First Mid(FMBH) - 2024 Q3 - Quarterly Report

Financial Performance - Net income for the nine months ended September 30, 2024, was $59.7 million, an increase from$50.9 million in the same period of 2023, representing a growth of 15.0%[179] - Diluted net income per common share increased to $2.49 for the nine months ended September 30, 2024, compared to$2.40 for the same period in 2023[179] - Total non-interest income rose to $69.9 million, a 7.5$65.0 million in the same period last year[182] - Tax equivalent net interest income increased by $33.8 million, or 24.4$172.1 million for the nine months ended September 30, 2024, compared to $138.3 million for the same period in 2023[219] Asset and Liability Management - Total assets remained stable at$7.6 billion as of September 30, 2024, unchanged from December 31, 2023[180] - The Company’s total assets as of September 30, 2024, were $7,583,515 thousand, an increase from$7,276,111 thousand in 2023[215] - Total outstanding commitments increased to $1.4 billion at September 30, 2024, up from$1.1 billion at the same time in 2023[188] - The Company reported total interest-earning assets of $6.79 billion and total interest-bearing liabilities of$5.26 billion as of September 30, 2024[285] Credit Quality - Total nonperforming loans decreased to $18.2 million at September 30, 2024, down from$21.3 million at September 30, 2023[184] - The provision for credit losses for the nine months ended September 30, 2024, was $2.0 million, significantly lower than$5.6 million for the same period in 2023[184] - The allowance for credit losses increased to $68,774 thousand as of September 30, 2024, compared to$68,241 thousand at the end of September 2023, reflecting a ratio of allowance for credit losses to loans outstanding of 1.22%[258] - The ratio of nonperforming loans to loans, before allowance for credit losses, improved to 0.33% as of September 30, 2024, down from 0.36% at the end of 2023[248] Interest Income and Margin - Net interest margin improved to 3.32% for the nine months ended September 30, 2024, up from 2.95% for the same period in 2023, driven by increased earning asset yields[181] - The year-to-date net yield on interest-earning assets was 3.26% for 2024, up from 2.90% in 2023[213] - The average rate on interest-bearing deposits increased to 2.53% in 2024 from 2.28% in 2023[215] - The net interest spread for the three months ended September 30, 2024, was 2.82%, compared to 2.61% for the same period in 2023[215] Expenses and Operational Costs - Total non-interest expense increased by 23.3% to $158.7 million, up from$128.7 million for the same period last year, primarily due to the acquisition of Blackhawk Bank[183] - Salaries and employee benefits increased by 24.2% to $31,565 million for the three months ended September 30, 2024, primarily due to the acquisition of Blackhawk Bank[231] - Total other expenses rose by 14.5$53,933 million for the three months ended September 30, 2024, compared to $47,096 million in 2023[230] Equity and Capital - As of September 30, 2024, the Company's stockholders' equity increased by$65.3 million or 8.2%, reaching $858.5 million, with net income contributing$59.7 million before dividends[286] - The Company's Tier 1 capital to risk-weighted assets ratio was 12.70% at September 30, 2024, compared to 10.19% at September 30, 2023[185] - The Company maintained compliance with regulatory capital requirements, ensuring capital adequacy as of September 30, 2024 and December 31, 2023[288] Loans and Lending Activities - As of September 30, 2024, total loans amounted to $5,614.6 million, an increase of$34.0 million or 0.6% from December 31, 2023[239] - The loan portfolio includes $2,440.1 million in commercial real estate loans, representing 43.5$233.4 million, accounting for 4.2% of outstanding loans, up from 3.5% in the previous period[239] - Loans to borrowers in the agricultural sector increased by $29.9 million to$618.4 million as of September 30, 2024, compared to $588.5 million at the end of 2023[254] Market and Economic Conditions - The company does not consider its loan regions high risk despite some economic stress in 2023 and 2024[241] - There has been no material change in the market risk faced by the Company since December 31, 2023[309] Miscellaneous - The Company is currently facing claims and lawsuits arising in the ordinary course of business, but management believes these will not materially affect its consolidated financial position, results of operations, or cash flows[308] - The Company has approximately$4.1 million remaining under its stock repurchase program, with no shares repurchased during 2024[296]