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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
(Mark One)
[X] Annual Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 (Fee Required)
For the fiscal year ended December 31, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 (No Fee Required)
For the transition period from ________ to __________
Commission file number 0-12055
Farmers National Banc Corp.
(Exact name of registrant as specified in its charter)
Ohio 34-1371693
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
20 South Broad Street
Canfield, Ohio 44406 44406
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 330-533-3341
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, no par value
(Title of Class)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein,
and will not be contained, to the best of registrant's
knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]
The registrant estimates that as of February 24, 1997, the
aggregate market value of the voting stock held by
non-affiliates of the registrant (including 242,536 shares held
by officers and directors of the registrant) was approximately
$80,496,925.
As of February 24, 1997, the registrant had outstanding
3,311,268 shares of common stock having no par value.
DOCUMENTS INCORPORATED BY REFERENCE
Parts of Form 10-K
into which
Document Document is Incorporated
1996 Annual Report to Shareholders II
Definitive proxy statement for the 1996 Annual
Meeting of Shareholders to be held on March 27, 1997 III
Form 10-K Cross Reference Index to Annual Report to Shareholders
Part I
Item 1 - Business
Description of Business 7
Average Balance Sheets/Interest /Rates 11
Securities 17
Risk Elements of Loan Portfolio 16
Loan Loss Experience 15
Deposits 18
Financial Ratios 10, 12
Short-Term Borrowings 30
Part II
Item 5
Market For Registrant's Common Stock
and Related Stockholder Matters 20
Item 6
Selected Financial Data 10
Item 7
Management's Discussion and Analysis of
Financial Condition and Results of Operations 12-19
Item 8
Financial Statements and Supplementary Data 22-36
Item 9
Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure - None
Part IV
Report of Hill, Barth & King, Inc.,
Independent Auditors 21
Financial Statements:
Consolidated Balance Sheets -
December 31, 1996 and 1995 22
Consolidated Statements of Income -
Calendar Years 1996, 1995 and 1994 23
Consolidated Statement of Changes in
Stockholders' Equity - Calendar Years
1996, 1995 and 1994 24
Consolidated Statements of Cash
Flows - Calendar Years 1996, 1995
and 1994. 25
Notes to Financial Statements 26-36
FARMERS NATIONAL BANC CORP.
FORM 10-K
1996
INDEX
Part I. Page
Item 1. Business:
General I-2
Volume and Rate Analysis I-7
Loans I-8
Allocation of Allowance For Loan Losses I-9
Deposits I-10
Item 2. Properties I-11
Item 3. Legal Proceedings I-11
Item 4. Submission of Matters to a Vote of Security Holders I-11
Part III.
Item 10. Directors and Executive Officers of the Registrant III-1
Item 11. Executive Compensation III-2
Item 12. Security Ownership of Certain Beneficial Owners and
Management III-2
Item 13. Certain Relationships and Related Transactions III-2
Part IV.
Item 14. Exhibits, Financial Statement Schedules, and Reports
on Form 8-K IV-1
Part I
Item 1. Business General
The Corporation
The registrant, Farmers National Banc Corp. (herein sometimes
referred to as the Corporation), is a one-bank holding company
registered under the Bank Holding Company Act of 1956, as
amended. The only subsidiary is The Farmers National Bank of
Canfield, which was acquired March 31, 1983. The Corporation
and its subsidiary operate in one industry, domestic banking.
The Corporation conducts no business activities except for
investment in securities permitted under the Bank Holding
Company Act. Bank holding companies are permitted under
Regulation Y of the Board of Governors of the Federal Reserve
System to engage in other activities such as leasing and
mortgage banking.
The Bank
The Bank is a full-service national bank engaged in commercial
and retail banking in Mahoning and Columbiana Counties, Ohio.
The Bank's commercial banking services include checking
accounts, savings accounts, time deposit accounts, commercial,
mortgage and installment loans, home equity loans, home equity
lines of credit, night depository, safe deposit boxes, money
orders, bank checks, automated teller machines and travelers
checks, "E" Bond transactions, utility bill payments, MasterCard
and Visa credit cards, and other miscellaneous services normally
offered by Commercial Banks. In addition, the Bank offers
Discount Brokerage Service.
Supervision and Regulation
The Corporation is a one bank holding company and is
regulated by the Federal Reserve Bank (the "FRB"). The bank is
a national bank and is regulated by the Office of the
Comptroller of the Currency (the "OCC"), as well as the Federal
Deposit Insurance Corporation (the "FDIC"). Changes have
developed over the past several years regarding minimum capital
requirements for financial institutions. A listing of the
minimum requirements for capital and the Corporation's capital
position as of December 31, 1996 are presented in Note J on
page 31 of the annual report to shareholders for the year ended
December 31, 1996 and is hereby incorporated by reference.
The Corporation is subject to regulation under the Bank
Holding Company Act of 1956, as amended. This Act restricts the
geographic and product range of bank holding companies by
defining the types and locations of institutions the holding
companies can own or acquire. This act also regulates
transactions between the Corporation and the bank and generally
prohibits tie-ins between credit and other products and
services.
Supervision and Regulation (Continued)
The bank is subject to regulation under the National
Banking Act and is periodically examined by the OCC and is
subject to the rules and regulations of the FRB. As an insured
institution and member of the Bank Insurance Fund ("BIF"), the
bank is also subject to regulation by the FDIC. Establishment
of branches is subject to approval of the OCC and geographic
limits established by state law. Ohio branch banking law
permits a bank having its principal place of business in the
State of Ohio to establish branch offices in any county in Ohio
without geographic restrictions.
FDICIA
The Federal Deposit Insurance Corporation Improvement Act
of 1991 ("FDICIA") revised the bank regulatory and funding
provisions of the Federal Deposit Insurance Act and several
other federal banking statutes. Among other things, FDICIA
requires federal banking agencies to broaden the scope of
corrective action taken with respect to banks that do not meet
minimum capital requirements and to take such actions promptly
in order to minimize losses to the FDIC.
FDICIA established five capital tiers: "well capitalized";
"adequately capitalized"; "undercapitalized"; "significantly
undercapitalized"; and "critically undercapitalized" and imposes
significant restrictions on the operations of a depository
institution that is not in either of the first two of such
categories. A depository institution's capital tier will depend
upon the relationship of its capital to various capital
measures. A depository institution will be deemed to be "well
capitalized" if it significantly exceeds the minimum level
required by regulation for each relevant capital measure,
"adequately capitalized" if it meets each such measure,
"undercapitalized" if it is significantly below any such measure
and "critically undercapitalized" if it fails to meet any
critical capital level set forth in regulations. An institution
may be deemed to be in a capitalization category that is lower
than is indicated by its actual capital position if it receives
an unsatisfactory examination rating or is deemed to be in an
unsafe or unsound condition or to be engaging in unsafe or
unsound practices.
Under regulations adopted under these provisions, for an
institution to be well capitalized it must have a total
risk-based capital ratio of at least 10%, a Tier I risk-based
capital ratio of at least 6% and a Tier I leverage ratio of at
least 5% and not be subject to any specific capital order or
directive. For an institution to be adequately capitalized, it
must have a total risk-based capital ratio of at least 8%, a
Tier I risk-based capital ratio of at least 4% and a Tier I
leverage ratio of at least 4% (or in some cases 3%). Under the
regulations, an institution will be deemed to be
undercapitalized if the bank has a total risk-based capital
ratio that is less than 8%, a Tier I risk-based capital ratio
that is less than 4% or a Tier I leverage ratio of less than 4%
(or in some cases 3%). An institution will be deemed to be
significantly undercapitalized if the bank has a total
risk-based capital ratio that is less than 6%, a Tier I
risk-based capital ratio that is less than 3%, or a leverage
ratio that is less than 3% and will be deemed to be critically
undercapitalized if it has a ratio of tangible equity to total
assets that is equal to or less than 2%.
Supervision and Regulation (Continued)
FDICIA generally prohibits a depository institution from
making a capital distribution (including payment of dividends)
or paying management fees to any entity that controls the
institution if it thereafter would be undercapitalized.
If an institution becomes undercapitalized, it will be
generally restricted from borrowing from the Federal Reserve,
increasing its average total assets, making any acquisitions,
establishing any branches or engaging in any new line of
business. An undercapitalized institution must submit an
acceptable capital restoration plan to the appropriate federal
banking agency, which plan must, in the opinion of such agency,
be based on realistic assumptions and be "likely to succeed" in
restoring the institution's capital. In connection with the
approval of such a plan, the holding company of the institution
must guarantee that the institution will comply with the plan,
subject to a limitation of liability equal to a portion of the
institution's assets. If an undercapitalized institution fails
to submit an acceptable plan or fails to implement such a plan,
it will be treated as if it is significantly undercapitalized.
Under FDICIA, bank regulators are directed to require
"significantly undercapitalized" institutions, among other
things, to restrict business activities, raise capital through a
sale of stock, merge with another institution and/or take any
other action which the agency determines would better carry out
the purposes of FDICIA.
Within 90 days after an institution is determined to be
"critically undercapitalized", the appropriate federal banking
agency must, in most cases, appoint a receiver or conservator
for the institution or take such other action as the agency
determines would better achieve the purposes of FDICIA. In
general, "critically undercapitalized" institutions will be
prohibited from paying principal or interest on their
subordinated debt and will be subject to other substantial
restrictions.
Under FDICIA, an institution that is not well capitalized
is generally prohibited from accepting brokered deposits.
Undercapitalized institutions are prohibited from offering
interest rates on deposits significantly higher than prevailing
rates.
The provisions of FDICIA governing capital regulations
became effective on December 19, 1992. FDICIA also directs that
each federal banking agency prescribe standards for depository
institutions and depository institution holding companies
relating to internal controls, information systems, internal
audit systems, loan documentation, credit underwriting, interest
rate exposure, asset growth, a maximum ratio of classified
assets to capital, a minimum ratio of market value to book value
for publicly traded shares (if feasible) and such other
standards as the agency deems appropriate.
Supervision and Regulation (Continued)
FDICIA also contains a variety of other provisions that
could affect the operations of the Corporation, including new
reporting requirements, regulatory standards for real estate
lending, "truth in savings" provisions, the requirement that a
depository institution give 90 days' prior notice to customers
and regulatory authorities before closing any branch, limitations
on credit exposure between banks, restrictions on loans to a
bank's insiders and guidelines governing regulatory examinations.
Pursuant to FDICIA, the FDIC has developed a transitional
risk-based assessment system, under which, beginning on January
1, 1993, the assessment rate for an insured depository
institution varied according to its level of risk. An
institution's risk category will depend upon whether the
institution is well capitalized, adequately capitalized or less
than adequately capitalized and whether it is assigned to
Subgroup A, B or C. Subgroup A institutions are financially
sound institutions with few minor weaknesses; Subgroup B
institutions are institutions that demonstrate weaknesses which,
if not corrected, could result in significant deterioration; and
Subgroup C institutions are institutions for which there is a
substantial probability that the FDIC will suffer a loss in
connection with the institution unless effective action is taken
to correct the area of weakness. Based on its capital and
supervisory subgroups, each BIF member institution will be
assigned an annual FDIC assessment rate per $100 of insured
deposits.
INTERSTATE BANKING AND BRANCHING LEGISLATION
The Riegle-Neal Interstate Banking and Branching Efficiency
Act of 1994 (the "IBBEA") authorizes interstate acquisitions of
banks and bank holding companies without geographic constraint
beginning September 29, 1995. Beginning June 1, 1997, the IBBEA
also authorizes banks to merge with banks located in another
state provided that neither state has "opted out" of interstate
branching between September 29, 1994 and May 31, 1997. States
also may enact legislation permitting interstate merger
transactions prior to June 1, 1997. After acquiring interstate
branches through a merger, a bank may establish additional
branches in that state at the same locations as any bank
involved in the merger could have established branches under
state and federal law. In addition, a bank may establish a de
novo branch in another state that expressly permits the
establishment of such branches. A bank that establishes a de
novo interstate branch may thereafter establish additional
branches on the same basis as a bank that has established
interstate branches through a merger transaction.
If a state "opts out" of interstate branching, no bank from
another state may establish a branch in that state, whether
through a merger or de novo establishment. Several states are
considering legislation to opt out of the interstate branching
provisions of the IBBEA or, alternatively, to permit interstate
branching prior to the June 1, 1997 statutory effective date. It
is not possible to predict the full impact of these actions on
the Bank or the Corporation until May 31, 1997, the date by
which all such statutes must be adopted.
Competition
The Bank competes with state and national banks located in
Mahoning and Columbiana counties.
The Bank also competes with a large number of other
financial institutions, such as savings and loan associations,
insurance companies, consumer finance companies, credit unions
and commercial finance and leasing companies, for deposits,
loans and service business. Money market mutual funds,
brokerage houses and similar institutions provide in a
relatively unregulated environment many of the financial
services offered by the Bank.
Many competitors have substantially greater resources than the
Bank. In the opinion of management, the principal methods of
competition are the rates of interest charged for loans, the
rates of interest paid for funds, the fees charged for services
and the availability of services.
RATE AND VOLUME ANALYSIS
The following table analyzes by rate and volume the dollar amount of changes in the components of the
interest differential:
(In Thousands of Dollars)
1996 change from 1995 1995 change from 1994
Net Change Due Change Due Net Change Due Change Due
Change To Volume To Rate Change To Volume To Rate
Tax Equivalent Interest Income
Interest-earning assets:
Loans $2,939 $2,393 $546 $1,669 $974 $695
Taxable securities 169 65 104 21 (181) 202
Tax-exempt securities 13 15 (2) 19 (9) 28
Federal funds sold (199) (154) (45) 527 306 221
Total interest income $2,922 $2,319 $603 $2,236 $1,090 $1,146
Interest Expense
Time deposits $890 $817 $73 $1,907 $831 $1,076
Savings deposits (55) 41 (96) (270) (184) (86)
Demand deposits 83 77 6 (132) (29) (103)
Repurchase agreements 57 90 (33) 151 40 111
Borrowings 94 110 (16) 32 7 25
Total interest expense $1,069 $1,135 ($66) $1,688 $665 $1,023
Increase in tax equivalent
net interest income $1,853 $548
The amount of change not solely due to rate or volume changes was allocated between the change due to rate
and the change due to volume based on the relative size of the rate and volume changes.
Loans
Total net loans were $263,504,434 at year-end 1996 compared to
$229,248,832 at year-end 1995. This is an increase of
$34,255,602, or 14.94%. Loans comprised 81.1% of the Bank's
average earning assets during 1996, compared to 78.8% in 1995.
The product mix in the Loan Portfolio shows Commercial Loans
comprising 9.9%, Real Estate Mortgage Loans 39.2% and
Installment Loans to Individuals 50.9% at December 31, 1996,
compared with 9.7%, 42.5% and 47.8%, respectively, at December
31, 1995.
Loans contributed 86.5% of total interest income in 1996
compared to 84.6% in 1995. Loan yield was 8.59% in 1996, 46
basis points greater than the average rate for total earning
assets. Management recognizes that while the Loan Portfolio
holds some of the Bank's highest yielding assets, it is
inherently the most risky portfolio. Accordingly, Management
attempts to balance credit risk versus return with conservative
credit standards. Management has developed and maintains
comprehensive underwriting guidelines and a loan review function
which monitors credits during and after the approval process.
To minimize risks associated with changes in the borrower's
future repayment capacity, the Bank generally requires scheduled
periodic principal and interest payments on all types of loans
and normally requires collateral.
Installment Loans to Individuals increased from $110,805,000 on
December 31, 1995 to $135,832,000 on December 31, 1996 which
represents a 22.6% increase. Management continues to target the
automobile dealer network to purchase indirect Installment
Loans. Dealer paper was purchased using strict underwriting
guidelines with an emphasis on quality. Indirect Loans comprise
77% of the Installment Loan Portfolio. Net loan losses on the
Installment Loan portfolio were $275,000 in 1996 as compared to
$148,000 in 1995. This represents .20% of total Installments
Loans outstanding for 1995 and .14% for 1995.
Real Estate Mortgage Loans increased to $104,389,000 at December
31, 1996, an increase of 5.8% over 1995. These loans are all
made within the Bank's primary market area. The corporation
originated both fixed rate and adjustable rate mortgages during
1996. All mortgage loans made in 1996 are held in the Mortgage
Loan portfolio and are not sold on the secondary market. Fixed
rate terms are limited to fifteen year terms while adjustable
rate products are offered with maturities up to thirty years.
Commercial Loans at December 31, 1996 increased from year-end
1995 with outstanding balances of $26,481,000. This portfolio
is comprised of primarily variable rate loans. The Bank's
commercial loans are granted to customers within the immediate
trade area of the Bank. The mix is diverse, covering a wide
range of borrowers and business types. The Bank monitors and
controls concentrations within a particular industry or segment
of the economy. These loans are made for purposes such as
equipment purchases, capital improvements, the purchase of
inventory, general working capital purposes and small business
lines of credit.
ALLOCATION OF ALLOWANCE FOR LOAN LOSSES
The allowance for possible loan and lease losses has been allocated according to the amount deemed to be reasonably
necessary to provide for the possibility of losses being incurred within the following categories of loans as of the dates
indicated:
(In Thousands of Dollars)
December 31, 1996 1995 1994 1993 1992
Loans Loans Loans Loans Loans
to to to to to
Total Total Total Total Total
Amount Loans Amount Loans Amount Loans Amount Loans Amount Loans
Commercial,
Financial and
Agricultural $1,873 9.9% $1,800 9.7% $1,700 11.2% $1,692 11.9% $1,599 12.8%
Real Estate-
Mortgage 263 39.2% 250 42.5% 200 42.6% 170 40.1% 75 38.0%
Installment
Loans to
Individuals 1,062 50.9% 861 47.8% 846 46.2% 759 48.0% 600 49.2%
$3,198 100.0% $2,911 100.0% $2,746 100.0% $2,621 100.0% $2,274 100.0%
The allocation of the allowance as shown in the table above should not be interpreted as an indication
that charge-offs in 1997 will occur in the same proportions or that the allocation indicates future charge-off
trends. Furthermore, the portion allocated to each loan category is not the total amount available for
losses that might occur within such categories since the total allowance is a general allowance applicable
to the entire portfolio.
Deposits
Deposits represent the Corporation's principal source of funds.
The deposit base consists of demand deposits, savings and money
market accounts and other time deposits. During the year, the
Corporation's total deposits grew from $267,955,000 in 1995 to
$283,811,000 in 1996, which equates to an increase of 5.9% .
Most of this growth occurred in time deposits, which increased
from $119,468,000 in 1995 to $129,651,000 in 1996. This
increase is primarily the result of a special rate offering on
certificates of deposit occurring in the fourth quarter of the
year which generated approximately $7,200,000 in new money to
the Corporation. As a result of this special offering, the
overall cost of time deposits increased slightly, from 5.71% in
1995 to 5.77% in 1996.
Item 2. Properties
Farmers National Banc Corp.'s Properties
The Farmers National Banc Corp. owns no property. Operations
are conducted at 20 South Broad Street, Canfield, Ohio.
Bank Property
The Main Office is located at 20 S. Broad Street, Canfield,
Ohio. The other eight offices of the bank are:
Austintown Office 22 N. Niles-Canfield Rd., Youngstown, Ohio
Lake Milton Office 17817 Mahoning Avenue, Lake Milton, Ohio
Cornersburg Office 3619 S. Meridian Rd., Youngstown, Ohio
Colonial Plaza Office 401 E. Main St. Canfield, Ohio
Western Reserve Office 102 W. Western Reserve Rd., Youngstown, Ohio
Salem Office 1858 E. State Street, Salem, Ohio
Columbiana Office 340 State Rt. 14, Columbiana, Ohio
Leetonia Office 16 Walnut St., Leetonia, Ohio
Damascus Office 29053 State Rt. 62 Damascus, Ohio
The bank owns the Main Office, Austintown, Cornersburg, Lake
Milton, Salem, Columbiana, Leetonia and Damascus Offices. The
Colonial Plaza and Western Reserve offices are occupied under
operating leases expiring at various times to 1999. All of the
leases provide for renewal options in favor of the bank.
Item 3. Legal Proceedings
There are no material pending legal proceedings to which the
registrant or its subsidiary is a party or of which any of its
property is subject, except proceedings which arise in the
ordinary course of business. In the opinion of management,
pending legal proceedings will not have a material affect on the
consolidated financial position of the registrant or its
subsidiary.
Item 4. Submission of Matters to a Vote of Security Holders
There are no matters submitted to a vote of security holders
through the solicitation of proxies or otherwise during the
fourth quarter of 1996.
PART III
Item 10. Directors and Executive Officers of the Registrant
Information relating to Directors is set forth in the
registrant's definitive proxy statement, which was used in
connection with its annual meeting of shareholders which will be
held March 27, 1997. The proxy statement is attached hereto.
Executive Officers of the Registrant
The names, ages and positions of the executive officers as of
March 1, 1997:
Name Age Position Held
William D. Stewart 67 Chairman
Richard L. Calvin 70 Vice Chairman
Frank L. Paden 46 President and Secretary
Carl D. Culp 33 Executive Vice President
and Treasurer
Donald F. Lukas 50 Senior Vice President
Adrianne R. Kempers 39 Auditor
Officers are elected annually by the Board of Directors
immediately following the annual meeting of shareholders. The
term of office for all the above executive officers is for the
period ending with the next annual meeting.
Principal Occupation and Business Experience of Executive Officers
Mr. William D. Stewart has served as Chairman since March 1996.
Prior to that time, he was President and Secretary since the
inception of registrant on March 31, 1983, was President of the
Bank since 1972 and has held various other executive positions
with the Bank.
Mr. Richard L. Calvin has served as Vice Chairman since March
1996. Prior to that time, he was Executive Vice President and
Treasurer of the registrant since its inception on March 31,
1983, was Executive Vice President of the bank since 1972 and
has held various other executive positions with the Bank.
Mr. Frank L. Paden has served as President and Secretary since
March 1996. Prior to that time he was Executive Vice President
of the registrant since March 1995, was Executive Vice President
of the Bank since March 1995 and has held various other
executive positions with the Bank.
PART III, (Continued)
Mr. Carl D. Culp has served as Executive Vice President and
Treasurer since March 1996. Prior to that time he was
Controller of the registrant since November 1995 and was
Controller of the Bank since November 1995.
Mr. Donald F. Lukas has served as Senior Vice President of the
registrant since March 1996. Prior to that time, he was Vice
President of the Bank since March 1987.
Ms. Adrianne R. Kempers has served as Auditor of the registrant
since November 1995 and as Auditor of the Bank since November
1995.
Item 11. Executive Compensation
Information regarding this item is set forth in the registrant's
definitive proxy statement, which was used in connection with
its annual meeting of shareholders which will be held March 27,
1997. The proxy statement is attached hereto.
Item 12. Security Ownership of Certain Beneficial Owners and Management
Information relating to this item is set forth in the
registrant's definitive proxy statement, which was used in
connection with its annual meeting of shareholders which will be
held March 27, 1997. The proxy statement is attached hereto.
Item 13. Certain Relationships and Related Transactions
Information regarding this item is set forth in the registrant's
definitive proxy statement, which was used in connection with
its annual meeting of shareholders which will be held March 27,
1997. The proxy statement is attached hereto.
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a)1. Financial Statements
Included in Part II of this report
Item 8., Financial Statements and Supplementary Data
is set forth in the registrant's 1996 Annual Report to
Shareholders and is incorporated by reference in Part II
of this report.
(a)2. Financial Statement Schedules Page
Accountant's consent IV-2
All schedules are omitted because they are
not applicable.
(a)3. Exhibits
The exhibits filed or incorporated by reference as a part of
this report are listed in the Index of Exhibits, which appears
at page IV-4 hereof and is incorporated herein by reference.
(b) Report on Form 8-K
No reports were filed for three months ended December 31, 1996.
INDEPENDENT AUDITORS' CONSENT
FARMERS NATIONAL BANC CORP.:
We hereby consent to the incorporation by reference in this Registration
Statement of our report dated January 23, 1997, relating to the consolidated
financial statements of Farmers National Banc Corp. and subsidiary.
/s/ HILL, BARTH & KING, INC.
Warren, Ohio
March 25, 1997
SIGNATURES
Pursuant to the requirements of Section 13 or 15(D) of the
Securities and Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the under
signed, thereunto duly authorized.
Farmers National Banc Corp. Farmers National Banc Corp.
by__________________________ by_____________________________
Frank L. Paden Carl D. Culp
President and Secretary Executive Vice President and
Treasurer
________________________ Chairman March 25, 1997
William D. Stewart
________________________ Director March 25, 1997
Benjamin R. Brown
________________________ Vice Chairman March 25, 1997
Richard L. Calvin
________________________ Director March 25, 1997
Joseph O. Lane
________________________ Director March 25, 1997
David C. Myers
________________________ Director March 25, 1997
Edward A. Ort
________________________ President March 25, 1997
Frank L. Paden and Director
________________________ Director March 25, 1997
Ronald V. Wertz
INDEX TO EXHIBITS
The following exhibits are filed or incorporated by references
as part of this report:
2. Not applicable.
3(i). Not applicable.
3(ii). Not applicable.
4. The registrant agrees to furnish to the Commission upon request
copies of all instruments not filed herewith defining the rights
of holders of long-term debt of the registrant and its subsidiaries.
9. Not applicable.
10. Not applicable.
11. Not applicable.
12. Not applicable.
13. Annual Report to security holders (filed herewith).
16. Not applicable.
18. Not applicable.
21. Subsidiaries of the registrant (filed herewith).
22. Not applicable.
23. Not applicable.
24. Not applicable.
27. Financial Data Schedule (filed herewith)
99. Definitive Proxy Statement (filed herewith)
Copies of any exhibits will be furnished to shareholders upon
written request. Request should be directed to Carl D. Culp,
Executive Vice President, Farmers National Banc Corp., 20 S.
Broad Street, Canfield, Ohio 44406.