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 assets | 18.82% |
| Tier 1 capital to risk-weighted assets | 14.63% |
| Common equity tier 1 capital to risk-weighted assets | 14.03% |
| Leverage ratio | 10.22% |
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 outstanding | 1.41%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 funds | 0.41 | % | |||||
| 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. | ||||||||||||||||||||