First Farmers & Merchants Corp. · OTC:FFMH

First Farmers & Merchants — Shareholder Meeting (April 2023)

26 slides from First Farmers & Merchants's shareholder meeting presentation, Apr 18, 2023

  1. Slide 1: 2023 Annual Meeting of Shareholders

    First Farmers & Merchants Corporation 2023 Annual Meeting of Shareholders April 18, 2023

  2. Slide 2: Election of Directors; Ratification of Accounting Firm

     Election of Directors  Ratification of Selection of Independent Registered Public Accounting Firm

  3. Slide 3: Board of Directors

    Board of Directors Jeffrey L. Aiken Jonathan M. Edwards Dr. Christa S. Martin W. Eric Mayberry E. Marlee Mitchell Deputy Commissioner for the Tennessee President and CEO Assistant to the President President Partner Department of Agriculture Edwards Oil Company Access and Diversity Tennessee Farm Bur

  4. Slide 4: 2022 Performance Highlights

    2022 Performance Highlights Net Income Earnings Per Share $18.1 million $4.19

  5. Slide 5: 2022 Performance Highlights: Adjusted Net Income

    2022 Performance Highlights Adjusted Net Income $18.1 million 25.5%

  6. Slide 6: 2022 Performance Highlights: Net Loans and Expense

    2022 Performance Highlights Net Loans 9.1% Non Interest Expense 6.5% Efficiency Ratio 63.04%

  7. Slide 7: Book Value per Share

    Book Value per Share $36.72 $22.59 2021 2022

  8. Slide 8: Cash Dividend

    2022 Performance Highlights Cash Dividend 9.5%

  9. Slide 9: Independent Stock Valuation (1 year)

    Independent Stock Valuation (1 year) $49.00 $48.75 2021 2022

  10. Slide 10: Independent Stock Valuation (5 years)

    Independent Stock Valuation (5 years) $49.00 $41.50 2017 2022

  11. Slide 11: 2022 Financial Report

    —====__ FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST 2022 FINANCIAL REPORT

  12. Slide 12: Financial Highlights

    Financial Highlights (dollars in thousands, except per 2022 2021 % Change share data) Net interest income $47,984 $45,156 +6.3% Non-interest income $14,147 $16,783 -15.7% Non-interest expense $40,168 $42,966 -6.5% Net income $18,050 $15,619 +15.6% Total loans, net of deferred fees $956,785 $877,286

  13. Slide 13: Efficiency

    Efficiency 69.75% 68.90% 68.02% 68.73% 63.04% 50.00% 2018 2019 2020 2021 2022 Efficiency

  14. Slide 14: Liquidity to Assets

    Liquidity to Assets 57% 47% 45% 43% 39% 34% 21% 21% 10% 12% 9% 10% 10% 10% 10% 2018 2019 2020 2021 2022 Liquidity Excess Liquidity Liquidity - Target

  15. Slide 15: Total Securities

    Total Securities (dollars in thousands) $894,596 $828,183 $614,150 $350,881 $347,402 2018 2019 2020 2021 2022 Total Securities - Average Duration 4.9 years

  16. Slide 16: Capacity for Loan Growth

    Capacity for Loan Growth 75% 75% 75% 75% 75% 50% 50% 52% 54% 45% 4Q21 1Q22 2Q22 3Q22 4Q22 Loans to Deposits - Target Loans to Deposits

  17. Slide 17: Asset Quality

    Asset Quality (dollars in thousands) 2022 2021 Variance Total nonperforming assets $705 $1,217 -$512 Nonperforming assets to total 0.04% 0.06% -0.02% assets Other real estate owned $0 $0 $0 Net charge-offs (recoveries) $(97) $40 -$137

  18. Slide 18: Cash Dividends

    Cash Dividends $0.86 $0.84 $0.84 $0.84 $0.81 2018 2019 2020 2021 2022 Annual Cash Dividend - 4Q22 up 9.5%, Annually

  19. Slide 19: Stock Repurchases

    Stock Repurchases 71,576 42,408 42,432 41,978 20,133 2018 2019 2020 2021 2022 Stock Repurchases - $8.8 million since 2018

  20. Slide 20: Bank Level Regulatory Capital Ratios

    Bank Level Regulatory Capital Ratios 14.6% 15.4% 10.5% 8.1% 8.5% 7.0% Tier 1 Leverage Tier 1 Capital Total Risk-Based Capital Minimum Regulatory Capital First Farmers Capital

  21. Slide 21: Steady Long-term Growth

    Steady Long-term Growth (dollars in millions) $48.0 $43.5 $45.2 $41.7 $42.5 $16.1 $18.1 $14.2 $14.2 $15.6 2018 2019 2020 2021 2022 Net income Net interest income

  22. Slide 22: Dedicated to Community Service

    Dedicated to Community Service

  23. Slide 23: Community service: local organizations, hours, contributions

    Partnered alongside 95 local organizations Donated almost 1,200 hours to community service Contributed more than $260,000 into our communities

  24. Slide 24: FDIC Insured Deposits 85%

    FDIC Insured Deposits 85% 12/31/2022 60% Industry Average 60% 10% 6% SVB Signature Bank First Farmers

  25. Slide 25: First Farmers

    —= FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST

  26. Slide 26: First Farmers

    —=—===~_ FIRST FARMERS. BANKING | WEALTH MANAGEMENT | TRUST

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