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First Mid Bancshares, Inc. Announces Fourth Quarter 2024 Results
Источник: Nasdaq GlobeNewswire / 23 янв 2025 08:00:01 America/New_York
MATTOON, Ill., Jan. 23, 2025 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended December 31, 2024.
Highlights
- Net income of $19.2 million, or $0.80 diluted EPS
- Adjusted net income (non-GAAP) of $20.9 million, or $0.87 diluted EPS
- Loan growth and interest expense decline drives 6 basis points of margin expansion
- Wealth management and insurance combined revenues increase over 11% in the quarter
- Board of Directors declares regular quarterly dividend of $0.24 per share
“Revenue growth and interest expense management helped drive a solid increase in adjusted earnings, despite higher provision expense,” said Joe Dively, Chairman and Chief Executive Officer. “Our net interest margin expanded, and noninterest income increased to 31% of revenues. Wealth management and insurance had a strong finish to the year with a combined revenue increase of 26% compared to the fourth quarter last year. Our Ag Services group had a record quarter of farmland sales in the period. Finally, we are pleased with the success of the multiple strategic technology investments we completed this year and continue to execute on for 2025. Collectively, these investments deliver a better customer experience and significant operating efficiency,” Dively concluded.
Net Interest Income
Net interest income for the fourth quarter of 2024 increased by $1.4 million, or 2.4% compared to the third quarter of 2024. Interest income decreased by $1.3 million primarily driven by lower interest rates, partially offset by loan growth. Interest expense decreased by $2.7 million primarily due to lower interest rates, reducing wholesale funding, and actively managing existing accounts and promotional pricing with the Fed’s rate cuts.
In comparison to the fourth quarter of 2023, net interest income increased $1.5 million, or 2.6%. Interest income was slightly lower by $0.1 million, while interest expense decreased $1.6 million. Interest income on loans increased $2.6 million while funding from investment securities and cash were used for loan growth.
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.41% for the fourth quarter of 2024, which was an increase of 6 basis points compared to the prior quarter. Earning asset yields decreased by 11 basis points, while the average cost of funds decreased by 17 basis points. Accretion income for the quarter was $3.4 million, which was a decrease of $0.2 million from the prior quarter.
In comparison to the fourth quarter of last year, the net interest margin increased 8 basis points, with an average earnings asset increase of 6 basis points versus the average cost of funds decrease of 2 basis points. Higher rates and loan growth helped drive an increase in earnings asset yields, despite a decline in accretion income of $1.2 million. The decrease in funding costs was primarily due to a decline in wholesale funding sources, partially offset by an increase in time deposit rates.
Loan Portfolio
Total loans ended the quarter at $5.67 billion, representing an increase of $57.9 million, or 1.0% compared to the prior quarter. Loan growth was well diversified primarily in construction and land development and commercial and industrial. The largest decline was in commercial real estate, which included an increase in paydowns due to the sale of several borrowers’ properties. The average rate on new origination and renewed loans in the period was approximately 7.4%.
Asset Quality
The Company’s asset quality metrics continue to be strong compared to historical and industry measures. The allowance for credit losses (“ACL”) increased by $1.4 million to $70.2 million with an ending ACL to total loans ratio of 1.24%. Provision expense was recorded in the amount of $3.6 million and the Company had net charge offs of $2.2 million in the period. Also, at the end of the fourth quarter, the ratio of non-performing loans to total loans was 0.53%, and the ACL to non-performing loans was 235%. The ratio of non-performing assets to total assets was 0.43% at quarter end. Non-performing loans increased by $11.6 million in the period to $29.8 million. Substandard loans increased $6.5 million in the period to $35.5 million. For the quarter, the increase in net charge offs, non-performing loans, and substandard loans were all tied to a single borrower who is invested in an organic farming operation that is in the process of dissolving and liquidating. Separately, while special mention loans increased $19.7 million in the quarter to $57.8 million, there are currently no anticipated material losses from the downgrades and the special mention balance was lower than the same period last year.
Deposits and Borrowings
Total deposits ended the quarter at $6.06 billion, which represented a decrease of $31.7 million, or 0.52% from the prior quarter. The decline was primarily in noninterest bearing deposits for normal customer cash flow needs. In addition, time deposits were lower primarily due to a decline in wholesale CD’s. In comparison to the prior quarter, the average cost of funds decreased 17 basis points in the fourth quarter of 2024 to 1.83%.
Noninterest Income
Noninterest income for the fourth quarter of 2024 was $26.4 million compared to $23.0 million in the prior quarter. Wealth management revenues increased $0.5 million primarily due to a record quarter of farmland sales totaling $1.7 million more than offsetting a $0.7 million reduction to farm management income from lower commodity prices. Overall Ag Services revenue was $3.0 million in the quarter. Insurance revenues increased $0.8 million, or 13.4% on a strong finish to the year in sales performance. Other income increased $1.9 million and included a $1.3 million gain on the sale of a property that was held in other real estate owned.
In comparison to the fourth quarter of 2023, noninterest income increased $4.6 million, or 21.1%. The increase was primarily driven by growth in wealth management and insurance, and the sale of a property.
Noninterest Expenses
Noninterest expense for the fourth quarter of 2024 totaled $56.3 million compared to $53.9 million in the prior quarter. The increase was primarily in legal and professional fees due to $2.2 million in expenses tied to the retail and core system technology projects. In addition, other expenses included a $1.2 million loss on the sale of a portion of property connected to a branch location. Expenses were higher in salaries and benefits driven by higher incentive compensation tied to the strong quarter of revenue growth in wealth management and insurance.
In comparison to the fourth quarter of 2023, noninterest expenses decreased $0.7 million. The decrease was primarily driven by the nonrecurring expenses tied to the Blackhawk acquisition totaling $5.6 million in the fourth quarter of last year, while the current quarter of 2024 included $2.2 million of nonrecurring expense tied to the technology projects and a $1.2 million loss on the sale of a portion of a property.
The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter 2024 was 59.5% compared to 61.3% in the prior quarter and 58.9% for the same period last year.
Taxes
The fourth quarter of 2024 included a $0.9 million increase to taxes due to a reduction in the percentage of income apportioned to Illinois resulting in a lower effective tax rate going forward and a reduction in related deferred tax assets for the period. The reduction was primarily due to the Illinois tax law change in June of 2024 for the apportionment of investment income and the continued diversification of the business with more revenue outside of Illinois.
Capital Levels and Dividend
The Company’s capital levels remained strong and comfortably above the “well capitalized” levels. Capital levels ended the period as follows:
Total capital to risk-weighted assets 15.37% Tier 1 capital to risk-weighted assets 12.82% Common equity tier 1 capital to risk-weighted assets 12.42% Leverage ratio 10.33% The Company’s Board of Directors approved its regular quarterly dividend of $0.24 payable on February 28, 2025 for shareholders of record on February 13, 2025.
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 $7.5 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, Texas, and Wisconsin and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 160 years. More information about the Company is available on our website at www.firstmid.com.
Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles (“GAAP”), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include “Adjusted Net Income,” “Adjusted Diluted EPS,” “Efficiency Ratio,” “Net Interest Margin, tax equivalent,” and “Tangible Book Value per Common Share”. While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.
Forward Looking Statements
This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid are identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid’s loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines; and the impact of pandemics 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:
Austin Frank
SVP, Shareholder Relations
217-258-5522
afrank@firstmid.comMatt 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, 2024 2024 2023 Assets Cash and cash equivalents $ 121,216 $ 164,191 $ 143,064 Investment securities 1,073,510 1,125,774 1,179,402 Loans (including loans held for sale) 5,672,462 5,614,591 5,580,565 Less allowance for credit losses (70,182 ) (68,774 ) (68,675 ) Net loans 5,602,280 5,545,817 5,511,890 Premises and equipment, net 100,234 101,464 101,396 Goodwill and intangibles, net 261,906 265,139 264,231 Bank Owned Life Insurance 170,854 169,635 166,125 Other assets 189,734 190,469 220,686 Total assets $ 7,519,734 $ 7,562,489 $ 7,586,794 Liabilities and Stockholders' Equity Deposits: Non-interest bearing $ 1,329,155 $ 1,387,290 $ 1,398,234 Interest bearing 4,727,941 4,701,544 4,725,425 Total deposits 6,057,096 6,088,834 6,123,659 Repurchase agreements with customers 204,122 204,343 213,721 Other borrowings 242,520 238,712 263,787 Junior subordinated debentures 24,280 24,224 24,058 Subordinated debt 87,472 87,373 106,755 Other liabilities 57,853 60,506 61,610 Total liabilities 6,673,343 6,703,992 6,793,590 Total stockholders' equity 846,391 858,497 793,204 Total liabilities and stockholders' equity $ 7,519,734 $ 7,562,489 $ 7,586,794 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, 2024 2023 2024 2023 Interest income: Interest and fees on loans $ 81,288 $ 78,676 $ 320,446 $ 262,423 Interest on investment securities 6,990 8,515 28,836 32,119 Interest on federal funds sold & other deposits 1,564 2,736 8,097 5,624 Total interest income 89,842 89,927 357,379 300,166 Interest expense: Interest on deposits 26,144 25,900 106,919 77,294 Interest on securities sold under agreements to repurchase 1,333 1,754 6,448 6,565 Interest on other borrowings 1,917 3,073 8,674 16,789 Interest on jr. subordinated debentures 510 545 2,156 1,859 Interest on subordinated debt 988 1,193 4,454 4,196 Total interest expense 30,892 32,465 128,651 106,703 Net interest income 58,950 57,462 228,728 193,463 Provision for credit losses 3,643 552 5,635 6,104 Net interest income after provision for loan 55,307 56,910 223,093 187,359 Non-interest income: Wealth management revenues 6,275 4,998 22,818 20,793 Insurance commissions 6,805 5,398 28,552 24,814 Service charges 3,058 3,298 12,362 10,881 Net securities gains/(losses) 0 46 (433 ) 3,383 Mortgage banking revenues 1,104 954 3,957 2,282 ATM/debit card revenue 4,204 4,233 16,807 14,347 Other 4,917 2,841 12,223 10,286 Total non-interest income 26,363 21,768 96,286 86,786 Non-interest expense: Salaries and employee benefits 31,957 29,925 124,134 104,962 Net occupancy and equipment expense 7,285 7,977 30,407 26,946 Net other real estate owned (income) expense 240 800 411 1,862 FDIC insurance 863 1,015 3,463 3,339 Amortization of intangible assets 3,314 3,560 13,556 9,127 Stationary and supplies 642 404 1,885 1,346 Legal and professional expense 5,386 2,065 12,944 7,379 ATM/debit card expense 2,043 1,332 6,384 5,322 Marketing and donations 906 679 3,418 3,005 Other 3,661 9,268 18,381 22,452 Total non-interest expense 56,297 57,025 214,983 185,740 Income before income taxes 25,373 21,653 104,396 88,405 Income taxes 6,205 3,582 25,498 19,470 Net income $ 19,168 $ 18,071 $ 78,898 $ 68,935 Per Share Information Basic earnings per common share $ 0.80 $ 0.76 $ 3.31 $ 3.17 Diluted earnings per common share 0.80 0.76 3.30 3.15 Weighted average shares outstanding 23,818,806 22,220,438 23,800,523 21,086,802 Diluted weighted average shares outstanding 23,908,340 22,319,334 23,895,681 21,176,946 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, 2024 2024 2024 2024 2023 Interest income: Interest and fees on loans $ 81,288 $ 81,775 $ 79,560 $ 77,823 $ 78,676 Interest on investment securities 6,990 7,036 7,405 7,405 8,515 Interest on federal funds sold & other deposits 1,564 2,371 1,718 2,444 2,736 Total interest income 89,842 91,182 88,683 87,672 89,927 Interest expense: Interest on deposits 26,144 28,341 26,338 26,096 25,900 Interest on securities sold under agreements to repurchase 1,333 1,444 1,615 2,056 1,754 Interest on other borrowings 1,917 2,195 2,248 2,314 3,073 Interest on jr. subordinated debentures 510 567 537 542 545 Interest on subordinated debt 988 1,092 1,180 1,194 1,193 Total interest expense 30,892 33,639 31,918 32,202 32,465 Net interest income 58,950 57,543 56,765 55,470 57,462 Provision for credit losses 3,643 1,266 1,083 (357 ) 552 Net interest income after provision for loan 55,307 56,277 55,682 55,827 56,910 Non-interest income: Wealth management revenues 6,275 5,816 5,405 5,322 4,998 Insurance commissions 6,805 6,003 6,531 9,213 5,398 Service charges 3,058 3,121 3,227 2,956 3,298 Net securities gains/(losses) 0 (277 ) (156 ) 0 46 Mortgage banking revenues 1,104 1,109 1,038 706 954 ATM/debit card revenue 4,204 4,267 4,281 4,055 4,233 Other 4,917 2,984 2,096 2,226 2,841 Total non-interest income 26,363 23,023 22,422 24,478 21,768 Non-interest expense: Salaries and employee benefits 31,957 31,565 30,164 30,448 29,925 Net occupancy and equipment expense 7,285 8,055 7,507 7,560 7,977 Net other real estate owned (income) expense 240 107 85 (21 ) 800 FDIC insurance 863 829 902 869 1,015 Amortization of intangible assets 3,314 3,405 3,340 3,497 3,560 Stationary and supplies 642 482 370 391 404 Legal and professional expense 5,386 2,573 2,536 2,449 2,065 ATM/debit card expense 2,043 1,869 1,281 1,191 1,332 Marketing and donations 906 836 814 862 679 Other 3,661 4,212 4,392 6,116 9,268 Total non-interest expense 56,297 53,933 51,391 53,362 57,025 Income before income taxes 25,373 25,367 26,713 26,943 21,653 Income taxes 6,205 5,885 6,968 6,440 3,582 Net income $ 19,168 $ 19,482 $ 19,745 $ 20,503 $ 18,071 Per Share Information Basic earnings per common share $ 0.80 $ 0.81 $ 0.83 $ 0.86 $ 0.76 Diluted earnings per common share 0.80 0.81 0.82 0.86 0.76 Weighted average shares outstanding 23,818,806 23,905,099 23,896,210 23,872,731 23,837,853 Diluted weighted average shares outstanding 23,908,340 24,006,647 23,998,152 23,960,335 23,921,758 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, 2024 2024 2024 2024 2023 Loan Portfolio Construction and land development $ 236,093 $ 190,857 $ 195,389 $ 186,851 $ 205,077 Farm real estate loans 390,760 384,620 387,015 388,941 391,132 1-4 Family residential properties 496,597 505,342 507,517 518,641 542,469 Multifamily residential properties 332,644 338,167 334,446 312,758 319,129 Commercial real estate 2,417,585 2,440,120 2,406,955 2,396,092 2,384,704 Loans secured by real estate 3,873,679 3,859,106 3,831,322 3,803,283 3,842,511 Agricultural operating loans 239,671 233,414 213,997 213,217 196,272 Commercial and industrial loans 1,335,920 1,283,631 1,268,646 1,227,906 1,266,159 Consumer loans 53,960 63,222 70,841 79,569 91,014 All other loans 169,232 175,218 175,811 175,320 184,609 Total loans 5,672,462 5,614,591 5,560,617 5,499,295 5,580,565 Deposit Portfolio Non-interest bearing demand deposits $ 1,329,155 $ 1,387,290 $ 1,393,336 $ 1,448,299 $ 1,398,234 Interest bearing demand deposits 1,907,733 1,834,123 1,909,993 1,974,857 1,837,296 Savings deposits 636,427 648,582 673,381 704,777 710,586 Money Market 1,196,537 1,183,594 1,127,699 1,107,177 1,129,950 Time deposits 987,244 1,035,245 1,011,370 1,007,826 1,047,593 Total deposits 6,057,096 6,088,834 6,115,779 6,242,936 6,123,659 Asset Quality Non-performing loans $ 29,835 $ 18,242 $ 19,079 $ 20,064 $ 20,128 Non-performing assets 32,030 20,076 20,557 21,471 21,292 Net charge-offs (recoveries) 2,235 804 708 381 118 Allowance for credit losses to non-performing loans 235.23 % 377.01 % 358.05 % 338.60 % 341.19 % Allowance for credit losses to total loans outstanding 1.24 % 1.22 % 1.23 % 1.24 % 1.23 % Nonperforming loans to total loans 0.53 % 0.32 % 0.34 % 0.36 % 0.36 % Nonperforming assets to total assets 0.43 % 0.27 % 0.27 % 0.28 % 0.28 % Special Mention loans 57,848 38,151 30,767 65,693 74,050 Substandard and Doubtful loans 35,516 29,037 27,594 29,296 28,945 Common Share Data Common shares outstanding 23,895,807 23,904,051 23,895,868 23,888,929 23,827,137 Book value per common share $ 35.42 $ 35.91 $ 34.05 $ 33.40 $ 33.29 Tangible book value per common share(1) 24.46 24.82 23.28 22.49 22.20 Tangible book value per common share excluding other comprehensive income at period end(1) 30.42 29.70 29.43 28.67 27.93 Market price of stock 36.82 38.91 32.88 32.68 34.66 Key Performance Ratios and Metrics End of period earning assets $ 6,775,075 $ 6,786,458 $ 6,812,574 $ 6,923,742 $ 6,780,160 Average earning assets 6,884,303 6,857,070 6,815,932 6,884,855 6,948,309 Average rate on average earning assets (tax equivalent) 5.24 % 5.35 % 5.27 % 5.16 % 5.18 % Average rate on cost of funds 1.83 % 2.00 % 1.91 % 1.91 % 1.85 % Net interest margin (tax equivalent)(1) 3.41 % 3.35 % 3.36 % 3.25 % 3.33 % Return on average assets 1.01 % 1.03 % 1.05 % 1.07 % 0.93 % Adjusted return on average assets(1) 1.10 % 1.05 % 1.07 % 1.17 % 1.16 % Return on average common equity 9.04 % 9.40 % 9.92 % 10.37 % 9.76 % Adjusted return on average common equity(1) 9.80 % 9.58 % 10.11 % 11.28 % 12.11 % Efficiency ratio (tax equivalent)(1) 59.51 % 61.33 % 59.61 % 59.09 % 58.91 % Full-time equivalent employees 1,198 1,207 1,185 1,188 1,187 1Non-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, 2024 QTD Average Average Balance Interest Rate INTEREST EARNING ASSETS Interest bearing deposits $ 120,744 $ 1,522 5.01 % Federal funds sold 49 - 0.00 % Certificates of deposits investments 3,500 42 4.77 % Investment Securities: Taxable (total less municipals) 855,006 5,145 2.41 % Tax-exempt (Municipals) 270,899 2,336 3.45 % Loans (net of unearned income) 5,634,105 81,564 5.76 % Total interest earning assets 6,884,303 90,609 5.24 % NONEARNING ASSETS Cash and due from banks 98,020 Premises and equipment 101,449 Other nonearning assets 590,928 Allowance for loan losses (69,580 ) Total assets $ 7,605,120 INTEREST BEARING LIABILITIES Demand deposits $ 3,103,831 $ 16,538 2.12 % Savings deposits 643,575 182 0.11 % Time deposits 1,007,663 9,424 3.72 % Total interest bearing deposits 4,755,069 26,144 2.19 % Repurchase agreements 214,174 1,333 2.48 % FHLB advances 213,634 1,917 3.57 % Federal funds purchased 1 - 0.00 % Subordinated debt 87,407 988 4.50 % Jr. subordinated debentures 24,251 510 8.37 % Other debt 2 - 0.00 % Total borrowings 539,469 4,748 3.50 % Total interest bearing liabilities 5,294,538 30,892 2.32 % NONINTEREST BEARING LIABILITIES Demand deposits 1,406,989 Average cost of funds 1.83 % Other liabilities 51,029 Stockholders' equity 852,564 Total liabilities & stockholders' equity $ 7,605,120 Net Interest Earnings / Spread $ 59,717 2.92 % Impact of Non-Interest Bearing Funds 0.49 % Tax effected yield on interest earning assets 3.41 % 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, 2024 2024 2024 2024 2023 Net interest income as reported $ 58,950 $ 57,543 $ 56,765 $ 55,470 $ 57,462 Net interest income, (tax equivalent) 59,717 58,627 57,361 56,086 58,255 Average earning assets 6,884,303 6,857,070 6,815,932 6,884,855 6,948,309 Net interest margin (tax equivalent) 3.41 % 3.35 % 3.36 % 3.25 % 3.33 % Common stockholder's equity $ 846,391 $ 858,497 $ 813,645 $ 797,952 $ 793,204 Goodwill and intangibles, net 261,906 265,139 257,377 260,699 264,231 Common shares outstanding 23,896 23,904 23,896 23,889 23,827 Tangible Book Value per common share $ 24.46 $ 24.82 $ 23.28 $ 22.49 $ 22.20 Accumulated other comprehensive loss (AOCI) (142,383 ) (116,692 ) (146,998 ) (147,667 ) (136,427 ) Adjusted tangible book value per common share $ 30.42 $ 29.70 $ 29.43 $ 28.67 $ 27.93 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, 2024 2024 2024 2024 2023 Adjusted earnings Reconciliation Net Income - GAAP $ 19,168 $ 19,482 $ 19,745 $ 20,503 $ 18,071 Adjustments (post-tax):(1) Nonrecurring technology project expenses 1,710 - - - - Net (gain)/loss on securities sales - 219 123 - (36 ) Integration and acquisition expenses - 137 250 1,804 4,385 Total non-recurring adjustments (non-GAAP) $ 1,710 $ 356 $ 373 $ 1,804 $ 4,348 Adjusted earnings - non-GAAP $ 20,878 $ 19,838 $ 20,118 $ 22,307 $ 22,419 Adjusted diluted earnings per share (non-GAAP) $ 0.87 $ 0.83 $ 0.84 $ 0.93 $ 0.94 Adjusted return on average assets - non-GAAP 1.10 % 1.05 % 1.07 % 1.17 % 1.16 % Adjusted return on average common equity - non-GAAP 9.80 % 9.58 % 10.11 % 11.28 % 12.11 % Efficiency Ratio Reconciliation Noninterest expense - GAAP $ 56,297 $ 53,933 $ 51,391 $ 53,362 $ 57,025 Other real estate owned property income (expense) (240 ) (107 ) (85 ) 21 (800 ) Amortization of intangibles (3,314 ) (3,405 ) (3,340 ) (3,497 ) (3,560 ) Nonrecurring severance expense (2,164 ) - - - - Integration and acquisition expenses - (174 ) (316 ) (2,283 ) (5,550 ) Adjusted noninterest expense (non-GAAP) $ 50,579 $ 50,247 $ 47,650 $ 47,603 $ 47,115 Net interest income -GAAP $ 58,950 $ 57,543 $ 56,765 $ 55,470 $ 57,462 Effect of tax-exempt income(1) (323 ) 1,084 596 616 793 Adjusted net interest income (non-GAAP) $ 58,627 $ 58,627 $ 57,361 $ 56,086 $ 58,255 Noninterest income - GAAP $ 26,363 $ 23,023 $ 22,422 $ 24,478 $ 21,768 Net (gain)/loss on securities sales 0 277 156 0 (46 ) Adjusted noninterest income (non-GAAP) $ 26,363 $ 23,300 $ 22,578 $ 24,478 $ 21,722 Adjusted total revenue (non-GAAP) $ 84,990 $ 81,927 $ 79,939 $ 80,564 $ 79,977 Efficiency ratio (non-GAAP) 59.51 % 61.33 % 59.61 % 59.09 % 58.91 % (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. 
