Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Investor Presentation (September 2011)
16 slides from Farmers National Banc's investor presentation, Sep 15, 2011
Slide 1: Farmers National Banc Corp. Investor Presentation September 2011
1 Farmers National Banc Corp. Canfield, OH (NASDAQ: FMNB) Investor Presentation September 2011
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: Branch Map in Mahoning Valley
4 Founded over 120 years ago 18 branches and 16 ATMs Approximately 75 - 100 miles from Cleveland, Pittsburgh & Erie Branch Map in Mahoning Valley Erie Pittsburgh Youngstown Akron Cleveland Trumbull County Mahoning County Columbiana County Branch Locations Trust Locations Canton
Slide 5: Attractive Deposit Franchise - Deposit Market Share by MSA & County
5 Note: Deposit data as of June 30, 2010 Source: FDIC Opportunity for growth with approximately 7% 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 resources, infrastructure and recent investments
6 Source: Regional Chamber, Youngstown-Warren, Ohio Metropolitan Profile Resources and infrastructure within 100 miles of the Mahoning Valley Recently the Mahoning Valley has seen several important investments in new business including: July 27, 2010 the Regional Chamber and the International Trade
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 173 years of combined experience, 97 of which has been with Farmers Experienced Management Team
Slide 9: Growth and investments since 2008
9 March 2009 - opportunistic acquisition of Butler Wick Trust Company, the largest trust department in the Mahoning Valley Assets under management have grown approximately 59% since acquisition to $968 million currently From December 31, 2008 through December 31, 2010: Revenue1 has grown $5.2 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 59% since acquisition Contributed $4.9 million to non-int
Slide 11: Historical Operating Results
11 Meaningfully profitable every quarter during this cycle Always paid quarterly cash dividend High net interest margin which has expanded every year since 2006 4.10% December 31, 2010 Strong record of profitability Average ROAA and ROAE from 2006 through 2010 of 0.75% and 8.60%, respectively Contin
Slide 12: Continued Strong Results - Overview of Q2 2011
12 Net Income was $2.1 million or $0.11 per diluted share for the second quarter of 2011 compared to $2.0 million or $0.15 per diluted share, for the second quarter of 2010. Trust fees and investment commissions for the second quarter of 2011 increased 14% and 104%, respectively, from the second qua
Slide 13: Growing and Diverse Revenue Stream
13 2010 net interest income increased 13% over prior year period due to increase in loan balances and lower cost of funds Acquisition of Trust Company increased non-interest income by 13.8% since first quarter 20091 Growing and Diverse Revenue Stream Note: Revenue defined as net interest income plus
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, 2011) 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 6/30/2011 Nonperforming loans (NPLs) $7.8 Accruing loans past due 90 days or more 0.8 OREO 0.1 Total nonperforming assets (NPAs) $8.7 Troubled Debt Restructuring (TDR) $3.4 Loans 30-89 days
Slide 16: Farmers is attractively valued relative to peers
16 Note: Peer data is the median value for the peer group; market data is as of July 8, 2011; asset quality ratios exclude troubled debt restructurings 1 Midwest Banks with Assets $800 Million - $2.0 Billion includes PEBO, SYBT, QCRH, MBWM, PBIB, MCBC, WTBA, MOFG, BKYF, FBMI, HBNC, GABC, MBTF, HWBK,
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