Farmers National Banc Corp. · NASDAQ:FMNB
Farmers National Banc — Q4 2024 Earnings Presentation
21 slides from Farmers National Banc's earnings presentation, January 2025
Slide 1: Q4 2024 Investor Presentation
Q4 2024 Investor Presentation NASDAQ: FMNB
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 Farme
Slide 3: About Farmers National Banc Corp.
About Farmers National Banc Corp. • $5.1 billion in banking assets • $4.2 billion in wealth management assets under care • $0.68 (5.0%) annualized dividend yield* • Named a Best Employer in Ohio the past 2 years** • Founded in 1887 • 168 consecutive quarters of profitability • Strong and diverse fra
Slide 4: Local, Established & Experienced Leadership Team
Local, Established & Experienced Leadership Team Kevin Helmick (52) Troy Adair (58) Amber Wallace (58) Michael Matuszak (57) Timothy Shaffer (62) President & Senior Executive Vice President, Senior Executive Vice President, Senior Executive Vice President, Chief Senior Executive Vice President, Chie
Slide 5: Farmers Strategic Vision
Farmers Strategic Vision Leveraging our History with Modern Banking Technologies to Support our Future Invest in our Franchise Drive Financial Excellence • Leverage technology • Strive for performance metrics in top quartile ranking vs. peer group • Drive efficiencies through Six Sigma operating fra
Slide 6: Proven Acquisition History and Strategy
Proven Acquisition History and Strategy Long-term strategy of value-enhancing acquisitions $6,000 Emclaire Crest Eight acquisitions in the Financial Retirement past nine years (2023) (2024) $5,000 Cortland Bancorp (2021) Target franchises with similar culture, compelling reputation, and strong custo
Slide 7: Financial Performance
Financial Performance NASDAQ: FMNB
Slide 8: Balance Sheet Strengths
Balance Sheet Strengths (1) 12/31/24 12/31/23 12/31/22 Customer Deposits* $4.2 billion $4.2 billion $3.4 billion Cash Balances $85.7 million $103.7 million $75.6 million (1) Loan-to-Deposit Ratio 76.6% 76.6% 67.5% Nonperforming Loans to Total Loans 0.70% 0.47% 0.62% Allowance to Nonperforming Loans
Slide 9: Core Results
Core Results Overview Core Net Income $62,316 $63,994 $61,798 $65,000 • Core EPS remains strong through challenging environments • Robust fee businesses provide stability $55,000 $48,151 $44,461 $45,000 $35,000 $25,000 $15,000 $5,000 2020 2021 2022 2023 2024 Core Return on Assets Core EPS 1.83% $2.5
Slide 10: Loan Portfolio Overview
Loan Portfolio Overview Overview Rate Type Segments • Total loans $3.3 billion Variable, 15% • Diverse loan mix • Farmers’ practice is to lend primarily within its market area Fixed, 51% Adjustable, 34% Total Loans (in millions) Net Loans to Assets $3,500.00 $3,000.00 66.9% 62.3% 63.2% $2,500.00 58.
Slide 11: CRE
CRE Overview CRE Breakdown • Well diversified portfolio Construction, 10% Owner Occupied, • Strong credit culture 28% • Independent loan review Multifamily, 12% Non-owner Occupied, 50% CRE Categories Loans by Industry Type 8% Category Balance % of CRE % of Port Retail $ 345,354 25% 11% 11% Office $
Slide 12: Asset Quality Trends
Asset Quality Trends Overview Annualized Net Charge-Offs to Avg. Net Loans • Early-stage delinquencies were $13.0 million, or 0.40% of total loans at December 31, 2024, compared to $16.7 million, or 0.52% of total loans at December 31, 2023 0.21% • Conservative underwriting practices • Sound reserve
Slide 13: Securities Portfolio
Securities Portfolio Overview • All of the Investment securities portfolio is categorized as available for Corporates, 1.5% CMOs, 10.6% Mortgage Backed sale Securities 38.9% U.S. Government, 9.1% • All MBS and CMOs are U.S. government agency issued • All municipal securities are investment grade, ma
Slide 14: Deposit Trends
Deposit Trends Overview Customer Deposit Composition (in millions) • We are proud to say our bank is built on core deposits $4,500 • Total customer deposits: $4.2 billion • Noninterest-bearing stood at 22.6% of total deposits $4,000 $3,500 $3,000 $2,500 Customer Deposit Composition (in millions) $2,
Slide 15: Liquidity
Liquidity Farmers National Banc Corp. has the following sources of liquidity at the holding company as of December 31, 2024: • $46.0 million of cash and equivalents • $5.0 million in unsecured lines of credit with a zero balance Farmers National Bank has the following sources of liquidity as of Dece
Slide 16: Net Interest Income and NIM Trends
Net Interest Income and NIM Trends Overview Net Interest Income (in thousands) $160,000 • Focused on growing loans to manage net interest margin $140,000 • Managing cost of funds and deposit betas through rising rate environment $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 2020 2021 2022 2023 2
Slide 17: Noninterest Income Trends
Noninterest Income Trends Overview Total Noninterest Income* (in thousands) • Robust Trust, Wealth Management and Insurance businesses $50,000 $45,000 • Diverse revenue sources $40,000 $35,000 • Working to increase noninterest income to total revenue $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $-
Slide 18: Noninterest Expense Trends
Noninterest Expense Trends 1) Overview Noninterest Expense to Average Assets (1) • Overall focus on driving efficiencies 2.43% • The Company has a number of process improvement projects underway. 2.05% 2.07% 2.09% 1.98% • Track record of prudent expense management 2020 2021 2022 2023 2024 Noninteres
Slide 19: Capital
Capital Overview Tangible Equity to Tangible Assets • All regulatory capital ratios above well-capitalized threshold • Announced 1,000,000 share repurchase program in Q1 2023 9.30% 8.95% 9.44% 7.57% 7.96% • Strong dividend payout 9.94% 9.15% 4.41% 4.79% 4.38% 2020 2021 2022 2023 2024 Tangible Equity
Slide 20: Appendix – Non GAAP Reconciliations
Appendix – Non GAAP Reconciliations 2020 2021 2022 2023 2024 Net income $ 41,876 $ 51,844 $ 60,597 $ 49,932 $ 45,949 Acquisition related costs - after tax 2,585 5,731 3,290 4,395 82 Acquisition related provision - after tax - 3,846 - 6,077 - Employee severance - - - 798 - Law suit settlement income
Slide 21: Appendix – Non GAAP Reconciliations
Appendix – Non GAAP Reconciliations 2020 2021 2022 2023 2024 Total assets $ 3,071,148 $ 4,142,749 $ 4,082,200 $ 5,078,350 $ 5,118,924 Less goodw ill and other intangibles 49,617 102,606 101,666 190,287 188,200 Tangible Assets $ 3,021,531 $ 4,040,143 $ 3,980,534 $ 4,888,063 $ 4,930,724 Gross unrealiz
Farmers National Banc — Q4 2024 Earnings Presentation on 6ix