Farmers Bank Content

22014 Annual Report | www.fbsc.com
A charter was granted in
the name of The Farmers
Bank and Trust Company
on August 6, 1904, by the
Superintendent of Banks of
the State of Ohio. The Bank
was organized on Court
Street and it was opened
to the public for business
on December 4, 1904. In
1921 the name “Trust”
was replaced by the word
“Savings” in the name of
the Bank. The Bank had
steady growth from the beginning and reached the first million
in deposits in 1943.
In 1963, plans were made for the construction of a new facility.
In 1965 the property between Second Street to Main Street was
purchased and seven buildings were torn down; in 1967, plans
for the new facility were approved and in 1968 construction
began on what was to become the future “home” of the
Farmers Bank. The location of the Bank remained on Court
Street until it moved to its present location at 211 West Second
Street, Pomeroy, Ohio, on April 1, 1969.
On August 30, 1985, a one-bank holding company was formed
known as Farmers Bancshares, Inc.
In May, 1987, the Farmers Bank acquired, through purchase, the
Tuppers Plains Branch of BankOne. This purchase represented
the first branch of the Farmers Bank and enabled us to better
serve the needs of Meigs County. In 1995, the Farmers Bank
purchased a lot on Upper River Road in Gallipolis, built an office
and began serving Gallia County.
On March 25, 2003, the Mason, West Virginia, branch was
opened, which was the first branch of the West Virginia
Division. On May 11, 2006, the Point Pleasant Branch was
opened for business, which, to date, completes the West
Virginia Division of Farmers Bank.
In October of 2011, Farmers Bank started building its newest
addition at 640 East Main Street in Pomeroy. On July 16th,
2012, the two-story building opened for business. The 211
West Second Street location, which previously housed the
Pomeroy retail business, was renovated and now houses the
Operations Support Center.
During the history of the Bank, it has had five presidents,
namely: W. F. Reed, founder; Theodore T. Reed, his son;
Theodore T. Reed, Jr., his grandson; Paul E. Kloes, interim
president at the death of Theodore T. Reed, Jr.; and Paul M.
Reed, the great grandson of the founder.
Farmers Bank has become the oldest independently owned
financial institution in Meigs County since opening its
doors 110 years ago. To date, the Bank has a total of 85
employees at six locations and currently has 28 surcharge free
ATMs (including Hocking Valley ATMs) to serve the Bank’s
customers. We are excited about the future of the Bank and
the service it provides to the community – not only bank-
related services but community service through our employees
and volunteers.
History
On August 30, 1985, a one-bank holding company
was formed known as Farmers Bancshares, Inc.
110
Years
Celebrating

3 2014 Annual Report | www.fbsc.com
We’ve all heard that numbers speak for themselves and, if you’re a numbers person, you may
enjoy what they say; if not, join me in being thankful that the numbers tell only part of the bank’s
success story for 2014. There is much more to our corporation than just “the numbers”.
Members of Congress, regulators, and banking professionals
struggle with defining what it takes to be considered a true
community bank. Some argue that any bank with assets
less than $10 billion automatically makes it a community
bank, but such a narrow interpretation falls short of a true
community bank. It seems more logical that a community
bank’s contribution to its community – what it gives back
to its market as opposed to what it takes from it – is a far
more accurate standard. Using that standard, we consider
ourselves a great community bank.
Our commitment to our communities is evident in our
actions. Monetary donations are an important part of our
support for our communities and are the most obvious to
the public. Youth sports and activities come to mind, but
you may be surprised to learn that we are just as committed
– monetarily and otherwise – to promoting education and
financial awareness with the youth of our community. We
believe these are among our most important efforts to
improve and give back to our area.
Our ability to support our community is a product of
our financial strength as a company. The post-recession
banking environment continues to present unprecedented
challenges. We are simultaneously navigating the challenges
of an extended period of record low interest rates and
a regulatory burden that has traded our “small town”
competitive advantage in favor of a “one size fits all”
philosophy. Net Income may be the easiest performance
indicator to understand but it is only a one year indication
of profitability and does not measure long term success.
Like many banks, we have been focused on improving our
balance sheet strength by reducing non-performing loans
and problem assets along with growing our capital base.
The evaluation of our share price rewarded these efforts
and recognized that despite 2014’s net income total our long
term earnings outlook is improving. We are pleased to report
the market value of your stock in Farmers Bancshares Inc.
has increased over last year’s share price.
COMMUNITY BANKING FINANCIAL PERFORMANCE
Message from
the President

Occasionally my job gives me the opportunity to travel to
conferences where other CEOs discuss their strategies and
future plans, and I’m surprised sometimes by how pessimistic
my colleagues can be. Many have surveyed the economy and
the regulatory burden and have decided to give up, to sell or to
merge; they have decided that somebody else can do it better.
I can’t imagine reaching that conclusion.
The one thing about banking that has stayed consistent during
my career is the fact that successful banks are built on people
motivated by excellence. I’m blessed to be surrounded by a
talented management team that has led the bank through the
most troubled economy of our lifetime, dealt with relentless
regulatory oversight and produced record results. That is and has
always been the Farmers Bank’s number one reason for its strong
performance. The continued success of the bank depends on our
Board of Directors, the management team, and our employees.
With that in mind I look to our future with confidence.
THE FUTURE
We are pleased to
report the market value
of your stock in Farmers
Bancshares Inc. has
increased over last
year’s share price.

Community Involvement
Investing in our community is our way of giving back to
those who have helped support us for so long. Volunteer
groups and non-profit organizations do so much to help our
communities, but they can’t do it alone. That is why we
support various causes and organizations where we live and
work. Giving back today ensures the success of tomorrow
and generations to come.
Farmers Bank has continued to empower economic
awareness and education to our community since the time
we opened our doors in 1904. In 2014, we provided financial
education programs to local high schools, created an actual
business environment for our Junior Board of Directors,
supported our local Sheriff’s Department, hosted and
participated in numerous local events, supported all local
county fairs and much more.
Farmers Bank doesn’t just offer donations; our employees
put forward a big helping hand by volunteering their time
and services. Last year, our employees logged over 1,000
hours of community service by serving on boards, working
in schools and supporting local non-profit organizations in
a wide variety of ways. They share their personal time to
maximize awareness and emphasize Farmers Bank’s impact
on the community. Each of these opportunities leads to
community roots that run deep for Farmers Bank.
Give
Back
For more than 110 years,
we have believed that a
great bank gives back!
Over the course of two short months,
three Farmers Bank employees led
the kIDs Safe Fundraising Campaign
that raised $10,000 for the Meigs
County Sheriff’s Office. With the
dedication of their coworkers and
joined by area businesses, Lori Miller,
and her husband Shannon, Tina
Wood Richards, and Brian Howard
were able to assist the Sheriff’s
Office in purchasing Identity Safe
equipment which will help identify a
child in the event of an emergency.
This program is widely recognized,
and participated in by surrounding
law enforcement agencies.
On December 11th, Lori and Tina
presented Sheriff Keith Wood with
a check for the full amount needed.
On behalf of the Sheriff’s Office,
he awarded Lori and Shannon
Miller, and Tina Wood Richards the
Buckeye State Sheriff’s Association
certificates of appreciation for their
dedicated efforts.
kIDs Program

Point Pleasant River Museum – Dragon Boat Festival
Farmers Bank had a great time participating in this year’s Dragon Boat
Festival in Point Pleasant, WV. The festival helps raise money for the
Point Pleasant River Museum.
Eastern Lady Eagles
The Eastern Lady Eagles made our community very proud by becoming
the 2014 Division IV state basketball champions! To recognize their
outstanding accomplishments, Farmers Bank donated championship
jackets and rings for the entire team. In addition to the jackets and
rings, Farmers Bank donated the championship banner to hang in the
school’s gymnasium. Congratulations, ladies!
Gallipolis in Lights
‘Tis the season! Farmers Bank helped spread the holiday cheer
by partnering with the Gallipolis in Lights group. With the help of
local businesses and residents, this committee made the City Park
absolutely beautiful with lights and decorations!
The Hoop Project
Farmers Bank made a major slam dunk by sponsoring a court for The
Hoop Project this past summer! The Hoop Project is southern Ohio’s
premier 3-on-3 Full Court outdoor basketball tournament along the
streets of downtown Gallipolis, Ohio.
Taste of Home Cooking School
Farmers Bank isn’t just known for great banking! We are also known
for our skills in the kitchen. Our staff helped make this year’s Taste of
Home Cooking School one of the best yet! The Taste of Home Cooking
School is America’s #1 leading cooking school program. Just call us
Chef BoyarFBSC!
Junior Board
Last year’s class of our Junior Board of Directors visited the State
House and met with Ohio Senator, Lou Gentile (pictured here),
Representative Debbie Phillips, and other government officials.

Where
We’ve Been
The Farmers Bank coin bag has become quite a popular item throughout our community…
actually the world! The coin bag started out as an accessory to keep your spare change and has
evolved into much more; it is now a “must have” for any vacation or memorable moment. From
sporting events to county fairs, from scuba diving to parasailing, from local hikes to international
travels…our friends and neighbors never leave home without it. Be on the lookout, we never
know where the Farmers Bank coin bag will show up next!

Social Media
Success
The surge in technology over the past decades has caused a
noticeable shift in the banking industry. From social media to
online transactions, our customers and their behaviors have
been transitioning to a mobile environment. Your bank noticed
this trend early and has quickly become a frontrunner in social
media. We are able to effectively reach our customers and
employees in a manner that has positioned Farmers Bank as a
key leader in the “Mobile Move”. From banking conferences
to comments by other bankers, Farmers Bank is known for
its superior presence on social media. Your bank is where our
customers need us to be! Always have been. Always will be.
Consider this: The Millennial customer will spend an average
of 128 minutes per day on a smartphone. Between 2013 and
2014, this generation became the majority of the United States
Labor Force and will continue to grow. These statistics shared
by David L. Peterson at the 2015 American Bankers Association
National Conference for Community Bankers, illustrate your
bank’s dedication to the “Mobile Move”. Mr. Peterson shared
additional statistics such as:
■ 79% of smartphone owners shop on their mobile device.
■ 32 hours are spent browsing the web weekly.
■ 23 hours are spent on social networking weekly.
(3.29 hours per day)
■ Mobile banking adoption increased by 40% in 2013 and is
projected to keep increasing over the next several years.
myfarmersbank
+Fbscmyfarmersbank
@myfarmersbank
myfarmersbank

Farmers Bancshares, Inc.
President Paul M. Reed
Vice President Paul E. Kloes
Vice President/Financial Officer Shawn W. Arnott
Treasurer Jaynee R. Davis
Secretary Erin L. Krawsczyn
Farmers Bank & Savings Co.
President Paul M. Reed
Executive Vice President Shawn W. Arnott
Executive Vice President Mark R. Groves
Executive Vice President Michael R. Lieving
Senior Vice President Edgar S. Lanham, II
Senior Vice President Donna J. Schmoll
Vice President Diane Craddock
Vice President Heather L. MacKnight
Vice President Leigh Ann Shepard
Vice President Jessica L. Staley
Vice President Edna M. Weber
Assistant Vice President Jaynee R. Davis
Assistant Vice President Randall C. Hays
Assistant Vice President Erin L. Krawsczyn
Officers
Farmers Bank & Savings Co.
and Farmers Bancshares, Inc.
Paul E. Kloes, Chairman
Thomas W. Karr
Douglas W. Little
John F. Musser
Paul M. Reed
Theodore T. Reed, III
Jared A. Sheets
David L. Weber
Board of Directors
EVP Woody Stines retired at the end of 2014. We wish him
the best of luck and thank him for making us a better bank.

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