MATTOON, Ill., Jan. 23, 2025 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ:FMBH) (the "Company") today announced its financial results for the quarter ended December 31, 2024.

Highlights

Net income of $19.2 million, or $0.80 diluted EPS
Adjusted net income (non-GAAP) of $20.9 million, or $0.87 diluted EPS
Loan growth and interest expense decline drives 6 basis points of margin expansion
Wealth management and insurance combined revenues increase over 11% in the quarter
Board of Directors declares regular quarterly dividend of $0.24 per share

"Revenue growth and interest expense management helped drive a solid increase in adjusted earnings, despite higher provision expense," said Joe Dively, Chairman and Chief Executive Officer. "Our net interest margin expanded, and noninterest income increased to 31% of revenues. Wealth management and insurance had a strong finish to the year with a combined revenue increase of 26% compared to the fourth quarter last year. Our Ag Services group had a record quarter of farmland sales in the period. Finally, we are pleased with the success of the multiple strategic technology investments we completed this year and continue to execute on for 2025. Collectively, these investments deliver a better customer experience and significant operating efficiency," Dively concluded.

Net Interest Income

Net interest income for the fourth quarter of 2024 increased by $1.4 million, or 2.4% compared to the third quarter of 2024. Interest income decreased by $1.3 million primarily driven by lower interest rates, partially offset by loan growth. Interest expense decreased by $2.7 million primarily due to lower interest rates, reducing wholesale funding, and actively managing existing accounts and promotional pricing with the Fed's rate cuts.

In comparison to the fourth quarter of 2023, net interest income increased $1.5 million, or 2.6%. Interest income was slightly lower by $0.1 million, while interest expense decreased $1.6 million. Interest income on loans increased $2.6 million while funding from investment securities and cash were used for loan growth.

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.41% for the fourth quarter of 2024, which was an increase of 6 basis points compared to the prior quarter. Earning asset yields decreased by 11 basis points, while the average cost of funds decreased by 17 basis points. Accretion income for the quarter was $3.4 million, which was a decrease of $0.2 million from the prior quarter.

In comparison to the fourth quarter of last year, the net interest margin increased 8 basis points, with an average earnings asset increase of 6 basis points versus the average cost of funds decrease of 2 basis points. Higher rates and loan growth helped drive an increase in earnings asset yields, despite a decline in accretion income of $1.2 million. The decrease in funding costs was primarily due to a decline in wholesale funding sources, partially offset by an increase in time deposit rates.

Loan Portfolio

Total loans ended the quarter at $5.67 billion, representing an increase of $57.9 million, or 1.0% compared to the prior quarter. Loan growth was well diversified primarily in construction and land development and commercial and industrial. The largest decline was in commercial real estate, which included an increase in paydowns due to the sale of several borrowers' properties. The average rate on new origination and renewed loans in the period was approximately 7.4%.

Asset Quality

The Company's asset quality metrics continue to be strong compared to historical and industry measures. The allowance for credit losses ("ACL") increased by $1.4 million to $70.2 million with an ending ACL to total loans ratio of 1.24%. Provision expense was recorded in the amount of $3.6 million and the Company had net charge offs of $2.2 million in the period. Also, at the end of the fourth quarter, the ratio of non-performing loans to total loans was 0.53%, and the ACL to non-performing loans was 235%. The ratio of non-performing assets to total assets was 0.43% at quarter end. Non-performing loans increased by $11.6 million in the period to $29.8 million. Substandard loans increased $6.5 million in the period to $35.5 million. For the quarter, the increase in net charge offs, non-performing loans, and substandard loans were all tied to a single borrower who is invested in an organic farming operation that is in the process of dissolving and liquidating. Separately, while special mention loans increased $19.7 million in the quarter to $57.8 million, there are currently no anticipated material losses from the downgrades and the special mention balance was lower than the same period last year.

Deposits and Borrowings

Total deposits ended the quarter at $6.06 billion, which represented a decrease of $31.7 million, or 0.52% from the prior quarter. The decline was primarily in noninterest bearing deposits for normal customer cash flow needs. In addition, time deposits were lower primarily due to a decline in wholesale CD's. In comparison to the prior quarter, the average cost of funds decreased 17 basis points in the fourth quarter of 2024 to 1.83%.

Noninterest Income

Noninterest income for the fourth quarter of 2024 was $26.4 million compared to $23.0 million in the prior quarter. Wealth management revenues increased $0.5 million primarily due to a record quarter of farmland sales totaling $1.7 million more than offsetting a $0.7 million reduction to farm management income from lower commodity prices. Overall Ag Services revenue was $3.0 million in the quarter. Insurance revenues increased $0.8 million, or 13.4% on a strong finish to the year in sales performance. Other income increased $1.9 million and included a $1.3 million gain on the sale of a property that was held in other real estate owned.

In comparison to the fourth quarter of 2023, noninterest income increased $4.6 million, or 21.1%. The increase was primarily driven by growth in wealth management and insurance, and the sale of a property.

Noninterest Expenses

Noninterest expense for the fourth quarter of 2024 totaled $56.3 million compared to $53.9 million in the prior quarter. The increase was primarily in legal and professional fees due to $2.2 million in expenses tied to the retail and core system technology projects. In addition, other expenses included a $1.2 million loss on the sale of a portion of property connected to a branch location. Expenses were higher in salaries and benefits driven by higher incentive compensation tied to the strong quarter of revenue growth in wealth management and insurance.

In comparison to the fourth quarter of 2023, noninterest expenses decreased $0.7 million. The decrease was primarily driven by the nonrecurring expenses tied to the Blackhawk acquisition totaling $5.6 million in the fourth quarter of last year, while the current quarter of 2024 included $2.2 million of nonrecurring expense tied to the technology projects and a $1.2 million loss on the sale of a portion of a property.

The Company's efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter 2024 was 59.5% compared to 61.3% in the prior quarter and 58.9% for the same period last year.

Taxes

The fourth quarter of 2024 included a $0.9 million increase to taxes due to a reduction in the percentage of income apportioned to Illinois resulting in a lower effective tax rate going forward and a reduction in related deferred tax assets for the period. The reduction was primarily due to the Illinois tax law change in June of 2024 for the apportionment of investment income and the continued diversification of the business with more revenue outside of Illinois.

Capital Levels and Dividend

The Company's capital levels remained strong and comfortably above the "well capitalized" levels. Capital levels ended the period as follows:

Total capital to risk-weighted assets	15.37%
Tier 1 capital to risk-weighted assets	12.82%
Common equity tier 1 capital to risk-weighted assets	12.42%
Leverage ratio	10.33%

The Company's Board of Directors approved its regular quarterly dividend of $0.24 payable on February 28, 2025 for shareholders of record on February 13, 2025.

About First Mid: First Mid Bancshares, Inc. ("First Mid") is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., and First Mid Wealth Management Co. First Mid is a $7.5 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, Texas, and Wisconsin and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 160 years. More information about the Company is available on our website at www.firstmid.com.

Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles ("GAAP"), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include "Adjusted Net Income," "Adjusted Diluted EPS," "Efficiency Ratio," "Net Interest Margin, tax equivalent," and "Tangible Book Value per Common Share". While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.

Forward Looking Statements

This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid's pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid are identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid's loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines; and the impact of pandemics on First Mid's businesses. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid's financial results, are included in First Mid's filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.

Investor Contact:

Austin Frank

SVP, Shareholder Relations

217-258-5522

afrank@firstmid.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
	December 31,			September 30,			December 31,
	2024			2024			2023

Assets
Cash and cash equivalents	$	121,216		$	164,191		$	143,064
Investment securities		1,073,510			1,125,774			1,179,402
Loans (including loans held for sale)		5,672,462			5,614,591			5,580,565
Less allowance for credit losses		(70,182	)		(68,774	)		(68,675	)
Net loans		5,602,280			5,545,817			5,511,890
Premises and equipment, net		100,234			101,464			101,396
Goodwill and intangibles, net		261,906			265,139			264,231
Bank Owned Life Insurance		170,854			169,635			166,125
Other assets		189,734			190,469			220,686
Total assets	$	7,519,734		$	7,562,489		$	7,586,794

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	1,329,155		$	1,387,290		$	1,398,234
Interest bearing		4,727,941			4,701,544			4,725,425
Total deposits		6,057,096			6,088,834			6,123,659
Repurchase agreements with customers		204,122			204,343			213,721
Other borrowings		242,520			238,712			263,787
Junior subordinated debentures		24,280			24,224			24,058
Subordinated debt		87,472			87,373			106,755
Other liabilities		57,853			60,506			61,610
Total liabilities		6,673,343			6,703,992			6,793,590

Total stockholders' equity		846,391			858,497			793,204
Total liabilities and stockholders' equity	$	7,519,734		$	7,562,489		$	7,586,794


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

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
	2024		2023		2024			2023
Interest income:
Interest and fees on loans	$	81,288	$	78,676	$	320,446		$	262,423
Interest on investment securities		6,990		8,515		28,836			32,119
Interest on federal funds sold & other deposits		1,564		2,736		8,097			5,624
Total interest income		89,842		89,927		357,379			300,166
Interest expense:
Interest on deposits		26,144		25,900		106,919			77,294
Interest on securities sold under agreements to repurchase		1,333		1,754		6,448			6,565
Interest on other borrowings		1,917		3,073		8,674			16,789
Interest on jr. subordinated debentures		510		545		2,156			1,859
Interest on subordinated debt		988		1,193		4,454			4,196
Total interest expense		30,892		32,465		128,651			106,703
Net interest income		58,950		57,462		228,728			193,463
Provision for credit losses		3,643		552		5,635			6,104
Net interest income after provision for loan		55,307		56,910		223,093			187,359
Non-interest income:
Wealth management revenues		6,275		4,998		22,818			20,793
Insurance commissions		6,805		5,398		28,552			24,814
Service charges		3,058		3,298		12,362			10,881
Net securities gains/(losses)		0		46		(433	)		3,383
Mortgage banking revenues		1,104		954		3,957			2,282
ATM/debit card revenue		4,204		4,233		16,807			14,347
Other		4,917		2,841		12,223			10,286
Total non-interest income		26,363		21,768		96,286			86,786
Non-interest expense:
Salaries and employee benefits		31,957		29,925		124,134			104,962
Net occupancy and equipment expense		7,285		7,977		30,407			26,946
Net other real estate owned (income) expense		240		800		411			1,862
FDIC insurance		863		1,015		3,463			3,339
Amortization of intangible assets		3,314		3,560		13,556			9,127
Stationary and supplies		642		404		1,885			1,346
Legal and professional expense		5,386		2,065		12,944			7,379
ATM/debit card expense		2,043		1,332		6,384			5,322
Marketing and donations		906		679		3,418			3,005
Other		3,661		9,268		18,381			22,452
Total non-interest expense		56,297		57,025		214,983			185,740
Income before income taxes		25,373		21,653		104,396			88,405
Income taxes		6,205		3,582		25,498			19,470
Net income	$	19,168	$	18,071	$	78,898		$	68,935

Per Share Information
Basic earnings per common share	$	0.80	$	0.76	$	3.31		$	3.17
Diluted earnings per common share		0.80		0.76		3.30			3.15

Weighted average shares outstanding		23,818,806		22,220,438		23,800,523			21,086,802
Diluted weighted average shares outstanding		23,908,340		22,319,334		23,895,681			21,176,946


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

	For the Quarter Ended
	December 31,		September 30,			June 30,			March 31,			December 31,
	2024		2024			2024			2024			2023
Interest income:
Interest and fees on loans	$	81,288	$	81,775		$	79,560		$	77,823		$	78,676
Interest on investment securities		6,990		7,036			7,405			7,405			8,515
Interest on federal funds sold & other deposits		1,564		2,371			1,718			2,444			2,736
Total interest income		89,842		91,182			88,683			87,672			89,927
Interest expense:
Interest on deposits		26,144		28,341			26,338			26,096			25,900
Interest on securities sold under agreements to repurchase		1,333		1,444			1,615			2,056			1,754
Interest on other borrowings		1,917		2,195			2,248			2,314			3,073
Interest on jr. subordinated debentures		510		567			537			542			545
Interest on subordinated debt		988		1,092			1,180			1,194			1,193
Total interest expense		30,892		33,639			31,918			32,202			32,465
Net interest income		58,950		57,543			56,765			55,470			57,462
Provision for credit losses		3,643		1,266			1,083			(357	)		552
Net interest income after provision for loan		55,307		56,277			55,682			55,827			56,910
Non-interest income:
Wealth management revenues		6,275		5,816			5,405			5,322			4,998
Insurance commissions		6,805		6,003			6,531			9,213			5,398
Service charges		3,058		3,121			3,227			2,956			3,298
Net securities gains/(losses)		0		(277	)		(156	)		0			46
Mortgage banking revenues		1,104		1,109			1,038			706			954
ATM/debit card revenue		4,204		4,267			4,281			4,055			4,233
Other		4,917		2,984			2,096			2,226			2,841
Total non-interest income		26,363		23,023			22,422			24,478			21,768
Non-interest expense:
Salaries and employee benefits		31,957		31,565			30,164			30,448			29,925
Net occupancy and equipment expense		7,285		8,055			7,507			7,560			7,977
Net other real estate owned (income) expense		240		107			85			(21	)		800
FDIC insurance		863		829			902			869			1,015
Amortization of intangible assets		3,314		3,405			3,340			3,497			3,560
Stationary and supplies		642		482			370			391			404
Legal and professional expense		5,386		2,573			2,536			2,449			2,065
ATM/debit card expense		2,043		1,869			1,281			1,191			1,332
Marketing and donations		906		836			814			862			679
Other		3,661		4,212			4,392			6,116			9,268
Total non-interest expense		56,297		53,933			51,391			53,362			57,025
Income before income taxes		25,373		25,367			26,713			26,943			21,653
Income taxes		6,205		5,885			6,968			6,440			3,582
Net income	$	19,168	$	19,482		$	19,745		$	20,503		$	18,071

Per Share Information
Basic earnings per common share	$	0.80	$	0.81		$	0.83		$	0.86		$	0.76
Diluted earnings per common share		0.80		0.81			0.82			0.86			0.76

Weighted average shares outstanding		23,818,806		23,905,099			23,896,210			23,872,731			23,837,853
Diluted weighted average shares outstanding		23,908,340		24,006,647			23,998,152			23,960,335			23,921,758


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

	As of and for the Quarter Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023

Loan Portfolio
Construction and land development	$	236,093		$	190,857		$	195,389		$	186,851		$	205,077
Farm real estate loans		390,760			384,620			387,015			388,941			391,132
1-4 Family residential properties		496,597			505,342			507,517			518,641			542,469
Multifamily residential properties		332,644			338,167			334,446			312,758			319,129
Commercial real estate		2,417,585			2,440,120			2,406,955			2,396,092			2,384,704
Loans secured by real estate		3,873,679			3,859,106			3,831,322			3,803,283			3,842,511
Agricultural operating loans		239,671			233,414			213,997			213,217			196,272
Commercial and industrial loans		1,335,920			1,283,631			1,268,646			1,227,906			1,266,159
Consumer loans		53,960			63,222			70,841			79,569			91,014
All other loans		169,232			175,218			175,811			175,320			184,609
Total loans		5,672,462			5,614,591			5,560,617			5,499,295			5,580,565

Deposit Portfolio
Non-interest bearing demand deposits	$	1,329,155		$	1,387,290		$	1,393,336		$	1,448,299		$	1,398,234
Interest bearing demand deposits		1,907,733			1,834,123			1,909,993			1,974,857			1,837,296
Savings deposits		636,427			648,582			673,381			704,777			710,586
Money Market		1,196,537			1,183,594			1,127,699			1,107,177			1,129,950
Time deposits		987,244			1,035,245			1,011,370			1,007,826			1,047,593
Total deposits		6,057,096			6,088,834			6,115,779			6,242,936			6,123,659

Asset Quality
Non-performing loans	$	29,835		$	18,242		$	19,079		$	20,064		$	20,128
Non-performing assets		32,030			20,076			20,557			21,471			21,292
Net charge-offs (recoveries)		2,235			804			708			381			118
Allowance for credit losses to non-performing loans		235.23	%		377.01	%		358.05	%		338.60	%		341.19	%
Allowance for credit losses to total loans outstanding		1.24	%		1.22	%		1.23	%		1.24	%		1.23	%
Nonperforming loans to total loans		0.53	%		0.32	%		0.34	%		0.36	%		0.36	%
Nonperforming assets to total assets		0.43	%		0.27	%		0.27	%		0.28	%		0.28	%
Special Mention loans		57,848			38,151			30,767			65,693			74,050
Substandard and Doubtful loans		35,516			29,037			27,594			29,296			28,945

Common Share Data
Common shares outstanding		23,895,807			23,904,051			23,895,868			23,888,929			23,827,137
Book value per common share	$	35.42		$	35.91		$	34.05		$	33.40		$	33.29
Tangible book value per common share⁽¹⁾		24.46			24.82			23.28			22.49			22.20
Tangible book value per common share excluding other comprehensive income at period end⁽¹⁾		30.42			29.70			29.43			28.67			27.93
Market price of stock		36.82			38.91			32.88			32.68			34.66

Key Performance Ratios and Metrics
End of period earning assets	$	6,775,075		$	6,786,458		$	6,812,574		$	6,923,742		$	6,780,160
Average earning assets		6,884,303			6,857,070			6,815,932			6,884,855			6,948,309
Average rate on average earning assets (tax equivalent)		5.24	%		5.35	%		5.27	%		5.16	%		5.18	%
Average rate on cost of funds		1.83	%		2.00	%		1.91	%		1.91	%		1.85	%
Net interest margin (tax equivalent)⁽¹⁾		3.41	%		3.35	%		3.36	%		3.25	%		3.33	%
Return on average assets		1.01	%		1.03	%		1.05	%		1.07	%		0.93	%
Adjusted return on average assets⁽¹⁾		1.10	%		1.05	%		1.07	%		1.17	%		1.16	%
Return on average common equity		9.04	%		9.40	%		9.92	%		10.37	%		9.76	%
Adjusted return on average common equity⁽¹⁾		9.80	%		9.58	%		10.11	%		11.28	%		12.11	%
Efficiency ratio (tax equivalent)⁽¹⁾		59.51	%		61.33	%		59.61	%		59.09	%		58.91	%
Full-time equivalent employees		1,198			1,207			1,185			1,188			1,187


¹Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.


FIRST MID BANCSHARES, INC.
Net Interest Margin
(In thousands, unaudited)

	For the Quarter Ended December 31, 2024
	QTD Average					Average
	Balance			Interest		Rate
INTEREST EARNING ASSETS
Interest bearing deposits	$	120,744		$	1,522	5.01	%
Federal funds sold		49			-	0.00	%
Certificates of deposits investments		3,500			42	4.77	%
Investment Securities:
Taxable (total less municipals)		855,006			5,145	2.41	%
Tax-exempt (Municipals)		270,899			2,336	3.45	%
Loans (net of unearned income)		5,634,105			81,564	5.76	%

Total interest earning assets		6,884,303			90,609	5.24	%

NONEARNING ASSETS
Cash and due from banks		98,020
Premises and equipment		101,449
Other nonearning assets		590,928
Allowance for loan losses		(69,580	)

Total assets	$	7,605,120

INTEREST BEARING LIABILITIES
Demand deposits	$	3,103,831		$	16,538	2.12	%
Savings deposits		643,575			182	0.11	%
Time deposits		1,007,663			9,424	3.72	%
Total interest bearing deposits		4,755,069			26,144	2.19	%
Repurchase agreements		214,174			1,333	2.48	%
FHLB advances		213,634			1,917	3.57	%
Federal funds purchased		1			-	0.00	%
Subordinated debt		87,407			988	4.50	%
Jr. subordinated debentures		24,251			510	8.37	%
Other debt		2			-	0.00	%
Total borrowings		539,469			4,748	3.50	%
Total interest bearing liabilities		5,294,538			30,892	2.32	%

NONINTEREST BEARING LIABILITIES
Demand deposits		1,406,989		Average cost of funds		1.83	%
Other liabilities		51,029
Stockholders' equity		852,564

Total liabilities & stockholders' equity	$	7,605,120

Net Interest Earnings / Spread				$	59,717	2.92	%

Impact of Non-Interest Bearing Funds						0.49	%

Tax effected yield on interest earning assets						3.41	%


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

	As of and for the Quarter Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023

Net interest income as reported	$	58,950		$	57,543		$	56,765		$	55,470		$	57,462
Net interest income, (tax equivalent)		59,717			58,627			57,361			56,086			58,255
Average earning assets		6,884,303			6,857,070			6,815,932			6,884,855			6,948,309
Net interest margin (tax equivalent)		3.41	%		3.35	%		3.36	%		3.25	%		3.33	%


Common stockholder's equity	$	846,391		$	858,497		$	813,645		$	797,952		$	793,204
Goodwill and intangibles, net		261,906			265,139			257,377			260,699			264,231
Common shares outstanding		23,896			23,904			23,896			23,889			23,827
Tangible Book Value per common share	$	24.46		$	24.82		$	23.28		$	22.49		$	22.20
Accumulated other comprehensive loss (AOCI)		(142,383	)		(116,692	)		(146,998	)		(147,667	)		(136,427	)
Adjusted tangible book value per common share	$	30.42		$	29.70		$	29.43		$	28.67		$	27.93


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

	As of and for the Quarter Ended
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Adjusted earnings Reconciliation
Net Income - GAAP	$	19,168		$	19,482		$	19,745		$	20,503		$	18,071
Adjustments (post-tax):⁽¹⁾
Nonrecurring technology project expenses		1,710			-			-			-			-
Net (gain)/loss on securities sales		-			219			123			-			(36	)
Integration and acquisition expenses		-			137			250			1,804			4,385
Total non-recurring adjustments (non-GAAP)	$	1,710		$	356		$	373		$	1,804		$	4,348

Adjusted earnings - non-GAAP	$	20,878		$	19,838		$	20,118		$	22,307		$	22,419
Adjusted diluted earnings per share (non-GAAP)	$	0.87		$	0.83		$	0.84		$	0.93		$	0.94
Adjusted return on average assets - non-GAAP		1.10	%		1.05	%		1.07	%		1.17	%		1.16	%
Adjusted return on average common equity - non-GAAP		9.80	%		9.58	%		10.11	%		11.28	%		12.11	%

Efficiency Ratio Reconciliation
Noninterest expense - GAAP	$	56,297		$	53,933		$	51,391		$	53,362		$	57,025
Other real estate owned property income (expense)		(240	)		(107	)		(85	)		21			(800	)
Amortization of intangibles		(3,314	)		(3,405	)		(3,340	)		(3,497	)		(3,560	)
Nonrecurring severance expense		(2,164	)		-			-			-			-
Integration and acquisition expenses		-			(174	)		(316	)		(2,283	)		(5,550	)
Adjusted noninterest expense (non-GAAP)	$	50,579		$	50,247		$	47,650		$	47,603		$	47,115

Net interest income -GAAP	$	58,950		$	57,543		$	56,765		$	55,470		$	57,462
Effect of tax-exempt income⁽¹⁾		(323	)		1,084			596			616			793
Adjusted net interest income (non-GAAP)	$	58,627		$	58,627		$	57,361		$	56,086		$	58,255

Noninterest income - GAAP	$	26,363		$	23,023		$	22,422		$	24,478		$	21,768
Net (gain)/loss on securities sales		0			277			156			0			(46	)
Adjusted noninterest income (non-GAAP)	$	26,363		$	23,300		$	22,578		$	24,478		$	21,722

Adjusted total revenue (non-GAAP)	$	84,990		$	81,927		$	79,939		$	80,564		$	79,977

Efficiency ratio (non-GAAP)		59.51	%		61.33	%		59.61	%		59.09	%		58.91	%

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

First Mid Bancshares, Inc. Announces Fourth Quarter 2024 Results