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First Mid Bancshares, Inc. Announces First Quarter 2023 Results
Press Releases

First Mid Bancshares, Inc. Announces First Quarter 2023 Results






MATTOON, Ill., April 26, 2023 (GLOBE NEWSWIRE) — First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended March 31, 2023.

Highlights

  • Net income of $19.2 million, or $0.93 diluted EPS
  • Adjusted net income (non-GAAP) of $19.7 million, or $0.96 diluted EPS
  • Record quarter of insurance revenues reflects unique diversification helping deliver record quarterly noninterest income
  • Strong asset quality performance with decline in nonperforming loans and substandard loans, minimal net charge-offs, and past dues down to less than $10 million
  • Implemented efficiency improvements and early retirement initiative to deliver annual cost savings of $2.2 million
  • Announced the acquisition of Blackhawk Bancorp, Inc. continuing the Company’s diversification strategy and enhancing funding and liquidity profile
  • Board of Directors declared regular quarterly dividend of $0.23 per share

“Our unique income diversification helped deliver a solid start to the year,” said Joe Dively, Chairman and Chief Executive Officer. “It was clearly an eventful quarter as we continued our strategic initiatives and managed through the increased challenges in our industry. Financially, the quarter was highlighted by a record quarter in our insurance business, continued strength in our asset quality, and an efficiency initiative that will lower expenses by approximately $2.2 million per year.”

“In addition, after a long history of working together on various customer opportunities and strategic considerations, we announced the merger with Blackhawk Bancorp, Inc. The cultural alignment of the two organizations will make for a smooth integration and help us to maintain the strong customer relationships and commitments to communities Blackhawk has delivered for many years. We are planning to hit the ground running with our broader array of services that customers and employees can be excited about,” Dively concluded.

Net Interest Income

Net interest income for the first quarter of 2023 decreased by $2.5 million, or 5.4% compared to the fourth quarter of 2022. Interest income increased by $3.0 million and interest expense increased by $5.4 million. The increase in interest income was primarily driven by a higher average rate on earning assets. Accretion income decreased by $0.2 million in the period to $0.4 million and ended the quarter with a remaining discount of $6.5 million. The increase in interest expense was primarily driven by higher interest rates and increased competition for funding.      

In comparison to the first quarter of 2022, net interest income decreased $0.3 million, or 0.8%. The decrease was primarily the result of funding costs increasing at a faster pace than organic earning asset growth and repricing.  

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 2.94% for the first quarter of 2023, which was 13 basis points lower compared to the prior quarter. Earning asset yields increased 25 basis points, while the average cost of funds increased 38 basis points.        

In comparison to the first quarter of last year, the net interest margin decreased 13 basis points, with earning asset yields higher by 99 basis points and average cost of funds higher by 112 basis points.  

Loan Portfolio

Total loans ended the quarter at $4.76 billion, representing a decrease of $65.6 million compared to the prior quarter. The decrease was primarily due to elevated payoffs in commercial real estate from customer asset sales and the seasonal nature of agriculture operating loans. In addition, line of credit draws decreased by $34.0 million in the quarter, which was driven by higher rates and strong customer balance sheets. The loan pipeline still has solid opportunities, but customers are expressing some caution due to continued economic uncertainty, and we expect growth to moderate from prior periods.         

Asset Quality

The Company has strength in its long-standing and disciplined credit culture, which allows it to remain consistent in underwriting regardless of the economic cycle. Asset quality metrics for March 31, 2023 reflect those efforts. The allowance for credit losses at the end of the quarter was flat from the prior period at 1.22% of total loans. Also at quarter end, the ratio of non-performing loans to total loans was down to 0.32%, and the allowance for credit losses to non-performing loans was 384%. The ratio of nonperforming assets to total assets was down to 0.29% at quarter end. Nonperforming loans and nonperforming assets both decreased in the period. The Company recognized minimal net charge-offs during the first quarter.

Provision expense was recorded as a credit of $0.8 million in the first quarter. The credit was primarily driven by the decline in loan balances, decline in substandard loans, and a decline in past dues, partially offset by an increase in qualitative factors for the growing uncertainty on the macro-economic conditions. The allowance totaled $58.2 million at the end of the quarter, which represents significantly more than the $37.2 million of total cumulative net charge-offs the Company has experienced over the last 20 years.        

Deposits

Total deposits ended the quarter at $5.03 billion, which represented a decrease of $226.2 million from the prior quarter. Noninterest-bearing deposits increased by $5.7 million in the quarter. A majority of the overall deposit decline in the period was attributable to one customer. As previously mentioned, the Company received approximately $225 million of deposits in the third quarter of last year related to a customer’s sale of certain assets. These funds were known to be temporary deposits on the Company’s balance sheet as they would be deployed for capital and operating needs of the customer. Most of this outflow occurred during the period with approximately $50 million of the balance remaining as of March 31, 2023. The Company has no other large customer deposit concentrations similar to this one. The Company has not lost a customer related to the industry’s deposit security concerns subsequent to the bank failures in March. Approximately 99% of the Company’s deposit accounts are less than $250,000. The average account balance for all deposit customers is approximately $25,000. The percentage of deposits that were uninsured at quarter end was 25.9%.          

Outside of the previously mentioned customer, deposit flows throughout the quarter were relatively similar to prior periods where rate competition was a key determinant to the migration. Late in the first quarter, the Company saw an increase in the competitive landscape resulting in higher matching and promotional rates to normalize deposit flows. In addition, deposit security became a more common discussion topic, and the Company met customer needs and maintained deposit relationships by moving approximately $93 million of deposits into the Intrafi Network for the FDIC insurance coverage.      

Noninterest Income

Noninterest income for the first quarter of 2023 was $22.5 million compared to $18.2 million in the fourth quarter of 2022. The increase compared to the prior quarter was primarily due to both organic and seasonal growth within the insurance business and approximately $0.7 million in a bank owned life insurance claim. Insurance and wealth management revenues represented 62% of total noninterest income reflecting the diversification of our revenue sources. Noninterest income represented approximately 34.2% of total revenue in the period.        

In comparison to the first quarter of 2022, noninterest income increased $1.4 million, or 6.6%. The year-over-year increase was driven by strong growth in our insurance business of $1.4 million and a bank owned life insurance claim of $0.7 million, partially offset by lower wealth management and mortgage income.   

Noninterest Expenses

Noninterest expense for the first quarter of 2023 totaled $41.6 million compared to $39.4 million in the fourth quarter. The increase was primarily driven by $0.7 million of nonrecurring acquisition and severance related costs and higher producer incentive-based compensation tied to the record high insurance revenue. During the quarter, the Company implemented an efficiency initiative. This project resulted in nonrecurring severance costs of $0.5 million recorded in the period and will result in approximately $2.2 million of ongoing annual savings.

In comparison to the first quarter of 2022, noninterest expenses increased $1.2 million. The increase was primarily due to a full quarter of expenses from the Jefferson acquisition, higher incentive-based compensation tied to insurance revenues, and overall inflationary pressures.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the first quarter 2023 was 59.0% compared to 58.1% in the prior quarter and 58.6% 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    15.74%
Tier 1 capital to risk-weighted assets 12.88%
Common equity tier 1 capital to risk-weighted assets 12.51%
Leverage ratio 9.89%
   

The Company’s Board of Directors approved a regular quarterly dividend in the amount of $0.23 payable on June 1, 2023 for shareholders of record on May 17, 2023.  

About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc. and First Mid Wealth Management Co. First Mid is a $6.7 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri and Texas, and a loan production office in the greater Indianapolis area. Together, the First Mid team takes great pride in their work and their ability to serve customers well over the last 158 years. More information about the Company is available on our website at www.firstmid.com

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

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

Important Information about the Merger and Additional Information
First Mid will file a registration statement on Form S-4 with the SEC in connection with the proposed transaction. The registration statement will include a proxy statement of Blackhawk that also constitutes a prospectus of First Mid, which will be sent to the shareholders of Blackhawk. Investors in Blackhawk are urged to read the proxy statement/prospectus, which will contain important information, including detailed risk factors, when it becomes available. The proxy statement/prospectus and other documents which will be filed by First Mid with the SEC will be available free of charge at the SEC’s website, www.sec.gov. These documents also can be obtained free of charge by accessing First Mid’s website at www.firstmid.com under the tab “Investors Relations” and then under “SEC Filings.” Alternatively, when available, these documents can be obtained free of charge from First Mid upon written requestto First Mid Bancshares, P.O. Box 499, Mattoon, IL 61938, Attention: Investor Relations; or from Blackhawk upon written request to Blackhawk Bancorp, Inc., 400 Broad Street, Beloit, WI 53511, Attention: Todd J. James, President & CEO. A final proxy statement/prospectus will be mailed to the shareholders of Blackhawk.

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

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

Investor Contact:
Aaron Holt
VP, Shareholder Relations
217-258-0463
aholt@firstmid.com

Matt Smith
Chief Financial Officer
217-258-1528
msmith@firstmid.com

             
  FIRST MID BANCSHARES, INC.  
  Condensed Consolidated Balance Sheets  
  (In thousands, unaudited)  
  As of  
   
  March 31,   December 31,   March 31,  
    2023       2022       2022    
             
Assets            
Cash and cash equivalents $ 169,134     $ 152,433     $ 223,980    
Investment securities   1,217,754       1,223,720       1,472,277    
Loans (including loans held for sale)   4,760,631       4,826,212       4,454,561    
Less allowance for credit losses   (58,223 )     (59,093 )     (58,474 )  
Net loans   4,702,408       4,767,119       4,396,087    
Premises and equipment, net   90,178       90,473       89,319    
Goodwill and intangibles, net   168,373       169,897       174,499    
Bank owned life insurance   151,366       151,756       149,041    
Other assets   183,637       188,817       126,803    
Total assets $ 6,682,850     $ 6,744,215     $ 6,632,006    
             
Liabilities and Stockholders’ Equity            
Deposits:            
Non-interest bearing $ 1,262,181     $ 1,256,514     $ 1,373,881    
Interest bearing   3,768,597       4,000,487       4,113,424    
Total deposits   5,030,778       5,257,001       5,487,305    
Repurchase agreement with customers   228,664       221,414       187,326    
Other borrowings   595,021       465,071       126,396    
Junior subordinated debentures   19,406       19,364       19,237    
Subordinated debt   94,593       94,553       94,438    
Other liabilities   52,523       53,657       50,919    
Total liabilities   6,020,985       6,111,060       5,965,621    
             
Total stockholders’ equity   661,865       633,155       666,385    
Total liabilities and stockholders’ equity $ 6,682,850     $ 6,744,215     $ 6,632,006    
             

         
FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
         
  Three Months Ended  
  March 31,  
    2023       2022    
Interest income:        
Interest and fees on loans $ 56,236     $ 39,908    
Interest on investment securities   7,127       7,170    
Interest on federal funds sold & other deposits   308       67    
  Total interest income   63,671       47,145    
Interest expense:        
Interest on deposits   12,767       2,148    
Interest on securities sold under agreements to repurchase   1,463       67    
Interest on other borrowings   4,883       276    
Interest on jr. subordinated debentures   379       146    
Interest on subordinated debt   988       986    
  Total interest expense   20,480       3,623    
Net interest income   43,191       43,522    
Provision for credit losses   (817 )     2,952    
Net interest income after provision for loan   44,008       40,570    
Non-interest income:        
Wealth management revenues   5,514       5,975    
Insurance commissions   8,480       7,104    
Service charges   2,203       2,056    
Net securities gains/(losses)   (46 )     0    
Mortgage banking revenues   150       444    
ATM/debit card revenue   3,083       2,898    
Other   3,095       2,611    
Total non-interest income   22,479       21,088    
Non-interest expense:        
Salaries and employee benefits   26,071       24,302    
Net occupancy and equipment expense   6,005       6,155    
Net other real estate owned (income) expense   133       (33 )  
FDIC insurance   463       426    
Amortization of intangible assets   1,522       1,522    
Stationary and supplies   292       311    
Legal and professional expense   1,690       1,734    
ATM/debit card expense   1,223       1,078    
Marketing and donations   654       873    
Other   3,524       4,020    
Total non-interest expense   41,577       40,388    
Income before income taxes   24,910       21,270    
Income taxes   5,730       4,654    
Net income $ 19,180     $ 16,616    
         
Per Share Information        
Basic earnings per common share $ 0.94     $ 0.86    
Diluted earnings per common share   0.93       0.86    
         
Weighted average shares outstanding   20,492,254       19,295,860    
Diluted weighted average shares outstanding   20,563,972       19,358,457    
         

                   
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,
    2023       2022       2022     2022     2022  
Interest income:                  
Interest and fees on loans $ 56,236     $ 53,128     $ 49,278   $ 43,555   $ 39,908  
Interest on investment securities   7,127       7,285       7,302     7,623     7,170  
Interest on federal funds sold & other deposits   308       296       174     105     67  
Total interest income   63,671       60,709       56,754     51,283     47,145  
Interest expense:                  
Interest on deposits   12,767       9,227       4,915     2,523     2,148  
Interest on securities sold under agreements to repurchase   1,463       1,163       428     137     67  
Interest on other borrowings   4,883       3,345       1,927     645     276  
Interest on jr. subordinated debentures   379       315       241     166     146  
Interest on subordinated debt   988       987       986     986     986  
Total interest expense   20,480       15,037       8,497     4,457     3,623  
Net interest income   43,191       45,672       48,257     46,826     43,522  
Provision for credit losses   (817 )     805       142     907     2,952  
Net interest income after provision for loan   44,008       44,867       48,115     45,919     40,570  
Non-interest income:                  
Wealth management revenues   5,514       6,201       4,843     5,473     5,975  
Insurance commissions   8,480       4,719       4,158     5,641     7,104  
Service charges   2,203       2,375       2,445     2,236     2,056  
Securities gains, net   (46 )     (48 )     79     2      
Mortgage banking revenues   150       65       355     289     444  
ATM/debit card revenue   3,083       3,209       3,101     3,214     2,898  
Other   3,095       1,686       1,810     1,704     2,611  
Total non-interest income   22,479       18,207       16,791     18,559     21,088  
Non-interest expense:                  
Salaries and employee benefits   26,071       23,610       24,877     25,768     24,302  
Net occupancy and equipment expense   6,005       6,126       5,903     6,073     6,155  
Net other real estate owned (income) expense   133       87       58     218     (33 )
FDIC insurance   463       464       479     436     426  
Amortization of intangible assets   1,522       1,537       1,598     1,633     1,522  
Stationary and supplies   292       298       361     325     311  
Legal and professional expense   1,690       1,607       1,770     1,885     1,734  
ATM/debit card expense   1,223       1,309       1,243     670     1,078  
Marketing and donations   654       681       739     706     873  
Other   3,524       3,653       4,521     3,801     4,020  
Total non-interest expense   41,577       39,372       41,549     41,515     40,388  
Income before income taxes   24,910       23,702       23,357     22,963     21,270  
Income taxes   5,730       3,063       5,418     5,205     4,654  
Net income $ 19,180     $ 20,639     $ 17,939   $ 17,758   $ 16,616  
                   
Per Share Information                  
Basic earnings per common share $ 0.94     $ 1.01     $ 0.88   $ 0.87   $ 0.86  
Diluted earnings per common share   0.93       1.01       0.88     0.86     0.86  
                   
Weighted average shares outstanding   20,492,254       20,461,046       20,454,669     20,448,799     19,295,860  
Diluted weighted average shares outstanding   20,563,972       20,535,220       20,535,215     20,529,523     19,358,457  
                                   

      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,
    2023       2022       2022       2022       2022  
                   
Loan Portfolio                  
Construction and land development $ 159,157     $ 144,264     $ 142,801     $ 141,072     $ 131,504  
Farm real estate loans   401,957       410,327       360,424       350,159       280,993  
1-4 Family residential properties   424,545       440,180       436,625       424,230       417,232  
Multifamily residential properties   301,808       294,346       298,321       330,600       369,926  
Commercial real estate   2,003,647       2,030,011       1,996,338       1,976,654       1,965,321  
Loans secured by real estate   3,291,114       3,319,128       3,234,509       3,222,715       3,164,976  
Agricultural operating loans   146,847       166,838       160,511       142,406       121,708  
Commercial and industrial loans   1,078,021       1,082,960       1,064,033       1,036,987       935,454  
Consumer loans   88,430       97,775       100,783       94,828       89,685  
All other loans   156,219       159,511       160,454       151,727       142,738  
Total loans   4,760,631       4,826,212       4,720,290       4,648,663       4,454,561  
                   
Deposit Portfolio                  
Non-interest bearing demand deposits $ 1,262,181     $ 1,256,514     $ 1,334,686     $ 1,369,756     $ 1,373,881  
Interest bearing demand deposits   1,419,791       1,389,283       1,364,306       1,453,932       1,482,556  
Savings deposits   639,691       636,699       657,592       683,944       685,228  
Money Market   878,452       1,267,726       1,443,060       1,158,724       1,280,129  
Time deposits   830,663       706,779       683,554       652,622       665,511  
Total deposits   5,030,778       5,257,001       5,483,198       5,318,978       5,487,305  
                   
Asset Quality                  
Non-performing loans $ 15,163     $ 19,170     $ 20,812     $ 19,981     $ 22,465  
Non-performing assets   19,225       23,539       25,143       24,190       27,269  
Net charge-offs (recoveries)   53       489       440       307       (5 )
Allowance for credit losses to non-performing loans   383.98 %     308.26 %     282.42 %     295.66 %     260.29 %
Allowance for credit losses to total loans outstanding   1.22 %     1.22 %     1.25 %     1.27 %     1.31 %
Nonperforming loans to total loans   0.32 %     0.40 %     0.44 %     0.43 %     0.50 %
Nonperforming assets to total assets   0.29 %     0.35 %     0.38 %     0.36 %     0.41 %
Special Mention loans   47,022       39,853       25,298       35,849       64,160  
Substandard and Doubtful loans   29,931       34,352       37,378       38,155       38,801  
                   
Common Share Data                  
Common shares outstanding   20,519,717       20,452,376       20,454,636       20,448,799       20,437,183  
Book value per common share $ 32.26     $ 30.96     $ 29.37     $ 30.63     $ 32.61  
Tangible book value per common share (2)   24.05       22.65       21.01       22.17       24.07  
Market price of stock   27.22       32.08       31.97       35.67       38.49  
                   
Key Performance Ratios and Metrics                  
End of period earning assets $ 5,995,674     $ 6,063,953     $ 5,975,619     $ 6,024,815     $ 6,038,542  
Average earning assets   6,052,264       6,000,106       6,063,061       5,975,821       5,817,752  
Average rate on average earning assets (tax equivalent)   4.32 %     4.07 %     3.77 %     3.50 %     3.33 %
Average rate on cost of funds   1.38 %     1.00 %     0.56 %     0.30 %     0.26 %
Net interest margin (tax equivalent) (2)   2.94 %     3.07 %     3.21 %     3.20 %     3.07 %
Return on average assets   1.15 %     1.24 %     1.07 %     1.08 %     1.05 %
Return on average common equity   12.11 %     13.51 %     11.18 %     11.02 %     9.95 %
Efficiency ratio (tax equivalent) (2)   59.01 %     58.07 %     59.64 %     58.45 %     58.59 %
Full-time equivalent employees   988       1,043       1,051       1,025       1,050  
                   
                   
1 Excludes Paycheck Protection Loans                
2 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, 2023
  QTD Average       Average
  Balance   Interest   Rate
INTEREST EARNING ASSETS          
Interest bearing deposits $ 15,688     $ 209   5.40 %
Federal funds sold   7,753       85   4.45 %
Certificates of deposits investments   1,789       14   3.17 %
Investment Securities:          
Taxable (total less municipals)   957,951       5,163   2.16 %
Tax-exempt (Municipals)   280,828       2,486   3.54 %
Loans (net of unearned income)   4,788,255       56,469   4.78 %
           
Total interest earning assets   6,052,264       64,426   4.32 %
           
NONEARNING ASSETS          
Cash and due from banks   135,145          
Premises and equipment   90,345          
Other nonearning assets   475,022          
Allowance for loan losses   (59,558 )        
           
Total assets $ 6,693,218          
           
INTEREST BEARING LIABILITIES          
Demand deposits $ 2,504,073     $ 9,655   1.56 %
Savings deposits   640,347       191   0.12 %
Time deposits   699,328       2,921   1.69 %
Total interest bearing deposits   3,843,748       12,767   1.35 %
Repurchase agreements   231,012       1,463   2.57 %
FHLB advances   540,156       4,874   3.66 %
Federal funds purchased   778       9   4.69 %
Subordinated debt   94,567       987   4.23 %
Jr. subordinated debentures   19,385       379   7.93 %
Other debt           0.00 %
Total borrowings   885,898       7,712   3.53 %
Total interest bearing liabilities   4,729,646       20,479   1.76 %
           
NONINTEREST BEARING LIABILITIES          
Demand deposits   1,273,527     Average cost of funds 1.38 %
Other liabilities   56,456          
Stockholders’ equity   633,589          
           
Total liabilities & stockholders’ equity $ 6,693,218          
           
Net Interest Earnings / Spread     $ 43,947   2.56 %
           
Impact of Non-Interest Bearing Funds         0.38 %
           
Tax effected yield on interest earning assets       2.94 %
           

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,
  2023   2022   2022   2022   2022
                   
Net interest income as reported $ 43,191     $ 45,672     $ 48,257     $ 46,826     $ 43,522  
Net interest income, (tax equivalent)   43,947       46,464       49,060       47,625       44,292  
Average earning assets   6,052,264       6,000,106       6,063,061       5,975,821       5,817,752  
Net interest margin (tax equivalent)   2.94 %     3.07 %     3.21 %     3.20 %     3.07 %
                   
                   
Common stockholder’s equity $ 661,865     $ 633,155     $ 600,715     $ 626,268     $ 666,385  
Goodwill and intangibles, net   168,373       169,897       170,897       172,871       174,499  
Common shares outstanding   20,520       20,452       20,455       20,449       20,437  
Tangible Book Value per common share $ 24.05     $ 22.65     $ 21.01     $ 22.17     $ 24.07  
                   

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,
  2022   2022   2022   2022   2022
Adjusted earnings Reconciliation                  
Net Income – GAAP $ 19,180     $ 20,639     $ 17,939     $ 17,758     $ 16,616  
Adjustments (post-tax): (1)                  
Acquisition ACL on non-PCD assets in provision expense                           1,580  
Nonrecurring severance expense   416                          
Integration and acquisition expenses   135       131       524       777       469  
Total non-recurring adjustments (non-GAAP) $ 551     $ 131     $ 524     $ 777     $ 2,049  
                   
Adjusted earnings – non-GAAP $ 19,731     $ 20,770     $ 18,463     $ 18,535     $ 18,665  
Adjusted diluted earnings per share (non-GAAP) $ 0.96     $ 1.01     $ 0.90     $ 0.90     $ 0.96  
                   
Efficiency Ratio Reconciliation                  
Noninterest expense – GAAP $ 41,577     $ 39,372     $ 41,549     $ 41,515     $ 40,388  
Other real estate owned property income (expense)   (133 )     (87 )     (58 )     (218 )     33  
Amortization of intangibles   (1,522 )     (1,537 )     (1,598 )     (1,633 )     (1,522 )
Nonrecurring severance expense   (527 )                        
Integration and acquisition expenses   (171 )     (166 )     (663 )     (983 )     (594 )
Adjusted noninterest expense (non-GAAP) $ 39,224     $ 37,582     $ 39,230     $ 38,681     $ 38,305  
                   
Net interest income -GAAP $ 43,192     $ 45,672     $ 48,257     $ 46,826     $ 43,522  
Effect of tax-exempt income (1)   755       792       803       799       770  
Adjusted net interest income (non-GAAP) $ 43,947     $ 46,464     $ 49,060     $ 47,625     $ 44,292  
                   
Noninterest income – GAAP $ 22,479     $ 18,207     $ 16,791     $ 18,559     $ 21,088  
Net (gain)/loss on securities sales   46       48       (79 )     (2 )      
Adjusted noninterest income (non-GAAP) $ 22,525     $ 18,255     $ 16,712     $ 18,557     $ 21,088  
                   
Adjusted total revenue (non-GAAP) $ 66,472     $ 64,719     $ 65,772     $ 66,182     $ 65,380  
                   
Efficiency ratio (non-GAAP)   59.01 %     58.07 %     59.64 %     58.45 %     58.59 %
                   
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.          

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