Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Q1 2024 Earnings Presentation
21 slides from Farmers National Banc's earnings presentation, Apr 24, 2024
Slide 1: Q1 2024 Investor Presentation
Exhibit 99.2 FARMERS NATIONAL BANC CORP. Q1 2024 Investor Presentation NASDAQ: FMNB-
Slide 2: Disclosure Statement
|Disclosure Statement Forward-Looking Statements 1998 the conan, Fesuls of operations asset qually trends and protabity of Farmers Navonl Bane Corp, CFormers}) managements curent expectations ang forecasts of future events or longterm-goals, many of which by ther nature, are inerenty uncerain end ou
Slide 3: About Farmers National Banc Corp.
|About Farmers National Banc Corp. $5.1 billion in banking assets + $3.8 billion in wealth management assets under care $0.68 (5.5%) annualized dividend yield* + Nameda Best Employer in Ohio the past 2 ears** Founded in 1887 + 165 consecutive quarters of profitability Strong and diverse franchise cu
Slide 4: Local, Established & Experienced Leadership Team
| Local, Established & Experienced Leadership Team Kevin Helmick 52) cher ccuve Oteer Mark Wenick (64) Executive Vice President ‘Chet Wealen Management Ofcer Training + Source: Best Companies Group Executive vice President ‘Chief Informaton Officer Robust Succession Planning Talent Acquisition Reten
Slide 5: Farmers Strategic Vision
| Farmers Strategic Vision ragingour Le Invest in our Franchise + Leverage technology + Drive efficiencies through Six Sigma operating framework + Strive to be customer centric and provide exceptional experiences + Assure Farmers is the best place to work + Continued pursuit of organic and M&A oppor
Slide 6: Proven Acquisition History and Strategy
| Proven Acquisition History and Strategy seven enulalons inthe ast eight year Target franchises with similar le Compeling reputation, and r base Focus on businesses that support cross sell opportunities and diversify footprint into compelling banking markets Manageable initial tangible book value d
Slide 7: Financial Performance
FARMERS NATIONAL BANC CORP. Financial Performance NASDAQ: FMNB-
Slide 8: Balance Sheet Strengths
| Balance Sheet Strengths 3/31/24 12/31/23 3/31/23 Customer Deposits* $4.2 billion $4.2 billion $4.3 billion Cash Balances $148.6 million $103.7 million $128.0 million Loan-to-Deposit Ratio 75.8% 76.6% TI% Nonperforming Loans to Total Loans 0.38% 0.47% 0.57% 277.5% 228.6% 200.52% Allowance to Nonper
Slide 9: Core Results
|Core Results Overview + Robust fee businesses provide stability Core Return on Assets 199% | | 2020 2021 150% | 123% 22 2023 13% 4302 Core Net Income sass Core EPS 250 an 199 sar 105 150 100 soso soe sao | 20 aon wn an $002 FARMERS | « NATIONAL BANG CORP.
Slide 10: Loan Portfolio Overview
|Loan Portfolio Overview Overview Rate Type Segments + Total loans $3.2 billion Diverse loan mix Variable, 14% Fixed, 52% Adjustable, 34% Total Loans (in millions) Net Loans to Assets $3,000.00 es.% 63.0% 20% ‘$2,500.00 55.6% am | ‘am peud ol FARMERS | = CARI BANG CORP.
Slide 11: CRE
|CRE Overview + Well diversified portfolio + Strong credit culture + Independent loan review CRE Categories ort Retail S383 26% 16 Office $182,234 10% 6% Warehouse/industrial "$172,481 13% % Medical $153,805 11% 5% iMultifamil "$1519 11% 3% Speclrapore $98,062 7% 3% S 49097 a 2% ferme $3448 a 2% Mul
Slide 12: Asset Quality Trends
| Asset Quality Trends Overview aly-stagec delinquencies eres $14.1 million, oF 0.44% of total red to $16.7 million, or 0.5256 of loansat rch 31, 2024, cor ng practices + Sound reserve levels under CECL NPLs/Total Loans & Leases ($ in thousands) 20 mm NPLs 22 2023 NPL Total Loans Annualized Net Char
Slide 13: Securities Portfolio
|Securities Portfolio Overview of the Investment securities portfolio is categorized as valle forsale All MBS and CMOs are U.S. government agency issued All municipal securities are investment grade, majority with credit enhancements The duration of the available for sale securities portfolio is 7.0
Slide 14: Deposit Trends
| Deposit Trends Overview Customer Deposit Composition (in millions) Cus We are proud to say our bank is built on core deposits Total deposits: $4.2 billion Noninterest-bearing stood at 23.3% of total deposits istomer Deposit Composition (in millions) 53,151 221 arar2a Noninterestbeoring —slnterest-
Slide 15: Liquidity
Liquidity Farmers National Banc Corp. has the following sources of liquidity at the holding company as of March 31, 2024: + $49.5 million of cash and equivalents Farmers National Bank has the following sources of liquidity as of March 31, 2024: $146.7 million of cash and equivalents . ili the FHLB +
Slide 16: Net Interest Income and NIM Trends
| Net Interest Income and NIM Trends Overview Net Interest Income (in thousands) environment Net Interest Margin (annualized) 160000 140 0 120.0 10,000 30.000 $60,000 ‘40,000 30.000 = 220 2021 2022 2023 Loans to Deposits as 2 | l | | 2020 2021 zo non 4532 20a 22 a 45302
Slide 17: Noninterest Income Trends
| Noninterest Income Trends Overview Robust Trust, Wealth Management and Insurance businesses Diverse revenue sources Noninterest Income to Total Revenue* | a : a: : a: ; i: Total Noninterest Income* (in thousands) $50,000 40,000 $30,000 10,000 | s 2020 2021 2022 2023 45302 Components of Noninterest
Slide 18: Noninterest Expense Trends
| Noninterest Expense Trends Overview Overall focus on driving efficiencies underway + Track record of prudent expense management Noninterest Expense (in thousands) 120000 $100,000 $80,000 $60,000 $40,000 $20,000 i s Pe ee ee ee) Noninterest Expense to Average Assets © 2am 2006 age 20m 2.18% 20 ai m
Slide 19: Capital
| Capital Overview + Announced 1,000,000 share repurchase program in Q1 2023 + Strong dividend payout Total Risk Based Capital sare | Mowe SH 2020 2001 2022 ma ania estimate Tangible Equity to Tangible Assets 930% 95% mat m2 ma aR mrpteeouytotorgble ese Tier 1 Leverage Ratio | | eam 819% wom m2 mast
Slide 20: Appendix - Non GAAP Reconciliations
\Appendix - Non GAAP Reconciliations 21 2022 2023 saven2s 3 ss SORT Sa: TZ S731 3290 z 38 ci z : s16) - : : 18 co . 7 470 : : 1682 : : : 28) ou 2) 167s 183) - os Sse "Sse "Sera "S a8 Ss ives 133s 030 S25 1298 165 S03 Reported return on average assets (ennuaizes) eT Core return on average assets (ano
Slide 21: Appendix - Non GAAP Reconciliations
| Appendix - Non GAAP Reconciliations Less goodwit and other ntangbies ‘102606 101866 190,267 rangi Assets Sets S SeeasH S Hesse Fa Gross unreskzd iosses "3 27ge0 "$1178 $_286.487) ) $234.12) Tangle assets less gross unrealized gains (osses) EEPROM SE ‘Stocthoders'Eauty $ 380007 $ 472432 $ 252205 §
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