• First Mid Bancshares, Inc. Announces First Quarter 2023 Results

    المصدر: Nasdaq GlobeNewswire / 26 أبريل 2023 16:15:01   America/New_York

    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 assets12.88%
    Common equity tier 1 capital to risk-weighted assets12.51%
    Leverage ratio9.89%
      

    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 funds1.38%
    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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