Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Investor Presentation (May 2013)
17 slides from Farmers National Banc's investor presentation, May 21, 2013
Slide 1: Investor Presentation March 31, 2013
1 Investor Presentation March 31, 2013 Canfield, OH NASDAQ: FMNB Exhibit 99.1
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: Investment Highlights
4 Added to the ABA NASDAQ Community Bank Index in December, 2011 Entered the Russell 3000, Russell 2000 and Russell MicroCap indices in June, 2012 Entered the MSCI U.S. Microcap Index on November 30, 2012 Rated one of the Top 200 Community Banks in 2013, by American Banker Magazine for the second co
Slide 5: Branch Map in Mahoning Valley
5 Founded over 126 years ago 19 branches and 17 ATMs Approximately 75 - 100 miles from Cleveland, Pittsburgh & Erie Branch Map in Mahoning Valley
Slide 6: Attractive Deposit Franchise - Deposit Market Share by MSA & County
6 Note: Deposit data as of June 30, 2012 Source: SNL Opportunity for growth with approximately 10.42% 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 Tri-Cou
Slide 7: Mahoning Valley resources and infrastructure investments
7 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 Resources and infrastructure within 100 miles of the Mahoning Valley Recently the Mahoning Valley has seen severa
Slide 8: Farmers' Strategy for Growth
8 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 9: Experienced Management Team
Established and experienced management team with over 240 years of combined experience, 114 of which has been with Farmers. Experienced Management Team * Includes years with Butler Wick Trust Company
Slide 10: Butler Wick acquisition, growth since 2009 and technology
10 March 2009 - opportunistic acquisition of Butler Wick Trust Company, the largest trust department in the Mahoning Valley Assets under management have grown approximately 67% since acquisition to $1 billion currently From December 31, 2009 through December 31, 2012 Revenue1 has grown $6.7 million
Slide 11: Butler Wick Trust Company Acquisition
11 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 67% since acquisition Contributed $5.5 million to non-int
Slide 12: Historical Operating Results
12 Meaningfully profitable every quarter during this cycle Always paid quarterly cash dividend Special additional $0.03 cash dividend payable on December 31, 2012 to shareholders of record as of December 14, 2012 High net interest margin which has exceeded national banks1 peer average 3.68% March 31
Slide 13: Continued Strong Results - Overview of Q1 2013
13 Improving Fee Income Growth Offsets Lower Net Income Noninterest income increased 5.7% from first quarter of 2012 121 consecutive quarters of positive earnings Net income for first quarter of 2013 is $2.0 million compared to $2.5 million for first quarter of 2012 Strong Capital Levels Tangible bo
Slide 14: Growing and Diverse Revenue Stream
14 Acquisition of Trust Company increased non-interest income by 10.72% since first quarter 20091 Growing and Diverse Revenue Stream Note: Revenue defined as net interest income plus non-interest income; Excludes $1.1MM net gain on securities 1 Calculated as Q4 2012 trust revenue / Q1 2009 total rev
Slide 15: Overview of Loan Portfolio
15 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 (March 31, 2013) Overview of Loan Portfolio No
Slide 16: Excellent Asset Quality
16 Excellent Asset Quality Note: Dollars in millions; Asset quality ratios exclude troubled debt restructuring 3/31/2013 Nonaccrual loans $7.0 Accruing loans past due 90 days or more 0.4 OREO 0.4 Total nonperforming assets (NPAs) $7.8 Troubled Debt Restructuring (TDR) $7.8 Loans 30-89 days delinquen
Slide 17: FMNB Comparative Valuation
17 FMNB Comparative Valuation Relative to similar sized Midwest banks and similar quality Nationwide banks, FMNB is undervalued Note: Peer data is the median value for the peer group; market data is as of May 16, 2013; all asset quality ratios exclude troubled debt restructurings 1 Selected Midwest
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