Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Merger or Acquisition (September 2015)
28 slides from Farmers National Banc's merger presentation, Sep 9, 2015
Slide 1: Investor Presentation June 30, 2015
Investor Presentation June 30, 2015 Exhibit 99.1 * * * * * *
Slide 2: Disclosure Statements
Disclosure Statements 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: Disclosure Statement
Disclosure Statement Important Additional Information About the Merger. In connection with the proposed merger with Tri-State st Banc, Inc. (Tri-State), Farmers has filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 that includes a proxy statement and
Slide 4: FMNB - Legacy
FMNB - Legacy Financial Highlights at March 31, 2015 • Banking Locations: 19 • Assets: $1.13 billion • Loans: $673.78 million • Deposits: $909.41 million • Loan/Deposit Ratio: 74.09% • Tangible Common Equity: 10.50% • Market Capitalization: $150.77 million Strategic Objectives • Strong Capital Posit
Slide 5: FMNB-NBOH Merger
FMNB-NBOH Merger Financial Highlights at June 30, 2015 • Banking Locations: 33 • Assets: $1.67 billion • Loans: $1.13 billion • Deposits: $1.32 billion • Loan/Deposit Ratio: 85.94% • Tangible Common Equity: 8.76% • Market Capitalization: $211.8 million Strategic Objectives • Creates the third larges
Slide 6: FMNB-NBOH Combined with TSOH Acquisition
FMNB-NBOH Combined with TSOH Acquisition Pro Forma Financial Highlights • Banking Locations: 38 • Assets: $1.8 billion • Loans: $1.2 billion • Deposits: $1.5 billion • Loan/Deposit Ratio: 78.16% • Tangible Common Equity: 8.75% • Market Capitalization: $223 million Strategic Objectives • Pro-forma, F
Slide 7: Farmers
“FARMERS
Slide 8: Experienced Management Team
Experienced Management Team Years of Experience FMNB Industry • Established and experienced management team with over 300 years of combined experience, 130 of which has been with Farmers. President & Chief Executive Officer Kevin J. Helmick (43) 21+ 21+ Senior EVP, Chief Banking Officer Mark Witmer
Slide 9: New Locations - Alliance
New Locations - Alliance
Slide 10: New Locations - Fairlawn
New Locations - Fairlawn
Slide 11: Commitment to Stakeholders
Commitment to Stakeholders Arts 5% Civic 18% Education/ Higher Education 23% Health & Wellness 17% Social Services 16% CRA 18% • Four Pillars – Shareholders o 2015 Strategic Initiative o Increased Communication Plan – Customers o Small Business Support o 45% of small business lending comes from comm
Slide 12: Increasing Shareholder Value
Increasing Shareholder Value 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 15* 3.62 4.95 6.20 6.55 8.35 8.25 Stock Price Stable Dividend Policy • Consistently paid a quarterly cash dividend • Current yield 1.45% • Dividend payout range policy of 25% - 35% • Dividend payout 2015 YTD* is 36.55% of
Slide 13: Utica Shale Impact
Utica Shale Impact Source: Debrosse Memorial Report, 2014 Ohio and Gas Activity in Ohio, Ohio Oil and Gas Association
Slide 14: Utica Shale Impact
Utica Shale Impact Source: Debrosse Memorial Report, 2014 Ohio and Gas Activity in Ohio, Ohio Oil and Gas Association
Slide 15: Farmers Virtual Branch
FARMERS “FARMERS VIRTUAL BRANCH == Co EXPLORE THE FEATURES |, ONLINE BANKING LOG IN @) MOBILE ACCESS FARMERS:-REWARDS CUSTOMER SUPPORT @re
Slide 16: Mobile Banking Analytics
Mobile Banking Analytics Transactions • Account to Account Transfers • Bill Payments • Mobile Captures • Picture Payments * Farmers’ Active Users: 85% Active User Target: 75%
Slide 17: Online Banking Analytics
Online Banking Analytics Transactions - Fiserv • Bill Pay • PopMoney • Account to Account Transactions • Same Day EBT • All Other Electronic Payments • Overnight Checks • All Other Paper Payments
Slide 18: Net Interest Income and Margin
Net Interest Income and Margin 3.54% 3.58% 3.63% 3.64% 3.66% $8,952 $9,285 $9,243 $8,992 $9,749 3.50% 3.55% 3.60% 3.65% 3.70% 3.75% 3.80% 3.85% 3.90% $8,400 $8,600 $8,800 $9,000 $9,200 $9,400 $9,600 $9,800 $10,000 2Q 2014 3Q 2014 4Q 2014 1Q 2015 2Q 2015 Net Interest Income Net Interest Margin Dollar
Slide 19: Growing and Diverse Revenue Stream
Growing and Diverse Revenue Stream • Continued Focus on Growing Noninterest Income • Non-interest Revenue: 28.7% of Total Revenue *For the six months ended June 30, 2015
Slide 20: Loan Growth
Loan Growth $572,453 $596,838 $637,774 $704,838 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 6/30/2012 6/30/2013 6/30/2014 6/30/2015 $430,000 Farmers Total Loans NBOH Acquisition YOY Growth: 4.26% YOY Growth: 77.94% Organic Growth:10.52% YOY Growth: 6.86% $1,134,838
Slide 21: Overview of Loan Portfolio
Overview of Loan Portfolio Commercial Real Estate $392,103 34.6% Residential Real Estate $305,134 26.9% Consumer $187,579 16.5% Commercial & Industrial $202,004 17.8% • Diverse loan mix • No national lending • No sub-prime lending • Farmers’ practice is to lend primarily within its market area • Les
Slide 22: Excellent Asset Quality
Commercial Real Estate 43.5% Residential Real Estate 42.4% Excellent Asset Quality Nonaccrual $7.0mm 77.1% OREO $1.1mm 12.4% Commercial 11.9% Consumer 2.2% Note: Dollars in millions; Asset quality ratios exclude troubled debt restructuring 6/30/2015 Nonaccrual loans $7.0 Accruing loans past due 90 d
Slide 23: Interest Rate Risk Management
Interest Rate Risk Management Percent Change in NII (FTE) ALCO Policy Limits Change in Interest Rates 12 Months 13 to 24 Months 12 Months 13 to 24 Months Change in Interest Rates Change in Eve ALCO Policy Limit • NII benefits from asset re-pricings in a rising rate environment – 50% of total loans a
Slide 24: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Reconciliation of Common Stockholders' Equity to Tangible Common Equity June 30, March 31, Dec. 31, Sept. 30, June 30, Stockholders' Equity $182,575 $126,771 $123,560 $121,401 $121,020 Less Goodwill and other intangibles 39,569 8,646 8,813 9,768 9,960 Tangible Common
Slide 25: Consolidated Statements of Income
Consolidated Statements of Income Consolidated Statements of Income For the Three Months Ended For the Six Months Ended June 30, March 31, Dec. 31, Sept. 30, June 30, June 30, June 30, Percent Change Total interest income $10,753 $9,999 $10,321 $10,413 $10,118 $20,752 $20,181 2.8% Total interest exp
Slide 26: Consolidated Statements of Financial Condition
Consolidated Statements of Financial Condition Consolidated Statements of Financial Condition June 30, March 31, Dec. 31, Sept. 30, June 30, Assets Cash and cash equivalents $37,028 $26,929 $27,428 $28,294 $28,070 Securities available for sale 386,319 369,919 389,829 404,895 409,285 Loans held for s
Slide 27: Deposit Market Share by County
Trumbull Top 10 Deposit Market Share by County Columbiana Top 10 Mahoning Top 10 Rank Company Branches Dep. ($M) Market Share Huntington National Bank 570,189 20.98 Talmer Bank and Trust 427,268 15.72 JPMorgan Chase Bank NA 420,471 15.47 Cortland Savings and Banking Co. 340,862 12.54 PNC Bank NA 261
Slide 28: Deposit Market Share by County
Deposit Market Share by County Medina Top 10 Wayne Top 10 Stark Top 10 Note: Market share data as of June 30, 2014 Source: SNL Rank Company Branches Dep. ($M) Market Share FirstMerit Bank NA 880,998 27.27 Westfield Bank FSB 488,620 15.12 Third Federal S&LA of Cleveland (MHC) 352,281 10.90 PNC Bank N
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