First Mid Bancshares, Inc. Announces First Quarter 2022 Results

Written by Customer Service on April 27, 2022. Posted in Earnings Releases And Operating Results.

MATTOON, Ill., April 27, 2022 (GLOBE NEWSWIRE) — First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended March 31, 2022.

Highlights

Net income of $16.6 million, or $0.86 diluted EPS
Adjusted net income (non-GAAP) of $18.7 million, or $0.96 diluted EPS
Completed the acquisition of Delta Bancshares Company (“Delta”) and its subsidiary Jefferson Bank and Trust (“Jefferson”) on February 14, 2022
Strong quarter of wealth management and insurance revenues delivering on our unique diversification
Board of Directors declared regular quarterly dividend of $0.22 per share

“We are off to a great start in 2022 with strong earnings across our diversified revenue streams,” said Joe Dively, Chairman and Chief Executive Officer. “The quarter was highlighted by the closing of the Delta acquisition, which brings additional depth and an expanded retail presence to our St. Louis Metro footprint. The reception from Jefferson’s customers has been positive and our experienced integration team is preparing for a mid-June bank system conversion.”

“Our wealth management group had a great quarter led by higher farm services revenue with increasing commodity prices and farmland sales. Assets under management for the group increased to $5.4 billion. Our insurance group also had a strong start to the year, and combined with wealth management, these two business units recognized year-over-year revenue growth of 21.3%. In what has historically been a seasonally slow quarter for us, loan growth was 1.1%, normalized for acquired and Paycheck Protection Program (“PPP”) loans. I am pleased with the first quarter momentum and expect that to carry forward throughout the year,” Dively concluded.

Net Interest Income

Net interest income for the first quarter of 2022 increased by $0.8 million, or 1.8% compared to the fourth quarter of 2021. Interest income increased by $0.8 million and interest expense was flat from the previous quarter. The increase in interest income was primarily driven by a combination of organic growth and acquisitions. Accretion income increased by $0.4 million in the quarter to $1.1 million and ended the quarter with a remaining discount of $9.3 million. Interest expense was flat with slightly higher interest on deposits offset by lower interest on FHLB borrowings.

In comparison to the first quarter of 2021, net interest income increased $6.8 million, or 18.4%. The increase was primarily the result of organic loan growth and the impact of acquisitions. Total interest expense was lower by $0.4 million compared to the same quarter last year, despite the Delta acquisition and the first quarter 2021 acquisition of Providence Bank (“Providence”).

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.07% for the first quarter of 2022, which was 4 basis points lower compared to the prior quarter. Earning asset yields declined by 4 basis points, with a decline in loan yields partially offset by higher rates on securities. Average cost of funds was flat at 26 basis points.

In comparison to the first quarter of last year, the net interest margin decreased 9 basis points, with earning asset yields down 19 basis points and average cost of funds lower by 10 basis points. The first quarter of 2021 included 19 basis points of PPP fee income.

Loan Portfolio

Total loans ended the quarter at $4.45 billion, representing an increase of $459.0 million compared to the prior quarter. The increase was primarily driven by the addition of Jefferson, which added $426.4 million. PPP loans declined by $11.0 million and ended the period with $5.8 million outstanding, including $0.8 million from Jefferson. Excluding PPP loans and the addition of Jefferson, loans increased $43.6 million, or 1.1%. Growth was primarily within our CRE and C&I sectors, partially offset by the seasonal paydowns in Ag operating lines and elevated commercial payoffs. The pipeline for loan growth continues to look solid across our footprint.

Asset Quality

The Company has always prided itself on a strong credit culture and the asset quality metrics for March 31, 2022 reflect those efforts. The allowance for credit losses at the end of the quarter was 1.31% of total loans. Also at quarter end, the ratio of non-performing loans to total loans was 0.50%, and the allowance for credit losses to non-performing loans was 260.3%. The ratio of nonperforming assets to total assets was 0.41% at quarter end. Nonperforming loans and nonperforming assets increased slightly in the period with the addition of Jefferson. The Company recognized a small amount of net recoveries during the first quarter compared to $1.8 million in net charge-offs during the prior quarter.

Provision expense was recorded in the amount of $3.0 million in the first quarter. The Company recorded $2.0 million for the non-PCD CECL requirement tied to the Jefferson acquisition. In addition to the non-PCD requirement related to the Jefferson acquisition, the Company added $0.9 million in PCD reserve through purchase accounting. In total, the allowance for credit losses increased $3.8 million to $58.5 million in the quarter.

Deposits

Total deposits ended the quarter at $5.49 billion, which represented an increase of $530.8 million from the prior quarter primarily from the addition of Jefferson, which added $558.6 million in deposits at the time the acquisition closed. Excluding Jefferson, total deposits decreased by $27.8 million driven primarily from maturing single-service time deposits. The Company’s average rate on cost of funds was 0.26%, flat compared to last quarter, and down from 0.36% in the first quarter of 2021.

Noninterest Income

Noninterest income for the first quarter of 2022 was $21.1 million compared to $18.1 million in the fourth quarter of 2021. The increase compared to the prior quarter was partially due to the addition of Jefferson. Insurance and wealth management revenues represented 62% of total noninterest income reflecting the diversification of our revenue sources. Wealth management had a strong quarter of farm management fee income on higher commodity prices and farmland sales. Both the wealth management and insurance business are well diversified within their revenue sources and deliver consistent cash flows. Mortgage banking revenues declined by $0.4 million due to the macro conditions with limited housing supply and higher mortgage interest rates. As a percent of noninterest income, mortgage banking was 2.1%.

In comparison to the first quarter of 2021, noninterest income increased $3.3 million, or 18.8%. The year-over-year increase was driven by strong growth in our wealth management and insurance businesses and the addition of Jefferson, partially offset by a $1.0 million decline in mortgage banking revenue.

Noninterest Expenses

Noninterest expense for the first quarter of 2022 totaled $40.4 million compared to $36.4 million in the fourth quarter. The increase was primarily driven by the addition of Jefferson, the producer incentive compensation tied to the strong business unit revenue growth, and overall inflationary pressures. The quarter included $0.6 million of acquisition related costs.

In comparison to the first quarter of 2021, noninterest expenses increased $2.8 million. The increase was primarily due to the addition of Jefferson and Providence, incentive compensation on business unit revenue growth, and overall inflationary pressures.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the first quarter 2022 was 58.6% compared to 55.8% in the prior quarter and 61.2% for the same period last year.

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	15.41%
Tier 1 capital to risk-weighted assets	12.42%
Common equity tier 1 capital to risk-weighted assets	12.03%
Leverage ratio	9.28%

The Company’s Board of Directors approved a regular quarterly dividend in the amount of $0.22 payable on June 1, 2022 for shareholders of record on May 18, 2022.

While regulatory capital levels were strong, the Company’s tangible book value per common share declined in the period by approximately 11.6%. A portion of this decline was anticipated pursuant to the Jefferson acquisition where we announced an expected 3.0% dilution to tangible book value per common share at closing. However, the rapid move in interest rates during the quarter was the primary driver for the decline as the unrealized loss position on the investment portfolio increased to $74.0 million.

About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., Jefferson Bank & Trust, First Mid Insurance Group, Inc., and First Mid Wealth Management Co. First Mid is a $6.6 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 157 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, 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; 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; 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 liquidity and capital positions, impair the ability of First Mid’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 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.

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
	March 31,			December 31,			March 31,
	2022			2021			2021

Assets
Cash and cash equivalents	$	223,980		$	168,602		$	410,017
Investment securities	1,472,277			1,431,299			1,099,532
Loans (including loans held for sale)	4,454,561			3,995,523			3,943,099
Less allowance for credit losses	(58,474		)	(54,655		)	(55,418		)
Net loans	4,396,087			3,940,868			3,887,681
Premises and equipment, net	89,319			81,484			86,654
Goodwill and intangibles, net	174,499			141,376			138,606
Bank owned life insurance	149,041			132,375			124,925
Other assets	126,803			90,578			89,855
Total assets	$	6,632,006		$	5,986,582		$	5,837,270

Liabilities and Stockholders’ Equity
Deposits:
Non-interest bearing	$	1,373,881		$	1,246,673		$	1,185,181
Interest bearing	4,113,424			3,709,813			3,552,512
Total deposits	5,487,305			4,956,486			4,737,693
Repurchase agreement with customers	187,326			146,268			212,503
Other borrowings	126,396			86,446			116,861
Junior subordinated debentures	19,237			19,195			19,069
Subordinated debt	94,438			94,400			94,289
Other liabilities	50,919			49,893			54,971
Total liabilities	5,965,621			5,352,688			5,235,386

Total stockholders’ equity	666,385			633,894			601,884
Total liabilities and stockholders’ equity	$	6,632,006		$	5,986,582		$	5,837,270

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)

	Three Months Ended
	March 31,
	2022			2021
Interest income:
Interest and fees on loans	$	39,908		$	35,886
Interest on investment securities		7,170			4,842
Interest on federal funds sold & other deposits		67			88
Total interest income		47,145			40,816
Interest expense:
Interest on deposits		2,148			2,484
Interest on securities sold under agreements to repurchase		67			70
Interest on other borrowings		276			374
Interest on jr. subordinated debentures		146			140
Interest on subordinated debt		986			984
Total interest expense		3,623			4,052
Net interest income		43,522			36,764
Provision for loan losses		2,952			12,136
Net interest income after provision for loan		40,570			24,628
Non-interest income:
Wealth management revenues		5,975			4,926
Insurance commissions		7,104			5,857
Service charges		2,056			1,364
Securities gains, net		0			4
Mortgage banking revenues		444			1,409
ATM/debit card revenue		2,898			2,699
Other		2,611			1,490
Total non-interest income		21,088			17,749
Non-interest expense:
Salaries and employee benefits		24,302			23,487
Net occupancy and equipment expense		6,155			4,970
Net other real estate owned (income) expense		(33	)		78
FDIC insurance		426			452
Amortization of intangible assets		1,522			1,220
Stationary and supplies		311			316
Legal and professional expense		1,734			1,402
Marketing and donations		873			502
Other		5,098			5,173
Total non-interest expense		40,388			37,600
Income before income taxes		21,270			4,777
Income taxes		4,654			668
Net income	$	16,616		$	4,109

Per Share Information
Basic earnings per common share	$	0.86		$	0.24
Diluted earnings per common share		0.86			0.24

Weighted average shares outstanding		19,295,860			17,299,927
Diluted weighted average shares outstanding		19,358,457			17,352,947

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)

	For the Quarter Ended
	March 31,			December 31,		September 30,		June 30,			March 31,
	2022			2021		2021		2021			2021
Interest income:
Interest and fees on loans	$	39,908		$	39,711	$	43,292	$	40,795		$	35,886
Interest on investment securities		7,170			6,500		5,835		5,739			4,842
Interest on federal funds sold & other deposits		67			88		136		101			88
Total interest income		47,145			46,299		49,263		46,635			40,816
Interest expense:
Interest on deposits		2,148			2,057		2,234		2,262			2,484
Interest on securities sold under agreements to repurchase		67			52		52		57			70
Interest on other borrowings		276			336		359		445			374
Interest on jr. subordinated debentures		146			125		137		139			140
Interest on subordinated debt		986			985		985		985			984
Total interest expense		3,623			3,555		3,767		3,888			4,052
Net interest income		43,522			42,744		45,496		42,747			36,764
Provision for loan losses		2,952			2,472		1,103		(560	)		12,136
Net interest income after provision for loan		40,570			40,272		44,393		43,307			24,628
Non-interest income:
Wealth management revenues		5,975			6,261		4,204		5,016			4,926
Insurance commissions		7,104			4,150		3,932		4,988			5,857
Service charges		2,056			2,067		1,838		1,539			1,364
Securities gains, net		0			36		11		73			4
Mortgage banking revenues		444			890		1,477		1,691			1,409
ATM/debit card revenue		2,898			3,074		3,060		3,141			2,699
Other		2,611			1,646		1,837		1,836			1,490
Total non-interest income		21,088			18,124		16,359		18,284			17,749
Non-interest expense:
Salaries and employee benefits		24,302			20,424		21,092		24,908			23,487
Net occupancy and equipment expense		6,155			5,712		5,382		5,482			4,970
Net other real estate owned (income) expense		(33	)		315		1,507		1,966			78
FDIC insurance		426			406		268		478			452
Amortization of intangible assets		1,522			1,462		1,414		1,295			1,220
Stationary and supplies		311			311		299		235			316
Legal and professional expense		1,734			1,811		1,878		1,639			1,402
Marketing and donations		873			1,915		679		507			502
Other		5,098			4,038		3,802		9,503			5,173
Total non-interest expense		40,388			36,394		36,321		46,013			37,600
Income before income taxes		21,270			22,002		24,431		15,578			4,777
Income taxes		4,654			5,168		6,105		3,357			668
Net income	$	16,616		$	16,834	$	18,326	$	12,221		$	4,109

Per Share Information
Basic earnings per common share	$	0.86		$	0.93	$	1.01	$	0.68		$	0.24
Diluted earnings per common share		0.86			0.93		1.01		0.68			0.24

Weighted average shares outstanding		19,295,860			18,086,949		18,083,126		18,067,190			17,299,927
Diluted weighted average shares outstanding		19,358,457			18,135,380		18,136,146		18,120,210			17,352,947

FIRST MID BANCSHARES, INC.
Consolidated Financial Highlights and Ratios
(Dollars in thousands, except per share data)
(Unaudited)

	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021

Loan Portfolio
Construction and land development	$	131,504		$	145,118		$	180,061		$	141,568		$	165,376
Farm real estate loans		280,993			279,272			278,788			277,362			269,652
1-4 Family residential properties		417,232			400,313			412,565			394,902			412,470
Multifamily residential properties		369,926			298,942			306,911			274,910			297,984
Commercial real estate		1,965,321			1,666,198			1,583,255			1,480,198			1,402,885
Loans secured by real estate		3,164,976			2,789,843			2,761,580			2,568,940			2,548,367
Agricultural operating loans		121,708			151,484			126,534			123,101			121,070
Commercial and industrial loans		935,454			832,008			835,860			864,554			1,017,400
Consumer loans		89,685			78,442			80,064			84,541			91,705
All other loans		142,738			143,746			143,731			155,168			164,557
Total loans		4,454,561			3,995,523			3,947,769			3,796,304			3,943,099

Deposit Portfolio
Non-interest bearing demand deposits	$	1,373,881		$	1,246,673		$	1,242,950		$	1,157,009		$	1,185,181
Interest bearing demand deposits		1,482,556			1,452,765			1,416,361			1,418,717			1,268,882
Savings deposits		685,228			626,523			612,404			598,232			668,098
Money Market		1,280,129			1,068,473			1,075,852			842,771			803,946
Time deposits		665,511			562,052			640,995			722,593			811,586
Total deposits		5,487,305			4,956,486			4,988,562			4,739,322			4,737,693

Asset Quality
Non-performing loans	$	22,465		$	22,036		$	27,723		$	30,410		$	31,984
Non-performing assets		27,269			27,055			33,359			37,648			45,323
Net charge-offs (recoveries)		(5	)		1,800			1,717			261			702
Allowance for credit losses to non-performing loans		260.29	%		248.03	%		194.72	%		179.54	%		173.27	%
Allowance for credit losses to total loans outstanding		1.31	%		1.37	%¹		1.39	%¹		1.50	%¹		1.50	%¹
Nonperforming loans to total loans		0.50	%		0.55	%		0.70	%		0.80	%		0.81	%
Nonperforming assets to total assets		0.41	%		0.45	%		0.55	%		0.65	%		0.78	%

Common Share Data
Common shares outstanding		20,437,183			18,080,303			18,083,126			18,078,474			18,042,256
Book value per common share	$	32.61		$	35.06		$	34.69		$	34.08		$	33.36
Tangible book value per common share⁽²⁾		24.07			27.24			26.80			26.33			25.68
Market price of stock		38.49			42.79			41.06			40.51			43.93

Key Performance Ratios and Metrics
End of period earning assets	$	6,038,542		$	5,504,517		$	5,542,199		$	5,269,882		$	5,374,848
Average earning assets		5,817,752			5,539,819			5,396,239			5,380,411			4,769,975
Average rate on average earning assets (tax equivalent)		3.33	%		3.37	%		3.67	%		3.52	%		3.52	%
Average rate on cost of funds		0.26	%		0.26	%		0.29	%		0.30	%		0.36	%
Net interest margin (tax equivalent)⁽²⁾		3.07	%		3.11	%		3.38	%		3.22	%		3.16	%
Return on average assets		1.05	%		1.12	%		1.25	%		0.84	%		0.32	%
Return on average common equity		9.95	%		10.74	%		11.67	%		8.00	%		2.78	%
Efficiency ratio (tax equivalent)⁽²⁾		58.59	%		55.75	%		52.73	%		59.91	%		61.20	%
Full-time equivalent employees		1,050			965			960			960			983

¹Excludes Paycheck Protection Program loans.
²Non-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 31, 2022
	QTD Average					Average
	Balance			Interest		Rate
INTEREST EARNING ASSETS
Interest bearing deposits	$	135,176		$	55	0.16	%
Federal funds sold		3,714			1	0.13	%
Certificates of deposits investments		2,238			11	2.04	%
Investment Securities:
Taxable (total less municipals)		1,111,109			4,905	1.77	%
Tax-exempt (Municipals)		382,909			2,867	2.99	%
Loans (net of unearned income)		4,182,606			40,076	3.88	%

Total interest earning assets		5,817,752			47,915	3.33	%

NONEARNING ASSETS
Cash and due from banks		114,257
Premises and equipment		83,883
Other nonearning assets		367,966
Allowance for loan losses		(58,462	)

Total assets	$	6,325,396

INTEREST BEARING LIABILITIES
Demand deposits	$	2,610,573		$	1,321	0.21	%
Savings deposits		658,038			119	0.07	%
Time deposits		615,142			708	0.47	%
Total interest bearing deposits		3,883,753			2,148	0.22	%
Repurchase agreements		173,491			67	0.16	%
FHLB advances		115,852			276	0.97	%
Federal funds purchased		44			–	0.00	%
Subordinated debt		94,413			986	4.24	%
Jr. subordinated debentures		19,210			146	3.08	%
Total borrowings		403,010			1,475	1.48	%
Total interest bearing liabilities		4,286,763			3,623	0.34	%

NONINTEREST BEARING LIABILITIES
Demand deposits		1,329,554		Average cost of funds		0.26	%
Other liabilities		41,345
Stockholders’ equity		667,734

Total liabilities & stockholders’ equity	$	6,325,396

Net Interest Earnings / Spread				$	44,292	2.99	%

Impact of Non-Interest Bearing Funds						0.08	%

Tax effected yield on interest earning assets						3.07	%

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, unaudited)

	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021

Net interest income as reported	$	43,522		$	42,744		$	45,496		$	42,747		$	36,764
Net interest income, (tax equivalent)		44,292			43,492			46,165			43,359			37,359
Average earning assets		5,817,752			5,539,819			5,396,239			5,380,411			4,769,975
Net interest margin (tax equivalent)		3.07	%		3.11	%		3.38	%		3.22	%		3.16	%


Common stockholder’s equity	$	666,385		$	633,894		$	627,225		$	616,066		$	601,884
Goodwill and intangibles, net		174,499			141,376			142,656			139,995			138,606
Common shares outstanding		20,437			18,080			18,083			18,078			18,042
Tangible Book Value per common share	$	24.07		$	27.24		$	26.80		$	26.33		$	25.68

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)

	As of and for the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2022			2021			2021			2021			2021
Adjusted earnings Reconciliation
Net Income – GAAP	$	16,616		$	16,834		$	18,326		$	12,221		$	4,109
Adjustments (post-tax):⁽¹⁾
Acquisition ACL on non-PCD assets in provision expense		1,580			–			–			–			9,072
Branch optimization costs		–			–			999			960			–
Integration and acquisition expenses		469			225			348			4,634			2,036
Total non-recurring adjustments (non-GAAP)	$	2,049		$	225		$	1,347		$	5,595		$	11,108

Adjusted earnings – non-GAAP	$	18,665		$	17,059		$	19,673		$	17,816		$	15,217
Adjusted diluted earnings per share (non-GAAP)	$	0.96		$	0.94		$	1.08		$	0.98		$	0.88

Efficiency Ratio Reconciliation
Noninterest expense – GAAP	$	40,388		$	36,394		$	36,321		$	46,013		$	37,600
Other real estate owned property income (expense)		33			(315	)		(242	)		(751	)		(78	)
Amortization of intangibles		(1,522	)		(1,462	)		(1,414	)		(1,295	)		(1,220	)
Branch optimization costs		–			–			(1,265	)		(1,215	)		–
integration and acquisition expenses		(594	)		(285	)		(440	)		(5,866	)		(2,578	)
Adjusted noninterest expense (non-GAAP)	$	38,305		$	34,332		$	32,960		$	36,886		$	33,724

Net interest income -GAAP	$	43,522		$	42,744		$	45,496		$	42,747		$	36,764
Effect of tax-exempt income⁽¹⁾		770			748			669			612			595
Adjusted net interest income (non-GAAP)	$	44,292		$	43,492		$	46,165		$	43,359		$	37,359

Noninterest income – GAAP	$	21,088		$	18,124		$	16,359		$	18,284		$	17,749
Gain on sales of investment securities, net		0			(36	)		(11	)		(73	)		(4	)
Adjusted noninterest income (non-GAAP)	$	21,088		$	18,088		$	16,348		$	18,211		$	17,745

Adjusted total revenue (non-GAAP)	$	65,380		$	61,580		$	62,513		$	61,570		$	55,104

Efficiency ratio (non-GAAP)		58.59	%		55.75	%		52.73	%		59.91	%		61.20	%

(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.

First Mid Bancshares, Inc. Announces First Quarter 2022 Results

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