Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Investor Presentation (February 2013)
16 slides from Farmers National Banc's investor presentation, Feb 11, 2013
Slide 1: Farmers National Banc Corp. Investor Presentation
1 Farmers National Banc Corp. Canfield, OH (NASDAQ: FMNB) Investor Presentation December 31, 2012
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: Company overview and branch map
4 Founded over 126 years ago 19 branches and 17 ATMs Approximately 75 - 100 miles from Cleveland, Pittsburgh & Erie Branch Map in Mahoning Valley
Slide 5: Attractive Deposit Franchise - Deposit Market Share
5 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 6: Mahoning Valley economic investment and growth
6 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 several
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 236 years of combined experience, 110 of which has been with Farmers. Experienced Management Team * Includes years with Butler Wick Trust Company
Slide 9: Growth since 2009 and technology investments
9 March 2009 - opportunistic acquisition of Butler Wick Trust Company, the largest trust department in the Mahoning Valley Assets under management have grown approximately 60% since acquisition to $972 million currently From December 31, 2009 through December 31, 2012 Revenue1 has grown $6.7 million
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 60% since acquisition Contributed $5.5 million to non-int
Slide 11: Historical Operating Results
11 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 3.67% December
Slide 12: Continued Strong Results - Overview of Q4 2012
12 Improved Net Income and Strong Deposit Growth Net income for fourth quarter of 2012 increased 6% to $2.6 million from $2.5 million for the third quarter of 2012 120 consecutive quarters of positive earnings Deposits increased 9.4% from December 31, 2011 to December 31, 2012 Strong Capital Levels
Slide 13: Growing and Diverse Revenue Stream
13 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 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 Only 2.1% of loan portfolio is construction loans Loan Portfolio Mix (December 31, 2012) Overview of Loan Portfolio No
Slide 15: Excellent Asset Quality
15 Excellent Asset Quality Note: Dollars in millions; Asset quality ratios exclude troubled debt restructuring 12/31/2012 Nonaccrual loans $7.6 Accruing loans past due 90 days or more 0.6 OREO 0.3 Total nonperforming assets (NPAs) $8.5 Troubled Debt Restructuring (TDR) $7.6 Loans 30-89 days delinque
Slide 16: FMNB Comparative Valuation
16 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 February 7, 2013; all asset quality ratios exclude troubled debt restructurings 1 Selected Midw
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