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First Mid Bancshares, Inc. Announces Third Quarter 2022 Results
المصدر: Nasdaq GlobeNewswire / 27 أكتوبر 2022 08:00:03 America/New_York
MATTOON, Ill., Oct. 27, 2022 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended September 30, 2022.
Highlights
- Net income of $17.9 million, or $0.88 diluted EPS
- Adjusted net income (non-GAAP) of $18.5 million, or $0.90 diluted EPS
- Solid loan growth of $71.6 million, or 1.5% for the quarter
- Strong asset quality ratios with adversely classified loans declining by 15.3% for the quarter
- Board of Directors declares regular quarterly dividend of $0.23 per share
“Our third quarter results were highlighted by solid loan growth and the strength in the credit quality of our loan portfolio,” said Joe Dively, Chairman and Chief Executive Officer. “Our diversified revenue sources continued to perform well with wealth management and insurance driving a year-over-year increase in noninterest income, despite significantly lower mortgage banking revenues. Net interest income and margin increased in the period, despite the significant movement in interest rates by the Federal Reserve adding pressure on funding costs.”
Net Interest Income
Net interest income for the third quarter of 2022 increased by $1.4 million, or 3.1% compared to the second quarter of 2022. Interest income increased by $5.5 million primarily driven by loan growth and higher interest rates. Interest expense increased by $4.0 million on increased rates and higher balances. Accretion income was the same as the previous quarter at $0.9 million.
In comparison to the third quarter of 2021, net interest income increased $2.8 million, or 6.1%. The increase was primarily the result of organic loan growth, the impact of the Jefferson Bank and Trust (“Jefferson”) acquisition, and rising interest rates.
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.21% for the third quarter of 2022, which was an increase of 1 basis point compared to the prior quarter. Earning asset yields increased by 27 basis points and the average cost of funds increased 26 basis points.
In comparison to the third quarter of last year, the net interest margin decreased 17 basis points. The primary reasons for the decrease were due to $0.7 million of lower accretion income and $5.1 million of lower PPP fee income compared to the third quarter of 2021.
Loan Portfolio
Total loans ended the quarter at $4.72 billion, representing an increase of $71.6 million compared to the prior quarter. Growth occurred in all sectors, except multifamily, which had multiple payoffs in the quarter from customer asset sales.
Asset Quality
First Mid’s asset quality continues to be very strong and positioned well for the varying economic cycles. On a combined basis, special mention and substandard loans decreased in the quarter by $11.3 million. As of September 30, 2022, the allowance for credit losses (“ACL”) decreased by $0.3 million to $58.8 million with an ending ACL to total loans ratio of 1.25%. In addition, the Company has $7.6 million, or 16 basis points, of discount remaining on purchased loans. Provision expense was recorded in the amount of $0.1 million and net charge offs totaled $0.4 million. Also, at the end of the third quarter, the ratio of non-performing loans to total loans was 0.44%, and the ACL to non-performing loans was 282%. The ratio of nonperforming assets to total assets was 0.38% at quarter end. Nonperforming loans increased $0.8 million in the period to $20.8 million.
Deposits
Total deposits ended the quarter at $5.48 billion, which represented an increase of $164.2 million from the prior quarter. The increase was primarily in money market balances where funds were moved from lower interest-bearing products and balances added from customer asset sales. The Company’s average rate on cost of funds was 0.56% compared to 0.30% in the prior quarter, and 0.29% versus the third quarter of 2021.
Noninterest Income
Noninterest income for the third quarter of 2022 was $16.8 million compared to $18.6 million in the second quarter of 2022. The decrease was expected as the third quarter typically reflects a seasonal decline in our wealth management revenues from farmland sales and in insurance renewals. Wealth management revenue was down $0.6 million and insurance revenue was down $1.5 million from the prior quarter. These declines were partially offset by increases in service charges and other income.
In comparison to the third quarter of 2021, noninterest income increased $0.4 million, or 2.6%. This increase is a testament to the strength of our diversification in revenues with wealth management and insurance driving the growth, which more than offset mortgage banking declines. The year-over-year increase in wealth management and insurance was a combined 10.6%.
Noninterest Expenses
Noninterest expense for the third quarter of 2022 totaled $41.5 million, which was flat compared to the prior quarter. The current quarter included $0.7 million of nonrecurring integration expenses for the Jefferson acquisition compared to $1.0 million in the second quarter. The current quarter also included an increase of $0.4 million of provision for unfunded commitments.
In comparison to the third quarter of 2021, noninterest expenses increased $5.2 million. The increase was primarily driven by the additional expense related to the Jefferson acquisition and overall inflationary changes.
The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the third quarter 2022 was 59.6% compared to 58.5% in the prior quarter and 52.7% 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 15.11% Tier 1 capital to risk-weighted assets 12.28% Common equity tier 1 capital to risk-weighted assets 11.91% Leverage ratio 9.52% The Company’s Board of Directors approved a regular quarterly dividend of $0.23 payable on December 1, 2022 for shareholders of record on November 17, 2022.
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, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 157 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; 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 liquidity and capital positions, impair the ability of First Mid’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 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.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 September 30, December 31, September 30, 2022 2021 2021 Assets Cash and cash equivalents $ 160,954 $ 168,602 $ 345,206 Investment securities 1,235,505 1,431,299 1,357,035 Loans (including loans held for sale) 4,720,290 3,995,523 3,947,769 Less allowance for credit losses (58,777 ) (54,655 ) (53,983 ) Net loans 4,661,513 3,940,868 3,893,786 Premises and equipment, net 90,659 81,484 81,823 Goodwill and intangibles, net 170,897 141,376 142,656 Bank owned life insurance 150,831 132,375 131,547 Other assets 181,024 90,578 91,306 Total assets $ 6,651,383 $ 5,986,582 $ 6,043,359 Liabilities and Stockholders' Equity Deposits: Non-interest bearing $ 1,334,686 $ 1,246,673 $ 1,242,950 Interest bearing 4,148,512 3,709,813 3,745,612 Total deposits 5,483,198 4,956,486 4,988,562 Repurchase agreement with customers 220,707 146,268 149,891 Other borrowings 181,232 86,446 112,641 Junior subordinated debentures 19,322 19,195 19,153 Subordinated debt 94,515 94,400 94,363 Other liabilities 51,694 49,893 51,524 Total liabilities 6,050,668 5,352,688 5,416,134 Total stockholders' equity 600,715 633,894 627,225 Total liabilities and stockholders' equity $ 6,651,383 $ 5,986,582 $ 6,043,359 FIRST MID BANCSHARES, INC. Condensed Consolidated Statements of Income (In thousands, except per share data, unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Interest income: Interest and fees on loans $ 49,278 $ 43,292 $ 132,741 $ 119,973 Interest on investment securities 7,302 5,835 22,095 16,416 Interest on federal funds sold & other deposits 174 136 346 325 Total interest income 56,754 49,263 155,182 136,714 Interest expense: Interest on deposits 4,915 2,234 9,586 6,980 Interest on securities sold under agreements to repurchase 428 52 632 179 Interest on other borrowings 1,927 359 2,848 1,178 Interest on jr. subordinated debentures 241 137 553 416 Interest on subordinated debt 986 985 2,958 2,954 Total interest expense 8,497 3,767 16,577 11,707 Net interest income 48,257 45,496 138,605 125,007 Provision for loan losses 142 1,103 4,001 12,679 Net interest income after provision for loan 48,115 44,393 134,604 112,328 Non-interest income: Wealth management revenues 4,843 4,204 16,291 14,146 Insurance commissions 4,158 3,932 16,903 14,777 Service charges 2,445 1,838 6,737 4,741 Securities gains, net 79 11 81 88 Mortgage banking revenues 355 1,477 1,125 4,577 ATM/debit card revenue 3,101 3,060 9,213 8,900 Other 1,810 1,837 6,125 5,163 Total non-interest income 16,791 16,359 56,475 52,392 Non-interest expense: Salaries and employee benefits 24,877 21,092 74,984 69,487 Net occupancy and equipment expense 5,903 5,382 18,131 15,834 Net other real estate owned (income) expense 58 1,507 243 3,551 FDIC insurance 479 268 1,341 1,198 Amortization of intangible assets 1,598 1,414 4,753 3,929 Stationary and supplies 361 299 997 850 Legal and professional expense 1,770 1,878 5,389 4,919 Marketing and donations 739 679 2,318 1,688 Other 5,764 3,802 15,333 18,478 Total non-interest expense 41,549 36,321 123,489 119,934 Income before income taxes 23,357 24,431 67,590 44,786 Income taxes 5,418 6,105 15,277 10,130 Net income $ 17,939 $ 18,326 $ 52,313 $ 34,656 Per Share Information Basic earnings per common share $ 0.88 $ 1.01 $ 2.61 $ 1.94 Diluted earnings per common share 0.88 1.01 2.60 1.94 Weighted average shares outstanding 20,454,669 18,083,126 20,070,687 17,819,619 Diluted weighted average shares outstanding 20,535,215 18,136,146 20,145,435 17,872,639 FIRST MID BANCSHARES, INC. Condensed Consolidated Statements of Income (In thousands, except per share data, unaudited) For the Quarter Ended September 30, June 30, March 31, December 31, September 30, 2022 2022 2022 2021 2021 Interest income: Interest and fees on loans $ 49,278 $ 43,555 $ 39,908 $ 39,711 $ 43,292 Interest on investment securities 7,302 7,623 7,170 6,500 5,835 Interest on federal funds sold & other deposits 174 105 67 88 136 Total interest income 56,754 51,283 47,145 46,299 49,263 Interest expense: Interest on deposits 4,915 2,523 2,148 2,057 2,234 Interest on securities sold under agreements to repurchase 428 137 67 52 52 Interest on other borrowings 1,927 645 276 336 359 Interest on jr. subordinated debentures 241 166 146 125 137 Interest on subordinated debt 986 986 986 985 985 Total interest expense 8,497 4,457 3,623 3,555 3,767 Net interest income 48,257 46,826 43,522 42,744 45,496 Provision for loan losses 142 907 2,952 2,472 1,103 Net interest income after provision for loan 48,115 45,919 40,570 40,272 44,393 Non-interest income: Wealth management revenues 4,843 5,473 5,975 6,261 4,204 Insurance commissions 4,158 5,641 7,104 4,150 3,932 Service charges 2,445 2,236 2,056 2,067 1,838 Securities gains, net 79 2 - 36 11 Mortgage banking revenues 355 289 444 890 1,477 ATM/debit card revenue 3,101 3,214 2,898 3,074 3,060 Other 1,810 1,704 2,611 1,646 1,837 Total non-interest income 16,791 18,559 21,088 18,124 16,359 Non-interest expense: Salaries and employee benefits 24,877 25,768 24,302 20,424 21,092 Net occupancy and equipment expense 5,903 6,073 6,155 5,712 5,382 Net other real estate owned (income) expense 58 218 (33) 315 1,507 FDIC insurance 479 436 426 406 268 Amortization of intangible assets 1,598 1,633 1,522 1,462 1,414 Stationary and supplies 361 325 311 311 299 Legal and professional expense 1,770 1,885 1,734 1,811 1,878 Marketing and donations 739 706 873 1,915 679 Other 5,764 4,471 5,098 4,038 3,802 Total non-interest expense 41,549 41,515 40,388 36,394 36,321 Income before income taxes 23,357 22,963 21,270 22,002 24,431 Income taxes 5,418 5,205 4,654 5,168 6,105 Net income $ 17,939 $ 17,758 $ 16,616 $ 16,834 $ 18,326 Per Share Information Basic earnings per common share $ 0.88 $ 0.87 $ 0.86 $ 0.93 $ 1.01 Diluted earnings per common share 0.88 0.86 0.86 0.93 1.01 Weighted average shares outstanding 20,454,669 20,448,799 19,295,860 18,086,949 18,083,126 Diluted weighted average shares outstanding 20,535,215 20,529,523 19,358,457 18,135,380 18,136,146 FIRST MID BANCSHARES, INC. Consolidated Financial Highlights and Ratios (Dollars in thousands, except per share data) (Unaudited) As of and for the Quarter Ended September 30, June 30, March 31, December 31, September 30, 2022 2022 2022 2021 2021 Loan Portfolio Construction and land development $ 142,801 $ 141,072 $ 131,504 $ 145,118 $ 180,061 Farm real estate loans 360,424 350,159 280,993 279,272 278,788 1-4 Family residential properties 436,625 424,230 417,232 400,313 412,565 Multifamily residential properties 298,321 330,600 369,926 298,942 306,911 Commercial real estate 1,996,338 1,976,654 1,965,321 1,666,198 1,583,255 Loans secured by real estate 3,234,509 3,222,715 3,164,976 2,789,843 2,761,580 Agricultural operating loans 160,511 142,406 121,708 151,484 126,534 Commercial and industrial loans 1,064,033 1,036,987 935,454 832,008 835,860 Consumer loans 100,783 94,828 89,685 78,442 80,064 All other loans 160,454 151,727 142,738 143,746 143,731 Total loans 4,720,290 4,648,663 4,454,561 3,995,523 3,947,769 Deposit Portfolio Non-interest bearing demand deposits $ 1,334,686 $ 1,369,756 $ 1,373,881 $ 1,246,673 $ 1,242,950 Interest bearing demand deposits 1,364,306 1,453,932 1,482,556 1,452,765 1,416,361 Savings deposits 657,592 683,944 685,228 626,523 612,404 Money Market 1,443,060 1,158,724 1,280,129 1,068,473 1,075,852 Time deposits 683,554 652,622 665,511 562,052 640,995 Total deposits 5,483,198 5,318,978 5,487,305 4,956,486 4,988,562 Asset Quality Non-performing loans $ 20,812 $ 19,981 $ 22,465 $ 22,036 $ 27,723 Non-performing assets 25,143 24,190 27,269 27,055 33,359 Net charge-offs (recoveries) 440 307 (5 ) 1,800 1,717 Allowance for credit losses to non-performing loans 282.42 % 295.66 % 260.29 % 248.03 % 194.72 % Allowance for credit losses to total loans outstanding 1.25 % 1.27 % 1.31 % 1.37 %1 1.39 %1 Nonperforming loans to total loans 0.44 % 0.43 % 0.50 % 0.55 % 0.70 % Nonperforming assets to total assets 0.38 % 0.36 % 0.41 % 0.45 % 0.55 % Special Mention loans 25,298 35,849 64,160 66,235 76,222 Substandard and Doubtful loans 37,378 38,155 38,801 46,862 51,119 Common Share Data Common shares outstanding 20,454,636 20,448,799 20,437,183 18,080,303 18,083,126 Book value per common share $ 29.37 $ 30.63 $ 32.61 $ 35.06 $ 34.69 Tangible book value per common share (2) 21.01 22.17 24.07 27.24 26.80 Market price of stock 31.97 35.67 38.49 42.79 41.06 Key Performance Ratios and Metrics End of period earning assets $ 5,975,619 $ 6,024,815 $ 6,038,542 $ 5,504,517 $ 5,542,199 Average earning assets 6,063,061 5,975,821 5,817,752 5,539,819 5,396,239 Average rate on average earning assets (tax equivalent) 3.77 % 3.50 % 3.33 % 3.37 % 3.67 % Average rate on cost of funds 0.56 % 0.30 % 0.26 % 0.26 % 0.29 % Net interest margin (tax equivalent) (2) 3.21 % 3.20 % 3.07 % 3.11 % 3.38 % Return on average assets 1.07 % 1.08 % 1.05 % 1.12 % 1.25 % Return on average common equity 11.18 % 11.02 % 9.95 % 10.74 % 11.67 % Efficiency ratio (tax equivalent) (2) 59.64 % 58.45 % 58.59 % 55.75 % 52.73 % Full-time equivalent employees 1,051 1,025 1,050 965 960 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 September 30, 2022 QTD Average Average Balance Interest Rate INTEREST EARNING ASSETS Interest bearing deposits $ 22,130 $ 128 2.29 % Federal funds sold 7,152 38 2.11 % Certificates of deposits investments 1,417 8 2.24 % Investment Securities: Taxable (total less municipals) 1,047,335 5,106 1.95 % Tax-exempt (Municipals) 318,870 2,780 3.49 % Loans (net of unearned income) 4,666,157 49,498 4.21 % Total interest earning assets 6,063,061 57,558 3.77 % NONEARNING ASSETS Cash and due from banks 122,616 Premises and equipment 90,715 Other nonearning assets 458,854 Allowance for loan losses (59,319 ) Total assets $ 6,675,927 INTEREST BEARING LIABILITIES Demand deposits $ 2,545,619 $ 3,570 0.56 % Savings deposits 674,524 149 0.09 % Time deposits 672,187 1,197 0.71 % Total interest bearing deposits 3,892,330 4,916 0.50 % Repurchase agreements 207,079 428 0.82 % FHLB advances 355,554 1,926 2.15 % Federal funds purchased 272 1 1.46 % Subordinated debt 94,491 986 4.14 % Jr. subordinated debentures 19,294 241 4.96 % Other debt - - 0.00 % Total borrowings 676,690 3,582 2.10 % Total interest bearing liabilities 4,569,020 8,498 0.74 % NONINTEREST BEARING LIABILITIES Demand deposits 1,418,028 Average cost of funds 0.56 % Other liabilities 47,131 Stockholders' equity 641,748 Total liabilities & stockholders' equity $ 6,675,927 Net Interest Earnings / Spread $ 49,060 3.03 % Impact of Non-Interest Bearing Funds 0.18 % Tax effected yield on interest earning assets 3.21 % FIRST MID BANCSHARES, INC. Reconciliation of Non-GAAP Financial Measures (In thousands, unaudited) As of and for the Quarter Ended September 30, June 30, March 31, December 31, September 30, 2022 2022 2022 2021 2021 Net interest income as reported $ 48,257 $ 46,826 $ 43,522 $ 42,744 $ 45,496 Net interest income, (tax equivalent) 49,060 47,625 44,292 43,492 46,165 Average earning assets 6,063,061 5,975,821 5,817,752 5,539,819 5,396,239 Net interest margin (tax equivalent) 3.21 % 3.20 % 3.07 % 3.11 % 3.38 % Common stockholder's equity $ 600,715 $ 626,268 $ 666,385 $ 633,894 $ 627,225 Goodwill and intangibles, net 170,897 172,871 174,499 141,376 142,656 Common shares outstanding 20,455 20,449 20,437 18,080 18,083 Tangible Book Value per common share $ 21.01 $ 22.17 $ 24.07 $ 27.24 $ 26.80 FIRST MID BANCSHARES, INC. Reconciliation of Non-GAAP Financial Measures (In thousands, except per share data, unaudited) As of and for the Quarter Ended September 30, June 30, March 31, December 31, September 30, 2022 2022 2022 2021 2021 Adjusted earnings Reconciliation Net Income - GAAP $ 17,939 $ 17,758 $ 16,616 $ 16,834 $ 18,326 Adjustments (post-tax): (1) Acquisition ACL on non-PCD assets in provision expense - - 1,580 - - Branch optimization costs - - - - 999 Integration and acquisition expenses 524 777 469 225 348 Total non-recurring adjustments (non-GAAP) $ 524 $ 777 $ 2,049 $ 225 $ 1,347 Adjusted earnings - non-GAAP $ 18,463 $ 18,535 $ 18,665 $ 17,059 $ 19,673 Adjusted diluted earnings per share (non-GAAP) $ 0.90 $ 0.90 $ 0.96 $ 0.94 $ 1.08 Efficiency Ratio Reconciliation Noninterest expense - GAAP $ 41,549 $ 41,515 $ 40,388 $ 36,394 $ 36,321 Other real estate owned property income (expense) (58 ) (218 ) 33 (315 ) (242 ) Amortization of intangibles (1,598 ) (1,633 ) (1,522 ) (1,462 ) (1,414 ) Branch optimization costs - - - - (1,265 ) integration and acquisition expenses (663 ) (983 ) (594 ) (285 ) (440 ) Adjusted noninterest expense (non-GAAP) $ 39,230 $ 38,681 $ 38,305 $ 34,332 $ 32,960 Net interest income -GAAP $ 48,257 $ 46,826 $ 43,522 $ 42,744 $ 45,496 Effect of tax-exempt income (1) 803 799 770 748 669 Adjusted net interest income (non-GAAP) $ 49,060 $ 47,625 $ 44,292 $ 43,492 $ 46,165 Noninterest income - GAAP $ 16,791 $ 18,559 $ 21,088 $ 18,124 $ 16,359 Gain on sales of investment securities, net (79 ) (2 ) - (36 ) (11 ) Adjusted noninterest income (non-GAAP) $ 16,712 $ 18,557 $ 21,088 $ 18,088 $ 16,348 Adjusted total revenue (non-GAAP) $ 65,772 $ 66,182 $ 65,380 $ 61,580 $ 62,513 Efficiency ratio (non-GAAP) 59.64 % 58.45 % 58.59 % 55.75 % 52.73 % '(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.