FMBH First Mid Bancshares Inc

First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended September 30, 2024.

Highlights

• Net income of $19.5 million, or $0.81 diluted EPS
• Adjusted net income (non-GAAP) of $19.8 million, or $0.83 diluted EPS
• Loan growth of 1% helped drive second consecutive quarter of net interest income expansion
• 16.6% year-over-year growth for wealth management and insurance combined
• Tangible book value per share increased 6.6% in the quarter
• Board of Directors declares regular quarterly dividend of $0.24 per share

“We are pleased to deliver another solid and consistent quarter of financial results,” said Joe Dively, Chairman and Chief Executive Officer. “Healthy growth in loans, core deposits, and noninterest income, along with the sustainable strength in our asset quality, helped fuel our operating results for the period. We strengthened our balance sheet with a reduction in borrowings and subordinated debt while increasing tangible book value per share by nearly 7% in the quarter and 26% from last September. We continue to advance on our strategic initiatives to deliver exceptional value to our customers, communities, and shareholders,” Dively concluded.

Net Interest Income

Net interest income for the third quarter of 2024 increased by $0.8 million, or 1.4% compared to the second quarter of 2024. Interest income increased by $2.5 million primarily driven by loan growth and repricing of maturing loans, as well as a remix of lower yielding securities into cash. Interest expense increased by $1.7 million primarily in higher rates on money market accounts and repricing of CD’s. The increase was primarily early in the quarter and stabilized in the second half of the period. In addition, the Company paid off $55.0 million of brokered CD’s that matured at the end of September and carried an average rate of 5.3%.

In comparison to the third quarter of 2023, net interest income increased $7.1 million, or 14.1%. Interest income increased by $10.7 million and interest expense increased $3.6 million. The increases were partially driven by the addition of Blackhawk, which closed in the middle of the third quarter last year. In addition, higher rates on new loan originations and refinancing have outpaced higher interest costs. 

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.35% for the third quarter of 2024, which was a decline of one basis point compared to the prior quarter. Earning asset yields increased by eight basis points, while the average cost of funds increased by nine basis points. Accretion income for the quarter was $3.6 million, which was a decrease of $0.1 million from the prior quarter. 

In comparison to the third quarter of last year, the net interest margin increased 29 basis points, with an average earnings asset increase of 46 basis points versus the average cost of funds increase of 17 basis points. The increases were due to higher rates on new and renewed loans and deposits.

Loan Portfolio

Total loans ended the quarter at $5.62 billion, representing an increase of $54.0 million, or 1.0% compared to the prior quarter. Loan growth was well diversified primarily between commercial real estate, agricultural operating, and commercial and industrial. The largest decline was in consumer loans.

Asset Quality

The Company’s asset quality metrics were solid again in the third quarter reflecting the strength of the credit culture. The allowance for credit losses (“ACL”) increased by $0.5 million to $68.8 million with an ending ACL to total loans ratio of 1.22%. Provision expense was recorded in the amount of $1.3 million and the Company had net charge offs of $0.8 million in the period. Also, at the end of the third quarter, the ratio of non-performing loans to total loans was 0.32%, and the ACL to non-performing loans was 377%. The ratio of non-performing assets to total assets was 0.27% at quarter end. Non-performing loans decreased by $0.8 million in the period to $18.2 million. Special mention loans increased $7.4 million in the quarter to $38.2 million. Substandard loans increased $1.4 million in the period to $29.0 million.

Deposits and Borrowings

Total deposits ended the quarter at $6.09 billion, which represented a decrease of $26.9 million, or 0.04% from the prior quarter. The decrease included $55.0 million of brokered CD’s that had an average rate of 5.30% and matured at the end of the quarter. Excluding these brokered CD’s, deposits increased in the period primarily with higher CD’s more than offsetting a decline in interest bearing demand deposits. In addition, the Company reduced its FHLB advances by $25.0 million in the quarter. In comparison to the prior quarter, the average cost of funds increased in the third quarter of 2024 to 2.00%.

During the quarter, the Company repurchased and cancelled $16.0 million of its outstanding 3.95% fixed-to-floating rate subordinated notes due 2030 (“Notes”). The Notes were purchased at a discount in the open market and generated a gain, net of the discount and fees, of $0.4 million.

Noninterest Income

Noninterest income for the third quarter of 2024 was $23.0 million compared to $22.4 million in the prior quarter. Wealth management revenues increased $0.4 million primarily on higher brokerage and trust fees and ended the period with $6.4 billion in assets under management. Ag services revenue totaled $1.8 million in the quarter most of which was farm management income versus land sales. Insurance revenues declined $0.5 million compared to the prior quarter due to regular seasonality in the business. Other income increased $0.9 million in the period and included a net gain on the repurchase of a portion of the Company’s subordinated Notes.

In comparison to the third quarter of 2023, noninterest income increased $3.6 million when excluding the impacts from securities gains and losses. The increase was primarily driven by the addition of Blackhawk and growth in insurance revenues.

Noninterest Expenses

Noninterest expense for the third quarter of 2024 totaled $53.9 million compared to $51.4 million in the prior quarter. The increase was partially driven by the acquisition of Mid Rivers Insurance Group, which closed on July 9th. In addition, expenses were higher in salaries and benefits driven by higher incentive compensation and medical insurance expenses. Debit card expense increased $0.6 million due to higher usage and the annual service provider incentive credit in the second quarter. Net occupancy and equipment increased by $0.5 million on higher software license costs. The current quarter included $0.2 million in acquisition and integration costs.

In comparison to the third quarter of 2023, noninterest expenses increased $6.8 million. The increase was primarily driven by the addition of Blackhawk and organic growth, including the impacts from higher inflation, partially offset with lower acquisition and integration costs.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the third quarter 2024 was 61.3% compared to 59.6% in the prior quarter and 58.6% for the same period last year.

Capital Levels and Dividend

The Company’s capital levels remained strong and comfortably above the “well capitalized” levels. Capital levels ended the period as follows:

Total capital to risk-weighted assets	15.24%
Tier 1 capital to risk-weighted assets	12.70%
Common equity tier 1 capital to risk-weighted assets	12.29%
Leverage ratio	10.14%

The Company’s Board of Directors approved its regular quarterly dividend of $0.24 payable on November 29, 2024 for shareholders of record on November 14, 2024.

About First Mid: First Mid Bancshares, Inc. (“First Mid”) is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., and First Mid Wealth Management Co. First Mid is a $7.6 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, Texas, and Wisconsin and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 159 years. More information about the Company is available on our website at www.firstmid.com.

Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles (“GAAP”), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include “Adjusted Net Income,” “Adjusted Diluted EPS,” “Efficiency Ratio,” “Net Interest Margin, tax equivalent,” and “Tangible Book Value per Common Share”. While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.

Forward Looking Statements This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid are identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid’s loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines; and the impact of pandemics on First Mid’s businesses. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid’s financial results, are included in First Mid’s filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.

Investor Contact: Austin FrankSVP, Shareholder Relations217-258-5522 afrank@firstmid.com

Matt SmithChief Financial Officer217-258-1528msmith@firstmid.com

			FIRST MID BANCSHARES, INC.
			Condensed Consolidated Balance Sheets
			(In thousands, unaudited)
			As of
			September 30,				December 31,				September 30,
				2024				2023				2023
Assets
Cash and cash equivalents			$	164,191			$	143,064			$	383,237
Investment securities				1,125,774				1,179,402				1,226,746
Loans (including loans held for sale)				5,614,591				5,580,565				5,540,065
Less allowance for credit losses				(68,774	)			(68,675	)			(68,241	)
Net loans				5,545,817				5,511,890				5,471,824
Premises and equipment, net				101,464				101,396				102,004
Goodwill and intangibles, net				265,139				264,231				267,793
Bank Owned Life Insurance				169,635				166,125				165,022
Other assets				190,469				220,686				238,668
Total assets			$	7,562,489			$	7,586,794			$	7,855,294
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing			$	1,387,290			$	1,398,234			$	1,389,022
Interest bearing				4,701,544				4,725,425				4,957,302
Total deposits				6,088,834				6,123,659				6,346,324
Repurchase agreements with customers				204,343				213,721				214,978
Other borrowings				238,712				263,787				364,953
Junior subordinated debentures				24,224				24,058				24,003
Subordinated debt				87,373				106,755				106,648
Other liabilities				60,506				61,610				60,440
Total liabilities				6,703,992				6,793,590				7,117,346
Total stockholders' equity				858,497				793,204				737,948
Total liabilities and stockholders' equity			$	7,562,489			$	7,586,794			$	7,855,294

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
			Three Months Ended								Nine Months Ended
			September 30,								September 30,
				2024				2023				2024				2023
Interest income:
Interest and fees on loans			$	81,775			$	69,143			$	239,158			$	183,747
Interest on investment securities				7,036				9,284				21,846				23,604
Interest on federal funds sold & other deposits				2,371				2,011				6,533				2,888
Total interest income				91,182				80,438				267,537				210,239
Interest expense:
Interest on deposits				28,341				22,047				80,775				51,394
Interest on securities sold under agreements to repurchase				1,444				1,625				5,115				4,811
Interest on other borrowings				2,195				4,749				6,757				13,716
Interest on jr. subordinated debentures				567				545				1,646				1,314
Interest on subordinated debt				1,092				1,029				3,466				3,003
Total interest expense				33,639				29,995				97,759				74,238
Net interest income				57,543				50,443				169,778				136,001
Provision for credit losses				1,266				5,911				1,992				5,552
Net interest income after provision for loan				56,277				44,532				167,786				130,449
Non-interest income:
Wealth management revenues				5,816				4,940				16,543				15,795
Insurance commissions				6,003				5,199				21,747				19,416
Service charges				3,121				2,994				9,304				7,583
Net securities gains/(losses)				(277	)			3,389				(433	)			3,337
Mortgage banking revenues				1,109				846				2,853				1,328
ATM/debit card revenue				4,267				3,766				12,603				10,114
Other				2,984				1,919				7,306				7,445
Total non-interest income				23,023				23,053				69,923				65,018
Non-interest expense:
Salaries and employee benefits				31,565				25,422				92,177				75,037
Net occupancy and equipment expense				8,055				6,929				23,122				18,969
Net other real estate owned (income) expense				107				902				171				1,062
FDIC insurance				829				785				2,600				2,324
Amortization of intangible assets				3,405				2,568				10,242				5,567
Stationary and supplies				482				335				1,243				942
Legal and professional expense				2,573				1,844				7,558				5,314
ATM/debit card expense				1,869				1,751				4,341				3,990
Marketing and donations				836				764				2,512				2,326
Other				4,212				5,796				14,720				13,184
Total non-interest expense				53,933				47,096				158,686				128,715
Income before income taxes				25,367				20,489				79,023				66,752
Income taxes				5,885				5,372				19,293				15,888
Net income			$	19,482			$	15,117			$	59,730			$	50,864
Per Share Information
Basic earnings per common share			$	0.81			$	0.81			$	2.50			$	1.74
Diluted earnings per common share				0.81				0.80				2.49				1.74
Weighted average shares outstanding				23,905,099				20,528,717				23,891,430				20,510,585
Diluted weighted average shares outstanding				24,006,647				20,628,239				23,988,478				20,596,283

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
							For the Quarter Ended
							September 30,				June 30,				March 31,				December 31,			September 30,
								2024				2024				2024				2023			2023
Interest income:
Interest and fees on loans							$	81,775			$	79,560			$	77,823			$	78,676		$	69,143
Interest on investment securities								7,036				7,405				7,405				8,515			9,284
Interest on federal funds sold & other deposits								2,371				1,718				2,444				2,736			2,011
Total interest income								91,182				88,683				87,672				89,927			80,438
Interest expense:
Interest on deposits								28,341				26,338				26,096				25,900			22,047
Interest on securities sold under agreements to repurchase								1,444				1,615				2,056				1,754			1,625
Interest on other borrowings								2,195				2,248				2,314				3,073			4,749
Interest on jr. subordinated debentures								567				537				542				545			545
Interest on subordinated debt								1,092				1,180				1,194				1,193			1,029
Total interest expense								33,639				31,918				32,202				32,465			29,995
Net interest income								57,543				56,765				55,470				57,462			50,443
Provision for credit losses								1,266				1,083				(357	)			552			5,911
Net interest income after provision for loan								56,277				55,682				55,827				56,910			44,532
Non-interest income:
Wealth management revenues								5,816				5,405				5,322				4,998			4,940
Insurance commissions								6,003				6,531				9,213				5,398			5,199
Service charges								3,121				3,227				2,956				3,298			2,994
Net securities gains/(losses)								(277	)			(156	)			0				46			3,389
Mortgage banking revenues								1,109				1,038				706				954			846
ATM/debit card revenue								4,267				4,281				4,055				4,233			3,766
Other								2,984				2,096				2,226				2,841			1,919
Total non-interest income								23,023				22,422				24,478				21,768			23,053
Non-interest expense:
Salaries and employee benefits								31,565				30,164				30,448				29,925			25,422
Net occupancy and equipment expense								8,055				7,507				7,560				7,977			6,929
Net other real estate owned (income) expense								107				85				(21	)			800			902
FDIC insurance								829				902				869				1,015			785
Amortization of intangible assets								3,405				3,340				3,497				3,560			2,568
Stationary and supplies								482				370				391				404			335
Legal and professional expense								2,573				2,536				2,449				2,065			1,844
ATM/debit card expense								1,869				1,281				1,191				1,332			1,751
Marketing and donations								836				814				862				679			764
Other								4,212				4,392				6,116				9,268			5,796
Total non-interest expense								53,933				51,391				53,362				57,025			47,096
Income before income taxes								25,367				26,713				26,943				21,653			20,489
Income taxes								5,885				6,968				6,440				3,582			5,372
Net income							$	19,482			$	19,745			$	20,503			$	18,071		$	15,117
Per Share Information
Basic earnings per common share							$	0.81			$	0.83			$	0.86			$	0.76		$	0.68
Diluted earnings per common share								0.81				0.82				0.86				0.76			0.68
Weighted average shares outstanding								23,905,099				23,896,210				23,872,731				23,837,853			22,220,438
Diluted weighted average shares outstanding								24,006,647				23,998,152				23,960,335				23,921,758			22,319,334

						FIRST MID BANCSHARES, INC.
						Consolidated Financial Highlights and Ratios
						(Dollars in thousands, except per share data)
						(Unaudited)
		As of and for the Quarter Ended
		September 30,				June 30,				March 31,				December 31,				September 30,
			2024				2024				2024				2023				2023
Loan Portfolio
Construction and land development		$	190,857			$	195,389			$	186,851			$	205,077			$	189,206
Farm real estate loans			384,620				387,015				388,941				391,132				399,834
1-4 Family residential properties			505,342				507,517				518,641				542,469				531,699
Multifamily residential properties			338,167				334,446				312,758				319,129				327,067
Commercial real estate			2,440,120				2,406,955				2,396,092				2,384,704				2,392,834
Loans secured by real estate			3,859,106				3,831,322				3,803,283				3,842,511				3,840,640
Agricultural operating loans			233,414				213,997				213,217				196,272				179,447
Commercial and industrial loans			1,283,631				1,268,646				1,227,906				1,266,159				1,242,653
Consumer loans			63,222				70,841				79,569				91,014				99,542
All other loans			175,218				175,811				175,320				184,609				177,783
Total loans			5,614,591				5,560,617				5,499,295				5,580,565				5,540,065
Deposit Portfolio
Non-interest bearing demand deposits		$	1,387,290			$	1,393,336			$	1,448,299			$	1,398,234			$	1,389,022
Interest bearing demand deposits			1,834,123				1,909,993				1,974,857				1,837,296				1,940,162
Savings deposits			648,582				673,381				704,777				710,586				734,377
Money Market			1,183,594				1,127,699				1,107,177				1,129,950				1,161,957
Time deposits			1,035,245				1,011,370				1,007,826				1,047,593				1,120,806
Total deposits			6,088,834				6,115,779				6,242,936				6,123,659				6,346,324
Asset Quality
Non-performing loans		$	18,242			$	19,079			$	20,064			$	20,128			$	21,269
Non-performing assets			20,076				20,557				21,471				21,292				23,565
Net charge-offs (recoveries)			804				708				381				118				181
Allowance for credit losses to non-performing loans			377.01	%			358.05	%			338.60	%			341.19	%			320.85	%
Allowance for credit losses to total loans outstanding			1.22	%			1.23	%			1.24	%			1.23	%			1.23	%
Nonperforming loans to total loans			0.32	%			0.34	%			0.36	%			0.36	%			0.38	%
Nonperforming assets to total assets			0.27	%			0.27	%			0.28	%			0.28	%			0.30	%
Special Mention loans			38,151				30,767				65,693				74,050				73,732
Substandard and Doubtful loans			29,037				27,594				29,296				28,945				30,575
Common Share Data
Common shares outstanding			23,904,051				23,895,868				23,888,929				23,827,137				23,830,038
Book value per common share		$	35.91			$	34.05			$	33.40			$	33.29			$	30.97
Tangible book value per common share (1)			24.82				23.28				22.49				22.20				19.73
Tangible book value per common share excluding other comprehensive income at period end (1)			29.70				29.43				28.67				27.93				27.24
Market price of stock			38.91				32.88				32.68				34.66				26.56
Key Performance Ratios and Metrics
End of period earning assets		$	6,786,458			$	6,812,574			$	6,923,742			$	6,780,160			$	7,007,282
Average earning assets			6,857,070				6,815,932				6,884,855				6,948,309				6,593,781
Average rate on average earning assets (tax equivalent)			5.35	%			5.27	%			5.16	%			5.18	%			4.89	%
Average rate on cost of funds			2.00	%			1.91	%			1.91	%			1.85	%			1.83	%
Net interest margin (tax equivalent) (1)			3.35	%			3.36	%			3.25	%			3.33	%			3.06	%
Return on average assets			1.03	%			1.05	%			1.07	%			0.93	%			0.90	%
Adjusted return on average assets (1)			1.05	%			1.07	%			1.17	%			1.16	%			0.94	%
Return on average common equity			9.40	%			9.92	%			10.37	%			9.76	%			8.70	%
Adjusted return on average common equity (1)			9.58	%			10.11	%			11.28	%			12.11	%			9.82	%
Efficiency ratio (tax equivalent) (1)			61.33	%			59.61	%			59.09	%			58.91	%			58.60	%
Full-time equivalent employees			1,207				1,185				1,188				1,187				1,224
1 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.

FIRST MID BANCSHARES, INC.
Net Interest Margin
(In thousands, unaudited)
		For the Quarter Ended September 30, 2024
		QTD Average							Average
		Balance				Interest			Rate
INTEREST EARNING ASSETS
Interest bearing deposits		$	160,050			$	2,304		5.73	%
Federal funds sold			26				28		428.43	%
Certificates of deposits investments			3,415				39		4.54	%
Investment Securities:
Taxable (total less municipals)			873,865				5,241		2.40	%
Tax-exempt (Municipals)			273,799				2,272		3.32	%
Loans (net of unearned income)			5,545,915				82,382		5.91	%
Total interest earning assets			6,857,070				92,266		5.35	%
NONEARNING ASSETS
Cash and due from banks			98,906
Premises and equipment			101,576
Other nonearning assets			594,609
Allowance for loan losses			(68,646	)
Total assets		$	7,583,515
INTEREST BEARING LIABILITIES
Demand deposits		$	2,999,374			$	17,563		2.33	%
Savings deposits			663,494				265		0.16	%
Time deposits			1,065,176				10,513		3.93	%
Total interest bearing deposits			4,728,044				28,341		2.38	%
Repurchase agreements			202,973				1,444		2.83	%
FHLB advances			238,723				2,194		3.66	%
Federal funds purchased			-				1		0.00	%
Subordinated debt			97,177				1,092		4.47	%
Jr. subordinated debentures			24,195				567		9.32	%
Other debt			-				-		0.00	%
Total borrowings			563,068				5,298		3.74	%
Total interest bearing liabilities			5,291,112				33,639		2.53	%
NONINTEREST BEARING LIABILITIES
Demand deposits			1,415,861			Average cost of funds			2.00	%
Other liabilities			47,848
Stockholders' equity			828,694
Total liabilities & stockholders' equity		$	7,583,515
Net Interest Earnings / Spread						$	58,627		2.82	%
Impact of Non-Interest Bearing Funds									0.53	%
Tax effected yield on interest earning assets									3.35	%

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, unaudited)
					As of and for the Quarter Ended
					September 30,				June 30,				March 31,				December 31,				September 30,
						2024				2024				2024				2023				2023
Net interest income as reported					$	57,543			$	56,765			$	55,470			$	57,462			$	50,443
Net interest income, (tax equivalent)						58,627				57,361				56,086				58,255				51,212
Average earning assets						6,857,070				6,815,932				6,884,855				6,948,309				6,593,781
Net interest margin (tax equivalent)						3.35	%			3.36	%			3.25	%			3.33	%			3.06	%
Common stockholder's equity					$	858,497			$	813,645			$	797,952			$	793,204			$	737,948
Goodwill and intangibles, net						265,139				257,377				260,699				264,231				267,793
Common shares outstanding						23,904				23,896				23,889				23,827				23,830
Tangible Book Value per common share					$	24.82			$	23.28			$	22.49			$	22.20			$	19.73
Accumulated other comprehensive loss (AOCI)						(116,692	)			(146,998	)			(147,667	)			(136,427	)			(178,903	)
Adjusted tangible book value per common share					$	29.70			$	29.43			$	28.67			$	27.93			$	27.24

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)
					As of and for the Quarter Ended
					September 30,				June 30,				March 31,				December 31,				September 30,
						2024				2024				2024				2023				2023
Adjusted earnings Reconciliation
Net Income - GAAP					$	19,482			$	19,745			$	20,503			$	18,071			$	15,117
Adjustments (post-tax): (1)
Acquisition ACL on non-PCD assets in provision expense						-				-				-				-				2,985
Net (gain)/loss on securities sales						219				123				-				(36	)			(2,677	)
Integration and acquisition expenses						137				250				1,804				4,385				1,653
Total non-recurring adjustments (non-GAAP)					$	356			$	373			$	1,804			$	4,348			$	1,962
Adjusted earnings - non-GAAP					$	19,838			$	20,118			$	22,307			$	22,419			$	17,079
Adjusted diluted earnings per share (non-GAAP)					$	0.83			$	0.84			$	0.93			$	0.94			$	0.77
Adjusted return on average assets - non-GAAP						1.05	%			1.07	%			1.17	%			1.16	%			0.94	%
Adjusted return on average common equity - non-GAAP						9.58	%			10.11	%			11.28	%			12.11	%			9.82	%
Efficiency Ratio Reconciliation
Noninterest expense - GAAP					$	53,933			$	51,391			$	53,362			$	57,025			$	47,096
Other real estate owned property income (expense)						(107	)			(85	)			21				(800	)			(902	)
Amortization of intangibles						(3,405	)			(3,340	)			(3,497	)			(3,560	)			(2,568	)
Nonrecurring severance expense						-				-				-				-				-
Integration and acquisition expenses						(174	)			(316	)			(2,283	)			(5,550	)			(2,093	)
Adjusted noninterest expense (non-GAAP)					$	50,247			$	47,650			$	47,603			$	47,115			$	41,533
Net interest income -GAAP					$	57,543			$	56,765			$	55,470			$	57,462			$	50,443
Effect of tax-exempt income (1)						1,084				596				616				793				769
Adjusted net interest income (non-GAAP)					$	58,627			$	57,361			$	56,086			$	58,255			$	51,212
Noninterest income - GAAP					$	23,023			$	22,422			$	24,478			$	21,768			$	23,053
Net (gain)/loss on securities sales						277				156				0				(46	)			(3,389	)
Adjusted noninterest income (non-GAAP)					$	23,300			$	22,578			$	24,478			$	21,722			$	19,664
Adjusted total revenue (non-GAAP)					$	81,927			$	79,939			$	80,564			$	79,977			$	70,876
Efficiency ratio (non-GAAP)						61.33	%			59.61	%			59.09	%			58.91	%			58.60	%
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.