First Mid Bancshares, Inc. Announces Fourth Quarter 2023 Results
- None.
- None.
Insights
The reported financial results of First Mid Bancshares for the quarter and year ended December 31, 2023, reflect a robust performance, particularly highlighting the successful integration of Blackhawk Bank. The net interest margin (NIM) of 3.33% is a significant indicator of the bank's earning potential from its lending activities and investments. This figure is above the industry average, which typically hovers around 3%, indicating efficient asset utilization and a well-structured balance sheet. The growth in net interest income by 25.8% compared to the same quarter last year is substantial and suggests that the merger with Blackhawk has been accretive to earnings.
The loan portfolio's expansion, with a notable increase in Ag operating loans, indicates a diversified and growing demand across loan categories. However, the slight decrease in total deposits raises questions about the bank's liquidity management and deposit retention strategies. The efficiency ratio, slightly up from the previous year at 58.9%, suggests that the bank maintains a relatively stable overhead cost relative to its revenue, despite the integration costs associated with the Blackhawk merger. This ratio is a critical measure of a bank's operational efficiency, with lower percentages indicating better performance.
From a capitalization perspective, the reported capital levels such as Total capital to risk-weighted assets at 14.84% and Common equity tier 1 capital at 11.62% indicate a strong capital buffer above regulatory requirements. This robust capital position provides the bank with a safety net against potential losses and supports future growth opportunities. The effective tax rate of 16.6% for the quarter, influenced by state tax refunds, is lower than the annual rate of 22.0%, which could be seen as a one-off benefit enhancing the quarterly earnings.
First Mid Bancshares' performance, including the strategic sale of bonds to reposition the balance sheet, has likely contributed to the improved net interest margin. This balance sheet optimization, coupled with the reduction of brokered CDs and wholesale borrowings, indicates a proactive approach to managing interest rate risk and cost of funds in a rising rate environment. The market will view positively the company's ability to navigate the complexities of financial markets and make adjustments that bolster financial health.
Furthermore, the asset quality metrics, such as the low ratio of non-performing loans to total loans at 0.36% and the high ACL to non-performing loans at 341.19%, signify strong credit risk management. These figures are particularly reassuring to investors and stakeholders, as they suggest that the bank is well-prepared to absorb potential credit losses without significant impact on profitability. The stable asset quality, even after the merger with Blackhawk, is indicative of effective due diligence and risk assessment processes.
Investor sentiment is likely to be influenced by the declaration of a regular quarterly dividend of $0.23 per share, which represents a tangible return on investment and signals confidence in the bank's ongoing financial stability. The company's strategic decisions, such as the merger and subsequent financial maneuvers, will be closely monitored by the market for indications of sustained growth and profitability.
From a legal and regulatory standpoint, the completion of the merger between First Mid Bancshares and Blackhawk Bank, followed by the successful integration, is noteworthy. Mergers and acquisitions in the banking sector are subject to rigorous scrutiny by regulators and a seamless transition without any reported regulatory issues is a positive outcome. The legal complexities involved in such transactions are significant and the absence of litigation or regulatory penalties in the announcement suggests that the merger was executed with a high degree of legal diligence.
The absence of any mention of legal contingencies related to the merger or operational activities in the financial report is also a positive sign. It suggests that the company has effectively mitigated legal risks that could arise from the integration process. However, stakeholders should be aware that post-merger integration can sometimes reveal latent legal issues that may not be immediately apparent. Ongoing monitoring of legal disclosures in subsequent reporting periods will be important to assess the long-term success of the merger from a legal perspective.
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
“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
In comparison to the fourth quarter of 2022, net interest income increased
Net Interest Margin
Net interest margin, on a tax equivalent basis (non-GAAP), was
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
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
Deposits
Total deposits ended the quarter at
Noninterest Income
Noninterest income represented
Noninterest income for the fourth quarter of 2023 was
In comparison to the fourth quarter of 2022, noninterest income increased
Noninterest Expenses
Noninterest expense for the fourth quarter of 2023 totaled
In comparison to the fourth quarter of 2022, noninterest expenses increased
The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter 2023 was
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 | | |
| Tier 1 capital to risk-weighted assets | | |
| Common equity tier 1 capital to risk-weighted assets | | |
| Leverage ratio | | |
Tangible book value per share increased in the period to
The Company’s Board of Directors approved a regular quarterly dividend of
The Company’s effective tax rate for the fourth quarter was
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
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 funds | 1.85 | % | ||||||
| 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 | ||||||||||||||||||||
FAQ
What is the net income reported by First Mid Bancshares, Inc. for Q4 2023?
What is the adjusted net income reported by First Mid Bancshares, Inc. for Q4 2023?
What was the net interest margin for First Mid Bancshares, Inc. in Q4 2023?
What was the total capital to risk-weighted assets ratio for First Mid Bancshares, Inc. at the end of the period?
What was the effective tax rate for First Mid Bancshares, Inc. in Q4 2023?
