Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Shareholder Meeting (April 2018)
31 slides from Farmers National Banc's shareholder meeting presentation, Apr 19, 2018
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders Thursday, April 19, 2018 Exhibit 99.2
Slide 2: Forward-looking statements
include terme ” rn “project” intend,” and’ pla) are’ forward-looking statements’ that involve wsks and vuncertaities. Any ing future results could differ materially: from octet could cause ot Contato uch irene neti wit uncertainties detailed om tie Exchange Ce cluding, without imitation, the Fak fac
Slide 3: Carl D. Culp, Executive Vice President, Chief Financial Officer
Carl D. Culp Executive Vice President Chief Financial Officer
Slide 4: Financial Overview
Financial Overview Strong capital position 9.31% tangible common equity ratio 12/31/17 12/31/16 Increase in Dollars Increase in Percentage Assets $2.2 billion $2.0 billion $193.0 million 9.8% Total loans $1.6 billion $1.4 billion $149.7 million 10.5% Total deposits $1.6 billion $1.5 billion $80.0 mi
Slide 5: Improved Profitability
Improved Profitability * Excludes expenses related to acquisition activities ** Excludes acquisition-related adjustments and $1.8 million adjustment of net deferred tax asset resulting from the Tax Cuts and Jobs Act that became law in December 2017
Slide 6: Improved Profitability
Improved Profitability * Excludes expenses related to acquisition activities ** Excludes acquisition-related adjustments and $1.8 million adjustment of net deferred tax asset resulting from the Tax Cuts and Jobs Act that became law in December 2017
Slide 7: Improved Profitability
Improved Profitability * Excludes expenses related to acquisition activities ** Excludes acquisition-related adjustments and $1.8 million adjustment of net deferred tax asset resulting from the Tax Cuts and Jobs Act that became law in December 2017
Slide 8: Historical Operating Results
Historical Operating Results Improving net interest margin Low cost core deposit funding Shift in asset mix from securities to loans 8.1% growth in net interest income Net Interest Income and Margin
Slide 9: Continued Strong Results – 2017 Overview
Continued Strong Results – 2017 Overview 2017 2016 % Increase (Decrease) Net income per share $0.82 $0.76 7.9% Net income excluding adjustment of deferred tax asset and merger expenses $0.90 $0.78 15.4% Noninterest income $24,051 $23,244 3.5% Efficiency ratio 59.66% 61.59% (3.13%)
Slide 10: Noninterest Income
Noninterest Income Continued Focus on Growing Noninterest Income Noninterest Revenue: 23% of Total Revenue, excluding gains *For the year ended December 31, 2017, excluding gains
Slide 11: Loan Growth
Loan Growth Annual Growth: 10.2% Annual Growth 10.5% Annual Growth: 5.26% Annual Growth: 18.0% Organic Growth: 12.0% $1,577,381 $1,296,865
Slide 12: Loan Portfolio Mix – December 31, 2017
Loan Portfolio Mix – December 31, 2017 Overview of Loan Portfolio Dollars in thousands Diverse loan mix No national lending No sub-prime lending Farmers’ practice is to lend primarily within its market area Less than 3% of loan portfolio is participations purchased Less than 5% of loan portfolio is
Slide 13: Excellent Asset Quality
Excellent Asset Quality Note: Dollars in thousands 12/31/2017 12/31/2016 Decrease Non-performing loans $7,695 $8,170 -5.81% Other real estate loans 171 482 -64.52% Total non-performing assets $7,866 $8,652 -9.08% Loans 30-89 days delinquent $10,191 $12,747 -20.05% Net loan charge-offs $1,887 $1,996
Slide 14: Continued Strong Results – Overview of 1Q 2018
Continued Strong Results – Overview of 1Q 2018 Record net income for the quarter of $7.7 million, 34% higher than the same quarter in 2017 141 consecutive quarters of profitability Annualized return on average assets was 1.45% and annualized return on average equity 13.03% for the quarter ended Marc
Slide 15: Kevin J. Helmick, President & Chief Executive Officer
Kevin J. Helmick President & Chief Executive Officer
Slide 16: Increasing Shareholder Value
Increasing Shareholder Value Performance Highlights Stock price up 77% since 2014 75% increase in annual dividend rate over the past two years Increase in price/tangible book value* from 134% to 207% comparing December 31, 2014 to December 31, 2017 *Non-GAAP – See Appendix
Slide 17: Increase Shareholder Value
Increase Shareholder Value Performance Highlights 164% market capitalization growth since 2014, including 6% in 2017 Added to the U.S. Russell 2000® Index in 2016 and remained on the list following the annual reconstitution in June 2017 Currently a member of 70 indices according to Bloomberg Financi
Slide 18: Record Earnings
Record Earnings Record Earnings Record year in net income 10.5% increase in net income over 2016 Earnings Per Share 2017: $0.82 2016: $0.76 2015: $0.36 2014: $0.48
Slide 19: Proven Acquirer
Proven Acquirer FARMERS '$3,000,000,000 '$2,500,000,000 '$2,000,000,000 '$1,500,000,000 '$1,000,000,000 '$500,000,000 v Farmers National Insurance Farmers Trust Company ichwood Vv Monitor Bancorp 2009 2010 2011 2012 2013 2014 2015 2016 2017" Assets + Wealth Management Assets
Slide 20: Farmers Footprint
Farmers Footprint Financial Highlights at December 31, 2017 Farmers locations: 41 Assets: $2.2 billion Loans: $1.58 billion Deposits: $1.60 billion Loan/Deposit Ratio: 98.3% Tangible Common Equity: 9.3% Market Capitalization: $406 million1 Based on FMNB’s stock price of $14.75 on December 31, 2017 S
Slide 21: FARMERS
FARMERS a Beach National Assocites, ne ‘ACortand Feitaan Lake Miton ‘As Contold(2)¢ — Oa salen Colubiana
Slide 22: Amber Wallace, Chief Retail and Marketing Officer
Amber Wallace Executive Vice President, Chief Retail and Marketing Officer
Slide 23: Loan Growth
Loan Growth $1,296,865 10% year over year loan growth from diverse loan portfolio Ag loans leading the way with 27% growth in 2017 Lending to local businesses with local decision making Residential mortgage income increased more than 10% in 2017 and more than 700% since 2014 Small Business Express l
Slide 24: Mark Witmer, Chief Banking Officer
Mark Witmer Senior Executive Vice President, Chief Banking Officer
Slide 25: Wealth Management
Wealth Management 11% Total Revenue 48% Fee Income Record year for both Farmers Trust Company and NAI
Slide 26: Wealth Management 365
FARMERS *FFARMERS NATIONAL BANK oN WEALTH MANAGEMENT 365@ Be intentional about your worth. PRIVATE BANKING TRUST RETIREMENT INSURANCE INVESTMENTS
Slide 27: Mark J. Wenick, Chief Wealth Management Officer
Mark J. Wenick Executive Vice President, Chief Wealth Management Officer
Slide 28: Second – Private Banking Flagship Spot; Second – Trust Flagship Spot
60 Second – Private Banking Flagship Spot 30 Second – Trust Flagship Spot
Slide 29: 2018 Top Initiatives
2018 Top 3 Initiatives Optimize Branch Portfolio Increase Deposits Integrate/Re-brand Wealth Management
Slide 30: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation Reconciliation of Common Stockholders' Equity to Tangible Common Equity 2017 2016 2015 2014 Stockholders' Equity $242,074 $213,216 $198,047 $123,560 Less Goodwill and other intangibles 45,369 45,154 42,911 8,813 Tangible Common Equity $196,705 $168,062 $155,136 $114,7
Slide 31: Questions and Answers
FARMERS Questions and Answers
Farmers National Banc — Shareholder Meeting (April 2018) on 6ix