MATTOON, Ill., Oct. 31, 2024 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ:FMBH) (the "Company") today announced its financial results for the quarter ended September 30, 2024.
Highlights
- Net income of $19.5 million, or $0.81 diluted EPS
- Adjusted net income (non-GAAP) of $19.8 million, or $0.83 diluted EPS
- Loan growth of 1% helped drive second consecutive quarter of net interest income expansion
- 16.6% year-over-year growth for wealth management and insurance combined
- Tangible book value per share increased 6.6% in the quarter
- Board of Directors declares regular quarterly dividend of $0.24 per share
"We are pleased to deliver another solid and consistent quarter of financial results," said Joe Dively, Chairman and Chief Executive Officer. "Healthy growth in loans, core deposits, and noninterest income, along with the sustainable strength in our asset quality, helped fuel our operating results for the period. We strengthened our balance sheet with a reduction in borrowings and subordinated debt while increasing tangible book value per share by nearly 7% in the quarter and 26% from last September. We continue to advance on our strategic initiatives to deliver exceptional value to our customers, communities, and shareholders," Dively concluded.
Net Interest Income
Net interest income for the third quarter of 2024 increased by $0.8 million, or 1.4% compared to the second quarter of 2024. Interest income increased by $2.5 million primarily driven by loan growth and repricing of maturing loans, as well as a remix of lower yielding securities into cash. Interest expense increased by $1.7 million primarily in higher rates on money market accounts and repricing of CD's. The increase was primarily early in the quarter and stabilized in the second half of the period. In addition, the Company paid off $55.0 million of brokered CD's that matured at the end of September and carried an average rate of 5.3%.
In comparison to the third quarter of 2023, net interest income increased $7.1 million, or 14.1%. Interest income increased by $10.7 million and interest expense increased $3.6 million. The increases were partially driven by the addition of Blackhawk, which closed in the middle of the third quarter last year. In addition, higher rates on new loan originations and refinancing have outpaced higher interest costs.
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.35% for the third quarter of 2024, which was a decline of one basis point compared to the prior quarter. Earning asset yields increased by eight basis points, while the average cost of funds increased by nine basis points. Accretion income for the quarter was $3.6 million, which was a decrease of $0.1 million from the prior quarter.
In comparison to the third quarter of last year, the net interest margin increased 29 basis points, with an average earnings asset increase of 46 basis points versus the average cost of funds increase of 17 basis points. The increases were due to higher rates on new and renewed loans and deposits.
Loan Portfolio
Total loans ended the quarter at $5.62 billion, representing an increase of $54.0 million, or 1.0% compared to the prior quarter. Loan growth was well diversified primarily between commercial real estate, agricultural operating, and commercial and industrial. The largest decline was in consumer loans.
Asset Quality
The Company's asset quality metrics were solid again in the third quarter reflecting the strength of the credit culture. The allowance for credit losses ("ACL") increased by $0.5 million to $68.8 million with an ending ACL to total loans ratio of 1.22%. Provision expense was recorded in the amount of $1.3 million and the Company had net charge offs of $0.8 million in the period. Also, at the end of the third quarter, the ratio of non-performing loans to total loans was 0.32%, and the ACL to non-performing loans was 377%. The ratio of non-performing assets to total assets was 0.27% at quarter end. Non-performing loans decreased by $0.8 million in the period to $18.2 million. Special mention loans increased $7.4 million in the quarter to $38.2 million. Substandard loans increased $1.4 million in the period to $29.0 million.
Deposits and Borrowings
Total deposits ended the quarter at $6.09 billion, which represented a decrease of $26.9 million, or 0.04% from the prior quarter. The decrease included $55.0 million of brokered CD's that had an average rate of 5.30% and matured at the end of the quarter. Excluding these brokered CD's, deposits increased in the period primarily with higher CD's more than offsetting a decline in interest bearing demand deposits. In addition, the Company reduced its FHLB advances by $25.0 million in the quarter. In comparison to the prior quarter, the average cost of funds increased in the third quarter of 2024 to 2.00%.
During the quarter, the Company repurchased and cancelled $16.0 million of its outstanding 3.95% fixed-to-floating rate subordinated notes due 2030 ("Notes"). The Notes were purchased at a discount in the open market and generated a gain, net of the discount and fees, of $0.4 million.
Noninterest Income
Noninterest income for the third quarter of 2024 was $23.0 million compared to $22.4 million in the prior quarter. Wealth management revenues increased $0.4 million primarily on higher brokerage and trust fees and ended the period with $6.4 billion in assets under management. Ag services revenue totaled $1.8 million in the quarter most of which was farm management income versus land sales. Insurance revenues declined $0.5 million compared to the prior quarter due to regular seasonality in the business. Other income increased $0.9 million in the period and included a net gain on the repurchase of a portion of the Company's subordinated Notes.
In comparison to the third quarter of 2023, noninterest income increased $3.6 million when excluding the impacts from securities gains and losses. The increase was primarily driven by the addition of Blackhawk and growth in insurance revenues.
Noninterest Expenses
Noninterest expense for the third quarter of 2024 totaled $53.9 million compared to $51.4 million in the prior quarter. The increase was partially driven by the acquisition of Mid Rivers Insurance Group, which closed on July 9th. In addition, expenses were higher in salaries and benefits driven by higher incentive compensation and medical insurance expenses. Debit card expense increased $0.6 million due to higher usage and the annual service provider incentive credit in the second quarter. Net occupancy and equipment increased by $0.5 million on higher software license costs. The current quarter included $0.2 million in acquisition and integration costs.
In comparison to the third quarter of 2023, noninterest expenses increased $6.8 million. The increase was primarily driven by the addition of Blackhawk and organic growth, including the impacts from higher inflation, partially offset with lower acquisition and integration costs.
The Company's efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the third quarter 2024 was 61.3% compared to 59.6% in the prior quarter and 58.6% for the same period last year.
Capital Levels and Dividend
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 | 15.24% |
| Tier 1 capital to risk-weighted assets | 12.70% |
| Common equity tier 1 capital to risk-weighted assets | 12.29% |
| Leverage ratio | 10.14% |
The Company's Board of Directors approved its regular quarterly dividend of $0.24 payable on November 29, 2024 for shareholders of record on November 14, 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 $7.6 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 pandemics 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]
| FIRST MID BANCSHARES, INC. | |||||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||||
| (In thousands, unaudited) | |||||||||||||
| As of | |||||||||||||
| September 30, | December 31, | September 30, | |||||||||||
| 2024 | 2023 | 2023 | |||||||||||
| Assets | |||||||||||||
| Cash and cash equivalents | $ | 164,191 | $ | 143,064 | $ | 383,237 | |||||||
| Investment securities | 1,125,774 | 1,179,402 | 1,226,746 | ||||||||||
| Loans (including loans held for sale) | 5,614,591 | 5,580,565 | 5,540,065 | ||||||||||
| Less allowance for credit losses | (68,774 | ) | (68,675 | ) | (68,241 | ) | |||||||
| Net loans | 5,545,817 | 5,511,890 | 5,471,824 | ||||||||||
| Premises and equipment, net | 101,464 | 101,396 | 102,004 | ||||||||||
| Goodwill and intangibles, net | 265,139 | 264,231 | 267,793 | ||||||||||
| Bank Owned Life Insurance | 169,635 | 166,125 | 165,022 | ||||||||||
| Other assets | 190,469 | 220,686 | 238,668 | ||||||||||
| Total assets | $ | 7,562,489 | $ | 7,586,794 | $ | 7,855,294 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||||
| Deposits: | |||||||||||||
| Non-interest bearing | $ | 1,387,290 | $ | 1,398,234 | $ | 1,389,022 | |||||||
| Interest bearing | 4,701,544 | 4,725,425 | 4,957,302 | ||||||||||
| Total deposits | 6,088,834 | 6,123,659 | 6,346,324 | ||||||||||
| Repurchase agreements with customers | 204,343 | 213,721 | 214,978 | ||||||||||
| Other borrowings | 238,712 | 263,787 | 364,953 | ||||||||||
| Junior subordinated debentures | 24,224 | 24,058 | 24,003 | ||||||||||
| Subordinated debt | 87,373 | 106,755 | 106,648 | ||||||||||
| Other liabilities | 60,506 | 61,610 | 60,440 | ||||||||||
| Total liabilities | 6,703,992 | 6,793,590 | 7,117,346 | ||||||||||
| Total stockholders' equity | 858,497 | 793,204 | 737,948 | ||||||||||
| Total liabilities and stockholders' equity | $ | 7,562,489 | $ | 7,586,794 | $ | 7,855,294 | |||||||
| FIRST MID BANCSHARES, INC. | |||||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||||
| (In thousands, except per share data, unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||
| Interest income: | |||||||||||||||||
| Interest and fees on loans | $ | 81,775 | $ | 69,143 | $ | 239,158 | $ | 183,747 | |||||||||
| Interest on investment securities | 7,036 | 9,284 | 21,846 | 23,604 | |||||||||||||
| Interest on federal funds sold & other deposits | 2,371 | 2,011 | 6,533 | 2,888 | |||||||||||||
| Total interest income | 91,182 | 80,438 | 267,537 | 210,239 | |||||||||||||
| Interest expense: | |||||||||||||||||
| Interest on deposits | 28,341 | 22,047 | 80,775 | 51,394 | |||||||||||||
| Interest on securities sold under agreements to repurchase | 1,444 | 1,625 | 5,115 | 4,811 | |||||||||||||
| Interest on other borrowings | 2,195 | 4,749 | 6,757 | 13,716 | |||||||||||||
| Interest on jr. subordinated debentures | 567 | 545 | 1,646 | 1,314 | |||||||||||||
| Interest on subordinated debt | 1,092 | 1,029 | 3,466 | 3,003 | |||||||||||||
| Total interest expense | 33,639 | 29,995 | 97,759 | 74,238 | |||||||||||||
| Net interest income | 57,543 | 50,443 | 169,778 | 136,001 | |||||||||||||
| Provision for credit losses | 1,266 | 5,911 | 1,992 | 5,552 | |||||||||||||
| Net interest income after provision for loan | 56,277 | 44,532 | 167,786 | 130,449 | |||||||||||||
| Non-interest income: | |||||||||||||||||
| Wealth management revenues | 5,816 | 4,940 | 16,543 | 15,795 | |||||||||||||
| Insurance commissions | 6,003 | 5,199 | 21,747 | 19,416 | |||||||||||||
| Service charges | 3,121 | 2,994 | 9,304 | 7,583 | |||||||||||||
| Net securities gains/(losses) | (277 | ) | 3,389 | (433 | ) | 3,337 | |||||||||||
| Mortgage banking revenues | 1,109 | 846 | 2,853 | 1,328 | |||||||||||||
| ATM/debit card revenue | 4,267 | 3,766 | 12,603 | 10,114 | |||||||||||||
| Other | 2,984 | 1,919 | 7,306 | 7,445 | |||||||||||||
| Total non-interest income | 23,023 | 23,053 | 69,923 | 65,018 | |||||||||||||
| Non-interest expense: | |||||||||||||||||
| Salaries and employee benefits | 31,565 | 25,422 | 92,177 | 75,037 | |||||||||||||
| Net occupancy and equipment expense | 8,055 | 6,929 | 23,122 | 18,969 | |||||||||||||
| Net other real estate owned (income) expense | 107 | 902 | 171 | 1,062 | |||||||||||||
| FDIC insurance | 829 | 785 | 2,600 | 2,324 | |||||||||||||
| Amortization of intangible assets | 3,405 | 2,568 | 10,242 | 5,567 | |||||||||||||
| Stationary and supplies | 482 | 335 | 1,243 | 942 | |||||||||||||
| Legal and professional expense | 2,573 | 1,844 | 7,558 | 5,314 | |||||||||||||
| ATM/debit card expense | 1,869 | 1,751 | 4,341 | 3,990 | |||||||||||||
| Marketing and donations | 836 | 764 | 2,512 | 2,326 | |||||||||||||
| Other | 4,212 | 5,796 | 14,720 | 13,184 | |||||||||||||
| Total non-interest expense | 53,933 | 47,096 | 158,686 | 128,715 | |||||||||||||
| Income before income taxes | 25,367 | 20,489 | 79,023 | 66,752 | |||||||||||||
| Income taxes | 5,885 | 5,372 | 19,293 | 15,888 | |||||||||||||
| Net income | $ | 19,482 | $ | 15,117 | $ | 59,730 | $ | 50,864 | |||||||||
| Per Share Information | |||||||||||||||||
| Basic earnings per common share | $ | 0.81 | $ | 0.81 | $ | 2.50 | $ | 1.74 | |||||||||
| Diluted earnings per common share | 0.81 | 0.80 | 2.49 | 1.74 | |||||||||||||
| Weighted average shares outstanding | 23,905,099 | 20,528,717 | 23,891,430 | 20,510,585 | |||||||||||||
| Diluted weighted average shares outstanding | 24,006,647 | 20,628,239 | 23,988,478 | 20,596,283 | |||||||||||||
| FIRST MID BANCSHARES, INC. | ||||||||||||||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||||||||||||
| (In thousands, except per share data, unaudited) | ||||||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||
| Interest and fees on loans | $ | 81,775 | $ | 79,560 | $ | 77,823 | $ | 78,676 | $ | 69,143 | ||||||||||||||
| Interest on investment securities | 7,036 | 7,405 | 7,405 | 8,515 | 9,284 | |||||||||||||||||||
| Interest on federal funds sold & other deposits | 2,371 | 1,718 | 2,444 | 2,736 | 2,011 | |||||||||||||||||||
| Total interest income | 91,182 | 88,683 | 87,672 | 89,927 | 80,438 | |||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||
| Interest on deposits | 28,341 | 26,338 | 26,096 | 25,900 | 22,047 | |||||||||||||||||||
| Interest on securities sold under agreements to repurchase | 1,444 | 1,615 | 2,056 | 1,754 | 1,625 | |||||||||||||||||||
| Interest on other borrowings | 2,195 | 2,248 | 2,314 | 3,073 | 4,749 | |||||||||||||||||||
| Interest on jr. subordinated debentures | 567 | 537 | 542 | 545 | 545 | |||||||||||||||||||
| Interest on subordinated debt | 1,092 | 1,180 | 1,194 | 1,193 | 1,029 | |||||||||||||||||||
| Total interest expense | 33,639 | 31,918 | 32,202 | 32,465 | 29,995 | |||||||||||||||||||
| Net interest income | 57,543 | 56,765 | 55,470 | 57,462 | 50,443 | |||||||||||||||||||
| Provision for credit losses | 1,266 | 1,083 | (357 | ) | 552 | 5,911 | ||||||||||||||||||
| Net interest income after provision for loan | 56,277 | 55,682 | 55,827 | 56,910 | 44,532 | |||||||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||
| Wealth management revenues | 5,816 | 5,405 | 5,322 | 4,998 | 4,940 | |||||||||||||||||||
| Insurance commissions | 6,003 | 6,531 | 9,213 | 5,398 | 5,199 | |||||||||||||||||||
| Service charges | 3,121 | 3,227 | 2,956 | 3,298 | 2,994 | |||||||||||||||||||
| Net securities gains/(losses) | (277 | ) | (156 | ) | 0 | 46 | 3,389 | |||||||||||||||||
| Mortgage banking revenues | 1,109 | 1,038 | 706 | 954 | 846 | |||||||||||||||||||
| ATM/debit card revenue | 4,267 | 4,281 | 4,055 | 4,233 | 3,766 | |||||||||||||||||||
| Other | 2,984 | 2,096 | 2,226 | 2,841 | 1,919 | |||||||||||||||||||
| Total non-interest income | 23,023 | 22,422 | 24,478 | 21,768 | 23,053 | |||||||||||||||||||
| Non-interest expense: | ||||||||||||||||||||||||
| Salaries and employee benefits | 31,565 | 30,164 | 30,448 | 29,925 | 25,422 | |||||||||||||||||||
| Net occupancy and equipment expense | 8,055 | 7,507 | 7,560 | 7,977 | 6,929 | |||||||||||||||||||
| Net other real estate owned (income) expense | 107 | 85 | (21 | ) | 800 | 902 | ||||||||||||||||||
| FDIC insurance | 829 | 902 | 869 | 1,015 | 785 | |||||||||||||||||||
| Amortization of intangible assets | 3,405 | 3,340 | 3,497 | 3,560 | 2,568 | |||||||||||||||||||
| Stationary and supplies | 482 | 370 | 391 | 404 | 335 | |||||||||||||||||||
| Legal and professional expense | 2,573 | 2,536 | 2,449 | 2,065 | 1,844 | |||||||||||||||||||
| ATM/debit card expense | 1,869 | 1,281 | 1,191 | 1,332 | 1,751 | |||||||||||||||||||
| Marketing and donations | 836 | 814 | 862 | 679 | 764 | |||||||||||||||||||
| Other | 4,212 | 4,392 | 6,116 | 9,268 | 5,796 | |||||||||||||||||||
| Total non-interest expense | 53,933 | 51,391 | 53,362 | 57,025 | 47,096 | |||||||||||||||||||
| Income before income taxes | 25,367 | 26,713 | 26,943 | 21,653 | 20,489 | |||||||||||||||||||
| Income taxes | 5,885 | 6,968 | 6,440 | 3,582 | 5,372 | |||||||||||||||||||
| Net income | $ | 19,482 | $ | 19,745 | $ | 20,503 | $ | 18,071 | $ | 15,117 | ||||||||||||||
| Per Share Information | ||||||||||||||||||||||||
| Basic earnings per common share | $ | 0.81 | $ | 0.83 | $ | 0.86 | $ | 0.76 | $ | 0.68 | ||||||||||||||
| Diluted earnings per common share | 0.81 | 0.82 | 0.86 | 0.76 | 0.68 | |||||||||||||||||||
| Weighted average shares outstanding | 23,905,099 | 23,896,210 | 23,872,731 | 23,837,853 | 22,220,438 | |||||||||||||||||||
| Diluted weighted average shares outstanding | 24,006,647 | 23,998,152 | 23,960,335 | 23,921,758 | 22,319,334 | |||||||||||||||||||
| FIRST MID BANCSHARES, INC. | ||||||||||||||||||||
| Consolidated Financial Highlights and Ratios | ||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| As of and for the Quarter Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
| Loan Portfolio | ||||||||||||||||||||
| Construction and land development | $ | 190,857 | $ | 195,389 | $ | 186,851 | $ | 205,077 | $ | 189,206 | ||||||||||
| Farm real estate loans | 384,620 | 387,015 | 388,941 | 391,132 | 399,834 | |||||||||||||||
| 1-4 Family residential properties | 505,342 | 507,517 | 518,641 | 542,469 | 531,699 | |||||||||||||||
| Multifamily residential properties | 338,167 | 334,446 | 312,758 | 319,129 | 327,067 | |||||||||||||||
| Commercial real estate | 2,440,120 | 2,406,955 | 2,396,092 | 2,384,704 | 2,392,834 | |||||||||||||||
| Loans secured by real estate | 3,859,106 | 3,831,322 | 3,803,283 | 3,842,511 | 3,840,640 | |||||||||||||||
| Agricultural operating loans | 233,414 | 213,997 | 213,217 | 196,272 | 179,447 | |||||||||||||||
| Commercial and industrial loans | 1,283,631 | 1,268,646 | 1,227,906 | 1,266,159 | 1,242,653 | |||||||||||||||
| Consumer loans | 63,222 | 70,841 | 79,569 | 91,014 | 99,542 | |||||||||||||||
| All other loans | 175,218 | 175,811 | 175,320 | 184,609 | 177,783 | |||||||||||||||
| Total loans | 5,614,591 | 5,560,617 | 5,499,295 | 5,580,565 | 5,540,065 | |||||||||||||||
| Deposit Portfolio | ||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,387,290 | $ | 1,393,336 | $ | 1,448,299 | $ | 1,398,234 | $ | 1,389,022 | ||||||||||
| Interest bearing demand deposits | 1,834,123 | 1,909,993 | 1,974,857 | 1,837,296 | 1,940,162 | |||||||||||||||
| Savings deposits | 648,582 | 673,381 | 704,777 | 710,586 | 734,377 | |||||||||||||||
| Money Market | 1,183,594 | 1,127,699 | 1,107,177 | 1,129,950 | 1,161,957 | |||||||||||||||
| Time deposits | 1,035,245 | 1,011,370 | 1,007,826 | 1,047,593 | 1,120,806 | |||||||||||||||
| Total deposits | 6,088,834 | 6,115,779 | 6,242,936 | 6,123,659 | 6,346,324 | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Non-performing loans | $ | 18,242 | $ | 19,079 | $ | 20,064 | $ | 20,128 | $ | 21,269 | ||||||||||
| Non-performing assets | 20,076 | 20,557 | 21,471 | 21,292 | 23,565 | |||||||||||||||
| Net charge-offs (recoveries) | 804 | 708 | 381 | 118 | 181 | |||||||||||||||
| Allowance for credit losses to non-performing loans | 377.01 | % | 358.05 | % | 338.60 | % | 341.19 | % | 320.85 | % | ||||||||||
| Allowance for credit losses to total loans outstanding | 1.22 | % | 1.23 | % | 1.24 | % | 1.23 | % | 1.23 | % | ||||||||||
| Nonperforming loans to total loans | 0.32 | % | 0.34 | % | 0.36 | % | 0.36 | % | 0.38 | % | ||||||||||
| Nonperforming assets to total assets | 0.27 | % | 0.27 | % | 0.28 | % | 0.28 | % | 0.30 | % | ||||||||||
| Special Mention loans | 38,151 | 30,767 | 65,693 | 74,050 | 73,732 | |||||||||||||||
| Substandard and Doubtful loans | 29,037 | 27,594 | 29,296 | 28,945 | 30,575 | |||||||||||||||
| Common Share Data | ||||||||||||||||||||
| Common shares outstanding | 23,904,051 | 23,895,868 | 23,888,929 | 23,827,137 | 23,830,038 | |||||||||||||||
| Book value per common share | $ | 35.91 | $ | 34.05 | $ | 33.40 | $ | 33.29 | $ | 30.97 | ||||||||||
| Tangible book value per common share (1) | 24.82 | 23.28 | 22.49 | 22.20 | 19.73 | |||||||||||||||
| Tangible book value per common share excluding other comprehensive income at period end (1) | 29.70 | 29.43 | 28.67 | 27.93 | 27.24 | |||||||||||||||
| Market price of stock | 38.91 | 32.88 | 32.68 | 34.66 | 26.56 | |||||||||||||||
| Key Performance Ratios and Metrics | ||||||||||||||||||||
| End of period earning assets | $ | 6,786,458 | $ | 6,812,574 | $ | 6,923,742 | $ | 6,780,160 | $ | 7,007,282 | ||||||||||
| Average earning assets | 6,857,070 | 6,815,932 | 6,884,855 | 6,948,309 | 6,593,781 | |||||||||||||||
| Average rate on average earning assets (tax equivalent) | 5.35 | % | 5.27 | % | 5.16 | % | 5.18 | % | 4.89 | % | ||||||||||
| Average rate on cost of funds | 2.00 | % | 1.91 | % | 1.91 | % | 1.85 | % | 1.83 | % | ||||||||||
| Net interest margin (tax equivalent) (1) | 3.35 | % | 3.36 | % | 3.25 | % | 3.33 | % | 3.06 | % | ||||||||||
| Return on average assets | 1.03 | % | 1.05 | % | 1.07 | % | 0.93 | % | 0.90 | % | ||||||||||
| Adjusted return on average assets (1) | 1.05 | % | 1.07 | % | 1.17 | % | 1.16 | % | 0.94 | % | ||||||||||
| Return on average common equity | 9.40 | % | 9.92 | % | 10.37 | % | 9.76 | % | 8.70 | % | ||||||||||
| Adjusted return on average common equity (1) | 9.58 | % | 10.11 | % | 11.28 | % | 12.11 | % | 9.82 | % | ||||||||||
| Efficiency ratio (tax equivalent) (1) | 61.33 | % | 59.61 | % | 59.09 | % | 58.91 | % | 58.60 | % | ||||||||||
| Full-time equivalent employees | 1,207 | 1,185 | 1,188 | 1,187 | 1,224 | |||||||||||||||
| 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 September 30, 2024 | ||||||||||
| QTD Average | Average | |||||||||
| Balance | Interest | Rate | ||||||||
| INTEREST EARNING ASSETS | ||||||||||
| Interest bearing deposits | $ | 160,050 | $ | 2,304 | 5.73 | % | ||||
| Federal funds sold | 26 | 28 | 428.43 | % | ||||||
| Certificates of deposits investments | 3,415 | 39 | 4.54 | % | ||||||
| Investment Securities: | ||||||||||
| Taxable (total less municipals) | 873,865 | 5,241 | 2.40 | % | ||||||
| Tax-exempt (Municipals) | 273,799 | 2,272 | 3.32 | % | ||||||
| Loans (net of unearned income) | 5,545,915 | 82,382 | 5.91 | % | ||||||
| Total interest earning assets | 6,857,070 | 92,266 | 5.35 | % | ||||||
| NONEARNING ASSETS | ||||||||||
| Cash and due from banks | 98,906 | |||||||||
| Premises and equipment | 101,576 | |||||||||
| Other nonearning assets | 594,609 | |||||||||
| Allowance for loan losses | (68,646 | ) | ||||||||
| Total assets | $ | 7,583,515 | ||||||||
| INTEREST BEARING LIABILITIES | ||||||||||
| Demand deposits | $ | 2,999,374 | $ | 17,563 | 2.33 | % | ||||
| Savings deposits | 663,494 | 265 | 0.16 | % | ||||||
| Time deposits | 1,065,176 | 10,513 | 3.93 | % | ||||||
| Total interest bearing deposits | 4,728,044 | 28,341 | 2.38 | % | ||||||
| Repurchase agreements | 202,973 | 1,444 | 2.83 | % | ||||||
| FHLB advances | 238,723 | 2,194 | 3.66 | % | ||||||
| Federal funds purchased | - | 1 | 0.00 | % | ||||||
| Subordinated debt | 97,177 | 1,092 | 4.47 | % | ||||||
| Jr. subordinated debentures | 24,195 | 567 | 9.32 | % | ||||||
| Other debt | - | - | 0.00 | % | ||||||
| Total borrowings | 563,068 | 5,298 | 3.74 | % | ||||||
| Total interest bearing liabilities | 5,291,112 | 33,639 | 2.53 | % | ||||||
| NONINTEREST BEARING LIABILITIES | ||||||||||
| Demand deposits | 1,415,861 | Average cost of funds | 2.00 | % | ||||||
| Other liabilities | 47,848 | |||||||||
| Stockholders' equity | 828,694 | |||||||||
| Total liabilities & stockholders' equity | $ | 7,583,515 | ||||||||
| Net Interest Earnings / Spread | $ | 58,627 | 2.82 | % | ||||||
| Impact of Non-Interest Bearing Funds | 0.53 | % | ||||||||
| Tax effected yield on interest earning assets | 3.35 | % | ||||||||
| FIRST MID BANCSHARES, INC. | |||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||
| (In thousands, unaudited) | |||||||||||||||||||||||
| As of and for the Quarter Ended | |||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||||||
| Net interest income as reported | $ | 57,543 | $ | 56,765 | $ | 55,470 | $ | 57,462 | $ | 50,443 | |||||||||||||
| Net interest income, (tax equivalent) | 58,627 | 57,361 | 56,086 | 58,255 | 51,212 | ||||||||||||||||||
| Average earning assets | 6,857,070 | 6,815,932 | 6,884,855 | 6,948,309 | 6,593,781 | ||||||||||||||||||
| Net interest margin (tax equivalent) | 3.35 | % | 3.36 | % | 3.25 | % | 3.33 | % | 3.06 | % | |||||||||||||
| Common stockholder's equity | $ | 858,497 | $ | 813,645 | $ | 797,952 | $ | 793,204 | $ | 737,948 | |||||||||||||
| Goodwill and intangibles, net | 265,139 | 257,377 | 260,699 | 264,231 | 267,793 | ||||||||||||||||||
| Common shares outstanding | 23,904 | 23,896 | 23,889 | 23,827 | 23,830 | ||||||||||||||||||
| Tangible Book Value per common share | $ | 24.82 | $ | 23.28 | $ | 22.49 | $ | 22.20 | $ | 19.73 | |||||||||||||
| Accumulated other comprehensive loss (AOCI) | (116,692 | ) | (146,998 | ) | (147,667 | ) | (136,427 | ) | (178,903 | ) | |||||||||||||
| Adjusted tangible book value per common share | $ | 29.70 | $ | 29.43 | $ | 28.67 | $ | 27.93 | $ | 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 | |||||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | |||||||||||||||||||
| Adjusted earnings Reconciliation | |||||||||||||||||||||||
| Net Income - GAAP | $ | 19,482 | $ | 19,745 | $ | 20,503 | $ | 18,071 | $ | 15,117 | |||||||||||||
| Adjustments (post-tax): (1) | |||||||||||||||||||||||
| Acquisition ACL on non-PCD assets in provision expense | - | - | - | - | 2,985 | ||||||||||||||||||
| Net (gain)/loss on securities sales | 219 | 123 | - | (36 | ) | (2,677 | ) | ||||||||||||||||
| Integration and acquisition expenses | 137 | 250 | 1,804 | 4,385 | 1,653 | ||||||||||||||||||
| Total non-recurring adjustments (non-GAAP) | $ | 356 | $ | 373 | $ | 1,804 | $ | 4,348 | $ | 1,962 | |||||||||||||
| Adjusted earnings - non-GAAP | $ | 19,838 | $ | 20,118 | $ | 22,307 | $ | 22,419 | $ | 17,079 | |||||||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 0.83 | $ | 0.84 | $ | 0.93 | $ | 0.94 | $ | 0.77 | |||||||||||||
| Adjusted return on average assets - non-GAAP | 1.05 | % | 1.07 | % | 1.17 | % | 1.16 | % | 0.94 | % | |||||||||||||
| Adjusted return on average common equity - non-GAAP | 9.58 | % | 10.11 | % | 11.28 | % | 12.11 | % | 9.82 | % | |||||||||||||
| Efficiency Ratio Reconciliation | |||||||||||||||||||||||
| Noninterest expense - GAAP | $ | 53,933 | $ | 51,391 | $ | 53,362 | $ | 57,025 | $ | 47,096 | |||||||||||||
| Other real estate owned property income (expense) | (107 | ) | (85 | ) | 21 | (800 | ) | (902 | ) | ||||||||||||||
| Amortization of intangibles | (3,405 | ) | (3,340 | ) | (3,497 | ) | (3,560 | ) | (2,568 | ) | |||||||||||||
| Nonrecurring severance expense | - | - | - | - | - | ||||||||||||||||||
| Integration and acquisition expenses | (174 | ) | (316 | ) | (2,283 | ) | (5,550 | ) | (2,093 | ) | |||||||||||||
| Adjusted noninterest expense (non-GAAP) | $ | 50,247 | $ | 47,650 | $ | 47,603 | $ | 47,115 | $ | 41,533 | |||||||||||||
| Net interest income -GAAP | $ | 57,543 | $ | 56,765 | $ | 55,470 | $ | 57,462 | $ | 50,443 | |||||||||||||
| Effect of tax-exempt income (1) | 1,084 | 596 | 616 | 793 | 769 | ||||||||||||||||||
| Adjusted net interest income (non-GAAP) | $ | 58,627 | $ | 57,361 | $ | 56,086 | $ | 58,255 | $ | 51,212 | |||||||||||||
| Noninterest income - GAAP | $ | 23,023 | $ | 22,422 | $ | 24,478 | $ | 21,768 | $ | 23,053 | |||||||||||||
| Net (gain)/loss on securities sales | 277 | 156 | 0 | (46 | ) | (3,389 | ) | ||||||||||||||||
| Adjusted noninterest income (non-GAAP) | $ | 23,300 | $ | 22,578 | $ | 24,478 | $ | 21,722 | $ | 19,664 | |||||||||||||
| Adjusted total revenue (non-GAAP) | $ | 81,927 | $ | 79,939 | $ | 80,564 | $ | 79,977 | $ | 70,876 | |||||||||||||
| Efficiency ratio (non-GAAP) | 61.33 | % | 59.61 | % | 59.09 | % | 58.91 | % | 58.60 | % | |||||||||||||
| (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. | |||||||||||||||||||||||
