First Mid Bancshares, Inc. Announces First Quarter 2021 Results

Mattoon, Illinois, UNITED STATES


MATTOON, Ill., April 28, 2021 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended March 31, 2021.

Highlights

  • Net income of $4.1 million, or $0.24 diluted EPS
  • Adjusted net income (non-GAAP) of $15.2 million, or $0.88 diluted EPS, reflecting a record high
  • Completed the acquisition of LINCO Bancshares, Inc. (“LINCO”) and its subsidiary Providence Bank (“Providence”) on February 22, 2021
  • Solid quarter of wealth management and insurance revenues drives noninterest income to 33% of total
  • Board of Directors declares regular quarterly dividend of $0.205 per share

“We kicked off 2021 on a positive note with a strong financial performance, including record high adjusted earnings driven by successes across our business lines,” said Joe Dively, Chairman and Chief Executive Officer. “The quarter was highlighted by the closing of the LINCO acquisition where we met both our timing and financial targets. The reception from customers has been very good and the teams have been working extremely well together as we prepare for a mid-May bank system conversion.”

“We also had a strong start to the year in our farm management business and continued to play an important role in assisting our clients with the Paycheck Protection Program (PPP). Our commitment to our customers and communities is evident with the success we have had in the PPP program for both existing and new customers. We have had employees working long hours to help customers and added $107.4 million in loans under the new round of PPP, while working with borrowers from the previous rounds to process forgiveness applications. The First Mid team demonstrated how much it can accomplish within an unprecedented operating environment and I am proud of all the work they have done to support our customers and communities,” Dively concluded.

Net Interest Income

Net interest income for the first quarter of 2021 increased by $3.3 million, or 9.9% compared to the fourth quarter of 2020. Interest income increased by $3.2 million and interest expense declined by $0.1 million from the previous quarter. The increase in interest income was primarily driven by the addition of Providence for the period subsequent to closing on February 22, 2021. Accretion income increased by $0.9 million in the quarter to $1.2 million. This was offset by a decline in PPP fee income of $0.9 million to $2.3 million in total. At quarter end, the Company had $7.5 million of deferred fee income on PPP loans remaining. Interest expense declined, despite the addition of Providence, driven by additional reductions in money market and savings products and continuing to allow wholesale time deposit and FHLB advances to mature without replacement.

In comparison to the first quarter of 2020, net interest income increased $6.9 million, or 23.1%. The increase was primarily the result of the addition of Providence, the additional income from the PPP, and the active management to lower funding costs.            

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.16% for the first quarter of 2021, which was one basis point lower compared to the prior quarter. Earning asset yields declined by six basis points on higher cash liquidity invested at lower yields. The higher liquidity was primarily driven by additional government stimulus in the quarter. Average cost of funds declined by five basis points as the company continues to allow wholesale time deposits and FHLB advances to mature and lowered certain product rates during the period.

In comparison to the first quarter of last year, the net interest margin decreased 35 basis points with earning asset yields down 59 basis points and average cost of funds lower by 24 basis points. The current quarter included $2.3 million of PPP fee income that did not exist in the first quarter of 2020 and accretion income was higher by $0.3 million compared to the same period last year.

Loan Portfolio

Total loans ended the quarter at $3.94 billion, representing an increase of $804.7 million compared to the prior quarter. The increase was primarily driven by the addition of Providence, which had $817.2 million, net of the discount, at quarter end. Excluding Providence, loans declined $12.5 million in the quarter and PPP loans increased $35.3 million. The Company had $72.1 million of the initial PPP loans forgiven and/or pay down in the period, while it added $107.4 million in the new PPP program. Total PPP loans ended the period at $259.7 million, which included $56.1 million for Providence. Overall, the loan growth pipeline has improved, but payoffs have increased as well. A combination of stimulus and PPP income has helped borrowers reduce debt and the stronger Ag economy has driven farmers to pay down borrowings to improve their overall balance sheets.   

The Company continues to see its loan deferrals trending lower. As of April 23, 2021, outstanding deferrals totaled $45.8 million, or 1.2% of the loan portfolio. Hotels represent the largest deferral category at 90% of the total outstanding deferrals. A majority of the remaining deferrals are expected to return to full principal and interest over the next three months. All but one of the 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 March 31, 2021, the allowance for credit losses, excluding $259.7 million of PPP loans, was 1.50% of total loans, excluding 25 basis points of credit discount. Also at quarter end, the ratio of non-performing loans to total loans was 0.81%, and the allowance for credit losses to non-performing loans was 173.3%. Nonperforming loans and nonperforming assets increased with the addition of Providence. Excluding Providence, nonperforming loans and nonperforming assets were essentially flat compared to the fourth quarter. The ratio of nonperforming assets to total assets was 0.78% at quarter end. Net charge-offs were $0.7 million during the first quarter compared to $0.6 million in the prior quarter. During the quarter, the Company recognized significant improvement in its classified loans. Excluding Providence, special mention loans decreased $14.0 million to $123.8 million and substandard loans decreased $9.3 million to $50.2 million.

Provision expense was recorded in the amount of $12.1 million in the first quarter. The Company recorded $11.5 million for the non-PCD CECL requirement tied to the Providence acquisition. The allowance for credit losses increased $13.5 million to $55.4 million in the quarter. In addition to the non-PCD requirement related to the Providence acquisition, the Company added $2.1 million in PCD reserve through purchase accounting.   

Deposits

Total deposits ended the quarter at $4.74 billion, which represented an increase of $1.04 billion from the prior quarter primarily from the addition of Providence, which had $870.4 million in deposits at quarter end. Excluding Providence, total deposits increased $174.5 million driven primarily from increases related to the government stimulus efforts. The Company’s average rate on cost of funds was 0.36% for the quarter compared to 0.41% in the prior quarter and 0.60% in the first quarter of 2020. The Company continues to see opportunities to reprice CD’s lower as well as allow wholesale CD’s to mature.               

Noninterest Income

Noninterest income for the first quarter of 2021 was $17.7 million compared to $15.5 million in the fourth quarter of 2020. The increase compared to the prior quarter was partially due to the addition of Providence and the seasonally higher insurance revenue. Wealth management had a solid quarter of farm management fee income on higher commodity prices. Both the wealth management and insurance business are well diversified in their revenue sources and deliver consistent cash flows. These two businesses represent approximately 60% of the Company’s noninterest income providing significant diversification for the Company. The quarter also included an increase in debit card fee income as more businesses came off of pandemic restrictions allowing for more consumer spending. Service charges declined with additional stimulus in the quarter and mortgage banking was lower on higher interest rates.     

In comparison to the first quarter of 2020, noninterest income increased $1.2 million, or 7.5%. The year-over-year increase was driven by the addition of Providence, higher farm management fee income within the wealth management division, an increase in mortgage banking and debit card usage. These were offset by lower insurance revenues, service charges and securities gains.         

Noninterest Expenses     

Noninterest expense for the first quarter totaled $37.6 million compared to $30.3 million in the fourth quarter. The increase was primarily driven by the addition of Providence, non-recurring acquisition costs of $2.6 million, and higher incentive compensation.   

In comparison to the first quarter of 2020, noninterest expenses increased $9.9 million. The increase was primarily due to the addition of Providence, non-recurring acquisition costs and higher incentive compensation.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the first quarter 2021 was 61.2% compared to 58.3% in the prior quarter and 56.8% 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 assets13.75%
Tier 1 capital to risk-weighted assets10.74%
Common equity tier 1 capital to risk-weighted assets10.33%
Leverage ratio9.84%

The Company’s Board of Directors approved a regular quarterly dividend in the amount of $0.205 payable on June 1, 2021 for shareholders of record on May 18, 2021.  

About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., Providence Bank, First Mid Insurance Group, Inc. and First Mid Wealth Management Co. First Mid is a $5.8 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 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 “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 Bancshares, Inc. (“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 1955. 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, the possibility that any of the anticipated benefits of the closed transaction 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; changes in interest rates; general economic conditions and those in the market areas of First Mid; 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 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 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 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.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
            
 March 31, December 31, March 31,
  2021   2020   2020 
      
Assets     
Cash and cash equivalents$410,017  $417,281  $182,027 
Investment securities 1,099,532   887,169   646,744 
Loans (including loans held for sale) 3,943,099   3,138,419   2,744,298 
Less allowance for loan losses (55,418)  (41,910)  (32,876)
Net loans 3,887,681   3,096,509   2,711,422 
Premises and equipment, net 86,654   58,206   59,359 
Goodwill and intangibles, net 138,606   128,120   132,199 
Bank owned life insurance 124,925   68,955   67,656 
Other assets 89,855   70,108   65,424 
Total assets$5,837,270  $4,726,348  $3,864,831 
      
Liabilities and Stockholders' Equity     
Deposits:     
Non-interest bearing$1,185,181  $936,926  $642,384 
Interest bearing 3,552,512   2,755,858   2,266,243 
Total deposits 4,737,693   3,692,784   2,908,627 
Repurchase agreement with customers 212,503   206,937   231,649 
Other borrowings 116,861   93,969   124,921 
Junior subordinated debentures 19,069   19,027   18,900 
Subordinated debt 94,289   94,253   - 
Other liabilities 54,971   51,150   47,683 
Total liabilities 5,235,386   4,158,120   3,331,780 
      
Total stockholders' equity 601,884   568,228   533,051 
Total liabilities and stockholders' equity$5,837,270  $4,726,348  $3,864,831 
      


FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
    
 Three Months Ended
 March 31,
 2021 2020
Interest income:   
Interest and fees on loans$35,886 $30,027 
Interest on investment securities 4,842  4,589 
Interest on federal funds sold & other deposits 88  125 
Total interest income 40,816  34,741 
Interest expense:   
Interest on deposits 2,484  3,861 
Interest on securities sold under agreements to repurchase 70  194 
Interest on other borrowings 374  595 
Interest on jr. subordinated debentures 140  218 
Interest on subordinated debt 984  0 
Total interest expense 4,052  4,868 
Net interest income 36,764  29,873 
Provision for loan losses 12,136  5,481 
Net interest income after provision for loan 24,628  24,392 
Non-interest income:   
Wealth management revenues 4,926  3,626 
Insurance commissions 5,857  6,621 
Service charges 1,364  1,778 
Securities gains, net 4  531 
Mortgage banking revenues 1,409  308 
ATM/debit card revenue 2,699  1,987 
Other 1,490  1,659 
Total non-interest income 17,749  16,510 
Non-interest expense:   
Salaries and employee benefits 23,487  16,500 
Net occupancy and equipment expense 4,970  4,242 
Net other real estate owned (income) expense 78  (46)
FDIC insurance 452  93 
Amortization of intangible assets 1,220  1,295 
Stationary and supplies 316  268 
Legal and professional expense 1,402  1,398 
Marketing and donations 502  481 
Other 5,173  3,500 
Total non-interest expense 37,600  27,731 
Income before income taxes 4,777  13,171 
Income taxes 668  3,172 
Net income$4,109 $9,999 
    
Per Share Information   
Basic earnings per common share$0.24 $0.60 
Diluted earnings per common share 0.24  0.60 
    
Weighted average shares outstanding 17,299,927  16,693,183 
Diluted weighted average shares outstanding 17,352,947  16,740,091 
    


FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
           
  For the Quarter Ended
  March 31, December 31, September 30, June 30, March 31,
  2021 2020 2020 2020 2020
Interest income:          
Interest and fees on loans $35,886 $33,254  $32,151 $31,382  $30,027 
Interest on investment securities  4,842  4,226   4,074  4,077   4,589 
Interest on federal funds sold & other deposits  88  90   70  76   125 
Total interest income  40,816  37,570   36,295  35,535   34,741 
Interest expense:          
Interest on deposits  2,484  2,617   3,168  3,105   3,861 
Interest on securities sold under agreements to repurchase  70  68   68  158   194 
Interest on other borrowings  374  371   395  516   595 
Interest on jr. subordinated debentures  140  143   147  174   218 
Interest on subordinated debt  984  931   -  -   - 
Total interest expense  4,052  4,130   3,778  3,953   4,868 
Net interest income  36,764  33,440   32,517  31,582   29,873 
Provision for loan losses  12,136  603   3,883  6,136   5,481 
Net interest income after provision for loan  24,628  32,837   28,634  25,446   24,392 
Non-interest income:          
Wealth management revenues  4,926  5,232   3,468  3,827   3,626 
Insurance commissions  5,857  3,477   3,291  4,088   6,621 
Service charges  1,364  1,527   1,446  1,111   1,778 
Securities gains, net  4  193   95  287   531 
Mortgage banking revenues  1,409  1,870   1,661  1,236   308 
ATM/debit card revenue  2,699  2,369   2,367  2,239   1,987 
Other  1,490  879   1,250  1,097   1,659 
Total non-interest income  17,749  15,547   13,578  13,885   16,510 
Non-interest expense:          
Salaries and employee benefits  23,487  19,151   15,346  15,455   16,500 
Net occupancy and equipment expense  4,970  3,962   4,363  4,141   4,242 
Net other real estate owned (income) expense  78  (20)  110  (2)  (46)
FDIC insurance  452  458   469  289   93 
Amortization of intangible assets  1,220  1,200   1,277  1,290   1,295 
Stationary and supplies  316  275   262  275   268 
Legal and professional expense  1,402  1,220   1,320  1,489   1,398 
Marketing and donations  502  434   387  314   481 
Other  5,173  3,651   3,393  2,847   3,500 
Total non-interest expense  37,600  30,331   26,927  26,098   27,731 
Income before income taxes  4,777  18,053   15,285  13,233   13,171 
Income taxes  668  4,484   3,720  3,096   3,172 
Net income $4,109 $13,569  $11,565 $10,137  $9,999 
           
Per Share Information          
Basic earnings per common share $0.24 $0.81  $0.69 $0.61  $0.60 
Diluted earnings per common share  0.24  0.81   0.69  0.60   0.60 
           
Weighted average shares outstanding  17,299,927  16,735,926   16,728,191  16,709,886   16,693,183 
Diluted weighted average shares outstanding  17,352,947  16,779,129   16,775,099  16,756,794   16,740,091 
           


FIRST MID BANCSHARES, INC.
Consolidated Financial Highlights and Ratios
(Dollars in thousands, except per share data)
(Unaudited)
          
  As of and for the Quarter Ended
  March 31, December 31, September 30, June 30, March 31,
   2021   2020   2020   2020   2020 
                     
Loan Portfolio                     
Construction and land development $165,376  $122,479  $167,515  $180,934  $123,326 
Farm real estate loans  269,652   254,341   256,230   251,382   242,891 
1-4 Family residential properties  412,470   325,762   339,172   342,036   325,128 
Multifamily residential properties  297,984   189,632   139,255   141,015   139,734 
Commercial real estate  1,402,885   1,174,300   1,177,571   1,123,540   1,002,868 
Loans secured by real estate  2,548,367   2,066,514   2,079,743   2,038,907   1,833,947 
Agricultural operating loans  121,070   137,352   141,074   149,043   139,136 
Commercial and industrial loans  1,017,400   738,313   807,668   811,169   565,789 
Consumer loans  91,705   78,002   80,348   82,084   82,104 
All other loans  164,557   118,238   127,414   124,059   123,322 
Total loans  3,943,099   3,138,419   3,236,247   3,205,262   2,744,298 
           
Deposit Portfolio           
Non-interest bearing demand deposits $1,185,181  $936,926  $837,602  $817,623  $642,384 
Interest bearing demand deposits  1,268,882   1,031,183   1,053,691   938,710   827,387 
Savings deposits  668,098   499,427   485,241   474,545   441,998 
Money Market  803,946   748,179   736,262   625,361   441,381 
Time deposits  811,586   477,069   507,040   529,588   555,477 
Total deposits  4,737,693   3,692,784   3,619,836   3,385,827   2,908,627 
           
Asset Quality          
Non-performing loans $31,984  $28,123  $22,439  $23,096  $24,463 
Non-performing assets  45,323   30,616   24,712   25,397   27,306 
Net charge-offs  702   608   349   631   1,188 
Allowance for loan losses to non-performing loans 173.27%  149.02%  186.80%  166.18%  134.39%
Allowance for loan losses to total loans outstanding1.50%1 1.41%1 1.41%1 1.30%1  1.20%
Nonperforming loans to total loans  0.81%  0.90%  0.69%  0.72%  0.89%
Nonperforming assets to total assets  0.78%  0.65%  0.55%  0.57%  0.71%
           
Common Share Data          
Common shares outstanding  18,042,256   16,741,208   16,731,684   16,728,190   16,702,484 
Book value per common share $33.36  $33.94  $33.53  $32.84  $31.91 
Tangible book value per common share (2) 25.68   26.29   25.80   25.02   24.00 
Market price of stock  43.93   33.66   24.95   26.23   23.74 
           
Key Performance Ratios and Metrics          
End of period earning assets $5,837,270  $4,367,717  $4,130,186  $4,093,511  $3,492,271 
Average earning assets  4,769,975   4,238,388   4,113,846   3,942,832   3,451,123 
Average rate on average earning assets (tax equivalent) 3.52%  3.58%  3.56%  3.68%  4.11%
Average rate on cost of funds  0.36%  0.41%  0.39%  0.43%  0.60%
Net interest margin (tax equivalent) (2)  3.16%  3.17%  3.17%  3.25%  3.51%
Return on average assets  0.32%  1.18%  1.03%  0.94%  1.05%
Return on average common equity  2.78%  9.66%  8.31%  7.47%  7.48%
Efficiency ratio (tax equivalent) (2)  61.20%  58.27%  54.66%  53.70%  56.81%
Full-time equivalent employees  983   824   816   828   835 
           
           
1 Excludes Paycheck Protection Program loans.
2 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.
           


FIRST MID BANCSHARES, INC.
Net Interest Margin
(In thousands, unaudited)
 For the Quarter Ended March 2021
 QTD Average   Average
 Balance Interest Rate
INTEREST EARNING ASSETS     
Interest bearing deposits$278,295  $74 0.11%
Federal funds sold 1,316   - 0.03%
Certificates of deposits investments 2,695   14 2.14%
Investment Securities:     
Taxable (total less municipals) 761,727   3,249 1.71%
Tax-exempt (Municipals) 248,188   2,016 3.25%
Loans (net of unearned income) 3,477,754   36,058 4.20%
      
Total interest earning assets 4,769,975   41,411 3.52%
      
NONEARNING ASSETS     
Cash and due from banks 84,392     
Premises and equipment 68,282     
Other nonearning assets 296,284     
Allowance for loan losses (46,735)    
      
Total assets$5,172,198     
      
INTEREST BEARING LIABILITIES     
Demand deposits$1,876,378  $886 0.19%
Savings deposits 579,632   136 0.10%
Time deposits 623,852   1,462 0.95%
Total interest bearing deposits 3,079,862   2,484 0.33%
Repurchase agreements 198,670   70 0.14%
FHLB advances 102,081   374 1.49%
Federal funds purchased -   - 0.00%
Subordinated debt 94,266   984 4.23%
Jr. subordinated debentures 19,041   140 2.98%
Other borrowings -   - 0.00%
Total borrowings 414,058   1,568 1.54%
Total interest bearing liabilities 3,493,920   4,052 0.47%
      
NONINTEREST BEARING LIABILITIES     
Demand deposits 1,033,741  Average cost of funds0.36%
Other liabilities 54,346     
Stockholders' equity 590,191     
      
Total liabilities & stockholders' equity$5,172,198     
      
Net Interest Earnings / Spread  $37,359 3.05%
      
Impact of Non-Interest Bearing Funds    0.11%
      
Tax effected yield on interest earning assets   3.16%
      


FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, unaudited)
           
  As of and for the Quarter Ended
  March 31, December 31, September 30,June 30, March 31,
   2021   2020   2020   2020   2020 
           
Net interest income as reported $36,764  $33,440  $32,517  $31,582  $29,873 
Net interest income, (tax equivalent)  37,359   34,040   33,084   32,118   30,393 
Average earning assets  4,769,975   4,238,388   4,113,846   3,942,832   3,451,123 
Net interest margin (tax equivalent)  3.16%  3.17%  3.17%  3.25%  3.51%
           
           
Common stockholder's equity $601,884  $568,228  $561,009  $549,273  $533,051 
Goodwill and intangibles, net  138,606   128,120   129,287   130,656   132,199 
Common shares outstanding  18,042   16,741   16,732   16,728   16,702 
Tangible Book Value per common share $25.68  $26.29  $25.80  $25.02  $24.00 
           


FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)
           
  As of and for the Quarter Ended
  March 31, December 31, September 30,June 30, March 31,
  2021
 2020
 2020
 2020
 2020
Adjusted earnings Reconciliation          
Net Income - GAAP $4,109  $13,569  $11,565  $10,137  $9,999 
Adjustments (post-tax): (1)          
Acquisition ACL on non-PCD assets in provision expense 9,072   -   -   -   - 
Integration and acquisition expenses  2,036   292   69   204   110 
Total non-recurring adjustments (non-GAAP)$11,108  $292  $69  $204  $110 
           
Adjusted earnings - non-GAAP $15,217  $13,861  $11,634  $10,341  $10,109 
Adjusted diluted earnings per share (non-GAAP)$0.88  $0.83  $0.69  $0.62  $0.60 
           
Efficiency Ratio Reconciliation          
Noninterest expense - GAAP $37,600  $30,331  $26,927  $26,098  $27,731 
Foreclosed property income (expense)  (78)  20   (110)  2   46 
Amortization of intangibles  (1,220)  (1,200)  (1,277)  (1,290)  (1,295)
integration and acquisition expenses  (2,578)  (369)  (87)  (259)  (139)
Adjusted noninterest expense (non-GAAP) $33,724  $28,782  $25,453  $24,551  $26,343 
           
Net interest income -GAAP $36,764  $33,440  $32,517  $31,582  $29,873 
Effect of tax-exempt income (1)  595   601   566   537   520 
Adjusted net interest income (non-GAAP) $37,359  $34,041  $33,083  $32,119  $30,393 
           
Noninterest income - GAAP $17,749  $15,547  $13,578  $13,885  $16,510 
Gain on sales of investment securities, net  (4)  (193)  (95)  (287)  (531)
Adjusted noninterest income (non-GAAP) $17,745  $15,354  $13,483  $13,598  $15,979 
           
Adjusted total revenue (non-GAAP) $55,104  $49,395  $46,566  $45,717  $46,372 
           
Efficiency ratio (non-GAAP)  61.20%  58.27%  54.66%  53.70%  56.81%
           
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.