In addition, ASC Topic 326 requires the Company to establish a liability for anticipated credit losses for unfunded commitments. To accomplish this, the Company must first establish a loss expectation for extended (funded) commitments. This loss expectation, expressed as a ratio to the amortized cost basis, is then applied to the portion of unfunded commitments not considered unilaterally cancelable, and considered by the company’s management as likely to fund over the life of the instrument. At September 30, 2024, the Company had $681 million in unfunded commitments and set aside $1.58 million in anticipated credit losses. At December 31, 2023, the Company had $753 million in unfunded commitments and set aside $1.84 million in anticipated credit losses. The $72 million decrease in unfunded commitments and $261 thousand decrease in the reserve for anticipated credit losses is due to existing construction loan projects that are moving forward and advances are being made to the loan. This reserve is recorded in other liabilities as opposed to the ACL.

The determination of the ACL is complex and the Company makes decisions on the effects of factors that are inherently uncertain. Evaluations of the loan portfolio and individual credits require certain estimates, assumptions and judgments as to the facts and circumstances related to particular situations or credits. The ACL was $36.2 million at September 30, 2024 and $34.4 million at December 31, 2023. The increase of $1.8 million was due to an increase to the specific reserve related to a non-owner occupied commercial real estate relationship, updates to the Company's delay periods that impacted the loss ratios of certain loan pools under the Cohort methodology, increased Portfolio Composition and growth qualitative factors due to increasing loan balances. These factors were partially offset by the reduction of the specific reserve related to a loan settlement, reduction of the specific reserve related to a payoff of another individually evaluated relationship, and improved loss rates for certain loan pools under the PD/LGD methodology.

Purchased Loans

Under ASU Topic 326, when loans are purchased with evidence of more than significant deterioration of credit, they are accounted for as purchase credit deteriorated (“PCD”). PCD loans acquired in a transaction are marked to fair value and a mark on yield is recorded. In addition, an adjustment is made to the ACL for the expected loss on the acquisition date. These loans are assessed on a regular basis and subsequent adjustments to the ACL are recorded on the income statement. During 2024, the Company has not acquired any additional PCD loans. The outstanding balance at September 30, 2024 and related allowance on PCD loans is as follows:

	Loan Balance		ACL Balance
Commercial real estate
Owner Occupied	$	384	$	14
Non-owner Occupied		27,033		475
Farmland		5		0
Commercial
Commercial and industrial		1,690		115
Agricultural		117		7
Residential real estate
1-4 family residential		1,265		7
Home equity lines of credit		3		0
Total	$	30,497	$	618

XML

Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers:

All material revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. ASC 606 rules govern the disclosure of revenue tied to contracts. The following table presents the Company’s noninterest income by revenue stream and reportable segment, net of eliminations, for the three and nine months ended September 30, 2024 and 2023.

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Three Months Ended September 30, 2024
Service charges on deposit accounts	$	0	$	1,992	$	1,992
Debit card and EFT fees		0		1,993		1,993
Trust fees		2,544		0		2,544
Insurance agency commissions		0		1,416		1,416
Retirement plan consulting fees		677		0		677
Investment commissions		0		476		476
Other (outside the scope of ASC 606)		0		3,242		3,242
Total noninterest income	$	3,221	$	9,119	$	12,340

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Three Months Ended September 30, 2023
Service charges on deposit accounts	$	0	$	1,712	$	1,712
Debit card and EFT fees		0		1,763		1,763
Trust fees		2,327		0		2,327
Insurance agency commissions		0		1,116		1,116
Retirement plan consulting fees		650		0		650
Investment commissions		0		520		520
Other (outside the scope of ASC 606)		0		1,743		1,743
Total noninterest income	$	2,977	$	6,854	$	9,831

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Nine Months Ended September 30, 2024
Service charges on deposit accounts	$	0	$	5,421	$	5,421
Debit card and EFT fees		0		5,320		5,320
Trust fees		7,398		0		7,398
Insurance agency commissions		0		4,199		4,199
Retirement plan consulting fees		1,918		0		1,918
Investment commissions		0		1,386		1,386
Other (outside the scope of ASC 606)		0		4,660		4,660
Total noninterest income	$	9,316	$	20,986	$	30,302

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Nine Months Ended September 30, 2023
Service charges on deposit accounts	$	0	$	4,646	$	4,646
Debit card and EFT fees		0		5,362		5,362
Trust fees		6,665		0		6,665
Insurance agency commissions		0		3,904		3,904
Retirement plan consulting fees		1,837		0		1,837
Investment commissions		0		1,389		1,389
Other (outside the scope of ASC 606)		0		5,902		5,902
Total noninterest income	$	8,502	$	21,203	$	29,705

A description of the Company’s revenue streams under ASC 606 follows:

Service charges on deposit accounts – The Company earns fees from its deposit customers for transaction-based, account maintenance, and overdraft services. Management reviewed the deposit account agreements, and determined that the agreements can be terminated at any time by either the Bank or the account holder. Transaction fees, such as balance transfers, wires and overdraft charges are settled the day the performance obligation is satisfied. The Bank’s monthly service charges and maintenance fees are for services provided to the customer on a monthly basis and are considered a series of services that have the same pattern of transfer each month. The review of service charges assessed on deposit accounts included the amount of variable consideration that is a part of the monthly charges. It was found that the waiver of service charges due to insufficient funds and dormant account fees is immaterial and would not require a change in the accounting treatment for these fees under the revenue standards.

Debit Card Interchange Fees – Customers and the Bank have an account agreement and maintain deposit balances with the Bank. Customers use a bank issued debit card to purchase goods and services, and the Bank earns interchange fees on those transactions, typically a percentage of the sale amount of the transaction. The Bank records the amount due when it receives the settlement from the payment network. Payments from the payment network are received and recorded into income on a daily basis. There are no contingent debit card interchange fees recorded by the Company that could be subject to a clawback in future periods.

Trust fees – Services provided to Trust customers are a series of distinct services that have the same pattern of transfer each month. Fees for trust accounts are billed and drafted from trust accounts monthly. The Company records these fees on the income statement on a monthly basis. Fees are assessed based on the total investable assets of the customer’s trust account. A signed contract between the Company and the customer is maintained for all customer trust accounts with payment terms identified. It is probable that the fees will be collectible as funds being managed are accessible by the asset manager. Past history of trust fee income recorded by the Company indicates that it is highly unlikely that a significant reversal could occur. There are no contingent incentive fees recorded by the Company that could be subject to a clawback in future periods.

Insurance Agency Commissions – Insurance agency commissions are received from insurance carriers for the agency’s share of commissions from customer premium payments. These commissions are recorded into income when checks are received from the insurance carriers, and there is no contingent portion associated with these commission checks. There may be a short time-lag in recording revenue when cash is received instead of recording the revenue when the policy is signed by the customer, but the time lag is insignificant and does not impact the revenue recognition process.

Insurance also receives incentive checks from the insurance carriers for achieving specified levels of production with particular carriers. These amounts are recorded into income when a check is received, and there are no contingent amounts associated with these payments that may be clawed back by the carrier in the future. Similar to the monthly commissions explained in the preceding paragraph, there may be a short time-lag in recording incentive revenue on a cash basis as opposed to estimating the amount of incentive revenue expected to be earned, this does not materially impact the recognition of Insurance revenue. If there were any amounts that would need to be refunded for one specific Insurance customer, management believes the reversal would not be significant.

Other potential situations surrounding the recognition of Insurance revenue include estimating potential refunds due to the likely cancellation of a percentage of customers canceling their policies and recording revenue at the time of policy renewals.

Retirement Plan Consulting Fees – Revenue is recognized based on the level of work performed for the client. Any payments that are received for work to be performed in the future are recorded in a deferred revenue account, and recorded into income when the fees are earned.

Investment Commissions – Investment commissions are earned through the sales of non-deposit investment products to customers of the Company. The sales are conducted through a third-party broker-dealer. When the commissions are received and recorded into income on the Bank’s income statement, there is no contingent portion that may need to be refunded back to the broker dealer.

Other – Income items included in “Other” are Bank owned life insurance income, security gains, net gains on the sale of loans and other operating income. Any amounts within the scope of ASC 606 are deemed immaterial.

XML

Fair Value

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value

Fair Value:

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

There are three levels of inputs that may be used to measure fair values:

Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities;quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Investment Securities

The Company uses a third party service to estimate fair value on available for sale securities on a monthly basis. The Company’s service provider uses a leading evaluation pricing service for U.S. domestic fixed income securities and values securities using exit pricing requirements. The Company independently corroborates the fair value received through this pricing service by obtaining the pricing through a second source at the end of each quarter. The fair values for investment securities, which consist of equity securities that are recorded at fair value to comply with exit pricing, are determined by quoted market prices in active markets, if available (Level 1). The equity securities change in fair value is recorded in the income statement. For securities where quoted prices are not available, fair values are calculated based on quoted prices for similar assets in active markets, quoted prices for similar assets in markets that are not active or inputs other than quoted prices, which provide a reasonable basis for fair value determination. Such inputs may include interest rates and yield curves, prepayment speeds, credit risks and default rates. The inputs used are principally derived from observable market data (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). The fair values of Level 3 investment securities are determined by using unobservable inputs to measure fair value of assets for which there is little, if any, market activity at the measurement date, using reasonable inputs and assumptions based on the best information at the time, to the extent that inputs are available without undue cost and effort.

At September 30, 2024, the Company determined that no securities had a fair value less than amortized cost that was as a result of credit deterioration as outlined in ASU 2016-13.

Loans Held For Sale, at Fair Value

The fair value of loans held for sale is estimated based upon binding contracts or quotes from third party investors (Level 2).

Mortgage Banking Derivatives

The fair value of mortgage banking derivatives are calculated using derivative valuation models that utilize quoted prices for similar assets adjusted for the specific attributes of the commitments and other observable market data at the valuation date (Level 2).

Loan Servicing Rights

Loan servicing rights are evaluated for impairment based upon the fair value of the rights as compared to the carrying amount at the end of each quarter. If the carrying amount of an individual tranche exceeds the fair value then an impairment is recorded on that tranche so that the servicing asset is carried at fair value. The calculation of the fair value is performed by an independent third party and the model uses factors such as the interest rate, prepayment speeds and other default rate assumptions that market participants would use in estimating the future net servicing income that can be validated against available market data (Level 2).

Interest Rate Swaps

The Company periodically enters into interest rate swap agreements with its commercial customers who desire a fixed rate loan term that is longer than the Company is willing to extend. The Company enters into a reciprocal swap agreement with a third party that offsets the interest rate risk from the interest rate extended to the customer. The fair value of these interest rate swap derivative instruments is calculated by an independent third party and are based upon valuation models that use observable market data as of the measurement date (Level 2).

The Company also entered into a fair value hedge to mitigate the risk of further interest rate increases and the subsequent impact on the valuation of the company’s state and political subdivision municipal bond portfolio. The Company uses an independent third party to perform a market valuation analysis for this derivative (Level 2).

Collateral Dependent Loans

Fair value estimates of collateral dependent loans that are individually reviewed are based on the fair value of the collateral, less estimated costs to sell. Loans carried at fair value generally receive individual allocations of the allowance for credit losses in 2023 and 2024. For collateral dependent loans, fair value is commonly based on recent real estate appraisals or in quoted sales price in certain instances. Appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Adjustments to a quoted price are routinely made to factor in data that affect the marketability of the collateral. Such adjustments, in both instances, are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. These loans are evaluated on a quarterly basis and adjusted accordingly.

Other Real Estate Owned

Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair values are commonly based on recent real estate appraisals. These appraisals may use a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

Appraisals for both collateral-dependent loans and other real estate owned are performed by certified general appraisers (for commercial and commercial real estate properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the Appraisal Department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On an annual basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what adjustments should be made to appraisals to arrive at fair value.

Assets measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at September 30, 2024 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Investment securities available-for sale
U.S. Treasury and U.S. government sponsored entities	$	119,593	$	0	$	119,593	$	0
State and political subdivisions		527,722		0		527,722		0
Corporate bonds		18,436		0		17,018		1,418
Mortgage-backed securities-residential		513,213		0		513,213		0
Collateralized mortgage obligations		111,761		0		111,761		0
Small Business Administration		2,625		0		2,625		0
Total investment securities	$	1,293,350	$	0	$	1,291,932	$	1,418
Equity securities	$	261	$	261	$	0	$	0
Loans held for sale		2,852		0		2,852		0
Interest rate swaps		2,739		0		2,739		0
Interest rate lock commitments		96		0		96		0
Financial Liabilities
Interest rate swaps	$	2,739	$	0	$	2,739	$	0
Fair value hedge derivative		1,392		0		1,392		0
Mortgage banking derivative		14		0		14		0

			Fair Value Measurements at December 31, 2023 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Investment securities available-for sale
U.S. Treasury and U.S. government sponsored entities	$	127,955	$	0		127,955	$	0
State and political subdivisions		556,169		0		556,169		0
Corporate bonds		18,275		0		16,935		1,340
Mortgage-backed securities-residential		520,386		0		520,386		0
Collateralized mortgage obligations		73,999		0		73,999		0
Small Business Administration		2,917		0		2,917		0
Total investment securities	$	1,299,701	$	0	$	1,298,361	$	1,340
Equity securities	$	226	$	226	$	0	$	0
Loans held for sale		3,711		0		3,711		0
Interest rate swaps		4,191		0		4,191		0
Interest rate lock commitments		109		0		109		0
Financial Liabilities
Interest rate swaps	$	4,191	$	0	$	4,191	$	0
Fair value hedge derivative		836		0		836		0
Mortgage banking derivative		14		0		14		0

There were no significant transfers between Level 1 and Level 2 during the periods presented above.

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months ended September 30				Nine Months ended September 30
(In Thousands of Dollars)	2024		2023		2024		2023
Beginning Balance	$	1,397	$	1,224	$	1,340	$	1
Transfers between levels		0		0		0		0
Acquired and/or purchased		0		0		0		1,600
Discount accretion (premium amortization)		13		11		39		23
Repayments, calls and maturities		0		0		0		(401	)
Changes in unrealized gains (losses)		8		1		39		13
Ending Balance	$	1,418	$	1,236	$	1,418	$	1,236

Assets measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at September 30, 2024 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Individually evaluated loans
Commercial real estate
Non-owner occupied	$	6,944	$	0	$	0	$	6,944
1–4 family residential		1,517		0		0		1,517
Mortgage servicing rights		454		0		454		0

			Fair Value Measurements at December 31, 2023 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Individually evaluated loans
Commercial real estate
Non-owner occupied	$	838	$	0	$	0	$	838
Commercial and industrial		267		0		0		267
1–4 family residential		1,547		0		0		1,547
Mortgage servicing rights		210		0		210		0

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods ended September 30, 2024 and December 31, 2023:

September 30, 2024	Fair value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated loans
Commercial real estate	$	6,944	Income Approach	Adjustment for difference between cap rates of comparable sales	(56.03%) - 69.02% (40.71%)
Residential		1,517	Sales comparison	Adjustment for differences between comparable sales	(5.39%) - 2.11% (2.67%)

December 31, 2023	Fair value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated loans
Commercial real estate	$	838	Income approach	Adjustment for difference between cap rates of comparable sales	(49.65%) - 46.77% (16.63%)
Commercial		267	Quoted price for collateral	Offer Price	64.38%
Residential		1,547	Sales comparison	Adjustment for differences between comparable sales	(5.39%) - (2.11%) (2.67%)

The carrying amounts and estimated fair values of financial instruments not previously disclosed at September 30, 2024 and December 31, 2023 are as follows:

	Carrying		Fair Value Measurements at September 30, 2024 Using:
(In Thousands of Dollars)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	189,136	$	21,149	$	167,987	$	0	$	189,136
Regulatory stock		17,678	n/a		n/a		n/a		n/a
Loans, net		3,244,331		0		0		3,136,414		3,136,414
Financial liabilities
Deposits		4,361,837		3,518,405		841,386		0		4,359,791
Short-term borrowings		285,000		0		285,000		0		285,000
Long-term borrowings		86,038		0		76,389		0		76,389

	Carrying		Fair Value Measurements at December 31, 2023 Using:
(In Thousands of Dollars)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	103,658	$	28,896	$	74,762	$	0	$	103,658
Regulatory stock		20,197	n/a		n/a		n/a		n/a
Loans, net		3,163,687		0		0		3,015,732		3,015,732
Financial liabilities
Deposits		4,177,386		3,452,104		719,497		0		4,171,601
Short-term borrowings		355,000		0		355,000		0		355,000
Long-term borrowings		88,663		0		70,893		0		70,893

XML

Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets:

Goodwill associated with the Company’s purchases of Emlenton in January 2023 and other past acquisitions totaled $167.4 million at September 30, 2024 and December 31, 2023. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value, which is determined through an impairment test. Management performs goodwill impairment testing on an annual basis as of September 30, or whenever events or changes in circumstances indicate that the fair value of a reporting unit may be below its carrying value. As of September 30, 2024, no events or changes in circumstances indicated that the fair value of the reporting unit was below its carrying value. The Company will continue to monitor its goodwill for possible impairment.

Acquired Intangible Assets

Acquired intangible assets were as follows:

	September 30, 2024					December 31, 2023
(In Thousands of Dollars)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer relationship intangibles	$	7,210	$	(7,055	)	$	7,210	$	(6,953	)
Non-compete contracts		457		(423	)		457		(413	)
Trade name		1,126		(461	)		1,126		(440	)
Core deposit intangible		32,115		(12,075	)		32,115		(10,260	)
Total	$	40,908	$	(20,014	)	$	40,908	$	(18,066	)

Aggregate amortization expense was $629 thousand and $1.9 million for the three and nine month periods ended September 30, 2024. Amortization expense was $725 thousand and $2.9 million for the three and nine month periods ended September 30, 2023.

Estimated amortization expense for each of the next five periods and thereafter:

2024 (3 months)	$	629
2025		2,451
2026		2,355
2027		2,242
2028		2,231
Thereafter		10,986
Total	$	20,894

XML

Leases

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Leases

Leases:

The Company has operating leases for branch office locations, vehicles, land and certain office equipment such as printers and copiers. The leases have remaining lease terms of up to 16.8 years, some of which had options to extend the lease for up to 15 years, while the Fairlawn lending building and NAI building leases have the options to terminate in March of 2025.

The right of use assets and lease liabilities were $9.0 million and $9.2 million as of September 30, 2024, respectively, and $8.8 million and $9.0 million at December 31, 2023, respectively. The right of use assets are included in other assets while the lease liabilities are included in other liabilities on the balance sheet.

Lease expense for the three and nine month periods ended September 30, 2024, was $327 thousand and $985 thousand, respectively. Lease expense for the three and nine month periods ended September 30, 2023, was $103 thousand and $820 thousand, respectively. The weighted-average remaining lease term for all leases was 10.13 years as of September 30, 2024. The weighted-average discount rate was 3.16% for all leases as of September 30, 2024.

On January 1, 2023, the Company performed a valuation of Emlenton's leases to determine an initial right of use asset (“ROU asset”) and lease liability in connection with the Merger. The Company recorded an initial ROU asset and lease liability of $1.3 million for these leases.

Maturities of lease liabilities are as follows as of September 30, 2024:

2024 (3 months)	$	334
2025		1,282
2026		1,166
2027		1,083
2028		1,097
Thereafter		5,984
Total Payments		10,946
Less: lease liability expense		(1,709	)
Total	$	9,237

XML

Derivative Financial Instruments

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments:

Interest Rate Swaps

The Company maintains an interest rate protection program for commercial loan customers. Under this program, the Company provides a variable rate loan while creating a fixed rate loan for the customer by the customer entering into an interest rate swap with terms that match the loan. The Company offsets its risk exposure by entering into an offsetting interest rate swap with an unaffiliated institution. The Company had interest rate swaps associated with commercial loans with a notional value of $70.2 million and fair value of $2.7 million in other assets and $2.7 million in other liabilities at September 30, 2024. At December 31, 2023, the Company had interest rate swaps associated with commercial loans with a notional value of $63.9 million and fair value of $4.2 million in other assets and $4.2 million in other liabilities. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC 815. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC 820.

There were no net gains or losses for interest rate swaps for the either the three or the nine month periods ended September 30, 2024 and 2023.

Interest Rate Swap Designated as a Fair Value Hedge

The Company has one interest rate swap with a notional amount of $100.0 million that was in place at both September 30, 2024 and December 31, 2023. This swap is designated as a fair value hedge to mitigate the risk of further interest rate increases and the subsequent impact on the valuation of the company’s state and political subdivision municipal bond portfolio. The gross aggregate fair value of the swap at September 30, 2024 was $(1.4) million and was recorded as a $(1.5) million mark to market adjustment in other assets and $152 thousand was recorded to other assets for the accrued interest receivable. At December 31, 2023, the gross aggregate fair value of the swap was $(836) thousand and was recorded as a $(1.3) million mark to market adjustment in other liabilities, and $425 thousand was recorded to other assets for the accrued interest receivable. The Company expects the hedge to remain in effect for the remaining term of the swap, which matures August 2026. A summary of the interest rate swap designated as a fair value hedge is presented below:

	September 30, 2024			December 31, 2023
Notional amount fair value hedge	$	100,000		$	100,000
Fixed pay rates		4.35	%		4.35	%
Variable SOFR receive rates		4.96	%		5.38	%
Remaining maturity (in years)		1.8			2.6
Fair value	$	(1,392	)	$	(836	)

Mortgage Banking Derivatives

Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third-party investors are considered derivatives. The Company enters into forward commitments for the future delivery of residential mortgage loans when the interest rate locks are committed in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships.

The net gains (losses) relating to non-designated derivative instruments used for risk management are included in Net Gains on Sale of Loans on the Consolidated Statements of Income and are summarized below for the quarters ended September 30, 2024 and September 30, 2023:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
Forward sales contracts	$	(18	)	$	22		$	0		$	6
Interest rate lock commitments		43			(76	)		(12	)		(19	)

The following table reflects the amount and fair value of mortgage banking derivatives included in the Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023:

	September 30, 2024					December 31, 2023
	Notional		Fair			Notional		Fair
	Amount		Value			Amount		Value
Included in other assets:
Forward sales contracts	$	361	$	2		$	0	$	0
Interest rate lock commitments		9,454		96			7,400		109
Mortgage banking derivative		0		0			0		0
Total included in other assets	$	9,815	$	98		$	7,400	$	109
Included in other liabilities:
Mortgage banking derivative	$	9,500	$	(14	)	$	3,300	$	(14	)

XML

Earnings Per Share

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share:

The computation of basic and diluted earnings per share is shown in the following table:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Basic EPS
Net income (In thousands of dollars)	$	8,535	$	13,314	$	31,558	$	35,356
Weighted average shares outstanding		37,352,872		37,241,383		37,319,035		37,430,782
Basic earnings per share	$	0.23	$	0.36	$	0.85	$	0.94
Diluted EPS
Net income (In thousands of dollars)	$	8,535	$	13,314	$	31,558	$	35,356
Weighted average shares outstanding for basic earnings per share		37,352,872		37,241,383		37,319,035		37,430,782
Dilutive effect of restricted stock awards		214,083		137,971		175,503		102,427
Weighted average shares for diluted earnings per share		37,566,955		37,379,354		37,494,538		37,533,209
Diluted earnings per share	$	0.23	$	0.36	$	0.84	$	0.94

There were no restricted stock awards that were considered anti-dilutive for the three month period ended September 30, 2024 and 167,178 restricted stock awards that were considered anti-dilutive for the nine month period ended September 30, 2024. There were 13,046 and 204,105 restricted stock awards that were considered anti-dilutive for the three and nine month periods ended September 30, 2023, respectively.

XML

Stock Based Compensation

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Stock Based Compensation

Stock Based Compensation:

In April of 2022, the Company, with the approval of shareholders, created the 2022 Equity Incentive Plan (the “2022 Plan”). The 2022 Plan permits the award of up to one million shares to the Company’s directors and employees to attract and retain exceptional personnel, motivate performance and, most importantly, to help align the interests of the Company’s executives with those of the Company’s shareholders. The 2022 Plan replaced the 2017 Plan. There were 71,925 service time based share awards and 99,253 performance based share awards granted under the 2022 Plan during the nine month period ended September 30, 2024, as shown in the table below. The actual number of performance based shares issued will depend on the relative performance of the Company’s average return on

equity compared to a group of peer companies over a three year vesting period, ending December 31, 2026. As of September 30, 2024, 563,681 shares are still available to be awarded from the 2022 Plan. The 2017 Plan has been sunset.

The restricted stock awards were granted with a fair value price equal to the market price of the Company’s common stock at the date of the grant. Expense recognized was $668 thousand and $2.0 million for the three and nine month periods ended September 30, 2024, respectively. During prior periods, the expense recognized was $744 thousand and $2.0 million for the three and nine month periods ended September 30, 2023, respectively. As of September 30, 2024, there was $3.0 million of total unrecognized compensation expense related to the nonvested shares granted under the Plan. The remaining cost is expected to be recognized over 2.4 years.

The following is the activity under the Plans during the nine month period ended September 30, 2024.

	Maximum Awarded Service Units			Weighted Average Grant Date Fair Value		Maximum Awarded Performance Units			Weighted Average Grant Date Fair Value
Beginning balance - non-vested shares		253,776		$	14.97		209,484		$	15.01
Granted		71,925			12.97		99,253			13.81
Vested		(91,256	)		12.76		(66,192	)		13.79
Forfeited		(13,667	)		16.35		(19,625	)		15.05
Ending balance - non-vested shares		220,778		$	14.30		222,920		$	14.57

The following is the activity under the Plans during the nine month period ended September 30, 2023.

	Maximum Awarded Service Units			Weighted Average Grant Date Fair Value		Maximum Awarded Performance Units			Weighted Average Grant Date Fair Value
Beginning balance - non-vested shares		193,015		$	16.69		137,369		$	15.85
Granted		87,391			12.88		102,750			14.16
Vested		(30,990	)		12.92		(30,635	)		14.35
Forfeited		(1,541	)		17.64		0			0.00
Ending balance - non-vested shares		247,875		$	15.40		209,484		$	15.01

The 157,448 shares that vested during the nine month period ended September 30, 2024 had a weighted average fair value of $13.19 per share.

XML

Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2024

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Other Comprehensive Income (Loss)

Other Comprehensive Income (Loss):

The following tables represent the changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and nine month periods ended September 30, 2024 and 2023.

(In Thousands of Dollars)	Net unrealized holding (losses) gains on available for sale securities			Reclassification adjustment for (gains) losses realized in income on fair value hedge			Change in funded status of post-retirement plan			Total
Balance December 31, 2023	$	(171,539	)	$	(1,013	)	$	(2	)	$	(172,554	)
Other comprehensive (loss) before reclassification		(15,149	)		0			0			(15,149	)
Amounts reclassified from accumulated other comprehensive income		1,686			1,063			0			2,749
Net current period other comprehensive (loss) income		(13,463	)		1,063			0			(12,400	)
Balance March 31, 2024	$	(185,002	)	$	50		$	(2	)	$	(184,954	)
Other comprehensive (loss) before reclassification		(6,545	)		0			0			(6,545	)
Amounts reclassified from accumulated other comprehensive income		99			167			0			266
Net current period other comprehensive (loss) income		(6,446	)		167			0			(6,279	)
Balance June 30, 2024	$	(191,448	)	$	217		$	(2	)	$	(191,233	)
Other comprehensive income before reclassification		41,452			0			0			41,452
Amounts reclassified from accumulated other comprehensive income		333			(1,503	)		0			(1,170	)
Net current period other comprehensive income (loss)		41,785			(1,503	)		0			40,282
Balance September 30, 2024	$	(149,663	)	$	(1,286	)	$	(2	)	$	(150,951	)
Balance December 31, 2022	$	(210,489	)	$	0		$	(1	)	$	(210,490	)
Other comprehensive income before reclassification		33,891			0			0			33,891
Amounts reclassified from accumulated other comprehensive (loss)		(95	)		0			0			(95	)
Net current period other comprehensive income		33,796			0			0			33,796
Balance March 31, 2023	$	(176,693	)	$	0		$	(1	)	$	(176,694	)
Other comprehensive (loss) before reclassification		(16,834	)		0			0			(16,834	)
Amounts reclassified from accumulated other comprehensive income		0			0			0			0
Net current period other comprehensive (loss)		(16,834	)		0			0			(16,834	)
Balance June 30, 2023	$	(193,527	)	$	0		$	(1	)	$	(193,528	)
Other comprehensive (loss) before reclassification		(59,786	)		0			0			(59,786	)
Amounts reclassified from accumulated other comprehensive income		488			613			0			1,101
Net current period other comprehensive (loss) income		(59,298	)		613			0			(58,685	)
Balance September 30, 2023	$	(252,825	)	$	613		$	(1	)	$	(252,213	)

Amounts reclassified out of each component of accumulated other comprehensive income (loss) were not material for the three and nine month periods ended September 30, 2024 and 2023.

XML

Regulatory Capital Matters

9 Months Ended

Sep. 30, 2024

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Regulatory Capital Matters

Regulatory Capital Matters:

Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action by regulators that, if undertaken, could have a direct material effect on the financial statements. Management believes that as of September 30, 2024, the Company and the Bank meet all capital adequacy requirements to which they are subject.

The FDIC and other federal banking regulators revised the risk-based capital requirements applicable to financial holding companies and insured depository institutions, including the Company and the Bank, to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision (“Basel III”).

The common equity tier 1 capital, tier 1 capital and total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. The leverage ratio is calculated by dividing tier 1 capital by adjusted average total assets.

Basel III limits capital distributions and certain discretionary bonus payments if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of common equity tier 1 capital, tier 1 capital and total capital to risk-weighted assets in addition to the amount necessary to meet minimum risk-based capital requirements. Excluding the additional buffer, Basel III requires the Company and the Bank to maintain (i) a minimum ratio of common equity tier 1 capital to risk-weighted assets of at least 4.5%, (ii) a minimum ratio of tier 1 capital to risk-weighted assets of at least 6.0%, (iii) a minimum ratio of total capital to risk-weighted assets of at least 8.0% and (iv) a minimum leverage ratio of at least 4.0%.

Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If only adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At September 30, 2024 and December 31, 2023, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category.

Actual and required capital amounts and ratios, which do not include the capital conservation buffer, are presented below at September 30, 2024 and December 31, 2023:

	Actual					Requirement For Capital Adequacy Purposes:					To be Well Capitalized Under Prompt Corrective Action Provisions:
	Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2024
Common equity tier 1 capital ratio
Consolidated	$	406,169		10.91	%	$	167,578		4.5	%	N/A		N/A
Bank		426,179		11.46	%		167,368		4.5	%		241,753		6.5	%
Total risk based capital ratio
Consolidated		533,935		14.34	%		297,916		8.0	%	N/A		N/A
Bank		463,945		12.47	%		297,543		8.0	%		371,928		10.0	%
Tier 1 risk based capital ratio
Consolidated		424,169		11.39	%		223,437		6.0	%	N/A		N/A
Bank		426,179		11.46	%		223,157		6.0	%		297,543		8.0	%
Tier 1 leverage ratio
Consolidated		424,169		8.20	%		206,949		4.0	%	N/A		N/A
Bank		426,179		8.26	%		206,383		4.0	%		257,978		5.0	%
December 31, 2023
Common equity tier 1 capital ratio
Consolidated	$	392,244		10.61	%	$	166,303		4.5	%	N/A		N/A
Bank		411,304		11.15	%		165,996		4.5	%	$	239,772		6.5	%
Total risk based capital ratio
Consolidated		519,684		14.06	%		295,650		8.0	%	N/A		N/A
Bank		447,584		12.13	%		295,104		8.0	%		368,881		10.0	%
Tier 1 risk based capital ratio
Consolidated		410,244		11.10	%		221,737		6.0	%	N/A		N/A
Bank		411,304		11.15	%		221,328		6.0	%		295,104		8.0	%
Tier 1 leverage ratio
Consolidated		410,244		8.02	%		204,598		4.0	%	N/A		N/A
Bank		411,304		8.07	%		203,989		4.0	%		254,986		5.0	%

XML

Segment Information

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information:

The reportable segments are determined by the products and services offered, primarily distinguished between banking and trust. These segments are also distinguished by the level of information provided to the chief operating decision makers in the Company, who use such information to review performance of various components of the business, which are then aggregated. Loans, investments, and deposits provide the revenues in the banking operation. All operations are domestic. Significant segment totals are reconciled to the financial statements as follows:

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
September 30, 2024
Goodwill and other intangibles	$	5,643	$	186,960	$	(4,263	)	$	188,340
Total assets	$	15,640	$	5,223,757	$	(2,894	)	$	5,236,503

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
December 31, 2023
Goodwill and other intangibles	$	5,680	$	188,871	$	(4,263	)	$	190,288
Total assets	$	15,845	$	5,065,150	$	(2,645	)	$	5,078,350

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Three Months Ended September 30, 2024
Net interest income	$	45	$	32,854	$	(1,023	)	$	31,876
Provision for credit losses and unfunded loans		0		7,008		0			7,008
Service fees, security gains and other noninterest income		3,311		8,876		153			12,340
Noninterest expense		1,786		23,417		371			25,574
Amortization and depreciation expense		14		1,340		147			1,501
Income before taxes		1,556		9,965		(1,388	)		10,133
Income taxes		328		1,561		(291	)		1,598
Net income	$	1,228	$	8,404	$	(1,097	)	$	8,535

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Nine Months Ended September 30, 2024
Net interest income	$	159	$	98,568	$	(3,098	)	$	95,629
Provision for credit losses and unfunded loans		0		7,671		0			7,671
Service fees, security gains and other noninterest income		9,503		21,224		(425	)		30,302
Noninterest expense		5,515		68,996		1,402			75,913
Amortization and depreciation expense		52		4,177		375			4,604
Income before taxes		4,095		38,948		(5,300	)		37,743
Income taxes		862		6,437		(1,114	)		6,185
Net income	$	3,233	$	32,511	$	(4,186	)	$	31,558

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Three Months Ended September 30, 2023
Net interest income	$	81	$	34,679	$	(992	)	$	33,768
Provision for credit losses and unfunded loans		0		243		0			243
Service fees, security gains and other noninterest income		2,994		6,847		(10	)		9,831
Noninterest expense		1,679		23,873		484			26,036
Amortization and depreciation expense		22		1,544		114			1,680
Income before taxes		1,374		15,866		(1,600	)		15,640
Income taxes		289		2,416		(379	)		2,326
Net income	$	1,085	$	13,450	$	(1,221	)	$	13,314

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Nine Months Ended September 30, 2023
Net interest income	$	195	$	107,663	$	(2,902	)	$	104,956
Provision for credit losses and unfunded loans		0		8,867		0			8,867
Service fees, security gains and other noninterest income		8,562		21,770		(627	)		29,705
Noninterest expense		4,976		72,464		1,604			79,044
Amortization and depreciation expense		68		5,372		340			5,780
Income before taxes		3,713		42,730		(5,473	)		40,970
Income taxes		781		6,122		(1,289	)		5,614
Net income	$	2,932	$	36,608	$	(4,184	)	$	35,356

The Bank segment includes Farmers National Insurance and Farmers of Canfield Investment Co.

XML

Short-term Borrowings

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Short-term Borrowings

Short-term borrowings:

At September 30, 2024, the Bank did not have any short-term advances from the Federal Home Loan Bank (“FHLB”). At December 31, 2023, the Bank had $70.0 million of short-term advances from the FHLB, which were at an interest rate of 5.41%. This short-term borrowing was borrowed using the FHLB's overnight repurchase advance program, as this product allows the most flexibility to meet the Bank's varying liquidity needs. These FHLB advances were secured by pledged assets which are described in the following Long-Term Borrowings footnote.

In addition, the Bank had $285.0 million in short-term borrowings at both September 30, 2024 and December 31, 2023. The current borrowing matures in January 2025 and has a fixed interest rate of 4.76%. These borrowings are secured by securities with a par value of $288.0 million.

The Bank has access to a line of credit for $25.0 million at a major domestic bank that is below prime rate. The line and terms are periodically reviewed by the lending bank and is generally subject to withdrawal at their discretion. There were no outstanding borrowings under this line at September 30, 2024, or December 31, 2023.

Farmers has one unsecured revolving line of credit for $5.0 million. This line can be renewed annually and has an interest rate of prime with a floor of 3.5%. There was no outstanding balance on this line at either September 30, 2024, or December 31, 2023.

XML

Long-Term Borrowings

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Long-term Borrowings

Long-term borrowings:

There were no long-term advances from the FHLB at September 30, 2024, or at December 31, 2023.

Long-term and short-term FHLB advances are secured by a blanket pledge of residential mortgage, commercial real estate, and multi-family loans totaling $1.7 billion at September 30, 2024 and $1.6 billion at December 31, 2023. Based on this collateral, the Bank is eligible to borrow an additional $695.8 million at September 30, 2024.

In November 2021, the Company completed the issuance of $75.0 million aggregate principal amount, fixed-to-floating rate subordinated notes due December 15, 2031, in a private offering exempt from the registration requirements under the Securities Act of 1933, as amended. The notes carry a fixed rate of 3.125% for five years at which time they will convert to a floating rate based on the three-month term secured overnight funding rate, plus a spread of 220 basis points. The net proceeds from the sale were approximately $73.8 million, after deducting the offering expenses. The Company’s intent was to use the proceeds from the sale for general corporate purposes, which may include, without limitation, providing capital to support its growth organically or through acquisitions, in financing investments, capital expenditures, repurchasing its common shares and for investments in the Bank as regulatory capital. The subordinated debentures are included in Total Capital under current regulatory guidelines and interpretations.

In August 2024, the Company bought back and retired $3 million of the outstanding subordinated notes. The Company may, at its option, beginning December 15, 2026, redeem additional portions of the notes, in whole or in part, from time to time, subject to certain conditions.

On November 1, 2021, the Company completed its acquisition of Cortland, which included the assumption of Floating Rate Junior Subordinated Debt Securities due in September 15, 2037 (the “junior subordinated debt securities”) at an acquisition-date fair value of $4.3 million, held in a wholly-owned statutory trust whose common securities were wholly-owned by Cortland. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The securities bear interest at a rate of 1.45% over the 3-month term SOFR rate that includes an additional spread adjustment of 26 basis points. The rate at September 30, 2024 was 6.66% and at December 31, 2023 the rate was 7.10%.

On January 7, 2020, the Company completed its acquisition of Maple Leaf, which included the assumption of Floating Rate Junior Subordinated Debt Securities due December 15, 2036 (the “junior subordinated debt securities”) held in a wholly-owned statutory trust whose common securities were wholly-owned by Maple Leaf. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The

securities bear interest at a rate of 1.70% over the 3-month term SOFR rate that includes an additional spread adjustment of 26 basis points. The rate at September 30, 2024 was 7.01% and at December 31, 2023 the rate was 7.45%.

In 2015, the Company completed its acquisition of National Bancshares Corporation, which included the assumption of Floating Rate Junior Subordinated Debt Securities due June 15, 2035 (the “junior subordinated debt securities”) held in a wholly-owned statutory trust, TSEO Statutory Trust I. The sole assets of the statutory trust are the junior subordinated debt securities and related payments. The junior subordinated debt securities and the back-up obligations, in the aggregate, constitute a full and unconditional guarantee of the obligations of the statutory trust under the capital securities held by third-party investors. The securities bear interest at a rate of 1.80% over the 3-month term SOFR rate that includes an additional spread adjustment of 26 basis points. The rate at September 30, 2024 was 6.91% and at December 31, 2023 the rate was 7.35%.

In all three instances, the Company may redeem the junior subordinated debentures at any quarter-end, in whole, or in part, at par. This type of subordinated debenture qualifies as Tier 1 capital for regulatory purposes in determining and evaluating the Company’s capital adequacy.

A summary of all junior subordinated debentures issued by the Company to affiliates and subordinated debentures follows. For the junior subordinated debentures, these amounts represent the par value of the obligations owed to these affiliates, including the Company’s equity interest in the trusts along with any unamortized fair value marks. For the subordinated debentures, these amounts represent the par value less the remaining deferred offering expense associated with the issuance of the debentures. Balances were as follows at September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
	Amount		Amount
TSEO Statutory Trust I	$	2,558	$	2,521
Maple Leaf Financial Statutory Trust II		7,908		7,740
Cortland Statutory Trust I		4,423		4,382
Total junior subordinated debentures owed to unconsolidated subsidiary trusts	$	14,889	$	14,643
Subordinated Debentures	$	71,149	$	74,020
Total long-term borrowings	$	86,038	$	88,663

XML

Qualified affordable housing project investments

9 Months Ended

Sep. 30, 2024

Investment Program, Proportional Amortization Method, Elected [Line Items]

Qualified Affordable Housing Project Investments

Qualified affordable housing project investments:

The Company invests in qualified affordable housing projects. At September 30, 2024 and December 31, 2023, the balance of the investment for qualified affordable housing projects was $22.6 million and $17.9 million, respectively. Total unfunded commitments related to the investments in qualified affordable housing projects totaled $15.1 million and $12.3 million at September 30, 2024 and December 31, 2023. The Company expects to complete the fulfillment of these commitments during the year ending 2038.

In the third quarters ended September 30, 2024 and September 30, 2023, the Company recognized amortization expense of $513 thousand and $426 thousand, respectively, which was included within income tax expense on the consolidated statements of income. In both of the nine month periods ended September 30, 2024 and September 30, 2023, the Company recognized amortization expense of $1.3 million, which was included within income tax expense on the consolidated statements of income.

Additionally, during the third quarters ended September 30, 2024 and September 30, 2023, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $602 thousand and $558 thousand, respectively. For both of the nine month periods ended September 30, 2024 and September 30, 2023, the Company recognized tax credits and other benefits from its investment in affordable housing tax credits of $1.6 million.

During the nine month periods ended September 30, 2024 and September 30, 2023, the Company did not incur any impairment losses related to its investment in affordable housing tax credits.

XML

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation:

Farmers National Banc Corp. (“Company” or “Farmers”) is a Financial Holding Company registered under the Bank Holding Company Act of 1956, as amended. The Company provides full banking services through its nationally chartered subsidiary, The Farmers National Bank of Canfield (“Bank”). The consolidated financial statements also include the accounts of the Bank’s subsidiaries; Farmers National Insurance, LLC (“Insurance”) and Farmers of Canfield Investment Co. (“Investments”). The Company provides trust and retirement consulting services through its subsidiary, Farmers Trust Company (“Trust”), and insurance services through the Bank’s subsidiary, Insurance. Farmers National Captive, Inc. (“Captive”) was a wholly-owned insurance subsidiary of the Company that provided property and casualty insurance coverage to the Company and its subsidiaries until November 2023 when the Company dissolved the entity. Captive pooled resources with eleven similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves and to provide insurance where not available or economically feasible. The consolidated financial statements include the accounts of the Company, the Bank and its subsidiaries, along with the Trust and Captive. All significant intercompany balances and transactions have been eliminated in the consolidation.

Basis of Presentation

Basis of Presentation:

The unaudited consolidated condensed financial statements have been prepared in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report to Shareholders included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (“2023 Form 10-K”). The interim consolidated financial statements include all adjustments (consisting of only normal recurring items) that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of operations for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year. Certain items included in the prior period financial statements were reclassified to conform to the current period presentation. There was no effect on net income or total stockholders’ equity.

Estimates

Estimates:

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Segments

Segments:

The Company provides a broad range of financial services to individuals and companies in northeastern Ohio and western Pennsylvania. Operations are managed and financial performance is primarily aggregated and reported in two lines of business, the Bank segment and the Trust segment.

Equity

Equity:

There are 50,000,000 shares authorized and available for issuance as of September 30, 2024. Outstanding shares at September 30, 2024 were 37,573,650.

Comprehensive Income

Comprehensive Income:

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) consists of unrealized gains and losses on securities available for sale and changes in the funded status of the post-retirement plan, which are recognized as components of stockholders’ equity, net of tax effect.

New Accounting Standard

New Accounting Standard:

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures. The amendments in this update related to the rate reconciliation and income taxes paid disclosures improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The amendments of this update are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures. The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The main new provision requires significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. The amendments of this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

On March 12, 2020, the FASB issued ASU 2020-04 and amended by ASU 2021-01, Facilitation of the Effects of Reference Rate Reform on Financial Reporting, to ease the burden of accounting for contract modifications related to reference rate reform. The amendments in ASU 2020-04 create a new Topic in the Codification, ASC 848, Reference Rate Reform, which contains guidance that is designed to simplify how entities account for contracts that are modified to replace LIBOR or other benchmark interest rates with new rates. The amendments in ASU 2020-04 gave entities the option to apply expedients and exceptions to contract modifications that are made until December 31, 2022, if certain criteria are met. If adopted, these amendments and exceptions should be applied to all eligible modifications to contracts that are accounted for under an ASC Topic or industry Subtopic. The guidance in ASC 848 does not apply to any contract modifications that were made after December 31, 2022. In December 2022, the FASB issued ASU 2022-06 that defers the sunset date from December 31, 2022 to December 31, 2024. The adoption of this standard is not expected to have a material effect on the Company’s operating results or financial condition.

XML

Business Combinations (Tables)

9 Months Ended

Sep. 30, 2024

Emclaire Financial Corp

Summary of Consideration Paid and Amounts of Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid for Emclaire and the amounts of the assets acquired and liabilities assumed on the closing date of the acquisition.

(In Thousands of Dollars)
Consideration
Cash	$	33,440
Stock		59,202
Fair value of total consideration transferred	$	92,642
Fair value of assets acquired
Cash and cash equivalents	$	20,265
Securities available for sale		126,970
Other investments		7,795
Loans, net		740,659
Premises and equipment		14,808
Bank owned life insurance		22,485
Core deposit intangible		19,249
Current and deferred taxes		17,708
Other assets		7,682
Total assets acquired		977,621
Fair value of liabilities assumed
Deposits		875,813
Short-term borrowings		75,000
Accrued interest payable and other liabilities		7,104
Total liabilities		957,917
Net assets acquired	$	19,704
Goodwill created		72,938
Total net assets acquired	$	92,642

XML

Securities (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

Summary of the Amortized Cost and Fair Value of Available-for-Sale Investment Securities Corresponding Amounts of Unrealized Gains and Losses

The following table summarizes the amortized cost and fair value of the available-for-sale securities portfolio at September 30, 2024 and December 31, 2023, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss). No allowance for credit losses have been recognized for the securities portfolio at September 30, 2024 or December 31, 2023.

			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
September 30, 2024
U.S. Treasury and U.S. government sponsored entities	$	132,478	$	119	$	(13,004	)	$	119,593
State and political subdivisions		611,001		4,159		(87,438	)		527,722
Corporate bonds		18,494		313		(371	)		18,436
Mortgage-backed securities		601,239		491		(88,517	)		513,213
Collateralized mortgage obligations		116,764		482		(5,485	)		111,761
Small Business Administration		2,822		0		(197	)		2,625
Totals	$	1,482,798	$	5,564	$	(195,012	)	$	1,293,350

			Gross		Gross
	Amortized		Unrealized		Unrealized
(In Thousands of Dollars)	Cost		Gains		Losses			Fair Value
December 31, 2023
U.S. Treasury and U.S. government sponsored entities	$	145,439	$	113	$	(17,597	)	$	127,955
State and political subdivisions		644,880		4,792		(93,503	)		556,169
Corporate bonds		18,554		187		(466	)		18,275
Mortgage-backed securities		624,529		1		(104,144	)		520,386
Collateralized mortgage obligations		80,227		331		(6,559	)		73,999
Small Business Administration		3,212		0		(295	)		2,917
Totals	$	1,516,841	$	5,424	$	(222,564	)	$	1,299,701

Proceeds from Sales of Available-for-Sale Securities and the Associated Gains and Losses

The proceeds from sales of available-for-sale securities and the associated gains and losses are as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
Proceeds	$	4,109		$	15,388		$	48,865		$	85,306
Gross gains		0			0			17			441
Gross losses		(421	)		(618	)		(2,697	)		(939	)

Amortized Cost and Fair Value of the Debt Securities Maturity

The amortized cost and fair value of the debt securities portfolio are shown in the table below by expected maturity. Expected maturities may differ from contractual maturities if issuers have the right to call or prepay obligations with or without call, or prepayment penalties. Securities not due at a single maturity date are shown separately.

	September 30, 2024
(In Thousands of Dollars)	Amortized Cost		Fair Value
Maturity
Within one year	$	3,154	$	3,188
One to five years		66,494		60,894
Five to ten years		162,857		152,018
Beyond ten years		529,468		449,651
Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities		720,825		627,599
Total	$	1,482,798	$	1,293,350

Available for Sale Investment Securities with Unrealized Losses

The following table summarizes the investment securities with unrealized losses for which an allowance for credit losses has not been recorded at September 30, 2024 and December 31, 2023, aggregated by major security type and length of time in a continuous unrealized loss position.

	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands of Dollars)	Value		Loss			Value		Loss			Value		Loss
September 30, 2024
U.S. Treasury and U.S. government sponsored entities	$	2,758	$	(252	)	$	114,823	$	(12,752	)	$	117,581	$	(13,004	)
State and political subdivisions		32,039		(2,730	)		418,686		(84,708	)		450,725		(87,438	)
Corporate bonds		2,392		(34	)		8,857		(337	)		11,249		(371	)
Mortgage-backed securities		0		0			497,592		(88,517	)		497,592		(88,517	)
Collateralized mortgage obligations		20,871		(315	)		49,258		(5,170	)		70,129		(5,485	)
Small Business Administration		0		0			2,625		(197	)		2,625		(197	)
Total	$	58,060	$	(3,331	)	$	1,091,841	$	(191,681	)	$	1,149,901	$	(195,012	)

	Less than 12 Months					12 Months or Longer					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(In Thousands of Dollars)	Value		Loss			Value		Loss			Value		Loss
December 31, 2023
U.S. Treasury and U.S. government sponsored entities	$	399	$	(1	)	$	122,361	$	(17,596	)	$	122,760	$	(17,597	)
State and political subdivisions		15,852		(1,684	)		428,416		(91,819	)		444,268		(93,503	)
Corporate bonds		8,463		(284	)		3,881		(182	)		12,344		(466	)
Mortgage-backed securities		5,113		(76	)		515,259		(104,068	)		520,372		(104,144	)
Collateralized mortgage obligations		20,019		(980	)		43,808		(5,579	)		63,827		(6,559	)
Small Business Administration		0		0			2,917		(295	)		2,917		(295	)
Total	$	49,846	$	(3,025	)	$	1,116,642	$	(219,539	)	$	1,166,488	$	(222,564	)

XML

Loans (Tables)

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

Schedule of Loan Balances

Loan balances were as follows:

(In Thousands of Dollars)	September 30, 2024			December 31, 2023
Commercial real estate
Owner occupied	$	396,970		$	399,273
Non-owner occupied		684,603			712,315
Farmland		203,387			202,950
Other		290,801			224,218
Commercial
Commercial and industrial		358,247			346,354
Agricultural		58,386			58,338
Residential real estate
1-4 family residential		852,444			843,697
Home equity lines of credit		155,967			142,441
Consumer
Indirect		239,075			226,815
Direct		20,404			23,805
Other		9,752			9,164
Total loans	$	3,270,036		$	3,189,370
Net deferred loan costs		10,481			8,757
Allowance for credit losses		(36,186	)		(34,440	)
Net loans	$	3,244,331		$	3,163,687

Activity in the Allowance for Loan Losses by Portfolio Segment

The following tables present the activity in the allowance for credit losses by portfolio segment for the three and nine month periods ended September 30, 2024 and 2023:

Three Months Ended September 30, 2024

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate		Consumer			Total
Allowance for credit losses
Beginning balance	$	17,223		$	4,628		$	7,422	$	4,718		$	33,991
(Credit) Provision for credit losses		6,226			(24	)		117		488			6,807
Loans charged off		(4,401	)		(396	)		0		(319	)		(5,116	)
Recoveries		3			407			10		84			504
Total ending allowance balance	$	19,051		$	4,615		$	7,549	$	4,971		$	36,186

Nine Months Ended September 30, 2024

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	18,150		$	5,087		$	6,916		$	4,287		$	34,440
(Credit) Provision for credit losses		5,427			466			676			1,363			7,932
Loans charged off		(4,547	)		(1,411	)		(81	)		(1,020	)		(7,059	)
Recoveries		21			473			38			341			873
Total ending allowance balance	$	19,051		$	4,615		$	7,549		$	4,971		$	36,186

Three Months Ended September 30, 2023

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	18,537		$	5,295		$	6,866		$	4,259		$	34,957
PCD ACL on loans acquired		0			0			0			0			0
(Credit) Provision for credit losses		182			(45	)		13			32			182
Loans charged off		(3	)		(154	)		(157	)		(211	)		(525	)
Recoveries		0			6			12			121			139
Total ending allowance balance	$	18,716		$	5,102		$	6,734		$	4,201		$	34,753

Nine Months Ended September 30, 2023

(In Thousands of Dollars)	Commercial Real Estate			Commercial			Residential Real Estate			Consumer			Total
Allowance for credit losses
Beginning balance	$	14,840		$	4,186		$	4,374		$	3,578		$	26,978
PCD ACL on loans acquired		850			138			11			0			999
Provision for credit losses		3,185			1,638			2,542			867			8,232
Loans charged off		(160	)		(888	)		(251	)		(666	)		(1,965	)
Recoveries		1			28			58			422			509
Total ending allowance balance	$	18,716		$	5,102		$	6,734		$	4,201		$	34,753

Schedule of Amortized Cost Basis in Nonaccrual and Loans Past Due 90 Days or More Still on Accrual by Class of Loans

The following tables present the amortized cost basis of loans on nonaccrual status and loans past due over 89 days still accruing as of September 30, 2024 and December 31, 2023:

(In Thousands of Dollars)	Nonaccrual with no allowance for credit loss		Nonaccrual with an allowance for credit loss		Loans past due over 89 days still accruing
September 30, 2024
Commercial real estate
Owner occupied	$	1,576	$	852	$	0
Non-owner occupied		0		8,105		0
Farmland		1,789		5		0
Other		0		0		0
Commercial
Commercial and industrial		224		1,027		0
Agricultural		179		237		0
Residential real estate
1-4 family residential		526		3,489		91
Home equity lines of credit		96		146		0
Consumer
Indirect		87		500		0
Direct		66		75		0
Other		0		6		0
Total loans	$	4,543	$	14,442	$	91

(In Thousands of Dollars)	Nonaccrual with no allowance for credit loss		Nonaccrual with an allowance for credit loss		Loans past due over 89 days still accruing
December 31, 2023
Commercial real estate
Owner occupied	$	1,804	$	830	$	0
Non-owner occupied		19		1,491		0
Farmland		1,957		9		0
Other		0		80		0
Commercial
Commercial and industrial		394		1,408		0
Agricultural		203		317		0
Residential real estate
1-4 family residential		348		3,009		460
Home equity lines of credit		240		210		69
Consumer
Indirect		22		300		125
Direct		65		69		1
Other		0		5		0
Total loans	$	5,052	$	7,728	$	655

Schedule of Amortized Cost Basis in Past Due Loans

The following tables present the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2024 and December 31, 2023:

(In Thousands of Dollars)	Real Estate		Business Assets		Vehicles		Cash
September 30, 2024
Commercial real estate
Owner occupied	$	1,576	$	0	$	0	$	0
Non-owner occupied		8,119		0		0		0
Farmland		1,789		0		0		0
Other		0		0		0		0
Commercial
Commercial and industrial		79		145		0		0
Agricultural		0		179		0		0
Residential real estate
1-4 family residential		4,001		0		0		0
Home equity lines of credit		270		0		0		0
Consumer
Indirect		0		0		123		0
Direct		0		0		12		66
Other		0		0		0		0
Total loans	$	15,834	$	324	$	135	$	66

(In Thousands of Dollars)	Real Estate		Business Assets		Vehicles		Cash
December 31, 2023
Commercial real estate
Owner occupied	$	1,804	$	0	$	0	$	0
Non-owner occupied		1,335		0		0		0
Farmland		1,957		0		0		0
Other		0		0		0		0
Commercial
Commercial and industrial		94		867		0		0
Agricultural		0		203		0		0
Residential real estate
1-4 family residential		3,352		0		0		0
Home equity lines of credit		294		0		0		0
Consumer
Indirect		0		0		53		0
Direct		0		0		19		66
Other		0		0		0		0
Total loans	$	8,836	$	1,070	$	72	$	66

The following tables present the aging of the recorded investment in past due loans as of September 30, 2024 and December 31, 2023 by class of loans.

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
September 30, 2024
Commercial real estate
Owner occupied	$	706	$	448	$	2,428	$	3,582	$	393,158	$	396,740
Non-owner occupied		3,166		0		8,105		11,271		672,893		684,164
Farmland		0		0		1,794		1,794		201,397		203,191
Other		0		639		0		639		289,761		290,400
Commercial
Commercial and industrial		240		281		1,251		1,772		358,063		359,835
Agricultural		324		115		416		855		58,392		59,247
Residential real estate
1-4 family residential		5,367		1,542		4,106		11,015		841,767		852,782
Home equity lines of credit		672		92		242		1,006		155,066		156,072
Consumer
Indirect		1,285		512		587		2,384		245,505		247,889
Direct		62		11		141		214		20,228		20,442
Other		100		0		6		106		9,649		9,755
Total loans	$	11,922	$	3,640	$	19,076	$	34,638	$	3,245,879	$	3,280,517

(In Thousands of Dollars)	30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due and Nonaccrual		Total Past Due		Loans Not Past Due		Total
December 31, 2023
Commercial real estate
Owner occupied	$	302	$	293	$	2,634	$	3,229	$	395,799	$	399,028
Non-owner occupied		90		0		1,510		1,600		710,195		711,795
Farmland		365		0		1,966		2,331		200,395		202,726
Other		0		0		80		80		223,697		223,777
Commercial
Commercial and industrial		540		199		1,802		2,541		345,278		347,819
Agricultural		292		40		520		852		58,223		59,075
Residential real estate
1-4 family residential		6,819		4,488		3,817		15,124		828,437		843,561
Home equity lines of credit		729		34		519		1,282		141,189		142,471
Consumer
Indirect		2,045		289		447		2,781		232,105		234,886
Direct		153		23		135		311		23,514		23,825
Other		4		0		5		9		9,155		9,164
Total loans	$	11,339	$	5,366	$	13,435	$	30,140	$	3,167,987	$	3,198,127

XML

Loan Restructurings (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Amortized Cost Basis for Loans Restructured

Nine Months Ended September 30, 2024	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Principal Forgiveness		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable
Residential real estate
Home equity lines of credit	$	0	$	0	$	29	$	20	$	49		0.03	%
Total modifications to borrowers experiencing financial difficulty	$	0	$	0	$	29	$	20	$	49		0.00	%

Three Months Ended September 30, 2023	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Principal Forgiveness		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable
Residential real estate
1-4 family residential	$	0	$	0	$	31	$	133	$	164		0.02	%
Total modifications to borrowers experiencing financial difficulty	$	0	$	0	$	31	$	133	$	164		0.01	%

Nine Months Ended September 30, 2023	Amortized Cost
(In Thousands of Dollars)	Payment Deferral		Principal Forgiveness		Interest Rate Reduction		Combination Term Extension and Interest Rate Reduction		Total		% of Total Class of Financing Receivable
Commercial
Commercial and industrial	$	50	$	0	$	0	$	0	$	50		0.01	%
Residential real estate
1-4 family residential		0		0		31		133		164		0.02	%
Total modifications to borrowers experiencing financial difficulty	$	50	$	0	$	31	$	133	$	214		0.01	%

The following table presents the financial effect of the loan modifications presented above to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024 and September 30, 2023:

For the three month period ended September 30, 2024, there were no loan modification for borrowers experiencing financial difficulty.

	Payment Deferral	Term Extension		Interest Rate Reduction
	Weighted-Average Years Added to the Life	Weighted-Average Years Added to the Life		Weighted-Average Contractual Interest Rate
Nine Months Ended September 30, 2024				From			To
Residential real estate
Home equity lines of credit			10		10.45	%		5.91	%

	Payment Deferral		Term Extension		Interest Rate Reduction
	Weighted-Average Years Added to the Life		Reduction of Amortized Cost Basis of the Loans		Weighted-Average Contractual Interest Rate
Three Months Ended September 30, 2023					From			To
Residential real estate
1-4 family residential				5		4.77	%		3.38	%
	Payment Deferral		Term Extension		Interest Rate Reduction
	Weighted-Average Years Added to the Life		Reduction of Amortized Cost Basis of the Loans		Weighted-Average Contractual Interest Rate
Nine Months Ended September 30, 2023					From			To
Commercial
Commercial and industrial		0.5
Residential real estate
1-4 family residential				5		4.77	%		3.38	%

For the three and nine months ended

Schedule of Performance of Loans that Modified

The following table presents the performance of such loans that have been modified in the three and nine months ended September 30, 2024 and September 30, 2023:

For the three month period ended September 30, 2024, there were no loan modification for borrowers experiencing financial difficulty.

Nine Months Ended September 30, 2024	Payment status (Amortized cost Basis)
(In Thousands of Dollars)	Current		30-89 Days past due		90+ Days past due
Accrual restructured loans
Residential real estate
Home equity lines of credit	$	0	$	20	$	0
Total accruing restructured loans	$	0	$	20	$	0
Nonaccrual restructured loans
Residential real estate
Home equity lines of credit		0		0		29
Total nonaccrual restructured loans	$	0	$	0	$	29
Total restructured loans	$	0	$	20	$	29

Three Months Ended September 30, 2023	Payment status (Amortized cost Basis)
(In Thousands of Dollars)	Current		30-89 Days past due		90+ Days past due
Residential real estate
1-4 family residential	$	164	$	0	$	0
Total accruing restructured loans	$	164	$	0	$	0
Total restructured loans	$	164	$	0	$	0

Nine Months Ended September 30, 2023	Payment status (Amortized cost Basis)
(In Thousands of Dollars)	Current		30-89 Days past due		90+ Days past due
Commercial
Commercial and industrial	$	50	$	0	$	0
Residential real estate
1-4 family residential		164		0		0
Total accruing restructured loans	$	214	$	0	$	0
Nonaccrual restructured loans
Total nonaccrual restructured loans	$	0	$	0	$	0
Total restructured loans	$	214	$	0	$	0

XML

Credit Quality Indicators (Tables)

9 Months Ended

Sep. 30, 2024

Risks and Uncertainties [Abstract]

Risk Category of Loans by Class of Loans

As of September 30, 2024 and December 31, 2023, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

(In Thousands of Dollars)	Pass		Special Mention		Sub standard		Doubtful		Total
September 30, 2024
Commercial real estate
Owner occupied	$	385,103	$	4,908	$	6,729	$	0	$	396,740
Non-owner occupied		637,248		9,976		35,765		1,175		684,164
Farmland		200,902		0		2,289		0		203,191
Other		280,656		1,106		8,638		0		290,400
Commercial
Commercial and industrial		348,796		171		10,868		0		359,835
Agricultural		58,760		67		420		0		59,247
Total loans	$	1,911,465	$	16,228	$	64,709	$	1,175	$	1,993,577

(In Thousands of Dollars)	Pass		Special Mention		Sub standard		Total
December 31, 2023
Commercial real estate
Owner occupied	$	386,015	$	9,628	$	3,385	$	399,028
Non-owner occupied		648,063		27,938		35,794		711,795
Farmland		200,240		0		2,486		202,726
Other		215,459		0		8,318		223,777
Commercial
Commercial and industrial		334,764		646		12,409		347,819
Agricultural		58,506		17		552		59,075
Total loans	$	1,843,047	$	38,229	$	62,944	$	1,944,220

Investment in Residential, Consumer and Indirect Auto Loans Based on Payment Activity

The following tables present the recorded investment in residential, consumer indirect and direct auto loans based on payment activity as of September 30, 2024 and December 31, 2023. Nonperforming loans are loans past due 90 days or more and still accruing interest and nonaccrual loans.

	Residential Real Estate				Consumer
(In Thousands of Dollars)	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
September 30, 2024
Performing	$	848,676	$	155,830	$	247,302	$	20,301	$	9,749
Nonperforming		4,106		242		587		141		6
Total loans	$	852,782	$	156,072	$	247,889	$	20,442	$	9,755

	Residential Real Estate				Consumer
(In Thousands of Dollars)	1-4 Family Residential		Home Equity Lines of Credit		Indirect		Direct		Other
December 31, 2023
Performing	$	839,744	$	141,952	$	234,439	$	23,690	$	9,159
Nonperforming		3,817		519		447		135		5
Total loans	$	843,561	$	142,471	$	234,886	$	23,825	$	9,164

Risk Categories and Year of Origination

The following table presents total loans by risk categories and year of origination:

	Term Loans Amortized Cost Basis by Origination Year
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial real estate - Owner occupied:
Risk Rating
Pass	$	34,754	$	55,619	$	49,745	$	61,781	$	47,164	$	133,476	$	2,564	$	385,103
Special mention		0		3,250		0		1,130		0		528		0		4,908
Substandard		0		0		2,313		0		628		3,600		188		6,729
Total commercial real estate - Owner occupied loans	$	34,754	$	58,869	$	52,058	$	62,911	$	47,792	$	137,604	$	2,752	$	396,740
Commercial real estate - Owner Occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	21	$	0	$	0	$	21
Commercial real estate - Non-owner occupied:
Risk Rating
Pass	$	28,980	$	47,673	$	133,108	$	81,447	$	73,555	$	265,029	$	7,456	$	637,248
Special mention		0		0		536		314		0		9,126		0		9,976
Substandard		7,141		409		0		10,910		6,925		10,380		0		35,765
Doubtful		0		0		0		1,175		0		0		0		1,175
Total commercial real estate - Non-owner occupied loans	$	36,121	$	48,082	$	133,644	$	93,846	$	80,480	$	284,535	$	7,456	$	684,164
Commercial real estate - Non-owner occupied: Current period gross write-offs	$	0	$	0	$	0	$	4,380	$	146	$	0	$	0	$	4,526
Commercial real estate - Farmland:
Risk Rating
Pass	$	11,476	$	22,178	$	39,688	$	19,790	$	32,079	$	72,989	$	2,702	$	200,902
Substandard		0		0		0		319		0		1,970		0		2,289
Total commercial real estate - Farmland loans	$	11,476	$	22,178	$	39,688	$	20,109	$	32,079	$	74,959	$	2,702	$	203,191
Commercial real estate - Other:
Risk Rating
Pass	$	28,993	$	101,466	$	70,158	$	46,221	$	8,595	$	24,624	$	599	$	280,656
Special mention		0		993		0		113		0		0		0		1,106
Substandard		8,602		0		0		0		0		36		0		8,638
Total commercial real estate - Other loans	$	37,595	$	102,459	$	70,158	$	46,334	$	8,595	$	24,660	$	599	$	290,400

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Commercial - Commercial and industrial:
Risk Rating
Pass	$	59,602	$	87,280	$	59,819	$	29,847	$	13,538	$	23,284	$	75,426	$	348,796
Special mention		0		0		0		171		0		0		0		171
Substandard		80		87		5,851		281		191		1,804		2,574		10,868
Total commercial - Commercial and industrial loans	$	59,682	$	87,367	$	65,670	$	30,299	$	13,729	$	25,088	$	78,000	$	359,835
Commercial - Commercial and industrial: Current period gross write-offs	$	0	$	231	$	284	$	104	$	220	$	164	$	313	$	1,316
Commercial - Agricultural:
Risk Rating
Pass	$	7,691	$	12,502	$	14,426	$	6,352	$	2,216	$	1,152	$	14,421	$	58,760
Special mention		0		0		0		0		0		0		67		67
Substandard		0		1		45		63		172		139		0		420
Total commercial - Agricultural loans	$	7,691	$	12,503	$	14,471	$	6,415	$	2,388	$	1,291	$	14,488	$	59,247
Commercial - Agricultural: Current period gross write-offs	$	0	$	0	$	36	$	13	$	29	$	17	$	0	$	95
Residential real estate - 1-4 family residential:
Payment Performance
Performing	$	62,632	$	71,869	$	161,600	$	157,665	$	123,755	$	267,898	$	3,257	$	848,676
Nonperforming		0		0		24		299		1,920		1,863		0		4,106
Total residential real estate - 1-4 family residential loans	$	62,632	$	71,869	$	161,624	$	157,964	$	125,675	$	269,761	$	3,257	$	852,782
Residential real estate - 1-4 family residential: Current period gross write-offs	$	0	$	0	$	0	$	17	$	0	$	64	$	0	$	81
Residential real estate - Home equity lines of credit:
Payment Performance
Performing	$	0	$	166	$	61	$	169	$	95	$	4,491	$	150,848	$	155,830
Nonperforming		0		0		29		0		0		161		52		242
Total residential real estate - Home equity lines of credit loans	$	0	$	166	$	90	$	169	$	95	$	4,652	$	150,900	$	156,072

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of September 30, 2024	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
Consumer - Indirect:
Payment Performance
Performing	$	68,575	$	60,128	$	54,533	$	25,248	$	15,820	$	22,998	$	0	$	247,302
Nonperforming		0		81		189		153		68		96		0		587
Total consumer - Indirect loans	$	68,575	$	60,209	$	54,722	$	25,401	$	15,888	$	23,094	$	0	$	247,889
Consumer - Indirect: Current period gross write-offs	$	10	$	65	$	89	$	150	$	93	$	336	$	0	$	743
Consumer - Direct:
Payment Performance
Performing	$	2,246	$	2,539	$	2,735	$	1,489	$	906	$	10,039	$	347	$	20,301
Nonperforming		0		9		6		35		66		25		0		141
Total consumer - Direct loans	$	2,246	$	2,548	$	2,741	$	1,524	$	972	$	10,064	$	347	$	20,442
Consumer - Direct: Current period gross write-offs	$	0	$	7	$	29	$	5	$	5	$	91	$	0	$	137
Consumer - Other:
Payment Performance
Performing	$	0	$	0	$	0	$	60	$	100	$	375	$	9,214	$	9,749
Nonperforming		0		0		0		0		0		1		5		6
Total consumer - Other loans	$	0	$	0	$	0	$	60	$	100	$	376	$	9,219	$	9,755
Consumer - Other: Current period gross write-offs	$	0	$	0	$	1	$	0	$	0	$	139	$	0	$	140

	Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial real estate - Owner occupied:
Risk Rating
Pass	$	57,983	$	58,178	$	66,205	$	42,023	$	48,849	$	109,831	$	2,946	$	386,015
Special mention		0		293		0		8,779		0		556		0		9,628
Substandard		0		0		0		10		490		2,701		184		3,385
Total commercial real estate - Owner occupied loans	$	57,983	$	58,471	$	66,205	$	50,812	$	49,339	$	113,088	$	3,130	$	399,028
Commercial real estate - Owner Occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	1	$	0	$	0	$	1
Commercial real estate - Non-owner occupied:
Risk Rating
Pass	$	49,177	$	135,433	$	88,188	$	77,713	$	81,079	$	205,729	$	10,744	$	648,063
Special mention		0		0		12,156		0		6,565		9,217		0		27,938
Substandard		0		0		3,972		10,037		3,492		17,794		499		35,794
Total commercial real estate - Non-owner occupied loans	$	49,177	$	135,433	$	104,316	$	87,750	$	91,136	$	232,740	$	11,243	$	711,795
Commercial real estate - Non-owner occupied: Current period gross write-offs	$	0	$	0	$	0	$	0	$	144	$	201	$	0	$	345
Commercial real estate - Farmland:
Risk Rating
Pass	$	22,576	$	40,101	$	20,890	$	34,036	$	18,634	$	59,900	$	4,103	$	200,240
Substandard		0		0		330		0		26		2,130		0		2,486
Total commercial real estate - Farmland loans	$	22,576	$	40,101	$	21,220	$	34,036	$	18,660	$	62,030	$	4,103	$	202,726
Commercial real estate - Farmland: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	3	$	0	$	3
Commercial real estate - Other:
Risk Rating
Pass	$	68,911	$	56,753	$	47,895	$	9,063	$	8,516	$	23,269	$	1,052	$	215,459
Substandard		0		0		0		8,186		0		132		0		8,318
Total commercial real estate - Other loans	$	68,911	$	56,753	$	47,895	$	17,249	$	8,516	$	23,401	$	1,052	$	223,777

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Commercial - Commercial and industrial:
Risk Rating
Pass	$	90,807	$	85,255	$	40,444	$	21,794	$	9,736	$	23,030	$	63,698	$	334,764
Special mention		0		141		355		21		0		0		129		646
Substandard		195		3,551		980		404		1,077		699		5,503		12,409
Total commercial - Commercial and industrial loans	$	91,002	$	88,947	$	41,779	$	22,219	$	10,813	$	23,729	$	69,330	$	347,819
Commercial - Commercial and industrial: Current period gross write-offs	$	0	$	178	$	579	$	11	$	16	$	394	$	0	$	1,178
Commercial - Agricultural:
Risk Rating
Pass	$	13,738	$	17,368	$	8,917	$	3,584	$	1,386	$	1,133	$	12,380	$	58,506
Special mention		0		0		0		0		0		0		17		17
Substandard		0		33		118		225		24		152		0		552
Total commercial - Agricultural loans	$	13,738	$	17,401	$	9,035	$	3,809	$	1,410	$	1,285	$	12,397	$	59,075
Commercial - Agricultural: Current period gross write-offs	$	0	$	15	$	70	$	3	$	0	$	6	$	0	$	94
Residential real estate - 1-4 family residential:
Payment Performance
Performing	$	63,365	$	171,862	$	164,469	$	132,989	$	49,380	$	254,027	$	3,652	$	839,744
Nonperforming		37		58		312		1,645		115		1,650		0		3,817
Total residential real estate - 1-4 family residential loans	$	63,402	$	171,920	$	164,781	$	134,634	$	49,495	$	255,677	$	3,652	$	843,561
Residential real estate - 1-4 family residential: Current period gross write-offs	$	52	$	0	$	49	$	130	$	0	$	129	$	0	$	360
Residential real estate - Home equity lines of credit:
Payment Performance
Performing	$	0	$	19	$	14	$	111	$	51	$	3,302	$	138,455	$	141,952
Nonperforming		0		26		13		15		0		465		0		519
Total residential real estate - Home equity lines of credit loans	$	0	$	45	$	27	$	126	$	51	$	3,767	$	138,455	$	142,471
Residential real estate - Home equity lines of credit: Current period gross write-offs	$	0	$	0	$	0	$	8	$	0	$	16	$	0	$	24

	Term Loans Amortized Cost Basis by Origination Year (Continued)
As of December 31, 2023	2023		2022		2021		2020		2019		Prior		Revolving Loans		Total
Consumer - Indirect:
Payment Performance
Performing	$	74,425	$	71,705	$	32,528	$	21,163	$	11,395	$	23,223	$	0	$	234,439
Nonperforming		54		108		138		85		26		36		0		447
Total consumer - Indirect loans	$	74,479	$	71,813	$	32,666	$	21,248	$	11,421	$	23,259	$	0	$	234,886
Consumer - Indirect: Current period gross write-offs	$	33	$	138	$	71	$	35	$	23	$	232	$	0	$	532
Consumer - Direct:
Payment Performance
Performing	$	3,552	$	3,812	$	2,203	$	1,352	$	974	$	11,431	$	366	$	23,690
Nonperforming		0		17		0		65		0		53		0		135
Total consumer - Direct loans	$	3,552	$	3,829	$	2,203	$	1,417	$	974	$	11,484	$	366	$	23,825
Consumer - Direct: Current period gross write-offs	$	11	$	38	$	22	$	51	$	9	$	100	$	0	$	231
Consumer - Other:
Payment Performance
Performing	$	0	$	0	$	60	$	103	$	82	$	278	$	8,636	$	9,159
Nonperforming		0		0		0		0		0		5		0		5
Total consumer - Other loans	$	0	$	0	$	60	$	103	$	82	$	283	$	8,636	$	9,164
Consumer - Other: Current period gross write-offs	$	0	$	0	$	0	$	0	$	0	$	20	$	149	$	169

Summary of Loan Pools and Methodology Used in Calculation of Allowance for Credit Losses

The following table presents the loan pools and the associated methodology used during the calculation of the allowance for credit losses in 2024.

Portfolio Segments	Loan Pool	Methodology	Loss Drivers
Residential real estate	1-4 Family Residential Real Estate - 1st Liens	Cohort	Credit Loss History
	1-4 Family Residential Real Estate - 2nd Liens	Cohort	Credit Loss History
Home Equity Lines of Credit	Home Equity Lines of Credit	Cohort	Credit Loss History
Consumer Finance	Cash Reserves	Cohort	Credit Loss History
	Direct	Cohort	Credit Loss History
	Indirect	Cohort	Credit Loss History
Commercial	Commercial and Industrial	PD/LGD	Credit Loss History
	Agricultural	PD/LGD	Credit Loss History
	Municipal	PD/LGD	Credit Loss History
Commercial real estate	Owner Occupied	PD/LGD	Credit Loss History
	Non-Owner Occupied	PD/LGD	Credit Loss History
	Multifamily	PD/LGD	Credit Loss History
	Farmland	PD/LGD	Credit Loss History
	Construction	PD/LGD	Credit Loss History

Schedule of Outstanding Balance and Related Allowance on Loans

The outstanding balance at September 30, 2024 and related allowance on PCD loans is as follows:

	Loan Balance		ACL Balance
Commercial real estate
Owner Occupied	$	384	$	14
Non-owner Occupied		27,033		475
Farmland		5		0
Commercial
Commercial and industrial		1,690		115
Agricultural		117		7
Residential real estate
1-4 family residential		1,265		7
Home equity lines of credit		3		0
Total	$	30,497	$	618

XML

Revenue from Contracts with Customers (Tables)

9 Months Ended

Sep. 30, 2024

Revenue from Contract with Customer [Abstract]

Summary of Noninterest Income by Revenue Stream and Reportable Segment, Net of Eliminations

All material revenue from contracts with customers in the scope of ASC 606 is recognized within noninterest income. ASC 606 rules govern the disclosure of revenue tied to contracts. The following table presents the Company’s noninterest income by revenue stream and reportable segment, net of eliminations, for the three and nine months ended September 30, 2024 and 2023.

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Three Months Ended September 30, 2024
Service charges on deposit accounts	$	0	$	1,992	$	1,992
Debit card and EFT fees		0		1,993		1,993
Trust fees		2,544		0		2,544
Insurance agency commissions		0		1,416		1,416
Retirement plan consulting fees		677		0		677
Investment commissions		0		476		476
Other (outside the scope of ASC 606)		0		3,242		3,242
Total noninterest income	$	3,221	$	9,119	$	12,340

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Three Months Ended September 30, 2023
Service charges on deposit accounts	$	0	$	1,712	$	1,712
Debit card and EFT fees		0		1,763		1,763
Trust fees		2,327		0		2,327
Insurance agency commissions		0		1,116		1,116
Retirement plan consulting fees		650		0		650
Investment commissions		0		520		520
Other (outside the scope of ASC 606)		0		1,743		1,743
Total noninterest income	$	2,977	$	6,854	$	9,831

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Nine Months Ended September 30, 2024
Service charges on deposit accounts	$	0	$	5,421	$	5,421
Debit card and EFT fees		0		5,320		5,320
Trust fees		7,398		0		7,398
Insurance agency commissions		0		4,199		4,199
Retirement plan consulting fees		1,918		0		1,918
Investment commissions		0		1,386		1,386
Other (outside the scope of ASC 606)		0		4,660		4,660
Total noninterest income	$	9,316	$	20,986	$	30,302

(In Thousands of Dollars)	Trust Segment		Bank Segment		Totals
For Nine Months Ended September 30, 2023
Service charges on deposit accounts	$	0	$	4,646	$	4,646
Debit card and EFT fees		0		5,362		5,362
Trust fees		6,665		0		6,665
Insurance agency commissions		0		3,904		3,904
Retirement plan consulting fees		1,837		0		1,837
Investment commissions		0		1,389		1,389
Other (outside the scope of ASC 606)		0		5,902		5,902
Total noninterest income	$	8,502	$	21,203	$	29,705

XML

Fair Value (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on Recurring Basis

Assets measured at fair value on a recurring basis are summarized below:

			Fair Value Measurements at September 30, 2024 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Investment securities available-for sale
U.S. Treasury and U.S. government sponsored entities	$	119,593	$	0	$	119,593	$	0
State and political subdivisions		527,722		0		527,722		0
Corporate bonds		18,436		0		17,018		1,418
Mortgage-backed securities-residential		513,213		0		513,213		0
Collateralized mortgage obligations		111,761		0		111,761		0
Small Business Administration		2,625		0		2,625		0
Total investment securities	$	1,293,350	$	0	$	1,291,932	$	1,418
Equity securities	$	261	$	261	$	0	$	0
Loans held for sale		2,852		0		2,852		0
Interest rate swaps		2,739		0		2,739		0
Interest rate lock commitments		96		0		96		0
Financial Liabilities
Interest rate swaps	$	2,739	$	0	$	2,739	$	0
Fair value hedge derivative		1,392		0		1,392		0
Mortgage banking derivative		14		0		14		0

			Fair Value Measurements at December 31, 2023 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Investment securities available-for sale
U.S. Treasury and U.S. government sponsored entities	$	127,955	$	0		127,955	$	0
State and political subdivisions		556,169		0		556,169		0
Corporate bonds		18,275		0		16,935		1,340
Mortgage-backed securities-residential		520,386		0		520,386		0
Collateralized mortgage obligations		73,999		0		73,999		0
Small Business Administration		2,917		0		2,917		0
Total investment securities	$	1,299,701	$	0	$	1,298,361	$	1,340
Equity securities	$	226	$	226	$	0	$	0
Loans held for sale		3,711		0		3,711		0
Interest rate swaps		4,191		0		4,191		0
Interest rate lock commitments		109		0		109		0
Financial Liabilities
Interest rate swaps	$	4,191	$	0	$	4,191	$	0
Fair value hedge derivative		836		0		836		0
Mortgage banking derivative		14		0		14		0

Reconciliation of All Assets Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs

The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Three Months ended September 30				Nine Months ended September 30
(In Thousands of Dollars)	2024		2023		2024		2023
Beginning Balance	$	1,397	$	1,224	$	1,340	$	1
Transfers between levels		0		0		0		0
Acquired and/or purchased		0		0		0		1,600
Discount accretion (premium amortization)		13		11		39		23
Repayments, calls and maturities		0		0		0		(401	)
Changes in unrealized gains (losses)		8		1		39		13
Ending Balance	$	1,418	$	1,236	$	1,418	$	1,236

Assets Measured at Fair Value on Non-Recurring Basis

Assets measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at September 30, 2024 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Individually evaluated loans
Commercial real estate
Non-owner occupied	$	6,944	$	0	$	0	$	6,944
1–4 family residential		1,517		0		0		1,517
Mortgage servicing rights		454		0		454		0

			Fair Value Measurements at December 31, 2023 Using:
(In Thousands of Dollars)	Carrying Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets
Individually evaluated loans
Commercial real estate
Non-owner occupied	$	838	$	0	$	0	$	838
Commercial and industrial		267		0		0		267
1–4 family residential		1,547		0		0		1,547
Mortgage servicing rights		210		0		210		0

Fair Value Measurements for Financial Instruments

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at the periods ended September 30, 2024 and December 31, 2023:

September 30, 2024	Fair value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated loans
Commercial real estate	$	6,944	Income Approach	Adjustment for difference between cap rates of comparable sales	(56.03%) - 69.02% (40.71%)
Residential		1,517	Sales comparison	Adjustment for differences between comparable sales	(5.39%) - 2.11% (2.67%)

December 31, 2023	Fair value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average)
Individually evaluated loans
Commercial real estate	$	838	Income approach	Adjustment for difference between cap rates of comparable sales	(49.65%) - 46.77% (16.63%)
Commercial		267	Quoted price for collateral	Offer Price	64.38%
Residential		1,547	Sales comparison	Adjustment for differences between comparable sales	(5.39%) - (2.11%) (2.67%)

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not previously disclosed at September 30, 2024 and December 31, 2023 are as follows:

	Carrying		Fair Value Measurements at September 30, 2024 Using:
(In Thousands of Dollars)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	189,136	$	21,149	$	167,987	$	0	$	189,136
Regulatory stock		17,678	n/a		n/a		n/a		n/a
Loans, net		3,244,331		0		0		3,136,414		3,136,414
Financial liabilities
Deposits		4,361,837		3,518,405		841,386		0		4,359,791
Short-term borrowings		285,000		0		285,000		0		285,000
Long-term borrowings		86,038		0		76,389		0		76,389

	Carrying		Fair Value Measurements at December 31, 2023 Using:
(In Thousands of Dollars)	Amount		Level 1		Level 2		Level 3		Total
Financial assets
Cash and cash equivalents	$	103,658	$	28,896	$	74,762	$	0	$	103,658
Regulatory stock		20,197	n/a		n/a		n/a		n/a
Loans, net		3,163,687		0		0		3,015,732		3,015,732
Financial liabilities
Deposits		4,177,386		3,452,104		719,497		0		4,171,601
Short-term borrowings		355,000		0		355,000		0		355,000
Long-term borrowings		88,663		0		70,893		0		70,893

XML

Goodwill and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Acquired Intangible Assets

Acquired Intangible Assets

Acquired intangible assets were as follows:

	September 30, 2024					December 31, 2023
(In Thousands of Dollars)	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Amortized intangible assets:
Customer relationship intangibles	$	7,210	$	(7,055	)	$	7,210	$	(6,953	)
Non-compete contracts		457		(423	)		457		(413	)
Trade name		1,126		(461	)		1,126		(440	)
Core deposit intangible		32,115		(12,075	)		32,115		(10,260	)
Total	$	40,908	$	(20,014	)	$	40,908	$	(18,066	)

Estimated Amortization Expense

Estimated amortization expense for each of the next five periods and thereafter:

2024 (3 months)	$	629
2025		2,451
2026		2,355
2027		2,242
2028		2,231
Thereafter		10,986
Total	$	20,894

XML

Leases (Tables)

9 Months Ended

Sep. 30, 2024

Leases [Abstract]

Maturities of Lease Liabilities

Maturities of lease liabilities are as follows as of September 30, 2024:

2024 (3 months)	$	334
2025		1,282
2026		1,166
2027		1,083
2028		1,097
Thereafter		5,984
Total Payments		10,946
Less: lease liability expense		(1,709	)
Total	$	9,237

XML

Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of the Interest Rate Swap Designated as a Fair Value Hedge

A summary of the interest rate swap designated as a fair value hedge is presented below:

	September 30, 2024			December 31, 2023
Notional amount fair value hedge	$	100,000		$	100,000
Fixed pay rates		4.35	%		4.35	%
Variable SOFR receive rates		4.96	%		5.38	%
Remaining maturity (in years)		1.8			2.6
Fair value	$	(1,392	)	$	(836	)

Summary of Non-Designated Derivative Instruments used for Risk Management

The net gains (losses) relating to non-designated derivative instruments used for risk management are included in Net Gains on Sale of Loans on the Consolidated Statements of Income and are summarized below for the quarters ended September 30, 2024 and September 30, 2023:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
		2024			2023			2024			2023
Forward sales contracts	$	(18	)	$	22		$	0		$	6
Interest rate lock commitments		43			(76	)		(12	)		(19	)

Summary of Fair Value of Derivatives in Consolidated Balance Sheets

The following table reflects the amount and fair value of mortgage banking derivatives included in the Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023:

	September 30, 2024					December 31, 2023
	Notional		Fair			Notional		Fair
	Amount		Value			Amount		Value
Included in other assets:
Forward sales contracts	$	361	$	2		$	0	$	0
Interest rate lock commitments		9,454		96			7,400		109
Mortgage banking derivative		0		0			0		0
Total included in other assets	$	9,815	$	98		$	7,400	$	109
Included in other liabilities:
Mortgage banking derivative	$	9,500	$	(14	)	$	3,300	$	(14	)

XML

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The computation of basic and diluted earnings per share is shown in the following table:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Basic EPS
Net income (In thousands of dollars)	$	8,535	$	13,314	$	31,558	$	35,356
Weighted average shares outstanding		37,352,872		37,241,383		37,319,035		37,430,782
Basic earnings per share	$	0.23	$	0.36	$	0.85	$	0.94
Diluted EPS
Net income (In thousands of dollars)	$	8,535	$	13,314	$	31,558	$	35,356
Weighted average shares outstanding for basic earnings per share		37,352,872		37,241,383		37,319,035		37,430,782
Dilutive effect of restricted stock awards		214,083		137,971		175,503		102,427
Weighted average shares for diluted earnings per share		37,566,955		37,379,354		37,494,538		37,533,209
Diluted earnings per share	$	0.23	$	0.36	$	0.84	$	0.94

XML

Stock Based Compensation (Tables)

9 Months Ended

Sep. 30, 2024

Share-Based Payment Arrangement [Abstract]

Summary of Award Activity under Plans

The following is the activity under the Plans during the nine month period ended September 30, 2024.

	Maximum Awarded Service Units			Weighted Average Grant Date Fair Value		Maximum Awarded Performance Units			Weighted Average Grant Date Fair Value
Beginning balance - non-vested shares		253,776		$	14.97		209,484		$	15.01
Granted		71,925			12.97		99,253			13.81
Vested		(91,256	)		12.76		(66,192	)		13.79
Forfeited		(13,667	)		16.35		(19,625	)		15.05
Ending balance - non-vested shares		220,778		$	14.30		222,920		$	14.57

The following is the activity under the Plans during the nine month period ended September 30, 2023.

	Maximum Awarded Service Units			Weighted Average Grant Date Fair Value		Maximum Awarded Performance Units			Weighted Average Grant Date Fair Value
Beginning balance - non-vested shares		193,015		$	16.69		137,369		$	15.85
Granted		87,391			12.88		102,750			14.16
Vested		(30,990	)		12.92		(30,635	)		14.35
Forfeited		(1,541	)		17.64		0			0.00
Ending balance - non-vested shares		247,875		$	15.40		209,484		$	15.01

XML

Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2024

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables represent the changes in accumulated other comprehensive income (loss) by component, net of tax, for the three and nine month periods ended September 30, 2024 and 2023.

(In Thousands of Dollars)	Net unrealized holding (losses) gains on available for sale securities			Reclassification adjustment for (gains) losses realized in income on fair value hedge			Change in funded status of post-retirement plan			Total
Balance December 31, 2023	$	(171,539	)	$	(1,013	)	$	(2	)	$	(172,554	)
Other comprehensive (loss) before reclassification		(15,149	)		0			0			(15,149	)
Amounts reclassified from accumulated other comprehensive income		1,686			1,063			0			2,749
Net current period other comprehensive (loss) income		(13,463	)		1,063			0			(12,400	)
Balance March 31, 2024	$	(185,002	)	$	50		$	(2	)	$	(184,954	)
Other comprehensive (loss) before reclassification		(6,545	)		0			0			(6,545	)
Amounts reclassified from accumulated other comprehensive income		99			167			0			266
Net current period other comprehensive (loss) income		(6,446	)		167			0			(6,279	)
Balance June 30, 2024	$	(191,448	)	$	217		$	(2	)	$	(191,233	)
Other comprehensive income before reclassification		41,452			0			0			41,452
Amounts reclassified from accumulated other comprehensive income		333			(1,503	)		0			(1,170	)
Net current period other comprehensive income (loss)		41,785			(1,503	)		0			40,282
Balance September 30, 2024	$	(149,663	)	$	(1,286	)	$	(2	)	$	(150,951	)
Balance December 31, 2022	$	(210,489	)	$	0		$	(1	)	$	(210,490	)
Other comprehensive income before reclassification		33,891			0			0			33,891
Amounts reclassified from accumulated other comprehensive (loss)		(95	)		0			0			(95	)
Net current period other comprehensive income		33,796			0			0			33,796
Balance March 31, 2023	$	(176,693	)	$	0		$	(1	)	$	(176,694	)
Other comprehensive (loss) before reclassification		(16,834	)		0			0			(16,834	)
Amounts reclassified from accumulated other comprehensive income		0			0			0			0
Net current period other comprehensive (loss)		(16,834	)		0			0			(16,834	)
Balance June 30, 2023	$	(193,527	)	$	0		$	(1	)	$	(193,528	)
Other comprehensive (loss) before reclassification		(59,786	)		0			0			(59,786	)
Amounts reclassified from accumulated other comprehensive income		488			613			0			1,101
Net current period other comprehensive (loss) income		(59,298	)		613			0			(58,685	)
Balance September 30, 2023	$	(252,825	)	$	613		$	(1	)	$	(252,213	)

XML

Regulatory Capital Matters (Tables)

9 Months Ended

Sep. 30, 2024

Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract]

Schedule of Actual and Required Capital Amounts and Ratios, Not Include Capital Conservation Buffer

Actual and required capital amounts and ratios, which do not include the capital conservation buffer, are presented below at September 30, 2024 and December 31, 2023:

	Actual					Requirement For Capital Adequacy Purposes:					To be Well Capitalized Under Prompt Corrective Action Provisions:
	Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2024
Common equity tier 1 capital ratio
Consolidated	$	406,169		10.91	%	$	167,578		4.5	%	N/A		N/A
Bank		426,179		11.46	%		167,368		4.5	%		241,753		6.5	%
Total risk based capital ratio
Consolidated		533,935		14.34	%		297,916		8.0	%	N/A		N/A
Bank		463,945		12.47	%		297,543		8.0	%		371,928		10.0	%
Tier 1 risk based capital ratio
Consolidated		424,169		11.39	%		223,437		6.0	%	N/A		N/A
Bank		426,179		11.46	%		223,157		6.0	%		297,543		8.0	%
Tier 1 leverage ratio
Consolidated		424,169		8.20	%		206,949		4.0	%	N/A		N/A
Bank		426,179		8.26	%		206,383		4.0	%		257,978		5.0	%
December 31, 2023
Common equity tier 1 capital ratio
Consolidated	$	392,244		10.61	%	$	166,303		4.5	%	N/A		N/A
Bank		411,304		11.15	%		165,996		4.5	%	$	239,772		6.5	%
Total risk based capital ratio
Consolidated		519,684		14.06	%		295,650		8.0	%	N/A		N/A
Bank		447,584		12.13	%		295,104		8.0	%		368,881		10.0	%
Tier 1 risk based capital ratio
Consolidated		410,244		11.10	%		221,737		6.0	%	N/A		N/A
Bank		411,304		11.15	%		221,328		6.0	%		295,104		8.0	%
Tier 1 leverage ratio
Consolidated		410,244		8.02	%		204,598		4.0	%	N/A		N/A
Bank		411,304		8.07	%		203,989		4.0	%		254,986		5.0	%

XML

Segment Information (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

Significant segment totals are reconciled to the financial statements as follows:

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
September 30, 2024
Goodwill and other intangibles	$	5,643	$	186,960	$	(4,263	)	$	188,340
Total assets	$	15,640	$	5,223,757	$	(2,894	)	$	5,236,503

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
December 31, 2023
Goodwill and other intangibles	$	5,680	$	188,871	$	(4,263	)	$	190,288
Total assets	$	15,845	$	5,065,150	$	(2,645	)	$	5,078,350

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Three Months Ended September 30, 2024
Net interest income	$	45	$	32,854	$	(1,023	)	$	31,876
Provision for credit losses and unfunded loans		0		7,008		0			7,008
Service fees, security gains and other noninterest income		3,311		8,876		153			12,340
Noninterest expense		1,786		23,417		371			25,574
Amortization and depreciation expense		14		1,340		147			1,501
Income before taxes		1,556		9,965		(1,388	)		10,133
Income taxes		328		1,561		(291	)		1,598
Net income	$	1,228	$	8,404	$	(1,097	)	$	8,535

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Nine Months Ended September 30, 2024
Net interest income	$	159	$	98,568	$	(3,098	)	$	95,629
Provision for credit losses and unfunded loans		0		7,671		0			7,671
Service fees, security gains and other noninterest income		9,503		21,224		(425	)		30,302
Noninterest expense		5,515		68,996		1,402			75,913
Amortization and depreciation expense		52		4,177		375			4,604
Income before taxes		4,095		38,948		(5,300	)		37,743
Income taxes		862		6,437		(1,114	)		6,185
Net income	$	3,233	$	32,511	$	(4,186	)	$	31,558

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Three Months Ended September 30, 2023
Net interest income	$	81	$	34,679	$	(992	)	$	33,768
Provision for credit losses and unfunded loans		0		243		0			243
Service fees, security gains and other noninterest income		2,994		6,847		(10	)		9,831
Noninterest expense		1,679		23,873		484			26,036
Amortization and depreciation expense		22		1,544		114			1,680
Income before taxes		1,374		15,866		(1,600	)		15,640
Income taxes		289		2,416		(379	)		2,326
Net income	$	1,085	$	13,450	$	(1,221	)	$	13,314

(In Thousands of Dollars)	Trust Segment		Bank Segment		Eliminations and Others			Consolidated Totals
For Nine Months Ended September 30, 2023
Net interest income	$	195	$	107,663	$	(2,902	)	$	104,956
Provision for credit losses and unfunded loans		0		8,867		0			8,867
Service fees, security gains and other noninterest income		8,562		21,770		(627	)		29,705
Noninterest expense		4,976		72,464		1,604			79,044
Amortization and depreciation expense		68		5,372		340			5,780
Income before taxes		3,713		42,730		(5,473	)		40,970
Income taxes		781		6,122		(1,289	)		5,614
Net income	$	2,932	$	36,608	$	(4,184	)	$	35,356

XML

Long-Term Borrowings (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Summary of All Junior Subordinated Debentures and Subordinated Debentures

Balances were as follows at September 30, 2024 and December 31, 2023:

	September 30, 2024		December 31, 2023
	Amount		Amount
TSEO Statutory Trust I	$	2,558	$	2,521
Maple Leaf Financial Statutory Trust II		7,908		7,740
Cortland Statutory Trust I		4,423		4,382
Total junior subordinated debentures owed to unconsolidated subsidiary trusts	$	14,889	$	14,643
Subordinated Debentures	$	71,149	$	74,020
Total long-term borrowings	$	86,038	$	88,663

XML

Summary of Significant Accounting Policies (Details Textual)	9 Months Ended
	Sep. 30, 2024 Segment shares	Dec. 31, 2023 shares
Summary of Significant Accounting Policies (Additional Textual) [Abstract]
Operating segments of business | Segment	2
Common stock, shares authorized and available for issuance	50,000,000	50,000,000
Common stock, shares outstanding	37,573,650	37,502,773

XML

Business Combinations (Details Textual) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 01, 2023	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2023	Nov. 01, 2021
Business Acquisition [Line Items]
Goodwill		$ 167,446,000		$ 167,446,000			$ 167,446,000
Emclaire Financial Corp
Business Acquisition [Line Items]
Business acquisition, date of merger agreement	Jan. 01, 2023
Cash consideration per share | $ / shares						$ 14.12
Maximum percentage of common shares exchanged for company shares under merger agreement	70.00%
Remaining percentage of common shares exchanged for company cash under merger agreement	30.00%
Value of stock issued for acquisition	$ 33,440,000
Fair value of total consideration transferred	92,642,000					$ 92,600,000
Merger related costs		$ 0	$ 268,000	$ 0	$ 5,000,000
Goodwill	$ 72,938,000							$ 72,900,000
Emclaire Financial Corp | Common Stock
Business Acquisition [Line Items]
Cash consideration per share | $ / shares	$ 40
Shares of stock issued for acquisition	2.15					4,200,000
Value of stock issued for acquisition						$ 33,400,000
PCD Loans
Business Acquisition [Line Items]
Business combination acquired receivables with fair value	$ 714,400,000
Business combination acquired loans with gross contractual amounts receivable	$ 764,800,000

XML

Business Combinations (Details) - USD ($) $ in Thousands		12 Months Ended
	Jan. 01, 2023	Dec. 31, 2022	Sep. 30, 2024	Dec. 31, 2023	Nov. 01, 2021
Fair value of liabilities assumed
Goodwill created			$ 167,446	$ 167,446
Emclaire Financial Corp
Consideration
Cash	$ 33,440
Stock	59,202
Fair value of total consideration transferred	92,642	$ 92,600
Fair value of assets acquired
Cash and cash equivalents	20,265
Securities available for sale	126,970
Other investments	7,795
Loans, net	740,659
Premises and equipment	14,808
Bank owned life insurance	22,485
Core deposit intangible	19,249
Current and deferred taxes	17,708
Other assets	7,682
Total assets acquired	977,621
Fair value of liabilities assumed
Deposits	875,813
Short-term borrowings	75,000
Accrued interest payable and other liabilities	7,104
Total liabilities	957,917
Net assets acquired	19,704
Goodwill created	72,938				$ 72,900
Total net assets acquired	$ 92,642

XML

Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	$ 1,482,798	$ 1,516,841
Gross Unrealized Gains	5,564	5,424
Gross Unrealized Losses	(195,012)	(222,564)
Fair Value	1,293,350	1,299,701
U.S. Treasury and U.S. government sponsored entities
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	132,478	145,439
Gross Unrealized Gains	119	113
Gross Unrealized Losses	(13,004)	(17,597)
Fair Value	119,593	127,955
State and political subdivisions
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	611,001	644,880
Gross Unrealized Gains	4,159	4,792
Gross Unrealized Losses	(87,438)	(93,503)
Fair Value	527,722	556,169
Corporate bonds
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	18,494	18,554
Gross Unrealized Gains	313	187
Gross Unrealized Losses	(371)	(466)
Fair Value	18,436	18,275
Mortgage-backed securities - residential
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	601,239	624,529
Gross Unrealized Gains	491	1
Gross Unrealized Losses	(88,517)	(104,144)
Fair Value	513,213	520,386
Collateralized mortgage obligations
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	116,764	80,227
Gross Unrealized Gains	482	331
Gross Unrealized Losses	(5,485)	(6,559)
Fair Value	111,761	73,999
Small Business Administration
Debt Securities, Available-for-Sale [Line Items]
Amortized Cost	2,822	3,212
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(197)	(295)
Fair Value	$ 2,625	$ 2,917

XML

Securities (Details Textual)	Sep. 30, 2024 USD ($) Securities	Dec. 31, 2023 USD ($)
Debt Securities, Available-for-Sale [Line Items]
Number of securities | Securities	944
Number of securities on unrealized loss position | Securities	756
Allowance for credit losses on available-for-sale securities	$ 0
Small Business Investment Company Partnership Investments
Debt Securities, Available-for-Sale [Line Items]
Equity securities	15,700,000	$ 14,900,000
Local and Regional Bank Holdings and Other Miscellaneous Equity Funds
Debt Securities, Available-for-Sale [Line Items]
Equity securities	$ 261,000	$ 226,000

XML

Securities (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Debt Securities, Available-for-Sale, Realized Gain (Loss) [Abstract]
Proceeds from sales of securities available for sale	$ 4,109	$ 15,388	$ 48,865	$ 85,306
Gross gains	0	0	17	441
Gross losses	$ (421)	$ (618)	$ (2,697)	$ (939)

XML

Securities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Amortized cost and fair value of the debt securities maturity
Amortized Cost, Within one year	$ 3,154
Amortized Cost, One to five years	66,494
Amortized Cost, Five to ten years	162,857
Amortized Cost, Beyond ten years	529,468
Amortized Cost, Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities	720,825
Amortized Cost	1,482,798	$ 1,516,841
Fair Value, Within one year	3,188
Fair Value, One to five years	60,894
Fair Value, Five to ten years	152,018
Fair Value, Beyond ten years	449,651
Fair Value, Mortgage-backed, collateralized mortgage obligations and Small Business Administration securities	627,599
Fair Value, Total	$ 1,293,350	$ 1,299,701

XML

Securities (Details 3) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Investment securities with unrealized losses
Fair Value, Less Than 12 Months	$ 58,060	$ 49,846
Unrealized Losses, Less Than 12 Months	(3,331)	(3,025)
Fair Value, 12 Months or Longer	1,091,841	1,116,642
Unrealized Losses, 12 Months or Longer	(191,681)	(219,539)
Fair Value, Total	1,149,901	1,166,488
Unrealized Losses, Total	(195,012)	(222,564)
U.S. Treasury and U.S. government sponsored entities
Investment securities with unrealized losses
Fair Value, Less Than 12 Months	2,758	399
Unrealized Losses, Less Than 12 Months	(252)	(1)
Fair Value, 12 Months or Longer	114,823	122,361
Unrealized Losses, 12 Months or Longer	(12,752)	(17,596)
Fair Value, Total	117,581	122,760
Unrealized Losses, Total	(13,004)	(17,597)
State and political subdivisions
Investment securities with unrealized losses
Fair Value, Less Than 12 Months	32,039	15,852
Unrealized Losses, Less Than 12 Months	(2,730)	(1,684)
Fair Value, 12 Months or Longer	418,686	428,416
Unrealized Losses, 12 Months or Longer	(84,708)	(91,819)
Fair Value, Total	450,725	444,268
Unrealized Losses, Total	(87,438)	(93,503)
Corporate bonds
Investment securities with unrealized losses
Fair Value, Less Than 12 Months	2,392	8,463
Unrealized Losses, Less Than 12 Months	(34)	(284)
Fair Value, 12 Months or Longer	8,857	3,881
Unrealized Losses, 12 Months or Longer	(337)	(182)
Fair Value, Total	11,249	12,344
Unrealized Losses, Total	(371)	(466)
Mortgage-backed securities - residential
Investment securities with unrealized losses
Fair Value, Less Than 12 Months	0	5,113
Unrealized Losses, Less Than 12 Months	0	(76)
Fair Value, 12 Months or Longer	497,592	515,259
Unrealized Losses, 12 Months or Longer	(88,517)	(104,068)
Fair Value, Total	497,592	520,372
Unrealized Losses, Total	(88,517)	(104,144)
Collateralized mortgage obligations
Investment securities with unrealized losses
Fair Value, Less Than 12 Months	20,871	20,019
Unrealized Losses, Less Than 12 Months	(315)	(980)
Fair Value, 12 Months or Longer	49,258	43,808
Unrealized Losses, 12 Months or Longer	(5,170)	(5,579)
Fair Value, Total	70,129	63,827
Unrealized Losses, Total	(5,485)	(6,559)
Small Business Administration
Investment securities with unrealized losses
Fair Value, Less Than 12 Months	0	0
Unrealized Losses, Less Than 12 Months	0	0
Fair Value, 12 Months or Longer	2,625	2,917
Unrealized Losses, 12 Months or Longer	(197)	(295)
Fair Value, Total	2,625	2,917
Unrealized Losses, Total	$ (197)	$ (295)

XML

Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Schedule of loan balances
Total loans	$ 3,280,517		$ 3,198,127
Net deferred loan costs	10,481		8,757
Allowance for credit losses	(36,186)	$ (33,991)	(34,440)	$ (34,753)	$ (34,957)	$ (26,978)
NET LOANS	3,244,331		3,163,687
Commercial real estate - Owner occupied
Schedule of loan balances
Allowance for credit losses	(19,051)	(17,223)	(18,150)	(18,716)	(18,537)	(14,840)
Commercial
Schedule of loan balances
Allowance for credit losses	(4,615)	(4,628)	(5,087)	(5,102)	(5,295)	(4,186)
Residential real estate -1-4 family
Schedule of loan balances
Total loans	852,782		843,561
Allowance for credit losses	(7,549)	(7,422)	(6,916)	(6,734)	(6,866)	(4,374)
Consumer
Schedule of loan balances
Allowance for credit losses	(4,971)	$ (4,718)	(4,287)	$ (4,201)	$ (4,259)	$ (3,578)
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied
Schedule of loan balances
Total loans	396,740		399,028
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied
Schedule of loan balances
Total loans	684,164		711,795
Commercial real estate, Farmland | Commercial real estate - Owner occupied
Schedule of loan balances
Total loans	203,191		202,726
Commercial real estate, Other | Commercial real estate - Owner occupied
Schedule of loan balances
Total loans	290,400		223,777
Commercial, Commercial and industrial | Commercial
Schedule of loan balances
Total loans	359,835		347,819
Commercial, Agricultural | Commercial
Schedule of loan balances
Total loans	59,247		59,075
Residential real estate, 1-4 family residential | Residential real estate -1-4 family
Schedule of loan balances
Total loans	852,782		843,561
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family
Schedule of loan balances
Total loans	156,072		142,471
Consumer, Indirect | Consumer
Schedule of loan balances
Total loans	247,889		234,886
Consumer, Direct | Consumer
Schedule of loan balances
Total loans	20,442		23,825
Consumer, Other | Consumer
Schedule of loan balances
Total loans	9,755		9,164
Loans
Schedule of loan balances
Total loans	3,270,036		3,189,370
NET LOANS	1,993,577		1,944,220
Loans | Commercial real estate, Owner occupied | Commercial real estate - Owner occupied
Schedule of loan balances
Total loans	396,970		399,273
NET LOANS	396,740		399,028
Loans | Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied
Schedule of loan balances
Total loans	684,603		712,315
NET LOANS	684,164		711,795
Loans | Commercial real estate, Farmland | Commercial real estate - Owner occupied
Schedule of loan balances
Total loans	203,387		202,950
Loans | Commercial real estate, Other | Commercial real estate - Owner occupied
Schedule of loan balances
Total loans	290,801		224,218
NET LOANS	290,400		223,777
Loans | Commercial, Commercial and industrial | Commercial
Schedule of loan balances
Total loans	358,247		346,354
Loans | Commercial, Agricultural | Commercial
Schedule of loan balances
Total loans	58,386		58,338
NET LOANS	59,247		59,075
Loans | Residential real estate, 1-4 family residential | Residential real estate -1-4 family
Schedule of loan balances
Total loans	852,444		843,697
Loans | Residential real estate, Home equity lines of credit | Residential real estate -1-4 family
Schedule of loan balances
Total loans	155,967		142,441
Loans | Consumer, Indirect | Consumer
Schedule of loan balances
Total loans	239,075		226,815
Loans | Consumer, Direct | Consumer
Schedule of loan balances
Total loans	20,404		23,805
Loans | Consumer, Other | Consumer
Schedule of loan balances
Total loans	$ 9,752		$ 9,164

XML

Loans (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	$ 33,991	$ 34,957	$ 34,440	$ 26,978
PCD ACL on loans acquired		0		999
(Credit) Provision for credit losses	6,807	182	7,932	8,232
Loans charged off	(5,116)	(525)	(7,059)	(1,965)
Recoveries	504	139	873	509
Ending balance	36,186	34,753	36,186	34,753
Commercial real estate - Owner occupied
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	17,223	18,537	18,150	14,840
PCD ACL on loans acquired		0		850
(Credit) Provision for credit losses	6,226	182	5,427	3,185
Loans charged off	(4,401)	(3)	(4,547)	(160)
Recoveries	3	0	21	1
Ending balance	19,051	18,716	19,051	18,716
Commercial
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	4,628	5,295	5,087	4,186
PCD ACL on loans acquired		0		138
(Credit) Provision for credit losses	(24)	(45)	466	1,638
Loans charged off	(396)	(154)	(1,411)	(888)
Recoveries	407	6	473	28
Ending balance	4,615	5,102	4,615	5,102
Residential real estate -1-4 family
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	7,422	6,866	6,916	4,374
PCD ACL on loans acquired		0		11
(Credit) Provision for credit losses	117	13	676	2,542
Loans charged off	0	(157)	(81)	(251)
Recoveries	10	12	38	58
Ending balance	7,549	6,734	7,549	6,734
Consumer
Financing Receivable Allowance For Credit Losses [Line Items]
Beginning balance	4,718	4,259	4,287	3,578
PCD ACL on loans acquired		0		0
(Credit) Provision for credit losses	488	32	1,363	867
Loans charged off	(319)	(211)	(1,020)	(666)
Recoveries	84	121	341	422
Ending balance	$ 4,971	$ 4,201	$ 4,971	$ 4,201

XML

Loans (Details 2) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	$ 4,543	$ 5,052
Nonaccrual with an allowance for credit loss	14,442	7,728
Loans Past Due 90 Days or More Still Accruing	91	655
Commercial real estate, Non-owner occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss		1,630
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	0	1,630
Originated Loans | Commercial real estate, Owner occupied | Commercial real estate - Owner occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	1,576	1,804
Nonaccrual with an allowance for credit loss	852	830
Loans Past Due 90 Days or More Still Accruing	0	0
Originated Loans | Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	0	19
Nonaccrual with an allowance for credit loss	8,105	1,491
Loans Past Due 90 Days or More Still Accruing	0	0
Originated Loans | Commercial real estate, Farmland | Commercial real estate - Owner occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	1,789	1,957
Nonaccrual with an allowance for credit loss	5	9
Loans Past Due 90 Days or More Still Accruing	0	0
Originated Loans | Commercial real estate, Other | Commercial real estate - Owner occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	0	0
Nonaccrual with an allowance for credit loss	0	80
Loans Past Due 90 Days or More Still Accruing	0	0
Originated Loans | Commercial, Commercial and industrial | Commercial
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	224	394
Nonaccrual with an allowance for credit loss	1,027	1,408
Loans Past Due 90 Days or More Still Accruing	0	0
Originated Loans | Commercial, Agricultural | Commercial
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	179	203
Nonaccrual with an allowance for credit loss	237	317
Loans Past Due 90 Days or More Still Accruing	0	0
Originated Loans | Residential real estate, 1-4 family residential | Residential real estate -1-4 family
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	526	348
Nonaccrual with an allowance for credit loss	3,489	3,009
Loans Past Due 90 Days or More Still Accruing	91	460
Originated Loans | Residential real estate, Home equity lines of credit | Residential real estate -1-4 family
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	96	240
Nonaccrual with an allowance for credit loss	146	210
Loans Past Due 90 Days or More Still Accruing	0	69
Originated Loans | Consumer, Indirect | Consumer
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	87	22
Nonaccrual with an allowance for credit loss	500	300
Loans Past Due 90 Days or More Still Accruing	0	125
Originated Loans | Consumer, Direct | Consumer
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	66	65
Nonaccrual with an allowance for credit loss	75	69
Loans Past Due 90 Days or More Still Accruing	0	1
Originated Loans | Consumer, Other | Consumer
Financing Receivable Recorded Investment Past Due [Line Items]
Nonaccrual with no allowance for credit loss	0	0
Nonaccrual with an allowance for credit loss	6	5
Loans Past Due 90 Days or More Still Accruing	$ 0	$ 0

XML

Loans (Details 3) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans	$ 3,280,517	$ 3,198,127
Real Estate
Financing Receivable, Past Due [Line Items]
Loans	15,834	8,836
Business Assets
Financing Receivable, Past Due [Line Items]
Loans	324	1,070
Vehicles
Financing Receivable, Past Due [Line Items]
Loans	135	72
Cash
Financing Receivable, Past Due [Line Items]
Loans	66	66
Residential real estate -1-4 family
Financing Receivable, Past Due [Line Items]
Loans	852,782	843,561
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied
Financing Receivable, Past Due [Line Items]
Loans	396,740	399,028
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	1,576	1,804
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Cash
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied
Financing Receivable, Past Due [Line Items]
Loans	684,164	711,795
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	8,119	1,335
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Cash
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Farmland | Commercial real estate - Owner occupied
Financing Receivable, Past Due [Line Items]
Loans	203,191	202,726
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	1,789	1,957
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Cash
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Other | Commercial real estate - Owner occupied
Financing Receivable, Past Due [Line Items]
Loans	290,400	223,777
Commercial real estate, Other | Commercial real estate - Owner occupied | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Other | Commercial real estate - Owner occupied | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Other | Commercial real estate - Owner occupied | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate, Other | Commercial real estate - Owner occupied | Cash
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial, Commercial and industrial | Commercial
Financing Receivable, Past Due [Line Items]
Loans	359,835	347,819
Commercial, Commercial and industrial | Commercial | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	79	94
Commercial, Commercial and industrial | Commercial | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	145	867
Commercial, Commercial and industrial | Commercial | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial, Commercial and industrial | Commercial | Cash
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial, Agricultural | Commercial
Financing Receivable, Past Due [Line Items]
Loans	59,247	59,075
Commercial, Agricultural | Commercial | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial, Agricultural | Commercial | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	179	203
Commercial, Agricultural | Commercial | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial, Agricultural | Commercial | Cash
Financing Receivable, Past Due [Line Items]
Loans	0	0
Residential real estate, 1-4 family residential | Residential real estate -1-4 family
Financing Receivable, Past Due [Line Items]
Loans	852,782	843,561
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	4,001	3,352
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	0	0
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	0	0
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Cash
Financing Receivable, Past Due [Line Items]
Loans	0	0
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family
Financing Receivable, Past Due [Line Items]
Loans	156,072	142,471
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	270	294
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	0	0
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	0	0
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Cash
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer, Indirect | Consumer
Financing Receivable, Past Due [Line Items]
Loans	247,889	234,886
Consumer, Indirect | Consumer | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer, Indirect | Consumer | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer, Indirect | Consumer | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	123	53
Consumer, Indirect | Consumer | Cash
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer, Direct | Consumer
Financing Receivable, Past Due [Line Items]
Loans	20,442	23,825
Consumer, Direct | Consumer | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer, Direct | Consumer | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer, Direct | Consumer | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	12	19
Consumer, Direct | Consumer | Cash
Financing Receivable, Past Due [Line Items]
Loans	66	66
Consumer, Other | Consumer
Financing Receivable, Past Due [Line Items]
Loans	9,755	9,164
Consumer, Other | Consumer | Real Estate
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer, Other | Consumer | Business Assets
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer, Other | Consumer | Vehicles
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer, Other | Consumer | Cash
Financing Receivable, Past Due [Line Items]
Loans	$ 0	$ 0

XML

Loans (Details 4) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	$ 3,280,517	$ 3,198,127
Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	15,834	8,836
Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	324	1,070
Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	135	72
Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	66	66
Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	11,922	11,339
Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	3,640	5,366
Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	19,076	13,435
Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	34,638	30,140
Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	3,245,879	3,167,987
Residential real estate -1-4 family
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	852,782	843,561
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	396,740	399,028
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	1,576	1,804
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	706	302
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	448	293
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	2,428	2,634
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	3,582	3,229
Commercial real estate, Owner occupied | Commercial real estate - Owner occupied | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	393,158	395,799
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	684,164	711,795
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	8,119	1,335
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	3,166	90
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	8,105	1,510
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	11,271	1,600
Commercial real estate, Non-owner occupied | Commercial real estate - Owner occupied | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	672,893	710,195
Commercial real estate, Farmland | Commercial real estate - Owner occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	203,191	202,726
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	1,789	1,957
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	365
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	1,794	1,966
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	1,794	2,331
Commercial real estate, Farmland | Commercial real estate - Owner occupied | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	201,397	200,395
Commercial real estate, Other | Commercial real estate - Owner occupied
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	290,400	223,777
Commercial real estate, Other | Commercial real estate - Owner occupied | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Other | Commercial real estate - Owner occupied | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Other | Commercial real estate - Owner occupied | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Other | Commercial real estate - Owner occupied | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Other | Commercial real estate - Owner occupied | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial real estate, Other | Commercial real estate - Owner occupied | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	639	0
Commercial real estate, Other | Commercial real estate - Owner occupied | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	80
Commercial real estate, Other | Commercial real estate - Owner occupied | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	639	80
Commercial real estate, Other | Commercial real estate - Owner occupied | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	289,761	223,697
Commercial, Commercial and industrial | Commercial
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	359,835	347,819
Commercial, Commercial and industrial | Commercial | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	79	94
Commercial, Commercial and industrial | Commercial | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	145	867
Commercial, Commercial and industrial | Commercial | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial, Commercial and industrial | Commercial | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial, Commercial and industrial | Commercial | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	240	540
Commercial, Commercial and industrial | Commercial | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	281	199
Commercial, Commercial and industrial | Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	1,251	1,802
Commercial, Commercial and industrial | Commercial | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	1,772	2,541
Commercial, Commercial and industrial | Commercial | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	358,063	345,278
Commercial, Agricultural | Commercial
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	59,247	59,075
Commercial, Agricultural | Commercial | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial, Agricultural | Commercial | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	179	203
Commercial, Agricultural | Commercial | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial, Agricultural | Commercial | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Commercial, Agricultural | Commercial | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	324	292
Commercial, Agricultural | Commercial | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	115	40
Commercial, Agricultural | Commercial | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	416	520
Commercial, Agricultural | Commercial | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	855	852
Commercial, Agricultural | Commercial | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	58,392	58,223
Residential real estate, 1-4 family residential | Residential real estate -1-4 family
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	852,782	843,561
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	4,001	3,352
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	5,367	6,819
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	1,542	4,488
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	4,106	3,817
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	11,015	15,124
Residential real estate, 1-4 family residential | Residential real estate -1-4 family | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	841,767	828,437
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	156,072	142,471
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	270	294
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	672	729
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	92	34
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	242	519
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	1,006	1,282
Residential real estate, Home equity lines of credit | Residential real estate -1-4 family | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	155,066	141,189
Consumer, Indirect | Consumer
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	247,889	234,886
Consumer, Indirect | Consumer | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Consumer, Indirect | Consumer | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Consumer, Indirect | Consumer | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	123	53
Consumer, Indirect | Consumer | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Consumer, Indirect | Consumer | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	1,285	2,045
Consumer, Indirect | Consumer | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	512	289
Consumer, Indirect | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	587	447
Consumer, Indirect | Consumer | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	2,384	2,781
Consumer, Indirect | Consumer | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	245,505	232,105
Consumer, Direct | Consumer
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	20,442	23,825
Consumer, Direct | Consumer | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Consumer, Direct | Consumer | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Consumer, Direct | Consumer | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	12	19
Consumer, Direct | Consumer | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	66	66
Consumer, Direct | Consumer | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	62	153
Consumer, Direct | Consumer | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	11	23
Consumer, Direct | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	141	135
Consumer, Direct | Consumer | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	214	311
Consumer, Direct | Consumer | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	20,228	23,514
Consumer, Other | Consumer
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	9,755	9,164
Consumer, Other | Consumer | Real Estate
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Consumer, Other | Consumer | Business Assets
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Consumer, Other | Consumer | Vehicles
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Consumer, Other | Consumer | Cash
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Consumer, Other | Consumer | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	100	4
Consumer, Other | Consumer | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	0	0
Consumer, Other | Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	6	5
Consumer, Other | Consumer | Financing Receivables, Total Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	106	9
Consumer, Other | Consumer | Loans Not Past Due
Financing Receivable Recorded Investment Past Due [Line Items]
Loans	$ 9,649	$ 9,155

XML

Loan Restructurings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Payment Deferral
Financing Receivable Modifications [Line Items]
Amortized Cost Basis		$ 0	$ 0	$ 50
Principal Forgiveness
Financing Receivable Modifications [Line Items]
Amortized Cost Basis		0	0	0
Interest Rate Reduction
Financing Receivable Modifications [Line Items]
Amortized Cost Basis		31	29	31
Combination Term Extension and Interest Rate Reduction
Financing Receivable Modifications [Line Items]
Amortized Cost Basis		133	20	133
Commercial | Commercial, Commercial and industrial
Financing Receivable Modifications [Line Items]
Amortized Cost Basis				$ 50
% of Total class of Financing receivable				0.01%
Commercial | Commercial, Commercial and industrial | Payment Deferral
Financing Receivable Modifications [Line Items]
Amortized Cost Basis				$ 50
Commercial | Commercial, Commercial and industrial | Principal Forgiveness
Financing Receivable Modifications [Line Items]
Amortized Cost Basis				0
Commercial | Commercial, Commercial and industrial | Interest Rate Reduction
Financing Receivable Modifications [Line Items]
Amortized Cost Basis				0
Commercial | Commercial, Commercial and industrial | Combination Term Extension and Interest Rate Reduction
Financing Receivable Modifications [Line Items]
Amortized Cost Basis				0
Residential Real Estate
Financing Receivable Modifications [Line Items]
Amortized Cost Basis		$ 164	$ 49	$ 214
% of Total class of Financing receivable		0.01%	0.00%	0.01%
Residential Real Estate | Payment Deferral
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	$ 0		$ 0
Residential Real Estate | Interest Rate Reduction
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	29		29
Residential Real Estate | Term Extension
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	37		37
Residential Real Estate | Combination Term Extension and Interest Rate Reduction
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	20		20
Residential Real Estate | Residential real estate, 1-4 family residential
Financing Receivable Modifications [Line Items]
Amortized Cost Basis		$ 164		$ 164
% of Total class of Financing receivable		0.02%		0.02%
Residential Real Estate | Residential real estate, 1-4 family residential | Payment Deferral
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	0	$ 0	0	$ 0
Residential Real Estate | Residential real estate, 1-4 family residential | Principal Forgiveness
Financing Receivable Modifications [Line Items]
Amortized Cost Basis		0		0
Residential Real Estate | Residential real estate, 1-4 family residential | Interest Rate Reduction
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	0	31	0	31
Residential Real Estate | Residential real estate, 1-4 family residential | Term Extension
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	37		37
Residential Real Estate | Residential real estate, 1-4 family residential | Combination Term Extension and Interest Rate Reduction
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	0	$ 133	0	$ 133
Residential Real Estate | Residential real estate, Home equity lines of credit
Financing Receivable Modifications [Line Items]
Amortized Cost Basis			$ 49
% of Total class of Financing receivable			0.03%
Residential Real Estate | Residential real estate, Home equity lines of credit | Payment Deferral
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	0		$ 0
Residential Real Estate | Residential real estate, Home equity lines of credit | Principal Forgiveness
Financing Receivable Modifications [Line Items]
Amortized Cost Basis			0
Residential Real Estate | Residential real estate, Home equity lines of credit | Interest Rate Reduction
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	29		29
Residential Real Estate | Residential real estate, Home equity lines of credit | Term Extension
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	0		0
Residential Real Estate | Residential real estate, Home equity lines of credit | Combination Term Extension and Interest Rate Reduction
Financing Receivable Modifications [Line Items]
Amortized Cost Basis	$ 20		$ 20

XML

Loan Restructurings (Details 1) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Commercial | Commercial, Commercial and industrial | Payment Deferral
Financing Receivable, Modified [Line Items]
Weighted-Average Years Added to the Life			6 months
Residential Real Estate | Residential real estate, 1-4 family residential | Interest Rate Reduction | Maximum
Financing Receivable, Modified [Line Items]
Weighted-Average Contractual Interest Rate	4.77%		4.77%
Residential Real Estate | Residential real estate, 1-4 family residential | Interest Rate Reduction | Minimum
Financing Receivable, Modified [Line Items]
Weighted-Average Contractual Interest Rate	3.38%		3.38%
Residential Real Estate | Residential real estate, 1-4 family residential | Term Extension
Financing Receivable, Modified [Line Items]
Reduction of Amortized Cost Basis of the Loans	$ 5		$ 5
Residential Real Estate | Residential real estate, Home equity lines of credit | Interest Rate Reduction | Maximum
Financing Receivable, Modified [Line Items]
Weighted-Average Contractual Interest Rate		10.45%
Residential Real Estate | Residential real estate, Home equity lines of credit | Interest Rate Reduction | Minimum
Financing Receivable, Modified [Line Items]
Weighted-Average Contractual Interest Rate		5.91%
Residential Real Estate | Residential real estate, Home equity lines of credit | Term Extension
Financing Receivable, Modified [Line Items]
Weighted-Average Years Added to the Life		10 years

XML

Loan Restructurings (Details 2) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Current
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	$ 164	$ 0	$ 214
30-89 Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	0	20	0
90+ Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	0	29	0
Commercial | Commercial, Commercial and industrial
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)			50
Residential Real Estate
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	164	49	214
Residential Real Estate | Residential real estate, 1-4 family residential
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	164		164
Accruing restructured loans | Current
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	164	0	214
Accruing restructured loans | 30-89 Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	0	20	0
Accruing restructured loans | 90+ Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	0	0	0
Accruing restructured loans | Commercial | Commercial, Commercial and industrial | Current
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)			50
Accruing restructured loans | Commercial | Commercial, Commercial and industrial | 30-89 Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)			0
Accruing restructured loans | Commercial | Commercial, Commercial and industrial | 90+ Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)			0
Accruing restructured loans | Residential Real Estate | Residential real estate, 1-4 family residential | Current
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	164		164
Accruing restructured loans | Residential Real Estate | Residential real estate, 1-4 family residential | 30-89 Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	0		0
Accruing restructured loans | Residential Real Estate | Residential real estate, 1-4 family residential | 90+ Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)	$ 0		0
Accruing restructured loans | Residential Real Estate | Residential real estate, Home equity lines of credit | Current
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)		0
Accruing restructured loans | Residential Real Estate | Residential real estate, Home equity lines of credit | 30-89 Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)		20
Accruing restructured loans | Residential Real Estate | Residential real estate, Home equity lines of credit | 90+ Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)		0
Nonaccrual restructured loans | Current
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)		0	0
Nonaccrual restructured loans | 30-89 Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)		0	0
Nonaccrual restructured loans | 90+ Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)		29	$ 0
Nonaccrual restructured loans | Residential Real Estate | Residential real estate, Home equity lines of credit | Current
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)		0
Nonaccrual restructured loans | Residential Real Estate | Residential real estate, Home equity lines of credit | 30-89 Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)		0
Nonaccrual restructured loans | Residential Real Estate | Residential real estate, Home equity lines of credit | 90+ Days Past due
Financing Receivable Modifications [Line Items]
Payment status (Amortized cost Basis)		$ 29

XML

Loan Restructurings (Details Textual) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2023	Sep. 30, 2024
Financing Receivable Modifications [Line Items]
Commitments to lend any additional funds on restructured loans			$ 0
Loans modified as default	$ 0	$ 0
ASU 2022-02
Financing Receivable Modifications [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]			true
Change in accounting principle, accounting standards update, adoption date			Jan. 01, 2023

XML

Credit Quality Indicators (Details Textual) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Sep. 30, 2024	Dec. 31, 2023	Jun. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Financing Receivable Recorded Investment [Line Items]
Maximum commercial loan and commercial real estate relationships	$ 3,000,000	$ 3,000,000
Unfunded commitments		681,000,000	$ 753,000,000
Anticipated credit losses		1,580,000	1,840,000
Increase Decrease Unfunded Commitments	72,000,000
ACL Balance	36,186,000	36,186,000	34,440,000	$ 33,991,000	$ 34,753,000	$ 34,957,000	$ 26,978,000
Increase in allowance for credit loss		1,800,000
Provision For Anticipated Credit Losses	261,000
Nonaccrual with no allowance for credit loss	$ 4,543,000	$ 4,543,000	5,052,000
ASU 2016-13
Financing Receivable Recorded Investment [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]	true	true
Residential real estate, 1-4 family residential
Financing Receivable Recorded Investment [Line Items]
Other real estate owned properties	$ 0	$ 0	92,000
Other real estate properties in foreclosure	$ 361,000	$ 361,000	207,000
Commercial real estate, Non-owner occupied
Financing Receivable Recorded Investment [Line Items]
Nonaccrual with no allowance for credit loss			$ 1,630,000

XML

Credit Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	$ 3,244,331	$ 3,163,687
Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	1,993,577	1,944,220
Pass | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	1,911,465	1,843,047
Special Mention | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	16,228	38,229
Substandard | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	64,709	62,944
Doubtful | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	1,175
Commercial real estate - Owner occupied | Commercial real estate, Owner occupied | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	396,740	399,028
Commercial real estate - Owner occupied | Commercial real estate, Owner occupied | Pass | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	385,103	386,015
Commercial real estate - Owner occupied | Commercial real estate, Owner occupied | Special Mention | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	4,908	9,628
Commercial real estate - Owner occupied | Commercial real estate, Owner occupied | Substandard | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	6,729	3,385
Commercial real estate - Owner occupied | Commercial real estate, Owner occupied | Doubtful | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	0
Commercial real estate - Owner occupied | Commercial real estate, Non-owner occupied | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	684,164	711,795
Commercial real estate - Owner occupied | Commercial real estate, Non-owner occupied | Pass | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	637,248	648,063
Commercial real estate - Owner occupied | Commercial real estate, Non-owner occupied | Special Mention | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	9,976	27,938
Commercial real estate - Owner occupied | Commercial real estate, Non-owner occupied | Substandard | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	35,765	35,794
Commercial real estate - Owner occupied | Commercial real estate, Non-owner occupied | Doubtful | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	1,175
Commercial real estate - Owner occupied | Commercial farmland | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	203,191	202,726
Commercial real estate - Owner occupied | Commercial farmland | Pass | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	200,902	200,240
Commercial real estate - Owner occupied | Commercial farmland | Special Mention | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	0	0
Commercial real estate - Owner occupied | Commercial farmland | Substandard | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	2,289	2,486
Commercial real estate - Owner occupied | Commercial farmland | Doubtful | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	0
Commercial real estate - Owner occupied | Commercial real estate, Other | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	290,400	223,777
Commercial real estate - Owner occupied | Commercial real estate, Other | Pass | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	280,656	215,459
Commercial real estate - Owner occupied | Commercial real estate, Other | Special Mention | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	1,106	0
Commercial real estate - Owner occupied | Commercial real estate, Other | Substandard | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	8,638	8,318
Commercial real estate - Owner occupied | Commercial real estate, Other | Doubtful | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	0
Commercial | Commercial and industrial | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	359,835	347,819
Commercial | Commercial and industrial | Pass | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	348,796	334,764
Commercial | Commercial and industrial | Special Mention | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	171	646
Commercial | Commercial and industrial | Substandard | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	10,868	12,409
Commercial | Commercial and industrial | Doubtful | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	0
Commercial | Commercial, Agricultural | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	59,247	59,075
Commercial | Commercial, Agricultural | Pass | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	58,760	58,506
Commercial | Commercial, Agricultural | Special Mention | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	67	17
Commercial | Commercial, Agricultural | Substandard | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	420	$ 552
Commercial | Commercial, Agricultural | Doubtful | Loans
Financing Receivable Recorded Investment [Line Items]
Total risk category of loans by class of loans	$ 0

XML

Credit Quality Indicators (Details 1) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable Recorded Investment [Line Items]
Loans	$ 3,280,517	$ 3,198,127
Residential real estate -1-4 family
Financing Receivable Recorded Investment [Line Items]
Loans	852,782	843,561
Residential real estate -1-4 family | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	848,676	839,744
Residential real estate -1-4 family | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	4,106	3,817
Residential real estate -1-4 family | Residential real estate, 1-4 family residential
Financing Receivable Recorded Investment [Line Items]
Loans	852,782	843,561
Residential real estate -1-4 family | Residential real estate, 1-4 family residential | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	848,676	839,744
Residential real estate -1-4 family | Residential real estate, 1-4 family residential | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	4,106	3,817
Residential real estate -1-4 family | Residential real estate, Home equity lines of credit
Financing Receivable Recorded Investment [Line Items]
Loans	156,072	142,471
Residential real estate -1-4 family | Residential real estate, Home equity lines of credit | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	155,830	141,952
Residential real estate -1-4 family | Residential real estate, Home equity lines of credit | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	242	519
Consumer | Consumer, Indirect
Financing Receivable Recorded Investment [Line Items]
Loans	247,889	234,886
Consumer | Consumer, Indirect | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	247,302	234,439
Consumer | Consumer, Indirect | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	587	447
Consumer | Consumer, Direct
Financing Receivable Recorded Investment [Line Items]
Loans	20,442	23,825
Consumer | Consumer, Direct | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	20,301	23,690
Consumer | Consumer, Direct | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	141	135
Consumer | Consumer, Other
Financing Receivable Recorded Investment [Line Items]
Loans	9,755	9,164
Consumer | Consumer, Other | Performing Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	9,749	9,159
Consumer | Consumer, Other | Nonperforming Financing Receivable
Financing Receivable Recorded Investment [Line Items]
Loans	$ 6	$ 5

XML

Credit Quality Indicators (Details 2) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financing Receivable Recorded Investment [Line Items]
Total	$ 3,280,517	$ 3,198,127
Commercial real estate - Owner occupied
Financing Receivable Recorded Investment [Line Items]
Gross write-offs, 2024	0	0
Gross write-offs, 2023	0	0
Gross write-offs, 2022	0	0
Gross write-offs, 2021	0	0
Gross write-offs, 2020	21	1
Gross write-offs, Prior	0	0
Gross write-offs, Revolving Loans	0	0
Gross write-offs	21	1
Commercial real estate, Owner occupied
Financing Receivable Recorded Investment [Line Items]
2024	34,754	57,983
2023	58,869	58,471
2022	52,058	66,205
2021	62,911	50,812
2020	47,792	49,339
Prior	137,604	113,088
Revolving Loans	2,752	3,130
Total	396,740	399,028
Commercial real estate, Owner occupied | Pass
Financing Receivable Recorded Investment [Line Items]
2024	11,476	57,983
2023	22,178	58,178
2022	39,688	66,205
2021	19,790	42,023
2020	47,164	48,849
Prior	72,989	109,831
Revolving Loans	2,702	2,946
Total	200,902	386,015
Commercial real estate, Owner occupied | Special Mention
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	3,250	293
2022	0	0
2021	1,130	8,779
2020	0	0
Prior	528	556
Revolving Loans	0	0
Total	4,908	9,628
Commercial real estate, Owner occupied | Substandard
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	0	0
2022	2,313	0
2021	0	10
2020	628	490
Prior	3,600	2,701
Revolving Loans	188	184
Total	6,729	3,385
Commercial real estate - Other
Financing Receivable Recorded Investment [Line Items]
2024	37,595	68,911
2023	102,459	56,753
2022	70,158	47,895
2021	46,334	17,249
2020	8,595	8,516
Prior	24,660	23,401
Revolving Loans	599	1,052
Total	290,400	223,777
Commercial real estate - Other | Pass
Financing Receivable Recorded Investment [Line Items]
2024	28,993	68,911
2023	101,466	56,753
2022	70,158	47,895
2021	46,221	9,063
2020	8,595	8,516
Prior	24,624	23,269
Revolving Loans	599	1,052
Total	280,656	215,459
Commercial real estate - Other | Special Mention
Financing Receivable Recorded Investment [Line Items]
2024	0
2023	993
2022	0
2021	113
2020	0
Prior	0
Revolving Loans	0
Total	1,106
Commercial real estate - Other | Substandard
Financing Receivable Recorded Investment [Line Items]
2024	8,602	0
2023	0	0
2022	0	0
2021	0	8,186
2020	0	0
Prior	36	132
Revolving Loans	0	0
Total	8,638	8,318
Commercial real estate - Non-owner occupied
Financing Receivable Recorded Investment [Line Items]
2024	36,121	49,177
2023	48,082	135,433
2022	133,644	104,316
2021	93,846	87,750
2020	80,480	91,136
Prior	284,535	232,740
Revolving Loans	7,456	11,243
Total	684,164	711,795
Gross write-offs, 2024	0	0
Gross write-offs, 2023	0	0
Gross write-offs, 2022	0	0
Gross write-offs, 2021	4,380	0
Gross write-offs, 2020	146	144
Gross write-offs, Prior	0	201
Gross write-offs, Revolving Loans	0	0
Gross write-offs	4,526	345
Commercial real estate - Non-owner occupied | Pass
Financing Receivable Recorded Investment [Line Items]
2024	28,980	49,177
2023	47,673	135,433
2022	133,108	88,188
2021	81,447	77,713
2020	73,555	81,079
Prior	265,029	205,729
Revolving Loans	7,456	10,744
Total	637,248	648,063
Commercial real estate - Non-owner occupied | Special Mention
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	0	0
2022	536	12,156
2021	314	0
2020	0	6,565
Prior	9,126	9,217
Revolving Loans	0	0
Total	9,976	27,938
Commercial real estate - Non-owner occupied | Substandard
Financing Receivable Recorded Investment [Line Items]
2024	7,141	0
2023	409	0
2022	0	3,972
2021	10,910	10,037
2020	6,925	3,492
Prior	10,380	17,794
Revolving Loans	0	499
Total	35,765	35,794
Commercial real estate - Non-owner occupied | Doubtful
Financing Receivable Recorded Investment [Line Items]
2024	0
2023	0
2022	0
2021	1,175
2020	0
Prior	0
Revolving Loans	0
Total	1,175
Commercial and industrial
Financing Receivable Recorded Investment [Line Items]
2024	59,682	91,002
2023	87,367	88,947
2022	65,670	41,779
2021	30,299	22,219
2020	13,729	10,813
Prior	25,088	23,729
Revolving Loans	78,000	69,330
Total	359,835	347,819
Gross write-offs, 2024	0	0
Gross write-offs, 2023	231	178
Gross write-offs, 2022	284	579
Gross write-offs, 2021	104	11
Gross write-offs, 2020	220	16
Gross write-offs, Prior	164	394
Gross write-offs, Revolving Loans	313	0
Gross write-offs	1,316	1,178
Commercial and industrial | Pass
Financing Receivable Recorded Investment [Line Items]
2024	59,602	90,807
2023	87,280	85,255
2022	59,819	40,444
2021	29,847	21,794
2020	13,538	9,736
Prior	23,284	23,030
Revolving Loans	75,426	63,698
Total	348,796	334,764
Commercial and industrial | Special Mention
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	0	141
2022	0	355
2021	171	21
2020	0	0
Prior	0	0
Revolving Loans	0	129
Total	171	646
Commercial and industrial | Substandard
Financing Receivable Recorded Investment [Line Items]
2024	80	195
2023	87	3,551
2022	5,851	980
2021	281	404
2020	191	1,077
Prior	1,804	699
Revolving Loans	2,574	5,503
Total	10,868	12,409
Commercial real estates - Farmland
Financing Receivable Recorded Investment [Line Items]
2024	11,476	22,576
2023	22,178	40,101
2022	39,688	21,220
2021	20,109	34,036
2020	32,079	18,660
Prior	74,959	62,030
Revolving Loans	2,702	4,103
Total	203,191	202,726
Gross write-offs, 2024		0
Gross write-offs, 2023		0
Gross write-offs, 2022		0
Gross write-offs, 2021		0
Gross write-offs, 2020		0
Gross write-offs, Prior		3
Gross write-offs, Revolving Loans		0
Gross write-offs		3
Commercial real estates - Farmland | Pass
Financing Receivable Recorded Investment [Line Items]
2024	34,754	22,576
2023	55,619	40,101
2022	49,745	20,890
2021	61,781	34,036
2020	32,079	18,634
Prior	133,476	59,900
Revolving Loans	2,564	4,103
Total	385,103	200,240
Commercial real estates - Farmland | Substandard
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	0	0
2022	0	330
2021	319	0
2020	0	26
Prior	1,970	2,130
Revolving Loans	0	0
Total	2,289	2,486
Commercial - Agricultural
Financing Receivable Recorded Investment [Line Items]
2024	7,691	13,738
2023	12,503	17,401
2022	14,471	9,035
2021	6,415	3,809
2020	2,388	1,410
Prior	1,291	1,285
Revolving Loans	14,488	12,397
Total	59,247	59,075
Gross write-offs, 2024	0	0
Gross write-offs, 2023	0	15
Gross write-offs, 2022	36	70
Gross write-offs, 2021	13	3
Gross write-offs, 2020	29	0
Gross write-offs, Prior	17	6
Gross write-offs, Revolving Loans	0	0
Gross write-offs	95	94
Commercial - Agricultural | Pass
Financing Receivable Recorded Investment [Line Items]
2024	7,691	13,738
2023	12,502	17,368
2022	14,426	8,917
2021	6,352	3,584
2020	2,216	1,386
Prior	1,152	1,133
Revolving Loans	14,421	12,380
Total	58,760	58,506
Commercial - Agricultural | Special Mention
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	0	0
Revolving Loans	67	17
Total	67	17
Commercial - Agricultural | Substandard
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	1	33
2022	45	118
2021	63	225
2020	172	24
Prior	139	152
Revolving Loans	0	0
Total	420	552
Residential real estate -1-4 family
Financing Receivable Recorded Investment [Line Items]
2024	62,632	63,402
2023	71,869	171,920
2022	161,624	164,781
2021	157,964	134,634
2020	125,675	49,495
Prior	269,761	255,677
Revolving Loans	3,257	3,652
Total	852,782	843,561
Gross write-offs, 2024	0	52
Gross write-offs, 2023	0	0
Gross write-offs, 2022	0	49
Gross write-offs, 2021	17	130
Gross write-offs, 2020	0	0
Gross write-offs, Prior	64	129
Gross write-offs, Revolving Loans	0	0
Gross write-offs	81	360
Residential real estate -1-4 family | Nonperforming Financial Instruments [Member]
Financing Receivable Recorded Investment [Line Items]
2024	0	37
2023	0	58
2022	24	312
2021	299	1,645
2020	1,920	115
Prior	1,863	1,650
Revolving Loans	0	0
Total	4,106	3,817
Residential real estate -1-4 family | Performing Financial Instruments [Member]
Financing Receivable Recorded Investment [Line Items]
2024	62,632	63,365
2023	71,869	171,862
2022	161,600	164,469
2021	157,665	132,989
2020	123,755	49,380
Prior	267,898	254,027
Revolving Loans	3,257	3,652
Total	848,676	839,744
Residential real estate - Home equity lines of credit
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	166	45
2022	90	27
2021	169	126
2020	95	51
Prior	4,652	3,767
Revolving Loans	150,900	138,455
Total	156,072	142,471
Gross write-offs, 2024		0
Gross write-offs, 2023		0
Gross write-offs, 2022		0
Gross write-offs, 2021		8
Gross write-offs, 2020		0
Gross write-offs, Prior		16
Gross write-offs, Revolving Loans		0
Gross write-offs		24
Residential real estate - Home equity lines of credit | Nonperforming Financial Instruments [Member]
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	0	26
2022	29	13
2021	0	15
2020	0	0
Prior	161	465
Revolving Loans	52	0
Total	242	519
Residential real estate - Home equity lines of credit | Performing Financial Instruments [Member]
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	166	19
2022	61	14
2021	169	111
2020	95	51
Prior	4,491	3,302
Revolving Loans	150,848	138,455
Total	155,830	141,952
Consumer - Direct
Financing Receivable Recorded Investment [Line Items]
2024	2,246	3,552
2023	2,548	3,829
2022	2,741	2,203
2021	1,524	1,417
2020	972	974
Prior	10,064	11,484
Revolving Loans	347	366
Total	20,442	23,825
Gross write-offs, 2024	0	11
Gross write-offs, 2023	7	38
Gross write-offs, 2022	29	22
Gross write-offs, 2021	5	51
Gross write-offs, 2020	5	9
Gross write-offs, Prior	91	100
Gross write-offs, Revolving Loans	0	0
Gross write-offs	137	231
Consumer - Direct | Nonperforming Financial Instruments [Member]
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	9	17
2022	6	0
2021	35	65
2020	66	0
Prior	25	53
Revolving Loans	0	0
Total	141	135
Consumer - Direct | Performing Financial Instruments [Member]
Financing Receivable Recorded Investment [Line Items]
2024	2,246	3,552
2023	2,539	3,812
2022	2,735	2,203
2021	1,489	1,352
2020	906	974
Prior	10,039	11,431
Revolving Loans	347	366
Total	20,301	23,690
Consumer - Indirect
Financing Receivable Recorded Investment [Line Items]
2024	68,575	74,479
2023	60,209	71,813
2022	54,722	32,666
2021	25,401	21,248
2020	15,888	11,421
Prior	23,094	23,259
Revolving Loans	0	0
Total	247,889	234,886
Gross write-offs, 2024	10	33
Gross write-offs, 2023	65	138
Gross write-offs, 2022	89	71
Gross write-offs, 2021	150	35
Gross write-offs, 2020	93	23
Gross write-offs, Prior	336	232
Gross write-offs, Revolving Loans	0	0
Gross write-offs	743	532
Consumer - Indirect | Nonperforming Financial Instruments [Member]
Financing Receivable Recorded Investment [Line Items]
2024	0	54
2023	81	108
2022	189	138
2021	153	85
2020	68	26
Prior	96	36
Revolving Loans	0	0
Total	587	447
Consumer - Indirect | Performing Financial Instruments [Member]
Financing Receivable Recorded Investment [Line Items]
2024	68,575	74,425
2023	60,128	71,705
2022	54,533	32,528
2021	25,248	21,163
2020	15,820	11,395
Prior	22,998	23,223
Revolving Loans	0	0
Total	247,302	234,439
Consumer - Other
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	0	0
2022	0	60
2021	60	103
2020	100	82
Prior	376	283
Revolving Loans	9,219	8,636
Total	9,755	9,164
Gross write-offs, 2024	0	0
Gross write-offs, 2023	0	0
Gross write-offs, 2022	1	0
Gross write-offs, 2021	0	0
Gross write-offs, 2020	0	0
Gross write-offs, Prior	139	20
Gross write-offs, Revolving Loans	0	149
Gross write-offs	140	169
Consumer - Other | Nonperforming Financial Instruments [Member]
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	0	0
2022	0	0
2021	0	0
2020	0	0
Prior	1	5
Revolving Loans	5	0
Total	6	5
Consumer - Other | Performing Financial Instruments [Member]
Financing Receivable Recorded Investment [Line Items]
2024	0	0
2023	0	0
2022	0	60
2021	60	103
2020	100	82
Prior	375	278
Revolving Loans	9,214	8,636
Total	$ 9,749	$ 9,159

XML

Credit Quality Indicators (Details 3)	9 Months Ended
	Sep. 30, 2024
Home equity lines of credit
Financing Receivable Recorded Investment [Line Items]
Methodology	Cohort
Loss Drivers	Credit Loss History
Residential real estate -1-4 family | Residential real estate, 1-4 family residential | 1st Liens
Financing Receivable Recorded Investment [Line Items]
Methodology	Cohort
Loss Drivers	Credit Loss History
Residential real estate -1-4 family | Residential real estate, 1-4 family residential | 2nd Liens
Financing Receivable Recorded Investment [Line Items]
Methodology	Cohort
Loss Drivers	Credit Loss History
Consumer | Consumer Finance Cash Reserve Loan
Financing Receivable Recorded Investment [Line Items]
Methodology	Cohort
Loss Drivers	Credit Loss History
Consumer | Consumer, Direct
Financing Receivable Recorded Investment [Line Items]
Methodology	Cohort
Loss Drivers	Credit Loss History
Consumer | Consumer, Indirect
Financing Receivable Recorded Investment [Line Items]
Methodology	Cohort
Loss Drivers	Credit Loss History
Commercial | Commercial, Commercial and industrial
Financing Receivable Recorded Investment [Line Items]
Methodology	PD/LGD
Loss Drivers	Credit Loss History
Commercial | Commercial, Agricultural
Financing Receivable Recorded Investment [Line Items]
Methodology	PD/LGD
Loss Drivers	Credit Loss History
Commercial | Commercial, municipal
Financing Receivable Recorded Investment [Line Items]
Methodology	PD/LGD
Loss Drivers	Credit Loss History
Commercial real estate - Owner occupied | Commercial real estate, multifamily
Financing Receivable Recorded Investment [Line Items]
Methodology	PD/LGD
Loss Drivers	Credit Loss History
Commercial real estate - Owner occupied | Commercial real estate, Owner occupied
Financing Receivable Recorded Investment [Line Items]
Methodology	PD/LGD
Loss Drivers	Credit Loss History
Commercial real estate - Owner occupied | Commercial real estate, Non-owner occupied
Financing Receivable Recorded Investment [Line Items]
Methodology	PD/LGD
Loss Drivers	Credit Loss History
Commercial real estate - Owner occupied | Commercial real estate, Farmland
Financing Receivable Recorded Investment [Line Items]
Methodology	PD/LGD
Loss Drivers	Credit Loss History
Commercial real estate - Owner occupied | Commercial real estate, construction
Financing Receivable Recorded Investment [Line Items]
Methodology	PD/LGD
Loss Drivers	Credit Loss History

XML

Credit Quality Indicators (Details 5) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023	Dec. 31, 2022
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	$ 3,280,517		$ 3,198,127
ACL Balance	36,186	$ 33,991	34,440	$ 34,753	$ 34,957	$ 26,978
PCD Loans
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	30,497
ACL Balance	618
Commercial real estate - Owner occupied
Loans And Leases Receivable Disclosure [Line Items]
ACL Balance	19,051	17,223	18,150	18,716	18,537	14,840
Commercial real estate - Owner occupied | Commercial real estate, Owner occupied
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	396,740		399,028
Commercial real estate - Owner occupied | Commercial real estate, Owner occupied | PCD Loans
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	384
ACL Balance	14
Commercial real estate - Owner occupied | Commercial real estate, Non-owner occupied
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	684,164		711,795
Commercial real estate - Owner occupied | Commercial real estate, Non-owner occupied | PCD Loans
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	27,033
ACL Balance	475
Commercial real estate - Owner occupied | Commercial real estate, Farmland
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	203,191		202,726
Commercial real estate - Owner occupied | Commercial real estate, Farmland | PCD Loans
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	5
ACL Balance	0
Commercial
Loans And Leases Receivable Disclosure [Line Items]
ACL Balance	4,615	4,628	5,087	5,102	5,295	4,186
Commercial | Commercial, Commercial and industrial
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	359,835		347,819
Commercial | Commercial, Commercial and industrial | PCD Loans
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	1,690
ACL Balance	115
Commercial | Commercial, Agricultural
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	59,247		59,075
Commercial | Commercial, Agricultural | PCD Loans
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	117
ACL Balance	7
Residential real estate -1-4 family
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	852,782		843,561
ACL Balance	7,549	$ 7,422	6,916	$ 6,734	$ 6,866	$ 4,374
Residential real estate -1-4 family | Residential real estate, 1-4 family residential
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	852,782		$ 843,561
Residential real estate -1-4 family | Residential real estate, 1-4 family residential | PCD Loans
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	1,265
ACL Balance	7
Residential real estate -1-4 family | Residential real estate, Home equity lines of credit | PCD Loans
Loans And Leases Receivable Disclosure [Line Items]
Loan balances	3
ACL Balance	$ 0

XML

Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation Of Revenue [Line Items]
TOTAL NONINTEREST INCOME	$ 12,340	$ 9,831	$ 30,302	$ 29,705
Service Charges on Deposit Accounts
Disaggregation Of Revenue [Line Items]
Noninterest income	1,992	1,712	5,421	4,646
Debit Card and EFT Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	1,993	1,763	5,320	5,362
Trust Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	2,544	2,327	7,398	6,665
Insurance Agency Commissions
Disaggregation Of Revenue [Line Items]
Noninterest income	1,416	1,116	4,199	3,904
Retirement Plan Consulting Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	677	650	1,918	1,837
Investment Commissions
Disaggregation Of Revenue [Line Items]
Noninterest income	476	520	1,386	1,389
Operating Segments
Disaggregation Of Revenue [Line Items]
TOTAL NONINTEREST INCOME	12,340	9,831	30,302	29,705
Operating Segments | Service Charges on Deposit Accounts
Disaggregation Of Revenue [Line Items]
Noninterest income	1,992	1,712	5,421	4,646
Operating Segments | Debit Card and EFT Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	1,993	1,763	5,320	5,362
Operating Segments | Trust Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	2,544	2,327	7,398	6,665
Operating Segments | Insurance Agency Commissions
Disaggregation Of Revenue [Line Items]
Noninterest income	1,416	1,116	4,199	3,904
Operating Segments | Retirement Plan Consulting Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	677	650	1,918	1,837
Operating Segments | Investment Commissions
Disaggregation Of Revenue [Line Items]
Noninterest income	476	520	1,386	1,389
Operating Segments | Other
Disaggregation Of Revenue [Line Items]
Other (outside the scope of ASC 606)	3,242	1,743	4,660	5,902
Operating Segments | Trust Segment
Disaggregation Of Revenue [Line Items]
TOTAL NONINTEREST INCOME	3,221	2,977	9,316	8,502
Operating Segments | Trust Segment | Service Charges on Deposit Accounts
Disaggregation Of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Trust Segment | Debit Card and EFT Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Trust Segment | Trust Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	2,544	2,327	7,398	6,665
Operating Segments | Trust Segment | Insurance Agency Commissions
Disaggregation Of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Trust Segment | Retirement Plan Consulting Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	677	650	1,918	1,837
Operating Segments | Trust Segment | Investment Commissions
Disaggregation Of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Trust Segment | Other
Disaggregation Of Revenue [Line Items]
Other (outside the scope of ASC 606)	0	0	0	0
Operating Segments | Bank Segment
Disaggregation Of Revenue [Line Items]
TOTAL NONINTEREST INCOME	9,119	6,854	20,986	21,203
Operating Segments | Bank Segment | Service Charges on Deposit Accounts
Disaggregation Of Revenue [Line Items]
Noninterest income	1,992	1,712	5,421	4,646
Operating Segments | Bank Segment | Debit Card and EFT Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	1,993	1,763	5,320	5,362
Operating Segments | Bank Segment | Trust Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Bank Segment | Insurance Agency Commissions
Disaggregation Of Revenue [Line Items]
Noninterest income	1,416	1,116	4,199	3,904
Operating Segments | Bank Segment | Retirement Plan Consulting Fees
Disaggregation Of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Bank Segment | Investment Commissions
Disaggregation Of Revenue [Line Items]
Noninterest income	476	520	1,386	1,389
Operating Segments | Bank Segment | Other
Disaggregation Of Revenue [Line Items]
Other (outside the scope of ASC 606)	$ 3,242	$ 1,743	$ 4,660	$ 5,902

XML

Revenue from Contracts with Customers (Details Textual) - ASC 606	Sep. 30, 2024 USD ($)
Revenue From Contract With Customer [Line Items]
Contingent debit card interchange fees	$ 0
Contingent incentive fees	0
Contingent commission	0
Cetera
Revenue From Contract With Customer [Line Items]
Contingent investment commissions to be refunded	$ 0

XML

Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial Assets
Securities available for sale	$ 1,293,350	$ 1,299,701
Fair Value, Measurements, Recurring
Financial Assets
Total investment securities	1,293,350	1,299,701
U.S. Treasury and U.S. government sponsored entities
Financial Assets
Securities available for sale	119,593	127,955
U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	119,593	127,955
State and political subdivisions
Financial Assets
Securities available for sale	527,722	556,169
State and political subdivisions | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	527,722	556,169
Corporate bonds
Financial Assets
Securities available for sale	18,436	18,275
Corporate bonds | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	18,436	18,275
Mortgage-backed securities - residential
Financial Assets
Securities available for sale	513,213	520,386
Mortgage-backed securities - residential | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	513,213	520,386
Collateralized mortgage obligations
Financial Assets
Securities available for sale	111,761	73,999
Collateralized mortgage obligations | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	111,761	73,999
Small Business Administration
Financial Assets
Securities available for sale	2,625	2,917
Small Business Administration | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	2,625	2,917
Equity securities at fair value | Fair Value, Measurements, Recurring
Financial Assets
Equity securities	261	226
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	96	109
Loans held for sale | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	2,852	3,711
Interest rate swaps | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	$ 2,739	$ 4,191
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other assets	Other assets
Financial Liabilities
Derivative liabilities	$ 2,739	$ 4,191
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Fair value hedge derivative | Fair Value, Measurements, Recurring
Financial Liabilities
Derivative liabilities	$ 1,392	$ 836
Mortgage Banking Derivative | Fair Value, Measurements, Recurring
Financial Liabilities
Derivative liabilities	14	14
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring
Financial Assets
Total investment securities	0	0
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 1 [Member] | State and political subdivisions | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 1 [Member] | Corporate bonds | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 1 [Member] | Collateralized mortgage obligations | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 1 [Member] | Small Business Administration | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 1 [Member] | Equity securities at fair value | Fair Value, Measurements, Recurring
Financial Assets
Equity securities	261	226
Fair Value, Inputs, Level 1 [Member] | Interest Rate Lock Commitments | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	0	0
Fair Value, Inputs, Level 1 [Member] | Loans held for sale | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	0	0
Fair Value, Inputs, Level 1 [Member] | Interest rate swaps | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	0	0
Financial Liabilities
Derivative liabilities	0	0
Fair Value, Inputs, Level 1 [Member] | Fair value hedge derivative | Fair Value, Measurements, Recurring
Financial Liabilities
Derivative liabilities	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage Banking Derivative | Fair Value, Measurements, Recurring
Financial Liabilities
Derivative liabilities	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring
Financial Assets
Total investment securities	1,291,932	1,298,361
Fair Value, Inputs, Level 2 [Member] | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	119,593	127,955
Fair Value, Inputs, Level 2 [Member] | State and political subdivisions | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	527,722	556,169
Fair Value, Inputs, Level 2 [Member] | Corporate bonds | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	17,018	16,935
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	513,213	520,386
Fair Value, Inputs, Level 2 [Member] | Collateralized mortgage obligations | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	111,761	73,999
Fair Value, Inputs, Level 2 [Member] | Small Business Administration | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	2,625	2,917
Fair Value, Inputs, Level 2 [Member] | Equity securities at fair value | Fair Value, Measurements, Recurring
Financial Assets
Equity securities	0	0
Fair Value, Inputs, Level 2 [Member] | Interest Rate Lock Commitments | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	96	109
Fair Value, Inputs, Level 2 [Member] | Loans held for sale | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	2,852	3,711
Fair Value, Inputs, Level 2 [Member] | Interest rate swaps | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	2,739	4,191
Financial Liabilities
Derivative liabilities	2,739	4,191
Fair Value, Inputs, Level 2 [Member] | Fair value hedge derivative | Fair Value, Measurements, Recurring
Financial Liabilities
Derivative liabilities	1,392	836
Fair Value, Inputs, Level 2 [Member] | Mortgage Banking Derivative | Fair Value, Measurements, Recurring
Financial Liabilities
Derivative liabilities	14	14
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring
Financial Assets
Total investment securities	1,418	1,340
Fair Value, Inputs, Level 3 [Member] | U.S. Treasury and U.S. government sponsored entities | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 3 [Member] | State and political subdivisions | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 3 [Member] | Corporate bonds | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	1,418	1,340
Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities - residential | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 3 [Member] | Collateralized mortgage obligations | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 3 [Member] | Small Business Administration | Fair Value, Measurements, Recurring
Financial Assets
Securities available for sale	0	0
Fair Value, Inputs, Level 3 [Member] | Equity securities at fair value | Fair Value, Measurements, Recurring
Financial Assets
Equity securities	0	0
Fair Value, Inputs, Level 3 [Member] | Interest Rate Lock Commitments | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	0	0
Fair Value, Inputs, Level 3 [Member] | Loans held for sale | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	0	0
Fair Value, Inputs, Level 3 [Member] | Interest rate swaps | Fair Value, Measurements, Recurring
Financial Assets
Derivative Assets	0	0
Financial Liabilities
Derivative liabilities	0	0
Fair Value, Inputs, Level 3 [Member] | Fair value hedge derivative | Fair Value, Measurements, Recurring
Financial Liabilities
Derivative liabilities	0	0
Fair Value, Inputs, Level 3 [Member] | Mortgage Banking Derivative | Fair Value, Measurements, Recurring
Financial Liabilities
Derivative liabilities	$ 0	$ 0

XML

Fair Value (Details Textual) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value assets liabilities transfers amount between level 1 and level 2	$ 0	$ 0
Securities fair value less than amortized cost	$ 0

XML

Fair Value (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs
Beginning Balance	$ 1,397	$ 1,224	$ 1,340	$ 1
Transfers between levels	0	0	0	0
Acquired and/or purchased	0	0	0	1,600
Discount accretion (premium amortization)	13	11	39	23
Repayments, calls and maturities	0	0	0	(401)
Changes in unrealized gains (losses)	$ 8	$ 1	$ 39	$ 13
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax	Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax
Ending Balance	$ 1,418	$ 1,236	$ 1,418	$ 1,236

XML

Fair Value (Details 2) - Fair Value, Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Commercial and industrial
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment		$ 267
Mortgage servicing rights
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	$ 454	210
Commercial real estate, Non-owner occupied
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	6,944	838
1-4 family residential
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	1,517	1,547
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial and industrial
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment		0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage servicing rights
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate, Non-owner occupied
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | 1-4 family residential
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	0	0
Significant Other Observable Inputs (Level 2) | Commercial and industrial
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment		0
Significant Other Observable Inputs (Level 2) | Mortgage servicing rights
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	454	210
Significant Other Observable Inputs (Level 2) | Commercial real estate, Non-owner occupied
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	0	0
Significant Other Observable Inputs (Level 2) | 1-4 family residential
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	0	0
Significant Unobservable Inputs (Level 3) | Commercial and industrial
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment		267
Significant Unobservable Inputs (Level 3) | Mortgage servicing rights
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	0	0
Significant Unobservable Inputs (Level 3) | Commercial real estate, Non-owner occupied
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	6,944	838
Significant Unobservable Inputs (Level 3) | 1-4 family residential
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Recorded Investment	$ 1,517	$ 1,547

XML

Fair Value (Details 3) - Fair Value, Nonrecurring $ in Thousands	Sep. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Sales Comparison Valuation | Commercial real estate - Owner occupied
Fair value measurements for financial instruments
Recorded Investment	$ 6,944
Sales Comparison Valuation | Residential Real Estate
Fair value measurements for financial instruments
Recorded Investment	$ 1,517	$ 1,547
Sales Comparison Valuation | Residential Real Estate | Minimum | Measurement Input, Comparability Adjustment
Fair value measurements for financial instruments
Adjustment for differences between earning multiplier and comparable sales, Percent	(0.0539)	(0.0539)
Sales Comparison Valuation | Residential Real Estate | Maximum | Measurement Input, Comparability Adjustment
Fair value measurements for financial instruments
Adjustment for differences between earning multiplier and comparable sales, Percent	0.0211	(0.0211)
Sales Comparison Valuation | Residential Real Estate | Weighted Average | Measurement Input, Comparability Adjustment
Fair value measurements for financial instruments
Adjustment for differences between earning multiplier and comparable sales, Percent	(0.0267)	(0.0267)
Sales Comparison Valuation | Commercial
Fair value measurements for financial instruments
Recorded Investment		$ 267
Sales Comparison Valuation | Commercial | Weighted Average | Measurement Input, Comparability Adjustment
Fair value measurements for financial instruments
Adjustment for differences between earning multiplier and comparable sales, Percent		0.6438
Income approach | Commercial real estate - Owner occupied
Fair value measurements for financial instruments
Recorded Investment		$ 838
Income approach | Commercial real estate - Owner occupied | Minimum | Measurement Input, Comparability Adjustment
Fair value measurements for financial instruments
Adjustment for differences between earning multiplier and comparable sales, Percent	(0.5603)	(0.4965)
Income approach | Commercial real estate - Owner occupied | Maximum | Measurement Input, Comparability Adjustment
Fair value measurements for financial instruments
Adjustment for differences between earning multiplier and comparable sales, Percent	0.6902	0.4677
Income approach | Commercial real estate - Owner occupied | Weighted Average | Measurement Input, Comparability Adjustment
Fair value measurements for financial instruments
Adjustment for differences between earning multiplier and comparable sales, Percent	(0.4071)	(0.1663)

XML

Fair Value (Details 4) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Financial assets
Cash and cash equivalents, Carrying Amount	$ 189,136	$ 103,658
Regulatory stock, Carrying Amount	17,678	20,197
Loans, net, Carrying Amount	3,244,331	3,163,687
Financial liabilities
Deposits, Carrying Amount	4,361,837	4,177,386
Short-term borrowings	285,000	355,000
Long-term borrowings	86,038	88,663
Fair Value, Measurements, Recurring
Financial assets
Cash and cash equivalents, Fair Value	189,136	103,658
Loans, net, Fair Value	3,136,414	3,015,732
Financial liabilities
Deposits, Fair Value	4,359,791	4,171,601
Short-term borrowings, Fair Value	285,000	355,000
Long-term borrowings, Fair Value	76,389	70,893
Fair Value, Measurements, Recurring | Level 1
Financial assets
Cash and cash equivalents, Fair Value	21,149	28,896
Loans, net, Fair Value	0	0
Financial liabilities
Deposits, Fair Value	3,518,405	3,452,104
Short-term borrowings, Fair Value	0	0
Long-term borrowings, Fair Value	0	0
Fair Value, Measurements, Recurring | Level 2
Financial assets
Cash and cash equivalents, Fair Value	167,987	74,762
Loans, net, Fair Value	0	0
Financial liabilities
Deposits, Fair Value	841,386	719,497
Short-term borrowings, Fair Value	285,000	355,000
Long-term borrowings, Fair Value	76,389	70,893
Fair Value, Measurements, Recurring | Level 3
Financial assets
Cash and cash equivalents, Fair Value	0	0
Loans, net, Fair Value	3,136,414	3,015,732
Financial liabilities
Deposits, Fair Value	0	0
Short-term borrowings, Fair Value	0	0
Long-term borrowings, Fair Value	$ 0	$ 0

XML

Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill associated with the Company's purchases and other past acquisitions	$ 167,446		$ 167,446		$ 167,446
Aggregate amortization expense	$ 629	$ 725	$ 1,947	$ 2,856

XML

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Acquired intangible assets
Gross Carrying Amount	$ 40,908	$ 40,908
Accumulated Amortization	(20,014)	(18,066)
Customer Relationships
Acquired intangible assets
Gross Carrying Amount	7,210	7,210
Accumulated Amortization	(7,055)	(6,953)
Non-compete contracts
Acquired intangible assets
Gross Carrying Amount	457	457
Accumulated Amortization	(423)	(413)
Trade Name
Acquired intangible assets
Gross Carrying Amount	1,126	1,126
Accumulated Amortization	(461)	(440)
Core Deposits
Acquired intangible assets
Gross Carrying Amount	32,115	32,115
Accumulated Amortization	$ (12,075)	$ (10,260)

XML

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Finite Lived Intangible Assets Future Amortization Expense [Abstract]
2024 (3 months)	$ 629
2025	2,451
2026	2,355
2027	2,242
2028	2,231
Thereafter	10,986
Total	$ 20,894	$ 22,842

XML

Leases (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Jan. 01, 2023
Lessee Lease Description [Line Items]
Operating leases options to extend [true false]			true
Operating leases options to terminate the lease			of 2025
Operating lease, description			The Company has operating leases for branch office locations, vehicles, land and certain office equipment such as printers and copiers. The leases have remaining lease terms of up to 16.8 years, some of which had options to extend the lease for up to 15 years, while the Fairlawn lending building and NAI building leases have the options to terminate in March of 2025.
Operating lease, right-of-use assets	$ 9,000		$ 9,000		$ 8,800	$ 1,300
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets		Other Assets		Other Assets	Other Assets
Operating lease liabilities	$ 9,237		$ 9,237		$ 9,000	$ 1,300
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other liabilities		Other liabilities		Other liabilities	Other liabilities
Operating lease, expense	$ 327	$ 103	$ 985	$ 820
Weighted average remaining lease term			10 years 1 month 17 days
Weighted-average discount rate	3.16%		3.16%
Maximum
Lessee Lease Description [Line Items]
Operating leases remaining lease terms	16 years 9 months 18 days		16 years 9 months 18 days
Operating leases options to extend			15 years

XML

Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023	Jan. 01, 2023
Maturities of Operating Lease Liabilities
2024 (6 months)	$ 334
2025	1,282
2026	1,166
2027	1,083
2028	1,097
Thereafter	5,984
Total Payments	10,946
Less: lease liability expense	(1,709)
Total	$ 9,237	$ 9,000	$ 1,300

XML

Derivative Financial Instruments (Details Textual) - Interest rate swaps - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Derivative [Line Items]
Derivative notional amount	$ 70,200,000		$ 70,200,000		$ 63,900,000
Fair value, other assets	(2,700,000)		(2,700,000)		(4,200,000)
Fair value, other liabilities	2,700,000		2,700,000		4,200,000
Net Gain or Loss recognized in earnings	0	$ 0	0	$ 0
Fair Value Hedge
Derivative [Line Items]
Derivative notional amount	100,000,000		100,000,000		100,000,000
Fair value, other assets	(1,400,000)		(1,400,000)		(836,000)
Fair Value Hedge | Other Liabilities
Derivative [Line Items]
Fair value, other assets	(1,500,000)		(1,500,000)		(1,300,000)
Fair Value Hedge | Other Assets
Derivative [Line Items]
Fair value, other assets	$ (152,000)		$ (152,000)		$ (425,000)

XML

Derivative Financial Instruments (Details) - Interest rate swaps - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Derivative [Line Items]
Notional amount fair value hedge	$ 70,200	$ 63,900
Fair Value Hedge
Derivative [Line Items]
Notional amount fair value hedge	$ 100,000	$ 100,000
Fixed pay rates	4.35%	4.35%
Variable SOFR receive rates	4.96%	5.38%
Remaining maturity (in years)	1 year 9 months 18 days	2 years 7 months 6 days
Fair value	$ (1,392)	$ (836)

XML

Derivative Financial Instruments (Detail 1) - Not Designated as Hedging Instrument - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Forward sales contracts
Derivative [Line Items]
Net Gain or Loss recognized in earnings	$ (18)	$ 22	$ 0	$ 6
Interest Rate Lock Commitments
Derivative [Line Items]
Net Gain or Loss recognized in earnings	$ 43	$ (76)	$ (12)	$ (19)

XML

Derivative Financial Instruments (Detail 2) - Mortgage Banking - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Other Assets
Derivative [Line Items]
Derivative liability, notional amount	$ 9,815	$ 7,400
Derivative liability, fair value	98	109
Forward sales contracts | Other Assets
Derivative [Line Items]
Derivative liability, notional amount	361	0
Derivative liability, fair value	2	0
Interest Rate Lock Commitments | Other Assets
Derivative [Line Items]
Derivative liability, notional amount	9,454	7,400
Derivative liability, fair value	96	109
Mortgage Banking Derivative | Other Assets
Derivative [Line Items]
Derivative liability, notional amount	0	0
Derivative liability, fair value	0	0
Mortgage Banking Derivative | Other Liabilities
Derivative [Line Items]
Derivative liability, notional amount	9,500	3,300
Derivative liability, fair value	$ (14)	$ (14)

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Basic EPS
Net income	$ 8,535	$ 11,783	$ 11,240	$ 13,314	$ 14,966	$ 7,075	$ 31,558	$ 35,356
Weighted average shares outstanding	37,352,872			37,241,383			37,319,035	37,430,782
Basic earnings per share	$ 0.23			$ 0.36			$ 0.85	$ 0.94
Diluted EPS
Net income	$ 8,535	$ 11,783	$ 11,240	$ 13,314	$ 14,966	$ 7,075	$ 31,558	$ 35,356
Weighted average shares outstanding	37,352,872			37,241,383			37,319,035	37,430,782
Dilutive effect of restricted stock awards	214,083			137,971			175,503	102,427
Weighted average shares for diluted earnings per share	37,566,955			37,379,354			37,494,538	37,533,209
Diluted earnings per share	$ 0.23			$ 0.36			$ 0.84	$ 0.94

XML

Earnings Per Share (Details Textual) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Restricted Stock Awards
Earnings Per Share Basic [Line Items]
Anti-dilutive securities excluded from computation of earnings per share	0	13,046	167,178	204,105

XML

Stock Based Compensation (Details Textual) - 2022 Incentive Plan - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Apr. 30, 2022
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares vested			157,448
Number of shares vested, weighted average fair value			$ 13.19
Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum shares available under equity incentive plan					1,000,000
Number of shares available for grant	563,681		563,681
Stock based compensation expense	$ 668,000	$ 744,000	$ 2,000	$ 2,000
Unrecognized compensation expense	$ 3,000,000		$ 3,000,000
Compensation cost not yet recognized, period for recognition			2 years 4 months 24 days
Time Based Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share awards granted under equity incentive plan			71,925	87,391
Number of shares vested			91,256	30,990
Number of shares vested, weighted average fair value			$ 12.76	$ 12.92
Performance Based Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share awards granted under equity incentive plan			99,253	102,750
Number of shares vested			66,192	30,635
Number of shares vested, weighted average fair value			$ 13.79	$ 14.35

XML

Stock Based Compensation (Details) - 2022 Incentive Plan - $ / shares	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vested, Maximum Awarded Units	(157,448)
Vested, Weighted Average Grant Date Fair Value	$ 13.19
Time Based Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Beginning balance - non-vested shares, Maximum Awarded Unit	253,776	193,015
Granted, Maximum Awarded Units	71,925	87,391
Vested, Maximum Awarded Units	(91,256)	(30,990)
Forfeited, Maximum Awarded Units	(13,667)	(1,541)
Ending balance - non-vested shares, Maximum Awarded Unit	220,778	247,875
Beginning balance - non-vested shares, Weighted Average Grant Date Fair Value	$ 14.97	$ 16.69
Granted, Weighted Average Grant Date Fair Value	12.97	12.88
Vested, Weighted Average Grant Date Fair Value	12.76	12.92
Forfeited, Weighted Average Grant Date Fair Value	16.35	17.64
Ending balance - non-vested shares, Weighted Average Grant Date Fair Value	$ 14.3	$ 15.4
Performance Based Restricted Stock Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Beginning balance - non-vested shares, Maximum Awarded Unit	209,484	137,369
Granted, Maximum Awarded Units	99,253	102,750
Vested, Maximum Awarded Units	(66,192)	(30,635)
Forfeited, Maximum Awarded Units	(19,625)	0
Ending balance - non-vested shares, Maximum Awarded Unit	222,920	209,484
Beginning balance - non-vested shares, Weighted Average Grant Date Fair Value	$ 15.01	$ 15.85
Granted, Weighted Average Grant Date Fair Value	13.81	14.16
Vested, Weighted Average Grant Date Fair Value	13.79	14.35
Forfeited, Weighted Average Grant Date Fair Value	15.05	0
Ending balance - non-vested shares, Weighted Average Grant Date Fair Value	$ 14.57	$ 15.01

XML

Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 396,694	$ 397,026	$ 404,415	$ 366,991	$ 374,642	$ 292,295	$ 404,415	$ 292,295
Other comprehensive income (loss), net of tax	40,282	(6,279)	(12,400)	(58,685)	(16,834)	33,796	21,603	(41,723)
Balance	439,678	396,694	397,026	315,982	366,991	374,642	439,678	315,982
Net unrealized holding gains (losses) on available for sale securities
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(191,448)	(185,002)	(171,539)	(193,527)	(176,693)	(210,489)	(171,539)	(210,489)
Other comprehensive income (loss) before reclassification	41,452	(6,545)	(15,149)	(59,786)	(16,834)	33,891
Amounts reclassified from accumulated other comprehensive income (loss)	333	99	1,686	488	0	(95)
Other comprehensive income (loss), net of tax	41,785	(6,446)	(13,463)	(59,298)	(16,834)	33,796
Balance	(149,663)	(191,448)	(185,002)	(252,825)	(193,527)	(176,693)	(149,663)	(252,825)
Reclassification adjustment for (gains) losses realized in income on fair value hedge
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	217	50	(1,013)	0	0	0	(1,013)	0
Other comprehensive income (loss) before reclassification	0	0	0	0	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	(1,503)	167	1,063	613	0	0
Other comprehensive income (loss), net of tax	(1,503)	167	1,063	613	0	0
Balance	(1,286)	217	50	613	0	0	(1,286)	613
Change in funded status of post-retirement plan
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(2)	(2)	(2)	(1)	(1)	(1)	(2)	(1)
Other comprehensive income (loss) before reclassification	0	0	0	0	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	0	0	0	0	0
Other comprehensive income (loss), net of tax	0	0	0	0	0	0
Balance	(2)	(2)	(2)	(1)	(1)	(1)	(2)	(1)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(191,233)	(184,954)	(172,554)	(193,528)	(176,694)	(210,490)	(172,554)	(210,490)
Other comprehensive income (loss) before reclassification	41,452	(6,545)	(15,149)	(59,786)	(16,834)	33,891
Amounts reclassified from accumulated other comprehensive income (loss)	(1,170)	266	2,749	1,101	0	(95)
Other comprehensive income (loss), net of tax	40,282	(6,279)	(12,400)	(58,685)	(16,834)	33,796
Balance	$ (150,951)	$ (191,233)	$ (184,954)	$ (252,213)	$ (193,528)	$ (176,694)	$ (150,951)	$ (252,213)

XML

Regulatory Capital Matters (Details Textual)	Sep. 30, 2024	Dec. 31, 2023
Regulatory Matters (Additional Textual) [Abstract]
Common equity tier 1 capital to risk-weighted assets, capital conservation buffer ratio	2.50%
Tier 1 capital to risk-weighted assets, capital conservation buffer ratio	2.50%
Total capital to risk-weighted assets, capital conservation buffer ratio	2.50%
Minimum ratio of common equity tier 1 capital to risk-weighted assets	4.50%	4.50%
Minimum ratio of tier 1 capital to risk-weighted assets	0.06	0.06
Minimum ratio of total capital to risk-weighted assets	0.08	0.08
Minimum leverage ratio	0.04	0.04
Farmers National Banc Corp
Regulatory Matters (Additional Textual) [Abstract]
Minimum ratio of common equity tier 1 capital to risk-weighted assets	4.50%	4.50%
Minimum ratio of tier 1 capital to risk-weighted assets	0.06	0.06
Minimum ratio of total capital to risk-weighted assets	0.08	0.08
Minimum leverage ratio	0.04	0.04

XML

Regulatory Capital Matters (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Common equity tier 1 capital ratio
Actual, Amount	$ 406,169	$ 392,244
Actual, Ratio	10.91%	10.61%
Requirement for Capital Adequacy Purposes, Amount	$ 167,578	$ 166,303
Requirement for Capital Adequacy Purposes, Ratio	4.50%	4.50%
Total risk based capital ratio
Actual, Amount	$ 533,935	$ 519,684
Actual, Ratio	0.1434	0.1406
Requirement for Capital Adequacy Purposes, Amount	$ 297,916	$ 295,650
Requirement for Capital Adequacy Purposes, Ratio	0.08	0.08
Tier 1 risk based capital ratio
Actual, Amount	$ 424,169	$ 410,244
Actual, Ratio	0.1139	0.111
Requirement for Capital Adequacy Purposes, Amount	$ 223,437	$ 221,737
Requirement for Capital Adequacy Purposes, Ratio	0.06	0.06
Tier 1 leverage ratio
Actual, Amount	$ 424,169	$ 410,244
Actual, Ratio	0.082	0.0802
Requirement for Capital Adequacy Purposes, Amount	$ 206,949	$ 204,598
Requirement for Capital Adequacy Purposes, Ratio	0.04	0.04
Farmers National Banc Corp
Common equity tier 1 capital ratio
Actual, Amount	$ 426,179	$ 411,304
Actual, Ratio	11.46%	11.15%
Requirement for Capital Adequacy Purposes, Amount	$ 167,368	$ 165,996
Requirement for Capital Adequacy Purposes, Ratio	4.50%	4.50%
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 241,753	$ 239,772
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	6.50%	6.50%
Total risk based capital ratio
Actual, Amount	$ 463,945	$ 447,584
Actual, Ratio	0.1247	0.1213
Requirement for Capital Adequacy Purposes, Amount	$ 297,543	$ 295,104
Requirement for Capital Adequacy Purposes, Ratio	0.08	0.08
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 371,928	$ 368,881
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.10	0.10
Tier 1 risk based capital ratio
Actual, Amount	$ 426,179	$ 411,304
Actual, Ratio	0.1146	0.1115
Requirement for Capital Adequacy Purposes, Amount	$ 223,157	$ 221,328
Requirement for Capital Adequacy Purposes, Ratio	0.06	0.06
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 297,543	$ 295,104
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.08	0.08
Tier 1 leverage ratio
Actual, Amount	$ 426,179	$ 411,304
Actual, Ratio	0.0826	0.0807
Requirement for Capital Adequacy Purposes, Amount	$ 206,383	$ 203,989
Requirement for Capital Adequacy Purposes, Ratio	0.04	0.04
To be Well Capitalized Under Prompt Corrective Action Provisions, Amount	$ 257,978	$ 254,986
To be Well Capitalized Under Prompt Corrective Action Provisions, Ratio	0.05	0.05

XML

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Segment Reporting Information [Line Items]
Goodwill and other intangibles	$ 188,340						$ 188,340		$ 190,288
Total assets	5,236,503						5,236,503		5,078,350
Net interest income	31,876			$ 33,768			95,629	$ 104,956
Provision for credit losses and unfunded loans	7,008			243			7,671	8,867
Service fees, security gains and other noninterest income	12,340			9,831			30,302	29,705
Noninterest expense	25,574			26,036			75,913	79,044
Amortization and depreciation expense	1,501			1,680			4,604	5,780
Income before taxes	10,133			15,640			37,743	40,970
Income taxes	1,598			2,326			6,185	5,614
Net income	8,535	$ 11,783	$ 11,240	13,314	$ 14,966	$ 7,075	31,558	35,356
Eliminations And Others
Segment Reporting Information [Line Items]
Goodwill and other intangibles	(4,263)						(4,263)		(4,263)
Total assets	(2,894)						(2,894)		(2,645)
Net interest income	(1,023)			(992)			(3,098)	(2,902)
Provision for credit losses and unfunded loans	0			0			0	0
Service fees, security gains and other noninterest income	153			(10)			(425)	(627)
Noninterest expense	371			484			1,402	1,604
Amortization and depreciation expense	147			114			375	340
Income before taxes	(1,388)			(1,600)			(5,300)	(5,473)
Income taxes	(291)			(379)			(1,114)	(1,289)
Net income	(1,097)			(1,221)			(4,186)	(4,184)
Trust Segment | Operating Segments
Segment Reporting Information [Line Items]
Goodwill and other intangibles	5,643						5,643		5,680
Total assets	15,640						15,640		15,845
Net interest income	45			81			159	195
Provision for credit losses and unfunded loans	0			0			0	0
Service fees, security gains and other noninterest income	3,311			2,994			9,503	8,562
Noninterest expense	1,786			1,679			5,515	4,976
Amortization and depreciation expense	14			22			52	68
Income before taxes	1,556			1,374			4,095	3,713
Income taxes	328			289			862	781
Net income	1,228			1,085			3,233	2,932
Bank Segment | Operating Segments
Segment Reporting Information [Line Items]
Goodwill and other intangibles	186,960						186,960		188,871
Total assets	5,223,757						5,223,757		$ 5,065,150
Net interest income	32,854			34,679			98,568	107,663
Provision for credit losses and unfunded loans	7,008			243			7,671	8,867
Service fees, security gains and other noninterest income	8,876			6,847			21,224	21,770
Noninterest expense	23,417			23,873			68,996	72,464
Amortization and depreciation expense	1,340			1,544			4,177	5,372
Income before taxes	9,965			15,866			38,948	42,730
Income taxes	1,561			2,416			6,437	6,122
Net income	$ 8,404			$ 13,450			$ 32,511	$ 36,608

XML

Short-term borrowings (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Short Term Debt [Line Items]
Short-term borrowings	$ 285,000,000	$ 355,000,000
Short-Term Debt
Short Term Debt [Line Items]
Interest rate on borrowings	4.76%
Short-term borrowings	$ 285,000,000	285,000,000
Securities par value	$ 288,000,000
Short-term Borrowing maturity	2025-01
Domestic Line of Credit
Short Term Debt [Line Items]
Access to line of credit at domestic bank	$ 25,000,000
Unsecured revolving line of credit, outstanding balance	0	0
Revolving Credit Facility | Farmers National Banc Corp | Unsecured Debt
Short Term Debt [Line Items]
Unsecured revolving line of credit, outstanding balance	5,000,000
Letter of Credit
Short Term Debt [Line Items]
Unsecured revolving line of credit, outstanding balance	$ 0	0
Debt Instrument, Interest Rate, Stated Percentage	3.50%
Pledged
Short Term Debt [Line Items]
Short-term Federal Home Loan Banks advances	$ 0	$ 70,000,000
Interest rate on borrowings		5.41%

XML

Long-term borrowings (Details Textual) - USD ($)				1 Months Ended		9 Months Ended
	Nov. 01, 2021	Jan. 07, 2020	Dec. 31, 2015	Aug. 31, 2024	Nov. 30, 2021	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Long-rem advances from FHLB						$ 0			$ 0
Residential mortgage, commercial real estate, and multi-family loans						1,700,000,000			$ 1,600,000,000
Additional borrowing limit						695,800,000
Outstanding subordinated notes						$ 2,535,000	$ 0
Subordinated Notes
Debt Instrument [Line Items]
Aggregate principal amount					$ 75,000,000
Maturity date					Dec. 15, 2031
Fixed rate					3.125%
Notes maturity term					5 years
Basis spread on variable rate					220.00%
Net proceeds from sale					$ 73,800,000
Outstanding subordinated notes				$ 3,000,000
Junior Subordinated Debt Securities | Cortland Bank
Debt Instrument [Line Items]
Maturity date	Sep. 15, 2037
Business acquisition, date of merger agreement	Nov. 01, 2021
Acquisition-date fair value	$ 4,300,000
Interest rate, effective percentage								6.66%	7.10%
Junior Subordinated Debt Securities | Maple Leaf
Debt Instrument [Line Items]
Maturity date		Dec. 15, 2036
Business acquisition, date of merger agreement		Jan. 07, 2020
Interest rate, effective percentage						7.01%			7.45%
Junior Subordinated Debt Securities | National Bancshares Corporation
Debt Instrument [Line Items]
Maturity date			Jun. 15, 2035
Interest rate, effective percentage						6.91%			7.35%
Junior Subordinated Debt Securities | 3 Month SOFR Rate | Cortland Bank
Debt Instrument [Line Items]
Basis spread on variable rate	1.45%
Debt instrument, additional spread adjustment	0.26%
Junior Subordinated Debt Securities | 3 Month SOFR Rate | Maple Leaf
Debt Instrument [Line Items]
Basis spread on variable rate		1.70%
Debt instrument, additional spread adjustment		0.26%
Junior Subordinated Debt Securities | 3 Month SOFR Rate | National Bancshares Corporation
Debt Instrument [Line Items]
Basis spread on variable rate			1.80%
Debt instrument, additional spread adjustment		0.26%

XML

Long-term borrowings (Details 1) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total junior subordinated debentures owed to unconsolidated subsidiary trusts	$ 14,889	$ 14,643
Subordinated Debentures	71,149	74,020
Total long-term borrowings	86,038	88,663
TSEO Statutory Trust I
Debt Instrument [Line Items]
Total junior subordinated debentures owed to unconsolidated subsidiary trusts	2,558	2,521
Maple Leaf Financial Statutory Trust II
Debt Instrument [Line Items]
Total junior subordinated debentures owed to unconsolidated subsidiary trusts	7,908	7,740
Cortland Statutory Trust I
Debt Instrument [Line Items]
Total junior subordinated debentures owed to unconsolidated subsidiary trusts	$ 4,423	$ 4,382

XML

Qualified affordable housing project investments (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Investment Program, Proportional Amortization Method, Elected [Line Items]
Qualified affordable housing projects	$ 22,600,000		$ 22,600,000		$ 17,900,000
Total unfunded commitments	15,100,000		15,100,000		$ 12,300,000
Amortization expense	513,000	$ 426,000	1,300,000	$ 1,300,000
Tax credits and other benefits	$ 602,000	$ 558,000	1,600,000	1,600,000
Impairment losses			$ 0	$ 0