First Mid Bancshares, Inc. Announces Third Quarter 2021 Results

MATTOON, Ill., Oct. 28, 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 September 30, 2021.

Highlights

• Net income of $18.3 million, or $1.01 diluted EPS
• Adjusted net income (non-GAAP) of $19.7 million, or $1.08 diluted EPS
• Solid organic loan growth of 1.3% for the quarter, excluding acquired and Paycheck Protection Program loans
• Completed the integration of a St. Louis based commercial lending team including a portfolio of loans of approximately $208.0 million and deposits of approximately $215.1 million

“We are pleased to report another strong quarter of financial results, which represented a new record high in quarterly earnings,” said Joe Dively, Chairman and Chief Executive Officer. “The quarter included net organic loan growth for the first time this year and the fourth quarter pipeline looks to be solid. Both the former Providence and the new St. Louis based commercial lending teams are fully integrated and off to a great start in supporting our customers and communities.”

“With respect to the pending acquisition of Delta Bancshares Company (“Delta”), which we announced on July 29, 2021, we have continued to work with the team on preparing for a smooth transition and are excited about the opportunities and additional services the combined entity can provide to Delta’s customers and the broader St. Louis community,” Dively concluded.

Net Interest Income

Net interest income for the third quarter of 2021 increased by $2.7 million, or 6.4% compared to the second quarter of 2021. Interest income increased by $2.6 million and interest expense decreased $0.1 million from the previous quarter. PPP fee income totaled $5.1 million, an increase of $3.1 million from the prior quarter, which was partially offset by a decline in accretion income. The third quarter included $1.6 million of accretion income compared to $2.8 million in the second quarter. As of September 30, 2021, the Company had $2.0 million of deferred fee income on PPP loans remaining.    

In comparison to the third quarter of 2020, net interest income increased $13.0 million, or 39.9%. The increase was primarily the result of the acquisition of Providence Bank in the first quarter of 2021, 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 3.38% for the third quarter of 2021, which was an increase of 16 basis points compared to the prior quarter. Earning asset yields increased 15 basis points, while the average cost of funds declined by one basis point.

In comparison to the third quarter of last year, the net interest margin increased 21 basis points with earning asset yields higher by 11 basis points and average cost of funds lower by 10 basis points.   The increase in rates on earning assets was primarily driven by higher accretion and PPP fee income. The decrease in average cost of funds was mostly the result of not replacing higher cost funds as they have matured and lower rates on certain products.

Loan Portfolio

Total loans ended the quarter at $3.95 billion, representing an increase of $151.5 million compared to the prior quarter. PPP loans decreased by $105.7 million, and the St. Louis loan acquisition added $208.0 million during the quarter. Excluding these changes, loans increased $49.2 million in the quarter, or 1.3%. The Company had $59.4 million of PPP loans outstanding on September 30, 2021. Loan growth in the quarter was dispersed broadly in both industry and geographically.        

Asset Quality

The Company’s asset quality measures continued to be in a very strong position.   At quarter end, the ratio of non-performing loans to total loans was 0.70%, and the allowance for credit losses (“ACL”) to non-performing loans was 195%.   Nonperforming loans and nonperforming assets decreased in the quarter. The ratio of nonperforming assets to total assets was 0.55% at quarter end. Net charge-offs were $1.7 million during the third quarter, primarily from one loan where the reserve had already been accounted for. Special mention loans decreased $20.7 million to $76.2 million and substandard loans decreased $4.4 million to $51.1 million.

Provision expense for the quarter was $1.1 million compared to $3.9 million in the same quarter last year. As of September 30, 2021, the ACL, excluding $59.4 million of PPP loans, was 1.39% of total loans.         

Deposits

Total deposits ended the quarter at $4.99 billion, which represented an increase of $249.2 million from the prior quarter. Excluding the acquired deposits of $215.1 million, deposits increased $34.1 million in the quarter. The Company’s average rate on cost of funds was 0.29% for the quarter compared to 0.30% in the prior quarter and 0.39% in the third quarter of 2020. The Company continues to reprice CDs lower and let wholesale funding sources mature without replacement.               

Noninterest Income

Noninterest income for the third quarter of 2021 was $16.4 million compared to $18.3 million in the second quarter of 2021.   The decrease was primarily due to the seasonality of insurance business and farmland sales. While these businesses have seasonality throughout the year, they provide significant diversification and stable revenue and cash flow streams for the Company.        

In comparison to the third quarter of last year, noninterest income increased $2.8 million, or 20.5%. Combined, insurance and wealth management business lines increased 20.4% over the same period last year, partially due to the previously announced acquisitions within these lines of business. The other fee income services increased 20.6% compared to the third quarter of last year, partially due to the addition of Providence.         

Noninterest Expenses     

Noninterest expense for the third quarter totaled $36.3 million compared to $46.0 million in the second quarter. The current quarter included $0.4 million of acquisition and integration related costs and $1.3 million in branch optimization costs. Combined, these expenses were down by $5.4 million compared to the prior quarter. In addition, the third quarter represents the first full quarter of run-rate cost savings from the Providence integration. The third quarter is also lower, partially due to the seasonality in the wealth management farm business and in insurance.         

In comparison to the third quarter of 2020, noninterest expenses increased $9.4 million. The increase was primarily due to the addition of Providence, growth in the insurance and wealth management businesses, and branch optimization costs.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the third quarter 2021 was 52.7% compared to 59.9% in the prior quarter and 54.7% 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	15.86%
Tier 1 capital to risk-weighted assets	12.52%
Common equity tier 1 capital to risk-weighted assets	12.06%
Leverage ratio	9.04%

The Company’s Board of Directors approved its next quarterly dividend in the amount of $0.22 payable on December 1, 2021 for shareholders of record on November 17, 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 $6.0 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, and Texas, and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 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 Bancshares Company (“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 filed a registration statement on Form S-4 with the SEC on September 17, 2021, which, as amended, was declared effective on October 5, 2021, in connection with the proposed transaction. The registration statement includes a proxy statement of Delta that also constitutes a prospectus of First Mid. Investors in Delta are urged to read the proxy statement/prospectus, which will contain important information, including detailed risk factors. 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. The definitive proxy statement/prospectus was first mailed to the shareholders of Delta on or about October 8, 2021.

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. 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.

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
			September 30,				December 31,				September 30,
				2021				2020				2020
Assets
Cash and cash equivalents			$	345,206			$	417,281			$	232,385
Investment securities				1,357,035				887,169				750,122
Loans (including loans held for sale)				3,947,769				3,138,419				3,236,247
Less allowance for credit losses				(53,983	)			(41,910	)			(41,915	)
Net loans				3,893,786				3,096,509				3,194,332
Premises and equipment, net				81,823				58,206				59,356
Goodwill and intangibles, net				142,656				128,120				129,287
Bank owned life insurance				131,547				68,955				68,519
Other assets				91,306				70,108				75,127
Total assets			$	6,043,359			$	4,726,348			$	4,509,128
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing			$	1,242,950			$	936,926			$	837,602
Interest bearing				3,745,612				2,755,858				2,782,234
Total deposits				4,988,562				3,692,784				3,619,836
Repurchase agreement with customers				149,891				206,937				170,345
Other borrowings				112,641				93,969				93,954
Junior subordinated debentures				19,153				19,027				18,985
Subordinated debt				94,363				94,253
Other liabilities				51,524				51,150				44,999
Total liabilities				5,416,134				4,158,120				3,948,119
Total stockholders' equity				627,225				568,228				561,009
Total liabilities and stockholders' equity			$	6,043,359			$	4,726,348			$	4,509,128

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
			Three Months Ended							Nine Months Ended
			September 30,							September 30,
				2021			2020				2021			2020
Interest income:
Interest and fees on loans			$	43,292		$	32,151			$	119,973		$	93,560
Interest on investment securities				5,835			4,074				16,416			12,740
Interest on federal funds sold & other deposits				136			70				325			271
Total interest income				49,263			36,295				136,714			106,571
Interest expense:
Interest on deposits				2,234			3,168				6,980			10,134
Interest on securities sold under agreements to repurchase				52			68				179			420
Interest on other borrowings				359			395				1,178			1,506
Interest on jr. subordinated debentures				137			147				416			539
Interest on subordinated debt				985			-				2,954			-
Total interest expense				3,767			3,778				11,707			12,599
Net interest income				45,496			32,517				125,007			93,972
Provision for loan losses				1,103			3,883				12,679			15,500
Net interest income after provision for loan				44,393			28,634				112,328			78,472
Non-interest income:
Wealth management revenues				4,204			3,468				14,146			10,921
Insurance commissions				3,932			3,291				14,777			14,000
Service charges				1,838			1,446				4,741			4,335
Securities gains, net				11			95				88			913
Mortgage banking revenues				1,477			1,661				4,577			3,205
ATM/debit card revenue				3,060			2,367				8,900			6,593
Other				1,837			1,250				5,163			4,006
Total non-interest income				16,359			13,578				52,392			43,973
Non-interest expense:
Salaries and employee benefits				21,092			15,346				69,487			47,301
Net occupancy and equipment expense				5,382			4,363				15,834			12,746
Net other real estate owned (income) expense				1,507			110				3,551			62
FDIC insurance				268			469				1,198			851
Amortization of intangible assets				1,414			1,277				3,929			3,862
Stationary and supplies				299			262				850			805
Legal and professional expense				1,878			1,320				4,919			4,207
Marketing and donations				679			387				1,688			1,182
Other				3,802			3,393				18,478			9,740
Total non-interest expense				36,321			26,927				119,934			80,756
Income before income taxes				24,431			15,285				44,786			41,689
Income taxes				6,105			3,720				10,130			9,988
Net income			$	18,326		$	11,565			$	34,656		$	31,701
Per Share Information
Basic earnings per common share			$	1.01		$	0.69			$	1.94		$	1.90
Diluted earnings per common share				1.01			0.69				1.94			1.89
Weighted average shares outstanding				18,083,126			16,728,191				17,819,619			16,710,485
Diluted weighted average shares outstanding				18,136,146			16,775,099				17,872,639			16,757,393

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
						For the Quarter Ended
						September 30,			June 30,				March 31,			December 31,				September 30,
							2021			2021				2021			2020				2020
Interest income:
Interest and fees on loans						$	43,292		$	40,795			$	35,886		$	33,254			$	32,151
Interest on investment securities							5,835			5,739				4,842			4,226				4,074
Interest on federal funds sold & other deposits							136			101				88			90				70
Total interest income							49,263			46,635				40,816			37,570				36,295
Interest expense:
Interest on deposits							2,234			2,262				2,484			2,617				3,168
Interest on securities sold under agreements to repurchase							52			57				70			68				68
Interest on other borrowings							359			445				374			371				395
Interest on jr. subordinated debentures							137			139				140			143				147
Interest on subordinated debt							985			985				984			931				-
Total interest expense							3,767			3,888				4,052			4,130				3,778
Net interest income							45,496			42,747				36,764			33,440				32,517
Provision for loan losses							1,103			(560	)			12,136			603				3,883
Net interest income after provision for loan							44,393			43,307				24,628			32,837				28,634
Non-interest income:
Wealth management revenues							4,204			5,016				4,926			5,232				3,468
Insurance commissions							3,932			4,988				5,857			3,477				3,291
Service charges							1,838			1,539				1,364			1,527				1,446
Securities gains, net							11			73				4			193				95
Mortgage banking revenues							1,477			1,691				1,409			1,870				1,661
ATM/debit card revenue							3,060			3,141				2,699			2,369				2,367
Other							1,837			1,836				1,490			879				1,250
Total non-interest income							16,359			18,284				17,749			15,547				13,578
Non-interest expense:
Salaries and employee benefits							21,092			24,908				23,487			19,151				15,346
Net occupancy and equipment expense							5,382			5,482				4,970			3,962				4,363
Net other real estate owned (income) expense							1,507			1,966				78			(20	)			110
FDIC insurance							268			478				452			458				469
Amortization of intangible assets							1,414			1,295				1,220			1,200				1,277
Stationary and supplies							299			235				316			275				262
Legal and professional expense							1,878			1,639				1,402			1,220				1,320
Marketing and donations							679			507				502			434				387
Other							3,802			9,503				5,173			3,651				3,393
Total non-interest expense							36,321			46,013				37,600			30,331				26,927
Income before income taxes							24,431			15,578				4,777			18,053				15,285
Income taxes							6,105			3,357				668			4,484				3,720
Net income						$	18,326		$	12,221			$	4,109		$	13,569			$	11,565
Per Share Information
Basic earnings per common share						$	1.01		$	0.68			$	0.24		$	0.81			$	0.69
Diluted earnings per common share							1.01			0.68				0.24			0.81				0.69
Weighted average shares outstanding							18,083,126			18,067,190				17,299,927			16,735,926				16,728,191
Diluted weighted average shares outstanding							18,136,146			18,120,210				17,352,947			16,779,129				16,775,099

FIRST MID BANCSHARES, INC.
Consolidated Financial Highlights and Ratios
(Dollars in thousands, except per share data)
(Unaudited)
			As of and for the Quarter Ended
			September 30,				June 30,				March 31,				December 31,				September 30,
				2021				2021				2021				2020				2020
Loan Portfolio
Construction and land development			$	180,061			$	141,568			$	165,376			$	122,479			$	167,515
Farm real estate loans				278,788				277,362				269,652				254,341				256,230
1-4 Family residential properties				412,565				394,902				412,470				325,762				339,172
Multifamily residential properties				306,911				274,910				297,984				189,632				139,255
Commercial real estate				1,583,255				1,480,198				1,402,885				1,174,300				1,177,571
Loans secured by real estate				2,761,580				2,568,940				2,548,367				2,066,514				2,079,743
Agricultural operating loans				126,534				123,101				121,070				137,352				141,074
Commercial and industrial loans				835,860				864,554				1,017,400				738,313				807,668
Consumer loans				80,064				84,541				91,705				78,002				80,348
All other loans				143,731				155,168				164,557				118,238				127,414
Total loans				3,947,769				3,796,304				3,943,099				3,138,419				3,236,247
Deposit Portfolio
Non-interest bearing demand deposits			$	1,242,950			$	1,157,009			$	1,185,181			$	936,926			$	837,602
Interest bearing demand deposits				1,416,361				1,418,717				1,268,882				1,031,183				1,053,691
Savings deposits				612,404				598,232				668,098				499,427				485,241
Money Market				1,075,852				842,771				803,946				748,179				736,262
Time deposits				640,995				722,593				811,586				477,069				507,040
Total deposits				4,988,562				4,739,322				4,737,693				3,692,784				3,619,836
Asset Quality
Non-performing loans			$	27,723			$	30,410			$	31,984			$	28,123			$	22,439
Non-performing assets				33,359				37,648				45,323				30,616				24,712
Net charge-offs				1,717				261				702				608				349
Allowance for credit losses to non-performing loans				194.72%				179.54%				173.27%				149.02%				186.80%
Allowance for credit losses to total loans outstanding			1.39%1				1.50%1				1.50%1				1.41%1				1.41%1
Nonperforming loans to total loans				0.70%				0.80%				0.81%				0.90%				0.69%
Nonperforming assets to total assets				0.55%				0.65%				0.78%				0.65%				0.55%
Common Share Data
Common shares outstanding				18,083,126				18,078,474				18,042,256				16,741,208				16,731,684
Book value per common share			$	34.69			$	34.08			$	33.36			$	33.94			$	33.53
Tangible book value per common share (2)				26.80				26.33				25.68				26.29				25.80
Market price of stock				41.06				40.51				43.93				33.66				24.95
Key Performance Ratios and Metrics
End of period earning assets			$	5,542,199			$	5,269,882			$	5,374,848			$	4,367,717			$	4,130,186
Average earning assets				5,396,239				5,380,411				4,769,975				4,238,388				4,113,846
Average rate on average earning assets (tax equivalent)				3.67%				3.52%				3.52%				3.58%				3.56%
Average rate on cost of funds				0.29%				0.30%				0.36%				0.41%				0.39%
Net interest margin (tax equivalent) (2)				3.38%				3.22%				3.16%				3.17%				3.17%
Return on average assets				1.25%				0.84%				0.32%				1.18%				1.03%
Return on average common equity				11.67%				8.00%				2.78%				9.66%				8.31%
Efficiency ratio (tax equivalent) (2)				52.73%				59.91%				61.20%				58.27%				54.66%
Full-time equivalent employees				960				960				983				824				816
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 September 30, 2021
		QTD Average							Average
		Balance				Interest			Rate
INTEREST EARNING ASSETS
Interest bearing deposits		$	277,844			$	122		0.17	%
Federal funds sold			1,341				-		0.00	%
Certificates of deposits investments			2,453				13		2.10	%
Investment Securities:
Taxable (total less municipals)			976,817				3,961		1.62	%
Tax-exempt (Municipals)			312,796				2,373		3.03	%
Loans (net of unearned income)			3,824,988				43,463		4.51	%
Total interest earning assets			5,396,239				49,932		3.67	%
NONEARNING ASSETS
Cash and due from banks			100,475
Premises and equipment			82,057
Other nonearning assets			344,014
Allowance for loan losses			(55,373	)
Total assets		$	5,867,412
INTEREST BEARING LIABILITIES
Demand deposits		$	2,336,601			$	1,177		0.20	%
Savings deposits			606,129				111		0.07	%
Time deposits			673,833				946		0.56	%
Total interest bearing deposits			3,616,563				2,234		0.25	%
Repurchase agreements			160,686				52		0.13	%
FHLB advances			112,715				359		1.26	%
Federal funds purchased			-				-		0.00	%
Subordinated debt			94,338				985		4.14	%
Jr. subordinated debentures			19,125				137		2.84	%
Other borrowings			-				-		0.00	%
Total borrowings			386,864				1,533		1.57	%
Total interest bearing liabilities			4,003,427				3,767		0.37	%
NONINTEREST BEARING LIABILITIES
Demand deposits			1,179,915			Average cost of funds			0.29	%
Other liabilities			56,107
Stockholders' equity			627,963
Total liabilities & stockholders' equity		$	5,867,412
Net Interest Earnings / Spread						$	46,165		3.30	%
Impact of Non-Interest Bearing Funds									0.08	%
Tax effected yield on interest earning assets									3.38	%

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, unaudited)
					As of and for the Quarter Ended
					September 30,				June 30,				March 31,				December 31,				September 30,
						2021				2021				2021				2020				2020
Net interest income as reported					$	45,496			$	42,747			$	36,764			$	33,440			$	32,517
Net interest income, (tax equivalent)						46,165				43,359				37,359				34,040				33,084
Average earning assets						5,396,239				5,380,411				4,769,975				4,238,388				4,113,846
Net interest margin (tax equivalent)						3.38	%			3.22	%			3.16	%			3.17	%			3.17	%
Common stockholder's equity					$	627,225			$	616,066			$	601,884			$	568,228			$	561,009
Goodwill and intangibles, net						142,656				139,995				138,606				128,120				129,287
Common shares outstanding						18,083				18,078				18,042				16,741				16,732
Tangible Book Value per common share					$	26.80			$	26.33			$	25.68			$	26.29			$	25.80

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)
					As of and for the Quarter Ended
					September 30,				June 30,				March 31,				December 31,				September 30,
						2021				2021				2021				2020				2020
Adjusted earnings Reconciliation
Net Income - GAAP					$	18,326			$	12,221			$	4,109			$	13,569			$	11,565
Adjustments (post-tax): (1)
Acquisition ACL on non-PCD assets in provision expense						-				-				9,072				-				-
Branch optimization costs						999				960				-				-				-
Integration and acquisition expenses						348				4,634				2,036				292				69
Total non-recurring adjustments (non-GAAP)					$	1,347			$	5,595			$	11,108			$	292			$	69
Adjusted earnings - non-GAAP					$	19,673			$	17,816			$	15,217			$	13,861			$	11,634
Adjusted diluted earnings per share (non-GAAP)					$	1.08			$	0.98			$	0.88			$	0.83			$	0.69
Efficiency Ratio Reconciliation
Noninterest expense - GAAP					$	36,321			$	46,013			$	37,600			$	30,331			$	26,927
Other real estate owned property income (expense)						(242	)			(751	)			(78	)			20				(110	)
Amortization of intangibles						(1,414	)			(1,295	)			(1,220	)			(1,200	)			(1,277	)
Branch optimization costs						(1,265	)			(1,215	)			-				-				-
integration and acquisition expenses						(440	)			(5,866	)			(2,578	)			(369	)			(87	)
Adjusted noninterest expense (non-GAAP)					$	32,960			$	36,886			$	33,724			$	28,782			$	25,453
Net interest income -GAAP					$	45,496			$	42,747			$	36,764			$	33,440			$	32,517
Effect of tax-exempt income (1)						669				612				595				601				566
Adjusted net interest income (non-GAAP)					$	46,165			$	43,359			$	37,359			$	34,041			$	33,083
Noninterest income - GAAP					$	16,359			$	18,284			$	17,749			$	15,547			$	13,578
Gain on sales of investment securities, net						(11	)			(73	)			(4	)			(193	)			(95	)
Adjusted noninterest income (non-GAAP)					$	16,348			$	18,211			$	17,745			$	15,354			$	13,483
Adjusted total revenue (non-GAAP)					$	62,513			$	61,570			$	55,104			$	49,395			$	46,566
Efficiency ratio (non-GAAP)						52.73	%			59.91	%			61.20	%			58.27	%			54.66	%
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.