First Mid Bancshares, Inc. Announces Fourth Quarter 2024 Results

Core Viewpoint - First Mid Bancshares, Inc. reported solid financial results for the fourth quarter of 2024, driven by revenue growth, effective interest expense management, and strategic technology investments, despite facing higher provision expenses [2][9]. Financial Performance - Net income for the fourth quarter was $19.2 million, or $0.80 diluted EPS, with adjusted net income of $20.9 million, or $0.87 diluted EPS [9]. - Noninterest income increased to $26.4 million, a 21.1% rise compared to the same quarter last year, primarily due to growth in wealth management and insurance [12][13]. - Noninterest expenses totaled $56.3 million, up from $53.9 million in the prior quarter, mainly due to legal and professional fees related to technology projects [14]. Net Interest Income and Margin - Net interest income rose by $1.4 million, or 2.4%, compared to the third quarter of 2024, with a net interest margin of 3.41%, an increase of 6 basis points from the previous quarter [3][5]. - Compared to the fourth quarter of 2023, net interest income increased by $1.5 million, or 2.6%, with interest income on loans rising by $2.6 million [4][9]. Loan Portfolio - Total loans reached $5.67 billion, reflecting a $57.9 million increase, with significant growth in construction, land development, and commercial and industrial loans [7]. - The average rate on new origination and renewed loans was approximately 7.4% [7]. Asset Quality - The allowance for credit losses increased by $1.4 million to $70.2 million, with a ratio of allowance to total loans at 1.24% [8]. - Non-performing loans rose to $29.8 million, with a non-performing loans to total loans ratio of 0.53% [10][8]. Deposits and Borrowings - Total deposits decreased by $31.7 million to $6.06 billion, primarily due to a decline in noninterest-bearing deposits [11]. - The average cost of funds decreased by 17 basis points to 1.83% [11]. Capital Levels and Dividend - The company's capital levels remained strong, with total capital to risk-weighted assets at 15.37% [18]. - The Board of Directors declared a regular quarterly dividend of $0.24 per share, payable on February 28, 2025 [19].