Exhibit 99.1

January 27, 2022

Press Release

Source:	Farmers National Banc Corp.
	Kevin J. Helmick, President and CEO
	20 South Broad Street, P.O. Box 555
	Canfield, OH 44406
	330.533.3341
	Email: exec@farmersbankgroup.com

FARMERS NATIONAL BANC CORP. ANNOUNCES

RECORD 2021 RESULTS

• Earnings per diluted share of $0.18 ($0.50 excluding one-time items, non-GAAP) for 4^th quarter of 2021

• Completed the acquisition of Cortland Bancorp

• Issued $75.0 million of subordinated debt at a rate of 3.125%

• 156 consecutive quarters of profitability

• Efficiency ratio, (excluding one-time items, non-GAAP), of 47.4% for the fourth quarter of 2021

• Allowance for credit losses ratio of 1.26% at December 31, 2021

• Return on average assets, (excluding one-time items, non-GAAP), was 1.65% for the fourth quarter of 2021

• ROAE and ROATE, (excluding one-time items, non-GAAP), 14.8% and 18.5%, respectively, for fourth quarter of 2021

CANFIELD, Ohio (January 27, 2022) – Farmers National Banc Corp. (“Farmers” or the “Company”) (NASDAQ: FMNB) today announced financial results for the three and twelve months ended December 31, 2021.

On a GAAP basis, net income for the fourth quarter of 2021 was $5.7 million, or $0.18 per diluted share, compared to $11.4 million, or $0.40 per diluted share, for the three months ended December 31, 2020. The results for the quarter included pretax items for acquisition related provision for credit loss expense of $4.9 million, $6.5 million for acquisition costs, $1.8 million for a prepayment penalty on an FHLB advance, security gains of $25,000, a loss of $195,000 on the sale of assets, and a one-time gain of $239,000 for the sale of Farmers’ credit card portfolio. Excluding these items (non-GAAP), core net income for the quarter ended December 31, 2021, would have been $16.2 million, or $0.50 per diluted share.

Net income for the twelve months ended December 31, 2021, totaled $51.8 million, or $1.77 per diluted share, compared to $41.9 million, or $1.47 per diluted share for the twelve months ended December 31, 2020. Results for the year ended December 31, 2021, included pre-tax items for acquisition related provision for credit loss expense of $4.9 million, acquisition costs of $7.1 million, prepayment penalties on FHLB advances of $2.1 million, security gains of $1.0 million, a loss of $247,000 on the sale of assets, and the one-time gain of $239,000 on the sale of the credit card portfolio. Net income for the twelve months ended December 31, 2021, excluding these items (non-GAAP), was $62.3 million, or $2.13 per share.

On November 1, 2021, Farmers and Cortland Bancorp (“Cortland”) completed the previously announced merger of Cortland into Farmers in a cash and stock transaction. Under the terms of the merger agreement, shareholders of Cortland were able to elect to receive either $28.00 per share in cash or 1.75 shares of Farmers’ common stock, subject to an overall limitation of 75% of the Cortland shares being exchanged for Farmers shares and 25% for cash. The merger combines two complementary banking institutions with similar culture and operating philosophies, and will further solidify Farmers’ market share in Trumbull and Mahoning counties while expanding Farmers’ presence in the greater Cleveland market. In February 2022, the systems integration of Farmers and Cortland will be completed, bringing the combined 48 branches together under one name.

At the closing of the merger, Farmers issued 5.6 million shares of its common stock along with cash of $29.6 million, which represented a transaction value of approximately $128.5 million based on its closing stock price of $17.82 on October 31, 2021. The transaction value has been allocated to assets acquired and liabilities assumed, including $482.2 million in loans and loans held for sale, $305.2 million in other tangible assets, $695.3 million in deposits, $17.9 million in other liabilities and $54.4 million in goodwill and other intangible assets. Prior to closing, Cortland incurred $3.3 million of merger-related costs. The year-over-year comparison of Farmers results is impacted by the Cortland merger, with 2021 including two months of combined operations from Cortland compared to none in the prior year.

Kevin J. Helmick, President and CEO, stated, “The last two years have brought unbelievable challenges to the world and our industry. Through it all, the Farmers team has continued to deliver record earnings and superior returns while catering to the needs of the communities we serve. I am extremely proud of our staff for all of their hard work. With the closing of the Cortland acquisition, I look forward to the possibilities in 2022.”

Balance Sheet

Total assets at December 31, 2021, grew to $4.14 billion compared to $3.32 billion at September 30, 2021 and $3.07 billion at December 31, 2020. The acquisition of Cortland added $841.7 million in assets to the balance sheet. Gross loans (excluding loans held for sale) were $2.33 billion at December 31, 2021, compared to $1.89 billion at September 30, 2021 and $2.08 billion at December 31, 2020. Gross loan growth for the quarter totaled $436.9 million and included $470.6 million in gross loans associated with the acquisition of Cortland (excluding Cortland’s PPP loans) offset by a decline in PPP loan balances of $26.3 million (inclusive of Cortland’s PPP loans) and a decline in other loan balances of $7.4 million which includes the sale of the Company’s credit card portfolio. The credit card portfolio had a balance of $3.0 million at the time of sale. At December 31, 2021, the Company has $37.5 million of PPP loans before deferred fees still to be forgiven and $1.3 million in net deferred fees associated with these loans still to be recognized into income.

Available for sale securities increased to $1.43 billion at December 31, 2021, an increase of $852.1 million from December 31, 2020. During 2021, the Company continued to deploy excess cash balances into securities. The Cortland acquisition in the fourth quarter was responsible for $130.6 million of the growth in the portfolio.

Total deposits at December 31, 2021, were $3.55 billion compared to $2.87 billion at September 30, 2021, and $2.61 billion at December 31, 2020. The growth, year over year, was due to $695.3 million in deposits obtained in the acquisition of Cortland and $241.1 million of organic growth, or 9.2% organically. After adjusting for Cortland in the fourth quarter, deposits shrank $14.5 million for the quarter.

Total stockholders’ equity increased to $472.4 million at December 31, 2021, compared to $377.5 million at September 30, 2021 and $350.1 million at December 31, 2020. The increase in stockholders’ equity was due to the Cortland acquisition and the Company’s earnings offset by dividends paid to common shareholders and changes in other comprehensive income.

Credit Quality

Non-performing loans to loans declined to 0.69% at December 31, 2021, compared to 0.78% at September 30, 2021. Early stage delinquencies, defined as 30-89 days past due, were $8.9 million, or 0.38% of total loans, at December 31, 2021, compared to $6.9 million, or 0.37% of total loans, for the prior quarter.

On January 1, 2021, Farmers adopted the Current Expected Credit Loss (“CECL”) model of accounting for credit losses. At adoption, Farmers recorded a $2.16 million increase to its allowance for loan losses and a $0.29 million increase to its reserve for off-balance sheet commitments for a combined $2.45 million, of which $1.94 million was recorded as a reduction to retained earnings with the remainder to deferred taxes. In connection with the Cortland acquisition, on November 1, 2021, Farmers recorded a $6.16 million increase to its allowance for loan losses, which was comprised of $4.87 million required to be recorded as a provision for credit losses related to non-purchased credit deteriorated loans and $1.29 million required to be recorded as a reduction of loan balances for purchased credit deteriorated loans.

Excluding the merger impact noted above, the fourth quarter 2021 results include net charge-offs of $313,000 and a provision for credit loss of $691,000 compared to net charge-offs of $197,000 and a provision expense of $3.0 million for the same period in 2020. As an overall percentage of loans, the allowance for credit losses increased to 1.26% at December 31, 2021, compared to 1.22% for the quarter ended September 30, 2021. Excluding the PPP loans, this allowance for credit losses to gross loans ratio increases to 1.28% (non-GAAP) as of December 31, 2021. Total net charge-offs as a percentage of average net loans outstanding was 6 basis points for the quarter ended December 31, 2021, compared to 4 basis points for the fourth quarter of 2020.

Net interest income

Net interest income was $29.7 million for the fourth quarter of 2021 compared to $25.8 million for the fourth quarter of 2020. The increase was due to growth in average interest earning assets, including the acquisition of Cortland, offset by a decline in net interest margin of 36 basis points. The net interest margin was 3.33% for the current quarter which is down from the 3.47% net interest margin reported in the third quarter of 2021 and lower than the 3.69% net interest margin reported in the fourth quarter of 2020. The decline in net interest margin in the fourth quarter of 2021 compared to the third quarter of 2021 was driven by the acquisition of Cortland and the issuance of subordinated debt, the proceeds of which were used to purchase securities. Excluding the impact of acquisition marks and related accretion and PPP interest and fees (non-GAAP), the net interest margin for the fourth quarter of 2021 was 3.21% compared to 3.37% for the third quarter of 2021 and 3.51% for the fourth quarter of 2020.

Noninterest income

Noninterest income declined to $9.5 million for the quarter ended December 31, 2021 compared to $10.5 million for the fourth quarter in 2020. Net gains on the sale of loans decreased to $1.7 million for the fourth quarter of 2021 compared to $3.6 million in the fourth quarter of 2020 due to lower origination volumes and tighter margins. In addition, security gains and other noninterest income were lower by $154,000 and $251,000, respectively, in the fourth quarter of 2021 compared to the same period in 2020. These declines have been partially offset by increases to service charges on deposit of $208,000, a 22.4% increase, trust fees of $559,000, a 28.7% increase, investment commissions of $161,000, a 35.8% increase, and an increase in bank owned life insurance (BOLI) income of $227,000 from the purchase of additional insurance in December 2020 and the addition of Cortland’s BOLI.

Noninterest expense

Total noninterest expense for the fourth quarter of 2021 increased to $27.7 million compared to $19.6 million in the fourth quarter of 2020. Excluding merger related costs and a $1.8 million prepayment penalty for the payoff of a $40 million FHLB advance, noninterest expense in the fourth quarter of 2021 was $19.3 million compared to $17.8 million of noninterest expense in the fourth quarter of 2020 after excluding merger related costs in that quarter. This increase in noninterest expense after adjusting for these items was primarily due to the acquisition of Cortland.

Covid Support Efforts

Farmers offered special financial assistance to support customers who were experiencing financial hardships related to the COVID-19 pandemic. The Company offered three month deferrals upon request by the borrowers, beginning in the middle of March, 2020 and concluding at the end of the three month deferral period. For those borrowers in industries that were greatly impacted by COVID-19, additional deferrals were considered and granted beyond the initial three month period. The range of deferred months for subsequent requests was three to nine months. The decline in deferred loans and balances was due to borrowers not requesting additional deferments and beginning to restart payments under the original terms of their loan. At December 31, 2021, Farmers had no customers still on deferral.

Farmers is also a preferred SBA lender and we dedicated significant additional staff and other resources to help our customers complete and submit their applications and supporting documentation for loans offered under the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, so that they could obtain SBA approval and receive funding as quickly as possible. During the initial 2020 period of the PPP program, the Company facilitated PPP assistance to 1,714 business customers totaling $199.8 million. The Company, on behalf of its customers, began processing borrower applications for PPP forgiveness at the beginning of September 2020. The SBA has up to ninety days to review an application for PPP forgiveness and provide a decision at the end of that review. Once forgiveness of the PPP loans has been communicated and payment is received from the SBA, the Company will record the cash received from the SBA, pay-off the loans based on the amount of forgiveness provided and accelerate the amount of net deferred loan fees/costs recognized for the portion of the PPP loans that are forgiven.

About Farmers National Banc Corp.

Founded in 1887, Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with $4.4 billion in banking assets. Farmers National Banc Corp.’s wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 48 banking locations in Mahoning, Trumbull, Columbiana, Portage, Stark, Wayne, Medina, Geauga and Cuyahoga Counties in Ohio and Beaver County in Pennsylvania, and Farmers Trust Company, which operates five trust offices and offers services in the same geographic markets. Total wealth management assets under care at December 31, 2021 are $3.1 billion. Farmers National Insurance, LLC, a wholly-owned subsidiary of The Farmers National Bank of Canfield, offers a variety of insurance products.

Non-GAAP Disclosure

This press release includes disclosures of Farmers’ tangible common equity ratio, return on average tangible assets, return on average tangible equity, net income excluding costs related to acquisition activities, net interest margin excluding acquisition marks and related accretion and PPP interest and fees, efficiency ratio less one-time expenses, and allowance for credit losses to gross loans, excluding PPP loans and acquired loans, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers’ marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures to their GAAP equivalents are included in the tables following Consolidated Financial Highlights below.

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Farmers’ financial condition, results of operations, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management’s current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Farmers’ control. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions, as well as any statements related to future expectations of performance or conditional verbs, such as “will,” “would,” “should,” “could” or “may.” Farmers’ actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Farmers’ actual results to differ materially from those described in the forward-looking statements include impacts from the COVID-19 pandemic, including further resurgence in the spread of COVID-19, on local, national and global economic conditions; higher default rates on loans made to our customers related to COVID-19 and its impact on our customers’ operations and financial condition; unexpected changes in interest rates or disruptions in the mortgage markets related to COVID-19 or other responses to the health crisis; impacts of the upcoming U.S. elections on the regulatory landscape, capital markets, and response to and management of the COVID-19 pandemic including further economic stimulus from the federal government; Farmers’ failure to integrate Cortland and Cortland Bank with Farmers in accordance with expectations; deviations from performance expectations related to Cortland and Cortland Bank; and the other factors contained in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2020 and subsequent Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and available on Farmers’ website (www.farmersbankgroup.com) and on the SEC’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Farmers does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Farmers National Banc Corp. and Subsidiaries

Consolidated Financial Highlights

(Amounts in thousands, except per share results) Unaudited

Consolidated Statements of Income	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31, 2021			Sept. 30, 2021			June 30, 2021			March 31, 2021			Dec. 31, 2020			Dec. 31, 2021			Dec. 31, 2020			Percent Change
Total interest income	$	31,685		$	28,375		$	28,609		$	27,790		$	28,833		$	116,459		$	112,327			3.7	%
Total interest expense		1,986			1,841			2,119			2,523			3,030			8,469			16,136			-47.5	%
Net interest income		29,699			26,534			26,490			25,267			25,803			107,990			96,191			12.3	%
Provision for credit losses		5,366			(948	)		50			425			3,000			4,893			9,100			-46.2	%
Noninterest income		9,538			9,015			9,508			10,132			10,499			38,193			36,161			5.6	%
Acquisition related costs		6,521			472			104			12			1,798			7,109			3,223			120.6	%
Other expense		21,140			16,656			16,966			17,305			17,796			72,067			69,757			3.3	%
Income before income taxes		6,210			19,369			18,878			17,657			13,708			62,114			50,272			23.6	%
Income taxes		508			3,358			3,303			3,101			2,351			10,270			8,396			22.3	%
Net income	$	5,702		$	16,011		$	15,575		$	14,556		$	11,357		$	51,844		$	41,876			23.8	%
Average diluted shares outstanding		32,074			28,361			28,353			28,336			28,322			29,280			28,394
Basic earnings per share		0.18			0.57			0.55			0.52			0.40			1.78			1.48
Diluted earnings per share		0.18			0.56			0.55			0.51			0.40			1.77			1.47
Cash dividends per share		0.14			0.11			0.11			0.11			0.11			0.47			0.44
Performance Ratios
Net Interest Margin (Annualized)		3.33	%		3.47	%		3.52	%		3.54	%		3.69	%		3.45	%		3.70	%
Efficiency Ratio (Tax equivalent basis)		63.61	%		46.04	%		45.70	%		47.76	%		50.07	%		51.13	%		52.55	%
Return on Average Assets (Annualized)		0.58	%		1.92	%		1.90	%		1.87	%		1.49	%		1.52	%		1.46	%
Return on Average Equity (Annualized)		5.24	%		16.93	%		17.17	%		16.81	%		13.10	%		13.64	%		12.80	%
Dividends to Net Income		82.99	%		19.41	%		19.95	%		21.35	%		27.30	%		27.11	%		29.62	%
Other Performance Ratios (Non-GAAP)
Return on Average Tangible Assets		0.60	%		1.97	%		1.93	%		1.87	%		1.52	%		1.55	%		1.48	%
Return on Average Tangible Equity		6.57	%		19.63	%		19.81	%		19.30	%		15.48	%		16.13	%		15.07	%

Consolidated Statements of Financial Condition
	Dec. 31, 2021		Sept. 30, 2021		June 30, 2021		March 31, 2021		Dec. 31, 2020
Assets
Cash and cash equivalents	$	112,790	$	79,808	$	149,357	$	326,385	$	254,621
Securities available for sale		1,427,677		1,183,361		996,271		802,866		575,600
Other investments		30,459		19,041		20,573		21,317		21,528
Loans held for sale		4,545		2,628		1,922		3,993		4,766
Loans		2,331,082		1,894,216		1,959,865		2,037,404		2,078,044
Less allowance for credit losses (a)		29,386		23,136		24,806		24,935		22,144
Net Loans		2,301,696		1,871,080		1,935,059		2,012,469		2,055,900
Other assets		265,582		161,129		156,876		157,494		158,733
Total Assets	$	4,142,749	$	3,317,047	$	3,260,058	$	3,324,524	$	3,071,148
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing	$	916,237	$	675,938	$	663,640	$	675,045	$	608,791
Interest-bearing		2,630,998		2,190,475		2,115,183		2,158,009		2,002,087
Total deposits		3,547,235		2,866,413		2,778,823		2,833,054		2,610,878
Other interest-bearing liabilities		87,758		49,649		78,369		79,683		78,906
Other liabilities		35,324		23,461		35,958		64,432		31,267
Total liabilities		3,670,317		2,939,523		2,893,150		2,977,169		2,721,051
Stockholders’ Equity		472,432		377,524		366,908		347,355		350,097
Total Liabilities and Stockholders’ Equity	$	4,142,749	$	3,317,047	$	3,260,058	$	3,324,524	$	3,071,148
Period-end shares outstanding		33,898		28,322		28,322		28,308		28,258
Book value per share	$	13.94	$	13.33	$	12.95	$	12.27	$	12.39
Tangible book value per share (Non-GAAP)*		10.91		11.61		11.23		10.53		10.63

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

Capital and Liquidity
Common Equity Tier 1 Capital Ratio (b)		13.13	%		14.58	%		13.95	%		13.49	%		13.22	%
Total Risk Based Capital Ratio (b)		17.56	%		16.25	%		15.54	%		15.10	%		14.72	%
Tier 1 Risk Based Capital Ratio (b)		13.79	%		15.18	%		14.39	%		13.93	%		13.67	%
Tier 1 Leverage Ratio (b)		10.11	%		10.17	%		9.70	%		9.69	%		9.77	%
Equity to Asset Ratio		11.40	%		11.38	%		11.25	%		10.45	%		11.40	%
Tangible Common Equity Ratio (c)		9.15	%		10.06	%		9.90	%		9.10	%		9.94	%
Net Loans to Assets		55.56	%		56.41	%		59.36	%		60.53	%		66.94	%
Loans to Deposits		65.72	%		66.08	%		70.53	%		71.92	%		79.59	%
Asset Quality
Non-performing loans	$	16,195		$	14,744		$	13,873		$	11,640		$	13,835
Other Real Estate Owned		0			0			30			30			0
Non-performing assets		16,195			14,744			13,903			11,670			13,835
Loans 30 - 89 days delinquent		8,891			6,944			7,606			7,183			9,297
Charged-off loans		470			411			502			284			387
Recoveries		157			125			323			200			190
Net Charge-offs		313			286			179			84			197
Annualized Net Charge-offs to
Average Net Loans Outstanding		0.06	%		0.06	%		0.04	%		0.02	%		0.04	%
Allowance for Credit Losses to Total Loans (a)		1.26	%		1.22	%		1.27	%		1.22	%		1.07	%
Non-performing Loans to Total Loans		0.69	%		0.78	%		0.71	%		0.57	%		0.67	%
Allowance to Non-performing Loans (a)		181.45	%		156.92	%		178.81	%		214.22	%		160.06	%
Non-performing Assets to Total Assets		0.39	%		0.44	%		0.43	%		0.35	%		0.45	%

(a) CECL methodology used during 2021. Prior periods used the incurred loss methodology.

(b) December 31, 2021 ratio is estimated

(c) This is a non-GAAP financial measure. A reconciliation to GAAP is shown below

	For the Three Months Ended
End of Period Loan Balances	Dec. 31, 2021		Sept. 30, 2021		June 30, 2021		March 31, 2021		Dec. 31, 2020
Commercial real estate	$	1,011,891	$	690,407	$	704,809	$	702,556	$	713,936
Commercial		313,836		302,356		351,261		406,064		404,492
Residential real estate		453,635		376,901		383,187		400,982		413,841
HELOC		127,433		106,750		107,153		107,501		110,352
Consumer		189,522		189,497		190,064		193,295		203,061
Agricultural loans		232,365		226,896		223,427		227,073		232,129
Total, excluding net deferred loan costs	$	2,328,682	$	1,892,807	$	1,959,901	$	2,037,471	$	2,077,811

	For the Three Months Ended												For the Twelve Months Ended
Noninterest Income	Dec. 31, 2021		Sept. 30, 2021		June 30, 2021			March 31, 2021			Dec. 31, 2020		Dec. 31, 2021			Dec. 31, 2020
Service charges on deposit accounts	$	1,138	$	924	$	790		$	808		$	930	$	3,660		$	3,682
Bank owned life insurance income		414		340		300			284			187		1,338			795
Trust fees		2,509		2,335		2,358			2,236			1,950		9,438			7,632
Insurance agency commissions		706		799		948			1,003			776		3,456			3,124
Security gains, including fair value changes		25		459		32			488			179		1,004			380
Retirement plan consulting fees		378		334		389			320			394		1,421			1,523
Investment commissions		611		638		523			504			450		2,276			1,530
Net gains on sale of loans		1,728		1,466		2,191			2,900			3,610		8,285			11,362
Other mortgage banking fee income, net		2		32		(55	)		(115	)		108		(136	)		(83	)
Debit card and EFT fees		1,424		1,227		1,322			1,171			1,061		5,144			4,264
Other noninterest income		603		461		710			533			854		2,307			1,952
Total Noninterest Income	$	9,538	$	9,015	$	9,508		$	10,132		$	10,499	$	38,193		$	36,161

	For the Three Months Ended										For the Twelve Months Ended
Noninterest Expense	Dec. 31, 2021		Sept. 30, 2021		June 30, 2021		March 31, 2021		Dec. 31, 2020		Dec. 31, 2021		Dec. 31, 2020
Salaries and employee benefits	$	10,230	$	9,321	$	9,866	$	9,976	$	9,638	$	39,393	$	39,826
Occupancy and equipment		2,422		1,899		1,890		2,275		2,060		8,486		7,254
State and local taxes		620		552		551		554		515		2,277		2,138
Professional fees		1,296		1,009		830		1,056		341		4,191		2,733
Merger related costs		6,521		472		104		12		1,798		7,109		3,223
Advertising		776		466		357		260		478		1,859		1,531
FDIC insurance		152		140		120		170		100		582		750
Intangible amortization		414		316		316		316		332		1,362		1,327
Core processing charges		880		860		831		627		831		3,198		3,551
Other noninterest expenses		4,350		2,093		2,205		2,071		3,501		10,719		10,647
Total Noninterest Expense	$	27,661	$	17,128	$	17,070	$	17,317	$	19,594	$	79,176	$	72,980

Business Combination

Consideration
Cash	$	29,618
Stock		98,921
Fair value of total consideration transferred	$	128,539
Fair value of assets acquired
Cash and cash equivalents	$	113,391
Securities available for sale		130,574
Other investments		16,092
Loans, net		482,168
Premises and equipment		12,644
Bank owned life insurance		21,547
Core deposit intangible		5,886
Current and deferred taxes		3,135
Other assets		7,805
Total assets acquired		793,242
Fair value of liabilities assumed
Deposits		695,274
Short-term borrowings		4,246
Long-term borrowings		4,262
Accrued interest payable and other liabilities		9,386
Total liabilities		713,168
Net assets acquired	$	80,074
Goodwill created		48,465
Total net assets acquired	$	128,539

Average Balance Sheets and Related Yields and Rates

(Dollar Amounts in Thousands)

	Three Months Ended December 31, 2021							Three Months Ended December 31, 2020
	AVERAGE BALANCE		INTEREST (1)		YIELD/ RATE (1)			AVERAGE BALANCE		INTEREST (1)		YIELD/ RATE (1)
EARNING ASSETS
Loans (2)	$	2,187,770	$	24,946		4.52	%	$	2,110,031	$	25,409		4.79	%
Taxable securities		892,563		3,948		1.75			223,306		1,335		2.38
Tax-exempt securities (2)		410,016		3,397		3.29			262,829		2,514		3.81
Other investments		26,475		142		2.13			15,138		128		3.36
Federal funds sold and other		114,496		39		0.14			237,357		67		0.11
Total earning assets		3,631,320		32,472		3.55			2,848,661		29,453		4.11
Nonearning assets		248,581							184,344
Total assets	$	3,879,901						$	3,033,005
INTEREST-BEARING LIABILITIES
Time deposits	$	379,786	$	697		0.73	%	$	458,340	$	1,591		1.38	%
Brokered time deposits		0		0		0.00			43,685		98		0.89
Savings deposits		736,732		202		0.11			489,071		236		0.19
Demand deposits - interest bearing		1,367,921		475		0.14			995,977		804		0.32
Short term borrowings		0		2		0.00			3,859		7		0.72
Long term borrowings		80,799		610		3.00			76,400		294		1.53
Total interest-bearing liabilities	$	2,565,238		1,986		0.31		$	2,067,332		3,030		0.58
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits - noninterest bearing		851,130							593,955
Other liabilities		31,824							26,769
Stockholders’ equity		431,709							344,949
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,879,901						$	3,033,005
Net interest income and interest rate spread			$	30,486		3.24	%			$	26,423		3.53	%
Net interest margin						3.33	%						3.69	%

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

(2) For 2021, adjustments of $86 thousand and $701 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2020, adjustments of $101 thousand and $519 thousand, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances.

	Twelve Months Ended December 31, 2021							Twelve Months Ended December 31, 2020
	AVERAGE BALANCE		INTEREST (1)		YIELD/ RATE (1)			AVERAGE BALANCE		INTEREST (1)		YIELD/ RATE (1)
EARNING ASSETS
Loans (2)	$	2,041,347	$	95,180		4.66	%	$	2,062,936	$	98,779		4.79	%
Taxable securities		617,475		11,399		1.85			209,817		5,423		2.58
Tax-exempt securities (2)		348,627		12,027		3.45			250,394		9,675		3.86
Other investments		21,912		498		2.27			16,073		543		3.38
Federal funds sold and other		180,718		201		0.11			124,447		298		0.24
Total earning assets		3,210,079		119,305		3.72			2,663,667		114,718		4.31
Nonearning assets		195,805							205,727
Total assets	$	3,405,884						$	2,869,394
INTEREST-BEARING LIABILITIES
Time deposits	$	393,039	$	3,652		0.93	%	$	480,302	$	8,083		1.68	%
Brokered time deposits		11,737		75		0.64			72,472		1,057		1.46
Savings deposits		569,179		712		0.13			462,021		1,080		0.23
Demand deposits - interest bearing		1,240,014		2,336		0.19			856,462		4,161		0.49
Short term borrowings		3,957		11		0.28			20,764		359		1.73
Long term borrowings		70,057		1,683		2.40			82,451		1,396		1.69
Total interest-bearing liabilities	$	2,287,983		8,469		0.37		$	1,974,472		16,136		0.82
NONINTEREST-BEARING LIABILITIES AND STOCKHOLDERS’ EQUITY
Demand deposits - noninterest bearing	$	714,978						$	546,177
Other liabilities		23,498							21,570
Stockholders’ equity		379,425							327,175
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,405,884						$	2,869,394
Net interest income and interest rate spread			$	110,836		3.35	%			$	98,582		3.49	%
Net interest margin						3.45	%						3.70	%

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

(2) For 2021, adjustments of $360 thousand and $2.5 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. For 2020, adjustments of $400 thousand and $2.0 million, respectively, were made to tax equate income on tax exempt loans and tax exempt securities. These adjustments were based on a marginal federal income tax rate of 21%, less disallowances.

Reconciliation of Total Assets to Tangible Assets

	For the Three Months Ended										For the Twelve Months Ended
	Dec. 31, 2021		Sept. 30, 2021		June 30, 2021		March 31, 2021		Dec. 31, 2020		Dec. 31, 2021		Dec. 31, 2020
Total Assets	$	4,142,749	$	3,317,047	$	3,260,058	$	3,324,524	$	3,071,148	$	4,142,749	$	3,071,148
Less Goodwill and other intangibles		102,606		48,670		48,985		49,301		49,617		102,606		49,617
Tangible Assets	$	4,040,143	$	3,268,377	$	3,211,073	$	3,275,223	$	3,021,531	$	4,040,143	$	3,021,531
Average Assets		3,879,901		3,304,708		3,280,316		3,155,695		3,033,005		3,405,912		2,869,394
Less average Goodwill and other intangibles		84,580		48,879		49,193		49,509		51,476		58,111		49,363
Average Tangible Assets	$	3,795,321	$	3,255,829	$	3,231,123	$	3,106,186	$	2,981,529	$	3,347,801	$	2,820,031

Reconciliation of Common Stockholders’ Equity to Tangible Common Equity

	For the Three Months Ended										For the Twelve Months Ended
	Dec. 31, 2021		Sept. 30, 2021		June 30, 2021		March 31, 2021		Dec. 31, 2020		Dec. 31, 2021		Dec. 31, 2020
Stockholders’ Equity	$	472,432	$	377,524	$	366,908	$	347,355	$	350,097	$	472,432	$	350,097
Less Goodwill and other intangibles		102,606		48,670		48,985		49,301		49,617		102,606		49,617
Tangible Common Equity	$	369,826	$	328,854	$	317,923	$	298,054	$	300,480	$	369,826	$	300,480
Average Stockholders’ Equity		431,709		375,208		363,753		351,190		344,949		379,425		327,175
Less average Goodwill and other intangibles		84,580		48,879		49,193		49,509		51,476		58,111		49,363
Average Tangible Common Equity	$	347,129	$	326,329	$	314,560	$	301,681	$	293,473	$	321,314	$	277,812

Reconciliation of Net Income, Less Merger and One-Time Items

	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31, 2021			Sept. 30, 2021			June 30, 2021			March 31, 2021			Dec. 31, 2020			Dec. 31, 2021			Dec. 31, 2020
Net income	$	5,702		$	16,011		$	15,575		$	14,556		$	11,357		$	51,844		$	41,876
Acquisition related costs - after tax		5,232			468			83			9			1,431			5,731			2,585
Acquisition related provision - after tax		3,846			0			0			0			0			3,846			0
FHLB prepayment penalties - after tax		1,425			257			0			0			0			1,682			666
Net loss (gain) on asset/security sales - after tax		134			(362	)		(26	)		(344	)		502			(598	)		404
Gain on sale of credit card portfolio - after tax		(189	)		0			0			0			0			(189	)		0
Net income - Adjusted	$	16,150		$	16,374		$	15,632		$	14,221		$	13,290		$	62,316		$	45,531
Diluted EPS excluding merger and one-time items	$	0.50		$	0.58		$	0.55		$	0.50		$	0.47		$	2.13		$	1.60
Return on Average Assets excluding merger and one-time items (Annualized)		1.65	%		1.97	%		1.91	%		1.83	%		1.74	%		1.83	%		1.59	%
Return on Average Equity excluding merger and one-time items (Annualized)		14.84	%		17.31	%		17.24	%		16.42	%		15.29	%		16.42	%		13.92	%
Return on Average Tangible Equity excluding acquisition costs and one-time items (Annualized)		18.46	%		19.91	%		19.93	%		19.12	%		17.97	%		19.39	%		16.39	%

Efficiency ratio excluding one-time items

	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31, 2021			Sept. 30, 2021			June 30, 2021			March 31, 2021			Dec. 31, 2020			Dec. 31, 2021			Dec. 31, 2020
Net interest income, after tax	$	30,492		$	27,256		$	27,192		$	25,901		$	26,423		$	110,840		$	98,582
Noninterest income		9,538			9,015			9,508			10,132			10,499			38,193			36,161
Net loss (gain) on asset/security sales		170			(458	)		(33	)		(436	)		635			(757	)		511
Gain on sale of credit card portfolio		(239	)		0			0			0			0			(239	)		0
Net interest income and noninterest income adjusted		39,961			35,813			36,667			35,597			37,557			148,037			135,254
Noninterest expense less intangible amortization		27,247			16,813			16,755			17,002			19,213			77,817			70,001
Acquisition related costs		6,521			472			104			12			1,798			7,109			3,223
FHLB prepayment penalties		1,804			325			0			0			0			2,129			0
Noninterest income adjusted		18,922			16,016			16,651			16,990			17,415			68,579			66,778
Efficiency ratio excluding one-time items		47.35	%		44.72	%		45.41	%		47.73	%		46.37	%		46.33	%		49.37	%

Net interest margin excluding acquisition marks and PPP interest and fees

	For the Three Months Ended															For the Twelve Months Ended
	Dec. 31, 2021			Sept. 30, 2021			June 30, 2021			March 31, 2021			Dec. 31, 2020			Dec. 31, 2021			Dec. 31, 2020
Net interest income, fully-taxable equivalent	$	30,486		$	27,256		$	27,192		$	25,901		$	26,423		$	110,836		$	98,582
Acquisition marks		496			(35	)		200			271			308			932			1,126
PPP interest and fees		979			1,402			2,097			2,144			2,456			6,621			4,914
Adjusted and annualized net interest income		115,098			102,712			99,854			95,249			93,865			103,283			92,542
Average earning assets		3,631,320			3,120,336			3,077,915			2,937,144			2,848,661			3,210,079			2,663,667
less PPP average balances		47,939			76,990			131,856			125,168			177,382			95,226			121,641
Adjusted average earning assets		3,583,381			3,043,346			2,946,059			2,811,976			2,671,279			3,114,853			2,542,026
Net interest margin excluding marks and PPP interest and fees		3.21	%		3.37	%		3.39	%		3.39	%		3.51	%		3.32	%		3.64	%

Reconciliation of Allowance for Credit Losses to Gross Loans, Excluding PPP Loans and Acquired Loans

	For the Three Months Ended
	Dec. 31, 2021			Sept. 30, 2021			June 30, 2021			March 31, 2020			Dec. 31, 2020
Gross Loans	$	2,331,082		$	1,894,216		$	1,959,865		$	2,037,404		$	2,078,044
PPP Loans, net		36,215			53,580			92,073			136,826			125,396
Loans less PPP		2,294,867			1,840,636			1,867,792			1,900,578			1,952,648
Allowance for Credit Losses to Gross Loans Excluding PPP (a)		1.28	%		1.26	%		1.33	%		1.31	%		1.13	%
Acquired Loans		654,552			211,954			233,790			251,616			272,150

(a) CECL methodology used for the 2021 quarters. Prior period used the incurred loss methodology.