Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Investor Presentation (October 2012)
16 slides from Farmers National Banc's investor presentation, Oct 3, 2012
Slide 1: Farmers National Banc Corp. Investor Presentation
1 Farmers National Banc Corp. Canfield, OH (NASDAQ: FMNB) Investor Presentation June 30, 2012 Exhibit 99.1
Slide 2: Disclosure Statement
2 Disclosure Statement Forward-Looking Statements This 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 growth Profitable throughout cycle and growing tangible book value per share Diversified and growing revenue streams Stable asset quality and strong core deposit franchise Strong capital position and did not take TARP CPP Operational excellence and brand
Slide 4: Company overview and branch map
4 Founded over 125 years ago 20 branches and 17 ATMs Approximately 75 - 100 miles from Cleveland, Pittsburgh & Erie Branch Map in Mahoning Valley
Slide 5: Attractive Deposit Franchise - Deposit Market Share
5 Note: Deposit data as of June 30, 2011 Source: FDIC Opportunity for growth with approximately 9.5% deposit market share in the Mahoning Valley Large 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 Profile Valley Leads in Industrial Job Growth in NE Ohio, The Vindicator Ohio's Economic Impact Study - September, 2011 Resources and infrastructure within 100 miles of the Mahoning Valley Recently the Mahoning Valley has seen several
Slide 7: Farmers' Strategy for Growth
7 Performance-driven culture Advancing automation and use of technology Metrics-oriented accountability Scaling organization to support growth Diligent risk management Expand fee-based business Integrate sales efforts Continue to drive name awareness Unification of brand Top graded talent to drive p
Slide 8: Experienced Management Team
8 Established and experienced management team with over 232 years of combined experience, 106 of which has been with Farmers. Experienced Management Team * Includes years with Butler Wick Trust Company
Slide 9: Growth since 2008 and acquisition of Butler Wick Trust
9 March 2009 - opportunistic acquisition of Butler Wick Trust Company, the largest trust department in the Mahoning Valley Assets under management have grown approximately 57% since acquisition to $956 million currently From December 31, 2008 through December 31, 2011 Revenue1 has grown $16.0 millio
Slide 10: Butler Wick Trust Company Acquisition
10 Butler Wick Trust Company Acquisition Acquired from United Community Financial Corporation for cash on March 31, 2009 Only locally owned trust company in the Mahoning Valley Rebranded to Farmers Trust Company Assets increased approximately 57% since acquisition Contributed $5.4 million to non-int
Slide 11: Historical Operating Results
11 Meaningfully profitable every quarter during this cycle Always paid quarterly cash dividend Special 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 3.85%
Slide 12: Continued Strong Results - Overview of Q2 2012
12 Improved Net Income and Strong Deposit Growth Net income for second quarter of 2012 increased 8% to $2.3 million from $2.1 million for the second quarter of 2011 118 consecutive quarters of positive earnings Deposits increased 15% from June 30, 2011 to June 30, 2012 Strong Capital Levels Tangible
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 securities 1 Calculated as Q4 2011 trust revenue / Q1 2009 total reve
Slide 14: Overview of Loan Portfolio
14 Diverse loan mix No national lending No sub-prime lending Farmers' practice is to lend primarily within its market area Less than 1% of loan portfolio is participations purchased Less than 2% of loan portfolio is construction loans Loan Portfolio Mix (June 30, 2012) Overview of Loan Portfolio Not
Slide 15: Excellent Asset Quality
15 Excellent Asset Quality Note: Dollars in millions; Asset quality ratios exclude troubled debt restructuring 6/30/2012 Nonaccrual loans $9.6 Accruing loans past due 90 days or more 0.3 OREO 0.4 Total nonperforming assets (NPAs) $10.3 Troubled Debt Restructuring (TDR) $6.5 Loans 30-89 days delinque
Slide 16: FMNB Comparative Valuation
FMNB Comparative Valuation Q Relative to similar sized Midwest banks and similar quality Nationwide banks, FMNB is undervalued zon: ts $500 sion - $2 changes (excludes OTCES and Pink Sheet uh Ine O58 CAB, FR, ED, ME, PONE, MCR, MS, WEA, Pa MEH FRY, FRE ALO. i Ast $800 ton - 52.0 Bion: No TATE /TA>=
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