MATTOON, Ill., April 24, 2024 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ:FMBH) (the "Company") today announced its financial results for the quarter ended March 31, 2024.
Highlights
- Net income of $20.5 million, or $0.86 diluted EPS
- Adjusted net income (non-GAAP) of $22.3 million, or $0.93 diluted EPS
- Strong asset quality performance with minimal net charge offs and lower classifieds
- Insurance revenues drive record high quarter of noninterest income
- Named Top Workplace by USA Today
- Board of Directors declares regular quarterly dividend of $0.23 per share
"Coming off an eventful year for our industry, I am pleased with the way we started 2024," said Joe Dively, Chairman and Chief Executive Officer. "The benefits of adding Blackhawk are shining through with a stable core margin, significant liquidity, and continued asset quality strength. Our revenue diversification continues to be a differentiator for us as we achieved a new record high in noninterest income on the growth and seasonality in insurance revenues. Finally, I am extremely proud of the national recognition to be named a top workplace by USA Today. We understand and foster an environment where we prioritize a culture of engagement where our employees feel valued, empowered, and connected to a broader mission of serving our customers and communities."
Net Interest Income
Net interest income for the first quarter of 2024 decreased by $2.0 million, or 3.5% compared to the fourth quarter of 2023. The decline was primarily the result of lower loan balances and less accretion income. Interest income declined by $2.3 million in the quarter, which included a decline of $0.9 million in accretion income. Accretion income in the period totaled $3.6 million. Interest expense declined $0.3 million in the quarter primarily driven by less FHLB borrowings outstanding on an increase in overall liquidity position.
In comparison to the first quarter of 2023, net interest income increased $12.3 million, or 28.4%. The increase was primarily driven by the addition of Blackhawk. For the same period, interest income increased by $24.0 million, while interest expense increased $11.7 million.
Net Interest Margin
Net interest margin, on a tax equivalent basis (non-GAAP), was 3.25% for the first quarter of 2024. While this was an 8 basis point decline compared to the prior quarter, the margin only declined by 2 basis points when the decline of $0.9 million in accretion income is considered. Earning asset yields declined by 2 basis points and the average cost of funds increased 6 basis points.
In comparison to the first quarter of last year, the net interest margin increased 31 basis points, with an average earning asset increase of 84 basis points versus the average cost of funds increase of 53 basis points.
Loan Portfolio
Total loans ended the quarter at $5.50 billion, representing a decrease of $81.3 million from the prior quarter. The declines were spread across all categories, except for Ag operating loans which increased $16.9 million. The portfolio experienced larger than normal paydowns of lines in the C&I sector during the quarter. The loan portfolio continues to be well diversified both geographically and by industry. Non-medical office exposure is approximately 3.7% of the portfolio with minimal exposure to urban markets.
Asset Quality
The first quarter was another strong period with respect to the Company's asset quality metrics. The allowance for credit losses ("ACL") ended the period at $67.9 million and the ACL to total loans ratio increased to 1.24%. In addition to the ACL, an unearned discount of $46.3 million remains at quarter end. Provision expense was recorded as a credit in the amount of $0.4 million with net charge offs of $0.4 million in the quarter. Also, at the end of the first quarter, the ratio of non-performing loans to total loans was 0.36%, and the ACL to non-performing loans was 338.6%. The ratio of nonperforming assets to total assets was 0.28% and nonperforming loans were $20.1 million at quarter end. Special mention loans declined $8.4 million in the quarter to $65.6 million and substandard loans increased $0.4 million to $29.3 million.
Deposits
Total deposits ended the quarter at $6.24 billion, which represented an increase of $119.3 million from the prior quarter. Noninterest bearing deposits increased by $50.0 million and interest-bearing demand deposits increased by $137.6 million in the period. Approximately $50.0 million of the total increase was short-term normal cash flow needs of certain customers that came in late in the quarter and was disbursed early in the second quarter. With the Company's strong liquidity position, it has been able to manage the pressure on the funding costs with a focus on relationship pricing and allowing other funding, such as brokered CDs, to roll off.
Noninterest Income
Noninterest income for the first quarter of 2024 was a record high of $24.5 million compared to $21.8 million in the fourth quarter of 2023. The increase was primarily driven by a new high in insurance revenues, which are also seasonally highest in the first quarter, with an increase of $3.8 million. Wealth management revenues increased $0.3 million and assets under management increased to $6.2 billion. Mortgage banking and all other banking fees declined in the quarter.
In comparison to the first quarter of 2023, noninterest income increased $2.0 million, or 8.9%, due to a combination of organic growth and the addition of Blackhawk. Insurance revenues increased by $0.7 million, or 8.7% compared to the first quarter of 2024.
Noninterest Expenses
Noninterest expense for the first quarter of 2024 totaled $53.4 million compared to $57.0 million in the prior quarter. The current quarter included $2.3 million of nonrecurring integration related costs, which was a decrease of $3.3 million from the prior quarter. In addition, the Company recorded a credit for $0.9 million in debit card fees for a negotiated agreement with its primary provider.
In comparison to the first quarter of 2023, noninterest expenses increased $11.8 million. The increase was primarily driven by the addition of Blackhawk. Nonrecurring costs were $2.3 million in the current quarter and $0.2 million in the same quarter last year.
The Company's efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the first quarter 2024 was 59.1% compared to 58.9% in the prior quarter and 59.0% for the same period last year.
Capital Levels and Dividend
The Company's capital levels remained strong and above the "well capitalized" levels. Capital levels ended the period as follows:
| Total capital to risk-weighted assets | 15.35% | |
| Tier 1 capital to risk-weighted assets | 12.46% | |
| Common equity tier 1 capital to risk-weighted assets | 12.06% | |
| Leverage ratio | 9.71% |
Tangible book value per common share increased in the period to $22.49 with earnings growth more than offsetting a negative $11.2 million impact to accumulated other comprehensive income ("AOCI") from an increase in the unrealized loss position in the bond portfolio.
The Company's Board of Directors approved a regular quarterly dividend of $0.23 payable on May 31, 2024, for shareholders of record on May 15, 2024.
About First Mid: First Mid Bancshares, Inc. ("First Mid") is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., and First Mid Wealth Management Co. First Mid is a $7.7 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, Texas, and Wisconsin and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 159 years. More information about the Company is available on our website at www.firstmid.com.
Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles ("GAAP"), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include "Adjusted Net Income," "Adjusted Diluted EPS," "Efficiency Ratio," "Net Interest Margin, tax equivalent," and "Tangible Book Value per Common Share". While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.
Forward Looking Statements
This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid's pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid are identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid's loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines; and the impact of the global COVID-19 pandemic on First Mid's businesses. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid's financial results, are included in First Mid's filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.
Investor Contact:
Austin Frank
SVP, Shareholder Relations
217-258-5522
[email protected]
Matt Smith
Chief Financial Officer
217-258-1528
[email protected]
– Tables Follow –
| FIRST MID BANCSHARES, INC. | ||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||
| (In thousands, unaudited) | ||||||||||||
| As of | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 355,701 | $ | 143,064 | $ | 169,134 | ||||||
| Investment securities | 1,149,752 | 1,179,402 | 1,217,754 | |||||||||
| Loans (including loans held for sale) | 5,499,295 | 5,580,565 | 4,760,631 | |||||||||
| Less allowance for credit losses | (67,936 | ) | (68,675 | ) | (58,223 | ) | ||||||
| Net loans | 5,431,359 | 5,511,890 | 4,702,408 | |||||||||
| Premises and equipment, net | 101,666 | 101,396 | 90,178 | |||||||||
| Goodwill and intangibles, net | 260,699 | 264,231 | 168,373 | |||||||||
| Bank Owned Life Insurance | 167,247 | 166,125 | 151,366 | |||||||||
| Other assets | 211,822 | 220,686 | 183,637 | |||||||||
| Total assets | $ | 7,678,246 | $ | 7,586,794 | $ | 6,682,850 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest bearing | $ | 1,448,299 | $ | 1,398,234 | $ | 1,262,181 | ||||||
| Interest bearing | 4,794,637 | 4,725,425 | 3,768,597 | |||||||||
| Total deposits | 6,242,936 | 6,123,659 | 5,030,778 | |||||||||
| Repurchase agreements with customers | 210,719 | 213,721 | 228,664 | |||||||||
| Other borrowings | 238,761 | 263,787 | 595,021 | |||||||||
| Junior subordinated debentures | 24,113 | 24,058 | 19,406 | |||||||||
| Subordinated debt | 106,862 | 106,755 | 94,593 | |||||||||
| Other liabilities | 56,903 | 61,610 | 52,523 | |||||||||
| Total liabilities | 6,880,294 | 6,793,590 | 6,020,985 | |||||||||
| Total stockholders' equity | 797,952 | 793,204 | 661,865 | |||||||||
| Total liabilities and stockholders' equity | $ | 7,678,246 | $ | 7,586,794 | $ | 6,682,850 | ||||||
| FIRST MID BANCSHARES, INC. | ||||||||
| Condensed Consolidated Statements of Income | ||||||||
| (In thousands, except per share data, unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Interest income: | ||||||||
| Interest and fees on loans | $ | 77,823 | $ | 56,236 | ||||
| Interest on investment securities | 7,405 | 7,127 | ||||||
| Interest on federal funds sold & other deposits | 2,444 | 308 | ||||||
| Total interest income | 87,672 | 63,671 | ||||||
| Interest expense: | ||||||||
| Interest on deposits | 26,096 | 12,767 | ||||||
| Interest on securities sold under agreements to repurchase | 2,056 | 1,463 | ||||||
| Interest on other borrowings | 2,314 | 4,883 | ||||||
| Interest on jr. subordinated debentures | 542 | 379 | ||||||
| Interest on subordinated debt | 1,194 | 988 | ||||||
| Total interest expense | 32,202 | 20,480 | ||||||
| Net interest income | 55,470 | 43,191 | ||||||
| Provision for credit losses | (357 | ) | (817 | ) | ||||
| Net interest income after provision for loan | 55,827 | 44,008 | ||||||
| Non-interest income: | ||||||||
| Wealth management revenues | 5,322 | 5,514 | ||||||
| Insurance commissions | 9,213 | 8,480 | ||||||
| Service charges | 2,956 | 2,203 | ||||||
| Net securities gains/(losses) | 0 | (46 | ) | |||||
| Mortgage banking revenues | 706 | 150 | ||||||
| ATM/debit card revenue | 4,055 | 3,083 | ||||||
| Other | 2,226 | 3,095 | ||||||
| Total non-interest income | 24,478 | 22,479 | ||||||
| Non-interest expense: | ||||||||
| Salaries and employee benefits | 30,448 | 26,071 | ||||||
| Net occupancy and equipment expense | 7,560 | 6,005 | ||||||
| Net other real estate owned (income) expense | (21 | ) | 133 | |||||
| FDIC insurance | 869 | 463 | ||||||
| Amortization of intangible assets | 3,497 | 1,522 | ||||||
| Stationary and supplies | 391 | 292 | ||||||
| Legal and professional expense | 2,449 | 1,690 | ||||||
| ATM/debit card expense | 1,191 | 1,223 | ||||||
| Marketing and donations | 862 | 654 | ||||||
| Other | 6,116 | 3,524 | ||||||
| Total non-interest expense | 53,362 | 41,577 | ||||||
| Income before income taxes | 26,943 | 24,910 | ||||||
| Income taxes | 6,440 | 5,730 | ||||||
| Net income | $ | 20,503 | $ | 19,180 | ||||
| Per Share Information | ||||||||
| Basic earnings per common share | $ | 0.86 | $ | 0.94 | ||||
| Diluted earnings per common share | 0.86 | 0.93 | ||||||
| Weighted average shares outstanding | 23,872,731 | 20,492,254 | ||||||
| Diluted weighted average shares outstanding | 23,960,335 | 20,563,972 | ||||||
| FIRST MID BANCSHARES, INC. | ||||||||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||||||
| (In thousands, except per share data, unaudited) | ||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||
| Interest income: | ||||||||||||||||||
| Interest and fees on loans | $ | 77,823 | $ | 78,676 | $ | 69,143 | $ | 58,368 | $ | 56,236 | ||||||||
| Interest on investment securities | 7,405 | 8,515 | 9,284 | 7,193 | 7,127 | |||||||||||||
| Interest on federal funds sold & other deposits | 2,444 | 2,736 | 2,011 | 569 | 308 | |||||||||||||
| Total interest income | 87,672 | 89,927 | 80,438 | 66,130 | 63,671 | |||||||||||||
| Interest expense: | ||||||||||||||||||
| Interest on deposits | 26,096 | 25,900 | 22,047 | 16,580 | 12,767 | |||||||||||||
| Interest on securities sold under agreements to repurchase | 2,056 | 1,754 | 1,625 | 1,723 | 1,463 | |||||||||||||
| Interest on other borrowings | 2,314 | 3,073 | 4,749 | 4,084 | 4,883 | |||||||||||||
| Interest on jr. subordinated debentures | 542 | 545 | 545 | 390 | 379 | |||||||||||||
| Interest on subordinated debt | 1,194 | 1,193 | 1,029 | 986 | 988 | |||||||||||||
| Total interest expense | 32,202 | 32,465 | 29,995 | 23,763 | 20,480 | |||||||||||||
| Net interest income | 55,470 | 57,462 | 50,443 | 42,367 | 43,191 | |||||||||||||
| Provision for credit losses | (357 | ) | 552 | 5,911 | 458 | (817 | ) | |||||||||||
| Net interest income after provision for loan | 55,827 | 56,910 | 44,532 | 41,909 | 44,008 | |||||||||||||
| Non-interest income: | ||||||||||||||||||
| Wealth management revenues | 5,322 | 4,998 | 4,940 | 5,341 | 5,514 | |||||||||||||
| Insurance commissions | 9,213 | 5,398 | 5,199 | 5,737 | 8,480 | |||||||||||||
| Service charges | 2,956 | 3,298 | 2,994 | 2,386 | 2,203 | |||||||||||||
| Securities gains, net | 0 | 46 | 3,389 | (6 | ) | (46 | ) | |||||||||||
| Mortgage banking revenues | 706 | 954 | 846 | 332 | 150 | |||||||||||||
| ATM/debit card revenue | 4,055 | 4,233 | 3,766 | 3,265 | 3,083 | |||||||||||||
| Other | 2,226 | 2,841 | 1,919 | 2,431 | 3,095 | |||||||||||||
| Total non-interest income | 24,478 | 21,768 | 23,053 | 19,486 | 22,479 | |||||||||||||
| Non-interest expense: | ||||||||||||||||||
| Salaries and employee benefits | 30,448 | 29,925 | 25,422 | 23,544 | 26,071 | |||||||||||||
| Net occupancy and equipment expense | 7,560 | 7,977 | 6,929 | 6,035 | 6,005 | |||||||||||||
| Net other real estate owned (income) expense | (21 | ) | 800 | 902 | 27 | 133 | ||||||||||||
| FDIC insurance | 869 | 1,015 | 785 | 1,076 | 463 | |||||||||||||
| Amortization of intangible assets | 3,497 | 3,560 | 2,568 | 1,477 | 1,522 | |||||||||||||
| Stationary and supplies | 391 | 404 | 335 | 315 | 292 | |||||||||||||
| Legal and professional expense | 2,449 | 2,065 | 1,844 | 1,780 | 1,690 | |||||||||||||
| ATM/debit card expense | 1,191 | 1,332 | 1,751 | 1,016 | 1,223 | |||||||||||||
| Marketing and donations | 862 | 679 | 764 | 908 | 654 | |||||||||||||
| Other | 6,116 | 9,268 | 5,796 | 3,864 | 3,524 | |||||||||||||
| Total non-interest expense | 53,362 | 57,025 | 47,096 | 40,042 | 41,577 | |||||||||||||
| Income before income taxes | 26,943 | 21,653 | 20,489 | 21,353 | 24,910 | |||||||||||||
| Income taxes | 6,440 | 3,582 | 5,372 | 4,786 | 5,730 | |||||||||||||
| Net income | $ | 20,503 | $ | 18,071 | $ | 15,117 | $ | 16,567 | $ | 19,180 | ||||||||
| Per Share Information | ||||||||||||||||||
| Basic earnings per common share | $ | 0.86 | $ | 0.76 | $ | 0.68 | $ | 0.81 | $ | 0.94 | ||||||||
| Diluted earnings per common share | 0.86 | 0.76 | 0.68 | 0.80 | 0.93 | |||||||||||||
| Weighted average shares outstanding | 23,872,731 | 23,837,853 | 22,220,438 | 20,528,717 | 20,492,254 | |||||||||||||
| Diluted weighted average shares outstanding | 23,960,335 | 23,921,758 | 22,319,334 | 20,628,239 | 20,563,972 | |||||||||||||
| FIRST MID BANCSHARES, INC. | ||||||||||||||||||||
| Consolidated Financial Highlights and Ratios | ||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| As of and for the Quarter Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
| Loan Portfolio | ||||||||||||||||||||
| Construction and land development | $ | 186,851 | $ | 205,077 | $ | 189,206 | $ | 151,574 | $ | 159,157 | ||||||||||
| Farm real estate loans | 388,941 | 391,132 | 399,834 | 392,220 | 401,957 | |||||||||||||||
| 1-4 Family residential properties | 518,641 | 542,469 | 531,699 | 418,932 | 424,545 | |||||||||||||||
| Multifamily residential properties | 312,758 | 319,129 | 327,067 | 303,482 | 301,808 | |||||||||||||||
| Commercial real estate | 2,396,092 | 2,384,704 | 2,392,834 | 2,056,529 | 2,003,647 | |||||||||||||||
| Loans secured by real estate | 3,803,283 | 3,842,511 | 3,840,640 | 3,322,737 | 3,291,114 | |||||||||||||||
| Agricultural operating loans | 213,217 | 196,272 | 179,447 | 148,318 | 146,847 | |||||||||||||||
| Commercial and industrial loans | 1,227,906 | 1,266,159 | 1,242,653 | 1,094,522 | 1,078,021 | |||||||||||||||
| Consumer loans | 79,569 | 91,014 | 99,542 | 80,241 | 88,430 | |||||||||||||||
| All other loans | 175,320 | 184,609 | 177,783 | 167,598 | 156,219 | |||||||||||||||
| Total loans | 5,499,295 | 5,580,565 | 5,540,065 | 4,813,416 | 4,760,631 | |||||||||||||||
| Deposit Portfolio | ||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,448,299 | $ | 1,398,234 | $ | 1,389,022 | $ | 1,171,047 | $ | 1,262,181 | ||||||||||
| Interest bearing demand deposits | 1,974,857 | 1,837,296 | 1,940,162 | 1,477,765 | 1,419,791 | |||||||||||||||
| Savings deposits | 704,777 | 710,586 | 734,377 | 602,523 | 639,691 | |||||||||||||||
| Money Market | 1,107,177 | 1,129,950 | 1,161,957 | 923,259 | 878,452 | |||||||||||||||
| Time deposits | 1,007,826 | 1,047,593 | 1,120,806 | 1,044,991 | 830,663 | |||||||||||||||
| Total deposits | 6,242,936 | 6,123,659 | 6,346,324 | 5,219,585 | 5,030,778 | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Non-performing loans | $ | 20,064 | $ | 20,128 | $ | 21,269 | $ | 18,637 | $ | 15,163 | ||||||||||
| Non-performing assets | 21,471 | 21,292 | 23,565 | 22,615 | 19,225 | |||||||||||||||
| Net charge-offs (recoveries) | 381 | 118 | 181 | (38 | ) | 53 | ||||||||||||||
| Allowance for credit losses to non-performing loans | 338.60 | % | 341.19 | % | 320.85 | % | 315.07 | % | 383.98 | % | ||||||||||
| Allowance for credit losses to total loans outstanding | 1.24 | % | 1.23 | % | 1.23 | % | 1.22 | % | 1.22 | % | ||||||||||
| Nonperforming loans to total loans | 0.36 | % | 0.36 | % | 0.38 | % | 0.39 | % | 0.32 | % | ||||||||||
| Nonperforming assets to total assets | 0.28 | % | 0.28 | % | 0.30 | % | 0.34 | % | 0.29 | % | ||||||||||
| Special Mention loans | 65,693 | 74,050 | 73,732 | 40,687 | 47,022 | |||||||||||||||
| Substandard and Doubtful loans | 29,296 | 28,945 | 30,575 | 28,255 | 29,931 | |||||||||||||||
| Common Share Data | ||||||||||||||||||||
| Common shares outstanding | 23,888,929 | 23,827,137 | 23,830,038 | 20,528,192 | 20,519,717 | |||||||||||||||
| Book value per common share | $ | 33.40 | $ | 33.29 | $ | 30.97 | $ | 32.18 | $ | 32.26 | ||||||||||
| Tangible book value per common share (1) | 22.49 | 22.20 | 19.73 | 23.48 | 24.05 | |||||||||||||||
| Tangible book value per common share excluding other comprehensive income at period end (1) | 28.67 | 27.93 | 27.24 | 30.87 | 30.77 | |||||||||||||||
| Market price of stock | 32.68 | 34.66 | 26.56 | 24.14 | 27.22 | |||||||||||||||
| Key Performance Ratios and Metrics | ||||||||||||||||||||
| End of period earning assets | $ | 6,923,742 | $ | 6,780,160 | $ | 7,007,282 | $ | 6,023,553 | $ | 5,995,674 | ||||||||||
| Average earning assets | 6,884,855 | 6,948,309 | 6,593,781 | 6,049,626 | 6,052,264 | |||||||||||||||
| Average rate on average earning assets (tax equivalent) | 5.16 | % | 5.18 | % | 4.89 | % | 4.43 | % | 4.32 | % | ||||||||||
| Average rate on cost of funds | 1.91 | % | 1.85 | % | 1.83 | % | 1.59 | % | 1.38 | % | ||||||||||
| Net interest margin (tax equivalent) (1) | 3.25 | % | 3.33 | % | 3.06 | % | 2.84 | % | 2.94 | % | ||||||||||
| Return on average assets | 1.07 | % | 0.93 | % | 0.90 | % | 0.99 | % | 1.15 | % | ||||||||||
| Adjusted return on average assets (1) | 1.17 | % | 1.16 | % | 0.94 | % | 1.03 | % | 1.18 | % | ||||||||||
| Return on average common equity | 10.37 | % | 9.76 | % | 8.70 | % | 10.07 | % | 12.11 | % | ||||||||||
| Adjusted return on average common equity (1) | 11.28 | % | 12.11 | % | 9.82 | % | 10.42 | % | 11.92 | % | ||||||||||
| Efficiency ratio (tax equivalent) (1) | 59.09 | % | 58.91 | % | 58.60 | % | 60.37 | % | 59.01 | % | ||||||||||
| Full-time equivalent employees | 1,188 | 1,187 | 1,224 | 995 | 988 | |||||||||||||||
| 1 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure. | ||||||||||||||||||||
| FIRST MID BANCSHARES, INC. | |||||||||
| Net Interest Margin | |||||||||
| (In thousands, unaudited) | |||||||||
| For the Quarter Ended March 31, 2024 | |||||||||
| QTD Average | Average | ||||||||
| Balance | Interest | Rate | |||||||
| INTEREST EARNING ASSETS | |||||||||
| Interest bearing deposits | $ | 173,365 | $ | 2,407 | 5.58 | % | |||
| Federal funds sold | 1,094 | 17 | 6.25 | % | |||||
| Certificates of deposits investments | 1,545 | 20 | 5.21 | % | |||||
| Investment Securities: | |||||||||
| Taxable (total less municipals) | 904,451 | 5,470 | 2.42 | % | |||||
| Tax-exempt (Municipals) | 280,215 | 2,450 | 3.50 | % | |||||
| Loans (net of unearned income) | 5,524,185 | 77,924 | 5.67 | % | |||||
| Total interest earning assets | 6,884,855 | 88,288 | 5.16 | % | |||||
| NONEARNING ASSETS | |||||||||
| Cash and due from banks | 102,922 | ||||||||
| Premises and equipment | 101,530 | ||||||||
| Other nonearning assets | 624,205 | ||||||||
| Allowance for loan losses | (69,059 | ) | |||||||
| Total assets | $ | 7,644,453 | |||||||
| INTEREST BEARING LIABILITIES | |||||||||
| Demand deposits | $ | 3,036,837 | $ | 16,612 | 2.20 | % | |||
| Savings deposits | 707,849 | 178 | 0.10 | % | |||||
| Time deposits | 1,028,045 | 9,306 | 3.64 | % | |||||
| Total interest bearing deposits | 4,772,731 | 26,096 | 2.20 | % | |||||
| Repurchase agreements | 264,587 | 2,056 | 3.13 | % | |||||
| FHLB advances | 258,554 | 2,314 | 3.60 | % | |||||
| Federal funds purchased | - | - | 0.00 | % | |||||
| Subordinated debt | 106,791 | 1,194 | 4.50 | % | |||||
| Jr. subordinated debentures | 24,084 | 542 | 9.05 | % | |||||
| Other debt | - | - | 0.00 | % | |||||
| Total borrowings | 654,016 | 6,106 | 3.75 | % | |||||
| Total interest bearing liabilities | 5,426,747 | 32,202 | 2.39 | % | |||||
| NONINTEREST BEARING LIABILITIES | |||||||||
| Demand deposits | 1,367,798 | Average cost of funds | 1.91 | % | |||||
| Other liabilities | 59,056 | ||||||||
| Stockholders' equity | 790,852 | ||||||||
| Total liabilities & stockholders' equity | $ | 7,644,453 | |||||||
| Net Interest Earnings / Spread | $ | 56,086 | 2.77 | % | |||||
| Impact of Non-Interest Bearing Funds | 0.48 | % | |||||||
| Tax effected yield on interest earning assets | 3.25 | % | |||||||
| FIRST MID BANCSHARES, INC. | ||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
| (In thousands, unaudited) | ||||||||||||||||||||
| As of and for the Quarter Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
| Net interest income as reported | $ | 55,470 | $ | 57,462 | $ | 50,443 | $ | 42,367 | $ | 43,191 | ||||||||||
| Net interest income, (tax equivalent) | 56,086 | 58,255 | 51,212 | 43,109 | 43,947 | |||||||||||||||
| Average earning assets | 6,884,855 | 6,948,309 | 6,593,781 | 6,049,626 | 6,052,264 | |||||||||||||||
| Net interest margin (tax equivalent) | 3.25 | % | 3.33 | % | 3.06 | % | 2.84 | % | 2.94 | % | ||||||||||
| Common stockholder's equity | $ | 797,952 | $ | 793,204 | $ | 737,948 | $ | 660,687 | $ | 661,865 | ||||||||||
| Goodwill and intangibles, net | 260,699 | 264,231 | 267,793 | 178,615 | 168,373 | |||||||||||||||
| Common shares outstanding | 23,889 | 23,827 | 23,830 | 20,528 | 20,520 | |||||||||||||||
| Tangible Book Value per common share | $ | 22.49 | $ | 22.20 | $ | 19.73 | $ | 23.48 | $ | 24.05 | ||||||||||
| Accumulated other comprehensive loss (AOCI) | (147,667 | ) | (136,427 | ) | (178,903 | ) | (151,566 | ) | (137,901 | ) | ||||||||||
| Adjusted tangible book value per common share | $ | 28.67 | $ | 27.93 | $ | 27.24 | $ | 30.87 | $ | 30.77 | ||||||||||
| FIRST MID BANCSHARES, INC. | ||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
| (In thousands, except per share data, unaudited) | ||||||||||||||||||||
| As of and for the Quarter Ended | ||||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2024 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
| Adjusted earnings Reconciliation | ||||||||||||||||||||
| Net Income - GAAP | $ | 20,503 | $ | 18,071 | $ | 15,117 | $ | 16,567 | $ | 19,180 | ||||||||||
| Adjustments (post-tax): (1) | ||||||||||||||||||||
| Acquisition ACL on non-PCD assets in provision expense | - | - | 2,985 | - | - | |||||||||||||||
| Nonrecurring severance expense | - | - | - | - | 416 | |||||||||||||||
| Net (gain)/loss on securities sales | - | (36 | ) | (2,677 | ) | - | - | |||||||||||||
| Integration and acquisition expenses | 1,804 | 4,385 | 1,653 | 589 | 135 | |||||||||||||||
| Total non-recurring adjustments (non-GAAP) | $ | 1,804 | $ | 4,348 | $ | 1,962 | $ | 589 | $ | 551 | ||||||||||
| Adjusted earnings - non-GAAP | $ | 22,307 | $ | 22,419 | $ | 17,079 | $ | 17,156 | $ | 19,731 | ||||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 0.93 | $ | 0.94 | $ | 0.77 | $ | 0.83 | $ | 0.96 | ||||||||||
| Adjusted return on average assets - non-GAAP | 1.17 | % | 1.16 | % | 0.94 | % | 1.03 | % | 1.18 | % | ||||||||||
| Adjusted return on average common equity - non-GAAP | 11.28 | % | 12.11 | % | 9.82 | % | 10.42 | % | 11.92 | % | ||||||||||
| Efficiency Ratio Reconciliation | ||||||||||||||||||||
| Noninterest expense - GAAP | $ | 53,362 | $ | 57,025 | $ | 47,096 | $ | 40,042 | $ | 41,577 | ||||||||||
| Other real estate owned property income (expense) | 21 | (800 | ) | (902 | ) | (27 | ) | (133 | ) | |||||||||||
| Amortization of intangibles | (3,497 | ) | (3,560 | ) | (2,568 | ) | (1,477 | ) | (1,522 | ) | ||||||||||
| Nonrecurring severance expense | - | - | - | - | (527 | ) | ||||||||||||||
| Integration and acquisition expenses | (2,283 | ) | (5,550 | ) | (2,093 | ) | (745 | ) | (171 | ) | ||||||||||
| Adjusted noninterest expense (non-GAAP) | $ | 47,603 | $ | 47,115 | $ | 41,533 | $ | 37,793 | $ | 39,224 | ||||||||||
| Net interest income -GAAP | $ | 55,470 | $ | 57,462 | $ | 50,443 | $ | 42,367 | $ | 43,192 | ||||||||||
| Effect of tax-exempt income (1) | 616 | 793 | 769 | 742 | 755 | |||||||||||||||
| Adjusted net interest income (non-GAAP) | $ | 56,086 | $ | 58,255 | $ | 51,212 | $ | 43,109 | $ | 43,947 | ||||||||||
| Noninterest income - GAAP | $ | 24,478 | $ | 21,768 | $ | 23,053 | $ | 19,486 | $ | 22,479 | ||||||||||
| Net (gain)/loss on securities sales | 0 | (46 | ) | (3,389 | ) | 6 | 46 | |||||||||||||
| Adjusted noninterest income (non-GAAP) | $ | 24,478 | $ | 21,722 | $ | 19,664 | $ | 19,492 | $ | 22,525 | ||||||||||
| Adjusted total revenue (non-GAAP) | $ | 80,564 | $ | 79,977 | $ | 70,876 | $ | 62,601 | $ | 66,472 | ||||||||||
| Efficiency ratio (non-GAAP) | 59.09 | % | 58.91 | % | 58.60 | % | 60.37 | % | 59.01 | % | ||||||||||
| (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. | ||||||||||||||||||||
