Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Shareholder Meeting (April 2012)
45 slides from Farmers National Banc's shareholder meeting presentation, Apr 26, 2012
Slide 1: Annual Shareholders' Meeting April 26, 2012
Exhibit 99.3 Annual Shareholders' Meeting April 26, 2012
Slide 2: Forward Looking Safe Harbor Statement
FORWARD LOOKING s ~ SAFE HARBOR STATEMENT Discussions in this presentation that ae not statements of historical f that include terms suchas “wil,” “may,” “should “believe,” “ “projec.” intend," and “pla”) are’ forward-looking sit frre rls coud fer mately fo those cs cautioned not ance on those forwa
Slide 3: Carl D. Culp, Executive Vice President, Chief Financial Officer
Carl D. Culp Executive Vice President Chief Financial Officer 3
Slide 4: Return on Average Assets
Return on Average Assets 4 Source: SNL Financial 1: Publicly traded banks with headquarters in Ohio 1
Slide 5: Return on Average Equity
Return on Average Equity 5 Source: SNL Financial 1: Publicly traded banks with headquarters in Ohio 1
Slide 6: Net Interest Margin
Net Interest Margin 6 Source: FDIC 1: Commercial Banks with assets between $1 Billion and $3 Billion. 1
Slide 7: Yield on Earning Assets
Yield on Earning Assets 7 Source: FDIC 1: Commercial Banks with assets between $1 Billion and $3 Billion. 1
Slide 8: Cost of Funds
Cost of Funds 8 Source: FDIC 1: Commercial Banks with assets between $1 Billion and $3 Billion. 1
Slide 9: Growing and Diverse Revenue Streams
Growing and Diverse Revenue Streams 9 Fee income is less credit risk sensitive than interest income Farmers capitalizes on relationship management Trust income accounts for almost half of last twelve months non-interest income
Slide 10: Efficiency Ratio
Efficiency Ratio 10 Source: SNL Financial 1: Publicly traded banks with headquarters in Ohio 1
Slide 11: Low Cost and Predominantly Core Deposit Funding
Low Cost and Predominantly Core Deposit Funding 11 Core deposits represent approximately 88% of total deposits Q4 11 deposit composition: Savings & Money Market: 45%; Time Deposits: 30%; Demand & NOW: 25% Less than 12% of total funding was wholesale deposits or FHLB advances at 12/31/11. *CAGR (Comp
Slide 12: Diverse Loan Mix
12 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 (December 31, 2011) Note: Dollars in thousands
Slide 13: Net Charge-Offs to Average Loans
Net Charge-Offs to Average Loans 13 Source: FDIC 1: Commercial Banks with assets between $1 Billion and $3 Billion. 1
Slide 14: Nonperforming Assets as a % of Total Assets
Nonperforming Assets as a % of Total Assets 12/31/11 14 Source: FDIC 1: Commercial Banks with headquarters in Ohio. 2: Bank holding companies with assets between $1 Billion and $3 Billion 1 2
Slide 15: Highlights of First Quarter 2012
Highlights of First Quarter 2012 15 Net Income increased 49% to $2.5 million or $0.13 per diluted share for the first quarter of 2012 compared to $1.7 million or $0.10 for the first quarter of 2011. Improved credit quality resulted in a lower loan loss provision. Continued improvement in noninterest
Slide 16: Turning Technologies: How many presidents has Farmers had?
Turning Technologies How many presidents has Farmers National Banc Corp. had in our 125 year history? 8 9 10 11 16
Slide 17: John S. Gulas, President & Chief Executive Officer
John S. Gulas President & Chief Executive Officer 17
Slide 18: Turning Technologies: Stock increase over last year
Turning Technologies What percent did our stock increase in value over the last year? 9% 19% 29% 39% 18
Slide 19: 2011 Highlights: January 2011 - December 2011
2011 Highlights 19 January 2011 - December 2011: +39.44% Source: SNL Financial
Slide 20: 2011 Highlights: January 2012 - March 2012
2011 Highlights 20 January 2012 - March 2012: +31.11% Source: SNL Financial
Slide 21: Turning Technologies: NASDAQ trading start date
Turning Technologies On what day did Farmers National Banc Corp. begin trading its common shares on NASDAQ? July 15, 2011 August 15, 2011 September 15, 2011 October 15, 2011 21
Slide 22: 2011 Highlights
2011 Highlights 22
Slide 23: Turning Technologies: New locations announced
Turning Technologies How many new locations did Farmers National Banc Corp. announce in the past year? 0 1 2 3 23
Slide 24: Canton
Canton AY I __Stoewnner Properties
Slide 25: Howland, 1625 Niles-Cortland Rd., Warren, OH
Howland 25 1625 Niles-Cortland Rd., Warren, OH 44484
Slide 26: McClurg Road
McClurg Road 26
Slide 27: Turning Technologies: Youngstown State ATM location
Turning Technologies Where is the Farmers National Bank ATM located on the Youngstown State University campus? Jones Hall Beeghly Center Williamson College of Business Cushwa Hall 27
Slide 28: 2011 Highlights: Youngstown State University ATM
2011 Highlights Youngstown State University ATM located in Beeghly Center Special checking account offer to students Participated in Welcome Week 28
Slide 29: 2011 Highlights: Farmers Shale Resource Team
2011 Highlights Farmers Shale Resource Team Staffed with banking professionals, accountants and investment experts Expertise needed to assess a customer's needs managing new shale profits and assets, monitor marketplace conditions and present customers with savings and investment options 29
Slide 30: 2011 Highlights: Focus on Fee Income
2011 Highlights Focus on Fee Income Farmers Trust Company $912 Million to $950 Million in Assets under Management Farmers National Insurance Over 280 Property and Casualty Insurance policies sold since March 2010 80 Medicare policies sold during the 2011 Open Enrollment Farmers National Investments
Slide 31: 2012 Strategic Initiatives: Expand Asset Base
2012 Strategic Initiatives Expand Asset Base through Acquisition, Loan and Core Deposit Growth Organic Growth De Novo Acquisition 31
Slide 32: 2012 Strategic Initiatives: Diversify Financial Services
2012 Strategic Initiatives Diversify Financial Services and Expand Non- Interest Income Mortgage Private Banking Farmers Trust Company Farmers National Investments Farmers National Insurance FAST 32
Slide 33: 2012 Strategic Initiatives: Leverage Technology
2012 Strategic Initiatives Leverage Technology Expand asset base and leverage technology by creating a virtual branch Loan Applications Deposit Applications Mobile Banking E-statements Entering into Social Media 33
Slide 34: 2012 Strategic Initiatives: Brand Enhancement
2012 Strategic Initiatives Brand Enhancement Utilize brand awareness to acquire customers from competition and new economic resurgance 125 Year Anniversary Bride & Groom Survey 34
Slide 35: Billboard December, 2010 February, 2011
224 Billboard December, 2010 February, 2011
Slide 36: Billboard April, 2011
224 Billboard April, 2011 NATIONAL BANK a FARMERS STAND STRONG
Slide 37: Billboard October, 2011
224 Billboard What's next for our Farmers' Billboard Couple? • Baby: 9.3% • Honeymoon: 19.0% • New car: 9.0% • New home: 22.2% • Pet: 40.5% October, 2011
Slide 38: Billboard November, 2011
224 Billboard November, 2011 • Ugly Holiday Sweater Contest received 5,273 votes
Slide 39: Turning Technologies: What is next for the mannequins?
Turning Technologies What is next for the mannequins? Baby House Car Vacation 39
Slide 40: Billboard
224 Billboard
Slide 41: Turning Technologies: Overall customer satisfaction rate
Turning Technologies What is Farmers National Bank's overall customer satisfaction rate? 82% 87% 92% 97% 41
Slide 42: Survey Results
Survey Results Customer and Employee Surveys Conducted in January 2012 Survey Satisfaction Rates Personal Customers: 97.13% Business Customers: 96.10% Overall: 97.03%
Slide 43: 2012 Strategic Initiatives: Risk Management and Asset Quality
2012 Strategic Initiatives Risk Management and Asset Quality Expand asset base with enhanced loan product set SBA SWAP Utica Shale 43
Slide 44: 2012 Strategic Initiatives: Attract, Develop and Retain Quality People
2012 Strategic Initiatives Attract, Develop and Retain Quality People Key Positions Hired in 2011 and 2012 Farmers National Bank Chief Lending Officer, Joseph Gerzina Commercial Lending Team Leader, Tim Shaffer Mortgage Manager, Christopher Willoughby Mortgage Lending Team Leader, Rocco Page Mortgag
Slide 45: Questions and Answers
Questions and Answers
Farmers National Banc — Shareholder Meeting (April 2012) on 6ix