Core Viewpoint - Farmers National Banc Corp. (FMNB) demonstrates exceptional capital efficiency with a Return on Invested Capital (ROIC) of 46.24% and a Weighted Average Cost of Capital (WACC) of 13.91%, resulting in a ROIC to WACC ratio of 3.32, significantly outperforming its peers [2][5]. Group 1: Company Overview - Farmers National Banc Corp. operates primarily in Ohio, providing a range of banking services including personal and business banking, wealth management, and mortgage services [1]. - The company competes with regional banks such as First Mid Bancshares, Inc. (FMBH) and The First Bancshares, Inc. (FBMS) [1]. Group 2: Financial Performance - FMNB's ROIC of 46.24% indicates high capital efficiency, significantly above its WACC of 13.91% [2][5]. - In comparison, First Mid Bancshares, Inc. (FMBH) has a ROIC of 4.05% and a WACC of 11.44%, leading to a ROIC to WACC ratio of 0.35, indicating lower capital efficiency [3]. - The First Bancshares, Inc. (FBMS) shows a ROIC of 2.66% and a WACC of 13.74%, resulting in a ROIC to WACC ratio of 0.19, further highlighting FMNB's superior performance [3]. - First Business Financial Services, Inc. (FBIZ) has a ROIC of 7.32% and a WACC of 15.71%, yielding a ROIC to WACC ratio of 0.47, which, while the highest among its peers, still falls short of FMNB's performance [4]. - Civista Bancshares, Inc. (CIVB) and Financial Institutions, Inc. (FISI) exhibit lower ratios, with CIVB at 0.39 and FISI at -0.12, emphasizing FMNB's capital efficiency advantage [4].

Core Concept - The weighted average cost of capital (WACC) calculates a company's cost of capital [1] - WACC proportionately weighs a company's use of debt and equity financing [1]