Farmers National Banc Corp. Supports $175 Million Private Equity Fund for Small Businesses

Farmers National Banc Corp. Supports $175 Million Private Equity Fund for Small Businesses

CANFIELD, Ohio--(BUSINESS WIRE)-- Farmers National Banc Corp. (NAS: FMNB) announced today its investment in the F.N.B. Capital Partners (FNBCP) launched Small Business Investment Company (SBIC) fund. The Fund closed in May 2013 and received its license from the U.S. Small Business Administration ("SBA") to operate FNBCP as an SBIC, making it eligible for additional leverage financing from the SBA. Along with its initial capital raise and eligible leverage, the Fund has deployable capital of $175 million. Farmers National Banc Corp. is proud to be one of the Fund's investors along with several high net worth individuals, a pension fund and five additional regional financial institutions. The Fund, which exceeded its initial target of $150 million, will be managed by Tecum Capital Management.

"Farmers National Banc Corp. is proud to be one of the founding investors of the Small Business Investment Company fund," stated John S. Gulas, President and Chief Executive Officer, Farmers National Bank Corp. "The SBIC fund will provide entrepreneurs and small businesses the opportunity and the means to cultivate and expand their promising business ventures."

As the only active SBIC based in Pittsburgh, Pennsylvania, FNBCP will focus on mezzanine debt and private equity investments in lower middle market companies. FNBCP's goal is to add value to the regional business and entrepreneurial community by growing small businesses into larger enterprises and supporting job growth. Accordingly, the Fund plans to provide up to $10 million in capital for change of control transactions, recapitalizations, acquisitions, refinancing and growth initiatives.

FNBCP and Tecum founders Stephen J. Gurgovits, Jr., Matthew L.T. Harnett, Tyson S. Smith and Joseph E. Bute have 35 years of combined experience managing private equity and mezzanine debt investments. Gurgovits, Jr., Harnett and Smith formerly managed F.N.B. Capital Corporation, LLC, a wholly-owned merchant banking subsidiary of F.N.B. Corporation. Mr. Bute previously managed the Pittsburgh office of the Gladstone Companies, a family of public and private investment funds. Collectively, the team has invested $250 million in more than 40 companies.

The SBIC program was created in 1958 and is administered by the SBA. SBICs are financed by general and limited partners, as well as the Small Business Administration. By adhering to specific SBIC investment and regulatory guidelines, low interest rate debt from the SBA can be added to the private capital raised by the general partners. SBICs invest in small businesses, defined as companies with an average net income of less than $6 million over the prior two years and a net worth of less than $18 million, though certain exceptions can be made based on the number of employees at the small business.

About Farmers National Banc Corp.
Farmers National Banc Corp. is a diversified financial services company headquartered in Canfield, Ohio, with more than $1 billion in Banking assets and $1 billion in Trust assets. Farmers National Banc Corp.'s wholly-owned subsidiaries are comprised of The Farmers National Bank of Canfield, a full-service national bank engaged in commercial and retail banking with 19 retail offices in Mahoning, Trumbull, Columbiana and Stark Counties in Ohio, and Farmers Trust Company, which operates two trust offices and offers services in the same geographic markets. Farmers National Insurance, LLC, a wholly-owned subsidiary of The Farmers National Bank of Canfield, offers a variety of insurance products.

Founded in 1887, the bank has been community-minded and committed to the Valley for over 125 years. Throughout the recent financial crisis, Farmers has shown great strength by continuing rock-solid business and lending practices that help the individuals and businesses in our communities thrive and survive.

About F.N.B. Capital Partners, LP
F.N.B. Capital Partners, LP is a pooled fund of committed capital licensed by the Small Business Administration as a Small Business Investment Company (SBIC) Fund. The Fund, headquartered in Pittsburgh, PA, invests $3 million to $10 million per transaction. The Fund specializes in providing mezzanine debt, subordinated notes, private equity and other types of financial capital to small and medium size commercial enterprises for the purposes of recapitalizations, buyouts, generational transitions, mergers and acquisitions and other growth capital. For more information, please visit www.fnbcp.com.

About Tecum Capital Management
Tecum Capital Management is a private investment firm and management company for the Small Business Investment Company (SBIC) fund, F.N.B. Capital Partners, LP. Tecum Capital Management, based in Pittsburgh, PA, oversees a pool of committed capital focused on mezzanine debt, subordinated notes, private equity and other types of financial capital to small and medium sized commercial enterprises. The company is focused on providing financing for recapitalizations, buyouts, generational transitions, mergers and acquisitions and other growth capital needs.

Farmers National Banc Corp.
Amber Wallace, 330-720-6441
Senior Vice President, Marketing
awallace@farmersbankgroup.com

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