• First Mid Bancshares, Inc. Announces Second Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 27 Jul 2023 06:00:01   America/Chicago

    MATTOON, Ill., July 27, 2023 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended June 30, 2023.

    Highlights

    • Net income of $16.6 million, or $0.80 diluted EPS
    • Adjusted net income (non-GAAP) of $17.2 million, or $0.83 diluted EPS
    • Loan growth of 1.1% and deposit growth of 3.8% for the quarter
    • Board of Directors declares regular quarterly dividend of $0.23 per share
    • Completed the acquisition of PGIB Insurance (“PGIB”) on June 16th adding approximately $2.5 million in annual revenues to noninterest income
    • Received regulatory approvals for the acquisition of Blackhawk Bancorp, Inc. (“Blackhawk”) with closing targeted for mid-August

    “Our second quarter results reflect the strength of our diversification and the success of our strategic initiatives,” said Joe Dively, Chairman and Chief Executive Officer. “We delivered on our relationship-driven model with growth in both loans and deposits, while maintaining strong asset quality metrics.”

    “On the M&A front, we were pleased to receive regulatory approval to proceed with closing the Blackhawk acquisition, which we have targeted for mid-August. The work that has been done to this point and the reception by Blackhawk customers and employees has us increasingly excited about what the combined company can achieve. In addition, we completed the acquisition of PGIB Insurance on June 16th, which strengthens our expertise in the insurance business and positions us to advance these services through our northern and western Illinois footprint,” Dively concluded.

    Net Interest Income

    Net interest income for the second quarter of 2023 decreased by $0.8 million, or 1.9% compared to the first quarter of 2023. Interest income and interest expense increased in the quarter by $2.5 million and $3.3 million, respectively. The increase in interest income was primarily driven by higher interest rates and loan growth. Accretion income increased by $0.1 million in the quarter to $0.5 million. Interest expense increased primarily from higher rates and balances on deposits, partially offset by less borrowings.      

    In comparison to the second quarter of 2022, net interest income decreased $4.5 million, or 9.5%.   Interest income increased by $14.8 million and was more than offset by an increase in interest expense of $19.3 million.                

    Net Interest Margin

    Net interest margin, on a tax equivalent basis, was 2.84% for the second quarter of 2023, which was 10 basis points lower compared to the prior quarter. Earning asset yields increased by 11 basis points and the average cost of funds increased 21 basis points with more aggressive pricing on deposits early in the quarter.   

    In comparison to the second quarter of last year, the net interest margin decreased 36 basis points, with an average earnings asset increase of 93 basis points versus the average cost of funds increased 129 basis points.

    Loan Portfolio

    Total loans ended the quarter at $4.81 billion, representing an increase of $52.8 million, or 1.1% compared to the prior quarter. Growth was well diversified both geographically and by sector and came primarily within commercial real estate and commercial and industrial loans. The average yield on new loans and operating line usage was 7.8% in the quarter. The loan pipeline outlook remains muted due to the macro headwinds in the economy.        

    Asset Quality

    The Company’s strong credit culture continues to be reflected in its asset quality metrics for June 30, 2023. The allowance for credit losses (‘ACL’) increased by $0.5 million to $58.7 million with an ending ACL to total loans ratio of 1.22%. Provision expense was recorded in the amount of $0.5 million and the Company had net recoveries in the period. Also, at the end of the second quarter, the ratio of non-performing loans to total loans was 0.39%, and the ACL to non-performing loans was 315%.   The ratio of nonperforming assets to total assets was 0.34% at quarter end. Nonperforming loans increased by $3.5 million in the period to $18.6 million. Special mention loans declined $6.3 million in the quarter to $40.7 million. Substandard loans declined $1.7 million in the period to $28.3 million.      

    Deposits

    Total deposits ended the quarter at $5.22 billion, which represented an increase of $188.8 million, or 3.8% from the prior quarter. The increase was primarily in interest bearing demand and time deposits. The Company was aggressive with pricing throughout the first half of the quarter to increase deposits. The success of that effort allowed the Company to use the funds primarily to pay down a net $145.0 million in Federal Home Loan Bank borrowings and to fund loan growth.   The Company’s average rate on cost of funds increased to 1.59% compared to 1.38% in the prior quarter, which reflected the lowest increase since the second quarter of 2022.                  

    Noninterest Income/PGIB Acquisition

    On June 16, 2023, our subsidiary First Mid Insurance Group closed on the acquisition of PGIB Insurance based in Macomb, Illinois. PGIB has nearly a 100-year history serving northern and western Illinois with a diversified product offering including commercial property & casualty, personal property & casualty, and group medical plans and individual health insurance. Annual revenues are approximately $2.5 million, which is expected to grow with the opportunities from bank referrals and access to expanded markets.  

    Noninterest income represented 31.5% of our total net revenues in the quarter and 32.9% year-to-date.

    Noninterest income for the second quarter of 2023 was $19.5 million compared to $22.5 million in the first quarter of 2023.   The decrease compared to the prior quarter was primarily due to the seasonality of the insurance business, which was down by $2.7 million, and the previously disclosed bank owned life insurance claim of $0.7 million that occurred in the first quarter of 2023.  

    In comparison to the second quarter of 2022, noninterest income increased $0.9 million, or 5.0%. All categories increased, except for wealth management and net securities gains.                 

    Noninterest Expenses     

    Noninterest expense for the second quarter of 2023 totaled $40.0 million compared to $41.6 million in the prior quarter. The decrease was primarily driven by the cost savings initiatives the Company implemented at the end of the first quarter and the variable cost tied to the seasonality of wealth management and insurance revenues. This was partially offset by an increase to the FDIC insurance expense accrual. The current quarter included $0.7 million in nonrecurring acquisition related expenses.

    In comparison to the second quarter of 2022, noninterest expenses decreased $1.5 million. The decrease was primarily driven by lower salaries and benefits costs tied to the cost savings initiatives at the end of the first quarter.

    The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the second quarter 2023 was 60.4% compared to 59.0% in the prior quarter and 58.5% for the same period last year.

    Capital Levels and Dividend

    The Company’s capital levels remained strong and comfortably above the “well capitalized” levels. During the second quarter, significant loan growth increased risk-weighted assets resulting in a modest decrease in certain of the ratios. Capital levels ended the period as follows:

    Total capital to risk-weighted assets15.67%
    Tier 1 capital to risk-weighted assets12.82%
    Common equity tier 1 capital to risk-weighted assets12.45%
    Leverage ratio10.00%

    The Company’s Board of Directors approved its next quarterly dividend of $0.23 payable on September 1, 2023 for shareholders of record on August 14, 2023.

    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 and Blackhawk, such as discussions of First Mid’s and Blackhawk’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 and Blackhawk, 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, the possibility that any of the anticipated benefits of the proposed transactions between First Mid and Blackhawk will not be realized or will not be realized within the expected time period; the risk that integration of the operations of Blackhawk with First Mid will be materially delayed or will be more costly or difficult than expected; the inability to complete the proposed transactions due to the failure to satisfy conditions to completion of the proposed transactions, including failure to obtain the required regulatory, shareholder and other approvals; the failure of the proposed transactions to close for any other reason; the effect of the announcement of the proposed transactions on customer relationships and operating results; the possibility that the proposed transactions may be more expensive to complete than anticipated, including as a result of unexpected factors or events; changes in interest rates; general economic conditions and those in the market areas of First Mid and Blackhawk; 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 and Blackhawk’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 and Blackhawk; accounting principles, policies and guidelines; and the impact of the global COVID-19 pandemic on First Mid’s or Blackhawk’s businesses, the ability to complete the proposed transactions or any of the other foregoing risks. 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.

    Important Information about the Merger and Additional Information
    First Mid filed a registration statement on Form S-4 with the SEC on May 30, 2023, which, as amended, was declared effective on June 23, 2023, in connection with the proposed transaction. The registration statement includes a proxy statement of Blackhawk that also constitutes a prospectus of First Mid. The definitive proxy statement/prospectus was first mailed to the shareholders of Blackhawk on or about July 5, 2023, seeking their approval of the proposed transaction. Investors in Blackhawk are urged to read the proxy statement/prospectus, which will contain important information, including detailed risk factors. The proxy statement/prospectus and other documents which were filed by First Mid with the SEC will be available free of charge at the SEC’s website, www.sec.gov, or by directing a request when such a filing is made to First Mid Bancshares, P.O. Box 499, Mattoon, IL 61938, Attention: Investor Relations; or to Blackhawk upon written request to Blackhawk Bancorp, Inc., 400 Broad St., Beloit, WI 53511-6223, Attention: Todd J. James, President & CEO.

    Participants in the Solicitation
    First Mid and Blackhawk, and certain of their respective directors, executive officers and other members of management and employees, are participants in the solicitation of proxies in connection with the proposed transactions. Information about the directors and executive officers of First Mid is set forth in the proxy statement for its 2023 annual meeting of stockholders, which was filed with the SEC on March 15, 2023. These documents can be obtained free of charge from the sources provided above. Investors may obtain additional information regarding the interests of such participants in the proposed transactions by reading the proxy statement/prospectus for such proposed transactions when it becomes available.

    No Offer or Solicitation
    This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

    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
       June 30, December 31, June 30,
        2023   2022   2022 
            
    Assets       
    Cash and cash equivalents $174,253  $152,433  $137,544 
    Investment securities  1,169,428   1,223,720   1,354,943 
    Loans (including loans held for sale) 4,813,416   4,826,212   4,648,663 
    Less allowance for credit losses  (58,719)  (59,093)  (59,075)
    Net loans   4,754,697   4,767,119   4,589,588 
    Premises and equipment, net  89,924   90,473   90,766 
    Goodwill and intangibles, net  178,615   169,897   172,871 
    Bank owned life insurance  152,538   151,756   149,917 
    Other assets   184,414   188,817   165,293 
    Total assets  $6,703,869  $6,744,215  $6,660,922 
            
    Liabilities and Stockholders' Equity     
    Deposits:       
    Non-interest bearing $1,171,047  $1,256,514  $1,369,756 
    Interest bearing   4,048,538   4,000,487   3,949,222 
    Total deposits   5,219,585   5,257,001   5,318,978 
    Repurchase agreement with customers 209,170   221,414   174,934 
    Other borrowings  449,979   465,071   386,286 
    Junior subordinated debentures 19,448   19,364   19,279 
    Subordinated debt  94,632   94,553   94,476 
    Other liabilities   50,368   53,657   40,701 
    Total liabilities   6,043,182   6,111,060   6,034,654 
            
    Total stockholders' equity  660,687   633,155   626,268 
    Total liabilities and stockholders' equity$6,703,869  $6,744,215  $6,660,922 
            


               
    FIRST MID BANCSHARES, INC.
    Condensed Consolidated Statements of Income
    (In thousands, except per share data, unaudited)
               
       Three Months Ended Six Months Ended 
       June 30, June 30, 
        2023   2022  2023   2022 
    Interest income:          
    Interest and fees on loans $58,368  $43,555 $114,604  $83,463 
    Interest on investment securities  7,193   7,623  14,320   14,793 
    Interest on federal funds sold & other deposits 569   105  877   172 
    Total interest income   66,130   51,283  129,801   98,428 
    Interest expense:          
    Interest on deposits   16,580   2,523  29,347   4,671 
    Interest on securities sold under agreements to repurchase   1,723   137  3,186   204 
    Interest on other borrowings  4,084   645  8,967   921 
    Interest on jr. subordinated debentures  390   166  769   312 
    Interest on subordinated debt  986   986  1,974   1,972 
    Total interest expense   23,763   4,457  44,243   8,080 
    Net interest income   42,367   46,826  85,558   90,348 
    Provision for credit losses  458   907  (359)  3,859 
    Net interest income after provision for loan 41,909   45,919  85,917   86,489 
    Non-interest income:          
    Wealth management revenues  5,341   5,473  10,855   11,448 
    Insurance commissions   5,737   5,641  14,217   12,745 
    Service charges   2,386   2,236  4,589   4,292 
    Net securities gains/(losses)  (6)  2  (52)  2 
    Mortgage banking revenues  332   289  482   770 
    ATM/debit card revenue  3,265   3,214  6,348   6,112 
    Other   2,431   1,704  5,526   4,315 
    Total non-interest income  19,486   18,559  41,965   39,684 
    Non-interest expense:          
    Salaries and employee benefits  23,544   25,768  49,615   50,107 
    Net occupancy and equipment expense  6,035   6,073  12,040   12,228 
    Net other real estate owned (income) expense 27   218  160   185 
    FDIC insurance   1,076   436  1,539   862 
    Amortization of intangible assets  1,477   1,633  2,999   3,155 
    Stationary and supplies   315   325  607   636 
    Legal and professional expense  1,780   1,885  3,470   3,619 
    ATM/debit card expense  1,016   670  2,239   1,748 
    Marketing and donations  908   706  1,562   1,579 
    Other   3,864   3,801  7,388   7,821 
    Total non-interest expense  40,042   41,515  81,619   81,940 
    Income before income taxes  21,353   22,963  46,263   44,233 
    Income taxes   4,786   5,205  10,516   9,859 
    Net income  $16,567  $17,758 $35,747  $34,374 
               
    Per Share Information          
    Basic earnings per common share $0.81  $0.87 $1.74  $1.73 
    Diluted earnings per common share  0.80   0.86  1.74   1.72 
               
    Weighted average shares outstanding  20,528,717   20,448,799  20,510,585   19,875,516 
    Diluted weighted average shares outstanding 20,628,239   20,529,523  20,596,283   19,947,227 
               


                   
    FIRST MID BANCSHARES, INC.
    Condensed Consolidated Statements of Income
    (In thousands, except per share data, unaudited)
                   
         For the Quarter Ended
         June 30, March 31, December 31, September 30, June 30, 
          2023   2023   2022   2022  2022 
    Interest income:              
    Interest and fees on loans   $58,368  $56,236  $53,128  $49,278 $43,555 
    Interest on investment securities    7,193   7,127   7,285   7,302  7,623 
    Interest on federal funds sold & other deposits   569   308   296   174  105 
    Total interest income     66,130   63,671   60,709   56,754  51,283 
    Interest expense:              
    Interest on deposits     16,580   12,767   9,227   4,915  2,523 
    Interest on securities sold under agreements to repurchase  1,723   1,463   1,163   428  137 
    Interest on other borrowings    4,084   4,883   3,345   1,927  645 
    Interest on jr. subordinated debentures    390   379   315   241  166 
    Interest on subordinated debt    986   988   987   986  986 
    Total interest expense     23,763   20,480   15,037   8,497  4,457 
    Net interest income     42,367   43,191   45,672   48,257  46,826 
    Provision for credit losses    458   (817)  805   142  907 
    Net interest income after provision for loan   41,909   44,008   44,867   48,115  45,919 
    Non-interest income:              
    Wealth management revenues    5,341   5,514   6,201   4,843  5,473 
    Insurance commissions     5,737   8,480   4,719   4,158  5,641 
    Service charges     2,386   2,203   2,375   2,445  2,236 
    Securities gains, net     (6)  (46)  (48)  79  2 
    Mortgage banking revenues    332   150   65   355  289 
    ATM/debit card revenue    3,265   3,083   3,209   3,101  3,214 
    Other     2,431   3,095   1,686   1,810  1,704 
    Total non-interest income    19,486   22,479   18,207   16,791  18,559 
    Non-interest expense:              
    Salaries and employee benefits    23,544   26,071   23,610   24,877  25,768 
    Net occupancy and equipment expense    6,035   6,005   6,126   5,903  6,073 
    Net other real estate owned (income) expense   27   133   87   58  218 
    FDIC insurance     1,076   463   464   479  436 
    Amortization of intangible assets    1,477   1,522   1,537   1,598  1,633 
    Stationary and supplies     315   292   298   361  325 
    Legal and professional expense    1,780   1,690   1,607   1,770  1,885 
    ATM/debit card expense    1,016   1,223   1,309   1,243  670 
    Marketing and donations    908   654   681   739  706 
    Other     3,864   3,524   3,653   4,521  3,801 
    Total non-interest expense    40,042   41,577   39,372   41,549  41,515 
    Income before income taxes    21,353   24,910   23,702   23,357  22,963 
    Income taxes     4,786   5,730   3,063   5,418  5,205 
    Net income    $16,567  $19,180  $20,639  $17,939 $17,758 
                   
    Per Share Information              
    Basic earnings per common share   $0.81  $0.94  $1.01  $0.88 $0.87 
    Diluted earnings per common share    0.80   0.93   1.01   0.88  0.86 
                   
    Weighted average shares outstanding    20,528,717   20,492,254   20,461,046   20,454,669  20,448,799 
    Diluted weighted average shares outstanding   20,628,239   20,563,972   20,535,220   20,535,215  20,529,523 


                
       FIRST MID BANCSHARES, INC.
       Consolidated Financial Highlights and Ratios
       (Dollars in thousands, except per share data)
       (Unaudited)
       As of and for the Quarter Ended
       June 30, March 31, December 31, September 30,June 30,
        2023   2023   2022   2022   2022 
                
    Loan Portfolio            
    Construction and land development $151,574  $159,157  $144,264  $142,801  $141,072 
    Farm real estate loans  392,220   401,957   410,327   360,424   350,159 
    1-4 Family residential properties  418,932   424,545   440,180   436,625   424,230 
    Multifamily residential properties  303,482   301,808   294,346   298,321   330,600 
    Commercial real estate  2,056,529   2,003,647   2,030,011   1,996,338   1,976,654 
         Loans secured by real estate  3,322,737   3,291,114   3,319,128   3,234,509   3,222,715 
    Agricultural operating loans  148,318   146,847   166,838   160,511   142,406 
    Commercial and industrial loans  1,094,522   1,078,021   1,082,960   1,064,033   1,036,987 
    Consumer loans   80,241   88,430   97,775   100,783   94,828 
    All other loans   167,598   156,219   159,511   160,454   151,727 
    Total loans   4,813,416   4,760,631   4,826,212   4,720,290   4,648,663 
                
    Deposit Portfolio           
    Non-interest bearing demand deposits $1,171,047  $1,262,181  $1,256,514  $1,334,686  $1,369,756 
    Interest bearing demand deposits  1,477,765   1,419,791   1,389,283   1,364,306   1,453,932 
    Savings deposits   602,523   639,691   636,699   657,592   683,944 
    Money Market   923,259   878,452   1,267,726   1,443,060   1,158,724 
    Time deposits   1,044,991   830,663   706,779   683,554   652,622 
    Total deposits   5,219,585   5,030,778   5,257,001   5,483,198   5,318,978 
                
    Asset Quality           
    Non-performing loans $18,637  $15,163  $19,170  $20,812  $19,981 
    Non-performing assets  22,615   19,225   23,539   25,143   24,190 
    Net charge-offs (recoveries)  (38)  53   489   440   307 
    Allowance for credit losses to non-performing loans 315.07%  383.98%  308.26%  282.42%  295.66%
    Allowance for credit losses to total loans outstanding 1.22%  1.22%  1.22%  1.25%  1.27%
    Nonperforming loans to total loans  0.39%  0.32%  0.40%  0.44%  0.43%
    Nonperforming assets to total assets  0.34%  0.29%  0.35%  0.38%  0.36%
    Special Mention loans  40,687   47,022   39,853   25,298   35,849 
    Substandard and Doubtful loans  28,255   29,931   34,352   37,378   38,155 
                
    Common Share Data          
    Common shares outstanding  20,528,192   20,519,717   20,452,376   20,454,636   20,448,799 
    Book value per common share $32.18  $32.26  $30.96  $29.37  $30.63 
    Tangible book value per common share (1) 23.48   24.05   22.65   21.01   22.17 
    Market price of stock  24.14   27.22   32.08   31.97   35.67 
                
    Key Performance Ratios and Metrics          
    End of period earning assets $6,023,553  $5,995,674  $6,063,953  $5,975,619  $6,024,815 
    Average earning assets  6,049,626   6,052,264   6,000,106   6,063,061   5,975,821 
    Average rate on average earning assets (tax equivalent) 4.43%  4.32%  4.07%  3.77%  3.50%
    Average rate on cost of funds  1.59%  1.38%  1.00%  0.56%  0.30%
    Net interest margin (tax equivalent) (1)  2.84%  2.94%  3.07%  3.21%  3.20%
    Return on average assets  0.99%  1.15%  1.24%  1.07%  1.08%
    Return on average common equity  10.07%  12.11%  13.51%  11.18%  11.02%
    Efficiency ratio (tax equivalent) (1)  60.37%  59.01%  58.07%  59.64%  58.45%
    Full-time equivalent employees  995   988   1,043   1,051   1,025 
                
                
    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 June 30, 2023
      QTD Average   Average
      Balance Interest Rate
    INTEREST EARNING ASSETS     
    Interest bearing deposits$35,093  $456 5.21%
    Federal funds sold 8,025   98 4.90%
    Certificates of deposits investments 1,715   14 3.27%
    Investment Securities:     
    Taxable (total less municipals) 950,755   5,270 2.22%
    Tax-exempt (Municipals) 276,719   2,434 3.52%
    Loans (net of unearned income) 4,777,319   58,602 4.92%
           
    Total interest earning assets 6,049,626   66,874 4.43%
           
    NONEARNING ASSETS     
    Cash and due from banks 135,574     
    Premises and equipment 89,974     
    Other nonearning assets 464,899     
    Allowance for loan losses (58,617)    
           
    Total assets$6,681,456     
           
    INTEREST BEARING LIABILITIES     
    Demand deposits$2,318,119  $9,467 1.64%
    Savings deposits 619,426   168 0.11%
    Time deposits 983,323   6,945 2.83%
    Total interest bearing deposits 3,920,868   16,580 1.70%
    Repurchase agreements 226,734   1,723 3.05%
    FHLB advances 486,920   4,084 3.36%
    Federal funds purchased -   - 0.00%
    Subordinated debt 94,606   988 4.19%
    Jr. subordinated debentures 19,427   390 8.05%
    Other debt  -   - 0.00%
    Total borrowings 827,687   7,185 3.48%
    Total interest bearing liabilities 4,748,555   23,765 2.01%
           
    NONINTEREST BEARING LIABILITIES     
    Demand deposits 1,228,395  Average cost of funds1.59%
    Other liabilities 46,163     
    Stockholders' equity 658,343     
           
    Total liabilities & stockholders' equity$6,681,456     
           
    Net Interest Earnings / Spread  $43,109 2.42%
           
    Impact of Non-Interest Bearing Funds    0.42%
           
    Tax effected yield on interest earning assets   2.84%
           


                   
    FIRST MID BANCSHARES, INC.
    Reconciliation of Non-GAAP Financial Measures
    (In thousands, unaudited)
                   
         As of and for the Quarter Ended
         June 30, March 31, December 31, September 30,June 30, 
          2023   2023   2022   2022   2022  
                   
    Net interest income as reported  $42,367  $43,191  $45,672  $48,257  $46,826  
    Net interest income, (tax equivalent)  43,109   43,947   46,464   49,060   47,625  
    Average earning assets   6,049,626   6,052,264   6,000,106   6,063,061   5,975,821  
    Net interest margin (tax equivalent)  2.84%  2.94%  3.07%  3.21%  3.20% 
                   
                   
    Common stockholder's equity  $660,687  $661,865  $633,155  $600,715  $626,268  
    Goodwill and intangibles, net   178,615   168,373   169,897   170,897   172,871  
    Common shares outstanding   20,528   20,520   20,452   20,455   20,449  
    Tangible Book Value per common share $23.48  $24.05  $22.65  $21.01  $22.17  
                   


                  
    FIRST MID BANCSHARES, INC.
    Reconciliation of Non-GAAP Financial Measures
    (In thousands, except per share data, unaudited)
                  
         As of and for the Quarter Ended
         June 30, March 31, December 31, September 30,June 30,
          2023   2023   2022   2022   2022 
    Adjusted earnings Reconciliation          
    Net Income - GAAP   $16,567  $19,180  $20,639  $17,939  $17,758 
    Adjustments (post-tax):(1)           
    Acquisition ACL on non-PCD assets in provision expense -   -   -   -   - 
    Nonrecurring severance expense  -   416   -   -   - 
    Integration and acquisition expenses  589   135   131   524   777 
    Total non-recurring adjustments (non-GAAP)$589  $551  $131  $524  $777 
                  
    Adjusted earnings - non-GAAP  $17,156  $19,731  $20,770  $18,463  $18,535 
    Adjusted diluted earnings per share (non-GAAP)$0.83  $0.96  $1.01  $0.90  $0.90 
                  
    Efficiency Ratio Reconciliation           
    Noninterest expense - GAAP  $40,042  $41,577  $39,372  $41,549  $41,515 
    Other real estate owned property income (expense) (27)  (133)  (87)  (58)  (218)
    Amortization of intangibles   (1,477)  (1,522)  (1,537)  (1,598)  (1,633)
    Nonrecurring severance expense  -   (527)  -   -   - 
    integration and acquisition expenses  (745)  (171)  (166)  (663)  (983)
    Adjusted noninterest expense (non-GAAP) $37,793  $39,224  $37,582  $39,230  $38,681 
                  
    Net interest income -GAAP  $42,367  $43,192  $45,672  $48,257  $46,826 
    Effect of tax-exempt income(1)   742   755   792   803   799 
    Adjusted net interest income (non-GAAP) $43,109  $43,947  $46,464  $49,060  $47,625 
                  
    Noninterest income - GAAP  $19,486  $22,479  $18,207  $16,791  $18,559 
    Net (gain)/loss on securities sales   6   46   48   (79)  (2)
    Adjusted noninterest income (non-GAAP) $19,492  $22,525  $18,255  $16,712  $18,557 
                  
    Adjusted total revenue (non-GAAP) $62,601  $66,472  $64,719  $65,772  $66,182 
                  
    Efficiency ratio (non-GAAP)   60.37%  59.01%  58.07%  59.64%  58.45%
                  
    (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.     

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