Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Investor Presentation (February 2012)
16 slides from Farmers National Banc's investor presentation, Feb 14, 2012
Slide 1: Farmers National Banc Corp. Investor Presentation
1 Farmers National Banc Corp. Canfield, OH (NASDAQ: FMNB) Investor PresentationDecember 31, 2011
Slide 2: Disclosure Statement
2 Disclosure Statement Forward-Looking StatementsThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements express management's current expectations, forecasts of future events or long-term-goals and,
Slide 3: Investment Highlights
3 Sound franchise with many opportunities for growthProfitable throughout cycle and growing tangible book value per shareDiversified and growing revenue streamsStable asset quality and strong core deposit franchiseStrong capital position and did not take TARP CPPOperational excellence and brand deve
Slide 4: Branch Map in Mahoning Valley
4 Founded over 120 years ago18 branches and 17 ATMsApproximately 75 - 100 miles from Cleveland, Pittsburgh & Erie Branch Map in Mahoning Valley Erie Pittsburgh Youngstown Akron Cleveland Trumbull County Mahoning County Columbiana County Branch Locations Trust Locations Canton
Slide 5: Attractive Deposit Franchise - Deposit Market Share by MSA & County
5 Note: Deposit data as of June 30, 2011Source: FDIC Opportunity for growth with approximately 9.5% deposit market share in the Mahoning ValleyLarge regional competitors lack focus Community competitors inwardly focused Attractive Deposit Franchise - Deposit Market Share by MSA & County
Slide 6: Mahoning Valley economic investment and growth
6 Source: Regional Chamber, Youngstown-Warren, Ohio Metropolitan ProfileValley Leads in Industrial Job Growth in NE Ohio, The VindicatorOhio's Economic Impact Study - September, 2011 Resources and infrastructure within 100 miles of the Mahoning Valley Recently the Mahoning Valley has seen several im
Slide 7: Farmers' Strategy for Growth
7 Performance-driven cultureAdvancing automation and use of technologyMetrics-oriented accountability Scaling organization to support growthDiligent risk management Expand fee-based businessIntegrate sales efforts Continue to drive name awarenessUnification of brand Top graded talent to drive perfor
Slide 8: Experienced Management Team
8 Established and experienced management team with over 173 years of combined experience, 97 of which has been with Farmers Experienced Management Team
Slide 9: Growth since Butler Wick acquisition and technology platform
9 March 2009 - opportunistic acquisition of Butler Wick Trust Company, the largest trust department in the Mahoning ValleyAssets under management have grown approximately 52% since acquisition to $927 million currentlyFrom December 31, 2008 through December 31, 2011:Revenue1 has grown $16.0 million
Slide 10: Butler Wick Trust Company Acquisition
10 Butler Wick Trust Company AcquisitionAcquired from United Community Financial Corporation for cash on March 31, 2009Only locally owned trust company in the Mahoning ValleyRebranded to Farmers Trust CompanyAssets increased approximately 52% since acquisitionContributed $5.4 million to non-interest
Slide 11: Historical Operating Results
11 Meaningfully profitable every quarter during this cycle Always paid quarterly cash dividendSpecial one-time additional $0.03 cash dividend payable on February 28, 2012 to shareholders of record as of February 13, 2012.High net interest margin which has exceeded national banks1 peer average.4.01%
Slide 12: Continued Strong Results - Overview of Q4 2011
12 Net income for 2011 was up 3% to $9.2 million versus $9.0 million in 2010.Special one-time additional $0.03 cash dividend represents a 25% premium on the current $0.12 annual cash dividend.Investment commissions and trust fees for the fourth quarter of 2011 increased 15% and 7%, respectively, fro
Slide 13: Growing and Diverse Revenue Stream
13 Acquisition of Trust Company increased non-interest income by 9.90% since first quarter 20091 Growing and Diverse Revenue Stream Note: Revenue defined as net interest income plus non-interest income; Excludes $1.8MM net gain on securities1 Calculated as Q4 2011 trust revenue / Q1 2009 total reven
Slide 14: Overview of Loan Portfolio
14 Diverse loan mixNo national lendingNo sub-prime lendingFarmers' practice is to lend primarily within its market areaLess than 1% of loan portfolio is participations purchasedLess than 2% of loan portfolio is construction loans Loan Portfolio Mix (December 31, 2011) Overview of Loan Portfolio Note
Slide 15: Excellent Asset Quality
15 Excellent Asset Quality Note: Dollars in millions; Asset quality ratios exclude troubled debt restructuring 12/31/2011 Nonaccrual loans $10.7 Accruing loans past due 90 days or more 0.3 OREO 0.6 Total nonperforming assets (NPAs) $11.6 Troubled Debt Restructuring (TDR) $4.3 Loans 30-89 days delinq
Slide 16: Farmers has an Attractive Valuation
16 Relative to Comparable Midwest and National banks, Farmers is attractively valued Farmers has an Attractive Valuation Note: Peer data is the median value for the peer group; market data is as of February 6, 2012; asset quality ratios exclude troubled debt restructurings1 Selected Midwest Banks wi
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