First Mid(US:FMBH)2025-05-09 13:52Part I - Financial Information Item 1. Financial Statements Presents First Mid Bancshares, Inc.'s unaudited condensed consolidated financial statements for Q1 2025 and 2024, with detailed notes on accounting and specific financial items Condensed Consolidated Balance Sheets Total assets increased to $7.57 billion at March 31, 2025, from $7.52 billion at December 31, 2024, driven by cash and net loan growth, with stockholders' equity rising to $870.9 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $7,572,688 | $7,519,734 | | Cash and cash equivalents | $201,470 | $121,216 | | Net loans | $5,625,163 | $5,595,666 | | Total deposits | $6,130,380 | $6,057,096 | | Total Liabilities | $6,701,739 | $6,673,343 | | Total Stockholders' Equity | $870,949 | $846,391 | Condensed Consolidated Statements of Income For the three months ended March 31, 2025, net income rose to $22.2 million from $20.5 million in the prior-year period, driven by a 7.1% increase in net interest income despite higher credit loss provisions Income Statement Summary (in thousands, except per share data) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net Interest Income | $59,409 | $55,470 | | Provision for credit losses | $1,652 | ($357) | | Total Other Income | $24,864 | $24,478 | | Total Other Expense | $54,472 | $53,362 | | Net Income | $22,171 | $20,503 | | Diluted EPS | $0.93 | $0.86 | Condensed Consolidated Statements of Comprehensive Income Comprehensive income significantly increased to $29.2 million in Q1 2025 from $9.3 million in Q1 2024, primarily due to unrealized gains on available-for-sale securities Comprehensive Income (in thousands) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net Income | $22,171 | $20,503 | | Other comprehensive income (loss), net of taxes | $7,033 | ($11,240) | | Comprehensive Income | $29,204 | $9,263 | Condensed Consolidated Statements of Changes in Stockholders' Equity Stockholders' equity grew from $846.4 million at year-end 2024 to $870.9 million by March 31, 2025, driven by net income and other comprehensive income - Key drivers for the change in stockholders' equity in Q1 2025 included net income of $22.2 million and other comprehensive income of $7.0 million9 - The company paid cash dividends of $0.24 per share, totaling $5.7 million, during the first quarter of 20259 Condensed Consolidated Statements of Cash Flows Cash and cash equivalents increased by $80.3 million to $201.5 million in Q1 2025, supported by operating, investing, and financing activities, including a net increase in deposits Cash Flow Summary (in thousands) | Metric | Three months ended March 31, 2025 | | :--- | :--- | | Net cash provided by operating activities | $47,884 | | Net cash provided by investing activities | $4,545 | | Net cash provided by financing activities | $27,825 | | Increase in cash and cash equivalents | $80,254 | | Cash and cash equivalents at end of period | $201,470 | Notes to Condensed Consolidated Financial Statements This section provides detailed disclosures for the financial statements, covering accounting basis, EPS, investment securities, loan portfolio, goodwill, borrowings, fair value, leases, derivatives, regulatory capital, and off-balance sheet commitments Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) Management discusses Q1 2025 financial condition and operations, highlighting a net income of $22.2 million, a 3.60% net interest margin, and strong capital ratios, alongside balance sheet, credit quality, capital, and liquidity analysis Q1 2025 Performance Highlights | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $22.2 million | $20.5 million | | Diluted EPS | $0.93 | $0.86 | | Return on average assets | 1.19% | 1.07% | | Net interest margin (tax equivalent) | 3.60% | 3.25% | - Total assets grew to $7.6 billion at March 31, 2025, from $7.5 billion at year-end 2024, with net loans increasing by $29.5 million130 - Credit quality remains a focus, with nonperforming loans at $26.6 million (0.47% of total loans) at the end of Q1 2025, down from $29.8 million at year-end 2024133166 Results of Consolidated Operations Q1 2025 operations showed a 7.3% increase in tax-equivalent net interest income to $60.2 million, slight non-interest income growth, and a 2.1% rise in non-interest expense, with a $1.7 million provision for credit losses - Tax equivalent net interest income increased by $4.1 million year-over-year, primarily due to a favorable impact from rate changes145 - Non-interest income was boosted by higher insurance commissions and wealth management revenues, partially offset by a decrease in ATM/debit card revenue and other income149 - Non-interest expense increased mainly due to annual salary raises and nonrecurring technology project expenses154 Analysis of Consolidated Balance Sheets The balance sheet analysis shows a slight decrease in investment securities to $1.23 billion and a 0.5% increase in loans to $5.70 billion, with nonperforming loans decreasing to 0.47% of total loans - The investment portfolio decreased by $32.4 million from year-end 2024, mainly due to sales, paydowns, and maturities155 - Total loans increased by $26.4 million (0.5%) from year-end 2024, driven by construction, multifamily, and seasonal agricultural loans157 - Nonperforming loans decreased to $26.6 million at March 31, 2025, from $29.8 million at December 31, 2024166 - The allowance for credit losses stood at 1.23% of total loans outstanding at the end of Q1 2025175 Interest Rate Sensitivity A static GAP analysis at March 31, 2025, indicates the company was liability sensitive within the one-year horizon, suggesting potential adverse effects from rising interest rates on net interest income - The static GAP analysis at March 31, 2025, indicates a liability-sensitive position within the one-year horizon, with a cumulative GAP of $432.4 million195 Capital Resources The company's capital position strengthened in Q1 2025, with stockholders' equity increasing by $24.6 million to $870.9 million, and all regulatory capital ratios remaining well above 'well-capitalized' standards - Stockholders' equity increased by 2.9% during Q1 2025, driven by net income and favorable changes in the market value of available-for-sale securities196 Regulatory Capital Ratios (Company) | Ratio | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Tier 1 capital to risk weighted assets | 13.13% | 12.82% | | Total capital to risk weighted assets | 15.59% | 15.37% | - The company has approximately $2.9 million remaining under its stock repurchase program as of March 31, 2025, with no shares repurchased during the quarter201 Liquidity The company maintains a strong liquidity position through cash flows, federal fund lines, FHLB borrowing capacity, and a revolving credit agreement, with cash and cash equivalents increasing by $80.3 million - The company has multiple sources of liquidity, including $130 million in federal fund lines and approximately $1.6 billion in additional borrowing capacity from the FHLB206 - Total contractual obligations and other commitments as of March 31, 2025, amounted to approximately $1.6 billion, with $1.15 billion due in less than one year203 Item 3. Quantitative and Qualitative Disclosures About Market Risk No material changes in market risk have occurred since December 31, 2024, with further details available in the company's 2024 Annual Report on Form 10-K - There has been no material change in the market risk faced by the Company since December 31, 2024205 Item 4. Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Company's disclosure controls and procedures are deemed effective as of the end of the reporting period207 - No material changes occurred in the Company's internal control over financial reporting during the last fiscal quarter207 Part II - Other Information Item 1. Legal Proceedings The company is involved in routine litigation, but management believes existing claims will not materially adversely affect its financial condition or results of operations - The Company is subject to claims and lawsuits in the ordinary course of business, but management does not expect them to have a material adverse effect209 Item 1A. Risk Factors No material changes have occurred to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - No material changes to the risk factors described in the Company's 2024 Annual Report on Form 10-K have occurred210 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds The company did not repurchase any equity securities in Q1 2025, with approximately $2.9 million remaining available under its stock repurchase program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased | | :--- | :--- | :--- | :--- | | Jan 2025 | 0 | $0 | $2,941,000 | | Feb 2025 | 0 | $0 | $2,941,000 | | Mar 2025 | 0 | $0 | $2,941,000 | | Total | 0 | $0 | $2,941,000 | Item 5. Other Information No directors or officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025215 Item 6. Exhibits This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - Exhibits filed with this report include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL data files217