First Mid Bancshares, Inc. Announces First Quarter 2024 Results

First Mid Bancshares, Inc.

In This Article:

MATTOON, Ill., April 24, 2024 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended March 31, 2024.

Highlights

  • Net income of $20.5 million, or $0.86 diluted EPS

  • Adjusted net income (non-GAAP) of $22.3 million, or $0.93 diluted EPS

  • Strong asset quality performance with minimal net charge offs and lower classifieds

  • Insurance revenues drive record high quarter of noninterest income

  • Named Top Workplace by USA Today

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

“Coming off an eventful year for our industry, I am pleased with the way we started 2024,” said Joe Dively, Chairman and Chief Executive Officer. “The benefits of adding Blackhawk are shining through with a stable core margin, significant liquidity, and continued asset quality strength. Our revenue diversification continues to be a differentiator for us as we achieved a new record high in noninterest income on the growth and seasonality in insurance revenues.   Finally, I am extremely proud of the national recognition to be named a top workplace by USA Today. We understand and foster an environment where we prioritize a culture of engagement where our employees feel valued, empowered, and connected to a broader mission of serving our customers and communities.”

Net Interest Income
Net interest income for the first quarter of 2024 decreased by $2.0 million, or 3.5% compared to the fourth quarter of 2023. The decline was primarily the result of lower loan balances and less accretion income. Interest income declined by $2.3 million in the quarter, which included a decline of $0.9 million in accretion income. Accretion income in the period totaled $3.6 million. Interest expense declined $0.3 million in the quarter primarily driven by less FHLB borrowings outstanding on an increase in overall liquidity position.            

In comparison to the first quarter of 2023, net interest income increased $12.3 million, or 28.4%.   The increase was primarily driven by the addition of Blackhawk. For the same period, interest income increased by $24.0 million, while interest expense increased $11.7 million.                  

Net Interest Margin
Net interest margin, on a tax equivalent basis (non-GAAP), was 3.25% for the first quarter of 2024. While this was an 8 basis point decline compared to the prior quarter, the margin only declined by 2 basis points when the decline of $0.9 million in accretion income is considered.   Earning asset yields declined by 2 basis points and the average cost of funds increased 6 basis points.        

In comparison to the first quarter of last year, the net interest margin increased 31 basis points, with an average earning asset increase of 84 basis points versus the average cost of funds increase of 53 basis points.

Loan Portfolio
Total loans ended the quarter at $5.50 billion, representing a decrease of $81.3 million from the prior quarter. The declines were spread across all categories, except for Ag operating loans which increased $16.9 million.   The portfolio experienced larger than normal paydowns of lines in the C&I sector during the quarter. The loan portfolio continues to be well diversified both geographically and by industry.   Non-medical office exposure is approximately 3.7% of the portfolio with minimal exposure to urban markets.           

Asset Quality
The first quarter was another strong period with respect to the Company’s asset quality metrics. The allowance for credit losses (“ACL”) ended the period at $67.9 million and the ACL to total loans ratio increased to 1.24%. In addition to the ACL, an unearned discount of $46.3 million remains at quarter end. Provision expense was recorded as a credit in the amount of $0.4 million with net charge offs of $0.4 million in the quarter. Also, at the end of the first quarter, the ratio of non-performing loans to total loans was 0.36%, and the ACL to non-performing loans was 338.6%.   The ratio of nonperforming assets to total assets was 0.28% and nonperforming loans were $20.1 million at quarter end. Special mention loans declined $8.4 million in the quarter to $65.6 million and substandard loans increased $0.4 million to $29.3 million.   

Deposits
Total deposits ended the quarter at $6.24 billion, which represented an increase of $119.3 million from the prior quarter. Noninterest bearing deposits increased by $50.0 million and interest-bearing demand deposits increased by $137.6 million in the period. Approximately $50.0 million of the total increase was short-term normal cash flow needs of certain customers that came in late in the quarter and was disbursed early in the second quarter.   With the Company’s strong liquidity position, it has been able to manage the pressure on the funding costs with a focus on relationship pricing and allowing other funding, such as brokered CDs, to roll off.                   

Noninterest Income
Noninterest income for the first quarter of 2024 was a record high of $24.5 million compared to $21.8 million in the fourth quarter of 2023.   The increase was primarily driven by a new high in insurance revenues, which are also seasonally highest in the first quarter, with an increase of $3.8 million. Wealth management revenues increased $0.3 million and assets under management increased to $6.2 billion. Mortgage banking and all other banking fees declined in the quarter.   

In comparison to the first quarter of 2023, noninterest income increased $2.0 million, or 8.9%, due to a combination of organic growth and the addition of Blackhawk.   Insurance revenues increased by $0.7 million, or 8.7% compared to the first quarter of 2024.                 

Noninterest Expenses     
Noninterest expense for the first quarter of 2024 totaled $53.4 million compared to $57.0 million in the prior quarter. The current quarter included $2.3 million of nonrecurring integration related costs, which was a decrease of $3.3 million from the prior quarter. In addition, the Company recorded a credit for $0.9 million in debit card fees for a negotiated agreement with its primary provider.

In comparison to the first quarter of 2023, noninterest expenses increased $11.8 million. The increase was primarily driven by the addition of Blackhawk. Nonrecurring costs were $2.3 million in the current quarter and $0.2 million in the same quarter last year.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the first quarter 2024 was 59.1% compared to 58.9% in the prior quarter and 59.0% for the same period last year.

Capital Levels and Dividend
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

 

15.35%

Tier 1 capital to risk-weighted assets

 

12.46%

Common equity tier 1 capital to risk-weighted assets

 

12.06%

Leverage ratio

 

9.71%

Tangible book value per common share increased in the period to $22.49 with earnings growth more than offsetting a negative $11.2 million impact to accumulated other comprehensive income (“AOCI”) from an increase in the unrealized loss position in the bond portfolio.

The Company’s Board of Directors approved a regular quarterly dividend of $0.23 payable on May 31, 2024, for shareholders of record on May 15, 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 $7.7 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, 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

 

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

355,701

 

 

$

143,064

 

 

$

169,134

 

Investment securities

 

 

1,149,752

 

 

 

1,179,402

 

 

 

1,217,754

 

Loans (including loans held for sale)

 

 

5,499,295

 

 

 

5,580,565

 

 

 

4,760,631

 

Less allowance for credit losses

 

 

(67,936

)

 

 

(68,675

)

 

 

(58,223

)

Net loans

 

 

5,431,359

 

 

 

5,511,890

 

 

 

4,702,408

 

Premises and equipment, net

 

 

101,666

 

 

 

101,396

 

 

 

90,178

 

Goodwill and intangibles, net

 

 

260,699

 

 

 

264,231

 

 

 

168,373

 

Bank Owned Life Insurance

 

 

167,247

 

 

 

166,125

 

 

 

151,366

 

Other assets

 

 

211,822

 

 

 

220,686

 

 

 

183,637

 

Total assets

 

$

7,678,246

 

 

$

7,586,794

 

 

$

6,682,850

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest bearing

 

$

1,448,299

 

 

$

1,398,234

 

 

$

1,262,181

 

Interest bearing

 

 

4,794,637

 

 

 

4,725,425

 

 

 

3,768,597

 

Total deposits

 

 

6,242,936

 

 

 

6,123,659

 

 

 

5,030,778

 

Repurchase agreements with customers

 

 

210,719

 

 

 

213,721

 

 

 

228,664

 

Other borrowings

 

 

238,761

 

 

 

263,787

 

 

 

595,021

 

Junior subordinated debentures

 

 

24,113

 

 

 

24,058

 

 

 

19,406

 

Subordinated debt

 

 

106,862

 

 

 

106,755

 

 

 

94,593

 

Other liabilities

 

 

56,903

 

 

 

61,610

 

 

 

52,523

 

Total liabilities

 

 

6,880,294

 

 

 

6,793,590

 

 

 

6,020,985

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

797,952

 

 

 

793,204

 

 

 

661,865

 

Total liabilities and stockholders' equity

 

$

7,678,246

 

 

$

7,586,794

 

 

$

6,682,850

 

 

 

 

 

 

 

 


 

 

 

 

 

FIRST MID BANCSHARES, INC.

Condensed Consolidated Statements of Income

(In thousands, except per share data, unaudited)

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

 

 

 

2024

 

 

 

2023

 

Interest income:

 

 

 

 

Interest and fees on loans

 

$

77,823

 

 

$

56,236

 

Interest on investment securities

 

 

7,405

 

 

 

7,127

 

Interest on federal funds sold & other deposits

 

 

2,444

 

 

 

308

 

Total interest income

 

 

87,672

 

 

 

63,671

 

Interest expense:

 

 

 

 

Interest on deposits

 

 

26,096

 

 

 

12,767

 

Interest on securities sold under agreements to repurchase

 

 

2,056

 

 

 

1,463

 

Interest on other borrowings

 

 

2,314

 

 

 

4,883

 

Interest on jr. subordinated debentures

 

 

542

 

 

 

379

 

Interest on subordinated debt

 

 

1,194

 

 

 

988

 

Total interest expense

 

 

32,202

 

 

 

20,480

 

Net interest income

 

 

55,470

 

 

 

43,191

 

Provision for credit losses

 

 

(357

)

 

 

(817

)

Net interest income after provision for loan

 

 

55,827

 

 

 

44,008

 

Non-interest income:

 

 

 

 

Wealth management revenues

 

 

5,322

 

 

 

5,514

 

Insurance commissions

 

 

9,213

 

 

 

8,480

 

Service charges

 

 

2,956

 

 

 

2,203

 

Net securities gains/(losses)

 

 

0

 

 

 

(46

)

Mortgage banking revenues

 

 

706

 

 

 

150

 

ATM/debit card revenue

 

 

4,055

 

 

 

3,083

 

Other

 

 

2,226

 

 

 

3,095

 

Total non-interest income

 

 

24,478

 

 

 

22,479

 

Non-interest expense:

 

 

 

 

Salaries and employee benefits

 

 

30,448

 

 

 

26,071

 

Net occupancy and equipment expense

 

 

7,560

 

 

 

6,005

 

Net other real estate owned (income) expense

 

 

(21

)

 

 

133

 

FDIC insurance

 

 

869

 

 

 

463

 

Amortization of intangible assets

 

 

3,497

 

 

 

1,522

 

Stationary and supplies

 

 

391

 

 

 

292

 

Legal and professional expense

 

 

2,449

 

 

 

1,690

 

ATM/debit card expense

 

 

1,191

 

 

 

1,223

 

Marketing and donations

 

 

862

 

 

 

654

 

Other

 

 

6,116

 

 

 

3,524

 

Total non-interest expense

 

 

53,362

 

 

 

41,577

 

Income before income taxes

 

 

26,943

 

 

 

24,910

 

Income taxes

 

 

6,440

 

 

 

5,730

 

Net income

 

$

20,503

 

 

$

19,180

 

 

 

 

 

 

Per Share Information

 

 

 

 

Basic earnings per common share

 

$

0.86

 

 

$

0.94

 

Diluted earnings per common share

 

 

0.86

 

 

 

0.93

 

 

 

 

 

 

Weighted average shares outstanding

 

 

23,872,731

 

 

 

20,492,254

 

Diluted weighted average shares outstanding

 

 

23,960,335

 

 

 

20,563,972

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

FIRST MID BANCSHARES, INC.

Condensed Consolidated Statements of Income

(In thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

 

2024

 

 

 

2023

 

 

2023

 

 

2023

 

 

 

2023

 

Interest income:

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

77,823

 

 

$

78,676

 

$

69,143

 

$

58,368

 

 

$

56,236

 

Interest on investment securities

 

 

7,405

 

 

 

8,515

 

 

9,284

 

 

7,193

 

 

 

7,127

 

Interest on federal funds sold & other deposits

 

 

2,444

 

 

 

2,736

 

 

2,011

 

 

569

 

 

 

308

 

Total interest income

 

 

87,672

 

 

 

89,927

 

 

80,438

 

 

66,130

 

 

 

63,671

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

26,096

 

 

 

25,900

 

 

22,047

 

 

16,580

 

 

 

12,767

 

Interest on securities sold under agreements to repurchase

 

 

2,056

 

 

 

1,754

 

 

1,625

 

 

1,723

 

 

 

1,463

 

Interest on other borrowings

 

 

2,314

 

 

 

3,073

 

 

4,749

 

 

4,084

 

 

 

4,883

 

Interest on jr. subordinated debentures

 

 

542

 

 

 

545

 

 

545

 

 

390

 

 

 

379

 

Interest on subordinated debt

 

 

1,194

 

 

 

1,193

 

 

1,029

 

 

986

 

 

 

988

 

Total interest expense

 

 

32,202

 

 

 

32,465

 

 

29,995

 

 

23,763

 

 

 

20,480

 

Net interest income

 

 

55,470

 

 

 

57,462

 

 

50,443

 

 

42,367

 

 

 

43,191

 

Provision for credit losses

 

 

(357

)

 

 

552

 

 

5,911

 

 

458

 

 

 

(817

)

Net interest income after provision for loan

 

 

55,827

 

 

 

56,910

 

 

44,532

 

 

41,909

 

 

 

44,008

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Wealth management revenues

 

 

5,322

 

 

 

4,998

 

 

4,940

 

 

5,341

 

 

 

5,514

 

Insurance commissions

 

 

9,213

 

 

 

5,398

 

 

5,199

 

 

5,737

 

 

 

8,480

 

Service charges

 

 

2,956

 

 

 

3,298

 

 

2,994

 

 

2,386

 

 

 

2,203

 

Securities gains, net

 

 

0

 

 

 

46

 

 

3,389

 

 

(6

)

 

 

(46

)

Mortgage banking revenues

 

 

706

 

 

 

954

 

 

846

 

 

332

 

 

 

150

 

ATM/debit card revenue

 

 

4,055

 

 

 

4,233

 

 

3,766

 

 

3,265

 

 

 

3,083

 

Other

 

 

2,226

 

 

 

2,841

 

 

1,919

 

 

2,431

 

 

 

3,095

 

Total non-interest income

 

 

24,478

 

 

 

21,768

 

 

23,053

 

 

19,486

 

 

 

22,479

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

30,448

 

 

 

29,925

 

 

25,422

 

 

23,544

 

 

 

26,071

 

Net occupancy and equipment expense

 

 

7,560

 

 

 

7,977

 

 

6,929

 

 

6,035

 

 

 

6,005

 

Net other real estate owned (income) expense

 

 

(21

)

 

 

800

 

 

902

 

 

27

 

 

 

133

 

FDIC insurance

 

 

869

 

 

 

1,015

 

 

785

 

 

1,076

 

 

 

463

 

Amortization of intangible assets

 

 

3,497

 

 

 

3,560

 

 

2,568

 

 

1,477

 

 

 

1,522

 

Stationary and supplies

 

 

391

 

 

 

404

 

 

335

 

 

315

 

 

 

292

 

Legal and professional expense

 

 

2,449

 

 

 

2,065

 

 

1,844

 

 

1,780

 

 

 

1,690

 

ATM/debit card expense

 

 

1,191

 

 

 

1,332

 

 

1,751

 

 

1,016

 

 

 

1,223

 

Marketing and donations

 

 

862

 

 

 

679

 

 

764

 

 

908

 

 

 

654

 

Other

 

 

6,116

 

 

 

9,268

 

 

5,796

 

 

3,864

 

 

 

3,524

 

Total non-interest expense

 

 

53,362

 

 

 

57,025

 

 

47,096

 

 

40,042

 

 

 

41,577

 

Income before income taxes

 

 

26,943

 

 

 

21,653

 

 

20,489

 

 

21,353

 

 

 

24,910

 

Income taxes

 

 

6,440

 

 

 

3,582

 

 

5,372

 

 

4,786

 

 

 

5,730

 

Net income

 

$

20,503

 

 

$

18,071

 

$

15,117

 

$

16,567

 

 

$

19,180

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Information

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.86

 

 

$

0.76

 

$

0.68

 

$

0.81

 

 

$

0.94

 

Diluted earnings per common share

 

 

0.86

 

 

 

0.76

 

 

0.68

 

 

0.80

 

 

 

0.93

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

23,872,731

 

 

 

23,837,853

 

 

22,220,438

 

 

20,528,717

 

 

 

20,492,254

 

Diluted weighted average shares outstanding

 

 

23,960,335

 

 

 

23,921,758

 

 

22,319,334

 

 

20,628,239

 

 

 

20,563,972

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

FIRST MID BANCSHARES, INC.

 

 

Consolidated Financial Highlights and Ratios

 

 

(Dollars in thousands, except per share data)

 

 

(Unaudited)

 

 

As of and for the Quarter Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Loan Portfolio

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

186,851

 

 

$

205,077

 

 

$

189,206

 

 

$

151,574

 

 

$

159,157

 

Farm real estate loans

 

 

388,941

 

 

 

391,132

 

 

 

399,834

 

 

 

392,220

 

 

 

401,957

 

1-4 Family residential properties

 

 

518,641

 

 

 

542,469

 

 

 

531,699

 

 

 

418,932

 

 

 

424,545

 

Multifamily residential properties

 

 

312,758

 

 

 

319,129

 

 

 

327,067

 

 

 

303,482

 

 

 

301,808

 

Commercial real estate

 

 

2,396,092

 

 

 

2,384,704

 

 

 

2,392,834

 

 

 

2,056,529

 

 

 

2,003,647

 

Loans secured by real estate

 

 

3,803,283

 

 

 

3,842,511

 

 

 

3,840,640

 

 

 

3,322,737

 

 

 

3,291,114

 

Agricultural operating loans

 

 

213,217

 

 

 

196,272

 

 

 

179,447

 

 

 

148,318

 

 

 

146,847

 

Commercial and industrial loans

 

 

1,227,906

 

 

 

1,266,159

 

 

 

1,242,653

 

 

 

1,094,522

 

 

 

1,078,021

 

Consumer loans

 

 

79,569

 

 

 

91,014

 

 

 

99,542

 

 

 

80,241

 

 

 

88,430

 

All other loans

 

 

175,320

 

 

 

184,609

 

 

 

177,783

 

 

 

167,598

 

 

 

156,219

 

Total loans

 

 

5,499,295

 

 

 

5,580,565

 

 

 

5,540,065

 

 

 

4,813,416

 

 

 

4,760,631

 

 

 

 

 

 

 

 

 

 

 

 

Deposit Portfolio

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

1,448,299

 

 

$

1,398,234

 

 

$

1,389,022

 

 

$

1,171,047

 

 

$

1,262,181

 

Interest bearing demand deposits

 

 

1,974,857

 

 

 

1,837,296

 

 

 

1,940,162

 

 

 

1,477,765

 

 

 

1,419,791

 

Savings deposits

 

 

704,777

 

 

 

710,586

 

 

 

734,377

 

 

 

602,523

 

 

 

639,691

 

Money Market

 

 

1,107,177

 

 

 

1,129,950

 

 

 

1,161,957

 

 

 

923,259

 

 

 

878,452

 

Time deposits

 

 

1,007,826

 

 

 

1,047,593

 

 

 

1,120,806

 

 

 

1,044,991

 

 

 

830,663

 

Total deposits

 

 

6,242,936

 

 

 

6,123,659

 

 

 

6,346,324

 

 

 

5,219,585

 

 

 

5,030,778

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

$

20,064

 

 

$

20,128

 

 

$

21,269

 

 

$

18,637

 

 

$

15,163

 

Non-performing assets

 

 

21,471

 

 

 

21,292

 

 

 

23,565

 

 

 

22,615

 

 

 

19,225

 

Net charge-offs (recoveries)

 

 

381

 

 

 

118

 

 

 

181

 

 

 

(38

)

 

 

53

 

Allowance for credit losses to non-performing loans

 

 

338.60

%

 

 

341.19

%

 

 

320.85

%

 

 

315.07

%

 

 

383.98

%

Allowance for credit losses to total loans outstanding

 

 

1.24

%

 

 

1.23

%

 

 

1.23

%

 

 

1.22

%

 

 

1.22

%

Nonperforming loans to total loans

 

 

0.36

%

 

 

0.36

%

 

 

0.38

%

 

 

0.39

%

 

 

0.32

%

Nonperforming assets to total assets

 

 

0.28

%

 

 

0.28

%

 

 

0.30

%

 

 

0.34

%

 

 

0.29

%

Special Mention loans

 

 

65,693

 

 

 

74,050

 

 

 

73,732

 

 

 

40,687

 

 

 

47,022

 

Substandard and Doubtful loans

 

 

29,296

 

 

 

28,945

 

 

 

30,575

 

 

 

28,255

 

 

 

29,931

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

23,888,929

 

 

 

23,827,137

 

 

 

23,830,038

 

 

 

20,528,192

 

 

 

20,519,717

 

Book value per common share

 

$

33.40

 

 

$

33.29

 

 

$

30.97

 

 

$

32.18

 

 

$

32.26

 

Tangible book value per common share (1)

 

 

22.49

 

 

 

22.20

 

 

 

19.73

 

 

 

23.48

 

 

 

24.05

 

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

 

 

28.67

 

 

 

27.93

 

 

 

27.24

 

 

 

30.87

 

 

 

30.77

 

Market price of stock

 

 

32.68

 

 

 

34.66

 

 

 

26.56

 

 

 

24.14

 

 

 

27.22

 

 

 

 

 

 

 

 

 

 

 

 

Key Performance Ratios and Metrics

 

 

 

 

 

 

 

 

 

 

End of period earning assets

 

$

6,923,742

 

 

$

6,780,160

 

 

$

7,007,282

 

 

$

6,023,553

 

 

$

5,995,674

 

Average earning assets

 

 

6,884,855

 

 

 

6,948,309

 

 

 

6,593,781

 

 

 

6,049,626

 

 

 

6,052,264

 

Average rate on average earning assets (tax equivalent)

 

 

5.16

%

 

 

5.18

%

 

 

4.89

%

 

 

4.43

%

 

 

4.32

%

Average rate on cost of funds

 

 

1.91

%

 

 

1.85

%

 

 

1.83

%

 

 

1.59

%

 

 

1.38

%

Net interest margin (tax equivalent) (1)

 

 

3.25

%

 

 

3.33

%

 

 

3.06

%

 

 

2.84

%

 

 

2.94

%

Return on average assets

 

 

1.07

%

 

 

0.93

%

 

 

0.90

%

 

 

0.99

%

 

 

1.15

%

Adjusted return on average assets (1)

 

 

1.17

%

 

 

1.16

%

 

 

0.94

%

 

 

1.03

%

 

 

1.18

%

Return on average common equity

 

 

10.37

%

 

 

9.76

%

 

 

8.70

%

 

 

10.07

%

 

 

12.11

%

Adjusted return on average common equity (1)

 

 

11.28

%

 

 

12.11

%

 

 

9.82

%

 

 

10.42

%

 

 

11.92

%

Efficiency ratio (tax equivalent) (1)

 

 

59.09

%

 

 

58.91

%

 

 

58.60

%

 

 

60.37

%

 

 

59.01

%

Full-time equivalent employees

 

 

1,188

 

 

 

1,187

 

 

 

1,224

 

 

 

995

 

 

 

988

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 March 31, 2024

 

QTD Average

 

 

 

Average

 

Balance

 

Interest

 

Rate

INTEREST EARNING ASSETS

 

 

 

 

 

Interest bearing deposits

$

173,365

 

 

$

2,407

 

5.58

%

Federal funds sold

 

1,094

 

 

 

17

 

6.25

%

Certificates of deposits investments

 

1,545

 

 

 

20

 

5.21

%

Investment Securities:

 

 

 

 

 

Taxable (total less municipals)

 

904,451

 

 

 

5,470

 

2.42

%

Tax-exempt (Municipals)

 

280,215

 

 

 

2,450

 

3.50

%

Loans (net of unearned income)

 

5,524,185

 

 

 

77,924

 

5.67

%

 

 

 

 

 

 

Total interest earning assets

 

6,884,855

 

 

 

88,288

 

5.16

%

 

 

 

 

 

 

NONEARNING ASSETS

 

 

 

 

 

Cash and due from banks

 

102,922

 

 

 

 

 

Premises and equipment

 

101,530

 

 

 

 

 

Other nonearning assets

 

624,205

 

 

 

 

 

Allowance for loan losses

 

(69,059

)

 

 

 

 

 

 

 

 

 

 

Total assets

$

7,644,453

 

 

 

 

 

 

 

 

 

 

 

INTEREST BEARING LIABILITIES

 

 

 

 

 

Demand deposits

$

3,036,837

 

 

$

16,612

 

2.20

%

Savings deposits

 

707,849

 

 

 

178

 

0.10

%

Time deposits

 

1,028,045

 

 

 

9,306

 

3.64

%

Total interest bearing deposits

 

4,772,731

 

 

 

26,096

 

2.20

%

Repurchase agreements

 

264,587

 

 

 

2,056

 

3.13

%

FHLB advances

 

258,554

 

 

 

2,314

 

3.60

%

Federal funds purchased

 

-

 

 

 

-

 

0.00

%

Subordinated debt

 

106,791

 

 

 

1,194

 

4.50

%

Jr. subordinated debentures

 

24,084

 

 

 

542

 

9.05

%

Other debt

 

-

 

 

 

-

 

0.00

%

Total borrowings

 

654,016

 

 

 

6,106

 

3.75

%

Total interest bearing liabilities

 

5,426,747

 

 

 

32,202

 

2.39

%

 

 

 

 

 

 

NONINTEREST BEARING LIABILITIES

 

 

 

 

 

Demand deposits

 

1,367,798

 

 

Average cost of funds

1.91

%

Other liabilities

 

59,056

 

 

 

 

 

Stockholders' equity

 

790,852

 

 

 

 

 

 

 

 

 

 

 

Total liabilities & stockholders' equity

$

7,644,453

 

 

 

 

 

 

 

 

 

 

 

Net Interest Earnings / Spread

 

 

$

56,086

 

2.77

%

 

 

 

 

 

 

Impact of Non-Interest Bearing Funds

 

 

 

 

0.48

%

 

 

 

 

 

 

Tax effected yield on interest earning assets

 

 

 

3.25

%

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

FIRST MID BANCSHARES, INC.

Reconciliation of Non-GAAP Financial Measures

(In thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Quarter Ended

 

 

March 31,

 

December 31,

 

September 30,

June 30,

 

March 31,

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income as reported

 

$

55,470

 

 

$

57,462

 

 

$

50,443

 

 

$

42,367

 

 

$

43,191

 

Net interest income, (tax equivalent)

 

 

56,086

 

 

 

58,255

 

 

 

51,212

 

 

 

43,109

 

 

 

43,947

 

Average earning assets

 

 

6,884,855

 

 

 

6,948,309

 

 

 

6,593,781

 

 

 

6,049,626

 

 

 

6,052,264

 

Net interest margin (tax equivalent)

 

 

3.25

%

 

 

3.33

%

 

 

3.06

%

 

 

2.84

%

 

 

2.94

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stockholder's equity

 

$

797,952

 

 

$

793,204

 

 

$

737,948

 

 

$

660,687

 

 

$

661,865

 

Goodwill and intangibles, net

 

 

260,699

 

 

 

264,231

 

 

 

267,793

 

 

 

178,615

 

 

 

168,373

 

Common shares outstanding

 

 

23,889

 

 

 

23,827

 

 

 

23,830

 

 

 

20,528

 

 

 

20,520

 

Tangible Book Value per common share

 

$

22.49

 

 

$

22.20

 

 

$

19.73

 

 

$

23.48

 

 

$

24.05

 

Accumulated other comprehensive loss (AOCI)

 

 

(147,667

)

 

 

(136,427

)

 

 

(178,903

)

 

 

(151,566

)

 

 

(137,901

)

Adjusted tangible book value per common share

 

$

28.67

 

 

$

27.93

 

 

$

27.24

 

 

$

30.87

 

 

$

30.77

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

FIRST MID BANCSHARES, INC.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Quarter Ended

 

 

March 31,

 

December 31,

 

September 30,

June 30,

 

March 31,

 

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

Adjusted earnings Reconciliation

 

 

 

 

 

 

 

 

 

 

Net Income - GAAP

 

$

20,503

 

 

$

18,071

 

 

$

15,117

 

 

$

16,567

 

 

$

19,180

 

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

 

 

1,804

 

 

 

4,385

 

 

 

1,653

 

 

 

589

 

 

 

135

 

Total non-recurring adjustments (non-GAAP)

 

$

1,804

 

 

$

4,348

 

 

$

1,962

 

 

$

589

 

 

$

551

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings - non-GAAP

 

$

22,307

 

 

$

22,419

 

 

$

17,079

 

 

$

17,156

 

 

$

19,731

 

Adjusted diluted earnings per share (non-GAAP)

 

$

0.93

 

 

$

0.94

 

 

$

0.77

 

 

$

0.83

 

 

$

0.96

 

Adjusted return on average assets - non-GAAP

 

 

1.17

%

 

 

1.16

%

 

 

0.94

%

 

 

1.03

%

 

 

1.18

%

Adjusted return on average common equity - non-GAAP

 

 

11.28

%

 

 

12.11

%

 

 

9.82

%

 

 

10.42

%

 

 

11.92

%

 

 

 

 

 

 

 

 

 

 

 

Efficiency Ratio Reconciliation

 

 

 

 

 

 

 

 

 

 

Noninterest expense - GAAP

 

$

53,362

 

 

$

57,025

 

 

$

47,096

 

 

$

40,042

 

 

$

41,577

 

Other real estate owned property income (expense)

 

 

21

 

 

 

(800

)

 

 

(902

)

 

 

(27

)

 

 

(133

)

Amortization of intangibles

 

 

(3,497

)

 

 

(3,560

)

 

 

(2,568

)

 

 

(1,477

)

 

 

(1,522

)

Nonrecurring severance expense

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(527

)

Integration and acquisition expenses

 

 

(2,283

)

 

 

(5,550

)

 

 

(2,093

)

 

 

(745

)

 

 

(171

)

Adjusted noninterest expense (non-GAAP)

 

$

47,603

 

 

$

47,115

 

 

$

41,533

 

 

$

37,793

 

 

$

39,224

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income -GAAP

 

$

55,470

 

 

$

57,462

 

 

$

50,443

 

 

$

42,367

 

 

$

43,192

 

Effect of tax-exempt income (1)

 

 

616

 

 

 

793

 

 

 

769

 

 

 

742

 

 

 

755

 

Adjusted net interest income (non-GAAP)

 

$

56,086

 

 

$

58,255

 

 

$

51,212

 

 

$

43,109

 

 

$

43,947

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income - GAAP

 

$

24,478

 

 

$

21,768

 

 

$

23,053

 

 

$

19,486

 

 

$

22,479

 

Net (gain)/loss on securities sales

 

 

0

 

 

 

(46

)

 

 

(3,389

)

 

 

6

 

 

 

46

 

Adjusted noninterest income (non-GAAP)

 

$

24,478

 

 

$

21,722

 

 

$

19,664

 

 

$

19,492

 

 

$

22,525

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted total revenue (non-GAAP)

 

$

80,564

 

 

$

79,977

 

 

$

70,876

 

 

$

62,601

 

 

$

66,472

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (non-GAAP)

 

 

59.09

%

 

 

58.91

%

 

 

58.60

%

 

 

60.37

%

 

 

59.01

%

 

 

 

 

 

 

 

 

 

 

 

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