• First Mid Bancshares, Inc. Announces Fourth Quarter 2023 Results

    Source: Nasdaq GlobeNewswire / 25 Jan 2024 07:00:01   America/New_York

    MATTOON, Ill., Jan. 25, 2024 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter and year ended December 31, 2023.

    Highlights

    • Net income of $18.1 million, or $0.76 diluted EPS
    • Adjusted net income (non-GAAP) of $22.4 million, or $0.94 diluted EPS
    • Completed the merger and integration of Blackhawk Bank (“Blackhawk”)
    • Sold additional bonds to reposition balance sheet helping drive a strong net interest margin of 3.33%
    • Strong asset quality performance continued with minimal net charge offs for the quarter
    • Board of Directors declares regular quarterly dividend of $0.23 per share

    “We capped off 2023 with a strong quarter of financial results,” said Joe Dively, Chairman and Chief Executive Officer. “This was the first full quarter inclusive of Blackhawk and the value of the transaction is evident in our results. We completed another step in the Blackhawk related balance sheet repositioning by selling additional bonds with proceeds of $79.7 million used to reduce brokered CDs and wholesale borrowings, improving our net interest margin.”

    “During the quarter, we completed the merger of Blackhawk into First Mid Bank & Trust and the related core system conversion. Our employees worked extremely hard to make the transition as seamless as possible for our customers in what was our largest, most complex integration. I am proud of the efforts of our team and their support of our customers,” Dively concluded.

    Net Interest Income
    Net interest income for the fourth quarter of 2023 increased by $7.0 million, or 13.9% compared to the third quarter of 2023. Interest income and interest expense increased in the quarter by $9.5 million and $2.5 million, respectively. The increase in interest income was primarily driven by the addition of Blackhawk, loan growth, and the repricing of loans with higher interest rates. Accretion income for the quarter was $4.6 million, an increase compared to $2.6 million in the prior quarter. The increase in interest expense was primarily driven by the addition of Blackhawk and higher interest rates. During the quarter, the Company sold $79.7 million of bonds and used the proceeds to payoff maturing brokered CDs and wholesale borrowings.            

    In comparison to the fourth quarter of 2022, net interest income increased $11.8 million, or 25.8%. The increase was primarily driven by the addition of Blackhawk. For the same period, interest income increased by $29.2 million, while interest expense increased $17.4 million.                     

    Net Interest Margin
    Net interest margin, on a tax equivalent basis (non-GAAP), was 3.33% for the fourth quarter of 2023, which was 27 basis points higher compared to the prior quarter. Earning asset yields increased by 29 basis points and the average cost of funds increased 2 basis points.        

    In comparison to the fourth quarter of last year, the net interest margin increased 26 basis points, with an average earning asset increase of 111 basis points versus the average cost of funds increase of 85 basis points.

    Loan Portfolio
    Total loans ended the quarter at $5.58 billion, representing an increase of $40.5 million. The growth was spread among several categories with the largest increase in Ag operating loans. Overall, loan demand slightly improved and we saw an increase in line draws during the period. Most of the new originations and renewed loans in the period were at rates in the 8.00% to 8.50% range. 

    Asset Quality 
    The fourth quarter was another strong period with respect to the Company’s asset quality metrics. The allowance for credit losses (“ACL”) increased by $0.4 million to $68.7 million with an ending ACL to total loans ratio of 1.23%. In addition to the ACL, an unearned discount of $49.9 million remains at quarter end. Provision expense was recorded in the amount of $0.6 million with net charge offs of $0.1 million in the quarter. Also, at the end of the fourth quarter, the ratio of non-performing loans to total loans was 0.36%, and the ACL to non-performing loans was 341.19%.   The ratio of nonperforming assets to total assets was 0.28% and nonperforming loans were $20.1 million at quarter end. For the quarter, special mention loans were $74.1 million and substandard loans were $28.9 million.        

    Deposits
    Total deposits ended the quarter at $6.12 billion, which represented a decrease of $222.7 million from the prior quarter. Of the decline, $73.2 million came from time deposits, including brokered, where the Company used proceeds from its bond sales to pay these off at maturity. The remaining portion of the decline in balances was driven primarily by seasonal cash flow operating needs of commercial customers. Noninterest bearing deposits increased by $9.2 million in the quarter. The Company’s average rate on cost of funds increased to 1.85% compared to 1.83% in the prior quarter and 1.00% in the fourth quarter of 2022.                

    Noninterest Income
    Noninterest income represented 31% of our total net revenues for the year.

    Noninterest income for the fourth quarter of 2023 was $21.8 million compared to $23.1 million in the third quarter of 2023.   Excluding securities gains for both periods, noninterest income increased $2.1 million in the current quarter. The increase was primarily driven by the full quarter benefit of Blackhawk, along with higher insurance revenues.     

    In comparison to the fourth quarter of 2022, noninterest income increased $3.6 million, or 19.6%, due to a combination of organic growth and the addition of Blackhawk’s operating costs for the period.                  

    Noninterest Expenses     
    Noninterest expense for the fourth quarter of 2023 totaled $57.0 million compared to $47.1 million in the prior quarter. The increase was primarily driven by the full quarter of Blackhawk and approximately $5.6 million in nonrecurring acquisition related costs.

    In comparison to the fourth quarter of 2022, noninterest expenses increased $17.7 million. In addition to $5.6 million in nonrecurring integration related costs during the period, the increase was primarily driven by the addition of Blackhawk.

    The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter 2023 was 58.9% compared to 58.6% in the prior quarter and 58.1% for the same period last year.

    Capital Levels, Dividend and Taxes
    The 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 14.84%  
    Tier 1 capital to risk-weighted assets 12.02%  
    Common equity tier 1 capital to risk-weighted assets 11.62%  
    Leverage ratio 9.33%  
       

    Tangible book value per share increased in the period to $22.20 on a combination of both earnings growth and improvement in the unrealized loss position in the bond portfolio impacting accumulated other comprehensive income (“AOCI”).

    The Company’s Board of Directors approved a regular quarterly dividend of $0.23 payable on March 1, 2024 for shareholders of record on February 16, 2024.

    The Company’s effective tax rate for the fourth quarter was 16.6% and 22.0% for the year. The lower rate in the current period was primarily due to $0.8 million of refunds for amendments filed on Wisconsin state taxes.

    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 $7.6 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, 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:
    Aaron Holt
    VP, Shareholder Relations
    217-258-0463
    aholt@firstmid.com

    Matt Smith
    Chief Financial Officer
    217-258-1528
    msmith@firstmid.com

    – Tables Follow –

           
      FIRST MID BANCSHARES, INC.
      Condensed Consolidated Balance Sheets
      (In thousands, unaudited)
       
      As of
      December 31, September 30, December 31,
       2023   2023   2022 
           
    Assets      
    Cash and cash equivalents $143,064  $383,237  $152,433 
    Investment securities  1,179,402   1,226,746   1,223,720 
    Loans (including loans held for sale)  5,580,565   5,540,065   4,826,212 
    Less allowance for credit losses  (68,675)  (68,241)  (59,093)
    Net loans  5,511,890   5,471,824   4,767,119 
    Premises and equipment, net  101,396   102,004   90,473 
    Goodwill and intangibles, net  264,231   267,793   169,897 
    Bank owned life insurance  166,125   165,022   151,756 
    Other assets  220,686   238,668   188,817 
      Total assets $7,586,794  $7,855,294  $6,744,215 
           
    Liabilities and Stockholders' Equity      
    Deposits:      
    Non-interest bearing $1,398,234  $1,389,022  $1,256,514 
    Interest bearing  4,725,425   4,957,302   4,000,487 
    Total deposits  6,123,659   6,346,324   5,257,001 
    Repurchase agreement with customers  213,721   214,978   221,414 
    Other borrowings  263,787   364,953   465,071 
    Junior subordinated debentures  24,058   24,003   19,364 
    Subordinated debt  106,755   106,648   94,553 
    Other liabilities  61,610   60,440   53,657 
      Total liabilities  6,793,590   7,117,346   6,111,060 
           
      Total stockholders' equity  793,204   737,948   633,155 
    Total liabilities and stockholders' equity $7,586,794  $7,855,294  $6,744,215 
           


    FIRST MID BANCSHARES, INC.
    Condensed Consolidated Statements of Income
    (In thousands, except per share data, unaudited)
             
      Three Months Ended Twelve Months Ended
      December 31, December 31,
       2023  2022   2023  2022
    Interest income:        
    Interest and fees on loans $78,676 $53,128  $262,423 $185,869
    Interest on investment securities  8,515  7,285   32,119  29,380
    Interest on federal funds sold & other deposits  2,736  296   5,624  642
      Total interest income  89,927  60,709   300,166  215,891
    Interest expense:        
    Interest on deposits  25,900  9,227   77,294  18,813
    Interest on securities sold under agreements to repurchase  1,754  1,163   6,565  1,795
    Interest on other borrowings  3,073  3,345   16,789  6,193
    Interest on jr. subordinated debentures  545  315   1,859  868
    Interest on subordinated debt  1,193  987   4,196  3,945
      Total interest expense  32,465  15,037   106,703  31,614
    Net interest income  57,462  45,672   193,463  184,277
    Provision for credit losses  552  805   6,104  4,806
    Net interest income after provision for loan  56,910  44,867   187,359  179,471
    Non-interest income:        
    Wealth management revenues  4,998  6,201   20,793  22,492
    Insurance commissions  5,398  4,719   24,814  21,622
    Service charges  3,298  2,375   10,881  9,112
    Net securities gains/(losses)  46  (48)  3,383  33
    Mortgage banking revenues  954  65   2,282  1,190
    ATM/debit card revenue  4,233  3,209   14,347  12,422
    Other  2,841  1,686   10,286  7,811
    Total non-interest income  21,768  18,207   86,786  74,682
    Non-interest expense:        
    Salaries and employee benefits  29,925  23,610   104,962  98,594
    Net occupancy and equipment expense  7,977  6,126   26,946  24,257
    Net other real estate owned (income) expense  800  87   1,862  330
    FDIC insurance  1,015  464   3,339  1,805
    Amortization of intangible assets  3,560  1,537   9,127  6,290
    Stationary and supplies  404  298   1,346  1,295
    Legal and professional expense  2,065  1,607   7,379  6,996
    ATM/debit card expense  1,332  1,309   5,322  4,300
    Marketing and donations  679  681   3,005  2,999
    Other  9,268  3,653   22,452  15,995
    Total non-interest expense  57,025  39,372   185,740  162,861
    Income before income taxes  21,653  23,702   88,405  91,292
    Income taxes  3,582  3,063   19,470  18,340
    Net income $18,071 $20,639  $68,935 $72,952
             
    Per Share Information        
    Basic earnings per common share $0.76 $1.01  $3.17 $3.62
    Diluted earnings per common share  0.76  1.01   3.15  3.60
             
    Weighted average shares outstanding  23,837,853  20,461,046   21,780,217  20,169,077
    Diluted weighted average shares outstanding  23,921,758  20,535,220   21,868,788  20,243,635
             


    FIRST MID BANCSHARES, INC.
    Condensed Consolidated Statements of Income
    (In thousands, except per share data, unaudited)
               
      For the Quarter Ended
      December 31, September 30, June 30, March 31, December 31,
       2023  2023  2023   2023   2022 
    Interest income:          
    Interest and fees on loans $78,676 $69,143 $58,368  $56,236  $53,128 
    Interest on investment securities  8,515  9,284  7,193   7,127   7,285 
    Interest on federal funds sold & other deposits  2,736  2,011  569   308   296 
      Total interest income  89,927  80,438  66,130   63,671   60,709 
    Interest expense:          
    Interest on deposits  25,900  22,047  16,580   12,767   9,227 
    Interest on securities sold under agreements to repurchase  1,754  1,625  1,723   1,463   1,163 
    Interest on other borrowings  3,073  4,749  4,084   4,883   3,345 
    Interest on jr. subordinated debentures  545  545  390   379   315 
    Interest on subordinated debt  1,193  1,029  986   988   987 
      Total interest expense  32,465  29,995  23,763   20,480   15,037 
    Net interest income  57,462  50,443  42,367   43,191   45,672 
    Provision for credit losses  552  5,911  458   (817)  805 
    Net interest income after provision for loan  56,910  44,532  41,909   44,008   44,867 
    Non-interest income:          
    Wealth management revenues  4,998  4,940  5,341   5,514   6,201 
    Insurance commissions  5,398  5,199  5,737   8,480   4,719 
    Service charges  3,298  2,994  2,386   2,203   2,375 
    Securities gains, net  46  3,389  (6)  (46)  (48)
    Mortgage banking revenues  954  846  332   150   65 
    ATM/debit card revenue  4,233  3,766  3,265   3,083   3,209 
    Other  2,841  1,919  2,431   3,095   1,686 
    Total non-interest income  21,768  23,053  19,486   22,479   18,207 
    Non-interest expense:          
    Salaries and employee benefits  29,925  25,422  23,544   26,071   23,610 
    Net occupancy and equipment expense  7,977  6,929  6,035   6,005   6,126 
    Net other real estate owned (income) expense  800  902  27   133   87 
    FDIC insurance  1,015  785  1,076   463   464 
    Amortization of intangible assets  3,560  2,568  1,477   1,522   1,537 
    Stationary and supplies  404  335  315   292   298 
    Legal and professional expense  2,065  1,844  1,780   1,690   1,607 
    ATM/debit card expense  1,332  1,751  1,016   1,223   1,309 
    Marketing and donations  679  764  908   654   681 
    Other  9,268  5,796  3,864   3,524   3,653 
    Total non-interest expense  57,025  47,096  40,042   41,577   39,372 
    Income before income taxes  21,653  20,489  21,353   24,910   23,702 
    Income taxes  3,582  5,372  4,786   5,730   3,063 
    Net income $18,071 $15,117 $16,567  $19,180  $20,639 
               
    Per Share Information          
    Basic earnings per common share $0.76 $0.68 $0.81  $0.94  $1.01 
    Diluted earnings per common share  0.76  0.68  0.80   0.93   1.01 
               
    Weighted average shares outstanding  23,837,853  22,220,438  20,528,717   20,492,254   20,461,046 
    Diluted weighted average shares outstanding  23,921,758  22,319,334  20,628,239   20,563,972   20,535,220 
               


      FIRST MID BANCSHARES, INC.
      Consolidated Financial Highlights and Ratios
      (Dollars in thousands, except per share data)
      (Unaudited)
      As of and for the Quarter Ended
      December 31, September 30, June 30, March 31, December 31,
       2023   2023   2023   2023   2022 
               
    Loan Portfolio           
    Construction and land development $205,077  $189,206  $151,574  $159,157  $144,264 
    Farm real estate loans  391,132   399,834   392,220   401,957   410,327 
    1-4 Family residential properties  542,469   531,699   418,932   424,545   440,180 
    Multifamily residential properties  319,129   327,067   303,482   301,808   294,346 
    Commercial real estate  2,384,704   2,392,834   2,056,529   2,003,647   2,030,011 
         Loans secured by real estate  3,842,511   3,840,640   3,322,737   3,291,114   3,319,128 
    Agricultural operating loans  196,272   179,447   148,318   146,847   166,838 
    Commercial and industrial loans  1,266,159   1,242,653   1,094,522   1,078,021   1,082,960 
    Consumer loans  91,014   99,542   80,241   88,430   97,775 
    All other loans  184,609   177,783   167,598   156,219   159,511 
    Total loans  5,580,565   5,540,065   4,813,416   4,760,631   4,826,212 
               
    Deposit Portfolio           
    Non-interest bearing demand deposits $1,398,234  $1,389,022  $1,171,047  $1,262,181  $1,256,514 
    Interest bearing demand deposits  1,837,296   1,940,162   1,477,765   1,419,791   1,389,283 
    Savings deposits  710,586   734,377   602,523   639,691   636,699 
    Money Market  1,129,950   1,161,957   923,259   878,452   1,267,726 
    Time deposits  1,047,593   1,120,806   1,044,991   830,663   706,779 
    Total deposits  6,123,659   6,346,324   5,219,585   5,030,778   5,257,001 
               
    Asset Quality          
    Non-performing loans $20,128  $21,269  $18,637  $15,163  $19,170 
    Non-performing assets  21,292   23,565   22,615   19,225   23,539 
    Net charge-offs (recoveries)  118   181   (38)  53   489 
    Allowance for credit losses to non-performing loans  341.19%  320.85%  315.07%  383.98%  308.26%
    Allowance for credit losses to total loans outstanding  1.23%  1.23%  1.22%  1.22%  1.22%
    Nonperforming loans to total loans  0.36%  0.38%  0.39%  0.32%  0.40%
    Nonperforming assets to total assets  0.28%  0.30%  0.34%  0.29%  0.35%
    Special Mention loans  74,050   73,732   40,687   47,022   39,853 
    Substandard and Doubtful loans  28,945   30,575   28,255   29,931   34,352 
               
    Common Share Data          
    Common shares outstanding  23,827,137   23,830,038   20,528,192   20,519,717   20,452,376 
    Book value per common share $33.29  $30.97  $32.18  $32.26  $30.96 
    Tangible book value per common share (1)  22.20   19.73   23.48   24.05   22.65 
    Tangible book value per common share excluding other comprehensive income at period end (1)  27.93   27.24   30.87   30.77   30.06 
    Market price of stock  34.66   26.56   24.14   27.22   32.08 
               
    Key Performance Ratios and Metrics          
    End of period earning assets $6,780,160  $7,007,282  $6,023,553  $5,995,674  $6,063,953 
    Average earning assets  6,948,309   6,593,781   6,049,626   6,052,264   6,000,106 
    Average rate on average earning assets (tax equivalent)  5.18%  4.89%  4.43%  4.32%  4.07%
    Average rate on cost of funds  1.85%  1.83%  1.59%  1.38%  1.00%
    Net interest margin (tax equivalent) (1)  3.33%  3.06%  2.84%  2.94%  3.07%
    Return on average assets  0.93%  0.90%  0.99%  1.15%  1.24%
    Adjusted return on average assets (1)  1.16%  0.94%  1.03%  1.18%  1.25%
    Return on average common equity  9.76%  8.70%  10.07%  12.11%  13.51%
    Adjusted return on average common equity (1)  12.11%  9.82%  10.42%  11.92%  13.60%
    Efficiency ratio (tax equivalent) (1)  58.91%  58.60%  60.37%  59.01%  58.07%
    Full-time equivalent employees  1,187   1,224   995   988   1,043 
               
    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 December 31, 2023
      QTD Average   Average
      Balance Interest Rate
    INTEREST EARNING ASSETS      
    Interest bearing deposits $186,849  $2,560 5.44%
    Federal funds sold  8,842   122 5.47%
    Certificates of deposits investments  1,630   54 13.14%
    Investment Securities:      
      Taxable (total less municipals)  946,620   6,522 2.76%
      Tax-exempt (Municipals)  259,662   2,524 3.89%
    Loans (net of unearned income)  5,544,706   78,938 5.65%
           
    Total interest earning assets  6,948,309   90,720 5.18%
           
    NONEARNING ASSETS      
    Cash and due from banks  137,282     
    Premises and equipment  101,641     
    Other nonearning assets  618,063     
    Allowance for loan losses  (68,584)    
           
    Total assets $7,736,711     
           
    INTEREST BEARING LIABILITIES      
    Demand deposits $2,999,731  $16,077 2.13%
    Savings deposits  724,347   190 0.10%
    Time deposits  1,074,569   9,633 3.56%
    Total interest bearing deposits  4,798,647   25,900 2.14%
    Repurchase agreements  230,977   1,754 3.01%
    FHLB advances  336,939   3,060 3.60%
    Federal funds purchased  -   1 0.00%
    Subordinated debt  106,684   1,193 4.44%
    Jr. subordinated debentures  24,029   545 9.00%
    Other debt  -   12 0.00%
    Total borrowings  698,629   6,565 3.73%
    Total interest bearing liabilities  5,497,276   32,465 2.34%
           
    NONINTEREST BEARING LIABILITIES      
    Demand deposits  1,463,572  Average cost of funds1.85%
    Other liabilities  35,248     
    Stockholders' equity  740,615     
           
    Total liabilities & stockholders' equity $7,736,711     
           
    Net Interest Earnings / Spread   $58,255 2.84%
           
    Impact of Non-Interest Bearing Funds     0.49%
           
    Tax effected yield on interest earning assets       3.33%
           


    FIRST MID BANCSHARES, INC.
    Reconciliation of Non-GAAP Financial Measures
    (In thousands, unaudited)
               
      As of and for the Quarter Ended
      December 31, September 30,
    		 June 30, March 31, December 31,
      2023 2023 2023 2023 2022
               
    Net interest income as reported $57,462  $50,443  $42,367  $43,191  $45,672 
    Net interest income, (tax equivalent)  58,255   51,212   43,109   43,947   46,464 
    Average earning assets  6,948,309   6,593,781   6,049,626   6,052,264   6,000,106 
    Net interest margin (tax equivalent)  3.33%  3.06%  2.84%  2.94%  3.07%
               
               
    Common stockholder's equity $793,204  $737,948  $660,687  $661,865  $633,155 
    Goodwill and intangibles, net  264,231   267,793   178,615   168,373   169,897 
    Common shares outstanding  23,827   23,830   20,528   20,520   20,452 
    Tangible Book Value per common share $22.20  $19.73  $23.48  $24.05  $22.65 
    Accumulated other comprehensive loss (AOCI)  (136,427)  (178,903)  (151,566)  (137,901)  (151,507)
    Adjusted tangible book value per common share $27.93  $27.24  $30.87  $30.77  $30.06 
               


    FIRST MID BANCSHARES, INC.
    Reconciliation of Non-GAAP Financial Measures
    (In thousands, except per share data, unaudited)
               
      As of and for the Quarter Ended
      December 31, September 30,June 30, March 31, December 31,
       2023   2023   2023   2023   2022 
    Adjusted earnings Reconciliation          
    Net Income - GAAP $18,071  $15,117  $16,567  $19,180  $20,639 
    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  4,385   1,653   589   135   131 
    Total non-recurring adjustments (non-GAAP) $4,348  $1,962  $589  $551  $131 
               
    Adjusted earnings - non-GAAP $22,419  $17,079  $17,156  $19,731  $20,770 
    Adjusted diluted earnings per share (non-GAAP) $0.94  $0.77  $0.83  $0.96  $1.01 
    Adjusted return on average assets - non-GAAP  1.16%  0.94%  1.03%  1.18%  1.25%
    Adjusted return on average common equity - non-GAAP  12.11%  9.82%  10.42%  11.92%  13.60%
               
    Efficiency Ratio Reconciliation          
    Noninterest expense - GAAP $57,025  $47,096  $40,042  $41,577  $39,372 
    Other real estate owned property income (expense)  (800)  (902)  (27)  (133)  (87)
    Amortization of intangibles  (3,560)  (2,568)  (1,477)  (1,522)  (1,537)
    Nonrecurring severance expense  -   -   -   (527)  - 
    Integration and acquisition expenses  (5,550)  (2,093)  (745)  (171)  (166)
      Adjusted noninterest expense (non-GAAP) $47,115  $41,533  $37,793  $39,224  $37,582 
               
    Net interest income -GAAP $57,462  $50,443  $42,367  $43,192  $45,672 
    Effect of tax-exempt income (1)  793   769   742   755   792 
      Adjusted net interest income (non-GAAP) $58,255  $51,212  $43,109  $43,947  $46,464 
               
    Noninterest income - GAAP $21,768  $23,053  $19,486  $22,479  $18,207 
    Net (gain)/loss on securities sales  (46)  (3,389)  6   46   48 
      Adjusted noninterest income (non-GAAP) $21,722  $19,664  $19,492  $22,525  $18,255 
               
      Adjusted total revenue (non-GAAP) $79,977  $70,876  $62,601  $66,472  $64,719 
               
    Efficiency ratio (non-GAAP)  58.91%  58.60%  60.37%  59.01%  58.07%
               
    (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.     


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