Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Investor Presentation (February 2014)
24 slides from Farmers National Banc's investor presentation, Feb 13, 2014
Slide 1: Investor Presentation December 31, 2013
1 Investor Presentation December 31, 2013
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: Overview
3 Overview NASDAQ: FMNB Headquarters: Canfield, Ohio Stock Price: (12-31-13) $6.55 Market Cap: $122.98 million Dividend (yield): $0.12 (1.83%) 2013 Year-end Highlights 2013 Year-end Highlights Revenue $49.0 million Net Income $7.8 million Net Income per Diluted Share $0.41 Book Value $6.02 Total Ass
Slide 4: Who We Are
4 Who We Are Leading community bank in Ohio with deposit market share in the top ten in the core counties in which we operate Founded over 126 years ago 18 branches and 18 ATMs Sound franchise with many opportunities for growth Profitable throughout cycle and growing tangible book value per share Di
Slide 5: Attractive Deposit Franchise - Deposit Market Share by MSA & County
5 Note: Deposit data as of June 30, 2012 Source: SNL * Began Operations in Stark County in 2010 Opportunity for growth with approximately 10.60% deposit market share in the Mahoning Valley Large regional competitors lack focus - Community competitors inwardly focused Attractive Deposit Franchise - D
Slide 6: Growing Franchise
6 Rated one of the Top 200 Community Banks in 2013, by American Banker Magazine for the second consecutive year 5-Star, Superior Rating from the Bauer Financial Group - the highest rating awarded by the financial group. Listed in Top 100 Best Banks, $1B - $5B, as scored by Bank Director Magazine , J
Slide 7: Increasing Shareholder Value
7 Increasing Shareholder Value Stable Dividend Policy Always paid a quarterly cash dividend Current yield 1.83% Dividend payout in 2013 was 28.9% of net income Stock Up 82% Since '08
Slide 8: Headquartered in Mahoning Valley
8 Headquartered in Mahoning Valley Compelling Demographics Approximately 75 - 100 miles from Cleveland, Pittsburgh & Erie 6.8 million people 18 Fortune 500 company world headquarters 95 colleges and universities campus locations Northeast Ohio's manufacturing productivity is on track to outpace the
Slide 9: Industrial Growth Returning to The Valley
9 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 & 2012 Industrial Growth Returning to The Valley Steelmaker Vallourec's $650 million expansion - 350 jobs created
Slide 10: Farmers' Strategy for Growth
Farmers' Strategy for Growth Growth of Non Interest Income Through Wealth Management and Bank Fee Revenues Grow Loan Production Volume Technology and the Automated Virtual Bank Expense Control Company Culture Enterprise Risk Management Acquisition or "Lift Outs" Shareholder Management
Slide 11: Farmers' Family Billboard
11 Farmers' Family Billboard
Slide 12: Experienced Management Team
Established and experienced management team with over 206 years of combined experience, 99 of which has been with Farmers. Experienced Management Team
Slide 13: Growth Focus and Target Metrics
13 Focus for Growth Continued organic growth in current markets Growth opportunities in new markets with Private Banking, Trust and Investments Targeted acquisitions include fee-based business and banks Target Metrics for Acquisition Accretive to earnings near term (excluding one-time charges) Manag
Slide 14: Acquisitions to Enhance Fee-Based Revenue
14 Butler Wick Trust Company Acquisition Acquired for cash on March 31, 2009 Only locally owned trust company in the Mahoning Valley Rebranded to Farmers Trust Company Assets increased approximately 76% since acquisition Contributed $5.6 million to non-interest income in 2013 National Associates, In
Slide 15: Historical Operating Results
15 High net interest margin which has exceeded Midwest banks1 peer average 3.53% 4Q 2013 3.58% Year-end 2013 Strong record of profitability 124 consecutive quarters of profitability Average ROAA and ROAE from 2009 through 2013 of 0.79% and 8.32%, respectively ROAA impacted by investment into new mar
Slide 16: Continued Strong Results - Overview of Q4 2013
16 Net income per diluted share for three months ended December 31, 2013 was $0.12, compared to $0.09 for the third quarter, 2013 Efficiency ratio for the fourth quarter improved to 67.96%, compared to 72.48% for the same quarter in 2012 Loans increased 7.5% since December 31, 2012 Non-performing as
Slide 17: Growing and Diverse Revenue Stream
17 Growing and Diverse Revenue Stream Note: Revenue defined as net interest income plus non-interest income. Excludes $860m net gain on securities
Slide 18: Overview of Loan Portfolio
18 Diverse loan mix No national lending No sub-prime lending Farmers' practice is to lend primarily within its market area Less than 2% of loan portfolio is participations purchased Less than 3% of loan portfolio is construction loans Loan Portfolio Mix - December 31, 2013 Overview of Loan Portfolio
Slide 19: Excellent Asset Quality
19 Excellent Asset Quality Note: Dollars in millions; Asset quality ratios exclude troubled debt restructuring 12/31/2013 Nonaccrual loans $8.4 Accruing loans past due 90 days or more 0.7 OREO 0.2 Total nonperforming assets (NPAs) $9.3 Troubled Debt Restructuring (TDR) $8.3 Loans 30-89 days delinque
Slide 20: FMNB Comparative Valuation
Relative to similar sized Midwest banks and similar quality Nationwide banks, FMNB is undervalued FMNB Comparative Valuation Note: Peer data is the median value for the peer group; market data as of January 31, 2014; All asset quality ratios exclude troubled debt restructurings 1 Selected Midwest Ba
Slide 21: Supplemental Information
21 Supplemental Information
Slide 22: GAAP to Non-GAAP Reconciliation
22 GAAP to Non-GAPP Reconciliation Reconciliation of Common Stockholders' Equity to Tangible Common Equity Reconciliation of Common Stockholders' Equity to Tangible Common Equity Reconciliation of Common Stockholders' Equity to Tangible Common Equity Reconciliation of Common Stockholders' Equity to
Slide 23: Consolidated Statements of Income
23 Consolidated Statements of Income Consolidated Statements of Income For the Three Months Ended For the Three Months Ended For the Three Months Ended For the Three Months Ended For the Three Months Ended For the Twelve Months Ended For the Twelve Months Ended For the Twelve Months Ended Dec 31, Se
Slide 24: Consolidated Statements of Financial Condition
24 Consolidated Statements of Financial Condition Consolidated Statements of Financial Condition Consolidated Statements of Financial Condition Dec 31, Sept 30, June 30, March 31, Dec 31, 2013 2013 2013 2013 2012 Assets Cash and cash equivalents $27,513 $40,303 $26,587 $57,312 $37,759 Securities ava
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