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First Mid Bancshares, Inc. Announces Second Quarter 2022 Results

·23 min read
First Mid Bancshares, Inc.
First Mid Bancshares, Inc.

MATTOON, Ill., July 28, 2022 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended June 30, 2022.

Highlights

  • Net income of $17.8 million, or $0.86 diluted EPS

  • Adjusted net income (non-GAAP) of $18.5 million, or $0.90 diluted EPS

  • Strong loan growth of $194.1 million, or 4.4% for the quarter

  • Successful completion of bank merger and system conversion with Jefferson Bank and Trust (“Jefferson”)

  • Board of Directors increases quarterly dividend by $0.01, or 4.5% to $0.23 per share

“Our second quarter was highlighted by our successful system conversion and integration of Jefferson Bank,” said Joe Dively, Chairman and Chief Executive Officer. “In addition, we had an unprecedented quarter of loan growth and delivered solid earnings through our multiple sources of income diversification. We continue to stress test our loans for the various macro-economic challenges and feel confident in the strength of our portfolio if there were to be an extended downturn.”

Net Interest Income

Net interest income for the second quarter of 2022 increased by $3.3 million, or 7.6% compared to the first quarter of 2022. Both interest income and interest expense increased in the quarter by $4.1 million and $0.8 million, respectively.   The increase in interest income was primarily driven by the full quarter benefit from the Jefferson acquisition, organic loan growth, and higher interest rates. Accretion income decreased by $0.2 million in the quarter to $0.9 million. Interest expense increased primarily from the full quarter of Jefferson, and rising rates in money market deposits and Federal Home Loan Bank borrowings.   

In comparison to the second quarter of 2021, net interest income increased $4.1 million, or 9.5%. The increase was primarily the result of organic loan growth, the impact of the Jefferson acquisition, and rising interest rates.            

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.20% for the second quarter of 2022, which was 13 basis points higher compared to the prior quarter. Earning asset yields increased by 17 basis points and the average cost of funds increased 4 basis points.

In comparison to the second quarter of last year, the net interest margin decreased 2 basis points, and average cost of funds were flat.   The primary reason for the decrease was due to lower accretion income and PPP fee income compared to the second quarter of 2021.

Loan Portfolio

Total loans ended the quarter at $4.65 billion, representing an increase of $194.1 million compared to the prior quarter. Growth was primarily within our C&I and farm real estate sectors, partially offset by a decline in multifamily. We had a strong pipeline going into the quarter and most of the loans closed within the period. We also experienced an increase in utilization of lines of credit, which was partially offset by higher payoffs in the multifamily sector.         

Asset Quality

The Company has always prided itself on a strong credit culture and the asset quality metrics for June 30, 2022 were strong. The allowance for credit losses (‘ACL’) increased by $0.6 million to $59.1 million with an ending ACL to total loans ratio of 1.27%. Provision expense was recorded in the amount of $0.9 million and net charge offs totaled $0.3 million. Also, at the end of the second quarter, the ratio of non-performing loans to total loans was 0.43%, and the ACL to non-performing loans was 296%.   The ratio of nonperforming assets to total assets was 0.36% at quarter end. Nonperforming loans declined by $2.5 million in the period to $19.9 million representing the lowest amount since the first quarter of 2018, which illustrates the strength of our asset quality position. Outstanding special mention and substandard loans improved in the quarter, declining to $35.8 million and $38.2 million, respectively.

Deposits

Total deposits ended the quarter at $5.32 billion, which represented a decrease of $168.3 million from the prior quarter. The decline was primarily in money market balances in the depository agreement with Promontory and Stifel, Nicolaus & Company, Inc. that was setup with the loan purchase in April of 2020. The Company’s average rate on cost of funds was 0.30% compared to 0.26% in the prior quarter, and flat versus the second quarter of 2021.               

Noninterest Income

Noninterest income for the second quarter of 2022 was $18.6 million compared to $21.1 million in the first quarter of 2022.   The decrease compared to the prior quarter was primarily due to the seasonality of the insurance business, which was down by $1.5 million. In addition, other income includes an unrealized loss on equity securities of $0.7 million. Increases in service charges and debit card income were offset by decreases in mortgage banking and wealth management. The decrease in wealth management was the result of a combination of seasonally lower farmland sales and lower equity market values.

In comparison to the second quarter of 2021, noninterest income increased $0.3 million, or 1.5%. The year-over-year increase was driven by strong growth in our wealth management and insurance businesses and the addition of Jefferson, partially offset by a $1.4 million decline in mortgage banking revenue.        

Noninterest Expenses  

Noninterest expense for the second quarter of 2022 totaled $41.5 million compared to $40.4 million in the prior quarter. The increase was primarily driven by the full quarter inclusion of expenses from the Jefferson acquisition, including $1.0 million in nonrecurring integration expenses tied to the successful bank merger and system conversion.

In comparison to the second quarter of 2021, noninterest expenses decreased $4.5 million. The decrease was primarily driven by lower nonrecurring expenses from the integration of Providence and the branch consolidation efforts that occurred in the second quarter of 2021.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the second quarter 2022 was 58.5% compared to 58.6% in the prior quarter and 59.9% for the same period last year.

Capital Levels and Dividend

The Company’s capital levels remained strong and comfortably above the “well capitalized” levels. During the second quarter, significant loan growth increased risk-weighted assets resulting in a modest decrease in certain of the ratios. Capital levels ended the period as follows:

Total capital to risk-weighted assets

15.05%

Tier 1 capital to risk-weighted assets 

12.16%

Common equity tier 1 capital to risk-weighted assets 

11.79%

Leverage ratio 

9.70%

The Company’s Board of Directors approved an increase of $0.01 to $0.23 to its quarterly dividend payable on September 1, 2022 for shareholders of record on August 18, 2022.

The Company’s tangible book value decreased in the quarter as a result of an increase in the unrealized loss position in the investment portfolio from higher interest rates. Had such impact not occurred in the unrealized loss position of the investment portfolio, tangible book value per share would have increased by 3.1% in the period.

About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., and First Mid Wealth Management Co. First Mid is a $6.7 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, and Texas, and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 157 years. More information about the Company is available on our website at www.firstmid.com.

Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles (“GAAP”), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include “Adjusted Net Income,” “Adjusted Diluted EPS,” “Efficiency Ratio,” “Net Interest Margin, tax equivalent,” and “Tangible Book Value per Common Share”. While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.

Forward Looking Statements
This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses, and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid, are identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid’s loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines; the severity, magnitude and duration of the COVID-19 pandemic, the direct and indirect impact of such pandemic, including responses to the pandemic by the U.S., state and local governments, customers' businesses, the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect First Mid’s liquidity and capital positions, impair the ability of First Mid’s borrowers to repay outstanding loans, impair collateral values, and further increase the allowance for credit losses, and the impact of the COVID-19 pandemic on First Mid’s financial results, including possible lost revenue and increased expenses (including cost of capital), as well as possible goodwill impairment charges. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid’s financial results, are included in First Mid’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.

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

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

– Tables Follow –

 

 

 

 

 

 

 

FIRST MID BANCSHARES, INC.

Condensed Consolidated Balance Sheets

(In thousands, unaudited)

 

 

 

 

 

 

 

 

As of

 

 

June 30,

 

December 31,

 

June 30,

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

137,544

 

 

$

168,602

 

 

$

340,741

 

Investment securities

 

 

1,354,943

 

 

 

1,431,299

 

 

 

1,231,998

 

Loans (including loans held for sale)

 

4,648,663

 

 

 

3,995,523

 

 

 

3,796,304

 

Less allowance for credit losses

 

 

(59,075

)

 

 

(54,655

)

 

 

(54,597

)

Net loans

 

 

4,589,588

 

 

 

3,940,868

 

 

 

3,741,707

 

Premises and equipment, net

 

 

90,766

 

 

 

81,484

 

 

 

82,099

 

Goodwill and intangibles, net

 

 

172,871

 

 

 

141,376

 

 

 

139,995

 

Bank owned life insurance

 

 

149,917

 

 

 

132,375

 

 

 

130,734

 

Other assets

 

 

165,293

 

 

 

90,578

 

 

 

123,308

 

Total assets

 

$

6,660,922

 

 

$

5,986,582

 

 

$

5,790,582

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest bearing

 

$

1,369,756

 

 

$

1,246,673

 

 

$

1,157,009

 

Interest bearing

 

 

3,949,222

 

 

 

3,709,813

 

 

 

3,582,313

 

Total deposits

 

 

5,318,978

 

 

 

4,956,486

 

 

 

4,739,322

 

Repurchase agreement with customers

 

174,934

 

 

 

146,268

 

 

 

151,394

 

Other borrowings

 

 

386,286

 

 

 

86,446

 

 

 

112,753

 

Junior subordinated debentures

 

19,279

 

 

 

19,195

 

 

 

19,111

 

Subordinated debt

 

 

94,476

 

 

 

94,400

 

 

 

94,326

 

Other liabilities

 

 

40,701

 

 

 

49,893

 

 

 

57,610

 

Total liabilities

 

 

6,034,654

 

 

 

5,352,688

 

 

 

5,174,516

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

626,268

 

 

 

633,894

 

 

 

616,066

 

Total liabilities and stockholders' equity

$

6,660,922

 

 

$

5,986,582

 

 

$

5,790,582

 

 

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Condensed Consolidated Statements of Income

(In thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30, 2022

 

June 30, 2022

 

 

 

2022

 

 

2021

 

 

 

2022

 

2021

 

Interest income:

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

43,555

 

$

40,795

 

 

$

83,463

 

$

76,681

 

Interest on investment securities

 

 

7,623

 

 

5,739

 

 

 

14,793

 

 

10,581

 

Interest on federal funds sold & other deposits

 

105

 

 

101

 

 

 

172

 

 

189

 

Total interest income

 

 

51,283

 

 

46,635

 

 

 

98,428

 

 

87,451

 

Interest expense:

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

2,523

 

 

2,262

 

 

 

4,671

 

 

4,746

 

Interest on securities sold under agreements to repurchase

 

 

137

 

 

57

 

 

 

204

 

 

127

 

Interest on other borrowings

 

 

645

 

 

445

 

 

 

921

 

 

819

 

Interest on jr. subordinated debentures

 

 

166

 

 

139

 

 

 

312

 

 

279

 

Interest on subordinated debt

 

 

986

 

 

985

 

 

 

1,972

 

 

1,969

 

Total interest expense

 

 

4,457

 

 

3,888

 

 

 

8,080

 

 

7,940

 

Net interest income

 

 

46,826

 

 

42,747

 

 

 

90,348

 

 

79,511

 

Provision for loan losses

 

 

907

 

 

(560

)

 

 

3,859

 

 

11,576

 

Net interest income after provision for loan

 

45,919

 

 

43,307

 

 

 

86,489

 

 

67,935

 

Non-interest income:

 

 

 

 

 

 

 

 

 

Wealth management revenues

 

 

5,473

 

 

5,016

 

 

 

11,448

 

 

9,942

 

Insurance commissions

 

 

5,641

 

 

4,988

 

 

 

12,745

 

 

10,845

 

Service charges

 

 

2,236

 

 

1,539

 

 

 

4,292

 

 

2,903

 

Securities gains, net

 

 

2

 

 

73

 

 

 

2

 

 

77

 

Mortgage banking revenues

 

 

289

 

 

1,691

 

 

 

770

 

 

3,100

 

ATM/debit card revenue

 

 

3,214

 

 

3,141

 

 

 

6,112

 

 

5,840

 

Other

 

 

1,704

 

 

1,836

 

 

 

4,315

 

 

3,326

 

Total non-interest income

 

 

18,559

 

 

18,284

 

 

 

39,684

 

 

36,033

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

25,768

 

 

24,908

 

 

 

50,107

 

 

48,395

 

Net occupancy and equipment expense

 

 

6,073

 

 

5,482

 

 

 

12,228

 

 

10,452

 

Net other real estate owned (income) expense

 

218

 

 

1,966

 

 

 

185

 

 

2,044

 

FDIC insurance

 

 

436

 

 

478

 

 

 

862

 

 

930

 

Amortization of intangible assets

 

 

1,633

 

 

1,295

 

 

 

3,155

 

 

2,515

 

Stationary and supplies

 

 

325

 

 

235

 

 

 

636

 

 

551

 

Legal and professional expense

 

 

1,885

 

 

1,639

 

 

 

3,619

 

 

3,041

 

Marketing and donations

 

 

706

 

 

507

 

 

 

1,579

 

 

1,009

 

Other

 

 

4,471

 

 

9,503

 

 

 

9,569

 

 

14,676

 

Total non-interest expense

 

 

41,515

 

 

46,013

 

 

 

81,940

 

 

83,613

 

Income before income taxes

 

 

22,963

 

 

15,578

 

 

 

44,233

 

 

20,355

 

Income taxes

 

 

5,205

 

 

3,357

 

 

 

9,859

 

 

4,025

 

Net income

 

$

17,758

 

$

12,221

 

 

$

34,374

 

$

16,330

 

 

 

 

 

 

 

 

 

 

 

Per Share Information

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.87

 

$

0.68

 

 

$

1.73

 

$

0.92

 

Diluted earnings per common share

 

 

0.86

 

 

0.68

 

 

 

1.72

 

 

0.92

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

20,448,799

 

 

18,067,190

 

 

 

19,875,516

 

 

17,685,679

 

Diluted weighted average shares outstanding

 

20,529,523

 

 

18,120,210

 

 

 

19,947,227

 

 

17,738,699

 

 

 

 

 

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Condensed Consolidated Statements of Income

(In thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

 

2022

 

 

2022

 

 

2021

 

2021

 

 

2021

 

Interest income:

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

43,555

 

$

39,908

 

 

$

39,711

 

$

43,292

 

$

40,795

 

Interest on investment securities

 

 

7,623

 

 

7,170

 

 

 

6,500

 

 

5,835

 

 

5,739

 

Interest on federal funds sold & other deposits

 

 

105

 

 

67

 

 

 

88

 

 

136

 

 

101

 

Total interest income

 

 

51,283

 

 

47,145

 

 

 

46,299

 

 

49,263

 

 

46,635

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

2,523

 

 

2,148

 

 

 

2,057

 

 

2,234

 

 

2,262

 

Interest on securities sold under agreements to repurchase

 

 

137

 

 

67

 

 

 

52

 

 

52

 

 

57

 

Interest on other borrowings

 

 

645

 

 

276

 

 

 

336

 

 

359

 

 

445

 

Interest on jr. subordinated debentures

 

 

166

 

 

146

 

 

 

125

 

 

137

 

 

139

 

Interest on subordinated debt

 

 

986

 

 

986

 

 

 

985

 

 

985

 

 

985

 

Total interest expense

 

 

4,457

 

 

3,623

 

 

 

3,555

 

 

3,767

 

 

3,888

 

Net interest income

 

 

46,826

 

 

43,522

 

 

 

42,744

 

 

45,496

 

 

42,747

 

Provision for loan losses

 

 

907

 

 

2,952

 

 

 

2,472

 

 

1,103

 

 

(560

)

Net interest income after provision for loan

 

 

45,919

 

 

40,570

 

 

 

40,272

 

 

44,393

 

 

43,307

 

Non-interest income:

 

 

 

 

 

 

 

 

 

 

Wealth management revenues

 

 

5,473

 

 

5,975

 

 

 

6,261

 

 

4,204

 

 

5,016

 

Insurance commissions

 

 

5,641

 

 

7,104

 

 

 

4,150

 

 

3,932

 

 

4,988

 

Service charges

 

 

2,236

 

 

2,056

 

 

 

2,067

 

 

1,838

 

 

1,539

 

Securities gains, net

 

 

2

 

 

-

 

 

 

36

 

 

11

 

 

73

 

Mortgage banking revenues

 

 

289

 

 

444

 

 

 

890

 

 

1,477

 

 

1,691

 

ATM/debit card revenue

 

 

3,214

 

 

2,898

 

 

 

3,074

 

 

3,060

 

 

3,141

 

Other

 

 

1,704

 

 

2,611

 

 

 

1,646

 

 

1,837

 

 

1,836

 

Total non-interest income

 

 

18,559

 

 

21,088

 

 

 

18,124

 

 

16,359

 

 

18,284

 

Non-interest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

25,768

 

 

24,302

 

 

 

20,424

 

 

21,092

 

 

24,908

 

Net occupancy and equipment expense

 

 

6,073

 

 

6,155

 

 

 

5,712

 

 

5,382

 

 

5,482

 

Net other real estate owned (income) expense

 

 

218

 

 

(33

)

 

 

315

 

 

1,507

 

 

1,966

 

FDIC insurance

 

 

436

 

 

426

 

 

 

406

 

 

268

 

 

478

 

Amortization of intangible assets

 

 

1,633

 

 

1,522

 

 

 

1,462

 

 

1,414

 

 

1,295

 

Stationary and supplies

 

 

325

 

 

311

 

 

 

311

 

 

299

 

 

235

 

Legal and professional expense

 

 

1,885

 

 

1,734

 

 

 

1,811

 

 

1,878

 

 

1,639

 

Marketing and donations

 

 

706

 

 

873

 

 

 

1,915

 

 

679

 

 

507

 

Other

 

 

4,471

 

 

5,098

 

 

 

4,038

 

 

3,802

 

 

9,503

 

Total non-interest expense

 

 

41,515

 

 

40,388

 

 

 

36,394

 

 

36,321

 

 

46,013

 

Income before income taxes

 

 

22,963

 

 

21,270

 

 

 

22,002

 

 

24,431

 

 

15,578

 

Income taxes

 

 

5,205

 

 

4,654

 

 

 

5,168

 

 

6,105

 

 

3,357

 

Net income

 

$

17,758

 

$

16,616

 

 

$

16,834

 

$

18,326

 

$

12,221

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Information

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.87

 

$

0.86

 

 

$

0.93

 

$

1.01

 

$

0.68

 

Diluted earnings per common share

 

 

0.86

 

 

0.86

 

 

 

0.93

 

 

1.01

 

 

0.68

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

20,448,799

 

 

19,295,860

 

 

 

18,086,949

 

 

18,083,126

 

 

18,067,190

 

Diluted weighted average shares outstanding

 

 

20,529,523

 

 

19,358,457

 

 

 

18,135,380

 

 

18,136,146

 

 

18,120,210

 

 

 

 

 

 

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Consolidated Financial Highlights and Ratios

(Dollars in thousands, except per share data)

(Unaudited)

 

 

As of and for the Quarter Ended

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Loan Portfolio

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

141,072

 

 

$

131,504

 

 

$

145,118

 

 

$

180,061

 

 

$

141,568

 

Farm real estate loans

 

 

350,159

 

 

 

280,993

 

 

 

279,272

 

 

 

278,788

 

 

 

277,362

 

1-4 Family residential properties

 

 

424,230

 

 

 

417,232

 

 

 

400,313

 

 

 

412,565

 

 

 

394,902

 

Multifamily residential properties

 

 

330,600

 

 

 

369,926

 

 

 

298,942

 

 

 

306,911

 

 

 

274,910

 

Commercial real estate

 

 

1,976,654

 

 

 

1,965,321

 

 

 

1,666,198

 

 

 

1,583,255

 

 

 

1,480,198

 

Loans secured by real estate

 

 

3,222,715

 

 

 

3,164,976

 

 

 

2,789,843

 

 

 

2,761,580

 

 

 

2,568,940

 

Agricultural operating loans

 

 

142,406

 

 

 

121,708

 

 

 

151,484

 

 

 

126,534

 

 

 

123,101

 

Commercial and industrial loans

 

 

1,036,987

 

 

 

935,454

 

 

 

832,008

 

 

 

835,860

 

 

 

864,554

 

Consumer loans

 

 

94,828

 

 

 

89,685

 

 

 

78,442

 

 

 

80,064

 

 

 

84,541

 

All other loans

 

 

151,727

 

 

 

142,738

 

 

 

143,746

 

 

 

143,731

 

 

 

155,168

 

Total loans

 

 

4,648,663

 

 

 

4,454,561

 

 

 

3,995,523

 

 

 

3,947,769

 

 

 

3,796,304

 

 

 

 

 

 

 

 

 

 

 

 

Deposit Portfolio

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand deposits

 

$

1,369,756

 

 

$

1,373,881

 

 

$

1,246,673

 

 

$

1,242,950

 

 

$

1,157,009

 

Interest bearing demand deposits

 

 

1,453,932

 

 

 

1,482,556

 

 

 

1,452,765

 

 

 

1,416,361

 

 

 

1,418,717

 

Savings deposits

 

 

683,944

 

 

 

685,228

 

 

 

626,523

 

 

 

612,404

 

 

 

598,232

 

Money Market

 

 

1,158,724

 

 

 

1,280,129

 

 

 

1,068,473

 

 

 

1,075,852

 

 

 

842,771

 

Time deposits

 

 

652,622

 

 

 

665,511

 

 

 

562,052

 

 

 

640,995

 

 

 

722,593

 

Total deposits

 

 

5,318,978

 

 

 

5,487,305

 

 

 

4,956,486

 

 

 

4,988,562

 

 

 

4,739,322

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

 

 

 

Non-performing loans

 

$

19,981

 

 

$

22,465

 

 

$

22,036

 

 

$

27,723

 

 

$

30,410

 

Non-performing assets

 

 

24,190

 

 

 

27,269

 

 

 

27,055

 

 

 

33,359

 

 

 

37,648

 

Net charge-offs (recoveries)

 

 

307

 

 

 

(5

)

 

 

1,800

 

 

 

1,717

 

 

 

261

 

Allowance for credit losses to non-performing loans

 

295.66

%

 

 

260.29

%

 

 

248.03

%

 

 

194.72

%

 

 

179.54

%

Allowance for credit losses to total loans outstanding

 

1.27

%

 

 

1.31

%

 

1.37%1

 

1.39%1

 

1.50%1

Nonperforming loans to total loans

 

 

0.43

%

 

 

0.50

%

 

 

0.55

%

 

 

0.70

%

 

 

0.80

%

Nonperforming assets to total assets

 

 

0.36

%

 

 

0.41

%

 

 

0.45

%

 

 

0.55

%

 

 

0.65

%

Special Mention loans

 

 

35,849

 

 

 

64,160

 

 

 

66,235

 

 

 

76,222

 

 

 

86,915

 

Substandard and Doubtful loans

 

 

38,155

 

 

 

38,801

 

 

 

46,862

 

 

 

51,119

 

 

 

56,387

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

20,448,799

 

 

 

20,437,183

 

 

 

18,080,303

 

 

 

18,083,126

 

 

 

18,078,474

 

Book value per common share

 

$

30.63

 

 

$

32.61

 

 

$

35.06

 

 

$

34.69

 

 

$

34.08

 

Tangible book value per common share(2)

 

22.17

 

 

 

24.07

 

 

 

27.24

 

 

 

26.80

 

 

 

26.33

 

Market price of stock

 

 

35.67

 

 

 

38.49

 

 

 

42.79

 

 

 

41.06

 

 

 

40.51

 

 

 

 

 

 

 

 

 

 

 

 

Key Performance Ratios and Metrics

 

 

 

 

 

 

 

 

 

 

End of period earning assets

 

$

6,024,815

 

 

$

6,038,542

 

 

$

5,504,517

 

 

$

5,542,199

 

 

$

5,269,882

 

Average earning assets

 

 

5,975,821

 

 

 

5,817,752

 

 

 

5,539,819

 

 

 

5,396,239

 

 

 

5,380,411

 

Average rate on average earning assets (tax equivalent)

 

3.50

%

 

 

3.33

%

 

 

3.37

%

 

 

3.67

%

 

 

3.52

%

Average rate on cost of funds

 

 

0.30

%

 

 

0.26

%

 

 

0.26

%

 

 

0.29

%

 

 

0.30

%

Net interest margin (tax equivalent)(2)

 

 

3.20

%

 

 

3.07

%

 

 

3.11

%

 

 

3.38

%

 

 

3.22

%

Return on average assets

 

 

1.08

%

 

 

1.05

%

 

 

1.12

%

 

 

1.25

%

 

 

0.84

%

Return on average common equity

 

 

11.02

%

 

 

9.95

%

 

 

10.74

%

 

 

11.67

%

 

 

8.00

%

Efficiency ratio (tax equivalent)(2)

 

 

58.45

%

 

 

58.59

%

 

 

55.75

%

 

 

52.73

%

 

 

59.91

%

Full-time equivalent employees

 

 

1,025

 

 

 

1,050

 

 

 

965

 

 

 

960

 

 

 

960

 

 

 

 

 

 

 

 

 

 

 

 

1Excludes Paycheck Protection Loans

 

 

2Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.

 

 

 

 

 

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Net Interest Margin

(In thousands, unaudited)

 

For the Quarter Ended June 30, 2022

 

QTD Average

 

 

 

Average

 

Balance

 

Interest

 

Rate

INTEREST EARNING ASSETS

 

 

 

 

 

Interest bearing deposits

$

52,006

 

 

$

89

 

0.69

%

Federal funds sold

 

4,660

 

 

 

6

 

0.52

%

Certificates of deposits investments

 

1,912

 

 

 

10

 

2.10

%

Investment Securities:

 

 

 

 

 

Taxable (total less municipals)

 

1,098,389

 

 

 

5,346

 

1.95

%

Tax-exempt (Municipals)

 

337,261

 

 

 

2,882

 

3.42

%

Loans (net of unearned income)

 

4,481,593

 

 

 

43,749

 

3.92

%

 

 

 

 

 

 

Total interest earning assets

 

5,975,821

 

 

 

52,082

 

3.50

%

 

 

 

 

 

 

NONEARNING ASSETS

 

 

 

 

 

Cash and due from banks

 

114,362

 

 

 

 

 

Premises and equipment

 

89,605

 

 

 

 

 

Other nonearning assets

 

442,860

 

 

 

 

 

Allowance for loan losses

 

(58,744

)

 

 

 

 

 

 

 

 

 

 

Total assets

$

6,563,904

 

 

 

 

 

 

 

 

 

 

 

INTEREST BEARING LIABILITIES

 

 

 

 

 

Demand deposits

$

2,656,507

 

 

$

1,804

 

0.27

%

Savings deposits

 

684,708

 

 

 

124

 

0.07

%

Time deposits

 

646,565

 

 

 

595

 

0.37

%

Total interest bearing deposits

 

3,987,780

 

 

 

2,523

 

0.25

%

Repurchase agreements

 

178,632

 

 

 

137

 

0.31

%

FHLB advances

 

230,636

 

 

 

640

 

1.11

%

Federal funds purchased

 

1,341

 

 

 

5

 

1.50

%

Subordinated debt

 

94,451

 

 

 

986

 

4.19

%

Jr. subordinated debentures

 

19,252

 

 

 

166

 

3.46

%

Other debt

 

55

 

 

 

-

 

0.00

%

Total borrowings

 

524,367

 

 

 

1,934

 

1.48

%

Total interest bearing liabilities

 

4,512,147

 

 

 

4,457

 

0.40

%

 

 

 

 

 

 

NONINTEREST BEARING LIABILITIES

 

 

 

 

 

Demand deposits

 

1,363,548

 

 

Average cost of funds

0.30

%

Other liabilities

 

43,900

 

 

 

 

 

Stockholders' equity

 

644,309

 

 

 

 

 

 

 

 

 

 

 

Total liabilities & stockholders' equity

$

6,563,904

 

 

 

 

 

 

 

 

 

 

 

Net Interest Earnings / Spread

 

 

$

47,625

 

3.10

%

 

 

 

 

 

 

Impact of Non-Interest Bearing Funds

 

 

 

 

0.10

%

 

 

 

 

 

 

Tax effected yield on interest earning assets

 

 

 

3.20

%

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Reconciliation of Non-GAAP Financial Measures

(In thousands, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Quarter Ended

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

June 30,

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income as reported

 

$

46,826

 

 

$

43,522

 

 

$

42,744

 

 

$

45,496

 

 

$

42,747

 

Net interest income, (tax equivalent)

 

 

47,625

 

 

 

44,292

 

 

 

43,492

 

 

 

46,165

 

 

 

43,359

 

Average earning assets

 

 

5,975,821

 

 

 

5,817,752

 

 

 

5,539,819

 

 

 

5,396,239

 

 

 

5,380,411

 

Net interest margin (tax equivalent)

 

 

3.20

%

 

 

3.07

%

 

 

3.11

%

 

 

3.38

%

 

 

3.22

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stockholder's equity

 

$

626,268

 

 

$

666,385

 

 

$

633,894

 

 

$

627,225

 

 

$

616,066

 

Goodwill and intangibles, net

 

 

172,871

 

 

 

174,499

 

 

 

141,376

 

 

 

142,656

 

 

 

139,995

 

Common shares outstanding

 

 

20,449

 

 

 

20,437

 

 

 

18,080

 

 

 

18,083

 

 

 

18,078

 

Tangible Book Value per common share

 

$

22.17

 

 

$

24.07

 

 

$

27.24

 

 

$

26.80

 

 

$

26.33

 

 

 

 

 

 

 

 

 

 

 

 


FIRST MID BANCSHARES, INC.

Reconciliation of Non-GAAP Financial Measures

(In thousands, except per share data, unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the Quarter Ended

 

 

June 30,

 

March 31,

 

December 31,

 

September 30,

June 30,

 

 

 

2022

 

 

 

2022

 

 

 

2021

 

 

 

2021

 

 

 

2021

 

Adjusted earnings Reconciliation

 

 

 

 

 

 

 

 

 

 

Net Income - GAAP

 

$

17,758

 

 

$

16,616

 

 

$

16,834

 

 

$

18,326

 

 

$

12,221

 

Adjustments (post-tax):(1)

 

 

 

 

 

 

 

 

 

 

Acquisition ACL on non-PCD assets in provision expense

 

-

 

 

 

1,580

 

 

 

-

 

 

 

-

 

 

 

-

 

Branch optimization costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

999

 

 

 

960

 

Integration and acquisition expenses

 

 

777

 

 

 

469

 

 

 

225

 

 

 

348

 

 

 

4,634

 

Total non-recurring adjustments (non-GAAP)

$

777

 

 

$

2,049

 

 

$

225

 

 

$

1,347

 

 

$

5,595

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings - non-GAAP

 

$

18,535

 

 

$

18,665

 

 

$

17,059

 

 

$

19,673

 

 

$

17,816

 

Adjusted diluted earnings per share (non-GAAP)

$

0.90

 

 

$

0.96

 

 

$

0.94

 

 

$

1.08

 

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency Ratio Reconciliation

 

 

 

 

 

 

 

 

 

 

Noninterest expense - GAAP

 

$

41,515

 

 

$

40,388

 

 

$

36,394

 

 

$

36,321

 

 

$

46,013

 

Other real estate owned property income (expense)

 

(218

)

 

 

33

 

 

 

(315

)

 

 

(242

)

 

 

(751

)

Amortization of intangibles

 

 

(1,633

)

 

 

(1,522

)

 

 

(1,462

)

 

 

(1,414

)

 

 

(1,295

)

Branch optimization costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,265

)

 

 

(1,215

)

integration and acquisition expenses

 

 

(983

)

 

 

(594

)

 

 

(285

)

 

 

(440

)

 

 

(5,866

)

Adjusted noninterest expense (non-GAAP)

 

$

38,681

 

 

$

38,305

 

 

$

34,332

 

 

$

32,960

 

 

$

36,886

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income -GAAP

 

$

46,826

 

 

$

43,522

 

 

$

42,744

 

 

$

45,496

 

 

$

42,747

 

Effect of tax-exempt income(1)

 

 

799

 

 

 

770

 

 

 

748

 

 

 

669

 

 

 

612

 

Adjusted net interest income (non-GAAP)

 

$

47,625

 

 

$

44,292

 

 

$

43,492

 

 

$

46,165

 

 

$

43,359

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income - GAAP

 

$

18,559

 

 

$

21,088

 

 

$

18,124

 

 

$

16,359

 

 

$

18,284

 

Gain on sales of investment securities, net

 

 

(2

)

 

 

-

 

 

 

(36

)

 

 

(11

)

 

 

(73

)

Adjusted noninterest income (non-GAAP)

 

$

18,557

 

 

$

21,088

 

 

$

18,088

 

 

$

16,348

 

 

$

18,211

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted total revenue (non-GAAP)

 

$

66,182

 

 

$

65,380

 

 

$

61,580

 

 

$

62,513

 

 

$

61,570

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (non-GAAP)

 

 

58.45

%

 

 

58.59

%

 

 

55.75

%

 

 

52.73

%

 

 

59.91

%

 

 

 

 

 

 

 

 

 

 

 

(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.