MATTOON, Ill., Jan. 25, 2024 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ:FMBH) (the "Company") today announced its financial results for the quarter and year ended December 31, 2023.
Highlights
- Net income of $18.1 million, or $0.76 diluted EPS
- Adjusted net income (non-GAAP) of $22.4 million, or $0.94 diluted EPS
- Completed the merger and integration of Blackhawk Bank ("Blackhawk")
- Sold additional bonds to reposition balance sheet helping drive a strong net interest margin of 3.33%
- Strong asset quality performance continued with minimal net charge offs for the quarter
- Board of Directors declares regular quarterly dividend of $0.23 per share
"We capped off 2023 with a strong quarter of financial results," said Joe Dively, Chairman and Chief Executive Officer. "This was the first full quarter inclusive of Blackhawk and the value of the transaction is evident in our results. We completed another step in the Blackhawk related balance sheet repositioning by selling additional bonds with proceeds of $79.7 million used to reduce brokered CDs and wholesale borrowings, improving our net interest margin."
"During the quarter, we completed the merger of Blackhawk into First Mid Bank & Trust and the related core system conversion. Our employees worked extremely hard to make the transition as seamless as possible for our customers in what was our largest, most complex integration. I am proud of the efforts of our team and their support of our customers," Dively concluded.
Net Interest Income
Net interest income for the fourth quarter of 2023 increased by $7.0 million, or 13.9% compared to the third quarter of 2023. Interest income and interest expense increased in the quarter by $9.5 million and $2.5 million, respectively. The increase in interest income was primarily driven by the addition of Blackhawk, loan growth, and the repricing of loans with higher interest rates. Accretion income for the quarter was $4.6 million, an increase compared to $2.6 million in the prior quarter. The increase in interest expense was primarily driven by the addition of Blackhawk and higher interest rates. During the quarter, the Company sold $79.7 million of bonds and used the proceeds to payoff maturing brokered CDs and wholesale borrowings.
In comparison to the fourth quarter of 2022, net interest income increased $11.8 million, or 25.8%. The increase was primarily driven by the addition of Blackhawk. For the same period, interest income increased by $29.2 million, while interest expense increased $17.4 million.
Net Interest Margin
Net interest margin, on a tax equivalent basis (non-GAAP), was 3.33% for the fourth quarter of 2023, which was 27 basis points higher compared to the prior quarter. Earning asset yields increased by 29 basis points and the average cost of funds increased 2 basis points.
In comparison to the fourth quarter of last year, the net interest margin increased 26 basis points, with an average earning asset increase of 111 basis points versus the average cost of funds increase of 85 basis points.
Loan Portfolio
Total loans ended the quarter at $5.58 billion, representing an increase of $40.5 million. The growth was spread among several categories with the largest increase in Ag operating loans. Overall, loan demand slightly improved and we saw an increase in line draws during the period. Most of the new originations and renewed loans in the period were at rates in the 8.00% to 8.50% range.
Asset Quality
The fourth quarter was another strong period with respect to the Company's asset quality metrics. The allowance for credit losses ("ACL") increased by $0.4 million to $68.7 million with an ending ACL to total loans ratio of 1.23%. In addition to the ACL, an unearned discount of $49.9 million remains at quarter end. Provision expense was recorded in the amount of $0.6 million with net charge offs of $0.1 million in the quarter. Also, at the end of the fourth quarter, the ratio of non-performing loans to total loans was 0.36%, and the ACL to non-performing loans was 341.19%. The ratio of nonperforming assets to total assets was 0.28% and nonperforming loans were $20.1 million at quarter end. For the quarter, special mention loans were $74.1 million and substandard loans were $28.9 million.
Deposits
Total deposits ended the quarter at $6.12 billion, which represented a decrease of $222.7 million from the prior quarter. Of the decline, $73.2 million came from time deposits, including brokered, where the Company used proceeds from its bond sales to pay these off at maturity. The remaining portion of the decline in balances was driven primarily by seasonal cash flow operating needs of commercial customers. Noninterest bearing deposits increased by $9.2 million in the quarter. The Company's average rate on cost of funds increased to 1.85% compared to 1.83% in the prior quarter and 1.00% in the fourth quarter of 2022.
Noninterest Income
Noninterest income represented 31% of our total net revenues for the year.
Noninterest income for the fourth quarter of 2023 was $21.8 million compared to $23.1 million in the third quarter of 2023. Excluding securities gains for both periods, noninterest income increased $2.1 million in the current quarter. The increase was primarily driven by the full quarter benefit of Blackhawk, along with higher insurance revenues.
In comparison to the fourth quarter of 2022, noninterest income increased $3.6 million, or 19.6%, due to a combination of organic growth and the addition of Blackhawk's operating costs for the period.
Noninterest Expenses
Noninterest expense for the fourth quarter of 2023 totaled $57.0 million compared to $47.1 million in the prior quarter. The increase was primarily driven by the full quarter of Blackhawk and approximately $5.6 million in nonrecurring acquisition related costs.
In comparison to the fourth quarter of 2022, noninterest expenses increased $17.7 million. In addition to $5.6 million in nonrecurring integration related costs during the period, the increase was primarily driven by the addition of Blackhawk.
The Company's efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter 2023 was 58.9% compared to 58.6% in the prior quarter and 58.1% for the same period last year.
Capital Levels, Dividend and Taxes
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 | 14.84% | |
| Tier 1 capital to risk-weighted assets | 12.02% | |
| Common equity tier 1 capital to risk-weighted assets | 11.62% | |
| Leverage ratio | 9.33% | |
Tangible book value per share increased in the period to $22.20 on a combination of both earnings growth and improvement in the unrealized loss position in the bond portfolio impacting accumulated other comprehensive income ("AOCI").
The Company's Board of Directors approved a regular quarterly dividend of $0.23 payable on March 1, 2024 for shareholders of record on February 16, 2024.
The Company's effective tax rate for the fourth quarter was 16.6% and 22.0% for the year. The lower rate in the current period was primarily due to $0.8 million of refunds for amendments filed on Wisconsin state taxes.
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 $7.6 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:
Aaron Holt
VP, Shareholder Relations
217-258-0463
[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 | ||||||||||||
| December 31, | September 30, | December 31, | ||||||||||
| 2023 | 2023 | 2022 | ||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 143,064 | $ | 383,237 | $ | 152,433 | ||||||
| Investment securities | 1,179,402 | 1,226,746 | 1,223,720 | |||||||||
| Loans (including loans held for sale) | 5,580,565 | 5,540,065 | 4,826,212 | |||||||||
| Less allowance for credit losses | (68,675 | ) | (68,241 | ) | (59,093 | ) | ||||||
| Net loans | 5,511,890 | 5,471,824 | 4,767,119 | |||||||||
| Premises and equipment, net | 101,396 | 102,004 | 90,473 | |||||||||
| Goodwill and intangibles, net | 264,231 | 267,793 | 169,897 | |||||||||
| Bank owned life insurance | 166,125 | 165,022 | 151,756 | |||||||||
| Other assets | 220,686 | 238,668 | 188,817 | |||||||||
| Total assets | $ | 7,586,794 | $ | 7,855,294 | $ | 6,744,215 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest bearing | $ | 1,398,234 | $ | 1,389,022 | $ | 1,256,514 | ||||||
| Interest bearing | 4,725,425 | 4,957,302 | 4,000,487 | |||||||||
| Total deposits | 6,123,659 | 6,346,324 | 5,257,001 | |||||||||
| Repurchase agreement with customers | 213,721 | 214,978 | 221,414 | |||||||||
| Other borrowings | 263,787 | 364,953 | 465,071 | |||||||||
| Junior subordinated debentures | 24,058 | 24,003 | 19,364 | |||||||||
| Subordinated debt | 106,755 | 106,648 | 94,553 | |||||||||
| Other liabilities | 61,610 | 60,440 | 53,657 | |||||||||
| Total liabilities | 6,793,590 | 7,117,346 | 6,111,060 | |||||||||
| Total stockholders' equity | 793,204 | 737,948 | 633,155 | |||||||||
| Total liabilities and stockholders' equity | $ | 7,586,794 | $ | 7,855,294 | $ | 6,744,215 | ||||||
| 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, | ||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||
| Interest income: | |||||||||||||
| Interest and fees on loans | $ | 78,676 | $ | 53,128 | $ | 262,423 | $ | 185,869 | |||||
| Interest on investment securities | 8,515 | 7,285 | 32,119 | 29,380 | |||||||||
| Interest on federal funds sold & other deposits | 2,736 | 296 | 5,624 | 642 | |||||||||
| Total interest income | 89,927 | 60,709 | 300,166 | 215,891 | |||||||||
| Interest expense: | |||||||||||||
| Interest on deposits | 25,900 | 9,227 | 77,294 | 18,813 | |||||||||
| Interest on securities sold under agreements to repurchase | 1,754 | 1,163 | 6,565 | 1,795 | |||||||||
| Interest on other borrowings | 3,073 | 3,345 | 16,789 | 6,193 | |||||||||
| Interest on jr. subordinated debentures | 545 | 315 | 1,859 | 868 | |||||||||
| Interest on subordinated debt | 1,193 | 987 | 4,196 | 3,945 | |||||||||
| Total interest expense | 32,465 | 15,037 | 106,703 | 31,614 | |||||||||
| Net interest income | 57,462 | 45,672 | 193,463 | 184,277 | |||||||||
| Provision for credit losses | 552 | 805 | 6,104 | 4,806 | |||||||||
| Net interest income after provision for loan | 56,910 | 44,867 | 187,359 | 179,471 | |||||||||
| Non-interest income: | |||||||||||||
| Wealth management revenues | 4,998 | 6,201 | 20,793 | 22,492 | |||||||||
| Insurance commissions | 5,398 | 4,719 | 24,814 | 21,622 | |||||||||
| Service charges | 3,298 | 2,375 | 10,881 | 9,112 | |||||||||
| Net securities gains/(losses) | 46 | (48 | ) | 3,383 | 33 | ||||||||
| Mortgage banking revenues | 954 | 65 | 2,282 | 1,190 | |||||||||
| ATM/debit card revenue | 4,233 | 3,209 | 14,347 | 12,422 | |||||||||
| Other | 2,841 | 1,686 | 10,286 | 7,811 | |||||||||
| Total non-interest income | 21,768 | 18,207 | 86,786 | 74,682 | |||||||||
| Non-interest expense: | |||||||||||||
| Salaries and employee benefits | 29,925 | 23,610 | 104,962 | 98,594 | |||||||||
| Net occupancy and equipment expense | 7,977 | 6,126 | 26,946 | 24,257 | |||||||||
| Net other real estate owned (income) expense | 800 | 87 | 1,862 | 330 | |||||||||
| FDIC insurance | 1,015 | 464 | 3,339 | 1,805 | |||||||||
| Amortization of intangible assets | 3,560 | 1,537 | 9,127 | 6,290 | |||||||||
| Stationary and supplies | 404 | 298 | 1,346 | 1,295 | |||||||||
| Legal and professional expense | 2,065 | 1,607 | 7,379 | 6,996 | |||||||||
| ATM/debit card expense | 1,332 | 1,309 | 5,322 | 4,300 | |||||||||
| Marketing and donations | 679 | 681 | 3,005 | 2,999 | |||||||||
| Other | 9,268 | 3,653 | 22,452 | 15,995 | |||||||||
| Total non-interest expense | 57,025 | 39,372 | 185,740 | 162,861 | |||||||||
| Income before income taxes | 21,653 | 23,702 | 88,405 | 91,292 | |||||||||
| Income taxes | 3,582 | 3,063 | 19,470 | 18,340 | |||||||||
| Net income | $ | 18,071 | $ | 20,639 | $ | 68,935 | $ | 72,952 | |||||
| Per Share Information | |||||||||||||
| Basic earnings per common share | $ | 0.76 | $ | 1.01 | $ | 3.17 | $ | 3.62 | |||||
| Diluted earnings per common share | 0.76 | 1.01 | 3.15 | 3.60 | |||||||||
| Weighted average shares outstanding | 23,837,853 | 20,461,046 | 21,780,217 | 20,169,077 | |||||||||
| Diluted weighted average shares outstanding | 23,921,758 | 20,535,220 | 21,868,788 | 20,243,635 | |||||||||
| 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, | ||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||
| Interest income: | ||||||||||||||||||
| Interest and fees on loans | $ | 78,676 | $ | 69,143 | $ | 58,368 | $ | 56,236 | $ | 53,128 | ||||||||
| Interest on investment securities | 8,515 | 9,284 | 7,193 | 7,127 | 7,285 | |||||||||||||
| Interest on federal funds sold & other deposits | 2,736 | 2,011 | 569 | 308 | 296 | |||||||||||||
| Total interest income | 89,927 | 80,438 | 66,130 | 63,671 | 60,709 | |||||||||||||
| Interest expense: | ||||||||||||||||||
| Interest on deposits | 25,900 | 22,047 | 16,580 | 12,767 | 9,227 | |||||||||||||
| Interest on securities sold under agreements to repurchase | 1,754 | 1,625 | 1,723 | 1,463 | 1,163 | |||||||||||||
| Interest on other borrowings | 3,073 | 4,749 | 4,084 | 4,883 | 3,345 | |||||||||||||
| Interest on jr. subordinated debentures | 545 | 545 | 390 | 379 | 315 | |||||||||||||
| Interest on subordinated debt | 1,193 | 1,029 | 986 | 988 | 987 | |||||||||||||
| Total interest expense | 32,465 | 29,995 | 23,763 | 20,480 | 15,037 | |||||||||||||
| Net interest income | 57,462 | 50,443 | 42,367 | 43,191 | 45,672 | |||||||||||||
| Provision for credit losses | 552 | 5,911 | 458 | (817 | ) | 805 | ||||||||||||
| Net interest income after provision for loan | 56,910 | 44,532 | 41,909 | 44,008 | 44,867 | |||||||||||||
| Non-interest income: | ||||||||||||||||||
| Wealth management revenues | 4,998 | 4,940 | 5,341 | 5,514 | 6,201 | |||||||||||||
| Insurance commissions | 5,398 | 5,199 | 5,737 | 8,480 | 4,719 | |||||||||||||
| Service charges | 3,298 | 2,994 | 2,386 | 2,203 | 2,375 | |||||||||||||
| Securities gains, net | 46 | 3,389 | (6 | ) | (46 | ) | (48 | ) | ||||||||||
| Mortgage banking revenues | 954 | 846 | 332 | 150 | 65 | |||||||||||||
| ATM/debit card revenue | 4,233 | 3,766 | 3,265 | 3,083 | 3,209 | |||||||||||||
| Other | 2,841 | 1,919 | 2,431 | 3,095 | 1,686 | |||||||||||||
| Total non-interest income | 21,768 | 23,053 | 19,486 | 22,479 | 18,207 | |||||||||||||
| Non-interest expense: | ||||||||||||||||||
| Salaries and employee benefits | 29,925 | 25,422 | 23,544 | 26,071 | 23,610 | |||||||||||||
| Net occupancy and equipment expense | 7,977 | 6,929 | 6,035 | 6,005 | 6,126 | |||||||||||||
| Net other real estate owned (income) expense | 800 | 902 | 27 | 133 | 87 | |||||||||||||
| FDIC insurance | 1,015 | 785 | 1,076 | 463 | 464 | |||||||||||||
| Amortization of intangible assets | 3,560 | 2,568 | 1,477 | 1,522 | 1,537 | |||||||||||||
| Stationary and supplies | 404 | 335 | 315 | 292 | 298 | |||||||||||||
| Legal and professional expense | 2,065 | 1,844 | 1,780 | 1,690 | 1,607 | |||||||||||||
| ATM/debit card expense | 1,332 | 1,751 | 1,016 | 1,223 | 1,309 | |||||||||||||
| Marketing and donations | 679 | 764 | 908 | 654 | 681 | |||||||||||||
| Other | 9,268 | 5,796 | 3,864 | 3,524 | 3,653 | |||||||||||||
| Total non-interest expense | 57,025 | 47,096 | 40,042 | 41,577 | 39,372 | |||||||||||||
| Income before income taxes | 21,653 | 20,489 | 21,353 | 24,910 | 23,702 | |||||||||||||
| Income taxes | 3,582 | 5,372 | 4,786 | 5,730 | 3,063 | |||||||||||||
| Net income | $ | 18,071 | $ | 15,117 | $ | 16,567 | $ | 19,180 | $ | 20,639 | ||||||||
| Per Share Information | ||||||||||||||||||
| Basic earnings per common share | $ | 0.76 | $ | 0.68 | $ | 0.81 | $ | 0.94 | $ | 1.01 | ||||||||
| Diluted earnings per common share | 0.76 | 0.68 | 0.80 | 0.93 | 1.01 | |||||||||||||
| Weighted average shares outstanding | 23,837,853 | 22,220,438 | 20,528,717 | 20,492,254 | 20,461,046 | |||||||||||||
| Diluted weighted average shares outstanding | 23,921,758 | 22,319,334 | 20,628,239 | 20,563,972 | 20,535,220 | |||||||||||||
| 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, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||
| Loan Portfolio | ||||||||||||||||||||
| Construction and land development | $ | 205,077 | $ | 189,206 | $ | 151,574 | $ | 159,157 | $ | 144,264 | ||||||||||
| Farm real estate loans | 391,132 | 399,834 | 392,220 | 401,957 | 410,327 | |||||||||||||||
| 1-4 Family residential properties | 542,469 | 531,699 | 418,932 | 424,545 | 440,180 | |||||||||||||||
| Multifamily residential properties | 319,129 | 327,067 | 303,482 | 301,808 | 294,346 | |||||||||||||||
| Commercial real estate | 2,384,704 | 2,392,834 | 2,056,529 | 2,003,647 | 2,030,011 | |||||||||||||||
| Loans secured by real estate | 3,842,511 | 3,840,640 | 3,322,737 | 3,291,114 | 3,319,128 | |||||||||||||||
| Agricultural operating loans | 196,272 | 179,447 | 148,318 | 146,847 | 166,838 | |||||||||||||||
| Commercial and industrial loans | 1,266,159 | 1,242,653 | 1,094,522 | 1,078,021 | 1,082,960 | |||||||||||||||
| Consumer loans | 91,014 | 99,542 | 80,241 | 88,430 | 97,775 | |||||||||||||||
| All other loans | 184,609 | 177,783 | 167,598 | 156,219 | 159,511 | |||||||||||||||
| Total loans | 5,580,565 | 5,540,065 | 4,813,416 | 4,760,631 | 4,826,212 | |||||||||||||||
| Deposit Portfolio | ||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,398,234 | $ | 1,389,022 | $ | 1,171,047 | $ | 1,262,181 | $ | 1,256,514 | ||||||||||
| Interest bearing demand deposits | 1,837,296 | 1,940,162 | 1,477,765 | 1,419,791 | 1,389,283 | |||||||||||||||
| Savings deposits | 710,586 | 734,377 | 602,523 | 639,691 | 636,699 | |||||||||||||||
| Money Market | 1,129,950 | 1,161,957 | 923,259 | 878,452 | 1,267,726 | |||||||||||||||
| Time deposits | 1,047,593 | 1,120,806 | 1,044,991 | 830,663 | 706,779 | |||||||||||||||
| Total deposits | 6,123,659 | 6,346,324 | 5,219,585 | 5,030,778 | 5,257,001 | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Non-performing loans | $ | 20,128 | $ | 21,269 | $ | 18,637 | $ | 15,163 | $ | 19,170 | ||||||||||
| Non-performing assets | 21,292 | 23,565 | 22,615 | 19,225 | 23,539 | |||||||||||||||
| Net charge-offs (recoveries) | 118 | 181 | (38 | ) | 53 | 489 | ||||||||||||||
| Allowance for credit losses to non-performing loans | 341.19 | % | 320.85 | % | 315.07 | % | 383.98 | % | 308.26 | % | ||||||||||
| Allowance for credit losses to total loans outstanding | 1.23 | % | 1.23 | % | 1.22 | % | 1.22 | % | 1.22 | % | ||||||||||
| Nonperforming loans to total loans | 0.36 | % | 0.38 | % | 0.39 | % | 0.32 | % | 0.40 | % | ||||||||||
| Nonperforming assets to total assets | 0.28 | % | 0.30 | % | 0.34 | % | 0.29 | % | 0.35 | % | ||||||||||
| Special Mention loans | 74,050 | 73,732 | 40,687 | 47,022 | 39,853 | |||||||||||||||
| Substandard and Doubtful loans | 28,945 | 30,575 | 28,255 | 29,931 | 34,352 | |||||||||||||||
| Common Share Data | ||||||||||||||||||||
| Common shares outstanding | 23,827,137 | 23,830,038 | 20,528,192 | 20,519,717 | 20,452,376 | |||||||||||||||
| Book value per common share | $ | 33.29 | $ | 30.97 | $ | 32.18 | $ | 32.26 | $ | 30.96 | ||||||||||
| Tangible book value per common share (1) | 22.20 | 19.73 | 23.48 | 24.05 | 22.65 | |||||||||||||||
| Tangible book value per common share excluding other comprehensive income at period end (1) | 27.93 | 27.24 | 30.87 | 30.77 | 30.06 | |||||||||||||||
| Market price of stock | 34.66 | 26.56 | 24.14 | 27.22 | 32.08 | |||||||||||||||
| Key Performance Ratios and Metrics | ||||||||||||||||||||
| End of period earning assets | $ | 6,780,160 | $ | 7,007,282 | $ | 6,023,553 | $ | 5,995,674 | $ | 6,063,953 | ||||||||||
| Average earning assets | 6,948,309 | 6,593,781 | 6,049,626 | 6,052,264 | 6,000,106 | |||||||||||||||
| Average rate on average earning assets (tax equivalent) | 5.18 | % | 4.89 | % | 4.43 | % | 4.32 | % | 4.07 | % | ||||||||||
| Average rate on cost of funds | 1.85 | % | 1.83 | % | 1.59 | % | 1.38 | % | 1.00 | % | ||||||||||
| Net interest margin (tax equivalent) (1) | 3.33 | % | 3.06 | % | 2.84 | % | 2.94 | % | 3.07 | % | ||||||||||
| Return on average assets | 0.93 | % | 0.90 | % | 0.99 | % | 1.15 | % | 1.24 | % | ||||||||||
| Adjusted return on average assets (1) | 1.16 | % | 0.94 | % | 1.03 | % | 1.18 | % | 1.25 | % | ||||||||||
| Return on average common equity | 9.76 | % | 8.70 | % | 10.07 | % | 12.11 | % | 13.51 | % | ||||||||||
| Adjusted return on average common equity (1) | 12.11 | % | 9.82 | % | 10.42 | % | 11.92 | % | 13.60 | % | ||||||||||
| Efficiency ratio (tax equivalent) (1) | 58.91 | % | 58.60 | % | 60.37 | % | 59.01 | % | 58.07 | % | ||||||||||
| Full-time equivalent employees | 1,187 | 1,224 | 995 | 988 | 1,043 | |||||||||||||||
| 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 December 31, 2023 | ||||||||||
| QTD Average | Average | |||||||||
| Balance | Interest | Rate | ||||||||
| INTEREST EARNING ASSETS | ||||||||||
| Interest bearing deposits | $ | 186,849 | $ | 2,560 | 5.44 | % | ||||
| Federal funds sold | 8,842 | 122 | 5.47 | % | ||||||
| Certificates of deposits investments | 1,630 | 54 | 13.14 | % | ||||||
| Investment Securities: | ||||||||||
| Taxable (total less municipals) | 946,620 | 6,522 | 2.76 | % | ||||||
| Tax-exempt (Municipals) | 259,662 | 2,524 | 3.89 | % | ||||||
| Loans (net of unearned income) | 5,544,706 | 78,938 | 5.65 | % | ||||||
| Total interest earning assets | 6,948,309 | 90,720 | 5.18 | % | ||||||
| NONEARNING ASSETS | ||||||||||
| Cash and due from banks | 137,282 | |||||||||
| Premises and equipment | 101,641 | |||||||||
| Other nonearning assets | 618,063 | |||||||||
| Allowance for loan losses | (68,584 | ) | ||||||||
| Total assets | $ | 7,736,711 | ||||||||
| INTEREST BEARING LIABILITIES | ||||||||||
| Demand deposits | $ | 2,999,731 | $ | 16,077 | 2.13 | % | ||||
| Savings deposits | 724,347 | 190 | 0.10 | % | ||||||
| Time deposits | 1,074,569 | 9,633 | 3.56 | % | ||||||
| Total interest bearing deposits | 4,798,647 | 25,900 | 2.14 | % | ||||||
| Repurchase agreements | 230,977 | 1,754 | 3.01 | % | ||||||
| FHLB advances | 336,939 | 3,060 | 3.60 | % | ||||||
| Federal funds purchased | - | 1 | 0.00 | % | ||||||
| Subordinated debt | 106,684 | 1,193 | 4.44 | % | ||||||
| Jr. subordinated debentures | 24,029 | 545 | 9.00 | % | ||||||
| Other debt | - | 12 | 0.00 | % | ||||||
| Total borrowings | 698,629 | 6,565 | 3.73 | % | ||||||
| Total interest bearing liabilities | 5,497,276 | 32,465 | 2.34 | % | ||||||
| NONINTEREST BEARING LIABILITIES | ||||||||||
| Demand deposits | 1,463,572 | Average cost of funds | 1.85 | % | ||||||
| Other liabilities | 35,248 | |||||||||
| Stockholders' equity | 740,615 | |||||||||
| Total liabilities & stockholders' equity | $ | 7,736,711 | ||||||||
| Net Interest Earnings / Spread | $ | 58,255 | 2.84 | % | ||||||
| Impact of Non-Interest Bearing Funds | 0.49 | % | ||||||||
| Tax effected yield on interest earning assets | 3.33 | % | ||||||||
| 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, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||
| Net interest income as reported | $ | 57,462 | $ | 50,443 | $ | 42,367 | $ | 43,191 | $ | 45,672 | ||||||||||
| Net interest income, (tax equivalent) | 58,255 | 51,212 | 43,109 | 43,947 | 46,464 | |||||||||||||||
| Average earning assets | 6,948,309 | 6,593,781 | 6,049,626 | 6,052,264 | 6,000,106 | |||||||||||||||
| Net interest margin (tax equivalent) | 3.33 | % | 3.06 | % | 2.84 | % | 2.94 | % | 3.07 | % | ||||||||||
| Common stockholder's equity | $ | 793,204 | $ | 737,948 | $ | 660,687 | $ | 661,865 | $ | 633,155 | ||||||||||
| Goodwill and intangibles, net | 264,231 | 267,793 | 178,615 | 168,373 | 169,897 | |||||||||||||||
| Common shares outstanding | 23,827 | 23,830 | 20,528 | 20,520 | 20,452 | |||||||||||||||
| Tangible Book Value per common share | $ | 22.20 | $ | 19.73 | $ | 23.48 | $ | 24.05 | $ | 22.65 | ||||||||||
| Accumulated other comprehensive loss (AOCI) | (136,427 | ) | (178,903 | ) | (151,566 | ) | (137,901 | ) | (151,507 | ) | ||||||||||
| Adjusted tangible book value per common share | $ | 27.93 | $ | 27.24 | $ | 30.87 | $ | 30.77 | $ | 30.06 | ||||||||||
| 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, | ||||||||||||||||
| 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||
| Adjusted earnings Reconciliation | ||||||||||||||||||||
| Net Income - GAAP | $ | 18,071 | $ | 15,117 | $ | 16,567 | $ | 19,180 | $ | 20,639 | ||||||||||
| 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 | 4,385 | 1,653 | 589 | 135 | 131 | |||||||||||||||
| Total non-recurring adjustments (non-GAAP) | $ | 4,348 | $ | 1,962 | $ | 589 | $ | 551 | $ | 131 | ||||||||||
| Adjusted earnings - non-GAAP | $ | 22,419 | $ | 17,079 | $ | 17,156 | $ | 19,731 | $ | 20,770 | ||||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 0.94 | $ | 0.77 | $ | 0.83 | $ | 0.96 | $ | 1.01 | ||||||||||
| Adjusted return on average assets - non-GAAP | 1.16 | % | 0.94 | % | 1.03 | % | 1.18 | % | 1.25 | % | ||||||||||
| Adjusted return on average common equity - non-GAAP | 12.11 | % | 9.82 | % | 10.42 | % | 11.92 | % | 13.60 | % | ||||||||||
| Efficiency Ratio Reconciliation | ||||||||||||||||||||
| Noninterest expense - GAAP | $ | 57,025 | $ | 47,096 | $ | 40,042 | $ | 41,577 | $ | 39,372 | ||||||||||
| Other real estate owned property income (expense) | (800 | ) | (902 | ) | (27 | ) | (133 | ) | (87 | ) | ||||||||||
| Amortization of intangibles | (3,560 | ) | (2,568 | ) | (1,477 | ) | (1,522 | ) | (1,537 | ) | ||||||||||
| Nonrecurring severance expense | - | - | - | (527 | ) | - | ||||||||||||||
| Integration and acquisition expenses | (5,550 | ) | (2,093 | ) | (745 | ) | (171 | ) | (166 | ) | ||||||||||
| Adjusted noninterest expense (non-GAAP) | $ | 47,115 | $ | 41,533 | $ | 37,793 | $ | 39,224 | $ | 37,582 | ||||||||||
| Net interest income -GAAP | $ | 57,462 | $ | 50,443 | $ | 42,367 | $ | 43,192 | $ | 45,672 | ||||||||||
| Effect of tax-exempt income (1) | 793 | 769 | 742 | 755 | 792 | |||||||||||||||
| Adjusted net interest income (non-GAAP) | $ | 58,255 | $ | 51,212 | $ | 43,109 | $ | 43,947 | $ | 46,464 | ||||||||||
| Noninterest income - GAAP | $ | 21,768 | $ | 23,053 | $ | 19,486 | $ | 22,479 | $ | 18,207 | ||||||||||
| Net (gain)/loss on securities sales | (46 | ) | (3,389 | ) | 6 | 46 | 48 | |||||||||||||
| Adjusted noninterest income (non-GAAP) | $ | 21,722 | $ | 19,664 | $ | 19,492 | $ | 22,525 | $ | 18,255 | ||||||||||
| Adjusted total revenue (non-GAAP) | $ | 79,977 | $ | 70,876 | $ | 62,601 | $ | 66,472 | $ | 64,719 | ||||||||||
| Efficiency ratio (non-GAAP) | 58.91 | % | 58.60 | % | 60.37 | % | 59.01 | % | 58.07 | % | ||||||||||
| (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. | ||||||||||||||||||||
