First Mid Bancshares, Inc. Announces Second Quarter 2021 Results

Rhea-AI Summary

First Mid Bancshares reported a net income of $12.2 million for Q2 2021, with a diluted EPS of $0.68. The board approved a 7.3% dividend increase to $0.22 per share, payable on September 1, 2021. Key developments included the completed merger with Providence Bank and acquisitions enhancing non-interest income by $2.0 million. Net interest income rose 16.3% from Q1, totaling $6.0 million increase. Noninterest income grew 31.7% year-over-year. Asset quality remains strong with a 0.80% non-performing loan ratio.

Positive

• Net income of $12.2 million, or $0.68 diluted EPS.
• 7.3% increase in quarterly dividend to $0.22 per share.
• Successful merger with Providence Bank completed.
• Acquired insurance agency and wealth management firm, adding $2.0 million in annualized non-interest income.
• Noninterest income increased by $4.4 million year-over-year, or 31.7%.
• Net interest income rose by $6.0 million, or 16.3% from Q1.

Negative

• Total loans decreased by $146.8 million compared to the prior quarter.
• Average cost of funds decreased to 0.30%, down from 0.36% in the prior quarter, impacting margin.

MATTOON, Ill., July 29, 2021 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter and year-to-date period ended June 30, 2021.

Highlights

• Net income of $12.2 million, or $0.68 diluted EPS
• Adjusted net income (non-GAAP) of $17.8 million, or $0.98 diluted EPS
• Board of Directors increased the quarterly dividend by 7.3% to $0.22 per share
• Completed the bank merger and system conversion with Providence Bank in May
• Acquired and integrated an insurance agency and a separate wealth management financial services firm with a combined annualized non-interest income of over $2.0 million
• Announced pending acquisition of Delta Bancshares Company (“Delta”), parent to Jefferson Bank & Trust
• Announced pending acquisition of a St. Louis based commercial lending team including a portfolio of loans of approximately $225 million and deposits of approximately $280 million
  

“The second quarter reflected very good financial and operating performance with strong earnings and the successful completion of the integration with Providence,” said Joe Dively, Chairman and Chief Executive Officer. “Our earnings, adjusted for the acquisition and branch consolidation costs, are a record high. In addition, we continued our strategic focus on growing noninterest income and expanding our services for our customers by completing an acquisition in each of our insurance and wealth management business lines.”

“Lastly, we completed extensive due diligence on the pending acquisitions of both Delta Bancshares Company and a separate St. Louis based team and portfolio.   We are extremely excited to deepen our presence in the St. Louis market area with these two announced acquisitions. Delta has a long history providing financial services in the market and the lenders in the loan and deposit deal all worked with our current market President in the past. The former Providence employees did a great job in working with our customers through the integration and we are now in a great position to layer on these pending acquisitions to create an even larger Missouri presence.” Dively concluded.

Net Interest Income

Net interest income for the second quarter of 2021 increased by $6.0 million, or 16.3% compared to the first quarter of 2021. Interest income increased by $5.8 million and interest expense decreased $0.2 million from the previous quarter. The increases are primarily driven by the first full quarter with Providence included. Accretion income increased by $1.6 million in the quarter for a total of $2.8 million. This was partially offset by a decline in PPP fee income of $0.3 million to $2.0 million in total.   At quarter end, the Company had $7.1 million of deferred fee income on PPP loans remaining.     

In comparison to the second quarter of 2020, net interest income increased $11.2 million, or 35.4%. The increase was primarily the result of the addition of Providence, the additional income from the PPP, and the active management to lower funding costs.            

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.22% for the second quarter of 2021, which was an increase of six basis points compared to the prior quarter. Earning asset yields were flat, while the average cost of funds declined by six basis points as the Company continues to allow wholesale time deposits and FHLB advances to mature.

In comparison to the second quarter of last year, the net interest margin decreased three basis points with earning asset yields down 16 basis points and average cost of funds lower by 13 basis points.   The current quarter included $2.0 million of PPP fee income compared to $1.0 million in the second quarter of 2020. The current quarter also included $2.8 million in accretion income compared to $0.5 million in the same period last year.

Loan Portfolio

Total loans ended the quarter at $3.80 billion, representing a decrease of $146.8 million compared to the prior quarter. PPP loans decreased by $94.6 million and ended the period with $165.1 million outstanding. Excluding PPP, loans declined by $52.2 million in the quarter. The Company had a solid quarter of growth in loans from both new and existing customers, but experienced higher payoffs than normal more than offsetting the growth.      

The Company continues to see its loan deferrals trending lower. As of July 15, 2021, outstanding deferrals totaled $9.9 million, or 0.3% of the loan portfolio. It is not anticipated that any of the customers with outstanding deferrals will receive an additional deferral when they mature.

Asset Quality

The Company’s asset quality measures continue to reflect a strong credit culture.   At quarter end, the ratio of non-performing loans to total loans was 0.80%, and the allowance for credit losses (“ACL”) to non-performing loans was 180%.   Nonperforming loans and nonperforming assets decreased in the quarter. The ratio of nonperforming assets to total assets was 0.65% at quarter end. Net charge-offs were $0.3 million during the second quarter compared to $0.7 million in the prior quarter. The Company recognized significant improvement in its classified loans during the quarter. Special mention loans decreased to $86.9 million and substandard loans decreased to $55.5 million.

Provision expense was recorded as a credit in the amount of $0.6 million in the second quarter compared to $6.1 million in the same quarter last year. The improving economic conditions combined with low levels of charge-offs and muted loan growth from higher payoffs resulted in a reduction to the ACL of $0.8 million. As of June 30, 2021, the ACL, excluding $165.1 million of PPP loans, was 1.50% of total loans.      

Deposits

Total deposits ended the quarter at $4.74 billion, which represented an increase of $1.6 million from the prior quarter. The Company’s average rate on cost of funds was 0.30% for the quarter compared to 0.36% in the prior quarter and 0.43% in the second quarter of 2020. The Company continues to reprice CD’s lower and let wholesale funding sources mature without replacement.               

Noninterest Income

Noninterest income for the second quarter of 2021 was $18.3 million compared to $17.7 million in the first quarter of 2021.   The increase compared to the prior quarter was partially due to the full quarter inclusion of Providence. Both the insurance and wealth management divisions had strong quarters compared to what has typically been a more seasonally soft period. The Ag group within wealth management benefited from higher commodity prices driving larger management fees and more farm sales than historically occurs in the second quarter. Insurance and wealth management businesses represented approximately 54.7% of the Company’s noninterest income providing significant diversification and more stable revenue than other fee income.        

In comparison to the second quarter of 2020, noninterest income increased $4.4 million, or 31.7%. Combined, insurance and wealth management business lines increased 26.4% over the same period last year. The other fee income services increased partially by the addition of Providence.           

Noninterest Expenses     

Noninterest expense for the second quarter totaled $46.0 million compared to $37.6 million in the first quarter. The increase was primarily driven by the first full quarter inclusive of Providence, non-recurring acquisition costs of $5.8 million, and non-recurring branch consolidation costs of $1.2 million.        

In comparison to the second quarter of 2020, noninterest expenses increased $19.9 million. The increase was primarily due to the addition of Providence and non-recurring costs.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the second quarter 2021 was 57.9% compared to 61.2% in the prior quarter and 53.7% for the same period last year.

Regulatory Capital Levels and Dividend

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

Total capital to risk-weighted assets	13.91%
Tier 1 capital to risk-weighted assets	10.92%
Common equity tier 1 capital to risk-weighted assets	10.51%
Leverage ratio	8.87%

The Company’s Board of Directors approved an increase of $0.015, or 7.3% per share, to its quarterly dividend. The increase results in the amount of $0.22 payable on September 1, 2021 for shareholders of record on August 18, 2021.  

About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc. and First Mid Wealth Management Co. First Mid is a $5.8 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 their work and their ability to serve our customers well over the last 156 years. More information about the Company is available on our website at www.firstmid.com.

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

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

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

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

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

Investor Contact:
Aaron Holt
VP, Shareholder Relations
217-258-0463
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,
				2021				2020				2020
Assets
Cash and cash equivalents			$	340,741			$	417,281			$	238,487
Investment securities				1,231,998				887,169				727,154
Loans (including loans held for sale)				3,796,304				3,138,419				3,205,262
Less allowance for credit losses				(54,597	)			(41,910	)			(38,381	)
Net loans				3,741,707				3,096,509				3,166,881
Premises and equipment, net				82,099				58,206				58,905
Goodwill and intangibles, net				139,995				128,120				130,656
Bank owned life insurance				130,734				68,955				68,084
Other assets				123,308				70,108				68,144
Total assets			$	5,790,582			$	4,726,348			$	4,458,311
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing			$	1,157,009			$	936,926			$	817,623
Interest bearing				3,582,313				2,755,858				2,568,204
Total deposits				4,739,322				3,692,784				3,385,827
Repurchase agreement with customers				151,394				206,937				350,288
Other borrowings				112,753				93,969				103,939
Junior subordinated debentures				19,111				19,027				18,942
Subordinated debt				94,326				94,253				-
Other liabilities				57,610				51,150				50,042
Total liabilities				5,174,516				4,158,120				3,909,038
Total stockholders' equity				616,066				568,228				549,273
Total liabilities and stockholders' equity			$	5,790,582			$	4,726,348			$	4,458,311

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
			Three Months Ended									Six Months Ended
			June 30,									June 30,
				2021				2020					2021			2020
Interest income:
Interest and fees on loans			$	40,795			$	31,382				$	76,681		$	61,409
Interest on investment securities				5,739				4,077					10,581			8,666
Interest on federal funds sold & other deposits				101				76					189			201
Total interest income				46,635				35,535					87,451			70,276
Interest expense:
Interest on deposits				2,262				3,105					4,746			6,966
Interest on securities sold under agreements to repurchase				57				158					127			352
Interest on other borrowings				445				516					819			1,111
Interest on jr. subordinated debentures				139				0					279			0
Interest on subordinated debt				985				174					1,969			392
Total interest expense				3,888				3,953					7,940			8,821
Net interest income				42,747				31,582					79,511			61,455
Provision for loan losses				(560	)			6,136					11,576			11,617
Net interest income after provision for loan				43,307				25,446					67,935			49,838
Non-interest income:
Wealth management revenues				5,016				3,827					9,942			7,453
Insurance commissions				4,988				4,088					10,845			10,709
Service charges				1,539				1,111					2,903			2,889
Securities gains, net				73				287					77			818
Mortgage banking revenues				1,691				1,236					3,100			1,544
ATM/debit card revenue				3,141				2,239					5,840			4,226
Other				1,836				1,097					3,326			2,756
Total non-interest income				18,284				13,885					36,033			30,395
Non-interest expense:
Salaries and employee benefits				24,908				15,455					48,395			31,955
Net occupancy and equipment expense				5,482				4,141					10,452			8,383
Net other real estate owned (income) expense				1,966				(2	)				2,044			(48	)
FDIC insurance				478				289					930			382
Amortization of intangible assets				1,295				1,290					2,515			2,585
Stationary and supplies				235				275					551			543
Legal and professional expense				1,639				1,489					3,041			2,887
Marketing and donations				507				314					1,009			795
Other				9,503				2,847					14,676			6,347
Total non-interest expense				46,013				26,098					83,613			53,829
Income before income taxes				15,578				13,233					20,355			26,404
Income taxes				3,357				3,096					4,025			6,268
Net income			$	12,221			$	10,137				$	16,330		$	20,136
Per Share Information
Basic earnings per common share			$	0.68			$	0.61				$	0.92		$	1.21
Diluted earnings per common share				0.68				0.60					0.92			1.20
Weighted average shares outstanding				18,067,190				16,709,886					17,685,679			16,701,536
Diluted weighted average shares outstanding				18,120,210				16,756,794					17,738,699			16,748,444

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,
							2021				2021			2020				2020			2020
Interest income:
Interest and fees on loans						$	40,795			$	35,886		$	33,254			$	32,151		$	31,382
Interest on investment securities							5,739				4,842			4,226				4,074			4,077
Interest on federal funds sold & other deposits							101				88			90				70			76
Total interest income							46,635				40,816			37,570				36,295			35,535
Interest expense:
Interest on deposits							2,262				2,484			2,617				3,168			3,105
Interest on securities sold under agreements to repurchase							57				70			68				68			158
Interest on other borrowings							445				374			371				395			516
Interest on jr. subordinated debentures							139				140			143				147			174
Interest on subordinated debt							985				984			931				-			-
Total interest expense							3,888				4,052			4,130				3,778			3,953
Net interest income							42,747				36,764			33,440				32,517			31,582
Provision for loan losses							(560	)			12,136			603				3,883			6,136
Net interest income after provision for loan							43,307				24,628			32,837				28,634			25,446
Non-interest income:
Wealth management revenues							5,016				4,926			5,232				3,468			3,827
Insurance commissions							4,988				5,857			3,477				3,291			4,088
Service charges							1,539				1,364			1,527				1,446			1,111
Securities gains, net							73				4			193				95			287
Mortgage banking revenues							1,691				1,409			1,870				1,661			1,236
ATM/debit card revenue							3,141				2,699			2,369				2,367			2,239
Other							1,836				1,490			879				1,250			1,097
Total non-interest income							18,284				17,749			15,547				13,578			13,885
Non-interest expense:
Salaries and employee benefits							24,908				23,487			19,151				15,346			15,455
Net occupancy and equipment expense							5,482				4,970			3,962				4,363			4,141
Net other real estate owned (income) expense							1,966				78			(20	)			110			(2	)
FDIC insurance							478				452			458				469			289
Amortization of intangible assets							1,295				1,220			1,200				1,277			1,290
Stationary and supplies							235				316			275				262			275
Legal and professional expense							1,639				1,402			1,220				1,320			1,489
Marketing and donations							507				502			434				387			314
Other							9,503				5,173			3,651				3,393			2,847
Total non-interest expense							46,013				37,600			30,331				26,927			26,098
Income before income taxes							15,578				4,777			18,053				15,285			13,233
Income taxes							3,357				668			4,484				3,720			3,096
Net income						$	12,221			$	4,109		$	13,569			$	11,565		$	10,137
Per Share Information
Basic earnings per common share						$	0.68			$	0.24		$	0.81			$	0.69		$	0.61
Diluted earnings per common share							0.68				0.24			0.81				0.69			0.60
Weighted average shares outstanding							18,067,190				17,299,927			16,735,926				16,728,191			16,709,886
Diluted weighted average shares outstanding							18,120,210				17,352,947			16,779,129				16,775,099			16,756,794

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,
				2021				2021				2020				2020				2020
Loan Portfolio
Construction and land development			$	141,568			$	165,376			$	122,479			$	167,515			$	180,934
Farm real estate loans				277,362				269,652				254,341				256,230				251,382
1-4 Family residential properties				394,902				412,470				325,762				339,172				342,036
Multifamily residential properties				274,910				297,984				189,632				139,255				141,015
Commercial real estate				1,480,198				1,402,885				1,174,300				1,177,571				1,123,540
Loans secured by real estate				2,568,940				2,548,367				2,066,514				2,079,743				2,038,907
Agricultural operating loans				123,101				121,070				137,352				141,074				149,043
Commercial and industrial loans				864,554				1,017,400				738,313				807,668				811,169
Consumer loans				84,541				91,705				78,002				80,348				82,084
All other loans				155,168				164,557				118,238				127,414				124,059
Total loans				3,796,304				3,943,099				3,138,419				3,236,247				3,205,262
Deposit Portfolio
Non-interest bearing demand deposits			$	1,157,009			$	1,185,181			$	936,926			$	837,602			$	817,623
Interest bearing demand deposits				1,418,717				1,268,882				1,031,183				1,053,691				938,710
Savings deposits				598,232				668,098				499,427				485,241				474,545
Money Market				842,771				803,946				748,179				736,262				625,361
Time deposits				722,593				811,586				477,069				507,040				529,588
Total deposits				4,739,322				4,737,693				3,692,784				3,619,836				3,385,827
Asset Quality
Non-performing loans			$	30,410			$	31,984			$	28,123			$	22,439			$	23,096
Non-performing assets				37,648				45,323				30,616				24,712				25,397
Net charge-offs				261				702				608				349				631
Allowance for credit losses to non-performing loans				179.54	%			173.27	%			149.02	%			186.80	%			166.18	%
Allowance for credit losses to total loans outstanding			1.50		%1		1.50		%1		1.41		%1		1.41		%1		1.30		%1
Nonperforming loans to total loans				0.80	%			0.81	%			0.90	%			0.69	%			0.72	%
Nonperforming assets to total assets				0.65	%			0.78	%			0.65	%			0.55	%			0.57	%
Common Share Data
Common shares outstanding				18,078,474				18,042,256				16,741,208				16,731,684				16,728,190
Book value per common share			$	34.08			$	33.36			$	33.94			$	33.53			$	32.84
Tangible book value per common share (2)				26.33				25.68				26.29				25.80				25.02
Market price of stock				40.51				43.93				33.66				24.95				26.23
Key Performance Ratios and Metrics
End of period earning assets			$	5,269,882			$	5,374,848			$	4,367,717			$	4,130,186			$	4,093,511
Average earning assets				5,380,411				4,769,975				4,238,388				4,113,846				3,942,832
Average rate on average earning assets (tax equivalent)				3.52	%			3.52	%			3.58	%			3.56	%			3.68	%
Average rate on cost of funds				0.30	%			0.36	%			0.41	%			0.39	%			0.43	%
Net interest margin (tax equivalent) (2)				3.22	%			3.16	%			3.17	%			3.17	%			3.25	%
Return on average assets				0.84	%			0.32	%			1.18	%			1.03	%			0.94	%
Return on average common equity				8.00	%			2.78	%			9.66	%			8.31	%			7.47	%
Efficiency ratio (tax equivalent) (2)				57.94	%			61.20	%			58.27	%			54.66	%			53.70	%
Full-time equivalent employees				960				983				824				816				828
1 Excludes Paycheck Protection Program loans.
2 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.

FIRST MID BANCSHARES, INC.
Net Interest Margin
(In thousands, unaudited)
		For the Quarter Ended March 2021
		QTD Average							Average
		Balance				Interest			Rate
INTEREST EARNING ASSETS
Interest bearing deposits		$	341,907			$	87		0.10	%
Federal funds sold			1,328				-		0.00	%
Certificates of deposits investments			2,690				15		2.24	%
Investment Securities:
Taxable (total less municipals)			890,660				4,046		1.82	%
Tax-exempt (Municipals)			270,791				2,143		3.17	%
Loans (net of unearned income)			3,873,035				40,956		4.24	%
Total interest earning assets			5,380,411				47,247		3.52	%
NONEARNING ASSETS
Cash and due from banks			91,497
Premises and equipment			87,494
Other nonearning assets			341,570
Allowance for loan losses			(55,656	)
Total assets		$	5,845,316
INTEREST BEARING LIABILITIES
Demand deposits		$	2,173,498			$	1,027		0.19	%
Savings deposits			640,479				123		0.08	%
Time deposits			788,375				1,112		0.57	%
Total interest bearing deposits			3,602,352				2,262		0.25	%
Repurchase agreements			177,002				57		0.13	%
FHLB advances			112,622				445		1.58	%
Federal funds purchased			-				-		0.00	%
Subordinated debt			94,302				985		4.19	%
Jr. subordinated debentures			19,083				139		2.92	%
Other borrowings			-				-		0.00	%
Total borrowings			403,009				1,626		1.62	%
Total interest bearing liabilities			4,005,361				3,888		0.39	%
NONINTEREST BEARING LIABILITIES
Demand deposits			1,164,128			Average cost of funds			0.30	%
Other liabilities			64,808
Stockholders' equity			611,019
Total liabilities & stockholders' equity		$	5,845,316
Net Interest Earnings / Spread						$	43,359		3.13	%
Impact of Non-Interest Bearing Funds									0.09	%
Tax effected yield on interest earning assets									3.22	%

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,
						2021				2021				2020				2020				2020
Net interest income as reported					$	42,747			$	36,764			$	33,440			$	32,517			$	31,582
Net interest income, (tax equivalent)						43,359				37,359				34,040				33,084				32,118
Average earning assets						5,380,411				4,769,975				4,238,388				4,113,846				3,942,832
Net interest margin (tax equivalent)						3.22	%			3.16	%			3.17	%			3.17	%			3.25	%
Common stockholder's equity					$	616,066			$	601,884			$	568,228			$	561,009			$	549,273
Goodwill and intangibles, net						139,995				138,606				128,120				129,287				130,656
Common shares outstanding						18,078				18,042				16,741				16,732				16,728
Tangible Book Value per common share					$	26.33			$	25.68			$	26.29			$	25.80			$	25.02

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,
						2021				2021				2020				2020				2020
Adjusted earnings Reconciliation
Net Income - GAAP					$	12,221			$	4,109			$	13,569			$	11,565			$	10,137
Adjustments (post-tax): (1)
Acquisition ACL on non-PCD assets in provision expense						-				9,072				-				-				-
Branch optimization costs						960
Integration and acquisition expenses						4,634				2,036				292				69				204
Total non-recurring adjustments (non-GAAP)					$	5,595			$	11,108			$	292			$	69			$	204
Adjusted earnings - non-GAAP					$	17,816			$	15,217			$	13,861			$	11,634			$	10,341
Adjusted diluted earnings per share (non-GAAP)					$	0.98			$	0.88			$	0.83			$	0.69			$	0.62
Efficiency Ratio Reconciliation
Noninterest expense - GAAP					$	46,013			$	37,600			$	30,331			$	26,927			$	26,098
Foreclosed property income (expense)						(1,966	)			(78	)			20				(110	)			2
Amortization of intangibles						(1,295	)			(1,220	)			(1,200	)			(1,277	)			(1,290	)
Branch optimization costs						(1,215	)
integration and acquisition expenses						(5,866	)			(2,578	)			(369	)			(87	)			(259	)
Adjusted noninterest expense (non-GAAP)					$	35,671			$	33,724			$	28,782			$	25,453			$	24,551
Net interest income -GAAP					$	42,747			$	36,764			$	33,440			$	32,517			$	31,582
Effect of tax-exempt income (1)						612				595				601				566				537
Adjusted net interest income (non-GAAP)					$	43,359			$	37,359			$	34,041			$	33,083			$	32,119
Noninterest income - GAAP					$	18,284			$	17,749			$	15,547			$	13,578			$	13,885
Gain on sales of investment securities, net						(73	)			(4	)			(193	)			(95	)			(287	)
Adjusted noninterest income (non-GAAP)					$	18,211			$	17,745			$	15,354			$	13,483			$	13,598
Adjusted total revenue (non-GAAP)					$	61,570			$	55,104			$	49,395			$	46,566			$	45,717
Efficiency ratio (non-GAAP)						57.94	%			61.20	%			58.27	%			54.66	%			53.70	%
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.

FAQ

What were the financial results for FMBH in Q2 2021?

First Mid Bancshares reported a net income of $12.2 million, or $0.68 diluted EPS for Q2 2021.

How much was the dividend increase for FMBH announced in July 2021?

The board approved a 7.3% increase in the quarterly dividend, raising it to $0.22 per share.

What acquisitions did FMBH complete recently?

FMBH completed the merger with Providence Bank and acquired an insurance agency and a wealth management firm.

How did FMBH's noninterest income change in Q2 2021?

Noninterest income increased by $4.4 million, or 31.7% year-over-year, driven by acquisitions and strong performance.

What was FMBH's non-performing loan ratio at the end of Q2 2021?

The non-performing loan ratio stood at 0.80% at the end of Q2 2021.