First Mid-Illinois Bancshares Inc.

10/28/2021 | Press release | Distributed by Public on 10/28/2021 06:01

First Mid Bancshares, Inc. Announces Third Quarter 2021 Results - Form 8-K

First Mid Bancshares, Inc. Announces Third Quarter 2021 Results

MATTOON, Ill., Oct. 28, 2021 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the "Company") today announced its financial results for the quarter and year-to-date period ended September 30, 2021.

Highlights

  • Net income of $18.3 million, or $1.01 diluted EPS
  • Adjusted net income (non-GAAP) of $19.7 million, or $1.08 diluted EPS
  • Solid organic loan growth of 1.3% for the quarter, excluding acquired and Paycheck Protection Program loans
  • Completed the integration of a St. Louis based commercial lending team including a portfolio of loans of approximately $208.0 million and deposits of approximately $215.1 million

"We are pleased to report another strong quarter of financial results, which represented a new record high in quarterly earnings," said Joe Dively, Chairman and Chief Executive Officer. "The quarter included net organic loan growth for the first time this year and the fourth quarter pipeline looks to be solid. Both the former Providence and the new St. Louis based commercial lending teams are fully integrated and off to a great start in supporting our customers and communities."

"With respect to the pending acquisition of Delta Bancshares Company ("Delta"), which we announced on July 29, 2021, we have continued to work with the team on preparing for a smooth transition and are excited about the opportunities and additional services the combined entity can provide to Delta's customers and the broader St. Louis community," Dively concluded.

Net Interest Income

Net interest income for the third quarter of 2021 increased by $2.7 million, or 6.4% compared to the second quarter of 2021. Interest income increased by $2.6 million and interest expense decreased $0.1 million from the previous quarter. PPP fee income totaled $5.1 million, an increase of $3.1 million from the prior quarter, which was partially offset by a decline in accretion income. The third quarter included $1.6 million of accretion income compared to $2.8 million in the second quarter. As of September 30, 2021, the Company had $2.0 million of deferred fee income on PPP loans remaining.

In comparison to the third quarter of 2020, net interest income increased $13.0 million, or 39.9%. The increase was primarily the result of the acquisition of Providence Bank in the first quarter of 2021, the additional income from the PPP, and the active management to lower funding costs.

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.38% for the third quarter of 2021, which was an increase of 16 basis points compared to the prior quarter. Earning asset yields increased 15 basis points, while the average cost of funds declined by one basis point.

In comparison to the third quarter of last year, the net interest margin increased 21 basis points with earning asset yields higher by 11 basis points and average cost of funds lower by 10 basis points. The increase in rates on earning assets was primarily driven by higher accretion and PPP fee income. The decrease in average cost of funds was mostly the result of not replacing higher cost funds as they have matured and lower rates on certain products.

Loan Portfolio

Total loans ended the quarter at $3.95 billion, representing an increase of $151.5 million compared to the prior quarter. PPP loans decreased by $105.7 million, and the St. Louis loan acquisition added $208.0 million during the quarter. Excluding these changes, loans increased $49.2 million in the quarter, or 1.3%. The Company had $59.4 million of PPP loans outstanding on September 30, 2021. Loan growth in the quarter was dispersed broadly in both industry and geographically.

Asset Quality

The Company's asset quality measures continued to be in a very strong position. At quarter end, the ratio of non-performing loans to total loans was 0.70%, and the allowance for credit losses ("ACL") to non-performing loans was 195%. Nonperforming loans and nonperforming assets decreased in the quarter. The ratio of nonperforming assets to total assets was 0.55% at quarter end. Net charge-offs were $1.7 million during the third quarter, primarily from one loan where the reserve had already been accounted for. Special mention loans decreased $20.7 million to $76.2 million and substandard loans decreased $4.4 million to $51.1 million.

Provision expense for the quarter was $1.1 million compared to $3.9 million in the same quarter last year. As of September 30, 2021, the ACL, excluding $59.4 million of PPP loans, was 1.39% of total loans.

Deposits

Total deposits ended the quarter at $4.99 billion, which represented an increase of $249.2 million from the prior quarter. Excluding the acquired deposits of $215.1 million, deposits increased $34.1 million in the quarter. The Company's average rate on cost of funds was 0.29% for the quarter compared to 0.30% in the prior quarter and 0.39% in the third quarter of 2020. The Company continues to reprice CDs lower and let wholesale funding sources mature without replacement.

Noninterest Income

Noninterest income for the third quarter of 2021 was $16.4 million compared to $18.3 million in the second quarter of 2021. The decrease was primarily due to the seasonality of insurance business and farmland sales. While these businesses have seasonality throughout the year, they provide significant diversification and stable revenue and cash flow streams for the Company.

In comparison to the third quarter of last year, noninterest income increased $2.8 million, or 20.5%. Combined, insurance and wealth management business lines increased 20.4% over the same period last year, partially due to the previously announced acquisitions within these lines of business. The other fee income services increased 20.6% compared to the third quarter of last year, partially due to the addition of Providence.

Noninterest Expenses

Noninterest expense for the third quarter totaled $36.3 million compared to $46.0 million in the second quarter. The current quarter included $0.4 million of acquisition and integration related costs and $1.3 million in branch optimization costs. Combined, these expenses were down by $5.4 million compared to the prior quarter. In addition, the third quarter represents the first full quarter of run-rate cost savings from the Providence integration. The third quarter is also lower, partially due to the seasonality in the wealth management farm business and in insurance.

In comparison to the third quarter of 2020, noninterest expenses increased $9.4 million. The increase was primarily due to the addition of Providence, growth in the insurance and wealth management businesses, and branch optimization costs.

The Company's efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the third quarter 2021 was 52.7% compared to 59.9% in the prior quarter and 54.7% for the same period last year.

Regulatory Capital Levels and Dividend

The Company's capital levels remained strong and comfortably above the "well capitalized" levels. Capital levels ended the period as follows:

Total capital to risk-weighted assets 15.86%
Tier 1 capital to risk-weighted assets 12.52%
Common equity tier 1 capital to risk-weighted assets 12.06%
Leverage ratio 9.04%

The Company's Board of Directors approved its next quarterly dividend in the amount of $0.22 payable on December 1, 2021 for shareholders of record on November 17, 2021.

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 $6.0 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 156 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 and Delta Bancshares Company ("Delta"), such as discussions of First Mid's and Delta'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 and Delta, are identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, the possibility that any of the anticipated benefits of the proposed transactions between First Mid and Delta will not be realized or will not be realized within the expected time period; 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; the inability to complete the proposed transactions due to the failure to satisfy conditions to completion of the proposed transactions, including failure to obtain the required regulatory, shareholder and other approvals; the failure of the proposed transactions to close for any other reason; the effect of the announcement of the proposed transactions on customer relationships and operating results; the possibility that the proposed transactions may be more expensive to complete than anticipated, including as a result of unexpected factors or events; changes in interest rates; general economic conditions and those in the market areas of First Mid and Delta; 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 and Delta's loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid and Delta; 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 and Delta's liquidity and capital positions, impair the ability of First Mid's and Delta's borrowers to repay outstanding loans, impair collateral values, and further increase the allowance for credit losses, and the impact of the COVID-19 pandemic on First Mid's and Delta'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.

Important Information about the Merger and Additional Information
First Mid filed a registration statement on Form S-4 with the SEC on September 17, 2021, which, as amended, was declared effective on October 5, 2021, in connection with the proposed transaction. The registration statement includes a proxy statement of Delta that also constitutes a prospectus of First Mid. Investors in Delta are urged to read the proxy statement/prospectus, which will contain important information, including detailed risk factors. The proxy statement/prospectus and other documents which will be filed by First Mid with the SEC will be available free of charge at the SEC's website, www.sec.gov, or by directing a request when such a filing is made to First Mid Bancshares, P.O. Box 499, Mattoon, IL 61938, Attention: Investor Relations; or to Delta Bancshares Company, 2301 Market Street, Saint Louis, MO 63103, Attention: John Dulle, Executive Vice President. The definitive proxy statement/prospectus was first mailed to the shareholders of Delta on or about October 8, 2021.

Participants in the Solicitation
First Mid and Delta, and certain of their respective directors, executive officers and other members of management and employees, are participants in the solicitation of proxies in connection with the proposed transactions. Information about the directors and executive officers of First Mid is set forth in the proxy statement for its 2021 annual meeting of stockholders, which was filed with the SEC on March 19, 2021. Investors may obtain additional information regarding the interests of such participants in the proposed transactions by reading the proxy statement/prospectus for such proposed transactions.

No Offer or Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Investor Contact:
Aaron Holt
VP, Shareholder Relations
217-258-0463
[email protected]

Matt Smith
Chief Financial Officer
217-258-1528
[email protected]

- Tables Follow -

FIRST MID BANCSHARES, INC.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
As of
September 30, December 31, September 30,
2021 2020 2020
Assets
Cash and cash equivalents $ 345,206 $ 417,281 $ 232,385
Investment securities 1,357,035 887,169 750,122
Loans (including loans held for sale) 3,947,769 3,138,419 3,236,247
Less allowance for credit losses (53,983 ) (41,910 ) (41,915 )
Net loans 3,893,786 3,096,509 3,194,332
Premises and equipment, net 81,823 58,206 59,356
Goodwill and intangibles, net 142,656 128,120 129,287
Bank owned life insurance 131,547 68,955 68,519
Other assets 91,306 70,108 75,127
Total assets $ 6,043,359 $ 4,726,348 $ 4,509,128
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing $ 1,242,950 $ 936,926 $ 837,602
Interest bearing 3,745,612 2,755,858 2,782,234
Total deposits 4,988,562 3,692,784 3,619,836
Repurchase agreement with customers 149,891 206,937 170,345
Other borrowings 112,641 93,969 93,954
Junior subordinated debentures 19,153 19,027 18,985
Subordinated debt 94,363 94,253
Other liabilities 51,524 51,150 44,999
Total liabilities 5,416,134 4,158,120 3,948,119
Total stockholders' equity 627,225 568,228 561,009
Total liabilities and stockholders' equity $ 6,043,359 $ 4,726,348 $ 4,509,128
FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2021 2020 2021 2020
Interest income:
Interest and fees on loans $ 43,292 $ 32,151 $ 119,973 $ 93,560
Interest on investment securities 5,835 4,074 16,416 12,740
Interest on federal funds sold & other deposits 136 70 325 271
Total interest income 49,263 36,295 136,714 106,571
Interest expense:
Interest on deposits 2,234 3,168 6,980 10,134
Interest on securities sold under agreements to repurchase 52 68 179 420
Interest on other borrowings 359 395 1,178 1,506
Interest on jr. subordinated debentures 137 147 416 539
Interest on subordinated debt 985 - 2,954 -
Total interest expense 3,767 3,778 11,707 12,599
Net interest income 45,496 32,517 125,007 93,972
Provision for loan losses 1,103 3,883 12,679 15,500
Net interest income after provision for loan 44,393 28,634 112,328 78,472
Non-interest income:
Wealth management revenues 4,204 3,468 14,146 10,921
Insurance commissions 3,932 3,291 14,777 14,000
Service charges 1,838 1,446 4,741 4,335
Securities gains, net 11 95 88 913
Mortgage banking revenues 1,477 1,661 4,577 3,205
ATM/debit card revenue 3,060 2,367 8,900 6,593
Other 1,837 1,250 5,163 4,006
Total non-interest income 16,359 13,578 52,392 43,973
Non-interest expense:
Salaries and employee benefits 21,092 15,346 69,487 47,301
Net occupancy and equipment expense 5,382 4,363 15,834 12,746
Net other real estate owned (income) expense 1,507 110 3,551 62
FDIC insurance 268 469 1,198 851
Amortization of intangible assets 1,414 1,277 3,929 3,862
Stationary and supplies 299 262 850 805
Legal and professional expense 1,878 1,320 4,919 4,207
Marketing and donations 679 387 1,688 1,182
Other 3,802 3,393 18,478 9,740
Total non-interest expense 36,321 26,927 119,934 80,756
Income before income taxes 24,431 15,285 44,786 41,689
Income taxes 6,105 3,720 10,130 9,988
Net income $ 18,326 $ 11,565 $ 34,656 $ 31,701
Per Share Information
Basic earnings per common share $ 1.01 $ 0.69 $ 1.94 $ 1.90
Diluted earnings per common share 1.01 0.69 1.94 1.89
Weighted average shares outstanding 18,083,126 16,728,191 17,819,619 16,710,485
Diluted weighted average shares outstanding 18,136,146 16,775,099 17,872,639 16,757,393
FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
For the Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2021 2021 2021 2020 2020
Interest income:
Interest and fees on loans $ 43,292 $ 40,795 $ 35,886 $ 33,254 $ 32,151
Interest on investment securities 5,835 5,739 4,842 4,226 4,074
Interest on federal funds sold & other deposits 136 101 88 90 70
Total interest income 49,263 46,635 40,816 37,570 36,295
Interest expense:
Interest on deposits 2,234 2,262 2,484 2,617 3,168
Interest on securities sold under agreements to repurchase 52 57 70 68 68
Interest on other borrowings 359 445 374 371 395
Interest on jr. subordinated debentures 137 139 140 143 147
Interest on subordinated debt 985 985 984 931 -
Total interest expense 3,767 3,888 4,052 4,130 3,778
Net interest income 45,496 42,747 36,764 33,440 32,517
Provision for loan losses 1,103 (560 ) 12,136 603 3,883
Net interest income after provision for loan 44,393 43,307 24,628 32,837 28,634
Non-interest income:
Wealth management revenues 4,204 5,016 4,926 5,232 3,468
Insurance commissions 3,932 4,988 5,857 3,477 3,291
Service charges 1,838 1,539 1,364 1,527 1,446
Securities gains, net 11 73 4 193 95
Mortgage banking revenues 1,477 1,691 1,409 1,870 1,661
ATM/debit card revenue 3,060 3,141 2,699 2,369 2,367
Other 1,837 1,836 1,490 879 1,250
Total non-interest income 16,359 18,284 17,749 15,547 13,578
Non-interest expense:
Salaries and employee benefits 21,092 24,908 23,487 19,151 15,346
Net occupancy and equipment expense 5,382 5,482 4,970 3,962 4,363
Net other real estate owned (income) expense 1,507 1,966 78 (20 ) 110
FDIC insurance 268 478 452 458 469
Amortization of intangible assets 1,414 1,295 1,220 1,200 1,277
Stationary and supplies 299 235 316 275 262
Legal and professional expense 1,878 1,639 1,402 1,220 1,320
Marketing and donations 679 507 502 434 387
Other 3,802 9,503 5,173 3,651 3,393
Total non-interest expense 36,321 46,013 37,600 30,331 26,927
Income before income taxes 24,431 15,578 4,777 18,053 15,285
Income taxes 6,105 3,357 668 4,484 3,720
Net income $ 18,326 $ 12,221 $ 4,109 $ 13,569 $ 11,565
Per Share Information
Basic earnings per common share $ 1.01 $ 0.68 $ 0.24 $ 0.81 $ 0.69
Diluted earnings per common share 1.01 0.68 0.24 0.81 0.69
Weighted average shares outstanding 18,083,126 18,067,190 17,299,927 16,735,926 16,728,191
Diluted weighted average shares outstanding 18,136,146 18,120,210 17,352,947 16,779,129 16,775,099
FIRST MID BANCSHARES, INC.
Consolidated Financial Highlights and Ratios
(Dollars in thousands, except per share data)
(Unaudited)
As of and for the Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2021 2021 2021 2020 2020
Loan Portfolio
Construction and land development $ 180,061 $ 141,568 $ 165,376 $ 122,479 $ 167,515
Farm real estate loans 278,788 277,362 269,652 254,341 256,230
1-4 Family residential properties 412,565 394,902 412,470 325,762 339,172
Multifamily residential properties 306,911 274,910 297,984 189,632 139,255
Commercial real estate 1,583,255 1,480,198 1,402,885 1,174,300 1,177,571
Loans secured by real estate 2,761,580 2,568,940 2,548,367 2,066,514 2,079,743
Agricultural operating loans 126,534 123,101 121,070 137,352 141,074
Commercial and industrial loans 835,860 864,554 1,017,400 738,313 807,668
Consumer loans 80,064 84,541 91,705 78,002 80,348
All other loans 143,731 155,168 164,557 118,238 127,414
Total loans 3,947,769 3,796,304 3,943,099 3,138,419 3,236,247
Deposit Portfolio
Non-interest bearing demand deposits $ 1,242,950 $ 1,157,009 $ 1,185,181 $ 936,926 $ 837,602
Interest bearing demand deposits 1,416,361 1,418,717 1,268,882 1,031,183 1,053,691
Savings deposits 612,404 598,232 668,098 499,427 485,241
Money Market 1,075,852 842,771 803,946 748,179 736,262
Time deposits 640,995 722,593 811,586 477,069 507,040
Total deposits 4,988,562 4,739,322 4,737,693 3,692,784 3,619,836
Asset Quality
Non-performing loans $ 27,723 $ 30,410 $ 31,984 $ 28,123 $ 22,439
Non-performing assets 33,359 37,648 45,323 30,616 24,712
Net charge-offs 1,717 261 702 608 349
Allowance for credit losses to non-performing loans 194.72% 179.54% 173.27% 149.02% 186.80%
Allowance for credit losses to total loans outstanding 1.39%1 1.50%1 1.50%1 1.41%1 1.41%1
Nonperforming loans to total loans 0.70% 0.80% 0.81% 0.90% 0.69%
Nonperforming assets to total assets 0.55% 0.65% 0.78% 0.65% 0.55%
Common Share Data
Common shares outstanding 18,083,126 18,078,474 18,042,256 16,741,208 16,731,684
Book value per common share $ 34.69 $ 34.08 $ 33.36 $ 33.94 $ 33.53
Tangible book value per common share (2) 26.80 26.33 25.68 26.29 25.80
Market price of stock 41.06 40.51 43.93 33.66 24.95
Key Performance Ratios and Metrics
End of period earning assets $ 5,542,199 $ 5,269,882 $ 5,374,848 $ 4,367,717 $ 4,130,186
Average earning assets 5,396,239 5,380,411 4,769,975 4,238,388 4,113,846
Average rate on average earning assets (tax equivalent) 3.67% 3.52% 3.52% 3.58% 3.56%
Average rate on cost of funds 0.29% 0.30% 0.36% 0.41% 0.39%
Net interest margin (tax equivalent) (2) 3.38% 3.22% 3.16% 3.17% 3.17%
Return on average assets 1.25% 0.84% 0.32% 1.18% 1.03%
Return on average common equity 11.67% 8.00% 2.78% 9.66% 8.31%
Efficiency ratio (tax equivalent) (2) 52.73% 59.91% 61.20% 58.27% 54.66%
Full-time equivalent employees 960 960 983 824 816
1 Excludes Paycheck Protection Program loans.
2 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.
FIRST MID BANCSHARES, INC.
Net Interest Margin
(In thousands, unaudited)
For the Quarter Ended September 30, 2021
QTD Average Average
Balance Interest Rate
INTEREST EARNING ASSETS
Interest bearing deposits $ 277,844 $ 122 0.17 %
Federal funds sold 1,341 - 0.00 %
Certificates of deposits investments 2,453 13 2.10 %
Investment Securities:
Taxable (total less municipals) 976,817 3,961 1.62 %
Tax-exempt (Municipals) 312,796 2,373 3.03 %
Loans (net of unearned income) 3,824,988 43,463 4.51 %
Total interest earning assets 5,396,239 49,932 3.67 %
NONEARNING ASSETS
Cash and due from banks 100,475
Premises and equipment 82,057
Other nonearning assets 344,014
Allowance for loan losses (55,373 )
Total assets $ 5,867,412
INTEREST BEARING LIABILITIES
Demand deposits $ 2,336,601 $ 1,177 0.20 %
Savings deposits 606,129 111 0.07 %
Time deposits 673,833 946 0.56 %
Total interest bearing deposits 3,616,563 2,234 0.25 %
Repurchase agreements 160,686 52 0.13 %
FHLB advances 112,715 359 1.26 %
Federal funds purchased - - 0.00 %
Subordinated debt 94,338 985 4.14 %
Jr. subordinated debentures 19,125 137 2.84 %
Other borrowings - - 0.00 %
Total borrowings 386,864 1,533 1.57 %
Total interest bearing liabilities 4,003,427 3,767 0.37 %
NONINTEREST BEARING LIABILITIES
Demand deposits 1,179,915 Average cost of funds 0.29 %
Other liabilities 56,107
Stockholders' equity 627,963
Total liabilities & stockholders' equity $ 5,867,412
Net Interest Earnings / Spread $ 46,165 3.30 %
Impact of Non-Interest Bearing Funds 0.08 %
Tax effected yield on interest earning assets 3.38 %
FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, unaudited)
As of and for the Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2021 2021 2021 2020 2020
Net interest income as reported $ 45,496 $ 42,747 $ 36,764 $ 33,440 $ 32,517
Net interest income, (tax equivalent) 46,165 43,359 37,359 34,040 33,084
Average earning assets 5,396,239 5,380,411 4,769,975 4,238,388 4,113,846
Net interest margin (tax equivalent) 3.38 % 3.22 % 3.16 % 3.17 % 3.17 %
Common stockholder's equity $ 627,225 $ 616,066 $ 601,884 $ 568,228 $ 561,009
Goodwill and intangibles, net 142,656 139,995 138,606 128,120 129,287
Common shares outstanding 18,083 18,078 18,042 16,741 16,732
Tangible Book Value per common share $ 26.80 $ 26.33 $ 25.68 $ 26.29 $ 25.80
FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)
As of and for the Quarter Ended
September 30, June 30, March 31, December 31, September 30,
2021 2021 2021 2020 2020
Adjusted earnings Reconciliation
Net Income - GAAP $ 18,326 $ 12,221 $ 4,109 $ 13,569 $ 11,565
Adjustments (post-tax): (1)
Acquisition ACL on non-PCD assets in provision expense - - 9,072 - -
Branch optimization costs 999 960 - - -
Integration and acquisition expenses 348 4,634 2,036 292 69
Total non-recurring adjustments (non-GAAP) $ 1,347 $ 5,595 $ 11,108 $ 292 $ 69
Adjusted earnings - non-GAAP $ 19,673 $ 17,816 $ 15,217 $ 13,861 $ 11,634
Adjusted diluted earnings per share (non-GAAP) $ 1.08 $ 0.98 $ 0.88 $ 0.83 $ 0.69
Efficiency Ratio Reconciliation
Noninterest expense - GAAP $ 36,321 $ 46,013 $ 37,600 $ 30,331 $ 26,927
Other real estate owned property income (expense) (242 ) (751 ) (78 ) 20 (110 )
Amortization of intangibles (1,414 ) (1,295 ) (1,220 ) (1,200 ) (1,277 )
Branch optimization costs (1,265 ) (1,215 ) - - -
integration and acquisition expenses (440 ) (5,866 ) (2,578 ) (369 ) (87 )
Adjusted noninterest expense (non-GAAP) $ 32,960 $ 36,886 $ 33,724 $ 28,782 $ 25,453
Net interest income -GAAP $ 45,496 $ 42,747 $ 36,764 $ 33,440 $ 32,517
Effect of tax-exempt income (1) 669 612 595 601 566
Adjusted net interest income (non-GAAP) $ 46,165 $ 43,359 $ 37,359 $ 34,041 $ 33,083
Noninterest income - GAAP $ 16,359 $ 18,284 $ 17,749 $ 15,547 $ 13,578
Gain on sales of investment securities, net (11 ) (73 ) (4 ) (193 ) (95 )
Adjusted noninterest income (non-GAAP) $ 16,348 $ 18,211 $ 17,745 $ 15,354 $ 13,483
Adjusted total revenue (non-GAAP) $ 62,513 $ 61,570 $ 55,104 $ 49,395 $ 46,566
Efficiency ratio (non-GAAP) 52.73 % 59.91 % 61.20 % 58.27 % 54.66 %
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.