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First Mid Bancshares, Inc. Announces Second Quarter 2021 Results
المصدر: Nasdaq GlobeNewswire / 29 يوليو 2021 09:00:02 America/New_York
MATTOON, Ill., July 29, 2021 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter and year-to-date period ended June 30, 2021.
Highlights
- Net income of $12.2 million, or $0.68 diluted EPS
- Adjusted net income (non-GAAP) of $17.8 million, or $0.98 diluted EPS
- Board of Directors increased the quarterly dividend by 7.3% to $0.22 per share
- Completed the bank merger and system conversion with Providence Bank in May
- Acquired and integrated an insurance agency and a separate wealth management financial services firm with a combined annualized non-interest income of over $2.0 million
- Announced pending acquisition of Delta Bancshares Company (“Delta”), parent to Jefferson Bank & Trust
- Announced pending acquisition of a St. Louis based commercial lending team including a portfolio of loans of approximately $225 million and deposits of approximately $280 million
“The second quarter reflected very good financial and operating performance with strong earnings and the successful completion of the integration with Providence,” said Joe Dively, Chairman and Chief Executive Officer. “Our earnings, adjusted for the acquisition and branch consolidation costs, are a record high. In addition, we continued our strategic focus on growing noninterest income and expanding our services for our customers by completing an acquisition in each of our insurance and wealth management business lines.”
“Lastly, we completed extensive due diligence on the pending acquisitions of both Delta Bancshares Company and a separate St. Louis based team and portfolio. We are extremely excited to deepen our presence in the St. Louis market area with these two announced acquisitions. Delta has a long history providing financial services in the market and the lenders in the loan and deposit deal all worked with our current market President in the past. The former Providence employees did a great job in working with our customers through the integration and we are now in a great position to layer on these pending acquisitions to create an even larger Missouri presence.” Dively concluded.
Net Interest Income
Net interest income for the second quarter of 2021 increased by $6.0 million, or 16.3% compared to the first quarter of 2021. Interest income increased by $5.8 million and interest expense decreased $0.2 million from the previous quarter. The increases are primarily driven by the first full quarter with Providence included. Accretion income increased by $1.6 million in the quarter for a total of $2.8 million. This was partially offset by a decline in PPP fee income of $0.3 million to $2.0 million in total. At quarter end, the Company had $7.1 million of deferred fee income on PPP loans remaining.
In comparison to the second quarter of 2020, net interest income increased $11.2 million, or 35.4%. The increase was primarily the result of the addition of Providence, the additional income from the PPP, and the active management to lower funding costs.
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.22% for the second quarter of 2021, which was an increase of six basis points compared to the prior quarter. Earning asset yields were flat, while the average cost of funds declined by six basis points as the Company continues to allow wholesale time deposits and FHLB advances to mature.
In comparison to the second quarter of last year, the net interest margin decreased three basis points with earning asset yields down 16 basis points and average cost of funds lower by 13 basis points. The current quarter included $2.0 million of PPP fee income compared to $1.0 million in the second quarter of 2020. The current quarter also included $2.8 million in accretion income compared to $0.5 million in the same period last year.
Loan Portfolio
Total loans ended the quarter at $3.80 billion, representing a decrease of $146.8 million compared to the prior quarter. PPP loans decreased by $94.6 million and ended the period with $165.1 million outstanding. Excluding PPP, loans declined by $52.2 million in the quarter. The Company had a solid quarter of growth in loans from both new and existing customers, but experienced higher payoffs than normal more than offsetting the growth.
The Company continues to see its loan deferrals trending lower. As of July 15, 2021, outstanding deferrals totaled $9.9 million, or 0.3% of the loan portfolio. It is not anticipated that any of the customers with outstanding deferrals will receive an additional deferral when they mature.
Asset Quality
The Company’s asset quality measures continue to reflect a strong credit culture. At quarter end, the ratio of non-performing loans to total loans was 0.80%, and the allowance for credit losses (“ACL”) to non-performing loans was 180%. Nonperforming loans and nonperforming assets decreased in the quarter. The ratio of nonperforming assets to total assets was 0.65% at quarter end. Net charge-offs were $0.3 million during the second quarter compared to $0.7 million in the prior quarter. The Company recognized significant improvement in its classified loans during the quarter. Special mention loans decreased to $86.9 million and substandard loans decreased to $55.5 million.
Provision expense was recorded as a credit in the amount of $0.6 million in the second quarter compared to $6.1 million in the same quarter last year. The improving economic conditions combined with low levels of charge-offs and muted loan growth from higher payoffs resulted in a reduction to the ACL of $0.8 million. As of June 30, 2021, the ACL, excluding $165.1 million of PPP loans, was 1.50% of total loans.
Deposits
Total deposits ended the quarter at $4.74 billion, which represented an increase of $1.6 million from the prior quarter. The Company’s average rate on cost of funds was 0.30% for the quarter compared to 0.36% in the prior quarter and 0.43% in the second quarter of 2020. The Company continues to reprice CD’s lower and let wholesale funding sources mature without replacement.
Noninterest Income
Noninterest income for the second quarter of 2021 was $18.3 million compared to $17.7 million in the first quarter of 2021. The increase compared to the prior quarter was partially due to the full quarter inclusion of Providence. Both the insurance and wealth management divisions had strong quarters compared to what has typically been a more seasonally soft period. The Ag group within wealth management benefited from higher commodity prices driving larger management fees and more farm sales than historically occurs in the second quarter. Insurance and wealth management businesses represented approximately 54.7% of the Company’s noninterest income providing significant diversification and more stable revenue than other fee income.
In comparison to the second quarter of 2020, noninterest income increased $4.4 million, or 31.7%. Combined, insurance and wealth management business lines increased 26.4% over the same period last year. The other fee income services increased partially by the addition of Providence.
Noninterest Expenses
Noninterest expense for the second quarter totaled $46.0 million compared to $37.6 million in the first quarter. The increase was primarily driven by the first full quarter inclusive of Providence, non-recurring acquisition costs of $5.8 million, and non-recurring branch consolidation costs of $1.2 million.
In comparison to the second quarter of 2020, noninterest expenses increased $19.9 million. The increase was primarily due to the addition of Providence and non-recurring costs.
The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the second quarter 2021 was 57.9% compared to 61.2% in the prior quarter and 53.7% for the same period last year.
Regulatory 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 13.91% Tier 1 capital to risk-weighted assets 10.92% Common equity tier 1 capital to risk-weighted assets 10.51% Leverage ratio 8.87% The Company’s Board of Directors approved an increase of $0.015, or 7.3% per share, to its quarterly dividend. The increase results in the amount of $0.22 payable on September 1, 2021 for shareholders of record on August 18, 2021.
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 $5.8 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, our First Mid team takes great pride in their work and their ability to serve our customers well over the last 156 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 Delta, such as discussions of First Mid’s and Delta’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 Delta, 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 Delta will not be realized or will not be realized within the expected time period; the risk that integration of the operations of Delta 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 Delta; 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 Delta’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 Delta; accounting principles, policies and guidelines; the severity, magnitude and duration of the COVID-19 pandemic, the direct and indirect impact of such pandemic, including responses to the pandemic by the U.S., state and local governments, customers' businesses, the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect First Mid’s and Delta’s liquidity and capital positions, impair the ability of First Mid’s and Delta’s borrowers to repay outstanding loans, impair collateral values, and further increase the allowance for credit losses, and the impact of the COVID-19 pandemic on First Mid’s and Delta’s financial results, including possible lost revenue and increased expenses (including cost of capital), as well as possible goodwill impairment charges. 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 Delta that also constitutes a prospectus of First Mid, which will be sent to the shareholders of Delta. Investors in Delta 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, or by directing a request when such a filing is made to First Mid Bancshares, P.O. Box 499, Mattoon, IL 61938, Attention: Investor Relations; or to Delta Bancshares Company, 2301 Market Street, Saint Louis, MO 63103, Attention: John Dulle, Executive Vice President. A final proxy statement/prospectus will be mailed to the shareholders of Delta.Participants in the Solicitation
First Mid and Delta, 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 2021 annual meeting of stockholders, which was filed with the SEC on March 19, 2021. 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.comMatt Smith
Chief Financial Officer
217-258-1528
msmith@firstmid.com– Tables Follow –
FIRST MID BANCSHARES, INC. Condensed Consolidated Balance Sheets (In thousands, unaudited) As of June 30, December 31, June 30, 2021 2020 2020 Assets Cash and cash equivalents $ 340,741 $ 417,281 $ 238,487 Investment securities 1,231,998 887,169 727,154 Loans (including loans held for sale) 3,796,304 3,138,419 3,205,262 Less allowance for credit losses (54,597 ) (41,910 ) (38,381 ) Net loans 3,741,707 3,096,509 3,166,881 Premises and equipment, net 82,099 58,206 58,905 Goodwill and intangibles, net 139,995 128,120 130,656 Bank owned life insurance 130,734 68,955 68,084 Other assets 123,308 70,108 68,144 Total assets $ 5,790,582 $ 4,726,348 $ 4,458,311 Liabilities and Stockholders' Equity Deposits: Non-interest bearing $ 1,157,009 $ 936,926 $ 817,623 Interest bearing 3,582,313 2,755,858 2,568,204 Total deposits 4,739,322 3,692,784 3,385,827 Repurchase agreement with customers 151,394 206,937 350,288 Other borrowings 112,753 93,969 103,939 Junior subordinated debentures 19,111 19,027 18,942 Subordinated debt 94,326 94,253 - Other liabilities 57,610 51,150 50,042 Total liabilities 5,174,516 4,158,120 3,909,038 Total stockholders' equity 616,066 568,228 549,273 Total liabilities and stockholders' equity $ 5,790,582 $ 4,726,348 $ 4,458,311 FIRST MID BANCSHARES, INC. Condensed Consolidated Statements of Income (In thousands, except per share data, unaudited) Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Interest income: Interest and fees on loans $ 40,795 $ 31,382 $ 76,681 $ 61,409 Interest on investment securities 5,739 4,077 10,581 8,666 Interest on federal funds sold & other deposits 101 76 189 201 Total interest income 46,635 35,535 87,451 70,276 Interest expense: Interest on deposits 2,262 3,105 4,746 6,966 Interest on securities sold under agreements to repurchase 57 158 127 352 Interest on other borrowings 445 516 819 1,111 Interest on jr. subordinated debentures 139 0 279 0 Interest on subordinated debt 985 174 1,969 392 Total interest expense 3,888 3,953 7,940 8,821 Net interest income 42,747 31,582 79,511 61,455 Provision for loan losses (560 ) 6,136 11,576 11,617 Net interest income after provision for loan 43,307 25,446 67,935 49,838 Non-interest income: Wealth management revenues 5,016 3,827 9,942 7,453 Insurance commissions 4,988 4,088 10,845 10,709 Service charges 1,539 1,111 2,903 2,889 Securities gains, net 73 287 77 818 Mortgage banking revenues 1,691 1,236 3,100 1,544 ATM/debit card revenue 3,141 2,239 5,840 4,226 Other 1,836 1,097 3,326 2,756 Total non-interest income 18,284 13,885 36,033 30,395 Non-interest expense: Salaries and employee benefits 24,908 15,455 48,395 31,955 Net occupancy and equipment expense 5,482 4,141 10,452 8,383 Net other real estate owned (income) expense 1,966 (2 ) 2,044 (48 ) FDIC insurance 478 289 930 382 Amortization of intangible assets 1,295 1,290 2,515 2,585 Stationary and supplies 235 275 551 543 Legal and professional expense 1,639 1,489 3,041 2,887 Marketing and donations 507 314 1,009 795 Other 9,503 2,847 14,676 6,347 Total non-interest expense 46,013 26,098 83,613 53,829 Income before income taxes 15,578 13,233 20,355 26,404 Income taxes 3,357 3,096 4,025 6,268 Net income $ 12,221 $ 10,137 $ 16,330 $ 20,136 Per Share Information Basic earnings per common share $ 0.68 $ 0.61 $ 0.92 $ 1.21 Diluted earnings per common share 0.68 0.60 0.92 1.20 Weighted average shares outstanding 18,067,190 16,709,886 17,685,679 16,701,536 Diluted weighted average shares outstanding 18,120,210 16,756,794 17,738,699 16,748,444 FIRST MID BANCSHARES, INC. Condensed Consolidated Statements of Income (In thousands, except per share data, unaudited) For the Quarter Ended June 30, March 31, December 31, September 30, June 30, 2021 2021 2020 2020 2020 Interest income: Interest and fees on loans $ 40,795 $ 35,886 $ 33,254 $ 32,151 $ 31,382 Interest on investment securities 5,739 4,842 4,226 4,074 4,077 Interest on federal funds sold & other deposits 101 88 90 70 76 Total interest income 46,635 40,816 37,570 36,295 35,535 Interest expense: Interest on deposits 2,262 2,484 2,617 3,168 3,105 Interest on securities sold under agreements to repurchase 57 70 68 68 158 Interest on other borrowings 445 374 371 395 516 Interest on jr. subordinated debentures 139 140 143 147 174 Interest on subordinated debt 985 984 931 - - Total interest expense 3,888 4,052 4,130 3,778 3,953 Net interest income 42,747 36,764 33,440 32,517 31,582 Provision for loan losses (560 ) 12,136 603 3,883 6,136 Net interest income after provision for loan 43,307 24,628 32,837 28,634 25,446 Non-interest income: Wealth management revenues 5,016 4,926 5,232 3,468 3,827 Insurance commissions 4,988 5,857 3,477 3,291 4,088 Service charges 1,539 1,364 1,527 1,446 1,111 Securities gains, net 73 4 193 95 287 Mortgage banking revenues 1,691 1,409 1,870 1,661 1,236 ATM/debit card revenue 3,141 2,699 2,369 2,367 2,239 Other 1,836 1,490 879 1,250 1,097 Total non-interest income 18,284 17,749 15,547 13,578 13,885 Non-interest expense: Salaries and employee benefits 24,908 23,487 19,151 15,346 15,455 Net occupancy and equipment expense 5,482 4,970 3,962 4,363 4,141 Net other real estate owned (income) expense 1,966 78 (20 ) 110 (2 ) FDIC insurance 478 452 458 469 289 Amortization of intangible assets 1,295 1,220 1,200 1,277 1,290 Stationary and supplies 235 316 275 262 275 Legal and professional expense 1,639 1,402 1,220 1,320 1,489 Marketing and donations 507 502 434 387 314 Other 9,503 5,173 3,651 3,393 2,847 Total non-interest expense 46,013 37,600 30,331 26,927 26,098 Income before income taxes 15,578 4,777 18,053 15,285 13,233 Income taxes 3,357 668 4,484 3,720 3,096 Net income $ 12,221 $ 4,109 $ 13,569 $ 11,565 $ 10,137 Per Share Information Basic earnings per common share $ 0.68 $ 0.24 $ 0.81 $ 0.69 $ 0.61 Diluted earnings per common share 0.68 0.24 0.81 0.69 0.60 Weighted average shares outstanding 18,067,190 17,299,927 16,735,926 16,728,191 16,709,886 Diluted weighted average shares outstanding 18,120,210 17,352,947 16,779,129 16,775,099 16,756,794 FIRST MID BANCSHARES, INC. Consolidated Financial Highlights and Ratios (Dollars in thousands, except per share data) (Unaudited) As of and for the Quarter Ended June 30, March 31, December 31, September 30, June 30, 2021 2021 2020 2020 2020 Loan Portfolio Construction and land development $ 141,568 $ 165,376 $ 122,479 $ 167,515 $ 180,934 Farm real estate loans 277,362 269,652 254,341 256,230 251,382 1-4 Family residential properties 394,902 412,470 325,762 339,172 342,036 Multifamily residential properties 274,910 297,984 189,632 139,255 141,015 Commercial real estate 1,480,198 1,402,885 1,174,300 1,177,571 1,123,540 Loans secured by real estate 2,568,940 2,548,367 2,066,514 2,079,743 2,038,907 Agricultural operating loans 123,101 121,070 137,352 141,074 149,043 Commercial and industrial loans 864,554 1,017,400 738,313 807,668 811,169 Consumer loans 84,541 91,705 78,002 80,348 82,084 All other loans 155,168 164,557 118,238 127,414 124,059 Total loans 3,796,304 3,943,099 3,138,419 3,236,247 3,205,262 Deposit Portfolio Non-interest bearing demand deposits $ 1,157,009 $ 1,185,181 $ 936,926 $ 837,602 $ 817,623 Interest bearing demand deposits 1,418,717 1,268,882 1,031,183 1,053,691 938,710 Savings deposits 598,232 668,098 499,427 485,241 474,545 Money Market 842,771 803,946 748,179 736,262 625,361 Time deposits 722,593 811,586 477,069 507,040 529,588 Total deposits 4,739,322 4,737,693 3,692,784 3,619,836 3,385,827 Asset Quality Non-performing loans $ 30,410 $ 31,984 $ 28,123 $ 22,439 $ 23,096 Non-performing assets 37,648 45,323 30,616 24,712 25,397 Net charge-offs 261 702 608 349 631 Allowance for credit losses to non-performing loans 179.54 % 173.27 % 149.02 % 186.80 % 166.18 % Allowance for credit losses to total loans outstanding 1.50 %1 1.50 %1 1.41 %1 1.41 %1 1.30 %1 Nonperforming loans to total loans 0.80 % 0.81 % 0.90 % 0.69 % 0.72 % Nonperforming assets to total assets 0.65 % 0.78 % 0.65 % 0.55 % 0.57 % Common Share Data Common shares outstanding 18,078,474 18,042,256 16,741,208 16,731,684 16,728,190 Book value per common share $ 34.08 $ 33.36 $ 33.94 $ 33.53 $ 32.84 Tangible book value per common share (2) 26.33 25.68 26.29 25.80 25.02 Market price of stock 40.51 43.93 33.66 24.95 26.23 Key Performance Ratios and Metrics End of period earning assets $ 5,269,882 $ 5,374,848 $ 4,367,717 $ 4,130,186 $ 4,093,511 Average earning assets 5,380,411 4,769,975 4,238,388 4,113,846 3,942,832 Average rate on average earning assets (tax equivalent) 3.52 % 3.52 % 3.58 % 3.56 % 3.68 % Average rate on cost of funds 0.30 % 0.36 % 0.41 % 0.39 % 0.43 % Net interest margin (tax equivalent) (2) 3.22 % 3.16 % 3.17 % 3.17 % 3.25 % Return on average assets 0.84 % 0.32 % 1.18 % 1.03 % 0.94 % Return on average common equity 8.00 % 2.78 % 9.66 % 8.31 % 7.47 % Efficiency ratio (tax equivalent) (2) 57.94 % 61.20 % 58.27 % 54.66 % 53.70 % Full-time equivalent employees 960 983 824 816 828 1 Excludes Paycheck Protection Program 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 2021 QTD Average Average Balance Interest Rate INTEREST EARNING ASSETS Interest bearing deposits $ 341,907 $ 87 0.10 % Federal funds sold 1,328 - 0.00 % Certificates of deposits investments 2,690 15 2.24 % Investment Securities: Taxable (total less municipals) 890,660 4,046 1.82 % Tax-exempt (Municipals) 270,791 2,143 3.17 % Loans (net of unearned income) 3,873,035 40,956 4.24 % Total interest earning assets 5,380,411 47,247 3.52 % NONEARNING ASSETS Cash and due from banks 91,497 Premises and equipment 87,494 Other nonearning assets 341,570 Allowance for loan losses (55,656 ) Total assets $ 5,845,316 INTEREST BEARING LIABILITIES Demand deposits $ 2,173,498 $ 1,027 0.19 % Savings deposits 640,479 123 0.08 % Time deposits 788,375 1,112 0.57 % Total interest bearing deposits 3,602,352 2,262 0.25 % Repurchase agreements 177,002 57 0.13 % FHLB advances 112,622 445 1.58 % Federal funds purchased - - 0.00 % Subordinated debt 94,302 985 4.19 % Jr. subordinated debentures 19,083 139 2.92 % Other borrowings - - 0.00 % Total borrowings 403,009 1,626 1.62 % Total interest bearing liabilities 4,005,361 3,888 0.39 % NONINTEREST BEARING LIABILITIES Demand deposits 1,164,128 Average cost of funds 0.30 % Other liabilities 64,808 Stockholders' equity 611,019 Total liabilities & stockholders' equity $ 5,845,316 Net Interest Earnings / Spread $ 43,359 3.13 % Impact of Non-Interest Bearing Funds 0.09 % Tax effected yield on interest earning assets 3.22 % FIRST MID BANCSHARES, INC. Reconciliation of Non-GAAP Financial Measures (In thousands, unaudited) As of and for the Quarter Ended June 30, March 31, December 31, September 30, June 30, 2021 2021 2020 2020 2020 Net interest income as reported $ 42,747 $ 36,764 $ 33,440 $ 32,517 $ 31,582 Net interest income, (tax equivalent) 43,359 37,359 34,040 33,084 32,118 Average earning assets 5,380,411 4,769,975 4,238,388 4,113,846 3,942,832 Net interest margin (tax equivalent) 3.22 % 3.16 % 3.17 % 3.17 % 3.25 % Common stockholder's equity $ 616,066 $ 601,884 $ 568,228 $ 561,009 $ 549,273 Goodwill and intangibles, net 139,995 138,606 128,120 129,287 130,656 Common shares outstanding 18,078 18,042 16,741 16,732 16,728 Tangible Book Value per common share $ 26.33 $ 25.68 $ 26.29 $ 25.80 $ 25.02 FIRST MID BANCSHARES, INC. Reconciliation of Non-GAAP Financial Measures (In thousands, except per share data, unaudited) As of and for the Quarter Ended June 30, March 31, December 31, September 30, June 30, 2021 2021 2020 2020 2020 Adjusted earnings Reconciliation Net Income - GAAP $ 12,221 $ 4,109 $ 13,569 $ 11,565 $ 10,137 Adjustments (post-tax): (1) Acquisition ACL on non-PCD assets in provision expense - 9,072 - - - Branch optimization costs 960 Integration and acquisition expenses 4,634 2,036 292 69 204 Total non-recurring adjustments (non-GAAP) $ 5,595 $ 11,108 $ 292 $ 69 $ 204 Adjusted earnings - non-GAAP $ 17,816 $ 15,217 $ 13,861 $ 11,634 $ 10,341 Adjusted diluted earnings per share (non-GAAP) $ 0.98 $ 0.88 $ 0.83 $ 0.69 $ 0.62 Efficiency Ratio Reconciliation Noninterest expense - GAAP $ 46,013 $ 37,600 $ 30,331 $ 26,927 $ 26,098 Foreclosed property income (expense) (1,966 ) (78 ) 20 (110 ) 2 Amortization of intangibles (1,295 ) (1,220 ) (1,200 ) (1,277 ) (1,290 ) Branch optimization costs (1,215 ) integration and acquisition expenses (5,866 ) (2,578 ) (369 ) (87 ) (259 ) Adjusted noninterest expense (non-GAAP) $ 35,671 $ 33,724 $ 28,782 $ 25,453 $ 24,551 Net interest income -GAAP $ 42,747 $ 36,764 $ 33,440 $ 32,517 $ 31,582 Effect of tax-exempt income (1) 612 595 601 566 537 Adjusted net interest income (non-GAAP) $ 43,359 $ 37,359 $ 34,041 $ 33,083 $ 32,119 Noninterest income - GAAP $ 18,284 $ 17,749 $ 15,547 $ 13,578 $ 13,885 Gain on sales of investment securities, net (73 ) (4 ) (193 ) (95 ) (287 ) Adjusted noninterest income (non-GAAP) $ 18,211 $ 17,745 $ 15,354 $ 13,483 $ 13,598 Adjusted total revenue (non-GAAP) $ 61,570 $ 55,104 $ 49,395 $ 46,566 $ 45,717 Efficiency ratio (non-GAAP) 57.94 % 61.20 % 58.27 % 54.66 % 53.70 % (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. 