First Farmers & Merchants Corp. · OTC:FFMH
First Farmers & Merchants — Shareholder Meeting (2022)
33 slides from First Farmers & Merchants's shareholder meeting presentation, Jun 20, 2022
Slide 1: 2022 Annual Meeting
—===__ FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST 2022 Annual Meeting
Slide 2: Record Total Assets, Deposits, Trust Assets
Record Total Assets Record Deposits Record Trust Assets nd 2 Highest Earning Level
Slide 3: FDIC Data comparison
.1% .1% INSERT GRAPHIC 1.9% 3.4% 1.1% 6.2% .3% FDIC Data: 06/19 – 06/21
Slide 4: Stock Valuation
Stock Valuation $48.75 14.7% $42.50 December 2020 December 2021 Independent FMV Appraisal
Slide 5: Key Performance Drivers
Key Performance Drivers ➢Soft Loan Growth ➢Balance Sheet Expansion ➢Sustained Margin Pressure ➢Non-Interest Income ➢Asset Quality ➢Efficiency
Slide 6: Gross Loans
Gross Loans Excluding Paycheck Protection Program (PPP) (in millions) $900 $897 $889 $873 $860 12/31/20 3/31/21 6/30/21 9/30/21 12/31/21
Slide 7: SBA Paycheck Protection Program
SBA Paycheck Protection Program Number of Loans - 1,539 Aggregate Amount of Loans - $116,000,000 Average Loan Size - $75,000
Slide 8: Total Deposits
Total Deposits (in billions) $1.8 11.4% $1.6 2020 2021
Slide 9: Interest Rate Environment
Interest Rate Environment US Treasury and Fed Funds Rate History 20.00 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 - 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 20
Slide 10: Non-Interest Income
Non-Interest Income $16.8 (in millions) 16.2% $14.4 2020 2021
Slide 11: Trust Services Revenue
Trust Services Revenue (in millions) $4.0 11% $3.6 2020 2021
Slide 12: Trust Assets
Trust Assets (in billions) $6.3 6.8% $5.9 2020 2021
Slide 13: Mortgage Banking Revenue
Mortgage Banking Revenue (in millions) $1.44 5.9% $1.36 2020 2021
Slide 14: Deposit Service Charges
Deposit Service Charges $7.1 (in millions) $7.1 $6.6 2019 2020 2021
Slide 15: Past-Due and Non-Accruing Loans
Past-Due and Non-Accruing Loans (as % of total loans) .69% .18% .17% 2020 2021 Peer* * UBPR Peer Group (12/31/21)
Slide 16: Efficiency Ratio
Efficiency Ratio 69.8% 68.9% 2020 2021
Slide 17: Our Vision
Our Vision is to be the financial partner Middle Tennesseans value and trust.
Slide 18: First Farmers Mission
First Farmers Mission is to enrich the lives of our team members, customers, and communities.
Slide 19: Senior Leadership Team
Senior Leadership Team Felicia Brown Andy Davis Craig Holland Bobby Krimmel Rory Mallard Chief Marketing Officer Chief Credit Officer Chief Operations Officer Chief Financial Officer Chief Commercial Banking Officer Dawn Moore Stacey Shedd Sam Wantland Brian Williams Chief Wealth Management Officer
Slide 20: Board of Directors 2022
Board of Directors 2022 Jeffrey L. Aiken Jonathan M. Edwards E. Marlee Mitchell Jeffrey L. Pannell Richard C. Perko H. Alan Watson Brian K. Williams Gina B. Wolfe
Slide 21: 2021 Financial Report
—===__ FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST 2021 FINANCIAL REPORT
Slide 22: Financial Highlights
Financial Highlights (dollars in thousands, except per 2021 2020 % Change share data) Net interest income $45,156 $43,529 +3.7% Net income $15,619 $14,194 +10.0% Total administrated trust assets $6,339,003 $5,932,799 +6.8% Total assets $1,972,738 $1,802,145 +9.5% Total deposits $1,791,206 $1,608,174
Slide 23: Revenue Growth
Revenue Growth (dollars in millions) $45.2 $42.5 $43.5 $41.7 $39.2 $16.1 $15.6 $14.2 $14.2 $10.4 2017 2018 2019 2020 2021 Net income Net interest income
Slide 24: Trust Assets
Trust Assets (dollars in billions) $6.3 $5.9 $5.4 $4.9 $5.0 $4.7 $3.0 $1.8 $1.6 $1.4 $1.2 $1.2 $1.0 2017 2018 2019 2020 2021 Administered Managed
Slide 25: Balance Sheet Momentum
Balance Sheet Momentum (dollars in thousands) 2021 2020 Variance Total assets $1,972,738 $1,802,145 +$170,593 Total loans, net of deferred fees $886,891 $964,695 -$77,804 Total deposits $1,791,206 $1,608,174 +$183,032 Securities available for sale $876,987 $594,649 +$282,338 Total shareholders’ equi
Slide 26: Liquidity
Liquidity 47% 40% 41% 35% 31% 15% 15% 15% 15% 15% 4Q20 1Q21 2Q20 3Q20 4Q20 Liquidity - Target Liquidity
Slide 27: Capacity for Loan Growth
Capacity for Loan Growth 75% 75% 75% 75% 75% 60% 54% 54% 52% 50% 4Q20 1Q21 2Q20 3Q20 4Q21 Loans to Deposits - Target Loans to Deposits
Slide 28: Asset Quality
Asset Quality (dollars in thousands) 2021 2020 Variance Total nonperforming assets $1,217 $1,560 -$343 Nonperforming assets to total 0.06% 0.09% -0.03% assets Other real estate owned $0 $0 $0 Net charge-offs (recoveries) $40 $(55) +$105
Slide 29: Non-Performing Assets Trend
Non-Performing Assets Trend 0.74% 0.49% 0.47% 0.26% 0.18% 0.20% 0.12% 0.12% 0.09% 0.06% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Non-Performing Assets to Total Assets
Slide 30: Stock Repurchases
Stock Repurchases 71,576 48,448 42,408 42,432 20,133 2017 2018 2019 2020 2021 Stock Repurchases
Slide 31: Bank Level Regulatory Capital Ratios
Bank Level Regulatory Capital Ratios 15.2% 14.3% 10.5% 8.5% 8.0% 7.0% Tier 1 Leverage Tier 1 Capital Total Risk-Based Capital Capital Policy Guideline December 31, 2021 - Capital Levels
Slide 32: Solid History of Growth
Solid History of Growth $3.62 $3.59 $3.17 $3.25 $2.29 $0.78 $0.81 $0.84 $0.84 $0.84 2017 2018 2019 2020 2021 Earings Per Share Cash Dividends
Slide 33: Thank you, Shareholders
—=—=>==__ FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST Thank you, Shareholders
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