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First Mid Bancshares, Inc. Announces Second Quarter 2024 Results
Source: Nasdaq GlobeNewswire / 01 Aug 2024 07:00:01 America/Chicago
MATTOON, Ill., Aug. 01, 2024 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended June 30, 2024.
Highlights
- Net income of $19.7 million, or $0.82 diluted EPS
- Adjusted net income (non-GAAP) of $20.1 million, or $0.84 diluted EPS
- Margin expansion and loan growth drove an increase in net interest income of $1.3 million for the quarter
- Announced the acquisition of Mid Rivers Insurance Group (“MRIG”) on July 9th deepening our Missouri presence and increasing noninterest income
- Board of Directors increases quarterly dividend by $0.01 per share to $0.24 per share
“We delivered another strong quarter of financial results and continued our strategy to expand noninterest income with the acquisition of MRIG,” said Joe Dively, Chairman and Chief Executive Officer. “The quarter included solid loan growth and superior asset quality. The loan growth and repricing of our earning assets, combined with active management of our funding costs helped drive an 11-basis point increase in margin for the period.”
“The MRIG acquisition deepens our Missouri presence with a highly productive team covering the St. Louis and mid-Missouri footprint. We welcome the MRIG team and are excited about the growth and diversity they bring to our insurance offerings and the opportunity to deepen relationships for customers of both companies,” Dively concluded.
Taxes
On June 7, 2024, Illinois passed HB 4951, which among other things changed the apportionment related to investment income. For purposes of computing Illinois sourced receipts, the apportionment on investment income is now the same as the apportionment factor on all non-investment income. The effect of this for First Mid is a lower Illinois tax rate going forward. However, the impact to the second quarter of 2024 was a $1.0 million tax expense for the lower rate applied to associated deferred tax assets. This nonrecurring expense reduced diluted EPS for the period by $0.04.
Net Interest Income
Net interest income for the second quarter of 2024 increased by $1.3 million, or 2.3% compared to the first quarter of 2024. Interest income increased by $1.0 million primarily driven by loan growth and repricing of maturing loans. The Company primarily utilized cash for loan funding and did not replace most borrowings that matured. This strategy combined with lower deposit balances drove a decline in interest expense by $0.3 million.
In comparison to the second quarter of 2023, net interest income increased $14.4 million, or 34.0%. Interest income increased by $22.6 million and interest expense increased $8.2 million. The increases were primarily driven by the addition of Blackhawk and higher interest rates.
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.36% for the second quarter of 2024, which was an 11-basis point increase compared to the prior quarter. Earning asset yields increased by 11 basis points, while the average cost of funds was flat. Accretion income for the quarter was $3.7 million, which was an increase of $0.1 million from the prior quarter.
In comparison to the second quarter of last year, the net interest margin increased 52 basis points, with an average earnings asset increase of 84 basis points versus the average cost of funds increase of 32 basis points. The increases were due to higher rates on new and renewed loans as well as increased competition on deposits.
Loan Portfolio
Total loans ended the quarter at $5.56 billion, representing an increase of $61.3 million, or 1.1% compared to the prior quarter. Growth was well diversified between construction and land development, multifamily, commercial real estate and commercial and industrial loans. The average yield on new loans and operating line usage was approximately 8.0% in the quarter.
Asset Quality
The Company benefits from a strong performing credit culture that is reflective in its ratios for the current quarter. The allowance for credit losses (‘ACL’) increased by $0.4 million to $68.3 million with an ending ACL to total loans ratio of 1.23%. Provision expense was recorded in the amount of $1.1 million and the Company had net charge offs of $0.7 million in the period. Also, at the end of the second quarter, the ratio of non-performing loans to total loans was 0.34%, and the ACL to non-performing loans was 358%. The ratio of non-performing assets to total assets was 0.27% at quarter end. Non-performing loans decreased by $1.0 million in the period to $19.1 million. Special mention loans declined $34.9 million in the quarter to $30.8 million driven by a combination of upgrades and paydowns. Substandard loans declined $1.7 million in the period to $27.6 million.
Deposits and Funding
Total deposits ended the quarter at $6.12 billion, which represented a decrease of $127.2 million, or 2.0% from the prior quarter. The decrease was primarily in interest bearing demand deposits and noninterest bearing accounts, which included the deposit change mentioned in the first quarter release where approximately $50.0 million of second quarter outflows were short-term customer cash flow needs that were received on the last day of the first quarter. In comparison to the prior quarter, the average cost of funds was flat in the second quarter of 2024 at 1.91%.
During the quarter, the Company repurchased and cancelled $4.0 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, of $0.1 million.
Noninterest Income and MRIG
Noninterest income for the second quarter of 2024 was $22.4 million compared to $24.5 million in the prior quarter. The decrease compared to the prior quarter was primarily due to the seasonality in insurance revenues, which were lower by $2.7 million. Excluding insurance, noninterest income increased in the quarter primarily driven by higher service charges, mortgage banking and debit card fees. Wealth management revenues increased $0.1 million in the quarter and ended the period with $6.3 billion in assets under management.
In comparison to the second quarter of 2023, noninterest income increased $2.9 million, or 15.1%. The increase was primarily driven by the addition of Blackhawk and growth in insurance revenues.
On July 9, 2024, our subsidiary First Mid Insurance Group closed on the acquisition of Mid Rivers Insurance Group based in O’Fallon, Missouri. MRIG serves the greater St. Louis and mid-Missouri markets overlapping First Mid’s operating markets. MRIG has a diversified product offering including personal lines, commercial lines, transportation and agriculture. The experienced team of 10 producers generates annual revenue of approximately $2.7 million, which is expected to significantly grow with the opportunities from bank referrals and access to expanded markets.
Noninterest Expenses
Noninterest expense for the second quarter of 2024 totaled $51.4 million compared to $53.4 million in the prior quarter. The decrease was primarily driven by lower nonrecurring integration costs, which totaled $0.3 million in the second quarter of 2024 versus $2.3 million in the first quarter of 2024. The current quarter included a $0.7 million annual incentive credit in debit card fees, while the prior quarter included a $0.9 million credit for a negotiated adjustment for a new agreement.
In comparison to the second quarter of 2023, noninterest expenses increased $11.3 million. The increase was primarily driven by the addition of Blackhawk and organic growth, including the impacts from higher inflation.
The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the second quarter 2024 was 59.6% compared to 59.1% in the prior quarter and 60.4% 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 15.46% Tier 1 capital to risk-weighted assets 12.65% Common equity tier 1 capital to risk-weighted assets 12.24% Leverage ratio 10.04%
The Company’s Board of Directors approved an increase of $0.01 to its next quarterly dividend of $0.24 payable on August 30, 2024 for shareholders of record on August 16, 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 the global COVID-19 pandemic on First Mid’s businesses. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid’s financial results, are included in First Mid’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.Investor Contact:
Austin Frank
SVP, Shareholder Relations
217-258-5522
afrank@firstmid.comMatt 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, 2024 2023 2023 Assets Cash and cash equivalents $ 235,480 $ 143,064 $ 174,253 Investment securities 1,120,930 1,179,402 1,169,428 Loans (including loans held for sale) 5,560,617 5,580,565 4,813,416 Less allowance for credit losses (68,312 ) (68,675 ) (58,719 ) Net loans 5,492,305 5,511,890 4,754,697 Premises and equipment, net 101,583 101,396 89,924 Goodwill and intangibles, net 257,377 264,231 178,615 Bank Owned Life Insurance 168,439 166,125 152,538 Other assets 204,946 220,686 184,414 Total assets $ 7,581,060 $ 7,586,794 $ 6,703,869 Liabilities and Stockholders' Equity Deposits: Non-interest bearing $ 1,393,336 $ 1,398,234 $ 1,171,047 Interest bearing 4,722,443 4,725,425 4,048,538 Total deposits 6,115,779 6,123,659 5,219,585 Repurchase agreements with customers 205,955 213,721 209,170 Other borrowings 263,735 263,787 449,979 Junior subordinated debentures 24,169 24,058 19,448 Subordinated debt 103,029 106,755 94,632 Other liabilities 54,748 61,610 50,368 Total liabilities 6,767,415 6,793,590 6,043,182 Total stockholders' equity 813,645 793,204 660,687 Total liabilities and stockholders' equity $ 7,581,060 $ 7,586,794 $ 6,703,869 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, 2024 2023 2024 2023 Interest income: Interest and fees on loans $ 79,560 $ 58,368 $ 157,383 $ 114,604 Interest on investment securities 7,405 7,193 14,810 14,320 Interest on federal funds sold & other deposits 1,718 569 4,162 877 Total interest income 88,683 66,130 176,355 129,801 Interest expense: Interest on deposits 26,338 16,580 52,434 29,347 Interest on securities sold under agreements to repurchase 1,615 1,723 3,671 3,186 Interest on other borrowings 2,248 4,084 4,562 8,967 Interest on jr. subordinated debentures 537 390 1,079 769 Interest on subordinated debt 1,180 986 2,374 1,974 Total interest expense 31,918 23,763 64,120 44,243 Net interest income 56,765 42,367 112,235 85,558 Provision for credit losses 1,083 458 726 (359 ) Net interest income after provision for loan 55,682 41,909 111,509 85,917 Non-interest income: Wealth management revenues 5,405 5,341 10,727 10,855 Insurance commissions 6,531 5,737 15,744 14,217 Service charges 3,227 2,386 6,183 4,589 Net securities gains/(losses) (156 ) (6 ) (156 ) (52 ) Mortgage banking revenues 1,038 332 1,744 482 ATM/debit card revenue 4,281 3,265 8,336 6,348 Other 2,096 2,431 4,322 5,526 Total non-interest income 22,422 19,486 46,900 41,965 Non-interest expense: Salaries and employee benefits 30,164 23,544 60,612 49,615 Net occupancy and equipment expense 7,507 6,035 15,067 12,040 Net other real estate owned (income) expense 85 27 64 160 FDIC insurance 902 1,076 1,771 1,539 Amortization of intangible assets 3,340 1,477 6,837 2,999 Stationary and supplies 370 315 761 607 Legal and professional expense 2,536 1,780 4,985 3,470 ATM/debit card expense 1,281 1,016 2,472 2,239 Marketing and donations 814 908 1,676 1,562 Other 4,392 3,864 10,508 7,388 Total non-interest expense 51,391 40,042 104,753 81,619 Income before income taxes 26,713 21,353 53,656 46,263 Income taxes 6,968 4,786 13,408 10,516 Net income $ 19,745 $ 16,567 $ 40,248 $ 35,747 Per Share Information Basic earnings per common share $ 0.83 $ 0.81 $ 1.69 $ 1.74 Diluted earnings per common share 0.82 0.80 1.68 1.74 Weighted average shares outstanding 23,896,210 20,528,717 23,884,472 20,510,585 Diluted weighted average shares outstanding 23,998,152 20,628,239 23,979,244 20,596,283 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, 2024 2024 2023 2023 2023 Interest income: Interest and fees on loans $ 79,560 $ 77,823 $ 78,676 $ 69,143 $ 58,368 Interest on investment securities 7,405 7,405 8,515 9,284 7,193 Interest on federal funds sold & other deposits 1,718 2,444 2,736 2,011 569 Total interest income 88,683 87,672 89,927 80,438 66,130 Interest expense: Interest on deposits 26,338 26,096 25,900 22,047 16,580 Interest on securities sold under agreements to repurchase 1,615 2,056 1,754 1,625 1,723 Interest on other borrowings 2,248 2,314 3,073 4,749 4,084 Interest on jr. subordinated debentures 537 542 545 545 390 Interest on subordinated debt 1,180 1,194 1,193 1,029 986 Total interest expense 31,918 32,202 32,465 29,995 23,763 Net interest income 56,765 55,470 57,462 50,443 42,367 Provision for credit losses 1,083 (357 ) 552 5,911 458 Net interest income after provision for loan 55,682 55,827 56,910 44,532 41,909 Non-interest income: Wealth management revenues 5,405 5,322 4,998 4,940 5,341 Insurance commissions 6,531 9,213 5,398 5,199 5,737 Service charges 3,227 2,956 3,298 2,994 2,386 Securities gains, net (156 ) 0 46 3,389 (6 ) Mortgage banking revenues 1,038 706 954 846 332 ATM/debit card revenue 4,281 4,055 4,233 3,766 3,265 Other 2,096 2,226 2,841 1,919 2,431 Total non-interest income 22,422 24,478 21,768 23,053 19,486 Non-interest expense: Salaries and employee benefits 30,164 30,448 29,925 25,422 23,544 Net occupancy and equipment expense 7,507 7,560 7,977 6,929 6,035 Net other real estate owned (income) expense 85 (21 ) 800 902 27 FDIC insurance 902 869 1,015 785 1,076 Amortization of intangible assets 3,340 3,497 3,560 2,568 1,477 Stationary and supplies 370 391 404 335 315 Legal and professional expense 2,536 2,449 2,065 1,844 1,780 ATM/debit card expense 1,281 1,191 1,332 1,751 1,016 Marketing and donations 814 862 679 764 908 Other 4,392 6,116 9,268 5,796 3,864 Total non-interest expense 51,391 53,362 57,025 47,096 40,042 Income before income taxes 26,713 26,943 21,653 20,489 21,353 Income taxes 6,968 6,440 3,582 5,372 4,786 Net income $ 19,745 $ 20,503 $ 18,071 $ 15,117 $ 16,567 Per Share Information Basic earnings per common share $ 0.83 $ 0.86 $ 0.76 $ 0.68 $ 0.81 Diluted earnings per common share 0.82 0.86 0.76 0.68 0.80 Weighted average shares outstanding 23,896,210 23,872,731 23,837,853 22,220,438 20,528,717 Diluted weighted average shares outstanding 23,998,152 23,960,335 23,921,758 22,319,334 20,628,239 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, 2024 2024 2023 2023 2023 Loan Portfolio Construction and land development $ 195,389 $ 186,851 $ 205,077 $ 189,206 $ 151,574 Farm real estate loans 387,015 388,941 391,132 399,834 392,220 1-4 Family residential properties 507,517 518,641 542,469 531,699 418,932 Multifamily residential properties 334,446 312,758 319,129 327,067 303,482 Commercial real estate 2,406,955 2,396,092 2,384,704 2,392,834 2,056,529 Loans secured by real estate 3,831,322 3,803,283 3,842,511 3,840,640 3,322,737 Agricultural operating loans 213,997 213,217 196,272 179,447 148,318 Commercial and industrial loans 1,268,646 1,227,906 1,266,159 1,242,653 1,094,522 Consumer loans 70,841 79,569 91,014 99,542 80,241 All other loans 175,811 175,320 184,609 177,783 167,598 Total loans 5,560,617 5,499,295 5,580,565 5,540,065 4,813,416 Deposit Portfolio Non-interest bearing demand deposits $ 1,393,336 $ 1,448,299 $ 1,398,234 $ 1,389,022 $ 1,171,047 Interest bearing demand deposits 1,909,993 1,974,857 1,837,296 1,940,162 1,477,765 Savings deposits 673,381 704,777 710,586 734,377 602,523 Money Market 1,127,699 1,107,177 1,129,950 1,161,957 923,259 Time deposits 1,011,370 1,007,826 1,047,593 1,120,806 1,044,991 Total deposits 6,115,779 6,242,936 6,123,659 6,346,324 5,219,585 Asset Quality Non-performing loans $ 19,079 $ 20,064 $ 20,128 $ 21,269 $ 18,637 Non-performing assets 20,557 21,471 21,292 23,565 22,615 Net charge-offs (recoveries) 708 381 118 181 (38 ) Allowance for credit losses to non-performing loans 358.05 % 338.60 % 341.19 % 320.85 % 315.07 % Allowance for credit losses to total loans outstanding 1.23 % 1.24 % 1.23 % 1.23 % 1.22 % Nonperforming loans to total loans 0.34 % 0.36 % 0.36 % 0.38 % 0.39 % Nonperforming assets to total assets 0.27 % 0.28 % 0.28 % 0.30 % 0.34 % Special Mention loans 30,767 65,693 74,050 73,732 40,687 Substandard and Doubtful loans 27,594 29,296 28,945 30,575 28,255 Common Share Data Common shares outstanding 23,895,868 23,888,929 23,827,137 23,830,038 20,528,192 Book value per common share $ 34.05 $ 33.40 $ 33.29 $ 30.97 $ 32.18 Tangible book value per common share (1) 23.28 22.49 22.20 19.73 23.48 Tangible book value per common share excluding other comprehensive income at period end (1) 29.43 28.67 27.93 27.24 30.87 Market price of stock 32.88 32.68 34.66 26.56 24.14 Key Performance Ratios and Metrics End of period earning assets $ 6,812,574 $ 6,923,742 $ 6,780,160 $ 7,007,282 $ 6,023,553 Average earning assets 6,815,932 6,884,855 6,948,309 6,593,781 6,049,626 Average rate on average earning assets (tax equivalent) 5.27 % 5.16 % 5.18 % 4.89 % 4.43 % Average rate on cost of funds 1.91 % 1.91 % 1.85 % 1.83 % 1.59 % Net interest margin (tax equivalent) (1) 3.36 % 3.25 % 3.33 % 3.06 % 2.84 % Return on average assets 1.05 % 1.07 % 0.93 % 0.90 % 0.99 % Adjusted return on average assets (1) 1.07 % 1.17 % 1.16 % 0.94 % 1.03 % Return on average common equity 9.92 % 10.37 % 9.76 % 8.70 % 10.07 % Adjusted return on average common equity (1) 10.11 % 11.28 % 12.11 % 9.82 % 10.42 % Efficiency ratio (tax equivalent) (1) 59.61 % 59.09 % 58.91 % 58.60 % 60.37 % Full-time equivalent employees 1,185 1,188 1,187 1,224 995 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, 2024 QTD Average Average Balance Interest Rate INTEREST EARNING ASSETS Interest bearing deposits $ 127,962 $ 1,667 5.24 % Federal funds sold 23 8 139.89 % Certificates of deposits investments 3,745 43 4.62 % Investment Securities: Taxable (total less municipals) 883,503 5,417 2.45 % Tax-exempt (Municipals) 271,488 2,516 3.71 % Loans (net of unearned income) 5,529,211 79,628 5.79 % Total interest earning assets 6,815,932 89,279 5.27 % NONEARNING ASSETS Cash and due from banks 95,891 Premises and equipment 101,562 Other nonearning assets 606,493 Allowance for loan losses (67,929 ) Total assets $ 7,551,949 INTEREST BEARING LIABILITIES Demand deposits $ 3,021,299 $ 17,286 2.30 % Savings deposits 688,057 185 0.11 % Time deposits 977,265 8,867 3.65 % Total interest bearing deposits 4,686,621 26,338 2.26 % Repurchase agreements 205,711 1,615 3.16 % FHLB advances 249,187 2,248 3.63 % Federal funds purchased - - 0.00 % Subordinated debt 106,033 1,180 4.48 % Jr. subordinated debentures 24,140 537 8.95 % Other debt - - 0.00 % Total borrowings 585,071 5,580 3.84 % Total interest bearing liabilities 5,271,692 31,918 2.44 % NONINTEREST BEARING LIABILITIES Demand deposits 1,439,414 Average cost of funds 1.91 % Other liabilities 44,595 Stockholders' equity 796,248 Total liabilities & stockholders' equity $ 7,551,949 Net Interest Earnings / Spread $ 57,361 2.83 % Impact of Non-Interest Bearing Funds 0.53 % Tax effected yield on interest earning assets 3.36 % 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, 2024 2024 2023 2023 2023 Net interest income as reported $ 56,765 $ 55,470 $ 57,462 $ 50,443 $ 42,367 Net interest income, (tax equivalent) 57,361 56,086 58,255 51,212 43,109 Average earning assets 6,815,932 6,884,855 6,948,309 6,593,781 6,049,626 Net interest margin (tax equivalent) 3.36 % 3.25 % 3.33 % 3.06 % 2.84 % Common stockholder's equity $ 813,645 $ 797,952 $ 793,204 $ 737,948 $ 660,687 Goodwill and intangibles, net 257,377 260,699 264,231 267,793 178,615 Common shares outstanding 23,896 23,889 23,827 23,830 20,528 Tangible Book Value per common share $ 23.28 $ 22.49 $ 22.20 $ 19.73 $ 23.48 Accumulated other comprehensive loss (AOCI) (146,998 ) (147,667 ) (136,427 ) (178,903 ) (151,566 ) Adjusted tangible book value per common share $ 29.43 $ 28.67 $ 27.93 $ 27.24 $ 30.87 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, 2024 2024 2023 2023 2023 Adjusted earnings Reconciliation Net Income - GAAP $ 19,745 $ 20,503 $ 18,071 $ 15,117 $ 16,567 Adjustments (post-tax): (1) Acquisition ACL on non-PCD assets in provision expense - - - 2,985 - Net (gain)/loss on securities sales 123 - (36 ) (2,677 ) - Integration and acquisition expenses 250 1,804 4,385 1,653 589 Total non-recurring adjustments (non-GAAP) $ 373 $ 1,804 $ 4,348 $ 1,962 $ 589 Adjusted earnings - non-GAAP $ 20,118 $ 22,307 $ 22,419 $ 17,079 $ 17,156 Adjusted diluted earnings per share (non-GAAP) $ 0.84 $ 0.93 $ 0.94 $ 0.77 $ 0.83 Adjusted return on average assets - non-GAAP 1.07 % 1.17 % 1.16 % 0.94 % 1.03 % Adjusted return on average common equity - non-GAAP 10.11 % 11.28 % 12.11 % 9.82 % 10.42 % Efficiency Ratio Reconciliation Noninterest expense - GAAP $ 51,391 $ 53,362 $ 57,025 $ 47,096 $ 40,042 Other real estate owned property income (expense) (85 ) 21 (800 ) (902 ) (27 ) Amortization of intangibles (3,340 ) (3,497 ) (3,560 ) (2,568 ) (1,477 ) Nonrecurring severance expense - - - - - Integration and acquisition expenses (316 ) (2,283 ) (5,550 ) (2,093 ) (745 ) Adjusted noninterest expense (non-GAAP) $ 47,650 $ 47,603 $ 47,115 $ 41,533 $ 37,793 Net interest income -GAAP $ 56,765 $ 55,470 $ 57,462 $ 50,443 $ 42,367 Effect of tax-exempt income (1) 596 616 793 769 742 Adjusted net interest income (non-GAAP) $ 57,361 $ 56,086 $ 58,255 $ 51,212 $ 43,109 Noninterest income - GAAP $ 22,422 $ 24,478 $ 21,768 $ 23,053 $ 19,486 Net (gain)/loss on securities sales 156 0 (46 ) (3,389 ) 6 Adjusted noninterest income (non-GAAP) $ 22,578 $ 24,478 $ 21,722 $ 19,664 $ 19,492 Adjusted total revenue (non-GAAP) $ 79,939 $ 80,564 $ 79,977 $ 70,876 $ 62,601 Efficiency ratio (non-GAAP) 59.61 % 59.09 % 58.91 % 58.60 % 60.37 % (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. 
