MATTOON, Ill., Oct. 27, 2022 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended September 30, 2022.
Highlights
- Net income of $17.9 million, or $0.88 diluted EPS
- Adjusted net income (non-GAAP) of $18.5 million, or $0.90 diluted EPS
- Solid loan growth of $71.6 million, or 1.5% for the quarter
- Strong asset quality ratios with adversely classified loans declining by 15.3% for the quarter
- Board of Directors declares regular quarterly dividend of $0.23 per share
“Our third quarter results were highlighted by solid loan growth and the strength in the credit quality of our loan portfolio,” said Joe Dively, Chairman and Chief Executive Officer. “Our diversified revenue sources continued to perform well with wealth management and insurance driving a year-over-year increase in noninterest income, despite significantly lower mortgage banking revenues. Net interest income and margin increased in the period, despite the significant movement in interest rates by the Federal Reserve adding pressure on funding costs.”
Net Interest Income
Net interest income for the third quarter of 2022 increased by $1.4 million, or 3.1% compared to the second quarter of 2022. Interest income increased by $5.5 million primarily driven by loan growth and higher interest rates. Interest expense increased by $4.0 million on increased rates and higher balances. Accretion income was the same as the previous quarter at $0.9 million.
In comparison to the third quarter of 2021, net interest income increased $2.8 million, or 6.1%. The increase was primarily the result of organic loan growth, the impact of the Jefferson Bank and Trust (“Jefferson”) acquisition, and rising interest rates.
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.21% for the third quarter of 2022, which was an increase of 1 basis point compared to the prior quarter. Earning asset yields increased by 27 basis points and the average cost of funds increased 26 basis points.
In comparison to the third quarter of last year, the net interest margin decreased 17 basis points. The primary reasons for the decrease were due to $0.7 million of lower accretion income and $5.1 million of lower PPP fee income compared to the third quarter of 2021.
Loan Portfolio
Total loans ended the quarter at $4.72 billion, representing an increase of $71.6 million compared to the prior quarter. Growth occurred in all sectors, except multifamily, which had multiple payoffs in the quarter from customer asset sales.
Asset Quality
First Mid’s asset quality continues to be very strong and positioned well for the varying economic cycles. On a combined basis, special mention and substandard loans decreased in the quarter by $11.3 million. As of September 30, 2022, the allowance for credit losses (“ACL”) decreased by $0.3 million to $58.8 million with an ending ACL to total loans ratio of 1.25%. In addition, the Company has $7.6 million, or 16 basis points, of discount remaining on purchased loans. Provision expense was recorded in the amount of $0.1 million and net charge offs totaled $0.4 million. Also, at the end of the third quarter, the ratio of non-performing loans to total loans was 0.44%, and the ACL to non-performing loans was 282%. The ratio of nonperforming assets to total assets was 0.38% at quarter end. Nonperforming loans increased $0.8 million in the period to $20.8 million.
Deposits
Total deposits ended the quarter at $5.48 billion, which represented an increase of $164.2 million from the prior quarter. The increase was primarily in money market balances where funds were moved from lower interest-bearing products and balances added from customer asset sales. The Company’s average rate on cost of funds was 0.56% compared to 0.30% in the prior quarter, and 0.29% versus the third quarter of 2021.
Noninterest Income
Noninterest income for the third quarter of 2022 was $16.8 million compared to $18.6 million in the second quarter of 2022. The decrease was expected as the third quarter typically reflects a seasonal decline in our wealth management revenues from farmland sales and in insurance renewals. Wealth management revenue was down $0.6 million and insurance revenue was down $1.5 million from the prior quarter. These declines were partially offset by increases in service charges and other income.
In comparison to the third quarter of 2021, noninterest income increased $0.4 million, or 2.6%. This increase is a testament to the strength of our diversification in revenues with wealth management and insurance driving the growth, which more than offset mortgage banking declines. The year-over-year increase in wealth management and insurance was a combined 10.6%.
Noninterest Expenses
Noninterest expense for the third quarter of 2022 totaled $41.5 million, which was flat compared to the prior quarter. The current quarter included $0.7 million of nonrecurring integration expenses for the Jefferson acquisition compared to $1.0 million in the second quarter. The current quarter also included an increase of $0.4 million of provision for unfunded commitments.
In comparison to the third quarter of 2021, noninterest expenses increased $5.2 million. The increase was primarily driven by the additional expense related to the Jefferson acquisition and overall inflationary changes.
The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the third quarter 2022 was 59.6% compared to 58.5% in the prior quarter and 52.7% for the same period last year.
Capital Levels and Dividend
The Company’s capital levels remained strong and comfortably above the “well capitalized” levels. Capital levels ended the period as follows:
| Total capital to risk-weighted assets |
15.11% |
|
| Tier 1 capital to risk-weighted assets |
12.28% |
|
| Common equity tier 1 capital to risk-weighted assets |
11.91% |
|
| Leverage ratio |
9.52% |
|
The Company’s Board of Directors approved a regular quarterly dividend of $0.23 payable on December 1, 2022 for shareholders of record on November 17, 2022.
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 |
|
September 30, |
|
|
December 31, |
|
|
September 30, |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
| Assets |
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
$ |
160,954 |
|
|
$ |
168,602 |
|
|
$ |
345,206 |
|
| Investment securities |
1,235,505 |
|
|
1,431,299 |
|
|
1,357,035 |
|
| Loans (including loans held for sale) |
4,720,290 |
|
|
3,995,523 |
|
|
3,947,769 |
|
| Less allowance for credit losses |
(58,777 |
) |
|
(54,655 |
) |
|
(53,983 |
) |
| Net loans |
4,661,513 |
|
|
3,940,868 |
|
|
3,893,786 |
|
| Premises and equipment, net |
90,659 |
|
|
81,484 |
|
|
81,823 |
|
| Goodwill and intangibles, net |
170,897 |
|
|
141,376 |
|
|
142,656 |
|
| Bank owned life insurance |
150,831 |
|
|
132,375 |
|
|
131,547 |
|
| Other assets |
181,024 |
|
|
90,578 |
|
|
91,306 |
|
| Total assets |
$ |
6,651,383 |
|
|
$ |
5,986,582 |
|
|
$ |
6,043,359 |
|
|
|
|
|
|
|
|
|
|
| Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
| Non-interest bearing |
$ |
1,334,686 |
|
|
$ |
1,246,673 |
|
|
$ |
1,242,950 |
|
| Interest bearing |
4,148,512 |
|
|
3,709,813 |
|
|
3,745,612 |
|
| Total deposits |
5,483,198 |
|
|
4,956,486 |
|
|
4,988,562 |
|
| Repurchase agreement with customers |
220,707 |
|
|
146,268 |
|
|
149,891 |
|
| Other borrowings |
181,232 |
|
|
86,446 |
|
|
112,641 |
|
| Junior subordinated debentures |
19,322 |
|
|
19,195 |
|
|
19,153 |
|
| Subordinated debt |
94,515 |
|
|
94,400 |
|
|
94,363 |
|
| Other liabilities |
51,694 |
|
|
49,893 |
|
|
51,524 |
|
| Total liabilities |
6,050,668 |
|
|
5,352,688 |
|
|
5,416,134 |
|
|
|
|
|
|
|
|
|
|
| Total stockholders' equity |
600,715 |
|
|
633,894 |
|
|
627,225 |
|
| Total liabilities and stockholders' equity |
$ |
6,651,383 |
|
|
$ |
5,986,582 |
|
|
$ |
6,043,359 |
|
|
| 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, |
|
2022 |
|
2021 |
|
2022 |
|
2021 |
| Interest income: |
|
|
|
|
|
|
|
| Interest and fees on loans |
$ |
49,278 |
|
$ |
43,292 |
|
$ |
132,741 |
|
$ |
119,973 |
| Interest on investment securities |
7,302 |
|
5,835 |
|
22,095 |
|
16,416 |
| Interest on federal funds sold & other deposits |
174 |
|
136 |
|
346 |
|
325 |
| Total interest income |
56,754 |
|
49,263 |
|
155,182 |
|
136,714 |
| Interest expense: |
|
|
|
|
|
|
|
| Interest on deposits |
4,915 |
|
2,234 |
|
9,586 |
|
6,980 |
| Interest on securities sold under agreements to repurchase |
428 |
|
52 |
|
632 |
|
179 |
| Interest on other borrowings |
1,927 |
|
359 |
|
2,848 |
|
1,178 |
| Interest on jr. subordinated debentures |
241 |
|
137 |
|
553 |
|
416 |
| Interest on subordinated debt |
986 |
|
985 |
|
2,958 |
|
2,954 |
| Total interest expense |
8,497 |
|
3,767 |
|
16,577 |
|
11,707 |
| Net interest income |
48,257 |
|
45,496 |
|
138,605 |
|
125,007 |
| Provision for loan losses |
142 |
|
1,103 |
|
4,001 |
|
12,679 |
| Net interest income after provision for loan |
48,115 |
|
44,393 |
|
134,604 |
|
112,328 |
| Non-interest income: |
|
|
|
|
|
|
|
| Wealth management revenues |
4,843 |
|
4,204 |
|
16,291 |
|
14,146 |
| Insurance commissions |
4,158 |
|
3,932 |
|
16,903 |
|
14,777 |
| Service charges |
2,445 |
|
1,838 |
|
6,737 |
|
4,741 |
| Securities gains, net |
79 |
|
11 |
|
81 |
|
88 |
| Mortgage banking revenues |
355 |
|
1,477 |
|
1,125 |
|
4,577 |
| ATM/debit card revenue |
3,101 |
|
3,060 |
|
9,213 |
|
8,900 |
| Other |
1,810 |
|
1,837 |
|
6,125 |
|
5,163 |
| Total non-interest income |
16,791 |
|
16,359 |
|
56,475 |
|
52,392 |
| Non-interest expense: |
|
|
|
|
|
|
|
| Salaries and employee benefits |
24,877 |
|
21,092 |
|
74,984 |
|
69,487 |
| Net occupancy and equipment expense |
5,903 |
|
5,382 |
|
18,131 |
|
15,834 |
| Net other real estate owned (income) expense |
58 |
|
1,507 |
|
243 |
|
3,551 |
| FDIC insurance |
479 |
|
268 |
|
1,341 |
|
1,198 |
| Amortization of intangible assets |
1,598 |
|
1,414 |
|
4,753 |
|
3,929 |
| Stationary and supplies |
361 |
|
299 |
|
997 |
|
850 |
| Legal and professional expense |
1,770 |
|
1,878 |
|
5,389 |
|
4,919 |
| Marketing and donations |
739 |
|
679 |
|
2,318 |
|
1,688 |
| Other |
5,764 |
|
3,802 |
|
15,333 |
|
18,478 |
| Total non-interest expense |
41,549 |
|
36,321 |
|
123,489 |
|
119,934 |
| Income before income taxes |
23,357 |
|
24,431 |
|
67,590 |
|
44,786 |
| Income taxes |
5,418 |
|
6,105 |
|
15,277 |
|
10,130 |
| Net income |
$ |
17,939 |
|
$ |
18,326 |
|
$ |
52,313 |
|
$ |
34,656 |
|
|
|
|
|
|
|
|
| Per Share Information |
|
|
|
|
|
|
|
| Basic earnings per common share |
$ |
0.88 |
|
$ |
1.01 |
|
$ |
2.61 |
|
$ |
1.94 |
| Diluted earnings per common share |
0.88 |
|
1.01 |
|
2.60 |
|
1.94 |
|
|
|
|
|
|
|
|
| Weighted average shares outstanding |
20,454,669 |
|
18,083,126 |
|
20,070,687 |
|
17,819,619 |
| Diluted weighted average shares outstanding |
20,535,215 |
|
18,136,146 |
|
20,145,435 |
|
17,872,639 |
|
| 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, |
|
2022 |
|
2022 |
|
2022 |
|
2021 |
|
2021 |
| Interest income: |
|
|
|
|
|
|
|
|
|
| Interest and fees on loans |
$ |
49,278 |
|
$ |
43,555 |
|
$ |
39,908 |
|
$ |
39,711 |
|
$ |
43,292 |
| Interest on investment securities |
7,302 |
|
7,623 |
|
7,170 |
|
6,500 |
|
5,835 |
| Interest on federal funds sold & other deposits |
174 |
|
105 |
|
67 |
|
88 |
|
136 |
| Total interest income |
56,754 |
|
51,283 |
|
47,145 |
|
46,299 |
|
49,263 |
| Interest expense: |
|
|
|
|
|
|
|
|
|
| Interest on deposits |
4,915 |
|
2,523 |
|
2,148 |
|
2,057 |
|
2,234 |
| Interest on securities sold under agreements to repurchase |
428 |
|
137 |
|
67 |
|
52 |
|
52 |
| Interest on other borrowings |
1,927 |
|
645 |
|
276 |
|
336 |
|
359 |
| Interest on jr. subordinated debentures |
241 |
|
166 |
|
146 |
|
125 |
|
137 |
| Interest on subordinated debt |
986 |
|
986 |
|
986 |
|
985 |
|
985 |
| Total interest expense |
8,497 |
|
4,457 |
|
3,623 |
|
3,555 |
|
3,767 |
| Net interest income |
48,257 |
|
46,826 |
|
43,522 |
|
42,744 |
|
45,496 |
| Provision for loan losses |
142 |
|
907 |
|
2,952 |
|
2,472 |
|
1,103 |
| Net interest income after provision for loan |
48,115 |
|
45,919 |
|
40,570 |
|
40,272 |
|
44,393 |
| Non-interest income: |
|
|
|
|
|
|
|
|
|
| Wealth management revenues |
4,843 |
|
5,473 |
|
5,975 |
|
6,261 |
|
4,204 |
| Insurance commissions |
4,158 |
|
5,641 |
|
7,104 |
|
4,150 |
|
3,932 |
| Service charges |
2,445 |
|
2,236 |
|
2,056 |
|
2,067 |
|
1,838 |
| Securities gains, net |
79 |
|
2 |
|
- |
|
36 |
|
11 |
| Mortgage banking revenues |
355 |
|
289 |
|
444 |
|
890 |
|
1,477 |
| ATM/debit card revenue |
3,101 |
|
3,214 |
|
2,898 |
|
3,074 |
|
3,060 |
| Other |
1,810 |
|
1,704 |
|
2,611 |
|
1,646 |
|
1,837 |
| Total non-interest income |
16,791 |
|
18,559 |
|
21,088 |
|
18,124 |
|
16,359 |
| Non-interest expense: |
|
|
|
|
|
|
|
|
|
| Salaries and employee benefits |
24,877 |
|
25,768 |
|
24,302 |
|
20,424 |
|
21,092 |
| Net occupancy and equipment expense |
5,903 |
|
6,073 |
|
6,155 |
|
5,712 |
|
5,382 |
| Net other real estate owned (income) expense |
58 |
|
218 |
|
(33) |
|
315 |
|
1,507 |
| FDIC insurance |
479 |
|
436 |
|
426 |
|
406 |
|
268 |
| Amortization of intangible assets |
1,598 |
|
1,633 |
|
1,522 |
|
1,462 |
|
1,414 |
| Stationary and supplies |
361 |
|
325 |
|
311 |
|
311 |
|
299 |
| Legal and professional expense |
1,770 |
|
1,885 |
|
1,734 |
|
1,811 |
|
1,878 |
| Marketing and donations |
739 |
|
706 |
|
873 |
|
1,915 |
|
679 |
| Other |
5,764 |
|
4,471 |
|
5,098 |
|
4,038 |
|
3,802 |
| Total non-interest expense |
41,549 |
|
41,515 |
|
40,388 |
|
36,394 |
|
36,321 |
| Income before income taxes |
23,357 |
|
22,963 |
|
21,270 |
|
22,002 |
|
24,431 |
| Income taxes |
5,418 |
|
5,205 |
|
4,654 |
|
5,168 |
|
6,105 |
| Net income |
$ |
17,939 |
|
$ |
17,758 |
|
$ |
16,616 |
|
$ |
16,834 |
|
$ |
18,326 |
|
|
|
|
|
|
|
|
|
|
| Per Share Information |
|
|
|
|
|
|
|
|
|
| Basic earnings per common share |
$ |
0.88 |
|
$ |
0.87 |
|
$ |
0.86 |
|
$ |
0.93 |
|
$ |
1.01 |
| Diluted earnings per common share |
0.88 |
|
0.86 |
|
0.86 |
|
0.93 |
|
1.01 |
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding |
20,454,669 |
|
20,448,799 |
|
19,295,860 |
|
18,086,949 |
|
18,083,126 |
| Diluted weighted average shares outstanding |
20,535,215 |
|
20,529,523 |
|
19,358,457 |
|
18,135,380 |
|
18,136,146 |
|
| 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, |
|
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Construction and land development |
|
$ |
142,801 |
|
|
$ |
141,072 |
|
|
$ |
131,504 |
|
|
$ |
145,118 |
|
|
$ |
180,061 |
|
| Farm real estate loans |
|
360,424 |
|
|
350,159 |
|
|
280,993 |
|
|
279,272 |
|
|
278,788 |
|
| 1-4 Family residential properties |
|
436,625 |
|
|
424,230 |
|
|
417,232 |
|
|
400,313 |
|
|
412,565 |
|
| Multifamily residential properties |
|
298,321 |
|
|
330,600 |
|
|
369,926 |
|
|
298,942 |
|
|
306,911 |
|
| Commercial real estate |
|
1,996,338 |
|
|
1,976,654 |
|
|
1,965,321 |
|
|
1,666,198 |
|
|
1,583,255 |
|
| Loans secured by real estate |
|
3,234,509 |
|
|
3,222,715 |
|
|
3,164,976 |
|
|
2,789,843 |
|
|
2,761,580 |
|
| Agricultural operating loans |
|
160,511 |
|
|
142,406 |
|
|
121,708 |
|
|
151,484 |
|
|
126,534 |
|
| Commercial and industrial loans |
|
1,064,033 |
|
|
1,036,987 |
|
|
935,454 |
|
|
832,008 |
|
|
835,860 |
|
| Consumer loans |
|
100,783 |
|
|
94,828 |
|
|
89,685 |
|
|
78,442 |
|
|
80,064 |
|
| All other loans |
|
160,454 |
|
|
151,727 |
|
|
142,738 |
|
|
143,746 |
|
|
143,731 |
|
| Total loans |
|
4,720,290 |
|
|
4,648,663 |
|
|
4,454,561 |
|
|
3,995,523 |
|
|
3,947,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposit Portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest bearing demand deposits |
|
$ |
1,334,686 |
|
|
$ |
1,369,756 |
|
|
$ |
1,373,881 |
|
|
$ |
1,246,673 |
|
|
$ |
1,242,950 |
|
| Interest bearing demand deposits |
|
1,364,306 |
|
|
1,453,932 |
|
|
1,482,556 |
|
|
1,452,765 |
|
|
1,416,361 |
|
| Savings deposits |
|
657,592 |
|
|
683,944 |
|
|
685,228 |
|
|
626,523 |
|
|
612,404 |
|
| Money Market |
|
1,443,060 |
|
|
1,158,724 |
|
|
1,280,129 |
|
|
1,068,473 |
|
|
1,075,852 |
|
| Time deposits |
|
683,554 |
|
|
652,622 |
|
|
665,511 |
|
|
562,052 |
|
|
640,995 |
|
| Total deposits |
|
5,483,198 |
|
|
5,318,978 |
|
|
5,487,305 |
|
|
4,956,486 |
|
|
4,988,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Quality |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-performing loans |
|
$ |
20,812 |
|
|
$ |
19,981 |
|
|
$ |
22,465 |
|
|
$ |
22,036 |
|
|
$ |
27,723 |
|
| Non-performing assets |
|
25,143 |
|
|
24,190 |
|
|
27,269 |
|
|
27,055 |
|
|
33,359 |
|
| Net charge-offs (recoveries) |
|
440 |
|
|
307 |
|
|
(5 |
) |
|
1,800 |
|
|
1,717 |
|
| Allowance for credit losses to non-performing loans |
|
282.42 |
% |
|
295.66 |
% |
|
260.29 |
% |
|
248.03 |
% |
|
194.72 |
% |
| Allowance for credit losses to total loans outstanding |
|
1.25 |
% |
|
1.27 |
% |
|
1.31 |
% |
|
1.37 |
%1 |
|
1.39 |
%1 |
| Nonperforming loans to total loans |
|
0.44 |
% |
|
0.43 |
% |
|
0.50 |
% |
|
0.55 |
% |
|
0.70 |
% |
| Nonperforming assets to total assets |
|
0.38 |
% |
|
0.36 |
% |
|
0.41 |
% |
|
0.45 |
% |
|
0.55 |
% |
| Special Mention loans |
|
25,298 |
|
|
35,849 |
|
|
64,160 |
|
|
66,235 |
|
|
76,222 |
|
| Substandard and Doubtful loans |
|
37,378 |
|
|
38,155 |
|
|
38,801 |
|
|
46,862 |
|
|
51,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Share Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding |
|
20,454,636 |
|
|
20,448,799 |
|
|
20,437,183 |
|
|
18,080,303 |
|
|
18,083,126 |
|
| Book value per common share |
|
$ |
29.37 |
|
|
$ |
30.63 |
|
|
$ |
32.61 |
|
|
$ |
35.06 |
|
|
$ |
34.69 |
|
| Tangible book value per common share (2) |
|
21.01 |
|
|
22.17 |
|
|
24.07 |
|
|
27.24 |
|
|
26.80 |
|
| Market price of stock |
|
31.97 |
|
|
35.67 |
|
|
38.49 |
|
|
42.79 |
|
|
41.06 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Key Performance Ratios and Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| End of period earning assets |
|
$ |
5,975,619 |
|
|
$ |
6,024,815 |
|
|
$ |
6,038,542 |
|
|
$ |
5,504,517 |
|
|
$ |
5,542,199 |
|
| Average earning assets |
|
6,063,061 |
|
|
5,975,821 |
|
|
5,817,752 |
|
|
5,539,819 |
|
|
5,396,239 |
|
| Average rate on average earning assets (tax equivalent) |
|
3.77 |
% |
|
3.50 |
% |
|
3.33 |
% |
|
3.37 |
% |
|
3.67 |
% |
| Average rate on cost of funds |
|
0.56 |
% |
|
0.30 |
% |
|
0.26 |
% |
|
0.26 |
% |
|
0.29 |
% |
| Net interest margin (tax equivalent) (2) |
|
3.21 |
% |
|
3.20 |
% |
|
3.07 |
% |
|
3.11 |
% |
|
3.38 |
% |
| Return on average assets |
|
1.07 |
% |
|
1.08 |
% |
|
1.05 |
% |
|
1.12 |
% |
|
1.25 |
% |
| Return on average common equity |
|
11.18 |
% |
|
11.02 |
% |
|
9.95 |
% |
|
10.74 |
% |
|
11.67 |
% |
| Efficiency ratio (tax equivalent) (2) |
|
59.64 |
% |
|
58.45 |
% |
|
58.59 |
% |
|
55.75 |
% |
|
52.73 |
% |
| Full-time equivalent employees |
|
1,051 |
|
|
1,025 |
|
|
1,050 |
|
|
965 |
|
|
960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1 Excludes Paycheck Protection 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, 2022 |
|
QTD Average |
|
|
|
|
Average |
|
|
Balance |
|
|
Interest |
|
Rate |
|
| INTEREST EARNING ASSETS |
|
|
|
|
|
|
|
| Interest bearing deposits |
$ |
22,130 |
|
|
$ |
128 |
|
2.29 |
% |
| Federal funds sold |
7,152 |
|
|
38 |
|
2.11 |
% |
| Certificates of deposits investments |
1,417 |
|
|
8 |
|
2.24 |
% |
| Investment Securities: |
|
|
|
|
|
|
|
| Taxable (total less municipals) |
1,047,335 |
|
|
5,106 |
|
1.95 |
% |
| Tax-exempt (Municipals) |
318,870 |
|
|
2,780 |
|
3.49 |
% |
| Loans (net of unearned income) |
4,666,157 |
|
|
49,498 |
|
4.21 |
% |
|
|
|
|
|
|
|
|
| Total interest earning assets |
6,063,061 |
|
|
57,558 |
|
3.77 |
% |
|
|
|
|
|
|
|
|
| NONEARNING ASSETS |
|
|
|
|
|
|
|
| Cash and due from banks |
122,616 |
|
|
|
|
|
|
| Premises and equipment |
90,715 |
|
|
|
|
|
|
| Other nonearning assets |
458,854 |
|
|
|
|
|
|
| Allowance for loan losses |
(59,319 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
6,675,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INTEREST BEARING LIABILITIES |
|
|
|
|
|
|
|
| Demand deposits |
$ |
2,545,619 |
|
|
$ |
3,570 |
|
0.56 |
% |
| Savings deposits |
674,524 |
|
|
149 |
|
0.09 |
% |
| Time deposits |
672,187 |
|
|
1,197 |
|
0.71 |
% |
| Total interest bearing deposits |
3,892,330 |
|
|
4,916 |
|
0.50 |
% |
| Repurchase agreements |
207,079 |
|
|
428 |
|
0.82 |
% |
| FHLB advances |
355,554 |
|
|
1,926 |
|
2.15 |
% |
| Federal funds purchased |
272 |
|
|
1 |
|
1.46 |
% |
| Subordinated debt |
94,491 |
|
|
986 |
|
4.14 |
% |
| Jr. subordinated debentures |
19,294 |
|
|
241 |
|
4.96 |
% |
| Other debt |
- |
|
|
- |
|
0.00 |
% |
| Total borrowings |
676,690 |
|
|
3,582 |
|
2.10 |
% |
| Total interest bearing liabilities |
4,569,020 |
|
|
8,498 |
|
0.74 |
% |
|
|
|
|
|
|
|
|
| NONINTEREST BEARING LIABILITIES |
|
|
|
|
|
|
|
| Demand deposits |
1,418,028 |
|
|
Average cost of funds |
0.56 |
% |
| Other liabilities |
47,131 |
|
|
|
|
|
|
| Stockholders' equity |
641,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities & stockholders' equity |
$ |
6,675,927 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Interest Earnings / Spread |
|
|
|
$ |
49,060 |
|
3.03 |
% |
|
|
|
|
|
|
|
|
| Impact of Non-Interest Bearing Funds |
|
|
|
|
|
0.18 |
% |
|
|
|
|
|
|
|
|
| Tax effected yield on interest earning assets |
|
|
|
|
|
3.21 |
% |
|
| 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, |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income as reported |
$ |
48,257 |
|
|
$ |
46,826 |
|
|
$ |
43,522 |
|
|
$ |
42,744 |
|
|
$ |
45,496 |
|
| Net interest income, (tax equivalent) |
49,060 |
|
|
47,625 |
|
|
44,292 |
|
|
43,492 |
|
|
46,165 |
|
| Average earning assets |
6,063,061 |
|
|
5,975,821 |
|
|
5,817,752 |
|
|
5,539,819 |
|
|
5,396,239 |
|
| Net interest margin (tax equivalent) |
3.21 |
% |
|
3.20 |
% |
|
3.07 |
% |
|
3.11 |
% |
|
3.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stockholder's equity |
$ |
600,715 |
|
|
$ |
626,268 |
|
|
$ |
666,385 |
|
|
$ |
633,894 |
|
|
$ |
627,225 |
|
| Goodwill and intangibles, net |
170,897 |
|
|
172,871 |
|
|
174,499 |
|
|
141,376 |
|
|
142,656 |
|
| Common shares outstanding |
20,455 |
|
|
20,449 |
|
|
20,437 |
|
|
18,080 |
|
|
18,083 |
|
| Tangible Book Value per common share |
$ |
21.01 |
|
|
$ |
22.17 |
|
|
$ |
24.07 |
|
|
$ |
27.24 |
|
|
$ |
26.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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, |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
2021 |
|
|
2021 |
|
| Adjusted earnings Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Income - GAAP |
$ |
17,939 |
|
|
$ |
17,758 |
|
|
$ |
16,616 |
|
|
$ |
16,834 |
|
|
$ |
18,326 |
|
| Adjustments (post-tax): (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition ACL on non-PCD assets in provision expense |
- |
|
|
- |
|
|
1,580 |
|
|
- |
|
|
- |
|
| Branch optimization costs |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
999 |
|
| Integration and acquisition expenses |
524 |
|
|
777 |
|
|
469 |
|
|
225 |
|
|
348 |
|
| Total non-recurring adjustments (non-GAAP) |
$ |
524 |
|
|
$ |
777 |
|
|
$ |
2,049 |
|
|
$ |
225 |
|
|
$ |
1,347 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted earnings - non-GAAP |
$ |
18,463 |
|
|
$ |
18,535 |
|
|
$ |
18,665 |
|
|
$ |
17,059 |
|
|
$ |
19,673 |
|
| Adjusted diluted earnings per share (non-GAAP) |
$ |
0.90 |
|
|
$ |
0.90 |
|
|
$ |
0.96 |
|
|
$ |
0.94 |
|
|
$ |
1.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency Ratio Reconciliation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest expense - GAAP |
$ |
41,549 |
|
|
$ |
41,515 |
|
|
$ |
40,388 |
|
|
$ |
36,394 |
|
|
$ |
36,321 |
|
| Other real estate owned property income (expense) |
(58 |
) |
|
(218 |
) |
|
33 |
|
|
(315 |
) |
|
(242 |
) |
| Amortization of intangibles |
(1,598 |
) |
|
(1,633 |
) |
|
(1,522 |
) |
|
(1,462 |
) |
|
(1,414 |
) |
| Branch optimization costs |
- |
|
|
- |
|
|
- |
|
|
- |
|
|
(1,265 |
) |
| integration and acquisition expenses |
(663 |
) |
|
(983 |
) |
|
(594 |
) |
|
(285 |
) |
|
(440 |
) |
| Adjusted noninterest expense (non-GAAP) |
$ |
39,230 |
|
|
$ |
38,681 |
|
|
$ |
38,305 |
|
|
$ |
34,332 |
|
|
$ |
32,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income -GAAP |
$ |
48,257 |
|
|
$ |
46,826 |
|
|
$ |
43,522 |
|
|
$ |
42,744 |
|
|
$ |
45,496 |
|
| Effect of tax-exempt income (1) |
803 |
|
|
799 |
|
|
770 |
|
|
748 |
|
|
669 |
|
| Adjusted net interest income (non-GAAP) |
$ |
49,060 |
|
|
$ |
47,625 |
|
|
$ |
44,292 |
|
|
$ |
43,492 |
|
|
$ |
46,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noninterest income - GAAP |
$ |
16,791 |
|
|
$ |
18,559 |
|
|
$ |
21,088 |
|
|
$ |
18,124 |
|
|
$ |
16,359 |
|
| Gain on sales of investment securities, net |
(79 |
) |
|
(2 |
) |
|
- |
|
|
(36 |
) |
|
(11 |
) |
| Adjusted noninterest income (non-GAAP) |
$ |
16,712 |
|
|
$ |
18,557 |
|
|
$ |
21,088 |
|
|
$ |
18,088 |
|
|
$ |
16,348 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted total revenue (non-GAAP) |
$ |
65,772 |
|
|
$ |
66,182 |
|
|
$ |
65,380 |
|
|
$ |
61,580 |
|
|
$ |
62,513 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Efficiency ratio (non-GAAP) |
59.64 |
% |
|
58.45 |
% |
|
58.59 |
% |
|
55.75 |
% |
|
52.73 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| '(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. |
