MATTOON, Ill., Jan. 23, 2025 (GLOBE NEWSWIRE) — First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended December 31, 2024.
Highlights
- Net income of $19.2 million, or $0.80 diluted EPS
- Adjusted net income (non-GAAP) of $20.9 million, or $0.87 diluted EPS
- Loan growth and interest expense decline drives 6 basis points of margin expansion
- Wealth management and insurance combined revenues increase over 11% in the quarter
- Board of Directors declares regular quarterly dividend of $0.24 per share
“Revenue growth and interest expense management helped drive a solid increase in adjusted earnings, despite higher provision expense,” said Joe Dively, Chairman and Chief Executive Officer. “Our net interest margin expanded, and noninterest income increased to 31% of revenues. Wealth management and insurance had a strong finish to the year with a combined revenue increase of 26% compared to the fourth quarter last year. Our Ag Services group had a record quarter of farmland sales in the period. Finally, we are pleased with the success of the multiple strategic technology investments we completed this year and continue to execute on for 2025. Collectively, these investments deliver a better customer experience and significant operating efficiency,” Dively concluded.
Net Interest Income
Net interest income for the fourth quarter of 2024 increased by $1.4 million, or 2.4% compared to the third quarter of 2024. Interest income decreased by $1.3 million primarily driven by lower interest rates, partially offset by loan growth. Interest expense decreased by $2.7 million primarily due to lower interest rates, reducing wholesale funding, and actively managing existing accounts and promotional pricing with the Fed’s rate cuts.
In comparison to the fourth quarter of 2023, net interest income increased $1.5 million, or 2.6%. Interest income was slightly lower by $0.1 million, while interest expense decreased $1.6 million. Interest income on loans increased $2.6 million while funding from investment securities and cash were used for loan growth.
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.41% for the fourth quarter of 2024, which was an increase of 6 basis points compared to the prior quarter. Earning asset yields decreased by 11 basis points, while the average cost of funds decreased by 17 basis points. Accretion income for the quarter was $3.4 million, which was a decrease of $0.2 million from the prior quarter.
In comparison to the fourth quarter of last year, the net interest margin increased 8 basis points, with an average earnings asset increase of 6 basis points versus the average cost of funds decrease of 2 basis points. Higher rates and loan growth helped drive an increase in earnings asset yields, despite a decline in accretion income of $1.2 million. The decrease in funding costs was primarily due to a decline in wholesale funding sources, partially offset by an increase in time deposit rates.
Loan Portfolio
Total loans ended the quarter at $5.67 billion, representing an increase of $57.9 million, or 1.0% compared to the prior quarter. Loan growth was well diversified primarily in construction and land development and commercial and industrial. The largest decline was in commercial real estate, which included an increase in paydowns due to the sale of several borrowers’ properties. The average rate on new origination and renewed loans in the period was approximately 7.4%.
Asset Quality
The Company’s asset quality metrics continue to be strong compared to historical and industry measures. The allowance for credit losses (“ACL”) increased by $1.4 million to $70.2 million with an ending ACL to total loans ratio of 1.24%. Provision expense was recorded in the amount of $3.6 million and the Company had net charge offs of $2.2 million in the period. Also, at the end of the fourth quarter, the ratio of non-performing loans to total loans was 0.53%, and the ACL to non-performing loans was 235%. The ratio of non-performing assets to total assets was 0.43% at quarter end. Non-performing loans increased by $11.6 million in the period to $29.8 million. Substandard loans increased $6.5 million in the period to $35.5 million. For the quarter, the increase in net charge offs, non-performing loans, and substandard loans were all tied to a single borrower who is invested in an organic farming operation that is in the process of dissolving and liquidating. Separately, while special mention loans increased $19.7 million in the quarter to $57.8 million, there are currently no anticipated material losses from the downgrades and the special mention balance was lower than the same period last year.
Deposits and Borrowings
Total deposits ended the quarter at $6.06 billion, which represented a decrease of $31.7 million, or 0.52% from the prior quarter. The decline was primarily in noninterest bearing deposits for normal customer cash flow needs. In addition, time deposits were lower primarily due to a decline in wholesale CD’s. In comparison to the prior quarter, the average cost of funds decreased 17 basis points in the fourth quarter of 2024 to 1.83%.
Noninterest Income
Noninterest income for the fourth quarter of 2024 was $26.4 million compared to $23.0 million in the prior quarter. Wealth management revenues increased $0.5 million primarily due to a record quarter of farmland sales totaling $1.7 million more than offsetting a $0.7 million reduction to farm management income from lower commodity prices. Overall Ag Services revenue was $3.0 million in the quarter. Insurance revenues increased $0.8 million, or 13.4% on a strong finish to the year in sales performance. Other income increased $1.9 million and included a $1.3 million gain on the sale of a property that was held in other real estate owned.
In comparison to the fourth quarter of 2023, noninterest income increased $4.6 million, or 21.1%. The increase was primarily driven by growth in wealth management and insurance, and the sale of a property.
Noninterest Expenses
Noninterest expense for the fourth quarter of 2024 totaled $56.3 million compared to $53.9 million in the prior quarter. The increase was primarily in legal and professional fees due to $2.2 million in expenses tied to the retail and core system technology projects. In addition, other expenses included a $1.2 million loss on the sale of a portion of property connected to a branch location. Expenses were higher in salaries and benefits driven by higher incentive compensation tied to the strong quarter of revenue growth in wealth management and insurance.
In comparison to the fourth quarter of 2023, noninterest expenses decreased $0.7 million. The decrease was primarily driven by the nonrecurring expenses tied to the Blackhawk acquisition totaling $5.6 million in the fourth quarter of last year, while the current quarter of 2024 included $2.2 million of nonrecurring expense tied to the technology projects and a $1.2 million loss on the sale of a portion of a property.
The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter 2024 was 59.5% compared to 61.3% in the prior quarter and 58.9% for the same period last year.
Taxes
The fourth quarter of 2024 included a $0.9 million increase to taxes due to a reduction in the percentage of income apportioned to Illinois resulting in a lower effective tax rate going forward and a reduction in related deferred tax assets for the period. The reduction was primarily due to the Illinois tax law change in June of 2024 for the apportionment of investment income and the continued diversification of the business with more revenue outside of Illinois.
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 | 15.37% |
| Tier 1 capital to risk-weighted assets | 12.82% |
| Common equity tier 1 capital to risk-weighted assets | 12.42% |
| Leverage ratio | 10.33% |
The Company’s Board of Directors approved its regular quarterly dividend of $0.24 payable on February 28, 2025 for shareholders of record on February 13, 2025.
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 $7.5 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 160 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 pandemics 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 –
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FIRST MID BANCSHARES, INC. |
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|
Condensed Consolidated Balance Sheets |
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| (In thousands, unaudited) | |||||||||||
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As of |
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| December 31, | September 30, | December 31, | |||||||||
| 2024 | 2024 | 2023 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 121,216 | $ | 164,191 | $ | 143,064 | |||||
| Investment securities | 1,073,510 | 1,125,774 | 1,179,402 | ||||||||
| Loans (including loans held for sale) | 5,672,462 | 5,614,591 | 5,580,565 | ||||||||
| Less allowance for credit losses | (70,182 | ) | (68,774 | ) | (68,675 | ) | |||||
| Net loans | 5,602,280 | 5,545,817 | 5,511,890 | ||||||||
| Premises and equipment, net | 100,234 | 101,464 | 101,396 | ||||||||
| Goodwill and intangibles, net | 261,906 | 265,139 | 264,231 | ||||||||
| Bank Owned Life Insurance | 170,854 | 169,635 | 166,125 | ||||||||
| Other assets | 189,734 | 190,469 | 220,686 | ||||||||
| Total assets | $ | 7,519,734 | $ | 7,562,489 | $ | 7,586,794 | |||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Deposits: | |||||||||||
| Non-interest bearing | $ | 1,329,155 | $ | 1,387,290 | $ | 1,398,234 | |||||
| Interest bearing | 4,727,941 | 4,701,544 | 4,725,425 | ||||||||
| Total deposits | 6,057,096 | 6,088,834 | 6,123,659 | ||||||||
| Repurchase agreements with customers | 204,122 | 204,343 | 213,721 | ||||||||
| Other borrowings | 242,520 | 238,712 | 263,787 | ||||||||
| Junior subordinated debentures | 24,280 | 24,224 | 24,058 | ||||||||
| Subordinated debt | 87,472 | 87,373 | 106,755 | ||||||||
| Other liabilities | 57,853 | 60,506 | 61,610 | ||||||||
| Total liabilities | 6,673,343 | 6,703,992 | 6,793,590 | ||||||||
| Total stockholders’ equity | 846,391 | 858,497 | 793,204 | ||||||||
| Total liabilities and stockholders’ equity | $ | 7,519,734 | $ | 7,562,489 | $ | 7,586,794 | |||||
| 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, | ||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
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| Interest income: | |||||||||||||||
| Interest and fees on loans | $ | 81,288 | $ | 78,676 | $ | 320,446 | $ | 262,423 | |||||||
| Interest on investment securities | 6,990 | 8,515 | 28,836 | 32,119 | |||||||||||
| Interest on federal funds sold & other deposits | 1,564 | 2,736 | 8,097 | 5,624 | |||||||||||
| Total interest income | 89,842 | 89,927 | 357,379 | 300,166 | |||||||||||
| Interest expense: | |||||||||||||||
| Interest on deposits | 26,144 | 25,900 | 106,919 | 77,294 | |||||||||||
| Interest on securities sold under agreements to repurchase | 1,333 | 1,754 | 6,448 | 6,565 | |||||||||||
| Interest on other borrowings | 1,917 | 3,073 | 8,674 | 16,789 | |||||||||||
| Interest on jr. subordinated debentures | 510 | 545 | 2,156 | 1,859 | |||||||||||
| Interest on subordinated debt | 988 | 1,193 | 4,454 | 4,196 | |||||||||||
| Total interest expense | 30,892 | 32,465 | 128,651 | 106,703 | |||||||||||
| Net interest income | 58,950 | 57,462 | 228,728 | 193,463 | |||||||||||
| Provision for credit losses | 3,643 | 552 | 5,635 | 6,104 | |||||||||||
| Net interest income after provision for loan | 55,307 | 56,910 | 223,093 | 187,359 | |||||||||||
| Non-interest income: | |||||||||||||||
| Wealth management revenues | 6,275 | 4,998 | 22,818 | 20,793 | |||||||||||
| Insurance commissions | 6,805 | 5,398 | 28,552 | 24,814 | |||||||||||
| Service charges | 3,058 | 3,298 | 12,362 | 10,881 | |||||||||||
| Net securities gains/(losses) | 0 | 46 | (433 | ) | 3,383 | ||||||||||
| Mortgage banking revenues | 1,104 | 954 | 3,957 | 2,282 | |||||||||||
| ATM/debit card revenue | 4,204 | 4,233 | 16,807 | 14,347 | |||||||||||
| Other | 4,917 | 2,841 | 12,223 | 10,286 | |||||||||||
| Total non-interest income | 26,363 | 21,768 | 96,286 | 86,786 | |||||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and employee benefits | 31,957 | 29,925 | 124,134 | 104,962 | |||||||||||
| Net occupancy and equipment expense | 7,285 | 7,977 | 30,407 | 26,946 | |||||||||||
| Net other real estate owned (income) expense | 240 | 800 | 411 | 1,862 | |||||||||||
| FDIC insurance | 863 | 1,015 | 3,463 | 3,339 | |||||||||||
| Amortization of intangible assets | 3,314 | 3,560 | 13,556 | 9,127 | |||||||||||
| Stationary and supplies | 642 | 404 | 1,885 | 1,346 | |||||||||||
| Legal and professional expense | 5,386 | 2,065 | 12,944 | 7,379 | |||||||||||
| ATM/debit card expense | 2,043 | 1,332 | 6,384 | 5,322 | |||||||||||
| Marketing and donations | 906 | 679 | 3,418 | 3,005 | |||||||||||
| Other | 3,661 | 9,268 | 18,381 | 22,452 | |||||||||||
| Total non-interest expense | 56,297 | 57,025 | 214,983 | 185,740 | |||||||||||
| Income before income taxes | 25,373 | 21,653 | 104,396 | 88,405 | |||||||||||
| Income taxes | 6,205 | 3,582 | 25,498 | 19,470 | |||||||||||
| Net income | $ | 19,168 | $ | 18,071 | $ | 78,898 | $ | 68,935 | |||||||
| Per Share Information | |||||||||||||||
| Basic earnings per common share | $ | 0.80 | $ | 0.76 | $ | 3.31 | $ | 3.17 | |||||||
| Diluted earnings per common share | 0.80 | 0.76 | 3.30 | 3.15 | |||||||||||
| Weighted average shares outstanding | 23,818,806 | 22,220,438 | 23,800,523 | 21,086,802 | |||||||||||
| Diluted weighted average shares outstanding | 23,908,340 | 22,319,334 | 23,895,681 | 21,176,946 | |||||||||||
| 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, | |||||||||||||||
|
2024 |
2024 | 2024 | 2024 |
2023 |
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| Interest income: | |||||||||||||||||||
| Interest and fees on loans | $ | 81,288 | $ | 81,775 | $ | 79,560 | $ | 77,823 | $ | 78,676 | |||||||||
| Interest on investment securities | 6,990 | 7,036 | 7,405 | 7,405 | 8,515 | ||||||||||||||
| Interest on federal funds sold & other deposits | 1,564 | 2,371 | 1,718 | 2,444 | 2,736 | ||||||||||||||
| Total interest income | 89,842 | 91,182 | 88,683 | 87,672 | 89,927 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Interest on deposits | 26,144 | 28,341 | 26,338 | 26,096 | 25,900 | ||||||||||||||
| Interest on securities sold under agreements to repurchase | 1,333 | 1,444 | 1,615 | 2,056 | 1,754 | ||||||||||||||
| Interest on other borrowings | 1,917 | 2,195 | 2,248 | 2,314 | 3,073 | ||||||||||||||
| Interest on jr. subordinated debentures | 510 | 567 | 537 | 542 | 545 | ||||||||||||||
| Interest on subordinated debt | 988 | 1,092 | 1,180 | 1,194 | 1,193 | ||||||||||||||
| Total interest expense | 30,892 | 33,639 | 31,918 | 32,202 | 32,465 | ||||||||||||||
| Net interest income | 58,950 | 57,543 | 56,765 | 55,470 | 57,462 | ||||||||||||||
| Provision for credit losses | 3,643 | 1,266 | 1,083 | (357 | ) | 552 | |||||||||||||
| Net interest income after provision for loan | 55,307 | 56,277 | 55,682 | 55,827 | 56,910 | ||||||||||||||
| Non-interest income: | |||||||||||||||||||
| Wealth management revenues | 6,275 | 5,816 | 5,405 | 5,322 | 4,998 | ||||||||||||||
| Insurance commissions | 6,805 | 6,003 | 6,531 | 9,213 | 5,398 | ||||||||||||||
| Service charges | 3,058 | 3,121 | 3,227 | 2,956 | 3,298 | ||||||||||||||
| Net securities gains/(losses) | 0 | (277 | ) | (156 | ) | 0 | 46 | ||||||||||||
| Mortgage banking revenues | 1,104 | 1,109 | 1,038 | 706 | 954 | ||||||||||||||
| ATM/debit card revenue | 4,204 | 4,267 | 4,281 | 4,055 | 4,233 | ||||||||||||||
| Other | 4,917 | 2,984 | 2,096 | 2,226 | 2,841 | ||||||||||||||
| Total non-interest income | 26,363 | 23,023 | 22,422 | 24,478 | 21,768 | ||||||||||||||
| Non-interest expense: | |||||||||||||||||||
| Salaries and employee benefits | 31,957 | 31,565 | 30,164 | 30,448 | 29,925 | ||||||||||||||
| Net occupancy and equipment expense | 7,285 | 8,055 | 7,507 | 7,560 | 7,977 | ||||||||||||||
| Net other real estate owned (income) expense | 240 | 107 | 85 | (21 | ) | 800 | |||||||||||||
| FDIC insurance | 863 | 829 | 902 | 869 | 1,015 | ||||||||||||||
| Amortization of intangible assets | 3,314 | 3,405 | 3,340 | 3,497 | 3,560 | ||||||||||||||
| Stationary and supplies | 642 | 482 | 370 | 391 | 404 | ||||||||||||||
| Legal and professional expense | 5,386 | 2,573 | 2,536 | 2,449 | 2,065 | ||||||||||||||
| ATM/debit card expense | 2,043 | 1,869 | 1,281 | 1,191 | 1,332 | ||||||||||||||
| Marketing and donations | 906 | 836 | 814 | 862 | 679 | ||||||||||||||
| Other | 3,661 | 4,212 | 4,392 | 6,116 | 9,268 | ||||||||||||||
| Total non-interest expense | 56,297 | 53,933 | 51,391 | 53,362 | 57,025 | ||||||||||||||
| Income before income taxes | 25,373 | 25,367 | 26,713 | 26,943 | 21,653 | ||||||||||||||
| Income taxes | 6,205 | 5,885 | 6,968 | 6,440 | 3,582 | ||||||||||||||
| Net income | $ | 19,168 | $ | 19,482 | $ | 19,745 | $ | 20,503 | $ | 18,071 | |||||||||
| Per Share Information | |||||||||||||||||||
| Basic earnings per common share | $ | 0.80 | $ | 0.81 | $ | 0.83 | $ | 0.86 | $ | 0.76 | |||||||||
| Diluted earnings per common share | 0.80 | 0.81 | 0.82 | 0.86 | 0.76 | ||||||||||||||
| Weighted average shares outstanding | 23,818,806 | 23,905,099 | 23,896,210 | 23,872,731 | 23,837,853 | ||||||||||||||
| Diluted weighted average shares outstanding | 23,908,340 | 24,006,647 | 23,998,152 | 23,960,335 | 23,921,758 | ||||||||||||||
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FIRST MID BANCSHARES, INC. |
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Consolidated Financial Highlights and Ratios |
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| (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, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | ||||||||||||||||
| Loan Portfolio | ||||||||||||||||||||
| Construction and land development | $ | 236,093 | $ | 190,857 | $ | 195,389 | $ | 186,851 | $ | 205,077 | ||||||||||
| Farm real estate loans | 390,760 | 384,620 | 387,015 | 388,941 | 391,132 | |||||||||||||||
| 1-4 Family residential properties | 496,597 | 505,342 | 507,517 | 518,641 | 542,469 | |||||||||||||||
| Multifamily residential properties | 332,644 | 338,167 | 334,446 | 312,758 | 319,129 | |||||||||||||||
| Commercial real estate | 2,417,585 | 2,440,120 | 2,406,955 | 2,396,092 | 2,384,704 | |||||||||||||||
| Loans secured by real estate | 3,873,679 | 3,859,106 | 3,831,322 | 3,803,283 | 3,842,511 | |||||||||||||||
| Agricultural operating loans | 239,671 | 233,414 | 213,997 | 213,217 | 196,272 | |||||||||||||||
| Commercial and industrial loans | 1,335,920 | 1,283,631 | 1,268,646 | 1,227,906 | 1,266,159 | |||||||||||||||
| Consumer loans | 53,960 | 63,222 | 70,841 | 79,569 | 91,014 | |||||||||||||||
| All other loans | 169,232 | 175,218 | 175,811 | 175,320 | 184,609 | |||||||||||||||
| Total loans | 5,672,462 | 5,614,591 | 5,560,617 | 5,499,295 | 5,580,565 | |||||||||||||||
| Deposit Portfolio | ||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,329,155 | $ | 1,387,290 | $ | 1,393,336 | $ | 1,448,299 | $ | 1,398,234 | ||||||||||
| Interest bearing demand deposits | 1,907,733 | 1,834,123 | 1,909,993 | 1,974,857 | 1,837,296 | |||||||||||||||
| Savings deposits | 636,427 | 648,582 | 673,381 | 704,777 | 710,586 | |||||||||||||||
| Money Market | 1,196,537 | 1,183,594 | 1,127,699 | 1,107,177 | 1,129,950 | |||||||||||||||
| Time deposits | 987,244 | 1,035,245 | 1,011,370 | 1,007,826 | 1,047,593 | |||||||||||||||
| Total deposits | 6,057,096 | 6,088,834 | 6,115,779 | 6,242,936 | 6,123,659 | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Non-performing loans | $ | 29,835 | $ | 18,242 | $ | 19,079 | $ | 20,064 | $ | 20,128 | ||||||||||
| Non-performing assets | 32,030 | 20,076 | 20,557 | 21,471 | 21,292 | |||||||||||||||
| Net charge-offs (recoveries) | 2,235 | 804 | 708 | 381 | 118 | |||||||||||||||
| Allowance for credit losses to non-performing loans | 235.23 | % | 377.01 | % | 358.05 | % | 338.60 | % | 341.19 | % | ||||||||||
| Allowance for credit losses to total loans outstanding | 1.24 | % | 1.22 | % | 1.23 | % | 1.24 | % | 1.23 | % | ||||||||||
| Nonperforming loans to total loans | 0.53 | % | 0.32 | % | 0.34 | % | 0.36 | % | 0.36 | % | ||||||||||
| Nonperforming assets to total assets | 0.43 | % | 0.27 | % | 0.27 | % | 0.28 | % | 0.28 | % | ||||||||||
| Special Mention loans | 57,848 | 38,151 | 30,767 | 65,693 | 74,050 | |||||||||||||||
| Substandard and Doubtful loans | 35,516 | 29,037 | 27,594 | 29,296 | 28,945 | |||||||||||||||
| Common Share Data | ||||||||||||||||||||
| Common shares outstanding | 23,895,807 | 23,904,051 | 23,895,868 | 23,888,929 | 23,827,137 | |||||||||||||||
| Book value per common share | $ | 35.42 | $ | 35.91 | $ | 34.05 | $ | 33.40 | $ | 33.29 | ||||||||||
| Tangible book value per common share(1) | 24.46 | 24.82 | 23.28 | 22.49 | 22.20 | |||||||||||||||
| Tangible book value per common share excluding other comprehensive income at period end(1) | 30.42 | 29.70 | 29.43 | 28.67 | 27.93 | |||||||||||||||
| Market price of stock | 36.82 | 38.91 | 32.88 | 32.68 | 34.66 | |||||||||||||||
| Key Performance Ratios and Metrics | ||||||||||||||||||||
| End of period earning assets | $ | 6,775,075 | $ | 6,786,458 | $ | 6,812,574 | $ | 6,923,742 | $ | 6,780,160 | ||||||||||
| Average earning assets | 6,884,303 | 6,857,070 | 6,815,932 | 6,884,855 | 6,948,309 | |||||||||||||||
| Average rate on average earning assets (tax equivalent) | 5.24 | % | 5.35 | % | 5.27 | % | 5.16 | % | 5.18 | % | ||||||||||
| Average rate on cost of funds | 1.83 | % | 2.00 | % | 1.91 | % | 1.91 | % | 1.85 | % | ||||||||||
| Net interest margin (tax equivalent)(1) | 3.41 | % | 3.35 | % | 3.36 | % | 3.25 | % | 3.33 | % | ||||||||||
| Return on average assets | 1.01 | % | 1.03 | % | 1.05 | % | 1.07 | % | 0.93 | % | ||||||||||
| Adjusted return on average assets(1) | 1.10 | % | 1.05 | % | 1.07 | % | 1.17 | % | 1.16 | % | ||||||||||
| Return on average common equity | 9.04 | % | 9.40 | % | 9.92 | % | 10.37 | % | 9.76 | % | ||||||||||
| Adjusted return on average common equity(1) | 9.80 | % | 9.58 | % | 10.11 | % | 11.28 | % | 12.11 | % | ||||||||||
| Efficiency ratio (tax equivalent)(1) | 59.51 | % | 61.33 | % | 59.61 | % | 59.09 | % | 58.91 | % | ||||||||||
| Full-time equivalent employees | 1,198 | 1,207 | 1,185 | 1,188 | 1,187 | |||||||||||||||
| 1Non-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, 2024 | ||||||||||
| QTD Average | Average | |||||||||
| Balance | Interest | Rate | ||||||||
| INTEREST EARNING ASSETS | ||||||||||
| Interest bearing deposits | $ | 120,744 | $ | 1,522 | 5.01 | % | ||||
| Federal funds sold | 49 | – | 0.00 | % | ||||||
| Certificates of deposits investments | 3,500 | 42 | 4.77 | % | ||||||
| Investment Securities: | ||||||||||
| Taxable (total less municipals) | 855,006 | 5,145 | 2.41 | % | ||||||
| Tax-exempt (Municipals) | 270,899 | 2,336 | 3.45 | % | ||||||
| Loans (net of unearned income) | 5,634,105 | 81,564 | 5.76 | % | ||||||
| Total interest earning assets | 6,884,303 | 90,609 | 5.24 | % | ||||||
| NONEARNING ASSETS | ||||||||||
| Cash and due from banks | 98,020 | |||||||||
| Premises and equipment | 101,449 | |||||||||
| Other nonearning assets | 590,928 | |||||||||
| Allowance for loan losses | (69,580 | ) | ||||||||
| Total assets | $ | 7,605,120 | ||||||||
| INTEREST BEARING LIABILITIES | ||||||||||
| Demand deposits | $ | 3,103,831 | $ | 16,538 | 2.12 | % | ||||
| Savings deposits | 643,575 | 182 | 0.11 | % | ||||||
| Time deposits | 1,007,663 | 9,424 | 3.72 | % | ||||||
| Total interest bearing deposits | 4,755,069 | 26,144 | 2.19 | % | ||||||
| Repurchase agreements | 214,174 | 1,333 | 2.48 | % | ||||||
| FHLB advances | 213,634 | 1,917 | 3.57 | % | ||||||
| Federal funds purchased | 1 | – | 0.00 | % | ||||||
| Subordinated debt | 87,407 | 988 | 4.50 | % | ||||||
| Jr. subordinated debentures | 24,251 | 510 | 8.37 | % | ||||||
| Other debt | 2 | – | 0.00 | % | ||||||
| Total borrowings | 539,469 | 4,748 | 3.50 | % | ||||||
| Total interest bearing liabilities | 5,294,538 | 30,892 | 2.32 | % | ||||||
| NONINTEREST BEARING LIABILITIES | ||||||||||
| Demand deposits | 1,406,989 | Average cost of funds | 1.83 | % | ||||||
| Other liabilities | 51,029 | |||||||||
| Stockholders’ equity | 852,564 | |||||||||
| Total liabilities & stockholders’ equity | $ | 7,605,120 | ||||||||
| Net Interest Earnings / Spread | $ | 59,717 | 2.92 | % | ||||||
| Impact of Non-Interest Bearing Funds | 0.49 | % | ||||||||
| Tax effected yield on interest earning assets | 3.41 | % | ||||||||
| 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, | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||
| Net interest income as reported | $ | 58,950 | $ | 57,543 | $ | 56,765 | $ | 55,470 | $ | 57,462 | |||||||||
| Net interest income, (tax equivalent) | 59,717 | 58,627 | 57,361 | 56,086 | 58,255 | ||||||||||||||
| Average earning assets | 6,884,303 | 6,857,070 | 6,815,932 | 6,884,855 | 6,948,309 | ||||||||||||||
| Net interest margin (tax equivalent) | 3.41 | % | 3.35 | % | 3.36 | % | 3.25 | % | 3.33 | % | |||||||||
| Common stockholder’s equity | $ | 846,391 | $ | 858,497 | $ | 813,645 | $ | 797,952 | $ | 793,204 | |||||||||
| Goodwill and intangibles, net | 261,906 | 265,139 | 257,377 | 260,699 | 264,231 | ||||||||||||||
| Common shares outstanding | 23,896 | 23,904 | 23,896 | 23,889 | 23,827 | ||||||||||||||
| Tangible Book Value per common share | $ | 24.46 | $ | 24.82 | $ | 23.28 | $ | 22.49 | $ | 22.20 | |||||||||
| Accumulated other comprehensive loss (AOCI) | (142,383 | ) | (116,692 | ) | (146,998 | ) | (147,667 | ) | (136,427 | ) | |||||||||
| Adjusted tangible book value per common share | $ | 30.42 | $ | 29.70 | $ | 29.43 | $ | 28.67 | $ | 27.93 | |||||||||
| 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, | |||||||||||||||
| 2024 | 2024 | 2024 | 2024 | 2023 | |||||||||||||||
| Adjusted earnings Reconciliation | |||||||||||||||||||
| Net Income – GAAP | $ | 19,168 | $ | 19,482 | $ | 19,745 | $ | 20,503 | $ | 18,071 | |||||||||
| Adjustments (post-tax):(1) | |||||||||||||||||||
| Nonrecurring technology project expenses | 1,710 | – | – | – | – | ||||||||||||||
| Net (gain)/loss on securities sales | – | 219 | 123 | – | (36 | ) | |||||||||||||
| Integration and acquisition expenses | – | 137 | 250 | 1,804 | 4,385 | ||||||||||||||
| Total non-recurring adjustments (non-GAAP) | $ | 1,710 | $ | 356 | $ | 373 | $ | 1,804 | $ | 4,348 | |||||||||
| Adjusted earnings – non-GAAP | $ | 20,878 | $ | 19,838 | $ | 20,118 | $ | 22,307 | $ | 22,419 | |||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 0.87 | $ | 0.83 | $ | 0.84 | $ | 0.93 | $ | 0.94 | |||||||||
| Adjusted return on average assets – non-GAAP | 1.10 | % | 1.05 | % | 1.07 | % | 1.17 | % | 1.16 | % | |||||||||
| Adjusted return on average common equity – non-GAAP | 9.80 | % | 9.58 | % | 10.11 | % | 11.28 | % | 12.11 | % | |||||||||
| Efficiency Ratio Reconciliation | |||||||||||||||||||
| Noninterest expense – GAAP | $ | 56,297 | $ | 53,933 | $ | 51,391 | $ | 53,362 | $ | 57,025 | |||||||||
| Other real estate owned property income (expense) | (240 | ) | (107 | ) | (85 | ) | 21 | (800 | ) | ||||||||||
| Amortization of intangibles | (3,314 | ) | (3,405 | ) | (3,340 | ) | (3,497 | ) | (3,560 | ) | |||||||||
| Nonrecurring severance expense | (2,164 | ) | – | – | – | – | |||||||||||||
| Integration and acquisition expenses | – | (174 | ) | (316 | ) | (2,283 | ) | (5,550 | ) | ||||||||||
| Adjusted noninterest expense (non-GAAP) | $ | 50,579 | $ | 50,247 | $ | 47,650 | $ | 47,603 | $ | 47,115 | |||||||||
| Net interest income -GAAP | $ | 58,950 | $ | 57,543 | $ | 56,765 | $ | 55,470 | $ | 57,462 | |||||||||
| Effect of tax-exempt income(1) | (323 | ) | 1,084 | 596 | 616 | 793 | |||||||||||||
| Adjusted net interest income (non-GAAP) | $ | 58,627 | $ | 58,627 | $ | 57,361 | $ | 56,086 | $ | 58,255 | |||||||||
| Noninterest income – GAAP | $ | 26,363 | $ | 23,023 | $ | 22,422 | $ | 24,478 | $ | 21,768 | |||||||||
| Net (gain)/loss on securities sales | 0 | 277 | 156 | 0 | (46 | ) | |||||||||||||
| Adjusted noninterest income (non-GAAP) | $ | 26,363 | $ | 23,300 | $ | 22,578 | $ | 24,478 | $ | 21,722 | |||||||||
| Adjusted total revenue (non-GAAP) | $ | 84,990 | $ | 81,927 | $ | 79,939 | $ | 80,564 | $ | 79,977 | |||||||||
| Efficiency ratio (non-GAAP) | 59.51 | % | 61.33 | % | 59.61 | % | 59.09 | % | 58.91 | % | |||||||||
| (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. | |||||||||||||||||||
