8-K
First Mid Bancshares, Inc. (FMBH)
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________
Form 8-K _____________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported): January 23, 2020
FIRST MID BANCSHARES, INC. (Exact Name of Registrant as Specified in Charter)
| Delaware | 0-13368 | 37-1103704 |
|---|---|---|
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
| 1421 CHARLESTON AVENUE, MATTOON, IL 61938 | ||
| --- | ||
| (Address of Principal Executive Offices) (Zip Code) |
(217) 234-7454 (Registrant's telephone number, including area code)
| Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
|---|---|---|
| [ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| [ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| [ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| [ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock | FMBH | Nasdaq Global Market |
Item 2.02. Results of Operations and Financial Condition.
On January 23, 2020, First Mid Bancshares, Inc. (the "Company") issued a press release to report its results of operations and financial condition as of and for the quarter and full year period ended December 31, 2020. A copy of this press release is included in Exhibit 99.1 to this Form 8-K and incorporated into this item 2.02 by reference.
The information in this Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any registration statement or other document filed under the Securities Act of 1933 or the Exchange Act, except as otherwise stated in such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description |
|---|---|
| 99.1 | Press Release of the Company, dated January 23, 2020 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FIRST MID BANCSHARES, INC. | ||
|---|---|---|
| Date: January 23, 2020 | By: | /s/ Joseph R. Dively |
| Joseph R. Dively | ||
| Chairman and Chief Executive Officer |
EdgarFiling
EXHIBIT 99.1
First Mid Bancshares, Inc. Announces Fourth Quarter and Full Year 2019 Results
MATTOON, Ill., Jan. 23, 2020 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter and year-to-date period ended December 31, 2019.
Highlights
- Diluted earnings per share of $0.72 and $2.87 for the fourth quarter and full year, respectively
- Increased tangible book value for the year by 16.7% to $23.59
- Strong loan growth for the quarter of $71.8 million, or 2.7%
- Record quarter of noninterest income driven by growth in wealth management revenues
“We followed up a strong third quarter of loan growth with another solid quarter,” said Joe Dively, Chairman and Chief Executive Officer. “Our wealth management division had a great quarter and, combined with our insurance division’s successful 2019, we delivered record noninterest income for both the fourth quarter and the full year.”
“We achieved a lot in 2019 through our intense focus on the customer and delivering shareholder value. We made significant investments in technology to ensure we are delivering the best and most competitive products and services to our customers and for the communities we serve. For our shareholders, we increased our dividend, repurchased shares and delivered strong financial results, including an increase in tangible book value by nearly 17%. Our capital position is strong and we are well positioned for 2020 and beyond,” Dively concluded. **** Net Interest Income
Net interest income for the fourth quarter of 2019 decreased by $0.1 million, or 0.5% compared to the third quarter of 2019. The decline was primarily driven by a decrease of $0.8 million in accretion income, partially offset by lower interest expenses. Total accretion income for the quarter was $1.8 million compared to $2.6 million in the third quarter.
In comparison to the fourth quarter of 2018, net interest income was essentially the same at $31.0 million. Interest income increased by $0.7 million and was offset by higher interest expenses.
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.57% for the fourth quarter of 2019 compared to 3.60% in the prior quarter. The decrease was primarily driven by the decrease in accretion income of $0.8 million. Excluding accretion income, the net interest margin increased seven basis points for the quarter. Strong loan growth in the second half of the year, along with active management of funding costs, helped drive the increase.
In comparison to the fourth quarter of 2018, net interest margin decreased by 18 basis points. The year-over-year decrease in the ratio was primarily due to less accretion income and higher funding costs in a more competitive and challenging interest rate environment.
Loan Portfolio
Total loans ended the quarter at $2.70 billion, representing an increase of $71.8 million, or 2.7% compared to the prior quarter. The increase was in multiple categories with commercial real estate representing the largest amount. The loan growth was also well dispersed geographically with a majority of the growth coming from our St. Louis Metro and Peoria markets.
Loans increased by $50.8 million, or 1.9%, compared to the fourth quarter of last year. The year-over-year loan growth was primarily in commercial real estate and construction and land development, partially offset by declines in multifamily and 1-4 family properties. Loan growth for the year was muted by higher payoffs and efforts to improve overall credit quality from certain acquired loans.
Asset Quality
Nonperforming loans decreased by $1.9 million from year-end 2018, while the fourth quarter 2019 increased by $3.6 million primarily tied to two commercial credits. At December 31, 2019, nonperforming loans were 1.03% of total loans, allowance for loan losses was 1.00% of total loans, and the allowance for loan losses to non-performing loans was 96.7%. Non-performing loans increased from the previous quarter by $3.6 million to $27.8 million. Excluding outstanding acquired loans, the allowance for loan losses to total loans was 1.26%.
Net charge-offs were $2.6 million during the fourth quarter compared to $2.3 million in the third quarter of 2019. The Company recorded provision expense of $2.7 million consistent with the third quarter of 2019 and $0.4 million less than the fourth quarter of last year.
Deposits
Total deposits at December 31, 2019 were $2.92 billion, a decrease of $71.6 million in the quarter. Some of the decrease was directly attributable to the increase of $33.6 million in repurchase agreements. A majority of the remaining decline came from maturities on higher cost time deposits and certain commercial customers with seasonal cash flows. The Company took steps to reduce its funding costs in early October through a variety of steps and the average cost of funds declined 12 basis points to 0.67% for the quarter.
On a year-over-year basis, deposits were down $71.3 million. Increases in noninterest bearing demand deposits were offset by decreases in money market accounts and interest bearing demand deposits.
Noninterest Income
Noninterest income for the fourth quarter of 2019 was a record $14.9 million compared to $12.9 million in the third quarter. The increase was primarily driven by farm management and real estate income within wealth management revenues.
Noninterest income increased $3.2 million compared to the fourth quarter of last year due to a combination of both organic and acquisition growth.
Noninterest Expenses
Noninterest expense for the fourth quarter totaled $27.6 million compared to $25.9 million in the third quarter. Most of the increase was in the salaries and benefits line on the income statement and was primarily driven by the growth in revenues.
Noninterest expense was $1.3 million higher than the fourth quarter of 2018. The year-over-year increase was primarily due to the expense tied to the growth in noninterest income revenues and having the SCB Bancorp acquisition in for the full quarter in 2019. The Company’s efficiency ratio, on a tax equivalent basis, for the fourth quarter of 2019 was 57.2% compared to 57.7% for the same period last year.
Capital and CECL
The Company’s capital levels remained above the “well capitalized” levels and ended the period as follows:
| Total capital to risk-weighted assets | 15.74% |
|---|---|
| Tier 1 capital to risk-weighted assets | 14.79% |
| Common equity tier 1 capital to risk-weighted assets | 14.12% |
| Leverage ratio | 11.20% |
In June 2016, the Financial Accounting Standards Board issued Accounting Standard Update 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“the standard”). The standard replaces the incurred loss methodology of estimating allowance for loan losses with an expected loss methodology that is commonly referred to as the current expected credit losses (“CECL”) methodology. The Company was required to adopt the standard, as amended, effective January 1, 2020. The Company has prepared an initial estimate of the impact from adopting the standard and believes its allowance for loan losses will be increased within a range of 5% to 10% as of adoption.
Capital Markets
On August 16, 2019, the Company adopted a repurchase plan under Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended. During the quarter, the Company did not repurchase any shares under the plan.
Under the previously announced ‘at-the-market’ equity offering, the Company did not sell any shares during the current quarter.
About Us: 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. Our mission is to fulfill the financial needs of our communities with exceptional personal service, professionalism and integrity, and deliver meaningful value and results for our customers and shareholders.
First Mid is a $3.8 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 and eastern Missouri 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 154 years.
More information about the Company is available on our website at www.firstmid.com. Our stock is traded in The NASDAQ Stock Market LLC under the ticker symbol “FMBH”.
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 “Net Interest Margin, tax equivalent,” “Tangible Book Value per Common Share,” and “Common Equity Tier 1 Capital to Risk Weighted Assets”. 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 1955. 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/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; and accounting principles, policies and guidelines. 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 Securities and Exchange Commission (the “SEC”), including its Annual Reports on Form 10-K. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.
Investor Contact: Aaron Holt VP, Shareholder Relations 217-258-0463 [email protected]
- Tables Follow -
| FIRST MID BANCSHARES, INC. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Condensed Consolidated Balance Sheets | |||||||||||||||
| (In thousands, unaudited) | |||||||||||||||
| As of | |||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||
| 2019 | 2019 | 2018 | |||||||||||||
| Assets | |||||||||||||||
| Cash and cash equivalents | $ | 85,080 | $ | 108,229 | $ | 141,400 | |||||||||
| Investment securities | 760,215 | 811,573 | 769,279 | ||||||||||||
| Loans (including loans held for sale) | 2,695,347 | 2,623,558 | 2,644,519 | ||||||||||||
| Less allowance for loan losses | (26,911 | ) | (26,741 | ) | (26,189 | ) | |||||||||
| Net loans | 2,668,436 | 2,596,817 | 2,618,330 | ||||||||||||
| Premises and equipment, net | 59,491 | 59,724 | 59,117 | ||||||||||||
| Goodwill and intangibles, net | 133,257 | 134,461 | 139,097 | ||||||||||||
| Bank owned life insurance | 67,225 | 66,786 | 65,484 | ||||||||||||
| Other assets | 65,722 | 60,139 | 47,027 | ||||||||||||
| Total assets | $ | 3,839,426 | $ | 3,837,729 | $ | 3,839,734 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||
| Deposits: | |||||||||||||||
| Non-interest bearing | $ | 633,331 | $ | 596,518 | $ | 575,784 | |||||||||
| Interest bearing | 2,284,035 | 2,392,407 | 2,412,902 | ||||||||||||
| Total deposits | 2,917,366 | 2,988,925 | 2,988,686 | ||||||||||||
| Repurchase agreement with customers | 208,109 | 174,530 | 192,330 | ||||||||||||
| Other borrowings | 118,895 | 80,862 | 127,469 | ||||||||||||
| Junior subordinated debentures | 18,858 | 29,126 | 29,000 | ||||||||||||
| Other liabilities | 49,589 | 42,327 | 26,385 | ||||||||||||
| Total liabilities | 3,312,817 | 3,315,770 | 3,363,870 | ||||||||||||
| Total stockholders' equity | 526,609 | 521,959 | 475,864 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 3,839,426 | $ | 3,837,729 | $ | 3,839,734 | |||||||||
| 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, | ||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||
| Interest income: | |||||||||||||||
| Interest and fees on loans | $ | 31,206 | $ | 30,553 | $ | 126,825 | $ | 105,772 | |||||||
| Interest on investment securities | 5,101 | 4,966 | 21,043 | 18,237 | |||||||||||
| Interest on federal funds sold & other deposits | 214 | 269 | 1,853 | 556 | |||||||||||
| Total interest income | 36,521 | 35,788 | 149,721 | 124,565 | |||||||||||
| Interest expense: | |||||||||||||||
| Interest on deposits | 4,447 | 3,422 | 18,939 | 8,571 | |||||||||||
| Interest on securities sold under agreements to repurchase | 240 | 134 | 911 | 330 | |||||||||||
| Interest on other borrowings | 610 | 834 | 2,721 | 2,517 | |||||||||||
| Interest on subordinated debt | 240 | 396 | 1,476 | 1,409 | |||||||||||
| Total interest expense | 5,537 | 4,786 | 24,047 | 12,827 | |||||||||||
| Net interest income | 30,984 | 31,002 | 125,674 | 111,738 | |||||||||||
| Provision for loan losses | 2,737 | 3,184 | 6,433 | 8,667 | |||||||||||
| Net interest income after provision for loan | 28,247 | 27,818 | 119,241 | 103,071 | |||||||||||
| Non-interest income: | |||||||||||||||
| Wealth management revenues | 5,027 | 3,540 | 15,570 | 8,460 | |||||||||||
| Insurance commissions | 3,361 | 2,390 | 16,029 | 5,592 | |||||||||||
| Service charges | 1,985 | 1,988 | 7,837 | 7,435 | |||||||||||
| Securities gains, net | 479 | 0 | 802 | 901 | |||||||||||
| Mortgage banking revenues | 579 | 266 | 1,746 | 1,205 | |||||||||||
| ATM/debit card revenue | 2,100 | 2,044 | 8,491 | 7,487 | |||||||||||
| Other | 1,342 | 1,419 | 5,542 | 4,334 | |||||||||||
| Total non-interest income | 14,873 | 11,647 | 56,017 | 35,414 | |||||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and employee benefits | 15,942 | 13,952 | 62,578 | 46,803 | |||||||||||
| Net occupancy and equipment expense | 4,305 | 4,225 | 17,680 | 14,533 | |||||||||||
| Net other real estate owned (income) expense | 30 | 260 | 443 | 282 | |||||||||||
| FDIC insurance | (170 | ) | 319 | 219 | 1,059 | ||||||||||
| Amortization of intangible assets | 1,296 | 1,156 | 5,848 | 3,215 | |||||||||||
| Stationary and supplies | 269 | 238 | 1,104 | 963 | |||||||||||
| Legal and professional expense | 1,451 | 1,318 | 5,164 | 5,243 | |||||||||||
| Marketing and donations | 573 | 541 | 2,031 | 1,794 | |||||||||||
| Other | 3,905 | 4,311 | 16,925 | 16,088 | |||||||||||
| Total non-interest expense | 27,601 | 26,320 | 111,992 | 89,980 | |||||||||||
| Income before income taxes | 15,519 | 13,145 | 63,266 | 48,505 | |||||||||||
| Income taxes | 3,543 | 3,206 | 15,323 | 11,905 | |||||||||||
| Net income | $ | 11,976 | $ | 9,939 | $ | 47,943 | $ | 36,600 | |||||||
| Per Share Information | |||||||||||||||
| Basic earnings per common share | $ | 0.72 | $ | 0.62 | $ | 2.88 | $ | 2.53 | |||||||
| Diluted earnings per common share | 0.72 | 0.62 | 2.87 | 2.52 | |||||||||||
| Dividends per common share | 0.40 | 0.36 | 0.76 | 0.70 | |||||||||||
| Weighted average shares outstanding | 16,667,370 | 15,985,021 | 16,675,269 | 14,487,126 | |||||||||||
| Diluted weighted average shares outstanding | 16,699,876 | 15,998,551 | 16,709,476 | 14,500,585 | |||||||||||
| 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, | |||||||||||
| 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||
| Interest income: | |||||||||||||||
| Interest and fees on loans | $ | 31,206 | $ | 31,976 | $ | 31,539 | $ | 32,104 | $ | 30,553 | |||||
| Interest on investment securities | 5,101 | 5,297 | 5,436 | 5,209 | 4,966 | ||||||||||
| Interest on federal funds sold & other deposits | 214 | 305 | 596 | 738 | 269 | ||||||||||
| Total interest income | 36,521 | 37,578 | 37,571 | 38,051 | 35,788 | ||||||||||
| Interest expense: | |||||||||||||||
| Interest on deposits | 4,447 | 5,174 | 4,940 | 4,378 | 3,422 | ||||||||||
| Interest on securities sold under agreements to repurchase | 240 | 196 | 215 | 260 | 134 | ||||||||||
| Interest on other borrowings | 610 | 691 | 697 | 723 | 834 | ||||||||||
| Interest on subordinated debt | 240 | 392 | 406 | 438 | 396 | ||||||||||
| Total interest expense | 5,537 | 6,453 | 6,258 | 5,799 | 4,786 | ||||||||||
| Net interest income | 30,984 | 31,125 | 31,313 | 32,252 | 31,002 | ||||||||||
| Provision for loan losses | 2,737 | 2,658 | 91 | 947 | 3,184 | ||||||||||
| Net interest income after provision for loan | 28,247 | 28,467 | 31,222 | 31,305 | 27,818 | ||||||||||
| Non-interest income: | |||||||||||||||
| Wealth management revenues | 5,027 | 3,311 | 3,587 | 3,645 | 3,540 | ||||||||||
| Insurance commissions | 3,361 | 3,353 | 3,760 | 5,555 | 2,390 | ||||||||||
| Service charges | 1,985 | 2,091 | 1,959 | 1,802 | 1,988 | ||||||||||
| Securities gains, net | 479 | 51 | 218 | 54 | 0 | ||||||||||
| Mortgage banking revenues | 579 | 582 | 346 | 239 | 266 | ||||||||||
| ATM/debit card revenue | 2,100 | 2,173 | 2,202 | 2,016 | 2,044 | ||||||||||
| Other | 1,342 | 1,356 | 1,516 | 1,328 | 1,419 | ||||||||||
| Total non-interest income | 14,873 | 12,917 | 13,588 | 14,639 | 11,647 | ||||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and employee benefits | 15,942 | 14,497 | 15,565 | 16,574 | 13,952 | ||||||||||
| Net occupancy and equipment expense | 4,305 | 4,377 | 4,543 | 4,455 | 4,225 | ||||||||||
| Net other real estate owned (income) expense | 30 | 172 | 188 | 53 | 260 | ||||||||||
| FDIC insurance | (170 | ) | (87 | ) | 197 | 279 | 319 | ||||||||
| Amortization of intangible assets | 1,296 | 1,373 | 1,823 | 1,356 | 1,156 | ||||||||||
| Stationary and supplies | 269 | 284 | 264 | 287 | 238 | ||||||||||
| Legal and professional expense | 1,451 | 1,215 | 1,304 | 1,194 | 1,318 | ||||||||||
| Marketing and donations | 573 | 523 | 481 | 454 | 541 | ||||||||||
| Other | 3,905 | 3,540 | 5,822 | 3,658 | 4,311 | ||||||||||
| Total non-interest expense | 27,601 | 25,894 | 30,187 | 28,310 | 26,320 | ||||||||||
| Income before income taxes | 15,519 | 15,490 | 14,623 | 17,634 | 13,145 | ||||||||||
| Income taxes | 3,543 | 3,820 | 3,642 | 4,318 | 3,206 | ||||||||||
| Net income | $ | 11,976 | $ | 11,670 | $ | 10,981 | $ | 13,316 | $ | 9,939 | |||||
| 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, | |||||||||||
| 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||
| Loan Portfolio | |||||||||||||||
| Construction and land development | $ | 94,142 | $ | 68,821 | $ | 57,069 | $ | 49,179 | $ | 50,619 | |||||
| Farm loans | 240,241 | 229,715 | 229,924 | 236,864 | 231,700 | ||||||||||
| 1-4 Family residential properties | 336,427 | 347,370 | 355,143 | 362,617 | 373,518 | ||||||||||
| Multifamily residential properties | 153,948 | 154,859 | 167,709 | 175,903 | 184,051 | ||||||||||
| Commercial real estate | 995,702 | 954,992 | 888,711 | 905,679 | 906,850 | ||||||||||
| Loans secured by real estate | 1,820,460 | 1,755,757 | 1,698,556 | 1,730,242 | 1,746,738 | ||||||||||
| Agricultural loans | 136,124 | 121,650 | 118,216 | 118,026 | 135,877 | ||||||||||
| Commercial and industrial loans | 528,973 | 543,937 | 530,405 | 550,853 | 557,011 | ||||||||||
| Consumer loans | 83,183 | 83,171 | 84,907 | 86,540 | 91,516 | ||||||||||
| All other loans | 126,607 | 119,043 | 114,459 | 111,333 | 113,377 | ||||||||||
| Total loans | 2,695,347 | 2,623,558 | 2,546,543 | 2,596,994 | 2,644,519 | ||||||||||
| Deposit Portfolio | |||||||||||||||
| Non-interest bearing demand deposits | $ | 633,331 | $ | 596,518 | $ | 603,823 | $ | 628,944 | $ | 575,784 | |||||
| Interest bearing demand deposits | 850,956 | 899,763 | 844,931 | 828,144 | 903,426 | ||||||||||
| Savings deposits | 428,778 | 431,497 | 438,769 | 444,619 | 432,319 | ||||||||||
| Money Market | 419,801 | 435,517 | 473,160 | 483,867 | 485,388 | ||||||||||
| Time deposits | 584,500 | 625,630 | 651,807 | 660,639 | 591,769 | ||||||||||
| Total deposits | 2,917,366 | 2,988,925 | 3,012,490 | 3,046,213 | 2,988,686 | ||||||||||
| Asset Quality | |||||||||||||||
| Non-performing loans | $ | 27,818 | $ | 24,203 | $ | 25,773 | $ | 25,988 | $ | 29,749 | |||||
| Non-performing assets | 31,538 | 28,645 | 29,380 | 29,857 | 32,344 | ||||||||||
| Net charge-offs | 2,567 | 2,276 | 436 | 432 | 834 | ||||||||||
| Allowance for loan losses to non-performing loans | 96.74 | % | 110.49 | % | 102.27 | % | 102.76 | % | 88.03 | % | |||||
| Allowance for loan losses to total loans outstanding | 1.00 | % | 1.02 | % | 1.04 | % | 1.03 | % | 0.99 | % | |||||
| Nonperforming loans to total loans | 1.03 | % | 0.92 | % | 1.01 | % | 1.00 | % | 1.13 | % | |||||
| Nonperforming assets to total assets | 0.82 | % | 0.75 | % | 0.77 | % | 0.77 | % | 0.84 | % | |||||
| Common Share Data | |||||||||||||||
| Common shares outstanding | 16,673,480 | 16,663,095 | 16,694,316 | 16,677,128 | 16,644,635 | ||||||||||
| Book value per common share | $ | 31.58 | $ | 31.32 | $ | 30.49 | $ | 29.81 | $ | 28.57 | |||||
| Tangible book value per common share | 23.59 | 23.25 | 22.35 | 21.57 | 20.22 | ||||||||||
| Market price of stock | 35.25 | 34.62 | 34.92 | 33.32 | 31.92 | ||||||||||
| Key Performance Ratios and Metrics | |||||||||||||||
| End of period earning assets | $ | 3,464,144 | $ | 3,444,775 | $ | 3,447,695 | $ | 3,539,175 | $ | 3,491,606 | |||||
| Average earning assets | 3,464,200 | 3,444,088 | 3,470,776 | 3,516,032 | 3,307,437 | ||||||||||
| Average rate on average earning assets (tax equivalent) | 4.24 | % | 4.39 | % | 4.40 | % | 4.44 | % | 4.35 | % | |||||
| Average rate on cost of funds | 0.67 | % | 0.79 | % | 0.76 | % | 0.70 | % | 0.60 | % | |||||
| Net interest margin (tax equivalent) | 3.57 | % | 3.60 | % | 3.64 | % | 3.74 | % | 3.75 | % | |||||
| Return on average assets | 1.25 | % | 1.22 | % | 1.15 | % | 1.38 | % | 1.10 | % | |||||
| Return on average common equity | 9.17 | % | 9.04 | % | 8.80 | % | 11.02 | % | 8.99 | % | |||||
| Efficiency ratio (tax equivalent) ^1^ | 57.23 | % | 54.69 | % | 62.31 | % | 56.77 | % | 57.66 | % | |||||
| Full-time equivalent employees | 827 | 830 | 826 | 832 | 818 | ||||||||||
| ^1^ Represents non-interest expense divided by the sum of fully tax equivalent net interest income and non-interest income. Non-interest expense adjustments exclude foreclosed property expense | |||||||||||||||
| and amortization of intangibles. Net-interest income includes tax equivalent adjustments and non-interest income excludes gains and losses on the sale of investment securities. | |||||||||||||||
| Note: Asset Quality metrics as of December 31, 2018 were adjusted to match the disclosures in the 10K, which exclude TDR's from the Soy Capital acquisition. | |||||||||||||||
| FIRST MID BANCSHARES, INC. | |||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | ||||||||
| Net Interest Margin | |||||||||||||||
| (In thousands, unaudited) | |||||||||||||||
| For the Quarter Ended December 2019 | |||||||||||||||
| QTD Average | Average | ||||||||||||||
| Balance | Interest | Rate | |||||||||||||
| INTEREST EARNING ASSETS | |||||||||||||||
| Interest bearing deposits | $ | 37,318 | $ | 182 | 1.93 | % | |||||||||
| Federal funds sold | 924 | 3 | 1.50 | % | |||||||||||
| Certificates of deposits investments | 5,206 | 29 | 2.23 | % | |||||||||||
| Investment Securities: | |||||||||||||||
| Taxable (total less municipals) | 608,505 | 3,799 | 2.50 | % | |||||||||||
| Tax-exempt (Municipals) | 181,906 | 1,647 | 3.62 | % | |||||||||||
| Loans (net of unearned income) | 2,630,342 | 31,393 | 4.74 | % | |||||||||||
| Total interest earning assets | 3,464,200 | 37,054 | 4.24 | % | |||||||||||
| NONEARNING ASSETS | |||||||||||||||
| Cash and due from banks | 97,424 | ||||||||||||||
| Premises and equipment | 59,634 | ||||||||||||||
| Other nonearning assets | 251,843 | ||||||||||||||
| Allowance for loan losses | (27,276 | ) | |||||||||||||
| Total assets | $ | 3,845,825 | |||||||||||||
| INTEREST BEARING LIABILITIES | |||||||||||||||
| Demand deposits | $ | 1,304,044 | $ | 1,413 | 0.43 | % | |||||||||
| Savings deposits | 434,877 | 127 | 0.12 | % | |||||||||||
| Time deposits | 596,121 | 2,907 | 1.93 | % | |||||||||||
| Total interest bearing deposits | 2,335,042 | 4,447 | 0.76 | % | |||||||||||
| Repurchase agreements | 191,498 | 240 | 0.50 | % | |||||||||||
| FHLB advances | 105,134 | 604 | 2.28 | % | |||||||||||
| Federal funds purchased | 1,082 | 6 | 2.13 | % | |||||||||||
| Subordinated debt | 19,503 | 240 | 4.89 | % | |||||||||||
| Other borrowings | 0 | 0 | 0.00 | % | |||||||||||
| Total borrowings | 317,217 | 1,090 | 1.36 | % | |||||||||||
| Total interest bearing liabilities | 2,652,259 | 5,537 | 0.83 | % | |||||||||||
| NONINTEREST BEARING LIABILITIES | |||||||||||||||
| Demand deposits | 623,351 | Average cost of funds | 0.67 | % | |||||||||||
| Other liabilities | 47,938 | ||||||||||||||
| Stockholders' equity | 522,276 | ||||||||||||||
| Total liabilities & stockholders' equity | $ | 3,845,825 | |||||||||||||
| Net Interest Earnings / Spread | $ | 31,517 | 3.41 | % | |||||||||||
| Impact of Non-Interest Bearing Funds | 0.16 | % | |||||||||||||
| Tax effected yield on interest earning assets | 3.57 | % | |||||||||||||
| 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, | |||||||||||
| 2019 | 2019 | 2019 | 2019 | 2018 | |||||||||||
| Net interest income as reported | $ | 30,984 | $ | 31,125 | $ | 31,313 | $ | 32,252 | $ | 31,002 | |||||
| Net interest income, (tax equivalent) | 31,517 | 31,659 | 31,850 | 32,800 | 31,546 | ||||||||||
| Average earning assets | 3,464,200 | 3,444,088 | 3,470,776 | 3,516,032 | 3,307,437 | ||||||||||
| Net interest margin (tax equivalent) ^1^ | 3.57 | % | 3.60 | % | 3.64 | % | 3.74 | % | 3.75 | % | |||||
| Common stockholder's equity | $ | 526,609 | $ | 521,959 | $ | 508,958 | $ | 497,152 | $ | 475,864 | |||||
| Goodwill and intangibles, net | 133,257 | 134,461 | 135,762 | 137,461 | 139,097 | ||||||||||
| Common shares outstanding | 16,673 | 16,663 | 16,695 | 16,677 | 16,645 | ||||||||||
| Tangible Book Value per common share | $ | 23.59 | $ | 23.25 | $ | 22.35 | $ | 21.57 | $ | 20.22 | |||||
| Common equity tier 1 capital | $ | 398,536 | $ | 391,429 | $ | 379,581 | $ | 372,731 | $ | 357,690 | |||||
| Risk weighted assets | 2,822,648 | 2,923,245 | 2,935,236 | 2,964,638 | 3,030,259 | ||||||||||
| Common equity tier 1 capital to risk weighted assets ^2^ | 14.12 | % | 13.39 | % | 12.93 | % | 12.57 | % | 11.80 | % | |||||
| ^1^ Annualized and calculated on a tax equivalent basis where interest earned on tax-exempt securities and loans is adjusted to an amount comparable to interest subject | |||||||||||||||
| to normal income taxes assuming a federal tax rate of 21% and includes the impact of non-interest bearing funds. | |||||||||||||||
| ^2^ Defined as total common equity adjusted for gains/(losses) less goodwill and intangibles divided by risk weighted assets as of period end. |