First Mid Bancshares, Inc. Announces Second Quarter 2024 Results

First Mid Bancshares, Inc.

Thu, Aug 1, 2024, 5:00 AM 25 min read

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 9^th 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
[email protected]

Matt Smith
Chief Financial Officer
217-258-1528
[email protected]

– Tables Follow –

	FIRST MID BANCSHARES, INC.
	Condensed Consolidated Balance Sheets
	(In thousands, unaudited)

	As of
	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%.

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First Mid Bancshares, Inc. Announces Second Quarter 2024 Results

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