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%.

First Mid Bancshares, Inc. Announces Third Quarter 2021 Results