MATTOON, Ill., Jan. 27, 2022 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ:FMBH) (the "Company") today announced its financial results for the quarter and full year period ended December 31, 2021.

Highlights

Net income of $16.8 million, or $0.93 diluted EPS
Adjusted net income (non-GAAP) of $17.1 million, or $0.94 diluted EPS
Strong loan growth of 2.3% for the quarter, excluding Paycheck Protection Program ("PPP") loans
Record quarter of wealth management revenues with assets under management increasing to $5.1 billion
Received Federal Reserve approval on January 26, 2022 for the pending Delta Bancshares acquisition

"We ended 2021 on a high note with strong loan growth, record wealth management revenues and solid earnings," said Joe Dively, Chairman and Chief Executive Officer. "The economic conditions in our markets are improving and our strategic emphasis on diversifying our geographic footprint is providing better opportunities for loan growth. The pipeline continues to be strong through the early part of the first quarter. The growth in our noninterest income was led by record performance in the farm management group and proves the importance of the diversification in our business units and revenue streams."

"With respect to the pending acquisition of Delta Bancshares Company ("Delta") and its subsidiary Jefferson Bank and Trust ("Jefferson"), which we announced on July 29, 2021, we received Federal Reserve approval yesterday and anticipate closing the acquisition in mid-February. We remain excited about the combination with Jefferson and its enhancement and expansion to our St. Louis metro presence. We have continued to work together with the Jefferson employees in preparing for a smooth transition and we are planning for a June bank merger and conversion," Dively concluded.

Net Interest Income

Net interest income for the fourth quarter of 2021 decreased by $2.8 million, or 6.0% compared to the third quarter due to declines of $3.4 million and $0.9 million in PPP fee and accretion income, respectively. Excluding these, net interest income increased $1.5 million on a combination of loan growth, higher securities earnings and lower interest expense. For the current quarter, PPP fee income was $1.7 million and accretion income was $0.7 million. As of December 31, 2021, the Company had $0.3 million of deferred fee income on PPP loans remaining.

In comparison to the fourth quarter of 2020, net interest income increased $9.3 million, or 27.9%. The increase was primarily the result of the acquisition of LINCO Bancshares, Inc. and its subsidiary Providence Bank ("Providence") in the first quarter of 2021, higher income from PPP, and the active management to lower funding costs.

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.11% for the fourth quarter of 2021, which was a decrease of 27 basis points compared to the prior quarter with the average earning asset yield down 30 basis points, partially offset by 3 basis points of lower funding costs. Excluding PPP fee income and accretion income, the net interest margin increased by 5 basis points in the quarter.

In comparison to the fourth quarter of last year, the net interest margin declined 6 basis points with earning asset yields down by 21 basis points and the average cost of funds lower by 15 basis points. Excluding PPP fee income and accretion income, the net interest margin increased by 10 basis points compared to the fourth quarter of last year.

Loan Portfolio

Total loans ended the quarter at $4.0 billion, representing an increase of $47.8 million compared to the prior quarter. Excluding the forgiveness of $43.3 million in PPP loans during the quarter, loans increased $91.1 million, or 2.3%. The Company had $16.0 million in PPP loans remaining at the end of the quarter. Increases in loans were primarily in commercial real estate and agricultural operating lines. Overall loan growth in the quarter was dispersed by market and in industry, and the pipeline remains healthy for the first quarter of 2022.

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 0.55%, and the allowance for credit losses ("ACL") to non-performing loans was 248%. Nonperforming loans and nonperforming assets decreased in the quarter. The ratio of nonperforming assets to total assets was 0.45% at quarter end. Net charge-offs were $1.8 million during the quarter. Special mention loans decreased $10.0 million to $66.2 million and substandard loans decreased $7.2 million to $43.9 million.

Provision expense for the quarter was $2.5 million compared to $0.6 million in the same quarter last year. As of December 31, 2021, the ACL, excluding $16.0 million of PPP loans, was 1.37% of total loans.

Deposits

Total deposits ended the quarter at $4.96 billion, which represented a decrease of $32.1 million from the prior quarter. The decline was primarily in time deposits where the Company continues to let non-strategic CD's mature without replacement. In addition, the Company had $26.2 million of FHLB borrowings mature and were not replaced in the quarter. The Company's average rate on cost of funds was 0.26% for the quarter compared to 0.29% in the prior quarter and 0.41% in the fourth quarter of 2020.

Noninterest Income

Noninterest income for the fourth quarter of 2021 was $18.1 million compared to $16.4 million in the third quarter of 2021. The increase was primarily due to a record quarter of wealth management revenues led by the farm management group with higher commodity prices and farmland sales. The increase was partially offset by lower mortgage banking revenues.

In comparison to the fourth quarter of last year, noninterest income increased $2.6 million, or 16.6%. Combined, insurance and wealth management business lines increased 19.5% over the same period last year, led by record wealth management revenues and partially due to the previously announced acquisitions within the brokerage and insurance lines of business. The other fee income services increased 12.8% compared to the fourth quarter of last year, partially due to the addition of Providence.

Noninterest Expenses

Noninterest expense for the fourth quarter totaled $36.4 million compared to $36.3 million in the third quarter. The current quarter included $0.3 million of acquisition and integration related costs. The prior quarter included $0.4 million in acquisition and integration related costs and $1.3 million in branch optimization costs.

In comparison to the fourth quarter of 2020, noninterest expenses increased $6.1 million. The increase was primarily due to the addition of Providence, and growth in both the insurance and wealth management businesses.

The Company's efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter 2021 was 55.8% compared to 52.7% in the prior quarter and 58.3% 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	15.79%
Tier 1 capital to risk-weighted assets	12.51%
Common equity tier 1 capital to risk-weighted assets	12.06%
Leverage ratio	9.05%

The Company's Board of Directors approved its next quarterly dividend in the amount of $0.22 payable on March 1, 2022 for shareholders of record on February 10, 2022.

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.

Investor Contact:

Aaron Holt

VP, Shareholder Relations

217-258-0463

aholt@firstmid.com

Matt Smith

Chief Financial Officer

217-258-1528

msmith@firstmid.com


FIRST MID BANCSHARES, INC.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
	As of
	As of
	December 31,			September 30,			December 31,
		2021			2021			2020

Assets
Cash and cash equivalents	$	168,602		$	345,206		$	417,281
Investment securities		1,431,299			1,357,035			887,169
Loans (including loans held for sale)		3,995,523			3,947,769			3,138,419
Less allowance for credit losses		(54,655	)		(53,983	)		(41,910	)
Net loans		3,940,868			3,893,786			3,096,509
Premises and equipment, net		81,484			81,823			58,206
Goodwill and intangibles, net		141,376			142,656			128,120
Bank owned life insurance		132,375			131,547			68,955
Other assets		90,578			91,306			70,108
Total assets	$	5,986,582		$	6,043,359		$	4,726,348

Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	1,246,673		$	1,242,950		$	936,926
Interest bearing		3,709,813			3,745,612			2,755,858
Total deposits		4,956,486			4,988,562			3,692,784
Repurchase agreement with customers		146,268			149,891			206,937
Other borrowings		86,446			112,641			93,969
Junior subordinated debentures		19,195			19,153			19,027
Subordinated debt		94,400			94,363			94,253
Other liabilities		49,893			51,524			51,150
Total liabilities		5,352,688			5,416,134			4,158,120

Total stockholders' equity		633,894			627,225			568,228
Total liabilities and stockholders' equity	$	5,986,582		$	6,043,359		$	4,726,348


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,
		2021		2020			2021		2020
Interest income:
Interest and fees on loans	$	39,711	$	33,254		$	159,684	$	126,814
Interest on investment securities		6,500		4,226			22,916		16,966
Interest on federal funds sold & other deposits		88		90			413		361
Total interest income		46,299		37,570			183,013		144,141
Interest expense:
Interest on deposits		2,057		2,617			9,037		12,751
Interest on securities sold under agreements to repurchase		52		68			231		488
Interest on other borrowings		336		371			1,514		1,877
Interest on jr. subordinated debentures		125		143			541		682
Interest on subordinated debt		985		931			3,939		931
Total interest expense		3,555		4,130			15,262		16,729
Net interest income		42,744		33,440			167,751		127,412
Provision for loan losses		2,472		603			15,151		16,103
Net interest income after provision for loan		40,272		32,837			152,600		111,309
Non-interest income:
Wealth management revenues		6,261		5,232			20,407		16,153
Insurance commissions		4,150		3,477			18,927		17,477
Service charges		2,067		1,527			6,808		5,862
Securities gains, net		36		193			124		1,106
Mortgage banking revenues		890		1,870			4,718		5,075
ATM/debit card revenue		3,074		2,369			11,974		8,962
Other		1,646		879			6,809		4,885
Total non-interest income		18,124		15,547			69,767		59,520
Non-interest expense:
Salaries and employee benefits		20,424		19,151			89,660		66,452
Net occupancy and equipment expense		5,712		3,962			21,546		16,708
Net other real estate owned (income) expense		315		(20	)		3,866		42
FDIC insurance		406		458			1,604		1,309
Amortization of intangible assets		1,462		1,200			5,391		5,062
Stationary and supplies		311		275			1,161		1,080
Legal and professional expense		1,811		1,220			6,730		5,427
Marketing and donations		1,915		434			3,603		1,616
Other		4,038		3,651			22,018		13,391
Total non-interest expense		36,394		30,331			155,579		111,087
Income before income taxes		22,002		18,053			66,788		59,742
Income taxes		5,168		4,484			15,298		14,472
Net income	$	16,834	$	13,569		$	51,490	$	45,270

Per Share Information
Basic earnings per common share	$	0.93	$	0.81		$	2.88	$	2.71
Diluted earnings per common share		0.93		0.81			2.87		2.70

Weighted average shares outstanding		18,086,949		16,735,926			17,886,998		16,716,880
Diluted weighted average shares outstanding		18,135,380		16,779,129			17,939,007		16,762,856

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,
		2021		2021		2021			2021		2020
Interest income:
Interest and fees on loans	$	39,711	$	43,292	$	40,795		$	35,886	$	33,254
Interest on investment securities		6,500		5,835		5,739			4,842		4,226
Interest on federal funds sold & other deposits		88		136		101			88		90
Total interest income		46,299		49,263		46,635			40,816		37,570
Interest expense:
Interest on deposits		2,057		2,234		2,262			2,484		2,617
Interest on securities sold under agreements to repurchase		52		52		57			70		68
Interest on other borrowings		336		359		445			374		371
Interest on jr. subordinated debentures		125		137		139			140		143
Interest on subordinated debt		985		985		985			984		931
Total interest expense		3,555		3,767		3,888			4,052		4,130
Net interest income		42,744		45,496		42,747			36,764		33,440
Provision for loan losses		2,472		1,103		(560	)		12,136		603
Net interest income after provision for loan		40,272		44,393		43,307			24,628		32,837
Non-interest income:
Wealth management revenues		6,261		4,204		5,016			4,926		5,232
Insurance commissions		4,150		3,932		4,988			5,857		3,477
Service charges		2,067		1,838		1,539			1,364		1,527
Securities gains, net		36		11		73			4		193
Mortgage banking revenues		890		1,477		1,691			1,409		1,870
ATM/debit card revenue		3,074		3,060		3,141			2,699		2,369
Other		1,646		1,837		1,836			1,490		879
Total non-interest income		18,124		16,359		18,284			17,749		15,547
Non-interest expense:
Salaries and employee benefits		20,424		21,092		24,908			23,487		19,151
Net occupancy and equipment expense		5,712		5,382		5,482			4,970		3,962
Net other real estate owned (income) expense		315		1,507		1,966			78		(20	)
FDIC insurance		406		268		478			452		458
Amortization of intangible assets		1,462		1,414		1,295			1,220		1,200
Stationary and supplies		311		299		235			316		275
Legal and professional expense		1,811		1,878		1,639			1,402		1,220
Marketing and donations		1,915		679		507			502		434
Other		4,038		3,802		9,503			5,173		3,651
Total non-interest expense		36,394		36,321		46,013			37,600		30,331
Income before income taxes		22,002		24,431		15,578			4,777		18,053
Income taxes		5,168		6,105		3,357			668		4,484
Net income	$	16,834	$	18,326	$	12,221		$	4,109	$	13,569

Per Share Information
Basic earnings per common share	$	0.93	$	1.01	$	0.68		$	0.24	$	0.81
Diluted earnings per common share		0.93		1.01		0.68			0.24		0.81

Weighted average shares outstanding		18,086,949		18,083,126		18,067,190			17,299,927		16,735,926
Diluted weighted average shares outstanding		18,135,380		18,136,146		18,120,210			17,352,947		16,779,129

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,
		2021			2021			2021			2021			2020

Loan Portfolio
Construction and land development	$	145,118		$	180,061		$	141,568		$	165,376		$	122,479
Farm real estate loans		279,272			278,788			277,362			269,652			254,341
1-4 Family residential properties		400,313			412,565			394,902			412,470			325,762
Multifamily residential properties		298,942			306,911			274,910			297,984			189,632
Commercial real estate		1,666,198			1,583,255			1,480,198			1,402,885			1,174,300
Loans secured by real estate		2,789,843			2,761,580			2,568,940			2,548,367			2,066,514
Agricultural operating loans		151,484			126,534			123,101			121,070			137,352
Commercial and industrial loans		832,008			835,860			864,554			1,017,400			738,313
Consumer loans		78,442			80,064			84,541			91,705			78,002
All other loans		143,746			143,731			155,168			164,557			118,238
Total loans		3,995,523			3,947,769			3,796,304			3,943,099			3,138,419

Deposit Portfolio
Non-interest bearing demand deposits	$	1,246,673		$	1,242,950		$	1,157,009		$	1,185,181		$	936,926
Interest bearing demand deposits		1,452,765			1,416,361			1,418,717			1,268,882			1,031,183
Savings deposits		626,523			612,404			598,232			668,098			499,427
Money Market		1,068,473			1,075,852			842,771			803,946			748,179
Time deposits		562,052			640,995			722,593			811,586			477,069
Total deposits		4,956,486			4,988,562			4,739,322			4,737,693			3,692,784

Asset Quality
Non-performing loans	$	22,036		$	27,723		$	30,410		$	31,984		$	28,123
Non-performing assets		27,055			33,359			37,648			45,323			30,616
Net charge-offs		1,800			1,717			261			702			608
Allowance for credit losses to non-performing loans		248.03	%		194.72	%		179.54	%		173.27	%		149.02	%
Allowance for credit losses to total loans outstanding	1.37%¹			1.39%¹			1.50%¹			1.50%¹			1.41%¹
Nonperforming loans to total loans		0.55	%		0.70	%		0.80	%		0.81	%		0.90	%
Nonperforming assets to total assets		0.45	%		0.55	%		0.65	%		0.78	%		0.65	%

Common Share Data
Common shares outstanding		18,080,303			18,083,126			18,078,474			18,042,256			16,741,208
Book value per common share	$	35.06		$	34.69		$	34.08		$	33.36		$	33.94
Tangible book value per common share ⁽²⁾		27.24			26.80			26.33			25.68			26.29
Market price of stock		42.79			41.06			40.51			43.93			33.66

Key Performance Ratios and Metrics
End of period earning assets	$	5,504,517		$	5,542,199		$	5,269,882		$	5,374,848		$	4,367,717
Average earning assets		5,539,819			5,396,239			5,380,411			4,769,975			4,238,388
Average rate on average earning assets (tax equivalent)		3.37	%		3.67	%		3.52	%		3.52	%		3.58	%
Average rate on cost of funds		0.26	%		0.29	%		0.30	%		0.36	%		0.41	%
Net interest margin (tax equivalent) ⁽²⁾		3.11	%		3.38	%		3.22	%		3.16	%		3.17	%
Return on average assets		1.12	%		1.25	%		0.84	%		0.32	%		1.18	%
Return on average common equity		10.74	%		11.67	%		8.00	%		2.78	%		9.66	%
Efficiency ratio (tax equivalent) ⁽²⁾		55.75	%		52.73	%		59.91	%		61.20	%		58.27	%
Full-time equivalent employees		965			960			960			983			824


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 December 31, 2021
	QTD Average					Average
	Balance			Interest		Rate
INTEREST EARNING ASSETS
Interest bearing deposits	$	177,018		$	74	0.17	%
Federal funds sold		1,355			-	0.00	%
Certificates of deposits investments		2,591			14	2.14	%
Investment Securities:
Taxable (total less municipals)		1,061,070			4,342	1.64	%
Tax-exempt (Municipals)		366,367			2,732	2.98	%
Loans (net of unearned income)		3,931,418			39,885	4.02	%

Total interest earning assets		5,539,819			47,047	3.37	%

NONEARNING ASSETS
Cash and due from banks		106,944
Premises and equipment		81,650
Other nonearning assets		349,884
Allowance for loan losses		(54,874	)

Total assets	$	6,023,423

INTEREST BEARING LIABILITIES
Demand deposits	$	2,474,758		$	1,168	0.19	%
Savings deposits		618,900			117	0.08	%
Time deposits		598,414			772	0.51	%
Total interest bearing deposits		3,692,072			2,057	0.22	%
Repurchase agreements		159,268			52	0.13	%
FHLB advances		102,590			336	1.30	%
Subordinated debt		94,376			985	4.14	%
Jr. subordinated debentures		19,168			125	2.59	%
Total borrowings		375,402			1,498	1.58	%
Total interest bearing liabilities		4,067,474			3,555	0.35	%

NONINTEREST BEARING LIABILITIES
Demand deposits		1,278,866		Average cost of funds		0.26	%
Other liabilities		50,305
Stockholders' equity		626,778

Total liabilities & stockholders' equity	$	6,023,423

Net Interest Earnings / Spread				$	43,492	3.02	%

Impact of Non-Interest Bearing Funds						0.09	%

Tax effected yield on interest earning assets						3.11	%

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,
		2021			2021			2021			2021			2020

Net interest income as reported	$	42,744		$	45,496		$	42,747		$	36,764		$	33,440
Net interest income, (tax equivalent)		43,492			46,165			43,359			37,359			34,040
Average earning assets		5,539,819			5,396,239			5,380,411			4,769,975			4,238,388
Net interest margin (tax equivalent)		3.11	%		3.38	%		3.22	%		3.16	%		3.17	%


Common stockholder's equity	$	633,894		$	627,225		$	616,066		$	601,884		$	568,228
Goodwill and intangibles, net		141,376			142,656			139,995			138,606			128,120
Common shares outstanding		18,080			18,083			18,078			18,042			16,741
Tangible Book Value per common share	$	27.24		$	26.80		$	26.33		$	25.68		$	26.29

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,
		2021			2021			2021			2021			2020
Adjusted earnings Reconciliation
Net Income - GAAP	$	16,834		$	18,326		$	12,221		$	4,109		$	13,569
Adjustments (post-tax): ⁽¹⁾
Acquisition ACL on non-PCD assets in provision expense		-			-			-			9,072			-
Branch optimization costs		-			999			960			-			-
Integration and acquisition expenses		225			348			4,634			2,036			292
Total non-recurring adjustments (non-GAAP)	$	225		$	1,347		$	5,595		$	11,108		$	292

Adjusted earnings - non-GAAP	$	17,059		$	19,673		$	17,816		$	15,217		$	13,861
Adjusted diluted earnings per share (non-GAAP)	$	0.94		$	1.08		$	0.98		$	0.88		$	0.83

Efficiency Ratio Reconciliation
Noninterest expense - GAAP	$	36,394		$	36,321		$	46,013		$	37,600		$	30,331
Other real estate owned property income (expense)		(315	)		(242	)		(751	)		(78	)		20
Amortization of intangibles		(1,462	)		(1,414	)		(1,295	)		(1,220	)		(1,200	)
Branch optimization costs		-			(1,265	)		(1,215	)		-			-
integration and acquisition expenses		(285	)		(440	)		(5,866	)		(2,578	)		(369	)
Adjusted noninterest expense (non-GAAP)	$	34,332		$	32,960		$	36,886		$	33,724		$	28,782

Net interest income -GAAP	$	42,744		$	45,496		$	42,747		$	36,764		$	33,440
Effect of tax-exempt income ⁽¹⁾		748			669			612			595			601
Adjusted net interest income (non-GAAP)	$	43,492		$	46,165		$	43,359		$	37,359		$	34,041

Noninterest income - GAAP	$	18,124		$	16,359		$	18,284		$	17,749		$	15,547
Gain on sales of investment securities, net		(36	)		(11	)		(73	)		(4	)		(193	)
Adjusted noninterest income (non-GAAP)	$	18,088		$	16,348		$	18,211		$	17,745		$	15,354

Adjusted total revenue (non-GAAP)	$	61,580		$	62,513		$	61,570		$	55,104		$	49,395

Efficiency ratio (non-GAAP)		55.75	%		52.73	%		59.91	%		61.20	%		58.27	%

(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 and Full Year 2021 Results