MATTOON, Ill., Oct. 29, 2020 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter and year-to-date period ended September 30, 2020.

Highlights

  • Net income of $11.6 million, or $0.69 diluted EPS
  • Loan growth of 1% with strong asset quality metrics
  • Announced the pending acquisition of LINCO Bancshares, Inc.
  • Completed a public offering of $96.0 million of fixed-to-floating rate subordinated notes in early October
  • Board approves next semi-annual dividend at $0.41, an increase of 2.5%
  • Awarded Central/Southern Illinois SBA Lender of the Year for 7th consecutive year
  • Named America’s Best Bank in Illinois by Newsweek

“The third quarter was an eventful one for First Mid as we delivered strong financial results and announced the pending acquisition of LINCO Bancshares, Inc. (“LINCO”) and its subsidiary Providence Bank,” said Joe Dively, Chairman and Chief Executive Officer. “In addition, in early October, we completed a $96.0 million subordinated notes offering with pricing at 3.95% fixed-to-floating due 2030. We were extremely pleased with the demand and execution of the offering.”

“We were excited to receive the recognition from both the SBA and Newsweek. Our team has done an excellent job in adding value to our customers whether it has been navigating through the multiple stimulus options or expanding the relationships through the many services we have to offer. Despite operating in a more challenging environment, our net interest income was higher by 4.5% and noninterest income increased by 5.1% compared to the same quarter last year. Our asset quality metrics have continued to improve with another decline in non-performing loans and the lowest quarterly net charge-offs in two and a half years. Outstanding loan deferrals have continued to trend lower and are now at 2.2% of outstanding loans.   Our strong capital levels increased in the quarter and we are well positioned to continue to execute on our strategic plan,” Dively added.

“Finally, the acquisition of LINCO will deepen our presence in the St. Louis metro market and expand our geographic diversity into mid-Missouri and Texas. The culture and vision of the two companies align very closely with both organizations having a long history of delivering excellent service to customers and communities. I have been to all of the Providence Bank markets participating in small group meetings with employees and there is excitement about the larger and more diverse set of products to offer the Providence Bank customers,” Dively concluded.

Net Interest Income

Net interest income for the third quarter of 2020 increased by $0.9 million, or 3.0% compared to the second quarter of 2020. Interest income increased by $0.8 million and interest expense decreased $0.2 million. The increase in interest income was driven by loan growth and the first full quarter of financial benefits from Paycheck Protection Program (“PPP”) loans. Total accretion income was $0.4 million, which was a decline of $0.1 million from the previous quarter. Interest expense declined primarily due to lower balances and rates on Federal Home Loan Bank advances and CD’s.

In comparison to the third quarter of 2019, net interest income increased $1.4 million, or 4.5%. The increase was primarily the result of higher interest income and lower interest expense outpacing the decline in investment income. Interest expense decreased by $2.7 million compared to the third quarter of last year.

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.17% for the third quarter of 2020 compared to 3.25% in the prior quarter primarily due to the full quarter impact of PPP loans on the balance sheet and the increase in excess liquidity.   Earning asset yields declined by 12 basis points on a combination of lower loan and investment yields. Average cost of funds declined by 4 basis points to 0.39%.

In comparison to the third quarter of 2019, net interest margin decreased 43 basis points. Earning asset yields were down 79 basis points on a combination of lower rates, the impact of PPP loans and a decline in accretion income of $2.2 million. Average cost of funds declined by 40 basis points on lower rates in all categories.

Loan Portfolio

Total loans ended the quarter at $3.24 billion, representing an increase of $31.0 million compared to the prior quarter. The third quarter ending balance included approximately $261.7 million in PPP loans. On a year-over-year basis, loans increased $612.7 million, or 23.4%. Excluding PPP and $183.0 million in loans acquired from Stifel Bank in the second quarter of 2020, balances increased $168.0 million, or 6.4%.

The Company has a diversified loan portfolio that lessens the risks from economic challenges in any particular sector. At quarter end, the more vulnerable sectors due to COVID-19, excluding PPP loans, were: 1) Hotels, which represented 4.1% of outstanding loans, 2) Retail Shopping/Strip centers at 4.0% of outstanding loans, and 3) Restaurants, which represented 2.9% of outstanding loans. Most of the largest borrowers in the hotel and restaurant sector own and operate multiple businesses across various industries providing a diverse cash flow stream to support their loans and have provided personal guarantees. First Mid’s retail loans included borrowers who sell home goods and other products that have performed well throughout the pandemic.

The Company began offering a 90-day principal and interest deferral program primarily for the hotel and restaurant sector in late March. Subsequently, the Company offered a principal only deferral program to select borrowers upon request primarily in the commercial real estate market. For those deferrals that included principal and interest, nearly half continued to pay interest during the deferral period. For any second deferrals, the agreement included only a deferral of principal. The Company also offered a residential mortgage and consumer principal and interest deferral program. As of October 19th, 2020, the Company had total outstanding deferrals of $72.1 million, or 2.2% of total outstanding loans.

Asset Quality

The Company’s asset quality measures continue to reflect a strong credit culture.   The allowance for credit losses, excluding $261.7 million of PPP loans, was 1.41% of total loans. The ratio of non-performing loans to total loans was 0.69%, and the allowance for credit losses to non-performing loans was 186.8%.   Non-performing loans declined $0.7 million to $22.4 million at quarter end.   Non-performing assets to total assets declined to 0.55%. Net charge-offs were $0.3 million during the third quarter compared to $0.6 million in the prior quarter.

Provision expense was recorded in the amount of $3.9 million in the third quarter reflecting $3.6 million of a reserve build above the $0.3 million in net charge-offs. This reserve build was recorded under Accounting Standards Update 2016-13 known as the current expected credit loss model. The Company’s required allowance for credit loss was calculated using a combination of, among other things, historical loss experience and the uncertainty of future macro-economic conditions and forecasts.

Deposits

Total deposits ended the quarter at $3.62 billion, which represented an increase of $234.0 million from the prior quarter. The increase includes approximately $60.0 million of customer deposits that converted in July to First Mid for the loan relationships acquired from Stifel Bank in the second quarter. In addition, the increase in deposits includes the movement of funds from repurchase agreements, which declined $179.9 million. The Company’s average rate on cost of funds was 0.39% for the quarter compared to 0.43% in the prior quarter and 0.79% in the third quarter of 2019.

Noninterest Income

Noninterest income for the third quarter of 2020 was $13.6 million compared to $13.9 million in the second quarter.   The decrease compared to prior quarter is tied to the seasonality of the business lines, as the third quarter has historically been the lowest in insurance revenues and there are typically less farm real estate sales in wealth management.

In comparison to the third quarter of 2019, noninterest income increased $0.7 million, or 5.1%. The year-over-year increase was primarily driven by wealth management and mortgage banking income, partially offset by lower service charge revenue.

Noninterest Expenses

Noninterest expense for the third quarter totaled $26.9 million compared to $26.1 million in the second quarter. The increase was primarily due to higher FDIC insurance expense on a change in rates and higher average assets, as well as deferred costs related to PPP that occurred in the second quarter.   The third quarter included $0.1 million of acquisition related costs.

In comparison to the third quarter of 2019, noninterest expenses increased $1.0 million. The increase was primarily from higher salaries and benefits costs and an increase in FDIC insurance from higher average assets and 2019 credits.

The Company’s efficiency ratio, on a tax equivalent basis, for the third quarter 2020 was 54.9% compared to 54.3% in the prior quarter and 54.7% 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 15.73%
Tier 1 capital to risk-weighted assets 14.52%
Common equity tier 1 capital to risk-weighted assets 13.91%
Leverage ratio 10.33%

The Company’s Board of Directors approved its next semi-annual dividend in the amount of $0.41, representing a 2.5% increase. The dividend is payable on December 15, 2020 for shareholders of record on December 1, 2020.

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 $4.5 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 and eastern Missouri 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 155 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 “Net Interest Margin, tax equivalent,” “Tangible Book Value per Common Share,” and “Common Equity Tier 1 Capital to Risk Weighted Assets”. 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 Bancshares, Inc. (“First Mid”) and LINCO Bancshares, Inc., a Missouri corporation (“LINCO”), such as discussions of First Mid’s and LINCO’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid and LINCO intend 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 1955. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid and LINCO, 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 LINCO will not be realized or will not be realized within the expected time period; the risk that integration of the operations of LINCO 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 obtain the required stockholder approval; the failure to satisfy other conditions to completion of the proposed transactions, including receipt of required regulatory and other approvals; the failure of the proposed transactions to close for any other reason; the effect of the announcement of the transaction on customer relationships and operating results; the possibility that the transaction 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 LINCO; legislative/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 LINCO’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 LINCO; accounting principles, policies and guidelines; the severity, magnitude and duration of COVID-19 pandemic, the direct and indirect impact of such pandemic, including responses to the pandemic by the government, commercial customers' businesses, the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect First Mid’s and LINCO’s liquidity and capital positions, impair the ability of First Mid’s and LINCO’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 LINCO’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.com

Matt 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,
 2020 2019 2019
      
Assets     
Cash and cash equivalents$232,385  $85,080  $108,229 
Investment securities 750,122   760,215   811,573 
Loans (including loans held for sale) 3,236,247   2,695,347   2,623,558 
Less allowance for credit losses (41,915)  (26,911)  (26,741)
Net loans 3,194,332   2,668,436   2,596,817 
Premises and equipment, net 59,356   59,491   59,724 
Goodwill and intangibles, net 129,287   133,257   134,461 
Bank owned life insurance 68,519   67,225   66,786 
Other assets 75,127   65,722   60,139 
Total assets$4,509,128  $3,839,426  $3,837,729 
      
Liabilities and Stockholders' Equity     
Deposits:     
Non-interest bearing$837,602  $633,331  $596,518 
Interest bearing 2,782,234   2,284,035   2,392,407 
Total deposits 3,619,836   2,917,366   2,988,925 
Repurchase agreement with customers 170,345   208,109   174,530 
Other borrowings 93,954   118,895   80,862 
Junior subordinated debentures 18,985   18,858   29,126 
Other liabilities 44,999   49,589   42,327 
Total liabilities 3,948,119   3,312,817   3,315,770 
      
Total stockholders' equity 561,009   526,609   521,959 
Total liabilities and stockholders' equity$4,509,128  $3,839,426  $3,837,729 
      


        
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,
 2020
 2019 2020
 2019
Interest income:       
Interest and fees on loans$32,151  $31,976  $93,560  $95,619 
Interest on investment securities 4,074   5,297   12,740   15,942 
Interest on federal funds sold & other deposits 70   305   271   1,639 
Total interest income 36,295   37,578   106,571   113,200 
Interest expense:       
Interest on deposits 3,168   5,174   10,134   14,492 
Interest on securities sold under agreements to repurchase 68   196   420   671 
Interest on other borrowings 395   691   1,506   2,111 
Interest on subordinated debt 147   392   539   1,236 
Total interest expense 3,778   6,453   12,599   18,510 
Net interest income 32,517   31,125   93,972   94,690 
Provision for loan losses 3,883   2,658   15,500   3,696 
Net interest income after provision for loan 28,634   28,467   78,472   90,994 
Non-interest income:       
Wealth management revenues 3,468   3,311   10,921   10,543 
Insurance commissions 3,291   3,242   14,000   12,557 
Service charges 1,446   2,091   4,335   5,852 
Securities gains, net 95   51   913   323 
Mortgage banking revenues 1,661   582   3,205   1,167 
ATM/debit card revenue 2,367   2,173   6,593   6,391 
Other 1,250   1,467   4,006   4,311 
Total non-interest income 13,578   12,917   43,973   41,144 
Non-interest expense:       
Salaries and employee benefits 15,346   14,497   47,301   46,636 
Net occupancy and equipment expense 4,363   4,377   12,746   13,375 
Net other real estate owned (income) expense 110   172   62   413 
FDIC insurance 469   (87)  851   389 
Amortization of intangible assets 1,277   1,373   3,862   4,552 
Stationary and supplies 262   284   805   835 
Legal and professional expense 1,320   1,215   4,207   3,713 
Marketing and donations 387   1,038   1,182   2,670 
Other 3,393   3,025   9,740   11,808 
Total non-interest expense 26,927   25,894   80,756   84,391 
Income before income taxes 15,285   15,490   41,689   47,747 
Income taxes 3,720   3,820   9,988   11,780 
Net income$11,565  $11,670  $31,701  $35,967 
        
Per Share Information       
Basic earnings per common share$0.69  $0.70  $1.90  $2.16 
Diluted earnings per common share 0.69   0.70   1.89   2.15 
        
Weighted average shares outstanding 16,728,191   16,684,395   16,710,485   16,677,932 
Diluted weighted average shares outstanding 16,775,099   16,719,175   16,757,393   16,712,712 
        


          
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,
 2020
 2020 2020 2019 2019
Interest income:         
Interest and fees on loans$32,151  $31,382  $30,027  $31,206  $31,976 
Interest on investment securities 4,074   4,077   4,589   5,101   5,297 
Interest on federal funds sold & other deposits 70   76   125   214   305 
Total interest income 36,295   35,535   34,741   36,521   37,578 
Interest expense:         
Interest on deposits 3,168   3,105   3,861   4,447   5,174 
Interest on securities sold under agreements to repurchase 68   158   194   240   196 
Interest on other borrowings 395   516   595   610   691 
Interest on subordinated debt 147   174   218   240   392 
Total interest expense 3,778   3,953   4,868   5,537   6,453 
Net interest income 32,517   31,582   29,873   30,984   31,125 
Provision for loan losses 3,883   6,136   5,481   2,737   2,658 
Net interest income after provision for loan 28,634   25,446   24,392   28,247   28,467 
Non-interest income:         
Wealth management revenues 3,468   3,827   3,626   5,027   3,311 
Insurance commissions 3,291   4,088   6,621   3,361   3,353 
Service charges 1,446   1,111   1,778   1,985   2,091 
Securities gains, net 95   287   531   479   51 
Mortgage banking revenues 1,661   1,236   308   579   582 
ATM/debit card revenue 2,367   2,239   1,987   2,100   2,173 
Other 1,250   1,097   1,659   1,342   1,356 
Total non-interest income 13,578   13,885   16,510   14,873   12,917 
Non-interest expense:         
Salaries and employee benefits 15,346   15,455   16,500   15,942   14,497 
Net occupancy and equipment expense 4,363   4,141   4,242   4,305   4,377 
Net other real estate owned (income) expense 110   (2)  (46)  30   172 
FDIC insurance 469   289   93   (170)  (87)
Amortization of intangible assets 1,277   1,290   1,295   1,296   1,373 
Stationary and supplies 262   275   268   269   284 
Legal and professional expense 1,320   1,489   1,398   1,451   1,215 
Marketing and donations 387   314   481   573   523 
Other 3,393   2,847   3,500   3,905   3,540 
Total non-interest expense 26,927   26,098   27,731   27,601   25,894 
Income before income taxes 15,285   13,233   13,171   15,519   15,490 
Income taxes 3,720   3,096   3,172   3,543   3,820 
Net income$11,565  $10,137  $9,999  $11,976  $ 11,670 
          


 
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,
  2020 2020 2020 2019 2019
           
Loan Portfolio           
Construction and land development $167,515  $180,934  $123,326  $94,142  $68,821 
Farm real estate loans  256,230   251,382   242,891   240,241   229,715 
1-4 Family residential properties  339,172   342,036   325,128   336,427   347,370 
Multifamily residential properties  139,255   141,015   139,734   153,948   154,859 
Commercial real estate  1,177,571   1,123,540   1,002,868   995,702   954,992 
Loans secured by real estate  2,079,743   2,038,907   1,833,947   1,820,460   1,755,757 
Agricultural operating loans  141,074   149,043   139,136   136,124   121,650 
Commercial and industrial loans  807,668   811,169   565,789   528,973   543,937 
Consumer loans  80,348   82,084   82,104   83,183   83,171 
All other loans  127,414   124,059   123,322   126,607   119,043 
Total loans  3,236,247   3,205,262   2,744,298   2,695,347   2,623,558 
           
Deposit Portfolio           
Non-interest bearing demand deposits $837,602  $817,623  $642,384  $633,331  $596,518 
Interest bearing demand deposits  1,053,691   938,710   827,387   850,956   899,763 
Savings deposits  485,241   474,545   441,998   428,778   431,497 
Money Market  736,262   625,361   441,381   419,801   435,517 
Time deposits  507,040   529,588   555,477   584,500   625,630 
Total deposits  3,619,836   3,385,827   2,908,627   2,917,366   2,988,925 
           
Asset Quality          
Non-performing loans $22,439  $23,096  $24,463  $27,818  $24,203 
Non-performing assets  24,712   25,397   27,306   31,538   28,645 
Net charge-offs  349   631   1,188   2,567   2,276 
Allowance for credit losses to non-performing loans 186.80%  166.18%  134.39%  96.74%  110.49%
Allowance for credit losses to total loans outstanding1.41%1 1.30%1  1.20%  1.00%  1.02%
Nonperforming loans to total loans  0.69%  0.72%  0.89%  1.03%  0.92%
Nonperforming assets to total assets  0.55%  0.57%  0.71%  0.82%  0.75%
           
Common Share Data          
Common shares outstanding  16,731,684   16,728,190   16,702,484   16,673,480   16,663,095 
Book value per common share $33.53  $32.84  $31.91  $31.58  $31.32 
Tangible book value per common share  25.80   25.02   24.00   23.59   23.25 
Market price of stock  24.95   26.23   23.74   35.25   34.62 
           
Key Performance Ratios and Metrics          
End of period earning assets $4,130,186  $4,093,511  $3,492,271  $3,464,144  $3,444,775 
Average earning assets  4,113,846   3,942,832   3,451,123   3,464,200   3,444,088 
Average rate on average earning assets (tax equivalent) 3.56%  3.68%  4.11%  4.24%  4.39%
Average rate on cost of funds  0.39%  0.43%  0.60%  0.67%  0.79%
Net interest margin (tax equivalent)  3.17%  3.25%  3.51%  3.57%  3.60%
Return on average assets  1.03%  0.94%  1.05%  1.25%  1.22%
Return on average common equity  8.31%  7.47%  7.48%  9.17%  9.04%
Efficiency ratio (tax equivalent) 2  54.85%  54.27%  57.14%  57.23%  54.69%
Full-time equivalent employees  816   828   835   827   830 
           
           
1 Excludes Payment Protection Program loans.
2 Represents non-interest expense divided by the sum of fully tax equivalent net interest income and non-interest income. Non-interest expense adjustments exclude foreclosed property expense and amortization of intangibles. Net-interest income includes tax equivalent adjustments and non-interest income excludes gains and losses on the sale of investment securities.
           


 
FIRST MID BANCSHARES, INC.
Net Interest Margin
(In thousands, unaudited)
 For the Quarter Ended September 2020
 QTD Average   Average
 Balance Interest Rate
INTEREST EARNING ASSETS     
Interest bearing deposits 147,930  $51  0.14%
Federal funds sold 1,291   1  0.31%
Certificates of deposits investments 3,188   18  2.25%
Investment Securities:     
Taxable (total less municipals) 542,821   2,639  1.94%
Tax-exempt (Municipals) 208,937   1,818  3.48%
Loans (net of unearned income) 3,209,679   32,335  4.01%
      
Total interest earning assets 4,113,846   36,862  3.56%
      
NONEARNING ASSETS     
Cash and due from banks 89,108     
Premises and equipment 58,905     
Other nonearning assets 256,464     
Allowance for credit losses (40,051)    
      
Total assets$4,478,272     
      
INTEREST BEARING LIABILITIES     
Demand deposits$1,753,148  $1,043  0.24%
Savings deposits 481,128   102  0.08%
Time deposits 525,266   2,023  1.53%
Total interest bearing deposits 2,759,542   3,168  0.46%
Repurchase agreements 183,720   68  0.15%
FHLB advances 98,510   395  1.60%
Federal funds purchased 0   0  0.00%
Subordinated debt 18,957   147  3.08%
Other borrowings 0   0  0.00%
Total borrowings 301,187   610  0.81%
Total interest bearing liabilities 3,060,729   3,778  0.49%
      
NONINTEREST BEARING LIABILITIES     
Demand deposits 813,404  Average cost of funds 0.39%
Other liabilities 47,350     
Stockholders' equity 556,789     
      
Total liabilities & stockholders' equity$4,478,272     
      
Net Interest Earnings / Spread  $33,084  3.07%
      
Impact of Non-Interest Bearing Funds    0.10%
      
Tax effected yield on interest earning assets      3.17%
      


 
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,
 2020 2020 2020 2019 2019
          
Net interest income as reported$32,517  $31,582  $29,873  $30,984  $31,125 
Net interest income, (tax equivalent) 33,084   32,118   30,393   31,517   31,659 
Average earning assets 4,113,846   3,942,832   3,451,123   3,464,200   3,444,088 
Net interest margin (tax equivalent) 1 3.17%  3.25%  3.51%  3.57%  3.60%
          
          
Common stockholder's equity$561,009  $549,273  $533,051  $526,609  $521,959 
Goodwill and intangibles, net 129,287   130,656   132,199   133,257   134,461 
Common shares outstanding 16,732   16,728   16,702   16,673   16,663 
Tangible Book Value per common share$25.80  $25.02  $24.00  $23.59  $23.25 
          
          
Common equity tier 1 capital$431,342  $417,326  $410,565  $398,536  $391,429 
Risk weighted assets 3,101,591   3,101,449   2,854,102   2,822,648   2,923,245 
Common equity tier 1 capital to risk weighted assets 2 13.91%  13.46%  14.39%  14.12%  13.39%
          
          
1 Annualized and calculated on a tax equivalent basis where interest earned on tax-exempt securities and loans is adjusted to an amount comparable to interest subject to normal income taxes assuming a federal tax rate of 21% and includes the impact of non-interest bearing funds.
          
2 Defined as total common equity adjusted for gains/(losses) less goodwill and intangibles divided by risk weighted assets as of period end.