Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Q1 2022 Earnings Presentation
21 slides from Farmers National Banc's earnings presentation, May 11, 2022
Slide 1: Q1 2022 Investor Presentation
Nasdaq: FMNB | Q1 2022 Investor Presentation Exhibit 99.1
Slide 2: Disclosure Statement
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. $4.2 billion in banking assets $3.1 billion in wealth management assets under care $0.64 (4.2%) annualized dividend (yield) #1 Performing Bank in Ohio* Named a Best Employer in Ohio the past 2 years** Founded in 1887 157 consecutive quarters of profitability Strong
Slide 4: Relationship-Based Values
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: One of the Largest Community Banks in Ohio
Deposit rank according to FDIC market share report at June 30, 2021 and includes The Cortland Savings and Banking Company (2) January 2020 Office of Research, Ohio Development Services Agency One of the largest community banks in Ohio ranked by deposits and 13th largest bank overall by deposits Acco
Slide 6: 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 7: Diverse Revenue Streams
LTM Fee Income LTM Sources of Income (in thousands) Diverse Revenue Streams Noninterest income to total revenue for the 2022 first quarter was 35%, compared to 27% for the same period last year (1) Diverse sources of noninterest income insulates the company’s income statement from benchmark rate vol
Slide 8: Management Team
Kevin Helmick (50) President & Chief Executive Officer Troy Adair (55) Executive Vice President, Chief Financial Officer Tim Carney (56) Senior Executive Vice President, Chief Banking Officer Jim Gasior (62) Senior Executive Vice President, Corporate Development Officer Amber Wallace (56) Executive
Slide 9: 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 10: 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 (2016) Tri-state 1st Banc (2015) Monitor Bancorp (2017) Maple Leaf (2020) Long-term strategy of v
Slide 11: Harnessing Modern Banking Technology
Harnessing Modern Banking Technology 11 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 12: Financial Performance
FARMERS NATIONAL BANC CORP. Financial Performance
Slide 13: Q1 2022 Performance vs. Peers
Peer group includes: CCNE, CHCO, CHMG, CIVB, CTBI, CZNC, EVBN, FISI, GABC, HBNC, IBCP, ISBA, LCNB, LEVL, LKFN, MBWM, MCBC, MVBF, PEBO, SMMF and SYBT Peer group data according to SNL data, Farmers data as reported and adjusted for one-time acquisition costs Q1 2022 Performance Adjusted for Merger and
Slide 14: 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: $3.69 billion Noninterest-bearing stood at 26.1% of total deposits Total deposit funding was 96.9% of total funding on the
Slide 15: Loan Portfolio Overview
Loans by Industry Type Net Loans (in millions) Net Loans to Assets Overview Total loans $2.305 billion Diverse loan mix Farmers’ practice is to lend primarily within its market area Less than 2.0% of loan portfolio is participations purchased Less than 2.5% of loan portfolio is construction loans Lo
Slide 16: Asset Quality Trends
ACL to NPL NPLs / Total Loans & Leases ($ in thousands) Early-stage delinquencies were $7.3 million, or 0.32% of total loans, compared to $8.9 million, or 0.38% of total loans at December 31, 2021 Our allowance for credit losses to gross loans ratio was 1.17%, compared to 1.26% at December 31, 2021
Slide 17: Net Interest Income and NIM Trends
Net Interest Income (in thousands) 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 group in margin as
Slide 18: Noninterest Income Trends
Total Noninterest Income (in thousands) Noninterest Income to Total Revenue Components of Noninterest Income (in thousands) Overview From 2016 to 2021, noninterest income has increased at a 10.4% CAGR Internal sales programs to unify focus and identify opportunities Noninterest Income Trends (at Mar
Slide 19: Noninterest Expense Trends
Noninterest Expense (in thousands) Efficiency Ratio(1) Overall focus on driving efficiencies Profit improvement committee meets biweekly to discuss efficiency initiatives Noninterest Expense to Quarterly Avg. Assets Overview Noninterest Expense Trends (at March 31, 2022) 19 (1) Efficiency ratio adju
Slide 20: Capital and Liquidity
Capital and Liquidity (at March 31, 2022) Loans to Deposits Total Risk Based Capital Tangible Equity to Tangible Assets Overview Total risk-based capital well above well capitalized threshold $75 million in sub debt issued in Q4 2021 Loan growth funded through core deposits Additional borrowing capa
Slide 21: Focused on Creating Value for Shareholders
TSR from December 31, 2011 to March 31, 2022 Dividend Payout Ratio Total Shareholder Return for $100 Investment From 2016 to 2021, annual cash dividend increased at a 24.1% CAGR Quarterly cash dividend has increased 167% from $0.06 per share at December 31, 2016, to $0.16 per share at March 31, 2022
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