Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Shareholder Meeting (April 2013)
41 slides from Farmers National Banc's shareholder meeting presentation, Apr 25, 2013
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders Thursday, April 25, 2013
Slide 2: Forward Looking Statements - Safe Harbor Statement
FORWARD LOOKING STATEMENTS - SAFE HARBOR STATEMENT Discussion inthis presentation ht ae ot semen of historical et (cling semen boa eve” peat esta project intend” and. “pla”) are forwarloking stents tht involve sks ad Statement In adtion, hese steers Speak onl ofthe date made. The Company doc pot Fel
Slide 3: Carl D. Culp, Executive Vice President, Chief Financial Officer
Carl D. Culp Executive Vice President Chief Financial Officer
Slide 4: Total Assets
Total Assets Total Assets Asset Growth of 16% since 2010 Note: Dollars in thousands
Slide 5: Net Loans
Net Loans Net Loans Note: Dollars in thousands
Slide 6: Low Cost and Predominantly Core Deposit Funding
Low Cost and Predominantly Core Deposit Funding Core Deposit Funding Core Deposit Funding (CHART) Note: Dollars in thousands
Slide 7: Return on Average Assets
Return on Average Assets Source: SNL Financial 1. Publicly traded banks with headquarters in Ohio.
Slide 8: Return on Average Equity
Return on Average Equity Return on Average Equity Continue to out-perform Ohio publicly traded banks. Source: SNL Financial 1. Publicly traded banks with headquarters in Ohio.
Slide 9: Net Interest Margin
Net Interest Margin Net Interest Margin Source: FDIC 1. Commercial Banks with assets between $1 billion and $3 billion.
Slide 10: Yield on Earning Assets
Yield on Earning Assets Yield on Earning Assets Source: FDIC 1. Commercial Banks with assets between $1 billion and $3 billion.
Slide 11: Cost of Funds
Cost of Funds Cost of Funds Source: FDIC 1. Commercial Banks with assets between $1 billion and $3 billion.
Slide 12: Growing and Diverse Revenue Stream
Growing and Diverse Revenue Stream (CHART) Fee income is less credit risk sensitive than interest income Farmers capitalizes on relationship management Trust income accounts for almost half of last twelve months non-interest income
Slide 13: Efficiency Ratio
Efficiency Ratio Efficiency Ratio Source: SNL Financial 1. Publicly traded banks with headquarters in Ohio.
Slide 14: Diverse Loan Mix
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 Note:
Slide 15: Net Charge-Offs to Average Loans
Net Charge-Offs to Average Loans Net Charge-Offs to Average Loans Source: FDIC 1. Commercial Banks with assets between $1 billion and $3 billion.
Slide 16: Non-performing Assets as a % of Total Assets
Non-performing Assets as a % of Total Assets as of 12/31/12 of Total Assets as of 12/31/12 of Total Assets as of 12/31/12 1. Source: SNL Financial. Publicly traded banks with headquarters in Ohio. 2. Source: FDIC. Bank Holding Companies with assets between $1 billion and $3 billion.
Slide 17: Highlights of First Quarter 2013
Highlights of First Quarter 2013 Noninterest income increased 6% from first quarter of 2012 Net income for first quarter of 2013 is $2.0 million compared to $2.5 million for first quarter of 2012 Nonperforming loans decreased from $11 million at March 31, 2012 to $7.4 million at March 31, 2013 Stock
Slide 18: John S. Gulas, President & Chief Executive Officer
John S. Gulas President & Chief Executive Officer
Slide 19: FMNB in Review
FMNB in Review Last two calendar year total shareholder return: 79% 2012 Stock Price Appreciation: 25.25% Dividend Yield $0.18 or 3.64% yield on 12/31/11 stock price of $4.95 $0.18 or 2.90% yield on 12/31/12 stock price of $6.20
Slide 20: FMNB Stock Performance
FMNB Stock Performance FARMERS Farmers National Bane Corp. - Price Change (%) rns o74sss) row sms) rsoto sene(06rm) one sansa 78%) HoH Begone: sane 0188) i;
Slide 21: Stock Valuations: Economies of Scale
Stock Valuations: Economies of Scale
Slide 22: 2012 Strategic Initiatives: Deploy Capital and Expand Asset Base
2012 Strategic Initiatives Deploy Capital and Expand Asset Base with Loan Products Special Dividend Share Buy Back Approved 3% Loan Growth in the 4th Quarter SBA SWAP New Facilities Howland McClurg Canton
Slide 23: Howland
Howland FARMERS
Slide 24: McClurg
McClurg “FARMERS
Slide 25: Canton
Canton
Slide 26: Coming Soon...Alliance Branch
Coming Soon...Alliance Branch Coming Soon...Alliance Branch
Slide 27: Alliance Branch
Alliance Branch Alliance Branch Located across the street from the University of Mount Union campus Newly constructed university development coupled with graduate housing Student Population Growth Mount Union's undergraduate enrollment has nearly doubled in the past few decades, increasing from appr
Slide 28: Alliance Branch
Alliance Branch FARMERS a 2 tif ee Ga) z@ NY @ Sen t Sine Sip 3 aoe 3 ee ee ECA & Distance from Alliance a sy i 4 fit: © toDamascus- 8 miles iit % ‘onal Arpon | a eee i = * Fi z 236W. tate sret Ape’ 29083 62 ia i A Milance, 0+ 44601 Damascus, OH 44619 Comten 3 ne H g Distance from Canton ££ 4 : to A
Slide 29: 2012 Strategic Initiatives: Expand Fee Based Business
2012 Strategic Initiatives Expand Fee Based Business Launched Private Client Services in October, 2012 New Deposits: $20,940,000 Loans: $6,973,562 Farmers National Investments Referrals: $796,236 Farmers Trust Company Referrals: $992,000 Secondary Mortgage 2012 Fee Income on Mortgage Loans: $598,000
Slide 30: 2012 Strategic Initiatives: Leverage Technology
2012 Strategic Initiatives Leverage Technology BPM Deposit Account Opening Work Flows Straight-through Processing Implemented Mobile Banking Application Instant Issue Debit Card System Cash Recycler Technology
Slide 31: Instant Issue Debit Cards
Instant Issue Debit Cards Instant Issue Debit Cards
Slide 32: 2012 Strategic Initiatives: Brand Awareness to Acquire Customers
2012 Strategic Initiatives Brand Awareness to Acquire Customers 125 Year Anniversary Celebration Switch Campaign Billboard
Slide 33: 125 Year Anniversary
125 Year Anniversary 125 Year Anniversary
Slide 34: Switch Campaign
2M Switch Campaign “ “FARMERS S Farmers makes it poe switch banks. “FARMERS
Slide 35: What's next for our Farmers Family?
Lit. What's next for our Farmers Family? FARMERS NATIONAL BANK Vote now at farmersbankgroup.com
Slide 36: 2012 Strategic Initiatives: Risk Management and Asset Quality
2012 Strategic Initiatives Risk Management and Asset Quality Reduced classified assets by 32% Reduced loan provision from $3.65 million in 2011 to $725 thousand in 2012
Slide 37: 2012 Strategic Initiatives: Attract, Develop and Retain Quality People
2012 Strategic Initiatives Attract, Develop and Retain Quality People Successfully recruited and hired: Chief Lending Officer Chief Risk Officer Corporate Facilities Manager Introduced new Profit-Sharing program Completed creation of all Performance-based Annual Performance Review documents Farmers'
Slide 38: 2013 Strategic Initiatives
2013 Strategic Initiatives Retain, Support, Develop and Attract Quality Associates Loan Growth Expand Non-interest Income Leverage Technology to Enhance Service and Minimize Risk Focus on Enterprise Risk Management and Maintain Asset Quality Continued Leverage of our Brand and Product
Slide 39: Challenges in 2013
Challenges in 2013 Net Interest Margin Regulatory Compliance Loan Growth Economy
Slide 40: Downtown Vision
Downtown Vision * “FARMERS
Slide 41: Questions and Answers
FARMERS Questions and Answers
Farmers National Banc — Shareholder Meeting (April 2013) on 6ix