First Mid(US:FMBH)2025-01-23 13:00Net Interest Income and Margin - Net interest income for Q4 2024 increased by $1.4 million (2.4%) compared to Q3 2024, driven by a $2.7 million decrease in interest expense due to lower interest rates and reduced wholesale funding[3] - Net interest margin increased by 6 basis points to 3.41% in Q4 2024, with earning asset yields decreasing by 11 basis points and the average cost of funds decreasing by 17 basis points[5] - Net interest income for the quarter ended December 31, 2024, was $58,950 thousand, compared to $57,462 thousand in the same period last year[28] - Net interest margin (tax equivalent) improved to 3.41% in Q4 2024 from 3.35% in Q3 2024[34] - Net interest income for Q4 2024 was $58.95 million, up from $57.54 million in Q3 2024 and $57.46 million in Q4 2023[38] - Net interest margin (tax equivalent) improved to 3.41% in Q4 2024 from 3.35% in Q3 2024 and 3.33% in Q4 2023[38] Loan Performance - Total loans increased by $57.9 million (1.0%) to $5.67 billion in Q4 2024, with growth primarily in construction and land development and commercial and industrial loans[7] - Total loans increased to $5,672,462 in Q4 2024, up from $5,614,591 in Q3 2024[33] - Non-performing loans rose to $29,835 in Q4 2024, compared to $18,242 in Q3 2024[33] - Nonperforming loans to total loans ratio increased to 0.53% in Q4 2024 from 0.32% in Q3 2024[34] - Loans (net of unearned income) generated $81,564 in interest income at a rate of 5.76% in Q4 2024[36] Noninterest Income - Noninterest income increased by $4.6 million (21.1%) in Q4 2024 compared to Q4 2023, driven by growth in wealth management and insurance revenues[12] - Wealth management and insurance combined revenues increased by 26% in Q4 2024 compared to Q4 2023, with a record quarter of farmland sales contributing to the growth[2] - Non-interest income for the quarter ended December 31, 2024, increased to $26,363 thousand from $21,768 thousand in the same period last year[28] - Wealth management revenues for the quarter ended December 31, 2024, increased to $6,275 thousand from $4,998 thousand in the same period last year[28] - Insurance commissions for the quarter ended December 31, 2024, rose to $6,805 thousand from $5,398 thousand in the same period last year[28] Deposit Trends - Total deposits decreased by $31.7 million (0.52%) to $6.06 billion in Q4 2024, primarily due to a decline in noninterest bearing deposits and wholesale CDs[10] - Total deposits decreased to $6,057,096 in Q4 2024 from $6,088,834 in Q3 2024[33] - Total interest bearing deposits cost increased to 2.19% in Q4 2024 from 2.12% in Q3 2024[36] Expenses and Efficiency - Noninterest expenses increased by $2.4 million in Q4 2024 compared to Q3 2024, primarily due to $2.2 million in expenses tied to retail and core system technology projects[13] - The company's efficiency ratio improved to 59.5% in Q4 2024 from 61.3% in Q3 2024, reflecting better operating efficiency[15] - Efficiency ratio (tax equivalent) improved to 59.51% in Q4 2024 from 61.33% in Q3 2024[34] - Adjusted noninterest expense (non-GAAP) for Q4 2024 was $50.58 million, slightly higher than $50.25 million in Q3 2024 and $47.12 million in Q4 2023[41] - Efficiency ratio (non-GAAP) improved to 59.51% in Q4 2024 from 61.33% in Q3 2024 and 58.91% in Q4 2023[41] Credit Losses and Allowances - The allowance for credit losses increased by $1.4 million to $70.2 million in Q4 2024, with an ACL to total loans ratio of 1.24%[8] - Provision for credit losses for the quarter ended December 31, 2024, was $3,643 thousand, significantly higher than $552 thousand in the same period last year[28] Capital and Asset Ratios - The company's capital levels remained strong, with total capital to risk-weighted assets at 15.37% and a leverage ratio of 10.33% at the end of Q4 2024[17] - Return on average assets stood at 1.01% in Q4 2024, slightly down from 1.03% in Q3 2024[34] - Adjusted return on average assets (non-GAAP) was 1.10% in Q4 2024, up from 1.05% in Q3 2024 but down from 1.16% in Q4 2023[40] Earnings and Share Performance - Net income for the quarter ended December 31, 2024, was $19,168 thousand, up from $18,071 thousand in the same period last year[28] - Basic earnings per common share for the quarter ended December 31, 2024, were $0.80, compared to $0.76 in the same period last year[30] - Diluted earnings per common share for the quarter ended December 31, 2024, were $0.80, compared to $0.76 in the same period last year[31] - Adjusted earnings (non-GAAP) for Q4 2024 were $20.88 million, up from $19.84 million in Q3 2024 and $22.42 million in Q4 2023[40] - Adjusted diluted earnings per share (non-GAAP) for Q4 2024 was $0.87, compared to $0.83 in Q3 2024 and $0.94 in Q4 2023[40] Total Revenue and Adjusted Metrics - Adjusted total revenue (non-GAAP) for Q4 2024 was $84.99 million, up from $81.93 million in Q3 2024 and $79.98 million in Q4 2023[41] - Total interest income for the quarter ended December 31, 2024, was $89,842 thousand, slightly down from $89,927 thousand in the same period last year[28] - Total interest expense for the quarter ended December 31, 2024, was $30,892 thousand, down from $32,465 thousand in the same period last year[28] - Average earning assets were $6,884,303 in Q4 2024, up from $6,857,070 in Q3 2024[34] - Average earning assets increased to $6.88 billion in Q4 2024, compared to $6.86 billion in Q3 2024 and $6.95 billion in Q4 2023[38]