MATTOON, Ill., Jan. 26, 2023 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter and year ended December 31, 2022.
Highlights
- Net income of $20.6 million, or $1.01 diluted EPS
- Adjusted net income (non-GAAP) of $20.8 million, or $1.01 diluted EPS
- Strong loan growth of 2.2% for the quarter and 10.3% for the year (excluding acquired loans)
- Tangible book value per share increased 7.8% for the quarter
- Improved on already strong asset quality ratios reflecting strength if economic downturn transpires
- Board of Directors declares regular quarterly dividend of $0.23 per share
“Our fourth quarter results capped off a strong, but challenging year,” said Joe Dively, Chairman and Chief Executive Officer. “For 2022, we delivered exceptional loan growth and excellent credit quality. Our noninterest income grew by over 7% for the year, driven by double digit growth in our wealth management and insurance businesses that more than offset lower mortgage banking revenues. We successfully integrated Jefferson Bank and Trust (“Jefferson”) and met all of our acquisition related financial targets. While funding costs have increased at a faster pace than we anticipated placing pressure on margin, we have offset this challenge with stringent expense management and our relationship driven strategy to provide our expanded services to customers.”
Net Interest Income
Net interest income for the fourth quarter of 2022 decreased by $2.6 million, or 5.4% compared to the third quarter of 2022. Interest income increased by $4.0 million primarily driven by loan growth and higher interest rates. Interest expense increased by $6.5 million on increased rates and aggressive competition. Accretion income declined by $0.3 million for the quarter to $0.6 million.
In comparison to the fourth quarter of 2021, net interest income increased $2.9 million, or 6.9%. The increase was primarily the result of organic loan growth, higher interest rates, and the acquisition of Jefferson.
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.07% for the fourth quarter of 2022, which was a decrease of 14 basis points compared to the prior quarter. Lower accretion income represented 2 basis points of the decline for the quarter. Earning asset yields increased by 30 basis points, while the average cost of funds increased 44 basis points.
In comparison to the fourth quarter of last year, the net interest margin decreased 4 basis points. The primary reason for the decrease was due to PPP fee income being lower by $1.7 million compared to the fourth quarter of 2021. Earning asset yields increased 70 basis points, while the average cost of funds increased 74 basis points.
Loan Portfolio
Total loans ended the quarter at $4.83 billion, representing an increase of $105.9 million, or 2.2%, compared to the prior quarter. The growth in the quarter was primarily in farm real estate, CRE and C&I. While the pipeline remains solid, we do anticipate it softening based on the macroeconomic conditions. As we have experienced in the past, we expect seasonal line paydowns in agricultural operating lines during the first quarter of 2023.
Asset Quality
First Mid’s asset quality continues to be very strong and well positioned if an economic downturn occurs. Nonperforming loans decreased by $1.6 million in the period and the ratio of nonperforming loans to total loans decreased to 0.40%. The allowance for credit losses (“ACL”) to nonperforming loans increased to 308.3%. As of December 31, 2022, the ACL increased by $0.3 million to $59.1 million with an ending ACL to total loans ratio of 1.22%. In addition, the Company has $7.0 million, or 15 basis points, of discount remaining on purchased loans. Provision expense was recorded in the amount of $0.8 million and net charge offs totaled $0.5 million. Special mention loans increased by $14.6 million, while substandard loans decreased by $3.0 million.
Deposits
Total deposits ended the quarter at $5.26 billion, which represented a decrease of $226.2 million, or 4.1%, from the prior quarter. The decrease was primarily in money market and noninterest bearing deposits. The Company has experienced increased competition from brokerage firms and community banks. In some cases, we are successful in maintaining the customer’s funds within the Company, but off balance sheet by providing our own wealth management solutions. The Company’s average rate on cost of funds was 1.00% compared to 0.56% in the prior quarter, and 0.26% versus the fourth quarter of 2021.
Noninterest Income
Noninterest income for the fourth quarter of 2022 was $18.2 million compared to $16.8 million in the third quarter of 2022. The increase was primarily driven by the seasonality in insurance and wealth management revenues from farmland sales. Wealth management and insurance revenue increased $1.4 million and $0.6 million, respectively, from the prior quarter. Mortgage banking represented the largest decline in the period.
In comparison to the fourth quarter of 2021, noninterest income increased $0.1 million, or 0.5%. The increase was primarily driven by a $0.6 million increase in insurance and a $0.3 million increase in service charges, offsetting a $0.8 million decline in mortgage banking.
Noninterest Expenses
Noninterest expense for the fourth quarter of 2022 totaled $39.4 million, which was a decrease of $2.2 million compared to the prior quarter. The current quarter included $0.2 million of nonrecurring integration expenses for the Jefferson acquisition compared to $0.7 million in the third quarter. The Company has increased its emphasis in its ongoing effort to identify and implement cost savings initiatives to drive a more efficient operations.
In comparison to the fourth quarter of 2021, noninterest expenses increased $3.0 million. The increase was primarily driven by the additional expense related to the Jefferson acquisition and inflationary cost increases.
The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter 2022 was 58.1% compared to 59.6% in the prior quarter and 55.8% for the same period last year.
Capital Levels, Dividend and Taxes
The Company’s capital levels remained strong and comfortably above the “well capitalized” levels. Capital levels ended the period as follows:
| Total capital to risk-weighted assets | 15.20% |
| Tier 1 capital to risk-weighted assets | 12.40% |
| Common equity tier 1 capital to risk-weighted assets | 12.03% |
| Leverage ratio | 9.62% |
The Company’s Board of Directors approved a regular quarterly dividend of $0.23 payable on March 1, 2023 for shareholders of record on February 15, 2023.
The Company’s effective tax rate for the fourth quarter was 12.9% compared to 23.2% in the prior quarter. The primary reason for the lower tax rate was a $2.5 million credit in the current quarter. The credit was due to the removal of a deferred tax liability that was no longer applicable.
About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., and First Mid Wealth Management Co. First Mid is a $6.7 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, and Texas, and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 157 years. More information about the Company is available on our website at www.firstmid.com.
Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles (“GAAP”), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include “Adjusted Net Income,” “Adjusted Diluted EPS,” “Efficiency Ratio,” “Net Interest Margin, tax equivalent,” and “Tangible Book Value per Common Share”. While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.
Forward Looking Statements
This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses, and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid, are identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid’s loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines; the severity, magnitude and duration of the COVID-19 pandemic, the direct and indirect impact of such pandemic, including responses to the pandemic by the U.S., state and local governments, customers' businesses, the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect First Mid’s liquidity and capital positions, impair the ability of First Mid’s borrowers to repay outstanding loans, impair collateral values, and further increase the allowance for credit losses, and the impact of the COVID-19 pandemic on First Mid’s financial results, including possible lost revenue and increased expenses (including cost of capital), as well as possible goodwill impairment charges. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid’s financial results, are included in First Mid’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.
Investor Contact:
Aaron Holt
VP, Shareholder Relations
217-258-0463
aholt@firstmid.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, | |||||||||
| 2022 | 2022 | 2021 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 152,433 | $ | 160,954 | $ | 168,602 | |||||
| Investment securities | 1,223,720 | 1,235,505 | 1,431,299 | ||||||||
| Loans (including loans held for sale) | 4,826,212 | 4,720,290 | 3,995,523 | ||||||||
| Less allowance for credit losses | (59,093 | ) | (58,777 | ) | (54,655 | ) | |||||
| Net loans | 4,767,119 | 4,661,513 | 3,940,868 | ||||||||
| Premises and equipment, net | 90,473 | 90,659 | 81,484 | ||||||||
| Goodwill and intangibles, net | 169,897 | 170,897 | 141,376 | ||||||||
| Bank owned life insurance | 151,756 | 150,831 | 132,375 | ||||||||
| Other assets | 188,817 | 181,024 | 90,578 | ||||||||
| Total assets | $ | 6,744,215 | $ | 6,651,383 | $ | 5,986,582 | |||||
| Liabilities and Stockholders' Equity | |||||||||||
| Deposits: | |||||||||||
| Non-interest bearing | $ | 1,256,514 | $ | 1,334,686 | $ | 1,246,673 | |||||
| Interest bearing | 4,000,487 | 4,148,512 | 3,709,813 | ||||||||
| Total deposits | 5,257,001 | 5,483,198 | 4,956,486 | ||||||||
| Repurchase agreement with customers | 221,414 | 220,707 | 146,268 | ||||||||
| Other borrowings | 465,071 | 181,232 | 86,446 | ||||||||
| Junior subordinated debentures | 19,364 | 19,322 | 19,195 | ||||||||
| Subordinated debt | 94,553 | 94,515 | 94,400 | ||||||||
| Other liabilities | 53,657 | 51,694 | 49,893 | ||||||||
| Total liabilities | 6,111,060 | 6,050,668 | 5,352,688 | ||||||||
| Total stockholders' equity | 633,155 | 600,715 | 633,894 | ||||||||
| Total liabilities and stockholders' equity | $ | 6,744,215 | $ | 6,651,383 | $ | 5,986,582 | |||||
| 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, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Interest income: | ||||||||||||
| Interest and fees on loans | $ | 53,128 | $ | 39,711 | $ | 185,869 | $ | 159,684 | ||||
| Interest on investment securities | 7,285 | 6,500 | 29,380 | 22,916 | ||||||||
| Interest on federal funds sold & other deposits | 296 | 88 | 642 | 413 | ||||||||
| Total interest income | 60,709 | 46,299 | 215,891 | 183,013 | ||||||||
| Interest expense: | ||||||||||||
| Interest on deposits | 9,227 | 2,057 | 18,813 | 9,037 | ||||||||
| Interest on securities sold under agreements to repurchase | 1,163 | 52 | 1,795 | 231 | ||||||||
| Interest on other borrowings | 3,345 | 336 | 6,193 | 1,514 | ||||||||
| Interest on jr. subordinated debentures | 315 | 125 | 868 | 541 | ||||||||
| Interest on subordinated debt | 987 | 985 | 3,945 | 3,939 | ||||||||
| Total interest expense | 15,037 | 3,555 | 31,614 | 15,262 | ||||||||
| Net interest income | 45,672 | 42,744 | 184,277 | 167,751 | ||||||||
| Provision for loan losses | 805 | 2,472 | 4,806 | 15,151 | ||||||||
| Net interest income after provision for loan | 44,867 | 40,272 | 179,471 | 152,600 | ||||||||
| Non-interest income: | ||||||||||||
| Wealth management revenues | 6,201 | 6,261 | 22,492 | 20,407 | ||||||||
| Insurance commissions | 4,719 | 4,150 | 21,622 | 18,927 | ||||||||
| Service charges | 2,375 | 2,067 | 9,112 | 6,808 | ||||||||
| Securities gains, net | (48 | ) | 36 | 33 | 124 | |||||||
| Mortgage banking revenues | 65 | 890 | 1,190 | 4,718 | ||||||||
| ATM/debit card revenue | 3,209 | 3,074 | 12,422 | 11,974 | ||||||||
| Other | 1,686 | 1,646 | 7,811 | 6,809 | ||||||||
| Total non-interest income | 18,207 | 18,124 | 74,682 | 69,767 | ||||||||
| Non-interest expense: | ||||||||||||
| Salaries and employee benefits | 23,610 | 20,424 | 98,594 | 89,660 | ||||||||
| Net occupancy and equipment expense | 6,126 | 5,712 | 24,257 | 21,546 | ||||||||
| Net other real estate owned (income) expense | 87 | 315 | 330 | 3,866 | ||||||||
| FDIC insurance | 464 | 406 | 1,805 | 1,604 | ||||||||
| Amortization of intangible assets | 1,537 | 1,462 | 6,290 | 5,391 | ||||||||
| Stationary and supplies | 298 | 311 | 1,295 | 1,161 | ||||||||
| Legal and professional expense | 1,607 | 1,811 | 6,996 | 6,730 | ||||||||
| ATM/debit card expense | 1,309 | 586 | 4,300 | 3,116 | ||||||||
| Marketing and donations | 681 | 1,915 | 2,999 | 3,603 | ||||||||
| Other | 3,653 | 3,452 | 15,995 | 18,902 | ||||||||
| Total non-interest expense | 39,372 | 36,394 | 162,861 | 155,579 | ||||||||
| Income before income taxes | 23,702 | 22,002 | 91,292 | 66,788 | ||||||||
| Income taxes | 3,063 | 5,168 | 18,340 | 15,298 | ||||||||
| Net income | $ | 20,639 | $ | 16,834 | $ | 72,952 | $ | 51,490 | ||||
| Per Share Information | ||||||||||||
| Basic earnings per common share | $ | 1.01 | $ | 0.93 | $ | 3.62 | $ | 2.88 | ||||
| Diluted earnings per common share | 1.01 | 0.93 | 3.60 | 2.87 | ||||||||
| Weighted average shares outstanding | 20,461,046 | 18,086,949 | 20,169,077 | 17,886,998 | ||||||||
| Diluted weighted average shares outstanding | 20,535,220 | 18,135,380 | 20,243,635 | 17,939,007 | ||||||||
| 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, | ||||||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||
| Interest income: | ||||||||||||||||
| Interest and fees on loans | $ | 53,128 | $ | 49,278 | $ | 43,555 | $ | 39,908 | $ | 39,711 | ||||||
| Interest on investment securities | 7,285 | 7,302 | 7,623 | 7,170 | 6,500 | |||||||||||
| Interest on federal funds sold & other deposits | 296 | 174 | 105 | 67 | 88 | |||||||||||
| Total interest income | 60,709 | 56,754 | 51,283 | 47,145 | 46,299 | |||||||||||
| Interest expense: | ||||||||||||||||
| Interest on deposits | 9,227 | 4,915 | 2,523 | 2,148 | 2,057 | |||||||||||
| Interest on securities sold under agreements to repurchase | 1,163 | 428 | 137 | 67 | 52 | |||||||||||
| Interest on other borrowings | 3,345 | 1,927 | 645 | 276 | 336 | |||||||||||
| Interest on jr. subordinated debentures | 315 | 241 | 166 | 146 | 125 | |||||||||||
| Interest on subordinated debt | 987 | 986 | 986 | 986 | 985 | |||||||||||
| Total interest expense | 15,037 | 8,497 | 4,457 | 3,623 | 3,555 | |||||||||||
| Net interest income | 45,672 | 48,257 | 46,826 | 43,522 | 42,744 | |||||||||||
| Provision for loan losses | 805 | 142 | 907 | 2,952 | 2,472 | |||||||||||
| Net interest income after provision for loan | 44,867 | 48,115 | 45,919 | 40,570 | 40,272 | |||||||||||
| Non-interest income: | ||||||||||||||||
| Wealth management revenues | 6,201 | 4,843 | 5,473 | 5,975 | 6,261 | |||||||||||
| Insurance commissions | 4,719 | 4,158 | 5,641 | 7,104 | 4,150 | |||||||||||
| Service charges | 2,375 | 2,445 | 2,236 | 2,056 | 2,067 | |||||||||||
| Securities gains, net | (48 | ) | 79 | 2 | - | 36 | ||||||||||
| Mortgage banking revenues | 65 | 355 | 289 | 444 | 890 | |||||||||||
| ATM/debit card revenue | 3,209 | 3,101 | 3,214 | 2,898 | 3,074 | |||||||||||
| Other | 1,686 | 1,810 | 1,704 | 2,611 | 1,646 | |||||||||||
| Total non-interest income | 18,207 | 16,791 | 18,559 | 21,088 | 18,124 | |||||||||||
| Non-interest expense: | ||||||||||||||||
| Salaries and employee benefits | 23,610 | 24,877 | 25,768 | 24,302 | 20,424 | |||||||||||
| Net occupancy and equipment expense | 6,126 | 5,903 | 6,073 | 6,155 | 5,712 | |||||||||||
| Net other real estate owned (income) expense | 87 | 58 | 218 | (33 | ) | 315 | ||||||||||
| FDIC insurance | 464 | 479 | 436 | 426 | 406 | |||||||||||
| Amortization of intangible assets | 1,537 | 1,598 | 1,633 | 1,522 | 1,462 | |||||||||||
| Stationary and supplies | 298 | 361 | 325 | 311 | 311 | |||||||||||
| Legal and professional expense | 1,607 | 1,770 | 1,885 | 1,734 | 1,811 | |||||||||||
| ATM/debit card expense | 1,309 | 1,243 | 670 | 1,078 | 586 | |||||||||||
| Marketing and donations | 681 | 739 | 706 | 873 | 1,915 | |||||||||||
| Other | 3,653 | 4,521 | 3,801 | 4,020 | 3,452 | |||||||||||
| Total non-interest expense | 39,372 | 41,549 | 41,515 | 40,388 | 36,394 | |||||||||||
| Income before income taxes | 23,702 | 23,357 | 22,963 | 21,270 | 22,002 | |||||||||||
| Income taxes | 3,063 | 5,418 | 5,205 | 4,654 | 5,168 | |||||||||||
| Net income | $ | 20,639 | $ | 17,939 | $ | 17,758 | $ | 16,616 | $ | 16,834 | ||||||
| Per Share Information | ||||||||||||||||
| Basic earnings per common share | $ | 1.01 | $ | 0.88 | $ | 0.87 | $ | 0.86 | $ | 0.93 | ||||||
| Diluted earnings per common share | 1.01 | 0.88 | 0.86 | 0.86 | 0.93 | |||||||||||
| Weighted average shares outstanding | 20,461,046 | 20,454,669 | 20,448,799 | 19,295,860 | 18,086,949 | |||||||||||
| Diluted weighted average shares outstanding | 20,535,220 | 20,535,215 | 20,529,523 | 19,358,457 | 18,135,380 | |||||||||||
| 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, | ||||||||||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||||
| Loan Portfolio | ||||||||||||||||||||
| Construction and land development | $ | 144,264 | $ | 142,801 | $ | 141,072 | $ | 131,504 | $ | 145,118 | ||||||||||
| Farm real estate loans | 410,327 | 360,424 | 350,159 | 280,993 | 279,272 | |||||||||||||||
| 1-4 Family residential properties | 440,180 | 436,625 | 424,230 | 417,232 | 400,313 | |||||||||||||||
| Multifamily residential properties | 294,346 | 298,321 | 330,600 | 369,926 | 298,942 | |||||||||||||||
| Commercial real estate | 2,030,011 | 1,996,338 | 1,976,654 | 1,965,321 | 1,666,198 | |||||||||||||||
| Loans secured by real estate | 3,319,128 | 3,234,509 | 3,222,715 | 3,164,976 | 2,789,843 | |||||||||||||||
| Agricultural operating loans | 166,838 | 160,511 | 142,406 | 121,708 | 151,484 | |||||||||||||||
| Commercial and industrial loans | 1,082,960 | 1,064,033 | 1,036,987 | 935,454 | 832,008 | |||||||||||||||
| Consumer loans | 97,775 | 100,783 | 94,828 | 89,685 | 78,442 | |||||||||||||||
| All other loans | 159,511 | 160,454 | 151,727 | 142,738 | 143,746 | |||||||||||||||
| Total loans | 4,826,212 | 4,720,290 | 4,648,663 | 4,454,561 | 3,995,523 | |||||||||||||||
| Deposit Portfolio | ||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,256,514 | $ | 1,334,686 | $ | 1,369,756 | $ | 1,373,881 | $ | 1,246,673 | ||||||||||
| Interest bearing demand deposits | 1,389,283 | 1,364,306 | 1,453,932 | 1,482,556 | 1,452,765 | |||||||||||||||
| Savings deposits | 636,699 | 657,592 | 683,944 | 685,228 | 626,523 | |||||||||||||||
| Money Market | 1,267,726 | 1,443,060 | 1,158,724 | 1,280,129 | 1,068,473 | |||||||||||||||
| Time deposits | 706,779 | 683,554 | 652,622 | 665,511 | 562,052 | |||||||||||||||
| Total deposits | 5,257,001 | 5,483,198 | 5,318,978 | 5,487,305 | 4,956,486 | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Non-performing loans | $ | 19,170 | $ | 20,812 | $ | 19,981 | $ | 22,465 | $ | 22,036 | ||||||||||
| Non-performing assets | 23,539 | 25,143 | 24,190 | 27,269 | 27,055 | |||||||||||||||
| Net charge-offs (recoveries) | 489 | 440 | 307 | (5 | ) | 1,800 | ||||||||||||||
| Allowance for credit losses to non-performing loans | 308.26 | % | 282.42 | % | 295.66 | % | 260.29 | % | 248.03 | % | ||||||||||
| Allowance for credit losses to total loans outstanding | 1.22 | % | 1.25 | % | 1.27 | % | 1.31 | % | 1.37%1 | |||||||||||
| Nonperforming loans to total loans | 0.40 | % | 0.44 | % | 0.43 | % | 0.50 | % | 0.55 | % | ||||||||||
| Nonperforming assets to total assets | 0.35 | % | 0.38 | % | 0.36 | % | 0.41 | % | 0.45 | % | ||||||||||
| Special Mention loans | 39,853 | 25,298 | 35,849 | 64,160 | 66,235 | |||||||||||||||
| Substandard and Doubtful loans | 34,352 | 37,378 | 38,155 | 38,801 | 46,862 | |||||||||||||||
| Common Share Data | ||||||||||||||||||||
| Common shares outstanding | 20,452,376 | 20,454,636 | 20,448,799 | 20,437,183 | 18,080,303 | |||||||||||||||
| Book value per common share | $ | 30.96 | $ | 29.37 | $ | 30.63 | $ | 32.61 | $ | 35.06 | ||||||||||
| Tangible book value per common share (2) | 22.65 | 21.01 | 22.17 | 24.07 | 27.24 | |||||||||||||||
| Market price of stock | 32.08 | 31.97 | 35.67 | 38.49 | 42.79 | |||||||||||||||
| Key Performance Ratios and Metrics | ||||||||||||||||||||
| End of period earning assets | $ | 6,063,953 | $ | 5,975,619 | $ | 6,024,815 | $ | 6,038,542 | $ | 5,504,517 | ||||||||||
| Average earning assets | 6,000,106 | 6,063,061 | 5,975,821 | 5,817,752 | 5,539,819 | |||||||||||||||
| Average rate on average earning assets (tax equivalent) | 4.07 | % | 3.77 | % | 3.50 | % | 3.33 | % | 3.37 | % | ||||||||||
| Average rate on cost of funds | 1.00 | % | 0.56 | % | 0.30 | % | 0.26 | % | 0.26 | % | ||||||||||
| Net interest margin (tax equivalent) (2) | 3.07 | % | 3.21 | % | 3.20 | % | 3.07 | % | 3.11 | % | ||||||||||
| Return on average assets | 1.24 | % | 1.07 | % | 1.08 | % | 1.05 | % | 1.12 | % | ||||||||||
| Return on average common equity | 13.51 | % | 11.18 | % | 11.02 | % | 9.95 | % | 10.74 | % | ||||||||||
| Efficiency ratio (tax equivalent) (2) | 58.07 | % | 59.64 | % | 58.45 | % | 58.59 | % | 55.75 | % | ||||||||||
| Full-time equivalent employees | 1,043 | 1,051 | 1,025 | 1,050 | 965 | |||||||||||||||
| 1 Excludes Paycheck Protection Loans | ||||||||||||||||||||
| 2 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure. | ||||||||||||||||||||
| FIRST MID BANCSHARES, INC. | ||||||||
| Net Interest Margin | ||||||||
| (In thousands, unaudited) | ||||||||
| For the Quarter Ended December 31, 2022 | ||||||||
| QTD Average | Average | |||||||
| Balance | Interest | Rate | ||||||
| INTEREST EARNING ASSETS | ||||||||
| Interest bearing deposits | $ | 18,419 | $ | 220 | 4.74% | |||
| Federal funds sold | 7,507 | 68 | 3.59% | |||||
| Certificates of deposits investments | 1,470 | 8 | 2.16% | |||||
| Investment Securities: | ||||||||
| Taxable (total less municipals) | 958,380 | 5,238 | 2.19% | |||||
| Tax-exempt (Municipals) | 278,128 | 2,592 | 3.73% | |||||
| Loans (net of unearned income) | 4,736,202 | 53,374 | 4.47% | |||||
| Total interest earning assets | 6,000,106 | 61,500 | 4.07% | |||||
| NONEARNING ASSETS | ||||||||
| Cash and due from banks | 141,696 | |||||||
| Premises and equipment | 90,679 | |||||||
| Other nonearning assets | 486,896 | |||||||
| Allowance for loan losses | (58,967 | ) | ||||||
| Total assets | $ | 6,660,410 | ||||||
| INTEREST BEARING LIABILITIES | ||||||||
| Demand deposits | $ | 2,582,114 | $ | 7,014 | 1.08% | |||
| Savings deposits | 648,084 | 178 | 0.11% | |||||
| Time deposits | 686,100 | 2,034 | 1.18% | |||||
| Total interest bearing deposits | 3,916,298 | 9,226 | 0.93% | |||||
| Repurchase agreements | 248,886 | 1,163 | 1.85% | |||||
| FHLB advances | 399,574 | 3,342 | 3.32% | |||||
| Federal funds purchased | 266 | 3 | 4.47% | |||||
| Subordinated debt | 94,528 | 987 | 4.14% | |||||
| Jr. subordinated debentures | 19,343 | 315 | 6.46% | |||||
| Other debt | - | - | 0.00% | |||||
| Total borrowings | 762,597 | 5,810 | 3.02% | |||||
| Total interest bearing liabilities | 4,678,895 | 15,036 | 1.27% | |||||
| NONINTEREST BEARING LIABILITIES | ||||||||
| Demand deposits | 1,315,996 | Average cost of funds | 1.00% | |||||
| Other liabilities | 54,647 | |||||||
| Stockholders' equity | 610,872 | |||||||
| Total liabilities & stockholders' equity | $ | 6,660,410 | ||||||
| Net Interest Earnings / Spread | $ | 46,464 | 2.80% | |||||
| Impact of Non-Interest Bearing Funds | 0.27% | |||||||
| Tax effected yield on interest earning assets | 3.07% | |||||||
| 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, | ||||||||||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | ||||||||||||||||
| Net interest income as reported | $ | 45,672 | $ | 48,257 | $ | 46,826 | $ | 43,522 | $ | 42,744 | ||||||||||
| Net interest income, (tax equivalent) | 46,464 | 49,060 | 47,625 | 44,292 | 43,492 | |||||||||||||||
| Average earning assets | 6,000,106 | 6,063,061 | 5,975,821 | 5,817,752 | 5,539,819 | |||||||||||||||
| Net interest margin (tax equivalent) | 3.07 | % | 3.21 | % | 3.20 | % | 3.07 | % | 3.11 | % | ||||||||||
| Common stockholder's equity | $ | 633,155 | $ | 600,715 | $ | 626,268 | $ | 666,385 | $ | 633,894 | ||||||||||
| Goodwill and intangibles, net | 169,897 | 170,897 | 172,871 | 174,499 | 141,376 | |||||||||||||||
| Common shares outstanding | 20,452 | 20,455 | 20,449 | 20,437 | 18,080 | |||||||||||||||
| Tangible Book Value per common share | $ | 22.65 | $ | 21.01 | $ | 22.17 | $ | 24.07 | $ | 27.24 | ||||||||||
| FIRST MID BANCSHARES, INC. | |||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||
| (In thousands, except per share data, unaudited) | |||||||||||||||||||
| As of and for the Quarter Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2022 | 2022 | 2022 | 2022 | 2021 | |||||||||||||||
| Adjusted earnings Reconciliation | |||||||||||||||||||
| Net Income - GAAP | $ | 20,639 | $ | 17,939 | $ | 17,758 | $ | 16,616 | $ | 16,834 | |||||||||
| Adjustments (post-tax): (1) | |||||||||||||||||||
| Acquisition ACL on non-PCD assets in provision expense | - | - | - | 1,580 | - | ||||||||||||||
| Integration and acquisition expenses | 131 | 524 | 777 | 469 | 225 | ||||||||||||||
| Total non-recurring adjustments (non-GAAP) | $ | 131 | $ | 524 | $ | 777 | $ | 2,049 | $ | 225 | |||||||||
| Adjusted earnings - non-GAAP | $ | 20,770 | $ | 18,463 | $ | 18,535 | $ | 18,665 | $ | 17,059 | |||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 1.01 | $ | 0.90 | $ | 0.90 | $ | 0.96 | $ | 0.94 | |||||||||
| Efficiency Ratio Reconciliation | |||||||||||||||||||
| Noninterest expense - GAAP | $ | 39,372 | $ | 41,549 | $ | 41,515 | $ | 40,388 | $ | 36,394 | |||||||||
| Other real estate owned property income (expense) | (87 | ) | (58 | ) | (218 | ) | 33 | (315 | ) | ||||||||||
| Amortization of intangibles | (1,537 | ) | (1,598 | ) | (1,633 | ) | (1,522 | ) | (1,462 | ) | |||||||||
| Branch optimization costs | - | - | - | - | - | ||||||||||||||
| integration and acquisition expenses | (166 | ) | (663 | ) | (983 | ) | (594 | ) | (285 | ) | |||||||||
| Adjusted noninterest expense (non-GAAP) | $ | 37,582 | $ | 39,230 | $ | 38,681 | $ | 38,305 | $ | 34,332 | |||||||||
| Net interest income -GAAP | $ | 45,672 | $ | 48,257 | $ | 46,826 | $ | 43,522 | $ | 42,744 | |||||||||
| Effect of tax-exempt income (1) | 792 | 803 | 799 | 770 | 748 | ||||||||||||||
| Adjusted net interest income (non-GAAP) | $ | 46,464 | $ | 49,060 | $ | 47,625 | $ | 44,292 | $ | 43,492 | |||||||||
| Noninterest income - GAAP | $ | 18,207 | $ | 16,791 | $ | 18,559 | $ | 21,088 | $ | 18,124 | |||||||||
| Loss/(Gain) on sales of investment securities, net | 48 | (79 | ) | (2 | ) | - | (36 | ) | |||||||||||
| Adjusted noninterest income (non-GAAP) | $ | 18,255 | $ | 16,712 | $ | 18,557 | $ | 21,088 | $ | 18,088 | |||||||||
| Adjusted total revenue (non-GAAP) | $ | 64,719 | $ | 65,772 | $ | 66,182 | $ | 65,380 | $ | 61,580 | |||||||||
| Efficiency ratio (non-GAAP) | 58.07 | % | 59.64 | % | 58.45 | % | 58.59 | % | 55.75 | % | |||||||||
| (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. | |||||||||||||||||||
