Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Investor Presentation (October 2015)
26 slides from Farmers National Banc's investor presentation, Oct 23, 2015
Slide 1: Investor Presentation September 30, 2015
Investor Presentation September 30, 2015 Exhibit 99.2
Slide 2: FMNB - Legacy
FMNB - Legacy Financial Highlights at March 31, 2015 • Banking Locations: 19 • Assets: $1.13 billion • Loans: $673.78 million • Deposits: $909.41 million • Loan/Deposit Ratio: 74.09% • Tangible Common Equity: 10.50% • Market Capitalization: $150.77 million Strategic Objectives • Strong Capital Posit
Slide 3: FMNB-NBOH Merger
FMNB-NBOH Merger Financial Highlights at September 30, 2015 • Banking Locations: 33 • Assets: $1.71billion • Loans: $1.18 billion • Deposits: $1.33 billion • Loan/Deposit Ratio: 88.93% • Tangible Common Equity: 8.80% • Market Capitalization: $211.0 million Strategic Objectives • Creates the third la
Slide 4: FMNB-NBOH Combined with TSOH Acquisition
FMNB-NBOH Combined with TSOH Acquisition Pro Forma Financial Highlights • Banking Locations: 38 • Assets: $1.8 billion • Loans: $1.3 billion • Deposits: $1.5 billion • Loan/Deposit Ratio: 85.87% • Tangible Common Equity: 8.75% • Market Capitalization: $227 million Strategic Objectives • share with ~
Slide 5: About Farmers National Banc Corp.
About Farmers National Banc Corp. Stock Data – NASDAQ: FMNB as of 9/30/15 Operating Results for 3 Months Ended 9/30/15 Operating Results for 3 Months Ended 9/30/15 excluding One-time Acquisition Expenses • Stock Price: $8.22 • Dividend (yield): $0.03 (1.46%) • Cash Dividends: $770 thousand • Tangibl
Slide 6: Experienced Management Team
Experienced Management Team Years of Experience FMNB Industry • Established and experienced management team with over 300 years of combined experience, 130 of which has been with Farmers. President & Chief Executive Officer Kevin J. Helmick (43) 21+ 21+ Senior EVP, Chief Banking Officer Mark Witmer
Slide 7: New Locations - Alliance
New Locations - Alliance
Slide 8: New Locations - Fairlawn
New Locations - Fairlawn
Slide 9: Commitment to Stakeholders
Commitment to Stakeholders Arts 4% Civic 14% Education/Higher Education 19% Health & Wellness 15% Social Services 15% CRA 31% • Four Pillars – Shareholders o 2015 Strategic Initiative o Increased Communication Plan – Customers o Small Business Support o 45% of small business lending comes from commu
Slide 10: Increasing Shareholder Value
Increasing Shareholder Value Stable Dividend Policy • Consistently paid a quarterly cash dividend • Current yield 1.46% • Dividend payout range policy of 25% - 35% • Dividend payout 2015 YTD* is 38.42% of net income *As of September 30, 2015 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 15* $3.6
Slide 11: Utica Shale Impact
Utica Shale Impact Source: Debrosse Memorial Report, 2014 Ohio and Gas Activity in Ohio, Ohio Oil and Gas Association
Slide 12: Utica Shale Impact
Utica Shale Impact Source: Debrosse Memorial Report, 2014 Ohio and Gas Activity in Ohio, Ohio Oil and Gas Association
Slide 13: Farmers Virtual Branch
FARMERS VIRTUAL BRANCH == EXPLORE Hi FEATURES |) ONLINE BANKING LOG IN ) MOBILE ACCESS FARMERS: REWARDS CUSTOMER) SUPPORT ere
Slide 14: Mobile Banking Analytics
Mobile Banking Analytics Transactions • Account to Account Transfers • Bill Payments • Mobile Captures • Picture Payments Growth: 319% * Farmers’ Active Users: 82% Active User Target: 75%
Slide 15: Online Banking Analytics
Online Banking Analytics Transactions - Fiserv • Bill Pay • PopMoney • Account to Account Transactions • Same Day EBT • All Other Electronic Payments • Overnight Checks • All Other Paper Payments
Slide 16: Net Interest Income and Margin
Net Interest Income and Margin 3.58% 3.63% 3.64% 3.66% 3.84% Dollars in thousands $9,285 $9,243 $8,992 $9,749 $14,538 3.50% 3.55% 3.60% 3.65% 3.70% 3.75% 3.80% 3.85% 3.90% $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 3Q 2014 4Q 2014 1Q 2015 2Q 2015 3Q 2015 Net Interest Income Net I
Slide 17: Growing and Diverse Revenue Stream
Growing and Diverse Revenue Stream • Continued Focus on Growing Noninterest Income • Non-interest Revenue: 26.5% of Total Revenue *For the nine months ended September 30, 2015 71.7% 11.8% 10.0% 2.8% 3.7% Total Revenue 2015*: $49.4 million Net Interest Income Other Non-interest Income Trust Income In
Slide 18: Loan Growth
Loan Growth $572,903 $611,349 $646,981 $753,016 $430,000 $1,183,016 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 9/30/2012 9/30/2013 9/30/2014 9/30/2015 Total Loans Farmers Total Loans NBOH Acquisition YOY Growth: 6.71% YOY Growth: 5.83% YOY Growth: 82.85% Organic Growth:16.39% Growt
Slide 19: Overview of Loan Portfolio
Overview of Loan Portfolio Commercial Real Estate $394,614 33.4% Residential Real Estate $335,249 28.3% Consumer $177,881 15.0% Commercial & Industrial $224,559 19.0% • Diverse loan mix • No national lending • No sub-prime lending • Farmers’ practice is to lend primarily within its market area • Les
Slide 20: Excellent Asset Quality
Excellent Asset Quality Nonaccrual $8.7mm 81.3% Commercial Real Estate 41.3% Residential Real Estate 33.1% Commercial 21.6% Note: Dollars in millions; Asset quality ratios exclude troubled debt restructuring 9/30/2015 Nonaccrual loans $8.7 Accruing loans past due 90 days or more 0.9 OREO 1.1 Total n
Slide 21: Interest Rate Risk Management
Interest Rate Risk Management Percent Change in NII (FTE) ALCO Policy Limits Change in Interest Rates 12 Months 13 to 24 Months 12 Months 13 to 24 Months Change in Interest Rates Change in Eve ALCO Policy Limit • NII benefits from asset re-pricings in a rising rate environment – 50% of total loans a
Slide 22: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Reconciliation of Common Stockholders' Equity to Tangible Common Equity Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Stockholders' Equity $186,151 $182,575 $126,771 $123,560 $121,401 Less Goodwill and other intangibles 39,265 39,569 8,646 8,813 9,768 Tangible Commo
Slide 23: Consolidated Statements of Income
Consolidated Statements of Income Consolidated Statements of Income For the Three Months Ended For the Nine Months Ended Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Sept. 30, Sept. 30, Percent Change Total interest income $15,594 $10,753 $9,999 $10,321 $10,413 $36,346 $30,594 18.8% Total interes
Slide 24: Consolidated Statements of Financial Condition
Consolidated Statements of Financial Condition Consolidated Statements of Financial Condition Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Assets Cash and cash equivalents $34,344 $37,028 $26,929 $27,428 $28,294 Securities available for sale 379,138 386,319 369,919 389,829 404,895 Loans held for
Slide 25: Deposit Market Share by County: Trumbull, Columbiana, Mahoning
Trumbull Top 10 Deposit Market Share by County Columbiana Top 10 Mahoning Top 10 Rank Company Branches Dep. ($M) Market Share Huntington National Bank 548,131 19.99 JPMorgan Chase Bank NA 439,275 16.02 Talmer Bank and Trust 421,582 15.38 Cortland Savings and Banking Co. 349,257 12.74 PNC Bank NA 274
Slide 26: Deposit Market Share by County: Medina, Wayne, Stark
Deposit Market Share by County Medina Top 10 Wayne Top 10 Stark Top 10 Note: Market share data as of June 30, 2015 Source: SNL Rank Company Branches Dep. ($M) FirstMerit Bank NA 880,759 26.49 Westfield Bank FSB 484,825 14.58 Third Federal S&LA of Cleveland 345,471 10.39 PNC Bank NA 294,871 8.87 JPMo
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