MATTOON, Ill., Jan. 26, 2023 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ:FMBH) (the "Company") today announced its financial results for the quarter and year ended December 31, 2022.

Highlights

Net income of $20.6 million, or $1.01 diluted EPS
Adjusted net income (non-GAAP) of $20.8 million, or $1.01 diluted EPS
Strong loan growth of 2.2% for the quarter and 10.3% for the year (excluding acquired loans)
Tangible book value per share increased 7.8% for the quarter
Improved on already strong asset quality ratios reflecting strength if economic downturn transpires
Board of Directors declares regular quarterly dividend of $0.23 per share

"Our fourth quarter results capped off a strong, but challenging year," said Joe Dively, Chairman and Chief Executive Officer. "For 2022, we delivered exceptional loan growth and excellent credit quality. Our noninterest income grew by over 7% for the year, driven by double digit growth in our wealth management and insurance businesses that more than offset lower mortgage banking revenues. We successfully integrated Jefferson Bank and Trust ("Jefferson") and met all of our acquisition related financial targets. While funding costs have increased at a faster pace than we anticipated placing pressure on margin, we have offset this challenge with stringent expense management and our relationship driven strategy to provide our expanded services to customers."

Net Interest Income

Net interest income for the fourth quarter of 2022 decreased by $2.6 million, or 5.4% compared to the third quarter of 2022. Interest income increased by $4.0 million primarily driven by loan growth and higher interest rates. Interest expense increased by $6.5 million on increased rates and aggressive competition. Accretion income declined by $0.3 million for the quarter to $0.6 million.

In comparison to the fourth quarter of 2021, net interest income increased $2.9 million, or 6.9%. The increase was primarily the result of organic loan growth, higher interest rates, and the acquisition of Jefferson.

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.07% for the fourth quarter of 2022, which was a decrease of 14 basis points compared to the prior quarter. Lower accretion income represented 2 basis points of the decline for the quarter. Earning asset yields increased by 30 basis points, while the average cost of funds increased 44 basis points.

In comparison to the fourth quarter of last year, the net interest margin decreased 4 basis points. The primary reason for the decrease was due to PPP fee income being lower by $1.7 million compared to the fourth quarter of 2021. Earning asset yields increased 70 basis points, while the average cost of funds increased 74 basis points.

Loan Portfolio

Total loans ended the quarter at $4.83 billion, representing an increase of $105.9 million, or 2.2%, compared to the prior quarter. The growth in the quarter was primarily in farm real estate, CRE and C&I. While the pipeline remains solid, we do anticipate it softening based on the macroeconomic conditions. As we have experienced in the past, we expect seasonal line paydowns in agricultural operating lines during the first quarter of 2023.

Asset Quality

First Mid's asset quality continues to be very strong and well positioned if an economic downturn occurs. Nonperforming loans decreased by $1.6 million in the period and the ratio of nonperforming loans to total loans decreased to 0.40%. The allowance for credit losses ("ACL") to nonperforming loans increased to 308.3%. As of December 31, 2022, the ACL increased by $0.3 million to $59.1 million with an ending ACL to total loans ratio of 1.22%. In addition, the Company has $7.0 million, or 15 basis points, of discount remaining on purchased loans. Provision expense was recorded in the amount of $0.8 million and net charge offs totaled $0.5 million. Special mention loans increased by $14.6 million, while substandard loans decreased by $3.0 million.

Deposits

Total deposits ended the quarter at $5.26 billion, which represented a decrease of $226.2 million, or 4.1%, from the prior quarter. The decrease was primarily in money market and noninterest bearing deposits. The Company has experienced increased competition from brokerage firms and community banks. In some cases, we are successful in maintaining the customer's funds within the Company, but off balance sheet by providing our own wealth management solutions. The Company's average rate on cost of funds was 1.00% compared to 0.56% in the prior quarter, and 0.26% versus the fourth quarter of 2021.

Noninterest Income

Noninterest income for the fourth quarter of 2022 was $18.2 million compared to $16.8 million in the third quarter of 2022. The increase was primarily driven by the seasonality in insurance and wealth management revenues from farmland sales. Wealth management and insurance revenue increased $1.4 million and $0.6 million, respectively, from the prior quarter. Mortgage banking represented the largest decline in the period.

In comparison to the fourth quarter of 2021, noninterest income increased $0.1 million, or 0.5%. The increase was primarily driven by a $0.6 million increase in insurance and a $0.3 million increase in service charges, offsetting a $0.8 million decline in mortgage banking.

Noninterest Expenses

Noninterest expense for the fourth quarter of 2022 totaled $39.4 million, which was a decrease of $2.2 million compared to the prior quarter. The current quarter included $0.2 million of nonrecurring integration expenses for the Jefferson acquisition compared to $0.7 million in the third quarter. The Company has increased its emphasis in its ongoing effort to identify and implement cost savings initiatives to drive a more efficient operations.

In comparison to the fourth quarter of 2021, noninterest expenses increased $3.0 million. The increase was primarily driven by the additional expense related to the Jefferson acquisition and inflationary cost increases.

The Company's efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter 2022 was 58.1% compared to 59.6% in the prior quarter and 55.8% for the same period last year.

Capital Levels, Dividend and Taxes

The Company's capital levels remained strong and comfortably above the "well capitalized" levels. Capital levels ended the period as follows:

Total capital to risk-weighted assets	15.20%
Tier 1 capital to risk-weighted assets	12.40%
Common equity tier 1 capital to risk-weighted assets	12.03%
Leverage ratio	9.62%

The Company's Board of Directors approved a regular quarterly dividend of $0.23 payable on March 1, 2023 for shareholders of record on February 15, 2023.

The Company's effective tax rate for the fourth quarter was 12.9% compared to 23.2% in the prior quarter. The primary reason for the lower tax rate was a $2.5 million credit in the current quarter. The credit was due to the removal of a deferred tax liability that was no longer applicable.

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 $6.7 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, and Texas, 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 157 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; the severity, magnitude and duration of the COVID-19 pandemic, the direct and indirect impact of such pandemic, including responses to the pandemic by the U.S., state and local governments, customers' businesses, the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect First Mid's liquidity and capital positions, impair the ability of First Mid's borrowers to repay outstanding loans, impair collateral values, and further increase the allowance for credit losses, and the impact of the COVID-19 pandemic on First Mid's financial results, including possible lost revenue and increased expenses (including cost of capital), as well as possible goodwill impairment charges. 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:

Aaron Holt

VP, Shareholder Relations

217-258-0463

aholt@firstmid.com

Matt Smith

Chief Financial Officer

217-258-1528

msmith@firstmid.com

– Tables Follow –


FIRST MID BANCSHARES, INC.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
	As of
	December 31,			September 30,			December 31,
		2022			2022			2021

Assets
Cash and cash equivalents	$	152,433		$	160,954		$	168,602
Investment securities		1,223,720			1,235,505			1,431,299
Loans (including loans held for sale)		4,826,212			4,720,290			3,995,523
Less allowance for credit losses		(59,093	)		(58,777	)		(54,655	)
Net loans		4,767,119			4,661,513			3,940,868
Premises and equipment, net		90,473			90,659			81,484
Goodwill and intangibles, net		169,897			170,897			141,376
Bank owned life insurance		151,756			150,831			132,375
Other assets		188,817			181,024			90,578
Total assets	$	6,744,215		$	6,651,383		$	5,986,582

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	1,256,514		$	1,334,686		$	1,246,673
Interest bearing		4,000,487			4,148,512			3,709,813
Total deposits		5,257,001			5,483,198			4,956,486
Repurchase agreement with customers		221,414			220,707			146,268
Other borrowings		465,071			181,232			86,446
Junior subordinated debentures		19,364			19,322			19,195
Subordinated debt		94,553			94,515			94,400
Other liabilities		53,657			51,694			49,893
Total liabilities		6,111,060			6,050,668			5,352,688

Total stockholders' equity		633,155			600,715			633,894
Total liabilities and stockholders' equity	$	6,744,215		$	6,651,383		$	5,986,582


FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)

	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
		2022			2021		2022		2021
Interest income:
Interest and fees on loans	$	53,128		$	39,711	$	185,869	$	159,684
Interest on investment securities		7,285			6,500		29,380		22,916
Interest on federal funds sold & other deposits		296			88		642		413
Total interest income		60,709			46,299		215,891		183,013
Interest expense:
Interest on deposits		9,227			2,057		18,813		9,037
Interest on securities sold under agreements to repurchase		1,163			52		1,795		231
Interest on other borrowings		3,345			336		6,193		1,514
Interest on jr. subordinated debentures		315			125		868		541
Interest on subordinated debt		987			985		3,945		3,939
Total interest expense		15,037			3,555		31,614		15,262
Net interest income		45,672			42,744		184,277		167,751
Provision for loan losses		805			2,472		4,806		15,151
Net interest income after provision for loan		44,867			40,272		179,471		152,600
Non-interest income:
Wealth management revenues		6,201			6,261		22,492		20,407
Insurance commissions		4,719			4,150		21,622		18,927
Service charges		2,375			2,067		9,112		6,808
Securities gains, net		(48	)		36		33		124
Mortgage banking revenues		65			890		1,190		4,718
ATM/debit card revenue		3,209			3,074		12,422		11,974
Other		1,686			1,646		7,811		6,809
Total non-interest income		18,207			18,124		74,682		69,767
Non-interest expense:
Salaries and employee benefits		23,610			20,424		98,594		89,660
Net occupancy and equipment expense		6,126			5,712		24,257		21,546
Net other real estate owned (income) expense		87			315		330		3,866
FDIC insurance		464			406		1,805		1,604
Amortization of intangible assets		1,537			1,462		6,290		5,391
Stationary and supplies		298			311		1,295		1,161
Legal and professional expense		1,607			1,811		6,996		6,730
ATM/debit card expense		1,309			586		4,300		3,116
Marketing and donations		681			1,915		2,999		3,603
Other		3,653			3,452		15,995		18,902
Total non-interest expense		39,372			36,394		162,861		155,579
Income before income taxes		23,702			22,002		91,292		66,788
Income taxes		3,063			5,168		18,340		15,298
Net income	$	20,639		$	16,834	$	72,952	$	51,490

Per Share Information
Basic earnings per common share	$	1.01		$	0.93	$	3.62	$	2.88
Diluted earnings per common share		1.01			0.93		3.60		2.87

Weighted average shares outstanding		20,461,046			18,086,949		20,169,077		17,886,998
Diluted weighted average shares outstanding		20,535,220			18,135,380		20,243,635		17,939,007


FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)

	For the Quarter Ended
	December 31,			September 30,		June 30,		March 31,			December 31,
		2022		2022		2022			2022		2021
Interest income:
Interest and fees on loans	$	53,128		$	49,278	$	43,555	$	39,908		$	39,711
Interest on investment securities		7,285			7,302		7,623		7,170			6,500
Interest on federal funds sold & other deposits		296			174		105		67			88
Total interest income		60,709			56,754		51,283		47,145			46,299
Interest expense:
Interest on deposits		9,227			4,915		2,523		2,148			2,057
Interest on securities sold under agreements to repurchase		1,163			428		137		67			52
Interest on other borrowings		3,345			1,927		645		276			336
Interest on jr. subordinated debentures		315			241		166		146			125
Interest on subordinated debt		987			986		986		986			985
Total interest expense		15,037			8,497		4,457		3,623			3,555
Net interest income		45,672			48,257		46,826		43,522			42,744
Provision for loan losses		805			142		907		2,952			2,472
Net interest income after provision for loan		44,867			48,115		45,919		40,570			40,272
Non-interest income:
Wealth management revenues		6,201			4,843		5,473		5,975			6,261
Insurance commissions		4,719			4,158		5,641		7,104			4,150
Service charges		2,375			2,445		2,236		2,056			2,067
Securities gains, net		(48	)		79		2		-			36
Mortgage banking revenues		65			355		289		444			890
ATM/debit card revenue		3,209			3,101		3,214		2,898			3,074
Other		1,686			1,810		1,704		2,611			1,646
Total non-interest income		18,207			16,791		18,559		21,088			18,124
Non-interest expense:
Salaries and employee benefits		23,610			24,877		25,768		24,302			20,424
Net occupancy and equipment expense		6,126			5,903		6,073		6,155			5,712
Net other real estate owned (income) expense		87			58		218		(33	)		315
FDIC insurance		464			479		436		426			406
Amortization of intangible assets		1,537			1,598		1,633		1,522			1,462
Stationary and supplies		298			361		325		311			311
Legal and professional expense		1,607			1,770		1,885		1,734			1,811
ATM/debit card expense		1,309			1,243		670		1,078			586
Marketing and donations		681			739		706		873			1,915
Other		3,653			4,521		3,801		4,020			3,452
Total non-interest expense		39,372			41,549		41,515		40,388			36,394
Income before income taxes		23,702			23,357		22,963		21,270			22,002
Income taxes		3,063			5,418		5,205		4,654			5,168
Net income	$	20,639		$	17,939	$	17,758	$	16,616		$	16,834

Per Share Information
Basic earnings per common share	$	1.01		$	0.88	$	0.87	$	0.86		$	0.93
Diluted earnings per common share		1.01			0.88		0.86		0.86			0.93

Weighted average shares outstanding		20,461,046			20,454,669		20,448,799		19,295,860			18,086,949
Diluted weighted average shares outstanding		20,535,220			20,535,215		20,529,523		19,358,457			18,135,380

FIRST MID BANCSHARES, INC.
Consolidated Financial Highlights and Ratios
(Dollars in thousands, except per share data)
(Unaudited)

	As of and for the Quarter Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
		2022			2022			2022			2022			2021

Loan Portfolio
Construction and land development	$	144,264		$	142,801		$	141,072		$	131,504		$	145,118
Farm real estate loans		410,327			360,424			350,159			280,993			279,272
1-4 Family residential properties		440,180			436,625			424,230			417,232			400,313
Multifamily residential properties		294,346			298,321			330,600			369,926			298,942
Commercial real estate		2,030,011			1,996,338			1,976,654			1,965,321			1,666,198
Loans secured by real estate		3,319,128			3,234,509			3,222,715			3,164,976			2,789,843
Agricultural operating loans		166,838			160,511			142,406			121,708			151,484
Commercial and industrial loans		1,082,960			1,064,033			1,036,987			935,454			832,008
Consumer loans		97,775			100,783			94,828			89,685			78,442
All other loans		159,511			160,454			151,727			142,738			143,746
Total loans		4,826,212			4,720,290			4,648,663			4,454,561			3,995,523

Deposit Portfolio
Non-interest bearing demand deposits	$	1,256,514		$	1,334,686		$	1,369,756		$	1,373,881		$	1,246,673
Interest bearing demand deposits		1,389,283			1,364,306			1,453,932			1,482,556			1,452,765
Savings deposits		636,699			657,592			683,944			685,228			626,523
Money Market		1,267,726			1,443,060			1,158,724			1,280,129			1,068,473
Time deposits		706,779			683,554			652,622			665,511			562,052
Total deposits		5,257,001			5,483,198			5,318,978			5,487,305			4,956,486

Asset Quality
Non-performing loans	$	19,170		$	20,812		$	19,981		$	22,465		$	22,036
Non-performing assets		23,539			25,143			24,190			27,269			27,055
Net charge-offs (recoveries)		489			440			307			(5	)		1,800
Allowance for credit losses to non-performing loans		308.26	%		282.42	%		295.66	%		260.29	%		248.03	%
Allowance for credit losses to total loans outstanding		1.22	%		1.25	%		1.27	%		1.31	%	1.37%¹
Nonperforming loans to total loans		0.40	%		0.44	%		0.43	%		0.50	%		0.55	%
Nonperforming assets to total assets		0.35	%		0.38	%		0.36	%		0.41	%		0.45	%
Special Mention loans		39,853			25,298			35,849			64,160			66,235
Substandard and Doubtful loans		34,352			37,378			38,155			38,801			46,862

Common Share Data
Common shares outstanding		20,452,376			20,454,636			20,448,799			20,437,183			18,080,303
Book value per common share	$	30.96		$	29.37		$	30.63		$	32.61		$	35.06
Tangible book value per common share ⁽²⁾		22.65			21.01			22.17			24.07			27.24
Market price of stock		32.08			31.97			35.67			38.49			42.79

Key Performance Ratios and Metrics
End of period earning assets	$	6,063,953		$	5,975,619		$	6,024,815		$	6,038,542		$	5,504,517
Average earning assets		6,000,106			6,063,061			5,975,821			5,817,752			5,539,819
Average rate on average earning assets (tax equivalent)		4.07	%		3.77	%		3.50	%		3.33	%		3.37	%
Average rate on cost of funds		1.00	%		0.56	%		0.30	%		0.26	%		0.26	%
Net interest margin (tax equivalent) ⁽²⁾		3.07	%		3.21	%		3.20	%		3.07	%		3.11	%
Return on average assets		1.24	%		1.07	%		1.08	%		1.05	%		1.12	%
Return on average common equity		13.51	%		11.18	%		11.02	%		9.95	%		10.74	%
Efficiency ratio (tax equivalent) ⁽²⁾		58.07	%		59.64	%		58.45	%		58.59	%		55.75	%
Full-time equivalent employees		1,043			1,051			1,025			1,050			965

¹ Excludes Paycheck Protection Loans
² 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 December 31, 2022
	QTD Average					Average
	Balance			Interest		Rate
INTEREST EARNING ASSETS
Interest bearing deposits	$	18,419		$	220	4.74%
Federal funds sold		7,507			68	3.59%
Certificates of deposits investments		1,470			8	2.16%
Investment Securities:
Taxable (total less municipals)		958,380			5,238	2.19%
Tax-exempt (Municipals)		278,128			2,592	3.73%
Loans (net of unearned income)		4,736,202			53,374	4.47%

Total interest earning assets		6,000,106			61,500	4.07%

NONEARNING ASSETS
Cash and due from banks		141,696
Premises and equipment		90,679
Other nonearning assets		486,896
Allowance for loan losses		(58,967	)

Total assets	$	6,660,410

INTEREST BEARING LIABILITIES
Demand deposits	$	2,582,114		$	7,014	1.08%
Savings deposits		648,084			178	0.11%
Time deposits		686,100			2,034	1.18%
Total interest bearing deposits		3,916,298			9,226	0.93%
Repurchase agreements		248,886			1,163	1.85%
FHLB advances		399,574			3,342	3.32%
Federal funds purchased		266			3	4.47%
Subordinated debt		94,528			987	4.14%
Jr. subordinated debentures		19,343			315	6.46%
Other debt		-			-	0.00%
Total borrowings		762,597			5,810	3.02%
Total interest bearing liabilities		4,678,895			15,036	1.27%

NONINTEREST BEARING LIABILITIES
Demand deposits		1,315,996		Average cost of funds		1.00%
Other liabilities		54,647
Stockholders' equity		610,872

Total liabilities & stockholders' equity	$	6,660,410

Net Interest Earnings / Spread				$	46,464	2.80%

Impact of Non-Interest Bearing Funds						0.27%

Tax effected yield on interest earning assets						3.07%

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, unaudited)

	As of and for the Quarter Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2022			2022			2022			2022			2021

Net interest income as reported	$	45,672		$	48,257		$	46,826		$	43,522		$	42,744
Net interest income, (tax equivalent)		46,464			49,060			47,625			44,292			43,492
Average earning assets		6,000,106			6,063,061			5,975,821			5,817,752			5,539,819
Net interest margin (tax equivalent)		3.07	%		3.21	%		3.20	%		3.07	%		3.11	%


Common stockholder's equity	$	633,155		$	600,715		$	626,268		$	666,385		$	633,894
Goodwill and intangibles, net		169,897			170,897			172,871			174,499			141,376
Common shares outstanding		20,452			20,455			20,449			20,437			18,080
Tangible Book Value per common share	$	22.65		$	21.01		$	22.17		$	24.07		$	27.24

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)

	As of and for the Quarter Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2022			2022				2022			2022			2021
Adjusted earnings Reconciliation
Net Income - GAAP	$	20,639		$	17,939		$	17,758		$	16,616		$	16,834
Adjustments (post-tax): ⁽¹⁾
Acquisition ACL on non-PCD assets in provision expense		-			-			-			1,580			-
Integration and acquisition expenses		131			524			777			469			225
Total non-recurring adjustments (non-GAAP)	$	131		$	524		$	777		$	2,049		$	225

Adjusted earnings - non-GAAP	$	20,770		$	18,463		$	18,535		$	18,665		$	17,059
Adjusted diluted earnings per share (non-GAAP)	$	1.01		$	0.90		$	0.90		$	0.96		$	0.94

Efficiency Ratio Reconciliation
Noninterest expense - GAAP	$	39,372		$	41,549		$	41,515		$	40,388		$	36,394
Other real estate owned property income (expense)		(87	)		(58	)		(218	)		33			(315	)
Amortization of intangibles		(1,537	)		(1,598	)		(1,633	)		(1,522	)		(1,462	)
Branch optimization costs		-			-			-			-			-
integration and acquisition expenses		(166	)		(663	)		(983	)		(594	)		(285	)
Adjusted noninterest expense (non-GAAP)	$	37,582		$	39,230		$	38,681		$	38,305		$	34,332

Net interest income -GAAP	$	45,672		$	48,257		$	46,826		$	43,522		$	42,744
Effect of tax-exempt income ⁽¹⁾		792			803			799			770			748
Adjusted net interest income (non-GAAP)	$	46,464		$	49,060		$	47,625		$	44,292		$	43,492

Noninterest income - GAAP	$	18,207		$	16,791		$	18,559		$	21,088		$	18,124
Loss/(Gain) on sales of investment securities, net		48			(79	)		(2	)		-			(36	)
Adjusted noninterest income (non-GAAP)	$	18,255		$	16,712		$	18,557		$	21,088		$	18,088

Adjusted total revenue (non-GAAP)	$	64,719		$	65,772		$	66,182		$	65,380		$	61,580

Efficiency ratio (non-GAAP)		58.07	%		59.64	%		58.45	%		58.59	%		55.75	%

(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.

First Mid Bancshares, Inc. Announces Fourth Quarter 2022 Results