First Mid Bancshares, Inc. Announces Fourth Quarter 2023 Results

First Mid Bancshares, Inc.

In This Article:

MATTOON, Ill., Jan. 25, 2024 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter and year ended December 31, 2023.

Highlights

  • Net income of $18.1 million, or $0.76 diluted EPS

  • Adjusted net income (non-GAAP) of $22.4 million, or $0.94 diluted EPS

  • Completed the merger and integration of Blackhawk Bank (“Blackhawk”)

  • Sold additional bonds to reposition balance sheet helping drive a strong net interest margin of 3.33%

  • Strong asset quality performance continued with minimal net charge offs for the quarter

  • Board of Directors declares regular quarterly dividend of $0.23 per share

“We capped off 2023 with a strong quarter of financial results,” said Joe Dively, Chairman and Chief Executive Officer. “This was the first full quarter inclusive of Blackhawk and the value of the transaction is evident in our results. We completed another step in the Blackhawk related balance sheet repositioning by selling additional bonds with proceeds of $79.7 million used to reduce brokered CDs and wholesale borrowings, improving our net interest margin.”

“During the quarter, we completed the merger of Blackhawk into First Mid Bank & Trust and the related core system conversion. Our employees worked extremely hard to make the transition as seamless as possible for our customers in what was our largest, most complex integration. I am proud of the efforts of our team and their support of our customers,” Dively concluded.

Net Interest Income
Net interest income for the fourth quarter of 2023 increased by $7.0 million, or 13.9% compared to the third quarter of 2023. Interest income and interest expense increased in the quarter by $9.5 million and $2.5 million, respectively. The increase in interest income was primarily driven by the addition of Blackhawk, loan growth, and the repricing of loans with higher interest rates. Accretion income for the quarter was $4.6 million, an increase compared to $2.6 million in the prior quarter. The increase in interest expense was primarily driven by the addition of Blackhawk and higher interest rates. During the quarter, the Company sold $79.7 million of bonds and used the proceeds to payoff maturing brokered CDs and wholesale borrowings.         

In comparison to the fourth quarter of 2022, net interest income increased $11.8 million, or 25.8%. The increase was primarily driven by the addition of Blackhawk. For the same period, interest income increased by $29.2 million, while interest expense increased $17.4 million.                  

Net Interest Margin
Net interest margin, on a tax equivalent basis (non-GAAP), was 3.33% for the fourth quarter of 2023, which was 27 basis points higher compared to the prior quarter. Earning asset yields increased by 29 basis points and the average cost of funds increased 2 basis points.     

In comparison to the fourth quarter of last year, the net interest margin increased 26 basis points, with an average earning asset increase of 111 basis points versus the average cost of funds increase of 85 basis points.

Loan Portfolio
Total loans ended the quarter at $5.58 billion, representing an increase of $40.5 million. The growth was spread among several categories with the largest increase in Ag operating loans. Overall, loan demand slightly improved and we saw an increase in line draws during the period. Most of the new originations and renewed loans in the period were at rates in the 8.00% to 8.50% range.

Asset Quality 
The fourth quarter was another strong period with respect to the Company’s asset quality metrics. The allowance for credit losses (“ACL”) increased by $0.4 million to $68.7 million with an ending ACL to total loans ratio of 1.23%. In addition to the ACL, an unearned discount of $49.9 million remains at quarter end. Provision expense was recorded in the amount of $0.6 million with net charge offs of $0.1 million in the quarter. Also, at the end of the fourth quarter, the ratio of non-performing loans to total loans was 0.36%, and the ACL to non-performing loans was 341.19%.   The ratio of nonperforming assets to total assets was 0.28% and nonperforming loans were $20.1 million at quarter end. For the quarter, special mention loans were $74.1 million and substandard loans were $28.9 million.     

Deposits
Total deposits ended the quarter at $6.12 billion, which represented a decrease of $222.7 million from the prior quarter. Of the decline, $73.2 million came from time deposits, including brokered, where the Company used proceeds from its bond sales to pay these off at maturity. The remaining portion of the decline in balances was driven primarily by seasonal cash flow operating needs of commercial customers. Noninterest bearing deposits increased by $9.2 million in the quarter. The Company’s average rate on cost of funds increased to 1.85% compared to 1.83% in the prior quarter and 1.00% in the fourth quarter of 2022.             

Noninterest Income
Noninterest income represented 31% of our total net revenues for the year.

Noninterest income for the fourth quarter of 2023 was $21.8 million compared to $23.1 million in the third quarter of 2023.   Excluding securities gains for both periods, noninterest income increased $2.1 million in the current quarter. The increase was primarily driven by the full quarter benefit of Blackhawk, along with higher insurance revenues.  

In comparison to the fourth quarter of 2022, noninterest income increased $3.6 million, or 19.6%, due to a combination of organic growth and the addition of Blackhawk’s operating costs for the period.               

Noninterest Expenses     
Noninterest expense for the fourth quarter of 2023 totaled $57.0 million compared to $47.1 million in the prior quarter. The increase was primarily driven by the full quarter of Blackhawk and approximately $5.6 million in nonrecurring acquisition related costs.

In comparison to the fourth quarter of 2022, noninterest expenses increased $17.7 million. In addition to $5.6 million in nonrecurring integration related costs during the period, the increase was primarily driven by the addition of Blackhawk.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter 2023 was 58.9% compared to 58.6% in the prior quarter and 58.1% for the same period last year.

Capital Levels, Dividend and Taxes
The Company’s capital levels remained strong and above the “well capitalized” levels. Capital levels ended the period as follows:

Total capital to risk-weighted assets

14.84%

 

Tier 1 capital to risk-weighted assets

12.02%

 

Common equity tier 1 capital to risk-weighted assets

11.62%

 

Leverage ratio

9.33%

 

 

 

 

Tangible book value per share increased in the period to $22.20 on a combination of both earnings growth and improvement in the unrealized loss position in the bond portfolio impacting accumulated other comprehensive income (“AOCI”).

The Company’s Board of Directors approved a regular quarterly dividend of $0.23 payable on March 1, 2024 for shareholders of record on February 16, 2024.

The Company’s effective tax rate for the fourth quarter was 16.6% and 22.0% for the year. The lower rate in the current period was primarily due to $0.8 million of refunds for amendments filed on Wisconsin state taxes.

About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., and First Mid Wealth Management Co. First Mid is a $7.6 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, Texas, and Wisconsin and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 159 years. More information about the Company is available on our website at www.firstmid.com.

Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles (“GAAP”), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include “Adjusted Net Income,” “Adjusted Diluted EPS,” “Efficiency Ratio,” “Net Interest Margin, tax equivalent,” and “Tangible Book Value per Common Share”. While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.

Forward Looking Statements
This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid are identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid’s loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines; and the impact of the global COVID-19 pandemic on First Mid’s businesses. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid’s financial results, are included in First Mid’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.

Investor Contact:
Aaron Holt
VP, Shareholder Relations
217-258-0463
[email protected]

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

– Tables Follow –

 

 

 

 

 

 

 

 

 

FIRST MID BANCSHARES, INC.

 

 

Condensed Consolidated Balance Sheets

 

 

(In thousands, unaudited)

 

 

 

 

 

As of

 

 

December 31,

 

September 30,

 

December 31,

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

143,064

 

 

$

383,237

 

 

$

152,433

 

Investment securities

 

 

1,179,402

 

 

 

1,226,746

 

 

 

1,223,720

 

Loans (including loans held for sale)

 

 

5,580,565

 

 

 

5,540,065

 

 

 

4,826,212

 

Less allowance for credit losses

 

 

(68,675

)

 

 

(68,241

)

 

 

(59,093

)

Net loans

 

 

5,511,890

 

 

 

5,471,824

 

 

 

4,767,119

 

Premises and equipment, net

 

 

101,396

 

 

 

102,004

 

 

 

90,473

 

Goodwill and intangibles, net

 

 

264,231

 

 

 

267,793

 

 

 

169,897

 

Bank owned life insurance

 

 

166,125

 

 

 

165,022

 

 

 

151,756

 

Other assets

 

 

220,686

 

 

 

238,668

 

 

 

188,817

 

Total assets

 

$

7,586,794

 

 

$

7,855,294

 

 

$

6,744,215

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest bearing

 

$

1,398,234

 

 

$

1,389,022

 

 

$

1,256,514

 

Interest bearing

 

 

4,725,425

 

 

 

4,957,302

 

 

 

4,000,487

 

Total deposits

 

 

6,123,659

 

 

 

6,346,324

 

 

 

5,257,001

 

Repurchase agreement with customers

 

 

213,721

 

 

 

214,978

 

 

 

221,414

 

Other borrowings

 

 

263,787

 

 

 

364,953

 

 

 

465,071

 

Junior subordinated debentures

 

 

24,058

 

 

 

24,003

 

 

 

19,364

 

Subordinated debt

 

 

106,755

 

 

 

106,648

 

 

 

94,553

 

Other liabilities

 

 

61,610

 

 

 

60,440

 

 

 

53,657

 

Total liabilities

 

 

6,793,590

 

 

 

7,117,346

 

 

 

6,111,060

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

793,204

 

 

 

737,948

 

 

 

633,155

 

Total liabilities and stockholders' equity

 

$

7,586,794

 

 

$

7,855,294

 

 

$

6,744,215

 

 

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Condensed Consolidated Statements of Income

(In thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

December 31,

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

2023

 

 

2022

Interest income:

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

78,676

 

$

53,128

 

 

$

262,423

 

$

185,869

Interest on investment securities

 

 

8,515

 

 

7,285

 

 

 

32,119

 

 

29,380

Interest on federal funds sold & other deposits

 

 

2,736

 

 

296

 

 

 

5,624

 

 

642

Total interest income

 

 

89,927

 

 

60,709

 

 

 

300,166

 

 

215,891

Interest expense:

 

 

 

 

 

 

 

 

Interest on deposits

 

 

25,900

 

 

9,227

 

 

 

77,294

 

 

18,813

Interest on securities sold under agreements to repurchase

 

 

1,754

 

 

1,163

 

 

 

6,565

 

 

1,795

Interest on other borrowings

 

 

3,073

 

 

3,345

 

 

 

16,789

 

 

6,193

Interest on jr. subordinated debentures

 

 

545

 

 

315

 

 

 

1,859

 

 

868

Interest on subordinated debt

 

 

1,193

 

 

987

 

 

 

4,196

 

 

3,945

Total interest expense

 

 

32,465

 

 

15,037

 

 

 

106,703

 

 

31,614

Net interest income

 

 

57,462

 

 

45,672

 

 

 

193,463

 

 

184,277

Provision for credit losses

 

 

552

 

 

805

 

 

 

6,104

 

 

4,806

Net interest income after provision for loan

 

 

56,910

 

 

44,867

 

 

 

187,359

 

 

179,471

Non-interest income:

 

 

 

 

 

 

 

 

Wealth management revenues

 

 

4,998

 

 

6,201

 

 

 

20,793

 

 

22,492

Insurance commissions

 

 

5,398

 

 

4,719

 

 

 

24,814

 

 

21,622

Service charges

 

 

3,298

 

 

2,375

 

 

 

10,881

 

 

9,112

Net securities gains/(losses)

 

 

46

 

 

(48

)

 

 

3,383

 

 

33

Mortgage banking revenues

 

 

954

 

 

65

 

 

 

2,282

 

 

1,190

ATM/debit card revenue

 

 

4,233

 

 

3,209

 

 

 

14,347

 

 

12,422

Other

 

 

2,841

 

 

1,686

 

 

 

10,286

 

 

7,811

Total non-interest income

 

 

21,768

 

 

18,207

 

 

 

86,786

 

 

74,682

Non-interest expense:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

29,925

 

 

23,610

 

 

 

104,962

 

 

98,594

Net occupancy and equipment expense

 

 

7,977

 

 

6,126

 

 

 

26,946

 

 

24,257

Net other real estate owned (income) expense

 

 

800

 

 

87

 

 

 

1,862

 

 

330

FDIC insurance

 

 

1,015

 

 

464

 

 

 

3,339

 

 

1,805

Amortization of intangible assets

 

 

3,560

 

 

1,537

 

 

 

9,127

 

 

6,290

Stationary and supplies

 

 

404

 

 

298

 

 

 

1,346

 

 

1,295

Legal and professional expense

 

 

2,065

 

 

1,607

 

 

 

7,379

 

 

6,996

ATM/debit card expense

 

 

1,332

 

 

1,309

 

 

 

5,322

 

 

4,300

Marketing and donations

 

 

679

 

 

681

 

 

 

3,005

 

 

2,999

Other

 

 

9,268

 

 

3,653

 

 

 

22,452

 

 

15,995

Total non-interest expense

 

 

57,025

 

 

39,372

 

 

 

185,740

 

 

162,861

Income before income taxes

 

 

21,653

 

 

23,702

 

 

 

88,405

 

 

91,292

Income taxes

 

 

3,582

 

 

3,063

 

 

 

19,470

 

 

18,340

Net income

 

$

18,071

 

$

20,639

 

 

$

68,935

 

$

72,952

 

 

 

 

 

 

 

 

 

Per Share Information

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.76

 

$

1.01

 

 

$

3.17

 

$

3.62

Diluted earnings per common share

 

 

0.76

 

 

1.01

 

 

 

3.15

 

 

3.60

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

23,837,853

 

 

20,461,046

 

 

 

21,780,217

 

 

20,169,077

Diluted weighted average shares outstanding

 

 

23,921,758

 

 

20,535,220

 

 

 

21,868,788

 

 

20,243,635

 

 

 

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Condensed Consolidated Statements of Income

(In thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

2023

 

2023

 

2023

 

2023

 

2022

Interest income:

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

78,676

 

$

69,143

 

$

58,368

 

 

$

56,236

 

 

$

53,128

 

Interest on investment securities

 

 

8,515

 

 

9,284

 

 

7,193

 

 

 

7,127

 

 

 

7,285

 

Interest on federal funds sold & other deposits

 

 

2,736

 

 

2,011

 

 

569

 

 

 

308

 

 

 

296

 

Total interest income

 

 

89,927

 

 

80,438

 

 

66,130

 

 

 

63,671

 

 

 

60,709

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

25,900

 

 

22,047

 

 

16,580

 

 

 

12,767

 

 

 

9,227

 

Interest on securities sold under agreements to repurchase

 

 

1,754

 

 

1,625

 

 

1,723

 

 

 

1,463

 

 

 

1,163

 

Interest on other borrowings

 

 

3,073

 

 

4,749

 

 

4,084

 

 

 

4,883

 

 

 

3,345

 

Interest on jr. subordinated debentures

 

 

545

 

 

545

 

 

390

 

 

 

379

 

 

 

315

 

Interest on subordinated debt

 

 

1,193

 

 

1,029

 

 

986

 

 

 

988

 

 

 

987

 

Total interest expense

 

 

32,465

 

 

29,995

 

 

23,763

 

 

 

20,480

 

 

 

15,037

 

Net interest income

 

 

57,462

 

 

50,443

 

 

42,367

 

 

 

43,191

 

 

 

45,672

 

Provision for credit losses

 

 

552

 

 

5,911

 

 

458

 

 

 

(817

)

 

 

805

 

Net interest income after provision for loan

 

 

56,910

 

 

44,532

 

 

41,909

 

 

 

44,008

 

 

 

44,867

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Wealth management revenues

 

 

4,998

 

 

4,940

 

 

5,341

 

 

 

5,514

 

 

 

6,201

 

Insurance commissions

 

 

5,398

 

 

5,199

 

 

5,737

 

 

 

8,480

 

 

 

4,719

 

Service charges

 

 

3,298

 

 

2,994

 

 

2,386

 

 

 

2,203

 

 

 

2,375

 

Securities gains, net

 

 

46

 

 

3,389

 

 

(6

)

 

 

(46

)

 

 

(48

)

Mortgage banking revenues

 

 

954

 

 

846

 

 

332

 

 

 

150

 

 

 

65

 

ATM/debit card revenue

 

 

4,233

 

 

3,766

 

 

3,265

 

 

 

3,083

 

 

 

3,209

 

Other

 

 

2,841

 

 

1,919

 

 

2,431

 

 

 

3,095

 

 

 

1,686

 

Total non-interest income

 

 

21,768

 

 

23,053

 

 

19,486

 

 

 

22,479

 

 

 

18,207

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

29,925

 

 

25,422

 

 

23,544

 

 

 

26,071

 

 

 

23,610

 

Net occupancy and equipment expense

 

 

7,977

 

 

6,929

 

 

6,035

 

 

 

6,005

 

 

 

6,126

 

Net other real estate owned (income) expense

 

 

800

 

 

902

 

 

27

 

 

 

133

 

 

 

87

 

FDIC insurance

 

 

1,015

 

 

785

 

 

1,076

 

 

 

463

 

 

 

464

 

Amortization of intangible assets

 

 

3,560

 

 

2,568

 

 

1,477

 

 

 

1,522

 

 

 

1,537

 

Stationary and supplies

 

 

404

 

 

335

 

 

315

 

 

 

292

 

 

 

298

 

Legal and professional expense

 

 

2,065

 

 

1,844

 

 

1,780

 

 

 

1,690

 

 

 

1,607

 

ATM/debit card expense

 

 

1,332

 

 

1,751

 

 

1,016

 

 

 

1,223

 

 

 

1,309

 

Marketing and donations

 

 

679

 

 

764

 

 

908

 

 

 

654

 

 

 

681

 

Other

 

 

9,268

 

 

5,796

 

 

3,864

 

 

 

3,524

 

 

 

3,653

 

Total non-interest expense

 

 

57,025

 

 

47,096

 

 

40,042

 

 

 

41,577

 

 

 

39,372

 

Income before income taxes

 

 

21,653

 

 

20,489

 

 

21,353

 

 

 

24,910

 

 

 

23,702

 

Income taxes

 

 

3,582

 

 

5,372

 

 

4,786

 

 

 

5,730

 

 

 

3,063

 

Net income

 

$

18,071

 

$

15,117

 

$

16,567

 

 

$

19,180

 

 

$

20,639

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Information

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.76

 

$

0.68

 

$

0.81

 

 

$

0.94

 

 

$

1.01

 

Diluted earnings per common share

 

 

0.76

 

 

0.68

 

 

0.80

 

 

 

0.93

 

 

 

1.01

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

23,837,853

 

 

22,220,438

 

 

20,528,717

 

 

 

20,492,254

 

 

 

20,461,046

 

Diluted weighted average shares outstanding

 

 

23,921,758

 

 

22,319,334

 

 

20,628,239

 

 

 

20,563,972

 

 

 

20,535,220

 

 

 

 

 

 

 

 

 

 

 

 


 

 

FIRST MID BANCSHARES, INC.

 

 

Consolidated Financial Highlights and Ratios

 

 

(Dollars in thousands, except per share data)

 

 

(Unaudited)

 

 

As of and for the Quarter Ended

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

Loan Portfolio

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

205,077

 

 

$

189,206

 

 

$

151,574

 

 

$

159,157

 

 

$

144,264

 

Farm real estate loans

 

 

391,132

 

 

 

399,834

 

 

 

392,220

 

 

 

401,957

 

 

 

410,327

 

1-4 Family residential properties

 

 

542,469

 

 

 

531,699

 

 

 

418,932

 

 

 

424,545

 

 

 

440,180

 

Multifamily residential properties

 

 

319,129

 

 

 

327,067

 

 

 

303,482

 

 

 

301,808

 

 

 

294,346

 

Commercial real estate

 

 

2,384,704

 

 

 

2,392,834

 

 

 

2,056,529

 

 

 

2,003,647

 

 

 

2,030,011

 

Loans secured by real estate

 

 

3,842,511

 

 

 

3,840,640

 

 

 

3,322,737

 

 

 

3,291,114

 

 

 

3,319,128

 

Agricultural operating loans

 

 

196,272

 

 

 

179,447

 

 

 

148,318

 

 

 

146,847

 

 

 

166,838

 

Commercial and industrial loans

 

 

1,266,159

 

 

 

1,242,653

 

 

 

1,094,522

 

 

 

1,078,021

 

 

 

1,082,960

 

Consumer loans

 

 

91,014

 

 

 

99,542

 

 

 

80,241

 

 

 

88,430

 

 

 

97,775

 

All other loans

 

 

184,609

 

 

 

177,783

 

 

 

167,598

 

 

 

156,219

 

 

 

159,511

 

Total loans

 

 

5,580,565

 

 

 

5,540,065

 

 

 

4,813,416

 

 

 

4,760,631

 

 

 

4,826,212

 

 

 

 

 

 

 

 

 

 

 

 

Deposit Portfolio

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

1,398,234

 

 

$

1,389,022

 

 

$

1,171,047

 

 

$

1,262,181

 

 

$

1,256,514

 

Interest bearing demand deposits

 

 

1,837,296

 

 

 

1,940,162

 

 

 

1,477,765

 

 

 

1,419,791

 

 

 

1,389,283

 

Savings deposits

 

 

710,586

 

 

 

734,377

 

 

 

602,523

 

 

 

639,691

 

 

 

636,699

 

Money Market

 

 

1,129,950

 

 

 

1,161,957

 

 

 

923,259

 

 

 

878,452

 

 

 

1,267,726

 

Time deposits

 

 

1,047,593

 

 

 

1,120,806

 

 

 

1,044,991

 

 

 

830,663

 

 

 

706,779

 

Total deposits

 

 

6,123,659

 

 

 

6,346,324

 

 

 

5,219,585

 

 

 

5,030,778

 

 

 

5,257,001

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

$

20,128

 

 

$

21,269

 

 

$

18,637

 

 

$

15,163

 

 

$

19,170

 

Non-performing assets

 

 

21,292

 

 

 

23,565

 

 

 

22,615

 

 

 

19,225

 

 

 

23,539

 

Net charge-offs (recoveries)

 

 

118

 

 

 

181

 

 

 

(38

)

 

 

53

 

 

 

489

 

Allowance for credit losses to non-performing loans

 

 

341.19

%

 

 

320.85

%

 

 

315.07

%

 

 

383.98

%

 

 

308.26

%

Allowance for credit losses to total loans outstanding

 

 

1.23

%

 

 

1.23

%

 

 

1.22

%

 

 

1.22

%

 

 

1.22

%

Nonperforming loans to total loans

 

 

0.36

%

 

 

0.38

%

 

 

0.39

%

 

 

0.32

%

 

 

0.40

%

Nonperforming assets to total assets

 

 

0.28

%

 

 

0.30

%

 

 

0.34

%

 

 

0.29

%

 

 

0.35

%

Special Mention loans

 

 

74,050

 

 

 

73,732

 

 

 

40,687

 

 

 

47,022

 

 

 

39,853

 

Substandard and Doubtful loans

 

 

28,945

 

 

 

30,575

 

 

 

28,255

 

 

 

29,931

 

 

 

34,352

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

23,827,137

 

 

 

23,830,038

 

 

 

20,528,192

 

 

 

20,519,717

 

 

 

20,452,376

 

Book value per common share

 

$

33.29

 

 

$

30.97

 

 

$

32.18

 

 

$

32.26

 

 

$

30.96

 

Tangible book value per common share (1)

 

 

22.20

 

 

 

19.73

 

 

 

23.48

 

 

 

24.05

 

 

 

22.65

 

Tangible book value per common share excluding other comprehensive income at period end (1)

 

 

27.93

 

 

 

27.24

 

 

 

30.87

 

 

 

30.77

 

 

 

30.06

 

Market price of stock

 

 

34.66

 

 

 

26.56

 

 

 

24.14

 

 

 

27.22

 

 

 

32.08

 

 

 

 

 

 

 

 

 

 

 

 

Key Performance Ratios and Metrics

 

 

 

 

 

 

 

 

 

 

End of period earning assets

 

$

6,780,160

 

 

$

7,007,282

 

 

$

6,023,553

 

 

$

5,995,674

 

 

$

6,063,953

 

Average earning assets

 

 

6,948,309

 

 

 

6,593,781

 

 

 

6,049,626

 

 

 

6,052,264

 

 

 

6,000,106

 

Average rate on average earning assets (tax equivalent)

 

 

5.18

%

 

 

4.89

%

 

 

4.43

%

 

 

4.32

%

 

 

4.07

%

Average rate on cost of funds

 

 

1.85

%

 

 

1.83

%

 

 

1.59

%

 

 

1.38

%

 

 

1.00

%

Net interest margin (tax equivalent) (1)

 

 

3.33

%

 

 

3.06

%

 

 

2.84

%

 

 

2.94

%

 

 

3.07

%

Return on average assets

 

 

0.93

%

 

 

0.90

%

 

 

0.99

%

 

 

1.15

%

 

 

1.24

%

Adjusted return on average assets (1)

 

 

1.16

%

 

 

0.94

%

 

 

1.03

%

 

 

1.18

%

 

 

1.25

%

Return on average common equity

 

 

9.76

%

 

 

8.70

%

 

 

10.07

%

 

 

12.11

%

 

 

13.51

%

Adjusted return on average common equity (1)

 

 

12.11

%

 

 

9.82

%

 

 

10.42

%

 

 

11.92

%

 

 

13.60

%

Efficiency ratio (tax equivalent) (1)

 

 

58.91

%

 

 

58.60

%

 

 

60.37

%

 

 

59.01

%

 

 

58.07

%

Full-time equivalent employees

 

 

1,187

 

 

 

1,224

 

 

 

995

 

 

 

988

 

 

 

1,043

 

 

 

 

 

 

 

 

 

 

 

 

1 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.

 

 

 

 

 

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Net Interest Margin

(In thousands, unaudited)

 

 

For the Quarter Ended December 31, 2023

 

 

QTD Average

 

 

 

Average

 

 

Balance

 

Interest

 

Rate

INTEREST EARNING ASSETS

 

 

 

 

 

 

Interest bearing deposits

 

$

186,849

 

 

$

2,560

 

5.44

%

Federal funds sold

 

 

8,842

 

 

 

122

 

5.47

%

Certificates of deposits investments

 

 

1,630

 

 

 

54

 

13.14

%

Investment Securities:

 

 

 

 

 

 

Taxable (total less municipals)

 

 

946,620

 

 

 

6,522

 

2.76

%

Tax-exempt (Municipals)

 

 

259,662

 

 

 

2,524

 

3.89

%

Loans (net of unearned income)

 

 

5,544,706

 

 

 

78,938

 

5.65

%

 

 

 

 

 

 

 

Total interest earning assets

 

 

6,948,309

 

 

 

90,720

 

5.18

%

 

 

 

 

 

 

 

NONEARNING ASSETS

 

 

 

 

 

 

Cash and due from banks

 

 

137,282

 

 

 

 

 

Premises and equipment

 

 

101,641

 

 

 

 

 

Other nonearning assets

 

 

618,063

 

 

 

 

 

Allowance for loan losses

 

 

(68,584

)

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

7,736,711

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST BEARING LIABILITIES

 

 

 

 

 

 

Demand deposits

 

$

2,999,731

 

 

$

16,077

 

2.13

%

Savings deposits

 

 

724,347

 

 

 

190

 

0.10

%

Time deposits

 

 

1,074,569

 

 

 

9,633

 

3.56

%

Total interest bearing deposits

 

 

4,798,647

 

 

 

25,900

 

2.14

%

Repurchase agreements

 

 

230,977

 

 

 

1,754

 

3.01

%

FHLB advances

 

 

336,939

 

 

 

3,060

 

3.60

%

Federal funds purchased

 

 

-

 

 

 

1

 

0.00

%

Subordinated debt

 

 

106,684

 

 

 

1,193

 

4.44

%

Jr. subordinated debentures

 

 

24,029

 

 

 

545

 

9.00

%

Other debt

 

 

-

 

 

 

12

 

0.00

%

Total borrowings

 

 

698,629

 

 

 

6,565

 

3.73

%

Total interest bearing liabilities

 

 

5,497,276

 

 

 

32,465

 

2.34

%

 

 

 

 

 

 

 

NONINTEREST BEARING LIABILITIES

 

 

 

 

 

 

Demand deposits

 

 

1,463,572

 

 

Average cost of funds

1.85

%

Other liabilities

 

 

35,248

 

 

 

 

 

Stockholders' equity

 

 

740,615

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities & stockholders' equity

 

$

7,736,711

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Earnings / Spread

 

 

 

$

58,255

 

2.84

%

 

 

 

 

 

 

 

Impact of Non-Interest Bearing Funds

 

 

 

 

 

0.49

%

 

 

 

 

 

 

 

Tax effected yield on interest earning assets

 

 

 

 

 

 

 

3.33

%

 

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Reconciliation of Non-GAAP Financial Measures

(In thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Quarter Ended

 

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

 

2023

 

2023

 

2023

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

Net interest income as reported

 

$

57,462

 

 

$

50,443

 

 

$

42,367

 

 

$

43,191

 

 

$

45,672

 

Net interest income, (tax equivalent)

 

 

58,255

 

 

 

51,212

 

 

 

43,109

 

 

 

43,947

 

 

 

46,464

 

Average earning assets

 

 

6,948,309

 

 

 

6,593,781

 

 

 

6,049,626

 

 

 

6,052,264

 

 

 

6,000,106

 

Net interest margin (tax equivalent)

 

 

3.33

%

 

 

3.06

%

 

 

2.84

%

 

 

2.94

%

 

 

3.07

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stockholder's equity

 

$

793,204

 

 

$

737,948

 

 

$

660,687

 

 

$

661,865

 

 

$

633,155

 

Goodwill and intangibles, net

 

 

264,231

 

 

 

267,793

 

 

 

178,615

 

 

 

168,373

 

 

 

169,897

 

Common shares outstanding

 

 

23,827

 

 

 

23,830

 

 

 

20,528

 

 

 

20,520

 

 

 

20,452

 

Tangible Book Value per common share

 

$

22.20

 

 

$

19.73

 

 

$

23.48

 

 

$

24.05

 

 

$

22.65

 

Accumulated other comprehensive loss (AOCI)

 

 

(136,427

)

 

 

(178,903

)

 

 

(151,566

)

 

 

(137,901

)

 

 

(151,507

)

Adjusted tangible book value per common share

 

$

27.93

 

 

$

27.24

 

 

$

30.87

 

 

$

30.77

 

 

$

30.06

 

 

 

 

 

 

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Quarter Ended

 

 

December 31,

 

September 30,

June 30,

 

March 31,

 

December 31,

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2022

 

Adjusted earnings Reconciliation

 

 

 

 

 

 

 

 

 

 

Net Income - GAAP

 

$

18,071

 

 

$

15,117

 

 

$

16,567

 

 

$

19,180

 

 

$

20,639

 

Adjustments (post-tax): (1)

 

 

 

 

 

 

 

 

 

 

Acquisition ACL on non-PCD assets in provision expense

 

 

-

 

 

 

2,985

 

 

 

-

 

 

 

-

 

 

 

-

 

Nonrecurring severance expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

416

 

 

 

-

 

Net (gain)/loss on securities sales

 

 

(36

)

 

 

(2,677

)

 

 

-

 

 

 

-

 

 

 

-

 

Integration and acquisition expenses

 

 

4,385

 

 

 

1,653

 

 

 

589

 

 

 

135

 

 

 

131

 

Total non-recurring adjustments (non-GAAP)

 

$

4,348

 

 

$

1,962

 

 

$

589

 

 

$

551

 

 

$

131

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings - non-GAAP

 

$

22,419

 

 

$

17,079

 

 

$

17,156

 

 

$

19,731

 

 

$

20,770

 

Adjusted diluted earnings per share (non-GAAP)

 

$

0.94

 

 

$

0.77

 

 

$

0.83

 

 

$

0.96

 

 

$

1.01

 

Adjusted return on average assets - non-GAAP

 

 

1.16

%

 

 

0.94

%

 

 

1.03

%

 

 

1.18

%

 

 

1.25

%

Adjusted return on average common equity - non-GAAP

 

 

12.11

%

 

 

9.82

%

 

 

10.42

%

 

 

11.92

%

 

 

13.60

%

 

 

 

 

 

 

 

 

 

 

 

Efficiency Ratio Reconciliation

 

 

 

 

 

 

 

 

 

 

Noninterest expense - GAAP

 

$

57,025

 

 

$

47,096

 

 

$

40,042

 

 

$

41,577

 

 

$

39,372

 

Other real estate owned property income (expense)

 

 

(800

)

 

 

(902

)

 

 

(27

)

 

 

(133

)

 

 

(87

)

Amortization of intangibles

 

 

(3,560

)

 

 

(2,568

)

 

 

(1,477

)

 

 

(1,522

)

 

 

(1,537

)

Nonrecurring severance expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(527

)

 

 

-

 

Integration and acquisition expenses

 

 

(5,550

)

 

 

(2,093

)

 

 

(745

)

 

 

(171

)

 

 

(166

)

Adjusted noninterest expense (non-GAAP)

 

$

47,115

 

 

$

41,533

 

 

$

37,793

 

 

$

39,224

 

 

$

37,582

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income -GAAP

 

$

57,462

 

 

$

50,443

 

 

$

42,367

 

 

$

43,192

 

 

$

45,672

 

Effect of tax-exempt income (1)

 

 

793

 

 

 

769

 

 

 

742

 

 

 

755

 

 

 

792

 

Adjusted net interest income (non-GAAP)

 

$

58,255

 

 

$

51,212

 

 

$

43,109

 

 

$

43,947

 

 

$

46,464

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income - GAAP

 

$

21,768

 

 

$

23,053

 

 

$

19,486

 

 

$

22,479

 

 

$

18,207

 

Net (gain)/loss on securities sales

 

 

(46

)

 

 

(3,389

)

 

 

6

 

 

 

46

 

 

 

48

 

Adjusted noninterest income (non-GAAP)

 

$

21,722

 

 

$

19,664

 

 

$

19,492

 

 

$

22,525

 

 

$

18,255

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted total revenue (non-GAAP)

 

$

79,977

 

 

$

70,876

 

 

$

62,601

 

 

$

66,472

 

 

$

64,719

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (non-GAAP)

 

 

58.91

%

 

 

58.60

%

 

 

60.37

%

 

 

59.01

%

 

 

58.07

%

 

 

 

 

 

 

 

 

 

 

 

(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.