First Mid Bancshares, Inc. Announces Fourth Quarter and Full Year 2020 Results

Mattoon, Illinois, UNITED STATES


MATTOON, Ill., Jan. 28, 2021 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter and full year period ended December 31, 2020.

Highlights

  • Record quarterly net income of $13.6 million, or $0.81 diluted EPS
  • Received regulatory approval on pending acquisition of LINCO Bancshares, Inc. (“LINCO”)
  • Assisted customers on the forgiveness of $93.4 million in Paycheck Protection Program (“PPP”) loans
  • Announced branch optimization plan with completion now anticipated by mid-year 2021
  • Wealth Management assets under management increased 7% for the year to $4.5 billion
  • Announcing change to quarterly dividend from semi-annual dividend beginning in 2021

“2020 was an incredible year with a combination of significant challenges and tremendous opportunities,” said Joe Dively, Chairman and Chief Executive Officer. “The First Mid team stepped up for our customers and shareholders, and I am proud of all that we accomplished. We ended the year with a record quarter of financial results, including working with our customers in the PPP forgiveness process, while completing a very successful subordinated debt offering and receiving regulatory approval for the pending acquisition of LINCO Bancshares, Inc.”

“We are excited about the new year with the second round of PPP underway, the branch optimization plan to be completed by mid-year, and the expected close of the LINCO acquisition in February. The deepened presence in the St. Louis metro market and geographic diversity into mid-Missouri and Texas increases our growth prospects, strengthens our balance sheet, and is estimated to provide over 20% earnings accretion. The customers and employees are excited about the expanded product set and are ready to move forward with a combined company that we believe will be better and stronger,” Dively concluded.

Net Interest Income

Net interest income for the fourth quarter of 2020 increased by $0.9 million, or 2.8% compared to the third quarter of 2020. Interest income increased by $1.3 million and interest expense increased $0.4 million from the previous quarter. The increase in interest income was partially driven by fee income from the PPP loans. The PPP fee income was $3.2 million in the fourth quarter compared to $1.0 million in the third quarter of 2020.   At year end, the Company had $3.5 million of unrealized fee income on the first round of PPP loans remaining.   Total accretion income was $0.3 million, which was a decline of $0.1 million from the previous quarter. Interest expense was impacted by an additional $0.9 million of interest on the $96 million of subordinated debt that was raised in connection with the pending LINCO acquisition and for general corporate purposes. Excluding this, interest expense declined by $0.5 million in the quarter.

In comparison to the fourth quarter of 2019, net interest income increased $2.5 million, or 7.9%. The increase was primarily the result of higher interest income on loans and lower interest expense outpacing the decline in investment income. Interest expense decreased by $1.4 million compared to the fourth quarter of last year, despite the additional $0.9 million of interest expense on the new subordinated debt.           

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.17% for the fourth quarter of 2020, which was flat compared to the prior quarter. Both earning asset yields and cost of funds increased by two basis points.   Earning asset yields were impacted by PPP fee income and cost of funds were impacted by the new subordinated debt interest expense. Excluding the subordinated debt interest, the net interest margin would have been 8 basis points higher.

In comparison to the fourth quarter of 2019, the net interest margin decreased 40 basis points with accretion income representing $1.5 million, or 17 basis points of the decline. Earning asset yields were down 66 basis points and average cost of funds declined by 26 basis points compared to the same period.  

Loan Portfolio

Total loans ended the quarter at $3.14 billion, representing a decrease of $97.8 million compared to the prior quarter. The decline included $93.4 million of forgiven PPP loans. At year end, the Company had $168.3 million of PPP loans remaining on the balance sheet. For the year, and excluding PPP and acquired loans, loan balances increased $91.8 million, or 3.4%.  

The Company continues to see its loan deferrals trending lower. As of January 19, 2021, outstanding deferrals totaled $49.4 million, or 1.6% of the loan portfolio. Hotels represent the largest deferral category at 84% of the total outstanding deferrals. Most remaining deferrals are paying interest with only principal deferred.

Asset Quality

The Company’s asset quality measures continue to reflect a strong credit culture.   As of December 31, 2020, the allowance for credit losses, excluding $168.3 million of PPP loans, was 1.41% of total loans, the ratio of non-performing loans to total loans was 0.90%, and the allowance for credit losses to non-performing loans was 149.0%.   Non-performing loans increased $5.7 million to $28.1 million at quarter end.   Non-performing assets to total assets was 0.65% at quarter end. Net charge-offs were $0.6 million during the fourth quarter compared to $0.3 million in the prior quarter. During the quarter, the Company completed a review of all its internally identified COVID watch list loans, including those remaining on or coming off deferrals. The review, along with other changes to classifications unrelated to COVID, resulted in an increase to special mention loans by $31.9 million to $137.8 million and an increase to substandard loans by $4.4 million to $59.5 million. The increases were primarily in the hotel and restaurant sectors. The Company does not currently expect material losses from those specific downgrades that occurred in the quarter. The Company’s total past dues improved to 0.44% at year-end 2020 versus 0.55% at the end of the third quarter.

Provision expense was recorded in the amount of $0.6 million in the fourth quarter, in line with net charge-offs. The reserve was flat compared to the prior quarter on a slightly lower loan balance, excluding PPP. The economic outlook has significantly improved for the Agriculture sector, while the COVID driven restrictions continue to provide macro-economic uncertainty in certain sectors.

Deposits

Total deposits ended the quarter at $3.69 billion, which represented an increase of $72.9 million from the prior quarter.   Noninterest bearing deposits increased $99.3 million, while interest bearing deposits declined by $26.4 million. The Company’s average rate on cost of funds was 0.41% for the quarter compared to 0.39% in the prior quarter and 0.67% in the fourth quarter of 2019. Excluding the interest on the subordinated debt raised during the quarter in connection with the pending LINCO acquisition, the average cost of funds would have been 0.33%.            

Noninterest Income

Noninterest income for the fourth quarter of 2020 was $15.5 million compared to $13.6 million in the third quarter.   The increase compared to the prior quarter was due to the strong performance in the farm management and real estate areas of the wealth management division and higher insurance and mortgage banking revenues. The strength of First Mid’s noninterest income continues to be a strategic differentiator providing significant diversification for the Company.     

In comparison to the fourth quarter of 2019, noninterest income increased $0.7 million, or 4.5%. The year-over-year increase was driven by wealth management, insurance, debit card fees and mortgage banking income, partially offset by lower service charges, less securities gains and a decline in the other non-interest income category.        

Noninterest Expenses     

Noninterest expense for the fourth quarter totaled $30.3 million compared to $26.9 million in the third quarter. The current quarter included $0.4 million, or approximately $0.02 EPS, of acquisition related costs. Consistent with the prior year, incentive compensation increased with the seasonal growth for the farm real estate sales within the wealth management business as well as the strong overall financial performance for the quarter.

In comparison to the fourth quarter of 2019, noninterest expenses increased $2.7 million. The increase was primarily due to acquisition costs and higher incentive costs from increased revenues and net income.

The Company’s efficiency ratio, on a tax equivalent basis and inclusive of acquisition costs, for the fourth quarter 2020 was 59.0% compared to 54.9% in the prior quarter and 57.2% 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 assets18.82%
Tier 1 capital to risk-weighted assets14.63%
Common equity tier 1 capital to risk-weighted assets 14.03%
Leverage ratio10.22%
  

The Company’s Board of Directors has determined it is in the best interest of shareholders to change from its historical semi-annual dividend to a quarterly dividend beginning in 2021. Therefore, the Board of Directors approved a quarterly dividend in the amount of $0.205 payable on March 1, 2021 for shareholders of record on February 19, 2021. The dividend amount is exactly half of the most recent semi-annual dividend that was paid in December.

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 $4.7 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 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; 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
  
  December 31, September 30, December 31,
   2020   2020   2019 
       
Assets      
Cash and cash equivalents $417,281  $232,385  $85,080 
Investment securities  887,169   750,122   760,215 
Loans (including loans held for sale) 3,138,419   3,236,247   2,695,347 
Less allowance for loan losses  (41,910)  (41,915)  (26,911)
Net loans  3,096,509   3,194,332   2,668,436 
Premises and equipment, net  58,206   59,356   59,491 
Goodwill and intangibles, net  128,120   129,287   133,257 
Bank owned life insurance  68,955   68,519   67,225 
Other assets  70,108   75,127   65,722 
Total assets $4,726,348  $4,509,128  $3,839,426 
       
Liabilities and Stockholders' Equity     
Deposits:      
Non-interest bearing $936,926  $837,602  $633,331 
Interest bearing  2,755,858   2,782,234   2,284,035 
Total deposits  3,692,784   3,619,836   2,917,366 
Repurchase agreement with customers 206,937   170,345   208,109 
Other borrowings  93,969   93,954   118,895 
Junior subordinated debentures 19,027   18,985   18,858 
Subordinated debt  94,253   -   - 
Other liabilities  51,150   44,999   49,589 
Total liabilities  4,158,120   3,948,119   3,312,817 
       
Total stockholders' equity  568,228   561,009   526,609 
Total liabilities and stockholders' equity$4,726,348  $4,509,128  $3,839,426 
       


         
FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
         
 Three Months Ended  Twelve Months Ended
 December 31,  December 31,
  2020   2019    2020  2019
Interest income:        
Interest and fees on loans$33,254  $31,206   $126,814 $126,825
Interest on investment securities 4,226   5,101    16,966  21,043
Interest on federal funds sold & other deposits 90   214    361  1,853
Total interest income 37,570   36,521    144,141  149,721
Interest expense:        
Interest on deposits 2,617   4,447    12,751  18,939
Interest on securities sold under agreements to repurchase 68   240    488  911
Interest on other borrowings 371   610    1,877  2,721
Interest on jr. subordinated debentures 143   240    682  1,476
Interest on subordinated debt 931   0    931  0
Total interest expense 4,130   5,537    16,729  24,047
Net interest income 33,440   30,984    127,412  125,674
Provision for loan losses 603   2,737    16,103  6,433
Net interest income after provision for loan 32,837   28,247    111,309  119,241
Non-interest income:        
Wealth management revenues 5,232   5,027    16,153  15,570
Insurance commissions 3,477   3,361    17,477  16,029
Service charges 1,527   1,985    5,862  7,837
Securities gains, net 193   479    1,106  802
Mortgage banking revenues 1,870   579    5,075  1,746
ATM/debit card revenue 2,369   2,100    8,962  8,491
Other 879   1,342    4,885  5,542
Total non-interest income 15,547   14,873    59,520  56,017
Non-interest expense:        
Salaries and employee benefits 19,151   15,942    66,452  62,578
Net occupancy and equipment expense 3,962   4,305    16,708  17,680
Net other real estate owned (income) expense (20)  30    42  443
FDIC insurance 458   (170)   1,309  219
Amortization of intangible assets 1,200   1,296    5,062  5,848
Stationary and supplies 275   269    1,080  1,104
Legal and professional expense 1,220   1,451    5,427  5,164
Marketing and donations 434   573    1,616  2,031
Other 3,651   3,905    13,391  16,925
Total non-interest expense 30,331   27,601    111,087  111,992
Income before income taxes 18,053   15,519    59,742  63,266
Income taxes 4,484   3,543    14,472  15,323
Net income$13,569  $11,976   $45,270 $47,943
         
Per Share Information        
Basic earnings per common share$0.81  $0.72   $2.71 $2.88
Diluted earnings per common share 0.81   0.72    2.70  2.87
Dividends per common share 0.41   0.40    0.81  0.76
         
Weighted average shares outstanding 16,735,926   16,667,370    16,716,880  16,675,269
Diluted weighted average shares outstanding 16,779,129   16,699,876    16,762,856  16,709,476
         


          
FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
          
 For the Quarter Ended
 December 31, September 30, June 30, March 31, December 31,
  2020   2020  2020   2020   2019 
Interest income:         
Interest and fees on loans$33,254  $32,151 $31,382  $30,027  $31,206 
Interest on investment securities 4,226   4,074  4,077   4,589   5,101 
Interest on federal funds sold & other deposits 90   70  76   125   214 
Total interest income 37,570   36,295  35,535   34,741   36,521 
Interest expense:         
Interest on deposits 2,617   3,168  3,105   3,861   4,447 
Interest on securities sold under agreements to repurchase 68   68  158   194   240 
Interest on other borrowings 371   395  516   595   610 
Interest on jr. subordinated debentures 143   147  174   218   240 
Interest on subordinated debt 931   -  -   -   - 
Total interest expense 4,130   3,778  3,953   4,868   5,537 
Net interest income 33,440   32,517  31,582   29,873   30,984 
Provision for loan losses 603   3,883  6,136   5,481   2,737 
Net interest income after provision for loan 32,837   28,634  25,446   24,392   28,247 
Non-interest income:         
Wealth management revenues 5,232   3,468  3,827   3,626   5,027 
Insurance commissions 3,477   3,291  4,088   6,621   3,361 
Service charges 1,527   1,446  1,111   1,778   1,985 
Securities gains, net 193   95  287   531   479 
Mortgage banking revenues 1,870   1,661  1,236   308   579 
ATM/debit card revenue 2,369   2,367  2,239   1,987   2,100 
Other 879   1,250  1,097   1,659   1,342 
Total non-interest income 15,547   13,578  13,885   16,510   14,873 
Non-interest expense:         
Salaries and employee benefits 19,151   15,346  15,455   16,500   15,942 
Net occupancy and equipment expense 3,962   4,363  4,141   4,242   4,305 
Net other real estate owned (income) expense (20)  110  (2)  (46)  30 
FDIC insurance 458   469  289   93   (170)
Amortization of intangible assets 1,200   1,277  1,290   1,295   1,296 
Stationary and supplies 275   262  275   268   269 
Legal and professional expense 1,220   1,320  1,489   1,398   1,451 
Marketing and donations 434   387  314   481   573 
Other 3,651   3,393  2,847   3,500   3,905 
Total non-interest expense 30,331   26,927  26,098   27,731   27,601 
Income before income taxes 18,053   15,285  13,233   13,171   15,519 
Income taxes 4,484   3,720  3,096   3,172   3,543 
Net income$13,569  $11,565 $10,137  $9,999  $11,976 
          


FIRST MID BANCSHARES, INC.
Consolidated Financial Highlights and Ratios
(Dollars in thousands, except per share data)
(Unaudited)
 
  As of and for the Quarter Ended
  December 31, September 30,June 30, March 31, December 31,
   2020   2020   2020   2020   2019 
           
Loan Portfolio           
Construction and land development $122,479  $167,515  $180,934  $123,326  $94,142 
Farm real estate loans  254,341   256,230   251,382   242,891   240,241 
1-4 Family residential properties  325,762   339,172   342,036   325,128   336,427 
Multifamily residential properties  189,632   139,255   141,015   139,734   153,948 
Commercial real estate  1,174,300   1,177,571   1,123,540   1,002,868   995,702 
Loans secured by real estate  2,066,514   2,079,743   2,038,907   1,833,947   1,820,460 
Agricultural operating loans  137,352   141,074   149,043   139,136   136,124 
Commercial and industrial loans  738,313   807,668   811,169   565,789   528,973 
Consumer loans  78,002   80,348   82,084   82,104   83,183 
All other loans  118,238   127,414   124,059   123,322   126,607 
Total loans  3,138,419   3,236,247   3,205,262   2,744,298   2,695,347 
           
Deposit Portfolio           
Non-interest bearing demand deposits $936,926  $837,602  $817,623  $642,384  $633,331 
Interest bearing demand deposits  1,031,183   1,053,691   938,710   827,387   850,956 
Savings deposits  499,427   485,241   474,545   441,998   428,778 
Money Market  748,179   736,262   625,361   441,381   419,801 
Time deposits  477,069   507,040   529,588   555,477   584,500 
Total deposits  3,692,784   3,619,836   3,385,827   2,908,627   2,917,366 
           
Asset Quality          
Non-performing loans $28,123  $22,439  $23,096  $24,463  $27,818 
Non-performing assets  30,616   24,712   25,397   27,306   31,538 
Net charge-offs  608   349   631   1,188   2,567 
Allowance for loan losses to non-performing loans 149.02%  186.80%  166.18%  134.39%  96.74%
Allowance for loan losses to total loans outstanding1.41%1 1.41%1 1.30%1  1.20%  1.00%
Nonperforming loans to total loans  0.90%  0.69%  0.72%  0.89%  1.03%
Nonperforming assets to total assets  0.65%  0.55%  0.57%  0.71%  0.82%
           
Common Share Data          
Common shares outstanding  16,741,208   16,731,684   16,728,190   16,702,484   16,673,480 
Book value per common share $33.94  $33.53  $32.84  $31.91  $31.58 
Tangible book value per common share  26.29   25.80   25.02   24.00   23.59 
Market price of stock  33.66   24.95   26.23   23.74   35.25 
           
Key Performance Ratios and Metrics          
End of period earning assets $4,367,717  $4,130,186  $4,093,511  $3,492,271  $3,464,144 
Average earning assets  4,238,388   4,113,846   3,942,832   3,451,123   3,464,200 
Average rate on average earning assets (tax equivalent) 3.58%  3.56%  3.68%  4.11%  4.24%
Average rate on cost of funds  0.41%  0.39%  0.43%  0.60%  0.67%
Net interest margin (tax equivalent)  3.17%  3.17%  3.25%  3.51%  3.57%
Return on average assets  1.18%  1.03%  0.94%  1.05%  1.25%
Return on average common equity  9.66%  8.31%  7.47%  7.48%  9.17%
Efficiency ratio (tax equivalent) 2  59.02%  54.85%  54.27%  57.14%  57.23%
Full-time equivalent employees  824   816   828   835   827 
           
           
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 December 2020
 QTD Average   Average
 Balance Interest Rate
INTEREST EARNING ASSETS     
Interest bearing deposits$236,894  $75 0.13%
Federal funds sold 1,304   - 0.00%
Certificates of deposits investments 2,695   15 2.21%
Investment Securities:     
Taxable (total less municipals) 581,245   2,647 1.82%
Tax-exempt (Municipals) 240,398   1,997 3.32%
Loans (net of unearned income) 3,175,852   33,436 4.19%
      
Total interest earning assets 4,238,388   38,170 3.58%
      
NONEARNING ASSETS     
Cash and due from banks 86,239     
Premises and equipment 58,740     
Other nonearning assets 258,129     
Allowance for loan losses (43,026)    
      
Total assets$4,598,470     
      
INTEREST BEARING LIABILITIES     
Demand deposits$1,743,053  $900 0.21%
Savings deposits 494,802   107 0.09%
Time deposits 491,046   1,610 1.30%
Total interest bearing deposits 2,728,901   2,617 0.38%
Repurchase agreements 189,686   68 0.14%
FHLB advances 93,959   371 1.57%
Federal funds purchased 0   0 0.00%
Subordinated debt 89,128   931 4.16%
Jr. subordinated debentures 18,999   143 2.99%
Other borrowings 0   0 0.00%
Total borrowings 391,772   1,513 1.54%
Total interest bearing liabilities 3,120,673   4,130 0.53%
      
NONINTEREST BEARING LIABILITIES     
Demand deposits 867,035  Average cost of funds0.41%
Other liabilities 48,684     
Stockholders' equity 562,078     
      
Total liabilities & stockholders' equity$4,598,470     
      
Net Interest Earnings / Spread  $34,040 3.05%
      
Impact of Non-Interest Bearing Funds    0.12%
      
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
  December 31, September 30,June 30, March 31, December 31,
   2020   2020   2020   2020   2019 
           
Net interest income as reported $33,440  $32,517  $31,582  $29,873  $30,984 
Net interest income, (tax equivalent)  34,040   33,084   32,118   30,393   31,517 
Average earning assets  4,238,388   4,113,846   3,942,832   3,451,123   3,464,200 
Net interest margin (tax equivalent) 1  3.17%  3.17%  3.25%  3.51%  3.57%
           
           
Common stockholder's equity $568,228  $561,009  $549,273  $533,051  $526,609 
Goodwill and intangibles, net  128,120   129,287   130,656   132,199   133,257 
Common shares outstanding  16,741   16,732   16,728   16,702   16,673 
Tangible Book Value per common share $26.29  $25.80  $25.02  $24.00  $23.59 
           
           
Common equity tier 1 capital $439,299  $431,342  $417,326  $410,565  $398,536 
Risk weighted assets  3,132,049   3,101,591   3,101,449   2,854,102   2,822,648 
Common equity tier 1 capital to risk weighted assets 2 14.03%  13.91%  13.46%  14.39%  14.12%
           
           
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.