8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 25, 2012

Farmers National Banc Corp.

(Exact name of registrant as specified in its charter)

Ohio	001-35296	34-1371693
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification No.)
20 South Broad Street, P.O. Box 555, Canfield, Ohio		44406-05555
(Address of principal executive offices)		(Zip Code)

(330) 533-3341

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On April 25, 2012, Farmers National Banc Corp. (the “Company”) announced earnings for the quarter ended March 31, 2012. A copy of the press release and certain financial information for this period is attached as Exhibit 99.1 hereto and incorporated by reference herein. In addition, on April 26, 2012, the Company first mailed a letter to shareholders regarding its third quarter results, a copy of which is attached hereto as Exhibit 99.2

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.

ITEM 7.01 REGULATION FD DISCLOSURE.

On April 26, 2012, John S. Gulas, President and Chief Executive Officer of Farmers National Banc Corp., gave a presentation to certain shareholders at the 2012 Annual Meeting of Shareholders, a copy of which is attached as Exhibit 99.3 hereto and incorporated by reference herein.

The information in Item 7.01 of this Form 8-K and Exhibit 99.3 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.

Exhibit Number	Description
99.1	Press Release, dated April 25, 2012 (filed herewith).
99.2	Letter to Shareholders, dated April 26, 2012 (filed herewith).
99.3	Presentation to 2012 Annual Meeting of Shareholders (filed herewith).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Farmers National Banc Corp.
By:	/s/ John S. Gulas
	John S. Gulas
	President and Chief Executive Officer

Date: April 26, 2012

EX-99.1

Exhibit 99.1

April 25, 2012

Press Release

Source: Farmers National Banc Corp.

John S. Gulas, President and CEO

20 South Broad Street P.O. Box 555

Canfield, OH 44406

330.533.3341

330.533.0451 (FAX)

Email: exec@farmersbankgroup.com

FARMERS NATIONAL BANC CORP. REPORTS RESULTS FOR FIRST QUARTER 2012

IMPROVED NET INCOME AND STRONG DEPOSIT GROWTH:

• Net income for first quarter of 2012 was up 49% to $2.5 million versus $1.7 million for the first quarter of 2011.

• 117 consecutive quarters of positive earnings.

• Deposits increased 16% from March 31, 2011 to March 31, 2012.

STRONG CAPITAL LEVELS:

• Tangible common equity to tangible assets improved to 9.91% at March 31, 2012 from 9.56% at March 31, 2011.

• Stockholders’ equity increased 12% from March 31, 2011 to March 31, 2012.

STABLE ASSET QUALITY:

• Provision for loan losses for the first quarter of 2012 decreased $1.9 million from the first quarter of 2011.

• Loans 30 – 89 days delinquent decreased to $2.9 million at March 31, 2012 from $3.4 million at March 31, 2011.

CANFIELD, Ohio (April 25, 2012) – Farmers National Banc Corp. (Farmers) (NASDAQ: FMNB) today reported financial results for the three months ended March 31, 2012.

Net income for the three months ended March 31, 2012 was $2.5 million, compared to $1.7 million for the same three month period in 2011. On a per share basis, net income for the first quarter ended March 31, 2012 was $0.13 per diluted share, compared to $0.10 for the first quarter ended March 31, 2011 and $0.16 for the fourth quarter ended December 31, 2011. The tangible common equity ratio increased to 9.91% at March 31, 2012, compared to 9.56% at March 31, 2011, mainly as a result of net income. Farmers’ total assets reported at March 31, 2012 were $1.1 billion, representing a 9.1% increase compared to $1.0 billion in total assets recorded at March 31, 2011.

John S. Gulas, President and CEO, stated “Our net income increased to $2.5 million for the three months ended March 31, 2012, which represents a 49% increase over the $1.7 million reported for the same period in 2011. Noninterest income increased 4% during the same three month period. This increase reflects the continued benefit from our strategy to diversify income streams. The provision for loan losses decreased from $1.9 million for the three month period ending March 31, 2011 to $0 for the three months ended March 31, 2012. This decrease is a result of improved credit quality, as net charge-offs have declined from $1.0 million for three months ended March 31, 2011 to $374 thousand for the same period in 2012. We have also seen a decline in our 30-89 day delinquencies, from $3.4 million at March 31, 2011 to $2.9 million at March 31, 2012. Even with the reduction in our provision, because of improved credit quality, we continue to maintain strong reserves against probable incurred losses.”

Net loans increased $5.2 million (or 1%) in comparing the first quarter of 2012 to the fourth quarter of 2011. Most of the loan growth in the past three months has occurred in the commercial real estate portfolio. Net loans were reported at $567.2 million at March 31, 2012, which compares to $566.3 million at the same time in 2011. Farmers believes its demand experience for business and consumer credit is consistent with the experience of other banks in the Federal Reserve’s Fourth District and banks nationally per the Federal Reserve Beige Book. Deposits increased $121.3 million, or 15.9%, from $765.3 million at March 31, 2011 to $886.6 million at March 31, 2012, as customers continue to seek the safety and security of FDIC insured deposit accounts.

Stockholders’ equity totaled $115.4 million, or 10.4% of total assets, at March 31, 2012, an increase of $12.3 million, or 11.9%, compared to $103.1 million at March 31, 2011. The increase is also the result of net income and mark to market adjustments in investment securities, offset by cash dividends paid to shareholders during the past twelve months. Shareholders received a special one-time $0.03 cash dividend on February 28, 2012, a regular $0.03 per share cash dividend on March 31, 2012 and a total of $0.15 per share cash dividends paid in the past four quarters. Book value per share increased 11.2% from $5.52 per share at March 31, 2011 to $6.14 per share at March 31, 2012. Farmers’ tangible book value per share also increased 12.6% from $5.16 per share at March 31, 2011 to $5.81 per share at March 31, 2012.

Net Interest Income — Net interest income was $9.2 million for the first quarter of 2012, which compared to $9.1 million in the first quarter of 2011. The net interest margin to average earning assets on a fully taxable equivalent basis decreased 32 basis points to 3.90% for the three months ended March 31, 2012, compared to 4.22% for the same period in the prior year. The decrease in net interest margin is largely a result of the change in the mix of interest earning assets. Loans, which yield more than securities, comprised a smaller level of interest-earning assets in the current year. At March 31, 2012, loans were 56% of average earning assets, compared to 62% at March 31, 2011. In comparing the quarters ending March 31, 2012 and 2011, yields on earning assets decreased 54 basis points, while the cost of interest bearing liabilities decreased 24 basis points.

Noninterest Income — Noninterest income was $2.7 million for the first quarter of 2012, increasing 4.2% from $2.6 million compared to the same quarter of 2011. Trust fees were $1.4 million for the quarter ended March 31, 2012, an increase of $80 thousand, or 6%, compared to the same quarter in 2011. Income from the sale of residential real estate loans also increased from none in first quarter of 2011 to $65 thousand in the first quarter of 2012 as the company continues to develop its’ secondary mortgage operations.

Noninterest Expense — Noninterest expense totaled $8.6 million for the first quarter of 2012, which is $825 thousand more than the $7.8 million in the same quarter in 2011. Most of this increase is a result of a $541 thousand or 12.9% increase salaries and employee benefits, due to a higher number of employees in the current quarter. The higher employee count is attributed primarily to our North Canton and Secondary Mortgage project expansions. Employee health insurance costs also increased $142 thousand as a result of a higher level of claims. Advertising expense is also $103 thousand higher in the first quarter of 2012 compared to the same quarter in 2011. This increase is primarily a result of a higher level of production costs related to television advertisements in the current year.

Farmers’ tax equivalent efficiency ratio for the three month period ended March 31, 2012 was 68.4% compared to 62.6% for the same period in 2011. The decline in the efficiency ratio was the result of the $825 thousand increase in noninterest expenses as explained in the previous paragraph.

Asset Quality — Non-performing loans equaled 1.91% of total loans at March 31, 2012, unchanged from March 31, 2011. Loans 30–89 days delinquent decreased $502 thousand, or 14.8%, to $2.9 million since March 31, 2011. Non-performing loans totaled $11.0 million at March 31, 2012, unchanged compared to December 31, 2011 and March 31, 2011, respectively. On March 31, 2012, the ratio of the allowance for loan losses (ALLL) to non-performing loans was 86%, compared to 92% at March 31, 2011. At March 31, 2012, the ALLL/total loan ratio was 1.64%, compared to 1.76% at March 31, 2011. For the three months ended March 31, 2012, management did not record a provision to the allowance for loan losses, compared to no provision in the preceding quarter and a $1.9 million provision in the same three month period in the prior year. Although non-performing loans remained consistent from the previous quarter, other factors lead to not recording a provision in the first quarter. The primary factor was the lower historical loss percentage applied to homogeneous and pass rated loans due to recent lower levels of net charge-offs. During the most recent period end, management computed the historical loss percentage based upon the loss history of the past 12 quarters. In previous periods, management used a historical loss percentage based on the past 8 quarters. The Company believes that using a loss history of the previous 12 quarters will capture more cyclicality in the loan portfolio. It should also be noted that net charge-offs for the quarter ending March 31, 2012 decreased to $374 thousand, compared to $1.2 million and $1.0 million for the fourth quarter of 2011 and the first quarter of 2011, respectively.

Farmers National Banc Corp. is the bank holding company for the Farmers National Bank of Canfield, Farmers National Insurance, LLC and Farmers Trust Company. Farmers’ operates eighteen banking offices throughout Mahoning, Trumbull, Columbiana and Stark Counties and two trust offices located in Boardman and Howland. Farmers offers a wide range of banking and investment services to companies and individuals, and maintains a website at www.farmersbankgroup.com.

Non-GAAP Disclosure

This press release includes disclosures of Farmers tangible common equity ratio and pre-tax, pre-provision income and pre-tax,pre-provision income, excluding gains (losses) on sales of securities, which are financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers’ marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. The reconciliations of non-GAAP financial measures are included in the tables following Consolidated Financial Highlights below.

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about Farmers’ financial condition, results of operations, asset quality trends and profitability. Forward-looking statements are not historical facts but instead represent only management’s current expectations and forecasts regarding future events, many of which, by their nature, are inherently uncertain and outside of Farmers’ control. Farmers’ actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Factors that could cause Farmers’ actual results to differ materially from those described in the forward-looking statements can be found in Farmers’ Annual Report on Form 10-K for the year ended December 31, 2011, which has been filed with the Securities and Exchange Commission and is available on Farmers’ website (www.farmersbankgroup.com) and on the Securities and Exchange Commission’s website (www.sec.gov). Forward-looking statements are not guarantees of future performance and should not be relied upon as representing management’s views as of any subsequent date. Farmers does not undertake any obligation to update the forward-looking statements to reflect the impact of circumstances or events that may arise after the date of the forward-looking statements.

Farmers National Banc Corp. and Subsidiaries

Consolidated Financial Highlights

(Amounts in thousands, except per share results)

Consolidated Statements of Income

	For the Three Months Ended
	March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
	2012			2011			2011			2011			2011
Total interest income	$	10,886		$	10,893		$	11,218		$	11,194		$	11,129
Total interest expense		1,665			1,771			1,983			2,037			2,046
Net interest income		9,221			9,122			9,235			9,157			9,083
Provision for loan losses		0			0			700			1,075			1,875
Other income		2,728			4,532			2,696			2,694			2,617
Other expense		8,639			9,645			8,177			8,092			7,814
Income before income taxes		3,310			4,009			3,054			2,684			2,011
Income taxes		790			969			683			567			321
Net income	$	2,520		$	3,040		$	2,371		$	2,117		$	1,690
Average shares outstanding		18,766			18,730			18,701			18,674			16,957
Pre-tax pre-provision income	$	3,310		$	4,009		$	3,754		$	3,759		$	3,886
Basic and diluted earnings per share		0.13			0.16			0.13			0.11			0.10
Cash dividends		1,126			562			561			560			559
Cash dividends per share		0.06			0.03			0.03			0.03			0.03
Performance Ratios
Net Interest Margin (Annualized)		3.90	%		3.80	%		3.97	%		4.05	%		4.22	%
Efficiency Ratio (Tax equivalent basis)		68.42	%		76.90	%		64.64	%		64.42	%		62.57	%
Return on Average Assets (Annualized)		0.94	%		1.13	%		0.90	%		0.83	%		0.69	%
Return on Average Equity (Annualized)		8.82	%		11.37	%		8.56	%		8.05	%		7.12	%
Dividends to Net Income		44.68	%		18.49	%		23.66	%		26.45	%		33.08	%

Consolidated Statements of Financial Condition

	March 31,			Dec. 31,			Sept. 30,			June 30,			March 31,
	2012			2011			2011			2011			2011
Assets
Cash and cash equivalents	$	68,575		$	52,422		$	94,889		$	45,139		$	81,939
Securities available for sale		412,009			400,029			382,853			358,335			315,039
Loans held for sale		3,195			677			0			0			0
Loans		576,627			571,806			567,995			568,704			576,450
Less allowance for loan losses		9,446			9,820			10,984			10,876			10,137
Net Loans		567,181			561,986			557,011			557,828			566,313
Other assets		55,485			52,757			51,652			52,919			51,270
Total Assets	$	1,106,445		$	1,067,871		$	1,086,405		$	1,014,221		$	1,014,561
Liabilities and Stockholders’ Equity
Deposits	$	886,593		$	840,125		$	806,198		$	770,063		$	765,277
Other interest-bearing liabilities		100,570			109,351			162,386			132,292			143,281
Other liabilities		3,878			3,950			3,963			3,290			2,881
Total liabilities		991,041			953,426			972,547			905,645			911,439
Stockholders’ Equity		115,404			114,445			113,858			108,576			103,122
Total Liabilities and Stockholders’ Equity	$	1,106,445		$	1,067,871		$	1,086,405		$	1,014,221		$	1,014,561
Period-end shares outstanding		18,781			18,757			18,730			18,700			18,674
Book value per share	$	6.14		$	6.10		$	6.08		$	5.81		$	5.52
Tangible book value per share		5.81			5.76			5.73			5.45			5.16
Capital and Liquidity
Total Capital to Risk Weighted Assets (a)		17.50	%		17.43	%		17.24	%		16.94	%		16.73	%
Tier 1 Capital to Risk Weighted Assets (a)		16.24	%		16.16	%		15.97	%		15.65	%		15.46	%
Tier 1 Capital to Average Assets (a)		9.43	%		9.50	%		9.48	%		9.41	%		9.43	%
Equity to Asset Ratio		10.43	%		10.72	%		10.48	%		10.71	%		10.16	%
Tangible Common Equity Ratio		9.91	%		10.18	%		9.94	%		10.11	%		9.56	%
Net Loans to Assets		51.26	%		52.63	%		51.27	%		55.00	%		55.82	%
Loans to Deposits		65.04	%		68.06	%		70.45	%		73.85	%		75.33	%
Asset Quality
Non-performing loans (b)	$	11,030		$	10,984		$	10,884		$	7,865		$	11,011
Other Real Estate Owned		544			585			569			799			856
Non-performing assets		11,574			11,569			11,453			8,664			11,867
Loans 30 – 89 days delinquent (b)		2,890			3,431			3,386			3,758			3,392
Charged-off loans		621			1,397			830			1,035			1,259
Recoveries		247			232			239			699			214
Net Charge-offs		374			1,165			591			336			1,045
Annualized Net Charge-offs to
Average Net Loans Outstanding		0.27	%		0.84	%		0.43	%		0.24	%		0.74	%
Allowance for Loan Losses to Total Loans		1.64	%		1.72	%		1.93	%		1.91	%		1.76	%
Non-performing Loans to Total Loans		1.91	%		1.92	%		1.92	%		1.38	%		1.91	%
Allowance to Non-performing Loans		85.64	%		89.40	%		100.92	%		138.28	%		92.06	%
Non-performing Assets to Total Assets		1.05	%		1.08	%		1.05	%		0.85	%		1.17	%

(a) March 31, 2012 ratio is estimated

(b) Amounts reported are unpaid principal balance

Unaudited

Reconciliation of Common Stockholders’ Equity to Tangible Common Equity

		xxxxxxx		xxxxxxx		xxxxxxx		xxxxxxx		xxxxxxx
	March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
	2012		2011		2011		2011		2011
Stockholders’ Equity	$	115,404	$	114,445	$	113,858	$	108,576	$	103,122
Less Goodwill and other intangibles		6,339		6,441		6,553		6,665		6,777
Tangible Common Equity	$	109,065	$	108,004	$	107,305	$	101,911	$	96,345

Reconciliation of Total Assets to Tangible Assets

		xxxxxxx		xxxxxxx		xxxxxxx		xxxxxxx		xxxxxxx
	March 31,		Dec. 31,		Sept. 30,		June 30,		March 31,
	2012		2011		2011		2011		2011
Total Assets	$	1,106,445	$	1,067,871	$	1,086,405	$	1,014,221	$	1,014,561
Less Goodwill and other intangibles		6,339		6,441		6,553		6,665		6,777
Tangible Assets	$	1,100,106	$	1,061,430	$	1,079,852	$	1,007,556	$	1,007,784

Reconciliation of Income Before Taxes to Pre-Tax, Pre-Provision Income

		xxxxxxx		xxxxxxx		xxxxxxx		xxxxxxx		xxxxxxx
	For the Three Months Ended
	March 31, 2012		Dec 31, 2011		Sept 30, 2011		June 30, 2011		March 31, 2011
Income before income taxes	$	3,310	$	4,009	$	3,054	$	2,684	$	2,011
Provision for loan losses		—		—		700		1,075		1,875
Pre-tax, pre-provision income	$	3,310	$	4,009	$	3,754	$	3,759	$	3,886

EX-99.2

Exhibit 99.2

April 26, 2012

Dear Fellow Shareholders:

Auto pioneer Henry Ford said “Anyone who stops learning is old, whether at twenty or eighty. Anyone who keeps learning stays young.”

Such is the case with Farmers National Banc Corp. We celebrated the 125^th anniversary of our company during the first quarter of 2012, and there is no doubt Farmers has the institutional wisdom that comes with its impressive age. However, as you will see in the news items below, Farmers continues to be young at heart; learning new and better ways to serve our valued customers and shareholders. It is the timeless pursuit of excellence in banking that makes Farmers even more relevant now in our community—as an “old” institution– than perhaps it was 125 years ago.

I have enclosed the first quarter earnings release for your complete review. In addition, I would like to take the opportunity to highlight a few first quarter activities that contributed to our positive financial results.

2012 First Quarter Business Highlights:

Branch Updates

Howland Branch

In July 2012, our Trumbull County flagship office will open showcasing our retail, wealth management, investment and lending services. This new branch will enable us to complete the Trumbull County geographic footprint by providing services to a demographic segment we were not previously reaching. This strategy is part of the overall growth plan to capture a larger portion of the Trumbull County market share.

Canton’s New Office

To better serve our Stark County customers’ banking needs, we are relocating our Farmers National Bank Canton branch from 1225 North Main Street to our new location at 4518 Fulton Drive NW, pending OCC approval. Conveniently located near the Westfield Belden Village Mall, our new, larger branch will allow us the space to offer additional banking services such as private banking and investment services, in the future. It will also enable us to provide the benefits of an upgraded facility and additional parking. The relocation is slated for the summer of 2012.

20 South Broad Street v PO Box 555 v Canfield, OH 44406-0555

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Toll Free: 1-888-988-3276 v Ph. (330) 533-5127 v Fax: (330) 533-0451 v Web Site: www.farmersbankgroup.com

Positive Survey Results

During the first quarter, Farmers National Bank completed a customer survey to ensure that customer and management perceptions are in alignment. The comprehensive survey asked business and personal banking customers several questions that focused on three main themes: quality of service, quality of products and overall satisfaction. I am extremely proud and humbled to learn that we received an unprecedented 97% satisfaction rating. With results so favorable, we plan on communicating this valuable information through future branding campaigns.

Other highlights include: 98% of personal banking customers and 97.5% of business banking customers believe Farmers National Bank works to make our community a better place and 98% of personal banking customers and 96.5% of business banking customers believe Farmers National Bank is a well-capitalized, financially strong bank.

Shale Resource Team

In response to the impact oil and gas exploration is having on the region’s economic development, Farmers National Bank has created a Shale Resources Team comprised with banking professionals, accountants and investment experts. The Farmers Shale Resource Team has the expertise needed to assess a customer’s needs by managing new shale profits and assets, monitoring marketplace conditions and presenting customers with savings and investment options. Farmers National Bank wants to ensure our communities are well protected and looks forward to guiding our customers who have benefited from recent and future oil and gas developments.

Conclusion/Outlook

New offices, new insights and new opportunities. The first quarter of 2012 has set a positive tone for the remainder of the year. In its long history, Farmers has experienced many business cycles. Our experience tells us we are at the beginning of an exciting time of growth, while our youthful attitude keeps us open to all the new possibilities of tomorrow’s economy.

Thank you for your continued support and I welcome any questions and comments you may have regarding this information.

Sincerely,

John S. Gulas

President & Chief Executive Officer

20 South Broad Street v PO Box 555 v Canfield, OH 44406-0555

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Toll Free: 1-888-988-3276 v Ph. (330) 533-5127 v Fax: (330) 533-0451 v Web Site: www.farmersbankgroup.com

EX-99.3

Exhibit 99.3 Annual Shareholders' Meeting April 26, 2012

2 2 2011

Carl D. Culp Executive Vice President Chief Financial Officer 3

Return on Average Assets 4 Source: SNL Financial 1: Publicly traded banks with headquarters in Ohio 1

Return on Average Equity 5 Source: SNL Financial 1: Publicly traded banks with headquarters in Ohio 1

Net Interest Margin 6 Source: FDIC 1: Commercial Banks with assets between $1 Billion and $3 Billion. 1

Yield on Earning Assets 7 Source: FDIC 1: Commercial Banks with assets between $1 Billion and $3 Billion. 1

Cost of Funds 8 Source: FDIC 1: Commercial Banks with assets between $1 Billion and $3 Billion. 1

Growing and Diverse Revenue Streams 9 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

Efficiency Ratio 10 Source: SNL Financial 1: Publicly traded banks with headquarters in Ohio 1

Low Cost and Predominantly Core Deposit Funding 11 Core deposits represent approximately 88% of total deposits Q4 11 deposit composition: Savings & Money Market: 45%; Time Deposits: 30%; Demand & NOW: 25% Less than 12% of total funding was wholesale deposits or FHLB advances at 12/31/11. *CAGR (Compounded Annual Growth Rate)

12 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 Less than 2% of loan portfolio is construction loans Loan Portfolio Mix (December 31, 2011) Note: Dollars in thousands Diverse Loan Mix

Net Charge-Offs to Average Loans 13 Source: FDIC 1: Commercial Banks with assets between $1 Billion and $3 Billion. 1

Nonperforming Assets as a % of Total Assets 12/31/11 14 Source: FDIC 1: Commercial Banks with headquarters in Ohio. 2: Bank holding companies with assets between $1 Billion and $3 Billion 1 2

Highlights of First Quarter 2012 15 Net Income increased 49% to $2.5 million or $0.13 per diluted share for the first quarter of 2012 compared to $1.7 million or $0.10 for the first quarter of 2011. Improved credit quality resulted in a lower loan loss provision. Continued improvement in noninterest income. Deposits increased 16% from March 31, 2011 to March 31, 2012. 117 consecutive quarters of positive earnings.

Turning Technologies How many presidents has Farmers National Banc Corp. had in our 125 year history? 8 9 10 11 16

John S. Gulas President & Chief Executive Officer 17

Turning Technologies What percent did our stock increase in value over the last year? 9% 19% 29% 39% 18

2011 Highlights 19 January 2011 - December 2011: +39.44% Source: SNL Financial

2011 Highlights 20 January 2012 - March 2012: +31.11% Source: SNL Financial

Turning Technologies On what day did Farmers National Banc Corp. begin trading its common shares on NASDAQ? July 15, 2011 August 15, 2011 September 15, 2011 October 15, 2011 21

2011 Highlights 22

Turning Technologies How many new locations did Farmers National Banc Corp. announce in the past year? 0 1 2 3 23

Canton 24

Howland 25 1625 Niles-Cortland Rd., Warren, OH 44484

McClurg Road 26

Turning Technologies Where is the Farmers National Bank ATM located on the Youngstown State University campus? Jones Hall Beeghly Center Williamson College of Business Cushwa Hall 27

2011 Highlights Youngstown State University ATM located in Beeghly Center Special checking account offer to students Participated in Welcome Week 28

2011 Highlights Farmers Shale Resource Team Staffed with banking professionals, accountants and investment experts Expertise needed to assess a customer's needs managing new shale profits and assets, monitor marketplace conditions and present customers with savings and investment options 29

2011 Highlights Focus on Fee Income Farmers Trust Company $912 Million to $950 Million in Assets under Management Farmers National Insurance Over 280 Property and Casualty Insurance policies sold since March 2010 80 Medicare policies sold during the 2011 Open Enrollment Farmers National Investments Produced over $1.2 Million in Gross Revenues in 2011 30

2012 Strategic Initiatives Expand Asset Base through Acquisition, Loan and Core Deposit Growth Organic Growth De Novo Acquisition 31

2012 Strategic Initiatives Diversify Financial Services and Expand Non- Interest Income Mortgage Private Banking Farmers Trust Company Farmers National Investments Farmers National Insurance FAST 32

2012 Strategic Initiatives Leverage Technology Expand asset base and leverage technology by creating a virtual branch Loan Applications Deposit Applications Mobile Banking E-statements Entering into Social Media 33

2012 Strategic Initiatives Brand Enhancement Utilize brand awareness to acquire customers from competition and new economic resurgance 125 Year Anniversary Bride & Groom Survey 34

224 Billboard December, 2010 February, 2011

224 Billboard April, 2011

224 Billboard What's next for our Farmers' Billboard Couple? • Baby: 9.3% • Honeymoon: 19.0% • New car: 9.0% • New home: 22.2% • Pet: 40.5% October, 2011

224 Billboard November, 2011 • Ugly Holiday Sweater Contest received 5,273 votes

Turning Technologies What is next for the mannequins? Baby House Car Vacation 39

224 Billboard

Turning Technologies What is Farmers National Bank's overall customer satisfaction rate? 82% 87% 92% 97% 41

Survey Results Customer and Employee Surveys Conducted in January 2012 Survey Satisfaction Rates Personal Customers: 97.13% Business Customers: 96.10% Overall: 97.03%

2012 Strategic Initiatives Risk Management and Asset Quality Expand asset base with enhanced loan product set SBA SWAP Utica Shale 43

2012 Strategic Initiatives Attract, Develop and Retain Quality People Key Positions Hired in 2011 and 2012 Farmers National Bank Chief Lending Officer, Joseph Gerzina Commercial Lending Team Leader, Tim Shaffer Mortgage Manager, Christopher Willoughby Mortgage Lending Team Leader, Rocco Page Mortgage Lending Team Leader, George Stoffer Mortgage Loan Consultant, Jim Wellington Corporate Security Officer, Dale Sturdevant Senior Commercial Credit Analyst, Lisa Baird Senior Commercial Credit Analyst, Dana Stine Branch Manager, Austintown, Rick Palmer Farmers Trust Company Chief Investment Officer and Treasurer, Joseph DePascale Senior Portfolio Manager/Investment Team Leader, David Dastoli 44

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