Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Q3 2020 Earnings Presentation
23 slides from Farmers National Banc's earnings presentation, Nov 16, 2020
Slide 1: Q3 2020 Investor Presentation
Nasdaq: FMNB | Q3 2020 Investor Presentation Exhibit 99.1
Slide 2: Disclosure Statement and Forward-Looking Statements
Disclosure Statement Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the financial condition, results of operations, asset quality trends and profitability of Farm
Slide 3: About Farmers National Banc Corp.
About Farmers National Banc Corp. * Source: Bank Director Magazine 2018 Bank Performance Scorecard ** Source: Best Companies Group *** Stock data as of October 31, 2020 $3 billion in banking assets $2.5 billion in wealth management assets under care Book value has increased at a 10% 5-year CAGR $0.4
Slide 4: Relationship-driven organization creating Win-Wins
We are a relationship-driven organization, we view winning differently than other banks. We are in it to create Win-Wins for our bank, customers communities and shareholders. Standing Strong for our Customers Relationship Based Values 4 Maintain Financial Strength to Foster Financial Flexibility for
Slide 5: Standing Strong for our Communities
Standing Strong for our Communities We are focused on protecting the health and safety of our associates and customers, while providing essential financial resources to our communities. Customers Developed payment relief initiatives and programs Waiving certain account fees Supporting small business
Slide 6: Standing Strong for our Customers: COVID-19 Assistance
Total PPP funded loans was nearly $200 million Average loan size was $116,566 Assisted over 1,700 small business customers PPP efforts helped protect over 25,000 jobs At November 13, 2020, the Company had received payments from the SBA for forgiveness of loans totaling $28.8 million, or approximatel
Slide 7: Ohio market and deposit rank
Deposit rank according to FDIC market share report at June 30, 2020 (2) January 2020 Office of Research, Ohio Development Services Agency One of the largest community banks in Ohio ranked by deposits and 18th largest bank overall by deposits According to a January 2020 study from the State of Ohio,
Slide 8: Big Bank Capabilities, Local Bank Service
Retail Banking Consumer Loans Mortgage Loans Online & Mobile Banking Dedicated Lab Branch Interactive Teller Machines (ITMs) Business Loans Business Checking Business Mobile Banking Treasury Management Agricultural Lending Private Banking Trust Services Investment Services Insurance Services Retirem
Slide 9: Diverse Revenue Streams
LTM Fee Income LTM Sources of Income (in thousands) Diverse Revenue Streams Noninterest income to total revenue for the 2020 third quarter was 25.6%, compared to 22.6% for the 2019 third quarter Diverse sources of noninterest income insulates the company’s income statement from benchmark rate volati
Slide 10: Training, talent acquisition and succession planning
Training Farmers Academy In-house leadership/management training program Ohio Bankers League Bank Management School Talent Acquisition Comprehensive recruitment program High percentage of referrals come from our employees Retention of key executives Current executive team has been with the bank for
Slide 11: Farmers Strategic Vision
Leverage technology Drive efficiencies through Six Sigma operating framework Strive to be customer centric and provide exceptional experiences Assure Farmers is the best place to work Continued pursuit of organic and M&A opportunities Strive for performance metrics in top quartile ranking vs. peer g
Slide 12: Proven Acquisition History and Strategy
Graph in millions As of June 30, 2020 Farmers Trust Company (2009) Farmers National Insurance (2008) Private Client Services (2012) National Associates (2013) National Bancshares (2015) Bowers Insurance (2017) Tri-state 1st Banc (2016) Monitor Bancorp (2018) Maple Leaf (2019) Current management team
Slide 13: Harnessing Modern Banking Technology
Harnessing Modern Banking Technology 13 Farmers’ Lab Branch New technologies, video tellers, and ITMs connected to centralized support specialists Focus on digital innovations and customer experience Insights gained will aid in rolling out new technology and services company-wide Embracing digital m
Slide 14: Financial Performance
* “FARMERS kh NATIONAL BANC CORP. Financial Performance
Slide 15: Performance vs. Peer
Peer group includes: ASRV, CCNE, CHMG, CIVB, CTBI, GABC, HBNC, ISBA, LCNB, MBWM, MCBC, PEBO, PFC, and SMMF Peer group data according to SNL data, Farmers data as reported Q3 2020 Performance vs. Peer Platform, Experience, & Strategy Drives Performance 15
Slide 16: Deposit Trends
Overview Deposit Trends ($ in millions) Deposit Composition (in millions) Core Deposits to Total Deposits We are proud to say our bank is built on core deposits Total deposits increased 24.4% to $2.54 billion Non-brokered deposits increased 28.9% to $2.5 billion Noninterest-bearing stood at 22.7% of
Slide 17: Loan Portfolio Overview
Loans by Industry Type Net Loans (in millions) Net Loans to Assets Overview Total loans increased 20.4% to $2,147 billion Organic loan growth was 10.1% Diverse loan mix Farmers’ practice is to lend primarily within its market area Less than 2% of loan portfolio is participations purchased Less than
Slide 18: Asset Quality Trends
ALLL to NPL NPLs / Total Loans & Leases ($ in thousands) Early stage delinquencies were $10.1 million or 0.47% of the loan portfolio The average FICO score of our indirect lending portfolio was 769 and the average FICO score of our consumer loan portfolio was 757. Excluding PPP loans, our allowance
Slide 19: Net Interest Income and NIM Trends
Net Interest Income After Provision for Loan Losses Net Interest Margin (annualized) FMNB vs. Peer (most recent quarter) Overview Farmers’ model produces strong net interest income, and the company has a history of outperforming its peer group’s yield on loans and cost of funds Outperforming peer gr
Slide 20: Noninterest Income Trends
Total Noninterest Income (in thousands) Noninterest Income to Total Revenue Components of Noninterest Income (in thousands) Overview From 2009 to 2019, noninterest income has increased at an 11.8% CAGR Internal sales programs to unify focus and identify opportunities The 2015 acquisition of National
Slide 21: Noninterest Expense Trends
Noninterest Expense (in thousands) Efficiency Ratio Number of full-time employees has remained stable over the past 12 months Overall focus on driving efficiencies Profit improvement committee meets biweekly to discuss efficiency initiatives Noninterest Expense to Quarterly Avg. Assets Overview Noni
Slide 22: Capital and Liquidity
Capital and Liquidity (at September 30, 2020) Loans to Deposits Total Risk Based Capital Equity to Asset Ratio Overview Total risk-based capital well above well capitalized threshold $340.0 million in total shareholders’ equity Loan growth funded through core deposits Significant availability from F
Slide 23: Focused on Creating Value for Shareholders
TSR since 2009 Dividend Payout Ratio Total Shareholder Return for $100 Investment Quarterly cash dividend has increased 120% since 2017 Consistently paid a quarterly cash dividend Current yield 3.8% at October 31, 2020 Dividend payout range policy of 25% - 35% Focused on Creating Value for Sharehold
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