First Mid Bancshares, Inc. Announces Second Quarter 2021 Results

Published

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 assets13.91%
Tier 1 capital to risk-weighted assets10.92%
Common equity tier 1 capital to risk-weighted assets10.51%
Leverage ratio8.87%

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 InformationFirst 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 SolicitationFirst 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 SolicitationThis 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 HoltVP, Shareholder Relations217-258-0463 aholt@firstmid.com

Matt SmithChief Financial Officer217-258-1528msmith@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 outstanding1.50%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 funds0.30%  
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%.      

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