First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today
announced its financial results for the quarter ended March 31,
2024.
Highlights
- Net income of $20.5 million, or $0.86 diluted EPS
- Adjusted net income (non-GAAP) of $22.3 million, or $0.93
diluted EPS
- Strong asset quality performance with minimal net charge offs
and lower classifieds
- Insurance revenues drive record high quarter of noninterest
income
- Named Top Workplace by USA Today
- Board of Directors declares regular quarterly dividend of $0.23
per share
“Coming off an eventful year for our industry, I am pleased with
the way we started 2024,” said Joe Dively, Chairman and Chief
Executive Officer. “The benefits of adding Blackhawk are shining
through with a stable core margin, significant liquidity, and
continued asset quality strength. Our revenue diversification
continues to be a differentiator for us as we achieved a new record
high in noninterest income on the growth and seasonality in
insurance revenues. Finally, I am extremely proud of
the national recognition to be named a top workplace by USA Today.
We understand and foster an environment where we prioritize a
culture of engagement where our employees feel valued, empowered,
and connected to a broader mission of serving our customers and
communities.”
Net Interest Income Net interest income for the
first quarter of 2024 decreased by $2.0 million, or 3.5% compared
to the fourth quarter of 2023. The decline was primarily the result
of lower loan balances and less accretion income. Interest income
declined by $2.3 million in the quarter, which included a decline
of $0.9 million in accretion income. Accretion income in the period
totaled $3.6 million. Interest expense declined $0.3 million in the
quarter primarily driven by less FHLB borrowings outstanding on an
increase in overall liquidity position.
In comparison to the first quarter of 2023, net interest income
increased $12.3 million, or 28.4%. The increase was
primarily driven by the addition of Blackhawk. For the same period,
interest income increased by $24.0 million, while interest expense
increased $11.7 million.
Net Interest MarginNet interest margin, on a
tax equivalent basis (non-GAAP), was 3.25% for the first quarter of
2024. While this was an 8 basis point decline compared to the prior
quarter, the margin only declined by 2 basis points when the
decline of $0.9 million in accretion income is
considered. Earning asset yields declined by 2 basis
points and the average cost of funds increased 6 basis
points.
In comparison to the first quarter of last year, the net
interest margin increased 31 basis points, with an average earning
asset increase of 84 basis points versus the average cost of funds
increase of 53 basis points.
Loan Portfolio Total loans ended the quarter at
$5.50 billion, representing a decrease of $81.3 million from the
prior quarter. The declines were spread across all categories,
except for Ag operating loans which increased $16.9
million. The portfolio experienced larger than normal
paydowns of lines in the C&I sector during the quarter. The
loan portfolio continues to be well diversified both geographically
and by industry. Non-medical office exposure is
approximately 3.7% of the portfolio with minimal exposure to urban
markets.
Asset Quality The first quarter was another
strong period with respect to the Company’s asset quality metrics.
The allowance for credit losses (“ACL”) ended the period at $67.9
million and the ACL to total loans ratio increased to 1.24%. In
addition to the ACL, an unearned discount of $46.3 million remains
at quarter end. Provision expense was recorded as a credit in the
amount of $0.4 million with net charge offs of $0.4 million in the
quarter. Also, at the end of the first quarter, the ratio of
non-performing loans to total loans was 0.36%, and the ACL to
non-performing loans was 338.6%. The ratio of
nonperforming assets to total assets was 0.28% and nonperforming
loans were $20.1 million at quarter end. Special mention loans
declined $8.4 million in the quarter to $65.6 million and
substandard loans increased $0.4 million to $29.3 million.
DepositsTotal deposits ended the quarter at
$6.24 billion, which represented an increase of $119.3 million from
the prior quarter. Noninterest bearing deposits increased by $50.0
million and interest-bearing demand deposits increased by $137.6
million in the period. Approximately $50.0 million of the total
increase was short-term normal cash flow needs of certain customers
that came in late in the quarter and was disbursed early in the
second quarter. With the Company’s strong liquidity
position, it has been able to manage the pressure on the funding
costs with a focus on relationship pricing and allowing other
funding, such as brokered CDs, to roll off.
Noninterest IncomeNoninterest income for the
first quarter of 2024 was a record high of $24.5 million compared
to $21.8 million in the fourth quarter of 2023. The
increase was primarily driven by a new high in insurance revenues,
which are also seasonally highest in the first quarter, with an
increase of $3.8 million. Wealth management revenues increased $0.3
million and assets under management increased to $6.2 billion.
Mortgage banking and all other banking fees declined in the
quarter.
In comparison to the first quarter of 2023, noninterest income
increased $2.0 million, or 8.9%, due to a combination of organic
growth and the addition of Blackhawk. Insurance
revenues increased by $0.7 million, or 8.7% compared to the first
quarter of 2024.
Noninterest Expenses
Noninterest expense for the first quarter of 2024 totaled $53.4
million compared to $57.0 million in the prior quarter. The current
quarter included $2.3 million of nonrecurring integration related
costs, which was a decrease of $3.3 million from the prior quarter.
In addition, the Company recorded a credit for $0.9 million in
debit card fees for a negotiated agreement with its primary
provider.
In comparison to the first quarter of 2023, noninterest expenses
increased $11.8 million. The increase was primarily driven by the
addition of Blackhawk. Nonrecurring costs were $2.3 million in the
current quarter and $0.2 million in the same quarter last year.
The Company’s efficiency ratio, as adjusted in the non-GAAP
reconciliation table herein, for the first quarter 2024 was 59.1%
compared to 58.9% in the prior quarter and 59.0% for the same
period last year.
Capital Levels and DividendThe Company’s
capital levels remained strong and above the “well capitalized”
levels. Capital levels ended the period as follows:
Total capital
to risk-weighted assets |
|
15.35% |
Tier 1 capital to risk-weighted assets |
|
12.46% |
Common equity tier 1 capital to risk-weighted assets |
|
12.06% |
Leverage ratio |
|
9.71% |
Tangible book value per common share increased in the period to
$22.49 with earnings growth more than offsetting a negative $11.2
million impact to accumulated other comprehensive income (“AOCI”)
from an increase in the unrealized loss position in the bond
portfolio.
The Company’s Board of Directors approved a regular quarterly
dividend of $0.23 payable on May 31, 2024, for shareholders of
record on May 15, 2024.
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 $7.7 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, Texas, and Wisconsin 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 159 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; and the impact of the global COVID-19
pandemic on First Mid’s businesses. 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: Austin FrankSVP, Shareholder
Relations217-258-5522 afrank@firstmid.com
Matt SmithChief Financial
Officer217-258-1528msmith@firstmid.com
– Tables Follow –
|
|
|
FIRST MID
BANCSHARES, INC. |
|
|
Condensed
Consolidated Balance Sheets |
|
|
(In thousands,
unaudited) |
|
|
As
of |
|
|
|
|
March
31, |
|
December
31, |
|
March
31, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
355,701 |
|
|
$ |
143,064 |
|
|
$ |
169,134 |
|
Investment
securities |
|
|
1,149,752 |
|
|
|
1,179,402 |
|
|
|
1,217,754 |
|
Loans
(including loans held for sale) |
|
|
5,499,295 |
|
|
|
5,580,565 |
|
|
|
4,760,631 |
|
Less
allowance for credit losses |
|
|
(67,936 |
) |
|
|
(68,675 |
) |
|
|
(58,223 |
) |
Net
loans |
|
|
5,431,359 |
|
|
|
5,511,890 |
|
|
|
4,702,408 |
|
Premises and
equipment, net |
|
|
101,666 |
|
|
|
101,396 |
|
|
|
90,178 |
|
Goodwill and
intangibles, net |
|
|
260,699 |
|
|
|
264,231 |
|
|
|
168,373 |
|
Bank Owned
Life Insurance |
|
|
167,247 |
|
|
|
166,125 |
|
|
|
151,366 |
|
Other
assets |
|
|
211,822 |
|
|
|
220,686 |
|
|
|
183,637 |
|
Total
assets |
|
$ |
7,678,246 |
|
|
$ |
7,586,794 |
|
|
$ |
6,682,850 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
Non-interest
bearing |
|
$ |
1,448,299 |
|
|
$ |
1,398,234 |
|
|
$ |
1,262,181 |
|
Interest
bearing |
|
|
4,794,637 |
|
|
|
4,725,425 |
|
|
|
3,768,597 |
|
Total
deposits |
|
|
6,242,936 |
|
|
|
6,123,659 |
|
|
|
5,030,778 |
|
Repurchase
agreements with customers |
|
|
210,719 |
|
|
|
213,721 |
|
|
|
228,664 |
|
Other
borrowings |
|
|
238,761 |
|
|
|
263,787 |
|
|
|
595,021 |
|
Junior
subordinated debentures |
|
|
24,113 |
|
|
|
24,058 |
|
|
|
19,406 |
|
Subordinated
debt |
|
|
106,862 |
|
|
|
106,755 |
|
|
|
94,593 |
|
Other
liabilities |
|
|
56,903 |
|
|
|
61,610 |
|
|
|
52,523 |
|
Total liabilities |
|
|
6,880,294 |
|
|
|
6,793,590 |
|
|
|
6,020,985 |
|
|
|
|
|
|
|
|
Total stockholders' equity |
|
|
797,952 |
|
|
|
793,204 |
|
|
|
661,865 |
|
Total
liabilities and stockholders' equity |
|
$ |
7,678,246 |
|
|
$ |
7,586,794 |
|
|
$ |
6,682,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
FIRST MID
BANCSHARES, INC. |
Condensed
Consolidated Statements of Income |
(In thousands,
except per share data, unaudited) |
|
|
|
|
|
|
|
Three Months
Ended |
|
|
March
31, |
|
|
|
2024 |
|
|
|
2023 |
|
Interest income: |
|
|
|
|
Interest and
fees on loans |
|
$ |
77,823 |
|
|
$ |
56,236 |
|
Interest on
investment securities |
|
|
7,405 |
|
|
|
7,127 |
|
Interest on
federal funds sold & other deposits |
|
|
2,444 |
|
|
|
308 |
|
Total interest income |
|
|
87,672 |
|
|
|
63,671 |
|
Interest expense: |
|
|
|
|
Interest on
deposits |
|
|
26,096 |
|
|
|
12,767 |
|
Interest on
securities sold under agreements to repurchase |
|
|
2,056 |
|
|
|
1,463 |
|
Interest on
other borrowings |
|
|
2,314 |
|
|
|
4,883 |
|
Interest on
jr. subordinated debentures |
|
|
542 |
|
|
|
379 |
|
Interest on
subordinated debt |
|
|
1,194 |
|
|
|
988 |
|
Total interest expense |
|
|
32,202 |
|
|
|
20,480 |
|
Net
interest income |
|
|
55,470 |
|
|
|
43,191 |
|
Provision
for credit losses |
|
|
(357 |
) |
|
|
(817 |
) |
Net
interest income after provision for loan |
|
|
55,827 |
|
|
|
44,008 |
|
Non-interest income: |
|
|
|
|
Wealth
management revenues |
|
|
5,322 |
|
|
|
5,514 |
|
Insurance
commissions |
|
|
9,213 |
|
|
|
8,480 |
|
Service
charges |
|
|
2,956 |
|
|
|
2,203 |
|
Net
securities gains/(losses) |
|
|
0 |
|
|
|
(46 |
) |
Mortgage
banking revenues |
|
|
706 |
|
|
|
150 |
|
ATM/debit
card revenue |
|
|
4,055 |
|
|
|
3,083 |
|
Other |
|
|
2,226 |
|
|
|
3,095 |
|
Total
non-interest income |
|
|
24,478 |
|
|
|
22,479 |
|
Non-interest expense: |
|
|
|
|
Salaries and
employee benefits |
|
|
30,448 |
|
|
|
26,071 |
|
Net
occupancy and equipment expense |
|
|
7,560 |
|
|
|
6,005 |
|
Net other
real estate owned (income) expense |
|
|
(21 |
) |
|
|
133 |
|
FDIC
insurance |
|
|
869 |
|
|
|
463 |
|
Amortization
of intangible assets |
|
|
3,497 |
|
|
|
1,522 |
|
Stationary
and supplies |
|
|
391 |
|
|
|
292 |
|
Legal and
professional expense |
|
|
2,449 |
|
|
|
1,690 |
|
ATM/debit
card expense |
|
|
1,191 |
|
|
|
1,223 |
|
Marketing
and donations |
|
|
862 |
|
|
|
654 |
|
Other |
|
|
6,116 |
|
|
|
3,524 |
|
Total
non-interest expense |
|
|
53,362 |
|
|
|
41,577 |
|
Income
before income taxes |
|
|
26,943 |
|
|
|
24,910 |
|
Income
taxes |
|
|
6,440 |
|
|
|
5,730 |
|
Net
income |
|
$ |
20,503 |
|
|
$ |
19,180 |
|
|
|
|
|
|
Per
Share Information |
|
|
|
|
Basic
earnings per common share |
|
$ |
0.86 |
|
|
$ |
0.94 |
|
Diluted
earnings per common share |
|
|
0.86 |
|
|
|
0.93 |
|
|
|
|
|
|
Weighted
average shares outstanding |
|
|
23,872,731 |
|
|
|
20,492,254 |
|
Diluted
weighted average shares outstanding |
|
|
23,960,335 |
|
|
|
20,563,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2024 |
|
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
|
2023 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
Interest and
fees on loans |
|
$ |
77,823 |
|
|
$ |
78,676 |
|
$ |
69,143 |
|
$ |
58,368 |
|
|
$ |
56,236 |
|
Interest on
investment securities |
|
|
7,405 |
|
|
|
8,515 |
|
|
9,284 |
|
|
7,193 |
|
|
|
7,127 |
|
Interest on
federal funds sold & other deposits |
|
|
2,444 |
|
|
|
2,736 |
|
|
2,011 |
|
|
569 |
|
|
|
308 |
|
Total interest income |
|
|
87,672 |
|
|
|
89,927 |
|
|
80,438 |
|
|
66,130 |
|
|
|
63,671 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
Interest on
deposits |
|
|
26,096 |
|
|
|
25,900 |
|
|
22,047 |
|
|
16,580 |
|
|
|
12,767 |
|
Interest on
securities sold under agreements to repurchase |
|
|
2,056 |
|
|
|
1,754 |
|
|
1,625 |
|
|
1,723 |
|
|
|
1,463 |
|
Interest on
other borrowings |
|
|
2,314 |
|
|
|
3,073 |
|
|
4,749 |
|
|
4,084 |
|
|
|
4,883 |
|
Interest on
jr. subordinated debentures |
|
|
542 |
|
|
|
545 |
|
|
545 |
|
|
390 |
|
|
|
379 |
|
Interest on
subordinated debt |
|
|
1,194 |
|
|
|
1,193 |
|
|
1,029 |
|
|
986 |
|
|
|
988 |
|
Total interest expense |
|
|
32,202 |
|
|
|
32,465 |
|
|
29,995 |
|
|
23,763 |
|
|
|
20,480 |
|
Net
interest income |
|
|
55,470 |
|
|
|
57,462 |
|
|
50,443 |
|
|
42,367 |
|
|
|
43,191 |
|
Provision
for credit losses |
|
|
(357 |
) |
|
|
552 |
|
|
5,911 |
|
|
458 |
|
|
|
(817 |
) |
Net
interest income after provision for loan |
|
|
55,827 |
|
|
|
56,910 |
|
|
44,532 |
|
|
41,909 |
|
|
|
44,008 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
Wealth
management revenues |
|
|
5,322 |
|
|
|
4,998 |
|
|
4,940 |
|
|
5,341 |
|
|
|
5,514 |
|
Insurance
commissions |
|
|
9,213 |
|
|
|
5,398 |
|
|
5,199 |
|
|
5,737 |
|
|
|
8,480 |
|
Service
charges |
|
|
2,956 |
|
|
|
3,298 |
|
|
2,994 |
|
|
2,386 |
|
|
|
2,203 |
|
Securities
gains, net |
|
|
0 |
|
|
|
46 |
|
|
3,389 |
|
|
(6 |
) |
|
|
(46 |
) |
Mortgage
banking revenues |
|
|
706 |
|
|
|
954 |
|
|
846 |
|
|
332 |
|
|
|
150 |
|
ATM/debit
card revenue |
|
|
4,055 |
|
|
|
4,233 |
|
|
3,766 |
|
|
3,265 |
|
|
|
3,083 |
|
Other |
|
|
2,226 |
|
|
|
2,841 |
|
|
1,919 |
|
|
2,431 |
|
|
|
3,095 |
|
Total
non-interest income |
|
|
24,478 |
|
|
|
21,768 |
|
|
23,053 |
|
|
19,486 |
|
|
|
22,479 |
|
Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
|
|
30,448 |
|
|
|
29,925 |
|
|
25,422 |
|
|
23,544 |
|
|
|
26,071 |
|
Net
occupancy and equipment expense |
|
|
7,560 |
|
|
|
7,977 |
|
|
6,929 |
|
|
6,035 |
|
|
|
6,005 |
|
Net other
real estate owned (income) expense |
|
|
(21 |
) |
|
|
800 |
|
|
902 |
|
|
27 |
|
|
|
133 |
|
FDIC
insurance |
|
|
869 |
|
|
|
1,015 |
|
|
785 |
|
|
1,076 |
|
|
|
463 |
|
Amortization
of intangible assets |
|
|
3,497 |
|
|
|
3,560 |
|
|
2,568 |
|
|
1,477 |
|
|
|
1,522 |
|
Stationary
and supplies |
|
|
391 |
|
|
|
404 |
|
|
335 |
|
|
315 |
|
|
|
292 |
|
Legal and
professional expense |
|
|
2,449 |
|
|
|
2,065 |
|
|
1,844 |
|
|
1,780 |
|
|
|
1,690 |
|
ATM/debit
card expense |
|
|
1,191 |
|
|
|
1,332 |
|
|
1,751 |
|
|
1,016 |
|
|
|
1,223 |
|
Marketing
and donations |
|
|
862 |
|
|
|
679 |
|
|
764 |
|
|
908 |
|
|
|
654 |
|
Other |
|
|
6,116 |
|
|
|
9,268 |
|
|
5,796 |
|
|
3,864 |
|
|
|
3,524 |
|
Total
non-interest expense |
|
|
53,362 |
|
|
|
57,025 |
|
|
47,096 |
|
|
40,042 |
|
|
|
41,577 |
|
Income
before income taxes |
|
|
26,943 |
|
|
|
21,653 |
|
|
20,489 |
|
|
21,353 |
|
|
|
24,910 |
|
Income
taxes |
|
|
6,440 |
|
|
|
3,582 |
|
|
5,372 |
|
|
4,786 |
|
|
|
5,730 |
|
Net
income |
|
$ |
20,503 |
|
|
$ |
18,071 |
|
$ |
15,117 |
|
$ |
16,567 |
|
|
$ |
19,180 |
|
|
|
|
|
|
|
|
|
|
|
|
Per
Share Information |
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.86 |
|
|
$ |
0.76 |
|
$ |
0.68 |
|
$ |
0.81 |
|
|
$ |
0.94 |
|
Diluted
earnings per common share |
|
|
0.86 |
|
|
|
0.76 |
|
|
0.68 |
|
|
0.80 |
|
|
|
0.93 |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
|
23,872,731 |
|
|
|
23,837,853 |
|
|
22,220,438 |
|
|
20,528,717 |
|
|
|
20,492,254 |
|
Diluted
weighted average shares outstanding |
|
|
23,960,335 |
|
|
|
23,921,758 |
|
|
22,319,334 |
|
|
20,628,239 |
|
|
|
20,563,972 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Loan Portfolio |
|
|
|
|
|
|
|
|
|
|
Construction
and land development |
|
$ |
186,851 |
|
|
$ |
205,077 |
|
|
$ |
189,206 |
|
|
$ |
151,574 |
|
|
$ |
159,157 |
|
Farm real
estate loans |
|
|
388,941 |
|
|
|
391,132 |
|
|
|
399,834 |
|
|
|
392,220 |
|
|
|
401,957 |
|
1-4 Family
residential properties |
|
|
518,641 |
|
|
|
542,469 |
|
|
|
531,699 |
|
|
|
418,932 |
|
|
|
424,545 |
|
Multifamily
residential properties |
|
|
312,758 |
|
|
|
319,129 |
|
|
|
327,067 |
|
|
|
303,482 |
|
|
|
301,808 |
|
Commercial
real estate |
|
|
2,396,092 |
|
|
|
2,384,704 |
|
|
|
2,392,834 |
|
|
|
2,056,529 |
|
|
|
2,003,647 |
|
Loans secured by real estate |
|
|
3,803,283 |
|
|
|
3,842,511 |
|
|
|
3,840,640 |
|
|
|
3,322,737 |
|
|
|
3,291,114 |
|
Agricultural
operating loans |
|
|
213,217 |
|
|
|
196,272 |
|
|
|
179,447 |
|
|
|
148,318 |
|
|
|
146,847 |
|
Commercial
and industrial loans |
|
|
1,227,906 |
|
|
|
1,266,159 |
|
|
|
1,242,653 |
|
|
|
1,094,522 |
|
|
|
1,078,021 |
|
Consumer
loans |
|
|
79,569 |
|
|
|
91,014 |
|
|
|
99,542 |
|
|
|
80,241 |
|
|
|
88,430 |
|
All other
loans |
|
|
175,320 |
|
|
|
184,609 |
|
|
|
177,783 |
|
|
|
167,598 |
|
|
|
156,219 |
|
Total loans |
|
|
5,499,295 |
|
|
|
5,580,565 |
|
|
|
5,540,065 |
|
|
|
4,813,416 |
|
|
|
4,760,631 |
|
|
|
|
|
|
|
|
|
|
|
|
Deposit Portfolio |
|
|
|
|
|
|
|
|
|
|
Non-interest
bearing demand deposits |
|
$ |
1,448,299 |
|
|
$ |
1,398,234 |
|
|
$ |
1,389,022 |
|
|
$ |
1,171,047 |
|
|
$ |
1,262,181 |
|
Interest
bearing demand deposits |
|
|
1,974,857 |
|
|
|
1,837,296 |
|
|
|
1,940,162 |
|
|
|
1,477,765 |
|
|
|
1,419,791 |
|
Savings
deposits |
|
|
704,777 |
|
|
|
710,586 |
|
|
|
734,377 |
|
|
|
602,523 |
|
|
|
639,691 |
|
Money
Market |
|
|
1,107,177 |
|
|
|
1,129,950 |
|
|
|
1,161,957 |
|
|
|
923,259 |
|
|
|
878,452 |
|
Time
deposits |
|
|
1,007,826 |
|
|
|
1,047,593 |
|
|
|
1,120,806 |
|
|
|
1,044,991 |
|
|
|
830,663 |
|
Total deposits |
|
|
6,242,936 |
|
|
|
6,123,659 |
|
|
|
6,346,324 |
|
|
|
5,219,585 |
|
|
|
5,030,778 |
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality |
|
|
|
|
|
|
|
|
|
|
Non-performing loans |
|
$ |
20,064 |
|
|
$ |
20,128 |
|
|
$ |
21,269 |
|
|
$ |
18,637 |
|
|
$ |
15,163 |
|
Non-performing assets |
|
|
21,471 |
|
|
|
21,292 |
|
|
|
23,565 |
|
|
|
22,615 |
|
|
|
19,225 |
|
Net
charge-offs (recoveries) |
|
|
381 |
|
|
|
118 |
|
|
|
181 |
|
|
|
(38 |
) |
|
|
53 |
|
Allowance
for credit losses to non-performing loans |
|
|
338.60 |
% |
|
|
341.19 |
% |
|
|
320.85 |
% |
|
|
315.07 |
% |
|
|
383.98 |
% |
Allowance
for credit losses to total loans outstanding |
|
|
1.24 |
% |
|
|
1.23 |
% |
|
|
1.23 |
% |
|
|
1.22 |
% |
|
|
1.22 |
% |
Nonperforming loans to total loans |
|
|
0.36 |
% |
|
|
0.36 |
% |
|
|
0.38 |
% |
|
|
0.39 |
% |
|
|
0.32 |
% |
Nonperforming assets to total assets |
|
|
0.28 |
% |
|
|
0.28 |
% |
|
|
0.30 |
% |
|
|
0.34 |
% |
|
|
0.29 |
% |
Special
Mention loans |
|
|
65,693 |
|
|
|
74,050 |
|
|
|
73,732 |
|
|
|
40,687 |
|
|
|
47,022 |
|
Substandard
and Doubtful loans |
|
|
29,296 |
|
|
|
28,945 |
|
|
|
30,575 |
|
|
|
28,255 |
|
|
|
29,931 |
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Data |
|
|
|
|
|
|
|
|
|
|
Common
shares outstanding |
|
|
23,888,929 |
|
|
|
23,827,137 |
|
|
|
23,830,038 |
|
|
|
20,528,192 |
|
|
|
20,519,717 |
|
Book value
per common share |
|
$ |
33.40 |
|
|
$ |
33.29 |
|
|
$ |
30.97 |
|
|
$ |
32.18 |
|
|
$ |
32.26 |
|
Tangible
book value per common share (1) |
|
|
22.49 |
|
|
|
22.20 |
|
|
|
19.73 |
|
|
|
23.48 |
|
|
|
24.05 |
|
Tangible
book value per common share excluding other comprehensive income at
period end (1) |
|
|
28.67 |
|
|
|
27.93 |
|
|
|
27.24 |
|
|
|
30.87 |
|
|
|
30.77 |
|
Market price
of stock |
|
|
32.68 |
|
|
|
34.66 |
|
|
|
26.56 |
|
|
|
24.14 |
|
|
|
27.22 |
|
|
|
|
|
|
|
|
|
|
|
|
Key Performance Ratios and Metrics |
|
|
|
|
|
|
|
|
|
|
End of
period earning assets |
|
$ |
6,923,742 |
|
|
$ |
6,780,160 |
|
|
$ |
7,007,282 |
|
|
$ |
6,023,553 |
|
|
$ |
5,995,674 |
|
Average
earning assets |
|
|
6,884,855 |
|
|
|
6,948,309 |
|
|
|
6,593,781 |
|
|
|
6,049,626 |
|
|
|
6,052,264 |
|
Average rate
on average earning assets (tax equivalent) |
|
|
5.16 |
% |
|
|
5.18 |
% |
|
|
4.89 |
% |
|
|
4.43 |
% |
|
|
4.32 |
% |
Average rate
on cost of funds |
|
|
1.91 |
% |
|
|
1.85 |
% |
|
|
1.83 |
% |
|
|
1.59 |
% |
|
|
1.38 |
% |
Net interest
margin (tax equivalent) (1) |
|
|
3.25 |
% |
|
|
3.33 |
% |
|
|
3.06 |
% |
|
|
2.84 |
% |
|
|
2.94 |
% |
Return on
average assets |
|
|
1.07 |
% |
|
|
0.93 |
% |
|
|
0.90 |
% |
|
|
0.99 |
% |
|
|
1.15 |
% |
Adjusted
return on average assets (1) |
|
|
1.17 |
% |
|
|
1.16 |
% |
|
|
0.94 |
% |
|
|
1.03 |
% |
|
|
1.18 |
% |
Return on
average common equity |
|
|
10.37 |
% |
|
|
9.76 |
% |
|
|
8.70 |
% |
|
|
10.07 |
% |
|
|
12.11 |
% |
Adjusted
return on average common equity (1) |
|
|
11.28 |
% |
|
|
12.11 |
% |
|
|
9.82 |
% |
|
|
10.42 |
% |
|
|
11.92 |
% |
Efficiency
ratio (tax equivalent) (1) |
|
|
59.09 |
% |
|
|
58.91 |
% |
|
|
58.60 |
% |
|
|
60.37 |
% |
|
|
59.01 |
% |
Full-time
equivalent employees |
|
|
1,188 |
|
|
|
1,187 |
|
|
|
1,224 |
|
|
|
995 |
|
|
|
988 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 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 31, 2024 |
|
QTD Average |
|
|
|
Average |
|
Balance |
|
Interest |
|
Rate |
INTEREST
EARNING ASSETS |
|
|
|
|
|
Interest bearing deposits |
$ |
173,365 |
|
|
$ |
2,407 |
|
5.58 |
% |
Federal
funds sold |
|
1,094 |
|
|
|
17 |
|
6.25 |
% |
Certificates
of deposits investments |
|
1,545 |
|
|
|
20 |
|
5.21 |
% |
Investment
Securities: |
|
|
|
|
|
Taxable (total less municipals) |
|
904,451 |
|
|
|
5,470 |
|
2.42 |
% |
Tax-exempt (Municipals) |
|
280,215 |
|
|
|
2,450 |
|
3.50 |
% |
Loans (net
of unearned income) |
|
5,524,185 |
|
|
|
77,924 |
|
5.67 |
% |
|
|
|
|
|
|
Total
interest earning assets |
|
6,884,855 |
|
|
|
88,288 |
|
5.16 |
% |
|
|
|
|
|
|
NONEARNING
ASSETS |
|
|
|
|
|
Cash and due
from banks |
|
102,922 |
|
|
|
|
|
Premises and
equipment |
|
101,530 |
|
|
|
|
|
Other
nonearning assets |
|
624,205 |
|
|
|
|
|
Allowance
for loan losses |
|
(69,059 |
) |
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
7,644,453 |
|
|
|
|
|
|
|
|
|
|
|
INTEREST
BEARING LIABILITIES |
|
|
|
|
|
Demand
deposits |
$ |
3,036,837 |
|
|
$ |
16,612 |
|
2.20 |
% |
Savings
deposits |
|
707,849 |
|
|
|
178 |
|
0.10 |
% |
Time
deposits |
|
1,028,045 |
|
|
|
9,306 |
|
3.64 |
% |
Total
interest bearing deposits |
|
4,772,731 |
|
|
|
26,096 |
|
2.20 |
% |
Repurchase
agreements |
|
264,587 |
|
|
|
2,056 |
|
3.13 |
% |
FHLB
advances |
|
258,554 |
|
|
|
2,314 |
|
3.60 |
% |
Federal
funds purchased |
|
- |
|
|
|
- |
|
0.00 |
% |
Subordinated
debt |
|
106,791 |
|
|
|
1,194 |
|
4.50 |
% |
Jr.
subordinated debentures |
|
24,084 |
|
|
|
542 |
|
9.05 |
% |
Other
debt |
|
- |
|
|
|
- |
|
0.00 |
% |
Total
borrowings |
|
654,016 |
|
|
|
6,106 |
|
3.75 |
% |
Total
interest bearing liabilities |
|
5,426,747 |
|
|
|
32,202 |
|
2.39 |
% |
|
|
|
|
|
|
NONINTEREST
BEARING LIABILITIES |
|
|
|
|
|
Demand
deposits |
|
1,367,798 |
|
|
Average cost of
funds |
1.91 |
% |
Other
liabilities |
|
59,056 |
|
|
|
|
|
Stockholders' equity |
|
790,852 |
|
|
|
|
|
|
|
|
|
|
|
Total
liabilities & stockholders' equity |
$ |
7,644,453 |
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Earnings / Spread |
|
|
$ |
56,086 |
|
2.77 |
% |
|
|
|
|
|
|
Impact of
Non-Interest Bearing Funds |
|
|
|
|
0.48 |
% |
|
|
|
|
|
|
Tax effected yield on interest earning assets |
|
|
|
3.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income as reported |
|
$ |
55,470 |
|
|
$ |
57,462 |
|
|
$ |
50,443 |
|
|
$ |
42,367 |
|
|
$ |
43,191 |
|
Net interest
income, (tax equivalent) |
|
|
56,086 |
|
|
|
58,255 |
|
|
|
51,212 |
|
|
|
43,109 |
|
|
|
43,947 |
|
Average
earning assets |
|
|
6,884,855 |
|
|
|
6,948,309 |
|
|
|
6,593,781 |
|
|
|
6,049,626 |
|
|
|
6,052,264 |
|
Net interest
margin (tax equivalent) |
|
|
3.25 |
% |
|
|
3.33 |
% |
|
|
3.06 |
% |
|
|
2.84 |
% |
|
|
2.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stockholder's equity |
|
$ |
797,952 |
|
|
$ |
793,204 |
|
|
$ |
737,948 |
|
|
$ |
660,687 |
|
|
$ |
661,865 |
|
Goodwill and
intangibles, net |
|
|
260,699 |
|
|
|
264,231 |
|
|
|
267,793 |
|
|
|
178,615 |
|
|
|
168,373 |
|
Common
shares outstanding |
|
|
23,889 |
|
|
|
23,827 |
|
|
|
23,830 |
|
|
|
20,528 |
|
|
|
20,520 |
|
Tangible
Book Value per common share |
|
$ |
22.49 |
|
|
$ |
22.20 |
|
|
$ |
19.73 |
|
|
$ |
23.48 |
|
|
$ |
24.05 |
|
Accumulated
other comprehensive loss (AOCI) |
|
|
(147,667 |
) |
|
|
(136,427 |
) |
|
|
(178,903 |
) |
|
|
(151,566 |
) |
|
|
(137,901 |
) |
Adjusted
tangible book value per common share |
|
$ |
28.67 |
|
|
$ |
27.93 |
|
|
$ |
27.24 |
|
|
$ |
30.87 |
|
|
$ |
30.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
Adjusted earnings Reconciliation |
|
|
|
|
|
|
|
|
|
|
Net Income -
GAAP |
|
$ |
20,503 |
|
|
$ |
18,071 |
|
|
$ |
15,117 |
|
|
$ |
16,567 |
|
|
$ |
19,180 |
|
Adjustments
(post-tax): (1) |
|
|
|
|
|
|
|
|
|
|
Acquisition
ACL on non-PCD assets in provision expense |
|
|
- |
|
|
|
- |
|
|
|
2,985 |
|
|
|
- |
|
|
|
- |
|
Nonrecurring
severance expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
416 |
|
Net
(gain)/loss on securities sales |
|
|
- |
|
|
|
(36 |
) |
|
|
(2,677 |
) |
|
|
- |
|
|
|
- |
|
Integration
and acquisition expenses |
|
|
1,804 |
|
|
|
4,385 |
|
|
|
1,653 |
|
|
|
589 |
|
|
|
135 |
|
Total
non-recurring adjustments (non-GAAP) |
|
$ |
1,804 |
|
|
$ |
4,348 |
|
|
$ |
1,962 |
|
|
$ |
589 |
|
|
$ |
551 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings - non-GAAP |
|
$ |
22,307 |
|
|
$ |
22,419 |
|
|
$ |
17,079 |
|
|
$ |
17,156 |
|
|
$ |
19,731 |
|
Adjusted
diluted earnings per share (non-GAAP) |
|
$ |
0.93 |
|
|
$ |
0.94 |
|
|
$ |
0.77 |
|
|
$ |
0.83 |
|
|
$ |
0.96 |
|
Adjusted
return on average assets - non-GAAP |
|
|
1.17 |
% |
|
|
1.16 |
% |
|
|
0.94 |
% |
|
|
1.03 |
% |
|
|
1.18 |
% |
Adjusted
return on average common equity - non-GAAP |
|
|
11.28 |
% |
|
|
12.11 |
% |
|
|
9.82 |
% |
|
|
10.42 |
% |
|
|
11.92 |
% |
|
|
|
|
|
|
|
|
|
|
|
Efficiency Ratio Reconciliation |
|
|
|
|
|
|
|
|
|
|
Noninterest
expense - GAAP |
|
$ |
53,362 |
|
|
$ |
57,025 |
|
|
$ |
47,096 |
|
|
$ |
40,042 |
|
|
$ |
41,577 |
|
Other real
estate owned property income (expense) |
|
|
21 |
|
|
|
(800 |
) |
|
|
(902 |
) |
|
|
(27 |
) |
|
|
(133 |
) |
Amortization
of intangibles |
|
|
(3,497 |
) |
|
|
(3,560 |
) |
|
|
(2,568 |
) |
|
|
(1,477 |
) |
|
|
(1,522 |
) |
Nonrecurring
severance expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(527 |
) |
Integration
and acquisition expenses |
|
|
(2,283 |
) |
|
|
(5,550 |
) |
|
|
(2,093 |
) |
|
|
(745 |
) |
|
|
(171 |
) |
Adjusted noninterest expense (non-GAAP) |
|
$ |
47,603 |
|
|
$ |
47,115 |
|
|
$ |
41,533 |
|
|
$ |
37,793 |
|
|
$ |
39,224 |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income -GAAP |
|
$ |
55,470 |
|
|
$ |
57,462 |
|
|
$ |
50,443 |
|
|
$ |
42,367 |
|
|
$ |
43,192 |
|
Effect of
tax-exempt income (1) |
|
|
616 |
|
|
|
793 |
|
|
|
769 |
|
|
|
742 |
|
|
|
755 |
|
Adjusted net interest income (non-GAAP) |
|
$ |
56,086 |
|
|
$ |
58,255 |
|
|
$ |
51,212 |
|
|
$ |
43,109 |
|
|
$ |
43,947 |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
income - GAAP |
|
$ |
24,478 |
|
|
$ |
21,768 |
|
|
$ |
23,053 |
|
|
$ |
19,486 |
|
|
$ |
22,479 |
|
Net
(gain)/loss on securities sales |
|
|
0 |
|
|
|
(46 |
) |
|
|
(3,389 |
) |
|
|
6 |
|
|
|
46 |
|
Adjusted noninterest income (non-GAAP) |
|
$ |
24,478 |
|
|
$ |
21,722 |
|
|
$ |
19,664 |
|
|
$ |
19,492 |
|
|
$ |
22,525 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted total revenue (non-GAAP) |
|
$ |
80,564 |
|
|
$ |
79,977 |
|
|
$ |
70,876 |
|
|
$ |
62,601 |
|
|
$ |
66,472 |
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (non-GAAP) |
|
|
59.09 |
% |
|
|
58.91 |
% |
|
|
58.60 |
% |
|
|
60.37 |
% |
|
|
59.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
(1) Nonrecurring items
(post-tax) and tax-exempt income are calculated using an estimated
effective tax rate of 21%. |
|
|
|
|
|
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