First Mid(US:FMBH)2025-11-07 20:49Financial Performance - Net income for the nine months ended September 30, 2025, was $68.1 million, an increase of 14.1% from $59.7 million in the same period of 2024[132] - Diluted net income per common share rose to $2.84 for the nine months ended September 30, 2025, compared to $2.49 for the same period in 2024[132] - Total non-interest income increased by $1.4 million or 2.1% to $71.4 million for the nine months ended September 30, 2025[134] - Net interest income increased by $19.9 million, or 11.5%, to $191.9 million for the nine months ended September 30, 2025, compared to $172.1 million for the same period in 2024[149] - The effective tax rate decreased to 21.8% for the nine months ended September 30, 2025, down from 24.4% in the same period of 2024[157] Asset and Loan Growth - Total assets increased to $7.8 billion as of September 30, 2025, up from $7.5 billion at December 31, 2024, with net loan balances rising to $5.7 billion[132] - Average loans increased by $170.0 million, or 3.1%, compared to the same period in 2024[150] - As of September 30, 2025, total loans outstanding amounted to $5.824 billion, with $1.220 billion maturing in one year or less, $2.749 billion maturing over one to five years, and $1.855 billion maturing over five years[165] - The loan portfolio increased by $151.6 million, or 2.7%, driven by growth in construction and land development loans[162] Credit Quality and Losses - The provision for credit losses was $7.6 million for the nine months ended September 30, 2025, compared to $2.0 million for the same period in 2024[137] - Total nonperforming loans increased to $22.2 million at September 30, 2025, from $18.2 million at September 30, 2024[136] - Nonperforming loans increased to $22.2 million as of September 30, 2025, from $18.2 million in 2024[151] - The net charge-offs for the first nine months of 2025 were $4.8 million, significantly higher than $1.9 million in the same period of 2024, indicating a 152.63% increase[180] - The allowance for credit losses is based on management's estimate of probable losses, with a focus on a disciplined credit review process and economic factors affecting borrowers[173][174] Expenses and Income - Total non-interest expense rose by $7.7 million or 4.8% to $166.4 million for the nine months ended September 30, 2025, primarily due to salary increases and incentive compensation[135] - Total other income for the nine months ended September 30, 2025, was $71.366 million, a 2.1% increase from $69.923 million in 2024[152] - Salaries and employee benefits increased by $2.0 million, or 6.4%, primarily due to annual raises and increased incentive compensation accruals[159] Capital and Equity - The Company's Tier 1 capital to risk-weighted assets ratio was 13.53% at September 30, 2025, compared to 12.70% at September 30, 2024[138] - As of September 30, 2025, the Company's stockholders' equity increased by $85.8 million or 10.1%, reaching $932.2 million from $846.4 million as of December 31, 2024[199] - The Company believes it met all capital adequacy requirements as of September 30, 2025, according to regulatory standards[200] Deposits and Borrowings - The total average deposits for the nine months ended September 30, 2025, were $6,183.6 million, a slight increase of $40.4 million compared to the average balance for the year ended December 31, 2024[181] - The high month-end balance of total deposits reached $6,289.5 million for the nine months ended September 30, 2025, compared to $6,242.9 million in 2024[182] - The average interest rate on total borrowings at the end of the period was 3.09% as of September 30, 2025, down from 3.30% at the end of 2024[183] Risk Management - The Company aims to maximize its net interest margin while managing interest rate risk, monitored by its asset liability management committee (ALCO)[197] - The static GAP analysis indicated that the Company was liability sensitive through the twelve-month time horizon, suggesting potential adverse effects on net interest income from future interest rate increases[198] - The Company’s interest rate sensitivity position is monitored to maintain a balance between rate-sensitive assets and liabilities, limiting adverse effects from interest rate changes[197] Commitments and Obligations - The Company had a total of $1,702.3 million in significant contractual obligations and other commitments as of September 30, 2025[207] - The Company maintained compliance with existing covenants as of September 30, 2025, and had no balance on its revolving credit agreement of $15.0 million[184] Stock and Shareholder Programs - The Company has a maximum of 1,000,000 shares of common stock that may be issued under the Stock Incentive Plan, with 79,635 restricted stock awards granted in 2025[202] - The Employee Stock Purchase Plan allows eligible employees to purchase shares at a 15% discount, with 149,156 shares issued as of September 30, 2025[203] - The 2025 Repurchase Program authorizes the Company to repurchase up to 1.2 million shares, with approximately $45.5 million remaining capacity as of September 30, 2025[204]