Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Shareholder Meeting (April 2016)
19 slides from Farmers National Banc's shareholder meeting presentation, Apr 21, 2016
Slide 1: Annual Meeting of Shareholders
Thursday, April 21, 2016 Annual Meeting of Shareholders Exhibit 99.1
Slide 2: Forward Looking Statements ~ Safe Harbor Statement
FORWARD LOOKING STATEMENTS ~ SAFE HARBOR STATEMENT Discussions in this presentation that are not statements of historical fact (including statements that include terms such as “will,” “may,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “project,” intend,” and “plan”) are’ forward-looking
Slide 3: Stakeholders
Stakeholders Shareholders Customers Associates Community
Slide 4: Why are Community Banks so Important?
Why are Community Banks so Important? Community Banks: • Focus attention on the needs of local families and businesses • Use local deposits to make loans to the neighborhoods where their depositors live and work • Officers are generally accessible to their customers on site with decisions on loans b
Slide 5: Why are Community Banks so Important?
Why are Community Banks so Important? Community Banks: • Are willing to consider important attributes such as a person’s character when making loans • Are themselves small businesses, so they understand the needs of small business owners • Board of directors are made up of local citizens who want to
Slide 6: Farmers Footprint
Farmers Footprint Financial Highlights - December 31, • Banking Locations: 38 • Assets: $1.9 billion • Loans: $1.3 billion • Deposits: $1.4 billion • Loan/Deposit Ratio: 92.0% • Tangible Common Equity: 8.5% • Market Capitalization: $232 million Mergers/Acquisitions • National Bancshares: Closed June
Slide 7: Total Return Performance
Total Return Performance 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 03/31/16 Total Return Performance Farmers National Banc Corp. Dow Jones Industrial Average NASDAQ Composite S&P 500 Russell 2000
Slide 8: Total Return Performance
Total Return Performance 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 03/31/16 Total Return Performance Farmers National Banc Corp. NASDAQ Bank SNL Midwest Bank SNL Microcap Bank
Slide 9: Strategic Focus – Investment in Technology
Strategic Focus – Investment in Technology Online Banking Mobile Banking ApplePay/Tokenization EMV/Chip Card
Slide 10: Strategic Focus - Investment in Technology
Strategic Focus - Investment in Technology 3,389 8,515 Mobile Banking Users YOY Growth: 151% YOY Growth: 149% 7,084 17,620 Mobile Transactions
Slide 11: Strategic Focus - Investment in Technology
Strategic Focus - Investment in Technology YOY Growth: 60% 16,978 27,128 Online Banking Transactions 17,039 24,380 Online Banking Users YOY Growth: 43%
Slide 12: Future Focus – Growing Deposits
Future Focus – Growing Deposits • 2016 Initiative • Huntington/First Merit disruption • Loan/Deposit ratio 72.50% 74.09% 85.94% 88.93% 92.04% 50.00% 60.00% 70.00% 80.00% 90.00% 100.00% 12/31/14 3/31/15 6/30/15 9/30/15 12/31/15 Loan/Deposit Ratio
Slide 13: Financial Overview
Financial Overview 12/31/15 12/31/14 • Strong capital position – 8.5% tangible common equity ratio • Experienced senior management team – Over 300 years of combined experience – 134 with Farmers Assets $1.87 billion $1.14 billion Total loans $1.30 billion $663.90 million Total deposits $1.41 billion
Slide 14: Historical Operating Results
Historical Operating Results 3.63% 3.64% 3.66% 3.84% 3.99% • Improving net interest margin – Low cost core deposit funding – Shift in asset mix from securities to loans Net Interest Income and Margin $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 4.05% 4.00% 3.95% 3.90% 3.85% 3.
Slide 15: Continued Strong Results – 2015 Overview
Continued Strong Results – 2015 Overview 2015 2014 % Increase (Decrease) Net income per share $0.36 $0.48 (25.00%) Net income per share, excluding merger costs $0.57 $0.48 18.75% Noninterest income $18,306 $15,303 19.62% Net interest income $49,737 $36,336 36.88% Efficiency ratio 75.26% 70.24% 7.15%
Slide 16: Non Interest Income
Non Interest Income • Wealth Management creates fee-based income – Fee Income 2009: 14.5% of total gross income o Noninterest income excluding security gains – Fee Income 2015: 25.2% of total gross income o Noninterest income excluding security gains 74.7% 9.8% 8.6% 2.4% 3.0% 1.5% Total Revenue 2015
Slide 17: Loan Growth
Loan Growth $586,592 $630,684 $663,852 $430,000 $66,000 $1,296,865 $800,865 YOY Growth: 5.26% $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 12/31/2012 12/31/2013 12/31/2014 12/31/2015 Total Loans Farmers Total Loans NBOH Acquistion TSOH Acquisition YOY Growth: 7.52% YOY Gro
Slide 18: Overview of Loan Portfolio
Overview of Loan Portfolio Consumer $185,077 14.3% Commercial & Industrial $230,748 17.8% Commercial Real Estate $454,302 35.0% Residential Real Estate $379,816 29.3% • Diverse loan mix • No national lending • No sub-prime lending • Farmers’ practice is to lend primarily within its market area • Les
Slide 19: Excellent Asset Quality
Excellent Asset Quality Nonaccrual $9.1mm 79.5% Commercial Real Estate 42.8% Residential Real Estate 34.4% Note: Dollars in millions; Asset quality ratios exclude troubled debt restructuring 12/31/2015 Nonaccrual loans $9.1 Accruing loans past due 90 days or more 1.4 OREO 0.9 Total nonperforming ass
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