First Farmers & Merchants Corp. · OTC:FFMH
First Farmers & Merchants — Shareholder Meeting (April 2018)
40 slides from First Farmers & Merchants's shareholder meeting presentation, Apr 17, 2018
Slide 1: 2018 Annual Shareholder Meeting
2018 ANNUAL SHAREHOLDER MEETING April 17, 2018
Slide 2: Total Assets Growth from Acquisitions and De Novo Branching Since 1965
Total Assets Growth from Acquisitions and De Novo Branching Since 1965 (in millions) $356 26% $595 2002-Present 43% $133 $292 1991-2001 1965-1990 21% Prior to 1965 10%
Slide 3: Total Assets from Acquisitions and De Novo Branching Since 1965
Total Assets from Acquisitions and De Novo Branching Since 1965 (in millions) $1,376 $1,020 $728 $595
Slide 4: Total Loans
Total Loans (in millions) $343 $511 40% 60% 2002-Present Prior to 2002
Slide 5: 2018 Director Retirement
———— FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST 2018 DIRECTOR RETIREMENT
Slide 6: Patrick J. Riley
Patrick J. Riley
Slide 7: 2017 Accomplishments
———— FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST 2017 ACCOMPLISHMENTS
Slide 8: Adjusted Net Income
Adjusted Net Income (in millions) $11.4 13% $10.0 2016 2017
Slide 9: Adjusted EPS
Adjusted EPS $2.51 16% $2.16 2016 2017
Slide 10: Non-Interest Income
Non-Interest Income (in millions) $12.2 7% $11.5 2016 2017
Slide 11: Trust Services Income
Trust Services Income (in millions) $3.1 17% $2.6 2016 2017
Slide 12: Trust and Wealth Management Total Assets = $4.7 billion
Trust and Wealth Management Total Assets = $4.7 billion
Slide 13: Non-Interest Income
Non-Interest Income Misc. Trust Mortgage Other Fee Based Services Investment
Slide 14: Net Interest Income
Net Interest Income (in millions) $39.2 6% $37.0 2016 2017
Slide 15: Non-Performing Assets
Non-Performing Assets 0.26% 20% 0.20% 2016 2017
Slide 16: 2017 New Offices
———— FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST 2017 NEW OFFICES
Slide 17: Downtown Franklin
Downtown Franklin
Slide 18: Brentwood
Brentwood VAR WM
Slide 19: Office Locations by County
DICKSON DAVIDSON e WILLIAMSON HICKMAN MARSHALL LAWRENCE
Slide 20: Online Banking
——== FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST | Help | Sign OFF FIRST FARMERS. Online Banking Card ON/OFF Depost $18,622.
Slide 21: Slide 21
Slide 22: First Farmers and Merchants Corporation Stock Value
First Farmers and Merchants Corporation Stock Value $41.50 9% $38.00 2016 2017
Slide 23: First Farmers and Merchants Corporation Stock Value
First Farmers and Merchants Corporation Stock Value 65% 9% 1 year 3 year
Slide 24: Quarterly Cash Dividend of $0.20
Quarterly Cash Dividend of $0.20 ↑ 5% from 2016
Slide 25: 2017 Total Shareholder Return
2017 Total Shareholder Return 11%
Slide 26: Our Focus
Our Focus ● Customers ● Shareholders ● Communities ● Bank Team
Slide 27: Mt. Pleasant - Circa 1910 Brentwood - 2017
Mt. Pleasant - Circa 1910 Brentwood - 2017
Slide 28: Financial Report
———— FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST FINANCIAL REPORT
Slide 29: Summary Performance
Summary Performance (dollars in thousands) 2016 2017 Variance Net income $10,310 $10,362 +$52 Net income, excluding one-time $10,026 $11,378 +$1,352 items, net of tax Earnings per share $2.22 $2.29 +$0.07 Return on assets 0.79% 0.76% -0.03% Return on equity 8.42% 8.44% +0.02% Stock valuation $38.00
Slide 30: Total Assets Breakdown
Total Assets Breakdown As of December 31, 2016 As of December 31, 2017 Cash 2% Cash 4% Other 6% Other 6% Securities 31% Securities 28% Loans, net Loans, net 61% 62% Total Assets - $1.4 billion Growth from 2016 - $38 million or 3%
Slide 31: Loan Portfolio Breakdown
Loan Portfolio Breakdown As of December 31, 2016 As of December 31, 2017 Commercial Nonresidential Nonresidential and Industrial Real Estate 19% Commercial and Real Estate 22% 14% Industrial 17% Construction and Construction Other Development and 19% 10% Development Other 7% 20% Single Family Reside
Slide 32: Asset Quality
Asset Quality Nonperforming Assets $2.8 million as of December 31, 2017 0.26% 0.24% 0.22% 0.21% 0.20% 4Q16 1Q17 2Q17 3Q17 4Q17 Nonperforming assets to total assets
Slide 33: Deposit Mix
Deposit Mix As of December 31, 2016 As of December 31, 2017 Interest Bearing Demand Interest Bearing Demand Time Deposits 34% Time Deposits 17% 16% 36% Savings and Money Savings and Markets Money Markets Noninterest Bearing 27% Noninterest Bearing 25% Demand 22% Demand 23% Total deposits - $1.2 bill
Slide 34: 2017 Non-Interest Income Growth by Business Line
2017 Non-Interest Income Growth by Business Line $449 (dollars in thousands) $134 $111 $56 Trust Services Investment Services Mortgage Banking Other Activities Total Non-Interest Income Growth - $750 thousand or 7% from 2016
Slide 35: Capacity for Growth
Capacity for Growth 75% 75% 75% 75% 75% 72% 73% 71% 71% 69% 4Q16 1Q17 2Q17 3Q17 4Q17 Loans to deposits Loans to deposits - target
Slide 36: Tier 1 Leverage Capital Ratio
Tier 1 Leverage Capital Ratio 8.4% 8.4% 8.3% 8.6% 8.6% 5.0% 5.0% 5.0% 5.0% 5.0% 4Q16 1Q17 2Q17 3Q17 4Q17 Minimum to be well capitalized Tier one leverage
Slide 37: Total Risk-Based Capital Ratio
Total Risk-Based Capital Ratio 13.5% 13.4% 13.6% 14.0% 13.8% 10.0% 10.0% 10.0% 10.0% 10.0% 4Q16 1Q17 2Q17 3Q17 4Q17 Minimum to be well capitalized Total risk-based
Slide 38: Election of Directors
———— FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST ELECTION OF DIRECTORS
Slide 39: Board of Directors
BOARD OF DIRECTORS Jeffrey L. Aiken Jonathan M. Edwards Thomas Napier Gordon Dalton M. Mounger Timothy E. Pettus Matthew M. Scoggins, Jr. T. Randy Stevens H. Alan Watson Brian K. Williams
Slide 40: FIRST FARMERS.
—=>==__ FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST
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