MATTOON, Ill., April 27, 2022 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended March 31, 2022.
Highlights
- Net income of $16.6 million, or $0.86 diluted EPS
- Adjusted net income (non-GAAP) of $18.7 million, or $0.96 diluted EPS
- Completed the acquisition of Delta Bancshares Company (“Delta”) and its subsidiary Jefferson Bank and Trust (“Jefferson”) on February 14, 2022
- Strong quarter of wealth management and insurance revenues delivering on our unique diversification
- Board of Directors declared regular quarterly dividend of $0.22 per share
“We are off to a great start in 2022 with strong earnings across our diversified revenue streams,” said Joe Dively, Chairman and Chief Executive Officer. “The quarter was highlighted by the closing of the Delta acquisition, which brings additional depth and an expanded retail presence to our St. Louis Metro footprint. The reception from Jefferson’s customers has been positive and our experienced integration team is preparing for a mid-June bank system conversion.”
“Our wealth management group had a great quarter led by higher farm services revenue with increasing commodity prices and farmland sales. Assets under management for the group increased to $5.4 billion. Our insurance group also had a strong start to the year, and combined with wealth management, these two business units recognized year-over-year revenue growth of 21.3%. In what has historically been a seasonally slow quarter for us, loan growth was 1.1%, normalized for acquired and Paycheck Protection Program (“PPP”) loans. I am pleased with the first quarter momentum and expect that to carry forward throughout the year,” Dively concluded.
Net Interest Income
Net interest income for the first quarter of 2022 increased by $0.8 million, or 1.8% compared to the fourth quarter of 2021. Interest income increased by $0.8 million and interest expense was flat from the previous quarter. The increase in interest income was primarily driven by a combination of organic growth and acquisitions. Accretion income increased by $0.4 million in the quarter to $1.1 million and ended the quarter with a remaining discount of $9.3 million. Interest expense was flat with slightly higher interest on deposits offset by lower interest on FHLB borrowings.
In comparison to the first quarter of 2021, net interest income increased $6.8 million, or 18.4%. The increase was primarily the result of organic loan growth and the impact of acquisitions. Total interest expense was lower by $0.4 million compared to the same quarter last year, despite the Delta acquisition and the first quarter 2021 acquisition of Providence Bank (“Providence”).
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.07% for the first quarter of 2022, which was 4 basis points lower compared to the prior quarter. Earning asset yields declined by 4 basis points, with a decline in loan yields partially offset by higher rates on securities. Average cost of funds was flat at 26 basis points.
In comparison to the first quarter of last year, the net interest margin decreased 9 basis points, with earning asset yields down 19 basis points and average cost of funds lower by 10 basis points. The first quarter of 2021 included 19 basis points of PPP fee income.
Loan Portfolio
Total loans ended the quarter at $4.45 billion, representing an increase of $459.0 million compared to the prior quarter. The increase was primarily driven by the addition of Jefferson, which added $426.4 million. PPP loans declined by $11.0 million and ended the period with $5.8 million outstanding, including $0.8 million from Jefferson. Excluding PPP loans and the addition of Jefferson, loans increased $43.6 million, or 1.1%. Growth was primarily within our CRE and C&I sectors, partially offset by the seasonal paydowns in Ag operating lines and elevated commercial payoffs. The pipeline for loan growth continues to look solid across our footprint.
Asset Quality
The Company has always prided itself on a strong credit culture and the asset quality metrics for March 31, 2022 reflect those efforts. The allowance for credit losses at the end of the quarter was 1.31% of total loans. Also at quarter end, the ratio of non-performing loans to total loans was 0.50%, and the allowance for credit losses to non-performing loans was 260.3%. The ratio of nonperforming assets to total assets was 0.41% at quarter end. Nonperforming loans and nonperforming assets increased slightly in the period with the addition of Jefferson. The Company recognized a small amount of net recoveries during the first quarter compared to $1.8 million in net charge-offs during the prior quarter.
Provision expense was recorded in the amount of $3.0 million in the first quarter. The Company recorded $2.0 million for the non-PCD CECL requirement tied to the Jefferson acquisition. In addition to the non-PCD requirement related to the Jefferson acquisition, the Company added $0.9 million in PCD reserve through purchase accounting. In total, the allowance for credit losses increased $3.8 million to $58.5 million in the quarter.
Deposits
Total deposits ended the quarter at $5.49 billion, which represented an increase of $530.8 million from the prior quarter primarily from the addition of Jefferson, which added $558.6 million in deposits at the time the acquisition closed. Excluding Jefferson, total deposits decreased by $27.8 million driven primarily from maturing single-service time deposits. The Company’s average rate on cost of funds was 0.26%, flat compared to last quarter, and down from 0.36% in the first quarter of 2021.
Noninterest Income
Noninterest income for the first quarter of 2022 was $21.1 million compared to $18.1 million in the fourth quarter of 2021. The increase compared to the prior quarter was partially due to the addition of Jefferson. Insurance and wealth management revenues represented 62% of total noninterest income reflecting the diversification of our revenue sources. Wealth management had a strong quarter of farm management fee income on higher commodity prices and farmland sales. Both the wealth management and insurance business are well diversified within their revenue sources and deliver consistent cash flows. Mortgage banking revenues declined by $0.4 million due to the macro conditions with limited housing supply and higher mortgage interest rates. As a percent of noninterest income, mortgage banking was 2.1%.
In comparison to the first quarter of 2021, noninterest income increased $3.3 million, or 18.8%. The year-over-year increase was driven by strong growth in our wealth management and insurance businesses and the addition of Jefferson, partially offset by a $1.0 million decline in mortgage banking revenue.
Noninterest Expenses
Noninterest expense for the first quarter of 2022 totaled $40.4 million compared to $36.4 million in the fourth quarter. The increase was primarily driven by the addition of Jefferson, the producer incentive compensation tied to the strong business unit revenue growth, and overall inflationary pressures. The quarter included $0.6 million of acquisition related costs.
In comparison to the first quarter of 2021, noninterest expenses increased $2.8 million. The increase was primarily due to the addition of Jefferson and Providence, incentive compensation on business unit revenue growth, and overall inflationary pressures.
The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the first quarter 2022 was 58.6% compared to 55.8% in the prior quarter and 61.2% for the same period last year.
Capital Levels and Dividend
The Company’s capital levels remained strong and comfortably above the “well capitalized” levels. Capital levels ended the period as follows:
| Total capital to risk-weighted assets | 15.41% |
| Tier 1 capital to risk-weighted assets | 12.42% |
| Common equity tier 1 capital to risk-weighted assets | 12.03% |
| Leverage ratio | 9.28% |
The Company’s Board of Directors approved a regular quarterly dividend in the amount of $0.22 payable on June 1, 2022 for shareholders of record on May 18, 2022.
While regulatory capital levels were strong, the Company’s tangible book value per common share declined in the period by approximately 11.6%. A portion of this decline was anticipated pursuant to the Jefferson acquisition where we announced an expected 3.0% dilution to tangible book value per common share at closing. However, the rapid move in interest rates during the quarter was the primary driver for the decline as the unrealized loss position on the investment portfolio increased to $74.0 million.
About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., Jefferson Bank & Trust, First Mid Insurance Group, Inc., and First Mid Wealth Management Co. First Mid is a $6.6 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, the risk that integration of the operations of Delta 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 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 | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2022 | 2021 | 2021 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 223,980 | $ | 168,602 | $ | 410,017 | |||||
| Investment securities | 1,472,277 | 1,431,299 | 1,099,532 | ||||||||
| Loans (including loans held for sale) | 4,454,561 | 3,995,523 | 3,943,099 | ||||||||
| Less allowance for credit losses | (58,474 | ) | (54,655 | ) | (55,418 | ) | |||||
| Net loans | 4,396,087 | 3,940,868 | 3,887,681 | ||||||||
| Premises and equipment, net | 89,319 | 81,484 | 86,654 | ||||||||
| Goodwill and intangibles, net | 174,499 | 141,376 | 138,606 | ||||||||
| Bank owned life insurance | 149,041 | 132,375 | 124,925 | ||||||||
| Other assets | 126,803 | 90,578 | 89,855 | ||||||||
| Total assets | $ | 6,632,006 | $ | 5,986,582 | $ | 5,837,270 | |||||
| Liabilities and Stockholders' Equity | |||||||||||
| Deposits: | |||||||||||
| Non-interest bearing | $ | 1,373,881 | $ | 1,246,673 | $ | 1,185,181 | |||||
| Interest bearing | 4,113,424 | 3,709,813 | 3,552,512 | ||||||||
| Total deposits | 5,487,305 | 4,956,486 | 4,737,693 | ||||||||
| Repurchase agreement with customers | 187,326 | 146,268 | 212,503 | ||||||||
| Other borrowings | 126,396 | 86,446 | 116,861 | ||||||||
| Junior subordinated debentures | 19,237 | 19,195 | 19,069 | ||||||||
| Subordinated debt | 94,438 | 94,400 | 94,289 | ||||||||
| Other liabilities | 50,919 | 49,893 | 54,971 | ||||||||
| Total liabilities | 5,965,621 | 5,352,688 | 5,235,386 | ||||||||
| Total stockholders' equity | 666,385 | 633,894 | 601,884 | ||||||||
| Total liabilities and stockholders' equity | $ | 6,632,006 | $ | 5,986,582 | $ | 5,837,270 | |||||
| FIRST MID BANCSHARES, INC. | |||||||
| Condensed Consolidated Statements of Income | |||||||
| (In thousands, except per share data, unaudited) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2022 | 2021 | ||||||
| Interest income: | |||||||
| Interest and fees on loans | $ | 39,908 | $ | 35,886 | |||
| Interest on investment securities | 7,170 | 4,842 | |||||
| Interest on federal funds sold & other deposits | 67 | 88 | |||||
| Total interest income | 47,145 | 40,816 | |||||
| Interest expense: | |||||||
| Interest on deposits | 2,148 | 2,484 | |||||
| Interest on securities sold under agreements to repurchase | 67 | 70 | |||||
| Interest on other borrowings | 276 | 374 | |||||
| Interest on jr. subordinated debentures | 146 | 140 | |||||
| Interest on subordinated debt | 986 | 984 | |||||
| Total interest expense | 3,623 | 4,052 | |||||
| Net interest income | 43,522 | 36,764 | |||||
| Provision for loan losses | 2,952 | 12,136 | |||||
| Net interest income after provision for loan | 40,570 | 24,628 | |||||
| Non-interest income: | |||||||
| Wealth management revenues | 5,975 | 4,926 | |||||
| Insurance commissions | 7,104 | 5,857 | |||||
| Service charges | 2,056 | 1,364 | |||||
| Securities gains, net | 0 | 4 | |||||
| Mortgage banking revenues | 444 | 1,409 | |||||
| ATM/debit card revenue | 2,898 | 2,699 | |||||
| Other | 2,611 | 1,490 | |||||
| Total non-interest income | 21,088 | 17,749 | |||||
| Non-interest expense: | |||||||
| Salaries and employee benefits | 24,302 | 23,487 | |||||
| Net occupancy and equipment expense | 6,155 | 4,970 | |||||
| Net other real estate owned (income) expense | (33 | ) | 78 | ||||
| FDIC insurance | 426 | 452 | |||||
| Amortization of intangible assets | 1,522 | 1,220 | |||||
| Stationary and supplies | 311 | 316 | |||||
| Legal and professional expense | 1,734 | 1,402 | |||||
| Marketing and donations | 873 | 502 | |||||
| Other | 5,098 | 5,173 | |||||
| Total non-interest expense | 40,388 | 37,600 | |||||
| Income before income taxes | 21,270 | 4,777 | |||||
| Income taxes | 4,654 | 668 | |||||
| Net income | $ | 16,616 | $ | 4,109 | |||
| Per Share Information | |||||||
| Basic earnings per common share | $ | 0.86 | $ | 0.24 | |||
| Diluted earnings per common share | 0.86 | 0.24 | |||||
| Weighted average shares outstanding | 19,295,860 | 17,299,927 | |||||
| Diluted weighted average shares outstanding | 19,358,457 | 17,352,947 | |||||
| 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, | ||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | ||||||||||||
| Interest income: | ||||||||||||||||
| Interest and fees on loans | $ | 39,908 | $ | 39,711 | $ | 43,292 | $ | 40,795 | $ | 35,886 | ||||||
| Interest on investment securities | 7,170 | 6,500 | 5,835 | 5,739 | 4,842 | |||||||||||
| Interest on federal funds sold & other deposits | 67 | 88 | 136 | 101 | 88 | |||||||||||
| Total interest income | 47,145 | 46,299 | 49,263 | 46,635 | 40,816 | |||||||||||
| Interest expense: | ||||||||||||||||
| Interest on deposits | 2,148 | 2,057 | 2,234 | 2,262 | 2,484 | |||||||||||
| Interest on securities sold under agreements to repurchase | 67 | 52 | 52 | 57 | 70 | |||||||||||
| Interest on other borrowings | 276 | 336 | 359 | 445 | 374 | |||||||||||
| Interest on jr. subordinated debentures | 146 | 125 | 137 | 139 | 140 | |||||||||||
| Interest on subordinated debt | 986 | 985 | 985 | 985 | 984 | |||||||||||
| Total interest expense | 3,623 | 3,555 | 3,767 | 3,888 | 4,052 | |||||||||||
| Net interest income | 43,522 | 42,744 | 45,496 | 42,747 | 36,764 | |||||||||||
| Provision for loan losses | 2,952 | 2,472 | 1,103 | (560 | ) | 12,136 | ||||||||||
| Net interest income after provision for loan | 40,570 | 40,272 | 44,393 | 43,307 | 24,628 | |||||||||||
| Non-interest income: | ||||||||||||||||
| Wealth management revenues | 5,975 | 6,261 | 4,204 | 5,016 | 4,926 | |||||||||||
| Insurance commissions | 7,104 | 4,150 | 3,932 | 4,988 | 5,857 | |||||||||||
| Service charges | 2,056 | 2,067 | 1,838 | 1,539 | 1,364 | |||||||||||
| Securities gains, net | 0 | 36 | 11 | 73 | 4 | |||||||||||
| Mortgage banking revenues | 444 | 890 | 1,477 | 1,691 | 1,409 | |||||||||||
| ATM/debit card revenue | 2,898 | 3,074 | 3,060 | 3,141 | 2,699 | |||||||||||
| Other | 2,611 | 1,646 | 1,837 | 1,836 | 1,490 | |||||||||||
| Total non-interest income | 21,088 | 18,124 | 16,359 | 18,284 | 17,749 | |||||||||||
| Non-interest expense: | ||||||||||||||||
| Salaries and employee benefits | 24,302 | 20,424 | 21,092 | 24,908 | 23,487 | |||||||||||
| Net occupancy and equipment expense | 6,155 | 5,712 | 5,382 | 5,482 | 4,970 | |||||||||||
| Net other real estate owned (income) expense | (33 | ) | 315 | 1,507 | 1,966 | 78 | ||||||||||
| FDIC insurance | 426 | 406 | 268 | 478 | 452 | |||||||||||
| Amortization of intangible assets | 1,522 | 1,462 | 1,414 | 1,295 | 1,220 | |||||||||||
| Stationary and supplies | 311 | 311 | 299 | 235 | 316 | |||||||||||
| Legal and professional expense | 1,734 | 1,811 | 1,878 | 1,639 | 1,402 | |||||||||||
| Marketing and donations | 873 | 1,915 | 679 | 507 | 502 | |||||||||||
| Other | 5,098 | 4,038 | 3,802 | 9,503 | 5,173 | |||||||||||
| Total non-interest expense | 40,388 | 36,394 | 36,321 | 46,013 | 37,600 | |||||||||||
| Income before income taxes | 21,270 | 22,002 | 24,431 | 15,578 | 4,777 | |||||||||||
| Income taxes | 4,654 | 5,168 | 6,105 | 3,357 | 668 | |||||||||||
| Net income | $ | 16,616 | $ | 16,834 | $ | 18,326 | $ | 12,221 | $ | 4,109 | ||||||
| Per Share Information | ||||||||||||||||
| Basic earnings per common share | $ | 0.86 | $ | 0.93 | $ | 1.01 | $ | 0.68 | $ | 0.24 | ||||||
| Diluted earnings per common share | 0.86 | 0.93 | 1.01 | 0.68 | 0.24 | |||||||||||
| Weighted average shares outstanding | 19,295,860 | 18,086,949 | 18,083,126 | 18,067,190 | 17,299,927 | |||||||||||
| Diluted weighted average shares outstanding | 19,358,457 | 18,135,380 | 18,136,146 | 18,120,210 | 17,352,947 | |||||||||||
| 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, | |||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
| Loan Portfolio | |||||||||||||||||||
| Construction and land development | $ | 131,504 | $ | 145,118 | $ | 180,061 | $ | 141,568 | $ | 165,376 | |||||||||
| Farm real estate loans | 280,993 | 279,272 | 278,788 | 277,362 | 269,652 | ||||||||||||||
| 1-4 Family residential properties | 417,232 | 400,313 | 412,565 | 394,902 | 412,470 | ||||||||||||||
| Multifamily residential properties | 369,926 | 298,942 | 306,911 | 274,910 | 297,984 | ||||||||||||||
| Commercial real estate | 1,965,321 | 1,666,198 | 1,583,255 | 1,480,198 | 1,402,885 | ||||||||||||||
| Loans secured by real estate | 3,164,976 | 2,789,843 | 2,761,580 | 2,568,940 | 2,548,367 | ||||||||||||||
| Agricultural operating loans | 121,708 | 151,484 | 126,534 | 123,101 | 121,070 | ||||||||||||||
| Commercial and industrial loans | 935,454 | 832,008 | 835,860 | 864,554 | 1,017,400 | ||||||||||||||
| Consumer loans | 89,685 | 78,442 | 80,064 | 84,541 | 91,705 | ||||||||||||||
| All other loans | 142,738 | 143,746 | 143,731 | 155,168 | 164,557 | ||||||||||||||
| Total loans | 4,454,561 | 3,995,523 | 3,947,769 | 3,796,304 | 3,943,099 | ||||||||||||||
| Deposit Portfolio | |||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,373,881 | $ | 1,246,673 | $ | 1,242,950 | $ | 1,157,009 | $ | 1,185,181 | |||||||||
| Interest bearing demand deposits | 1,482,556 | 1,452,765 | 1,416,361 | 1,418,717 | 1,268,882 | ||||||||||||||
| Savings deposits | 685,228 | 626,523 | 612,404 | 598,232 | 668,098 | ||||||||||||||
| Money Market | 1,280,129 | 1,068,473 | 1,075,852 | 842,771 | 803,946 | ||||||||||||||
| Time deposits | 665,511 | 562,052 | 640,995 | 722,593 | 811,586 | ||||||||||||||
| Total deposits | 5,487,305 | 4,956,486 | 4,988,562 | 4,739,322 | 4,737,693 | ||||||||||||||
| Asset Quality | |||||||||||||||||||
| Non-performing loans | $ | 22,465 | $ | 22,036 | $ | 27,723 | $ | 30,410 | $ | 31,984 | |||||||||
| Non-performing assets | 27,269 | 27,055 | 33,359 | 37,648 | 45,323 | ||||||||||||||
| Net charge-offs (recoveries) | (5 | ) | 1,800 | 1,717 | 261 | 702 | |||||||||||||
| Allowance for credit losses to non-performing loans | 260.29 | % | 248.03 | % | 194.72 | % | 179.54 | % | 173.27 | % | |||||||||
| Allowance for credit losses to total loans outstanding | 1.31 | % | 1.37 | %1 | 1.39 | %1 | 1.50 | %1 | 1.50 | %1 | |||||||||
| Nonperforming loans to total loans | 0.50 | % | 0.55 | % | 0.70 | % | 0.80 | % | 0.81 | % | |||||||||
| Nonperforming assets to total assets | 0.41 | % | 0.45 | % | 0.55 | % | 0.65 | % | 0.78 | % | |||||||||
| Common Share Data | |||||||||||||||||||
| Common shares outstanding | 20,437,183 | 18,080,303 | 18,083,126 | 18,078,474 | 18,042,256 | ||||||||||||||
| Book value per common share | $ | 32.61 | $ | 35.06 | $ | 34.69 | $ | 34.08 | $ | 33.36 | |||||||||
| Tangible book value per common share(2) | 24.07 | 27.24 | 26.80 | 26.33 | 25.68 | ||||||||||||||
| Market price of stock | 38.49 | 42.79 | 41.06 | 40.51 | 43.93 | ||||||||||||||
| Key Performance Ratios and Metrics | |||||||||||||||||||
| End of period earning assets | $ | 6,038,542 | $ | 5,504,517 | $ | 5,542,199 | $ | 5,269,882 | $ | 5,374,848 | |||||||||
| Average earning assets | 5,817,752 | 5,539,819 | 5,396,239 | 5,380,411 | 4,769,975 | ||||||||||||||
| Average rate on average earning assets (tax equivalent) | 3.33 | % | 3.37 | % | 3.67 | % | 3.52 | % | 3.52 | % | |||||||||
| Average rate on cost of funds | 0.26 | % | 0.26 | % | 0.29 | % | 0.30 | % | 0.36 | % | |||||||||
| Net interest margin (tax equivalent)(2) | 3.07 | % | 3.11 | % | 3.38 | % | 3.22 | % | 3.16 | % | |||||||||
| Return on average assets | 1.05 | % | 1.12 | % | 1.25 | % | 0.84 | % | 0.32 | % | |||||||||
| Return on average common equity | 9.95 | % | 10.74 | % | 11.67 | % | 8.00 | % | 2.78 | % | |||||||||
| Efficiency ratio (tax equivalent)(2) | 58.59 | % | 55.75 | % | 52.73 | % | 59.91 | % | 61.20 | % | |||||||||
| Full-time equivalent employees | 1,050 | 965 | 960 | 960 | 983 | ||||||||||||||
| 1Excludes Paycheck Protection Program loans. | |||||||||||||||||||
| 2Non-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 31, 2022 | |||||||||
| QTD Average | Average | ||||||||
| Balance | Interest | Rate | |||||||
| INTEREST EARNING ASSETS | |||||||||
| Interest bearing deposits | $ | 135,176 | $ | 55 | 0.16 | % | |||
| Federal funds sold | 3,714 | 1 | 0.13 | % | |||||
| Certificates of deposits investments | 2,238 | 11 | 2.04 | % | |||||
| Investment Securities: | |||||||||
| Taxable (total less municipals) | 1,111,109 | 4,905 | 1.77 | % | |||||
| Tax-exempt (Municipals) | 382,909 | 2,867 | 2.99 | % | |||||
| Loans (net of unearned income) | 4,182,606 | 40,076 | 3.88 | % | |||||
| Total interest earning assets | 5,817,752 | 47,915 | 3.33 | % | |||||
| NONEARNING ASSETS | |||||||||
| Cash and due from banks | 114,257 | ||||||||
| Premises and equipment | 83,883 | ||||||||
| Other nonearning assets | 367,966 | ||||||||
| Allowance for loan losses | (58,462 | ) | |||||||
| Total assets | $ | 6,325,396 | |||||||
| INTEREST BEARING LIABILITIES | |||||||||
| Demand deposits | $ | 2,610,573 | $ | 1,321 | 0.21 | % | |||
| Savings deposits | 658,038 | 119 | 0.07 | % | |||||
| Time deposits | 615,142 | 708 | 0.47 | % | |||||
| Total interest bearing deposits | 3,883,753 | 2,148 | 0.22 | % | |||||
| Repurchase agreements | 173,491 | 67 | 0.16 | % | |||||
| FHLB advances | 115,852 | 276 | 0.97 | % | |||||
| Federal funds purchased | 44 | - | 0.00 | % | |||||
| Subordinated debt | 94,413 | 986 | 4.24 | % | |||||
| Jr. subordinated debentures | 19,210 | 146 | 3.08 | % | |||||
| Total borrowings | 403,010 | 1,475 | 1.48 | % | |||||
| Total interest bearing liabilities | 4,286,763 | 3,623 | 0.34 | % | |||||
| NONINTEREST BEARING LIABILITIES | |||||||||
| Demand deposits | 1,329,554 | Average cost of funds | 0.26 | % | |||||
| Other liabilities | 41,345 | ||||||||
| Stockholders' equity | 667,734 | ||||||||
| Total liabilities & stockholders' equity | $ | 6,325,396 | |||||||
| Net Interest Earnings / Spread | $ | 44,292 | 2.99 | % | |||||
| Impact of Non-Interest Bearing Funds | 0.08 | % | |||||||
| 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 | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
| Net interest income as reported | $ | 43,522 | $ | 42,744 | $ | 45,496 | $ | 42,747 | $ | 36,764 | |||||||||
| Net interest income, (tax equivalent) | 44,292 | 43,492 | 46,165 | 43,359 | 37,359 | ||||||||||||||
| Average earning assets | 5,817,752 | 5,539,819 | 5,396,239 | 5,380,411 | 4,769,975 | ||||||||||||||
| Net interest margin (tax equivalent) | 3.07 | % | 3.11 | % | 3.38 | % | 3.22 | % | 3.16 | % | |||||||||
| Common stockholder's equity | $ | 666,385 | $ | 633,894 | $ | 627,225 | $ | 616,066 | $ | 601,884 | |||||||||
| Goodwill and intangibles, net | 174,499 | 141,376 | 142,656 | 139,995 | 138,606 | ||||||||||||||
| Common shares outstanding | 20,437 | 18,080 | 18,083 | 18,078 | 18,042 | ||||||||||||||
| Tangible Book Value per common share | $ | 24.07 | $ | 27.24 | $ | 26.80 | $ | 26.33 | $ | 25.68 | |||||||||
| 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, | |||||||||||||||
| 2022 | 2021 | 2021 | 2021 | 2021 | |||||||||||||||
| Adjusted earnings Reconciliation | |||||||||||||||||||
| Net Income - GAAP | $ | 16,616 | $ | 16,834 | $ | 18,326 | $ | 12,221 | $ | 4,109 | |||||||||
| Adjustments (post-tax):(1) | |||||||||||||||||||
| Acquisition ACL on non-PCD assets in provision expense | 1,580 | - | - | - | 9,072 | ||||||||||||||
| Branch optimization costs | - | - | 999 | 960 | - | ||||||||||||||
| Integration and acquisition expenses | 469 | 225 | 348 | 4,634 | 2,036 | ||||||||||||||
| Total non-recurring adjustments (non-GAAP) | $ | 2,049 | $ | 225 | $ | 1,347 | $ | 5,595 | $ | 11,108 | |||||||||
| Adjusted earnings - non-GAAP | $ | 18,665 | $ | 17,059 | $ | 19,673 | $ | 17,816 | $ | 15,217 | |||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 0.96 | $ | 0.94 | $ | 1.08 | $ | 0.98 | $ | 0.88 | |||||||||
| Efficiency Ratio Reconciliation | |||||||||||||||||||
| Noninterest expense - GAAP | $ | 40,388 | $ | 36,394 | $ | 36,321 | $ | 46,013 | $ | 37,600 | |||||||||
| Other real estate owned property income (expense) | 33 | (315 | ) | (242 | ) | (751 | ) | (78 | ) | ||||||||||
| Amortization of intangibles | (1,522 | ) | (1,462 | ) | (1,414 | ) | (1,295 | ) | (1,220 | ) | |||||||||
| Branch optimization costs | - | - | (1,265 | ) | (1,215 | ) | - | ||||||||||||
| integration and acquisition expenses | (594 | ) | (285 | ) | (440 | ) | (5,866 | ) | (2,578 | ) | |||||||||
| Adjusted noninterest expense (non-GAAP) | $ | 38,305 | $ | 34,332 | $ | 32,960 | $ | 36,886 | $ | 33,724 | |||||||||
| Net interest income -GAAP | $ | 43,522 | $ | 42,744 | $ | 45,496 | $ | 42,747 | $ | 36,764 | |||||||||
| Effect of tax-exempt income(1) | 770 | 748 | 669 | 612 | 595 | ||||||||||||||
| Adjusted net interest income (non-GAAP) | $ | 44,292 | $ | 43,492 | $ | 46,165 | $ | 43,359 | $ | 37,359 | |||||||||
| Noninterest income - GAAP | $ | 21,088 | $ | 18,124 | $ | 16,359 | $ | 18,284 | $ | 17,749 | |||||||||
| Gain on sales of investment securities, net | 0 | (36 | ) | (11 | ) | (73 | ) | (4 | ) | ||||||||||
| Adjusted noninterest income (non-GAAP) | $ | 21,088 | $ | 18,088 | $ | 16,348 | $ | 18,211 | $ | 17,745 | |||||||||
| Adjusted total revenue (non-GAAP) | $ | 65,380 | $ | 61,580 | $ | 62,513 | $ | 61,570 | $ | 55,104 | |||||||||
| Efficiency ratio (non-GAAP) | 58.59 | % | 55.75 | % | 52.73 | % | 59.91 | % | 61.20 | % | |||||||||
| (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. | |||||||||||||||||||
