GlobeNewswire Inc | Oct 28, 2021 08:00AM EDT

October 28, 2021

MATTOON, Ill., Oct. 28, 2021 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the Company) today announced its financial results for the quarter and year-to-date period ended September 30, 2021.

Highlights

-- Net income of $18.3 million, or $1.01 diluted EPS -- Adjusted net income (non-GAAP) of $19.7 million, or $1.08 diluted EPS -- Solid organic loan growth of 1.3% for the quarter, excluding acquired and Paycheck Protection Program loans -- Completed the integration of a St. Louis based commercial lending team including a portfolio of loans of approximately $208.0 million and deposits of approximately $215.1 million

We are pleased to report another strong quarter of financial results, which represented a new record high in quarterly earnings, said Joe Dively, Chairman and Chief Executive Officer. The quarter included net organic loan growth for the first time this year and the fourth quarter pipeline looks to be solid. Both the former Providence and the new St. Louis based commercial lending teams are fully integrated and off to a great start in supporting our customers and communities.

With respect to the pending acquisition of Delta Bancshares Company (Delta), which we announced on July 29, 2021, we have continued to work with the team on preparing for a smooth transition and are excited about the opportunities and additional services the combined entity can provide to Deltas customers and the broader St. Louis community, Dively concluded.

Net Interest Income

Net interest income for the third quarter of 2021 increased by $2.7 million, or 6.4% compared to the second quarter of 2021. Interest income increased by $2.6 million and interest expense decreased $0.1 million from the previous quarter. PPP fee income totaled $5.1 million, an increase of $3.1 million from the prior quarter, which was partially offset by a decline in accretion income. The third quarter included $1.6 million of accretion income compared to $2.8 million in the second quarter. As of September 30, 2021, the Company had $2.0 million of deferred fee income on PPP loans remaining.

In comparison to the third quarter of 2020, net interest income increased $13.0 million, or 39.9%. The increase was primarily the result of the acquisition of Providence Bank in the first quarter of 2021, the additional income from the PPP, and the active management to lower funding costs.

Net Interest Margin

Net interest margin, on a tax equivalent basis, was 3.38% for the third quarter of 2021, which was an increase of 16 basis points compared to the prior quarter. Earning asset yields increased 15 basis points, while the average cost of funds declined by one basis point.

In comparison to the third quarter of last year, the net interest margin increased 21 basis points with earning asset yields higher by 11 basis points and average cost of funds lower by 10 basis points. The increase in rates on earning assets was primarily driven by higher accretion and PPP fee income. The decrease in average cost of funds was mostly the result of not replacing higher cost funds as they have matured and lower rates on certain products.

Loan Portfolio

Total loans ended the quarter at $3.95 billion, representing an increase of $151.5 million compared to the prior quarter. PPP loans decreased by $105.7 million, and the St. Louis loan acquisition added $208.0 million during the quarter. Excluding these changes, loans increased $49.2 million in the quarter, or 1.3%. The Company had $59.4 million of PPP loans outstanding on September 30, 2021. Loan growth in the quarter was dispersed broadly in both industry and geographically.

Asset Quality

The Companys asset quality measures continued to be in a very strong position. At quarter end, the ratio of non-performing loans to total loans was 0.70%, and the allowance for credit losses (ACL) to non-performing loans was 195%. Nonperforming loans and nonperforming assets decreased in the quarter. The ratio of nonperforming assets to total assets was 0.55% at quarter end. Net charge-offs were $1.7 million during the third quarter, primarily from one loan where the reserve had already been accounted for. Special mention loans decreased $20.7 million to $76.2 million and substandard loans decreased $4.4 million to $51.1 million.

Provision expense for the quarter was $1.1 million compared to $3.9 million in the same quarter last year. As of September 30, 2021, the ACL, excluding $59.4 million of PPP loans, was 1.39% of total loans.

Deposits

Total deposits ended the quarter at $4.99 billion, which represented an increase of $249.2 million from the prior quarter. Excluding the acquired deposits of $215.1 million, deposits increased $34.1 million in the quarter. The Companys average rate on cost of funds was 0.29% for the quarter compared to 0.30% in the prior quarter and 0.39% in the third quarter of 2020. The Company continues to reprice CDs lower and let wholesale funding sources mature without replacement.

Noninterest Income

Noninterest income for the third quarter of 2021 was $16.4 million compared to $18.3 million in the second quarter of 2021. The decrease was primarily due to the seasonality of insurance business and farmland sales. While these businesses have seasonality throughout the year, they provide significant diversification and stable revenue and cash flow streams for the Company.

In comparison to the third quarter of last year, noninterest income increased $2.8 million, or 20.5%. Combined, insurance and wealth management business lines increased 20.4% over the same period last year, partially due to the previously announced acquisitions within these lines of business. The other fee income services increased 20.6% compared to the third quarter of last year, partially due to the addition of Providence.

Noninterest Expenses

Noninterest expense for the third quarter totaled $36.3 million compared to $46.0 million in the second quarter. The current quarter included $0.4 million of acquisition and integration related costs and $1.3 million in branch optimization costs. Combined, these expenses were down by $5.4 million compared to the prior quarter. In addition, the third quarter represents the first full quarter of run-rate cost savings from the Providence integration. The third quarter is also lower, partially due to the seasonality in the wealth management farm business and in insurance.

In comparison to the third quarter of 2020, noninterest expenses increased $9.4 million. The increase was primarily due to the addition of Providence, growth in the insurance and wealth management businesses, and branch optimization costs.

The Companys efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the third quarter 2021 was 52.7% compared to 59.9% in the prior quarter and 54.7% for the same period last year.

Regulatory Capital Levels and Dividend

The Companys capital levels remained strong and comfortably above the well capitalized levels. Capital levels ended the period as follows:

Total capital to risk-weighted assets 15.86%Tier 1 capital to risk-weighted assets 12.52%Common equity tier 1 capital to risk-weighted assets 12.06%Leverage ratio 9.04%

The Companys Board of Directors approved its next quarterly dividend in the amount of $0.22 payable on December 1, 2021 for shareholders of record on November 17, 2021.

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 $6.0 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, and Texas, 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 156 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 Companys 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 StatementsThis document may contain certain forward-looking statements about First Mid and Delta Bancshares Company (Delta), such as discussions of First Mids and Deltas 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 and Delta, 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, the possibility that any of the anticipated benefits of the proposed transactions between First Mid and Delta will not be realized or will not be realized within the expected time period; the risk that integration of the operations of Delta with First Mid will be materially delayed or will be more costly or difficult than expected; the inability to complete the proposed transactions due to the failure to satisfy conditions to completion of the proposed transactions, including failure to obtain the required regulatory, shareholder and other approvals; the failure of the proposed transactions to close for any other reason; the effect of the announcement of the proposed transactions on customer relationships and operating results; the possibility that the proposed transactions may be more expensive to complete than anticipated, including as a result of unexpected factors or events; changes in interest rates; general economic conditions and those in the market areas of First Mid and Delta; 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 Mids and Deltas 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 and Delta; accounting principles, policies and guidelines; the severity, magnitude and duration of the COVID-19 pandemic, the direct and indirect impact of such pandemic, including responses to the pandemic by the U.S., state and local governments, customers' businesses, the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect First Mids and Deltas liquidity and capital positions, impair the ability of First Mids and Deltas borrowers to repay outstanding loans, impair collateral values, and further increase the allowance for credit losses, and the impact of the COVID-19 pandemic on First Mids and Deltas financial results, including possible lost revenue and increased expenses (including cost of capital), as well as possible goodwill impairment charges. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mids financial results, are included in First Mids 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.

Important Information about the Merger and Additional InformationFirst Mid filed a registration statement on Form S-4 with the SEC on September 17, 2021, which, as amended, was declared effective on October 5, 2021, in connection with the proposed transaction. The registration statement includes a proxy statement of Delta that also constitutes a prospectus of First Mid. Investors in Delta are urged to read the proxy statement/prospectus, which will contain important information, including detailed risk factors. The proxy statement/prospectus and other documents which will be filed by First Mid with the SEC will be available free of charge at the SECs website, www.sec.gov, or by directing a request when such a filing is made to First Mid Bancshares, P.O.Box 499, Mattoon, IL 61938, Attention: Investor Relations; or to Delta Bancshares Company, 2301 Market Street, Saint Louis, MO 63103, Attention: John Dulle, Executive Vice President. The definitive proxy statement/prospectus was first mailed to the shareholders of Delta on or about October 8, 2021.

Participants in the SolicitationFirst Mid and Delta, and certain of their respective directors, executive officers and other members of management and employees, are participants in the solicitation of proxies in connection with the proposed transactions. Information about the directors and executive officers of First Mid is set forth in the proxy statement for its 2021 annual meeting of stockholders, which was filed with the SEC on March 19, 2021. Investors may obtain additional information regarding the interests of such participants in the proposed transactions by reading the proxy statement/prospectus for such proposed transactions.

No Offer or SolicitationThis communication shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Investor Contact: Aaron HoltVP, Shareholder Relations217-258-0463 aholt@firstmid.com

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

Tables Follow

FIRST MID BANCSHARES, INC. Condensed Consolidated Balance Sheets (In thousands, unaudited) As of September 30, December 31, September 30, 2021 2020 2020 Assets Cash and cash $ 345,206 $ 417,281 $ 232,385 equivalentsInvestment 1,357,035 887,169 750,122 securitiesLoans (including loans 3,947,769 3,138,419 3,236,247 held for sale)Less allowance for (53,983 ) (41,910 ) (41,915 ) credit lossesNet loans 3,893,786 3,096,509 3,194,332 Premises and 81,823 58,206 59,356 equipment, netGoodwill and 142,656 128,120 129,287 intangibles, netBank owned life 131,547 68,955 68,519 insuranceOther assets 91,306 70,108 75,127 Total assets $ 6,043,359 $ 4,726,348 $ 4,509,128 Liabilities and Stockholders' EquityDeposits: Non-interest $ 1,242,950 $ 936,926 $ 837,602 bearingInterest bearing 3,745,612 2,755,858 2,782,234 Total deposits 4,988,562 3,692,784 3,619,836 Repurchase agreement 149,891 206,937 170,345 with customersOther borrowings 112,641 93,969 93,954 Junior subordinated 19,153 19,027 18,985 debenturesSubordinated debt 94,363 94,253 Other 51,524 51,150 44,999 liabilitiesTotal 5,416,134 4,158,120 3,948,119 liabilities Total stockholders' 627,225 568,228 561,009 equityTotal liabilities and $ 6,043,359 $ 4,726,348 $ 4,509,128 stockholders' equity

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, 2021 2020 2021 2020 Interest income:Interest and $ 43,292 $ 32,151 $ 119,973 $ 93,560 fees on loansInterest oninvestment 5,835 4,074 16,416 12,740 securitiesInterest onfederal funds sold 136 70 325 271 & other depositsTotalinterest 49,263 36,295 136,714 106,571 incomeInterest expense:Interest on 2,234 3,168 6,980 10,134 depositsInterest onsecuritiessold under 52 68 179 420 agreementstorepurchaseInterest onother 359 395 1,178 1,506 borrowingsInterest on jr.subordinated 137 147 416 539 debenturesInterest onsubordinated 985 - 2,954 - debtTotalinterest 3,767 3,778 11,707 12,599 expenseNet interest 45,496 32,517 125,007 93,972 incomeProvision for 1,103 3,883 12,679 15,500 loan lossesNet interestincome after 44,393 28,634 112,328 78,472 provision for loanNon-interest income:Wealthmanagement 4,204 3,468 14,146 10,921 revenuesInsurance 3,932 3,291 14,777 14,000 commissionsService 1,838 1,446 4,741 4,335 chargesSecurities 11 95 88 913 gains, netMortgagebanking 1,477 1,661 4,577 3,205 revenuesATM/debit card 3,060 2,367 8,900 6,593 revenueOther 1,837 1,250 5,163 4,006 Totalnon-interest 16,359 13,578 52,392 43,973 incomeNon-interest expense:Salaries andemployee 21,092 15,346 69,487 47,301 benefitsNet occupancyand equipment 5,382 4,363 15,834 12,746 expenseNet other realestate owned 1,507 110 3,551 62 (income) expenseFDIC 268 469 1,198 851 insuranceAmortization ofintangible 1,414 1,277 3,929 3,862 assetsStationary 299 262 850 805 and suppliesLegal andprofessional 1,878 1,320 4,919 4,207 expenseMarketing and 679 387 1,688 1,182 donationsOther 3,802 3,393 18,478 9,740 Totalnon-interest 36,321 26,927 119,934 80,756 expenseIncome before 24,431 15,285 44,786 41,689 income taxesIncome taxes 6,105 3,720 10,130 9,988 Net income $ 18,326 $ 11,565 $ 34,656 $ 31,701 Per Share InformationBasic earningsper common $ 1.01 $ 0.69 $ 1.94 $ 1.90 shareDilutedearnings per 1.01 0.69 1.94 1.89 common share Weightedaverage shares 18,083,126 16,728,191 17,819,619 16,710,485 outstandingDiluted weightedaverage shares 18,136,146 16,775,099 17,872,639 16,757,393 outstanding

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, 2021 2021 2021 2020 2020 Interest income:Interest and $ 43,292 $ 40,795 $ 35,886 $ 33,254 $ 32,151 fees on loansInterest oninvestment 5,835 5,739 4,842 4,226 4,074 securitiesInterest onfederal funds sold 136 101 88 90 70 & other depositsTotalinterest 49,263 46,635 40,816 37,570 36,295 incomeInterest expense:Interest on 2,234 2,262 2,484 2,617 3,168 depositsInterest onsecurities sold under 52 57 70 68 68 agreements torepurchaseInterest onother 359 445 374 371 395 borrowingsInterest on jr.subordinated 137 139 140 143 147 debenturesInterest onsubordinated 985 985 984 931 - debtTotalinterest 3,767 3,888 4,052 4,130 3,778 expenseNet interest 45,496 42,747 36,764 33,440 32,517 incomeProvision for 1,103 (560 ) 12,136 603 3,883 loan lossesNet interestincome after 44,393 43,307 24,628 32,837 28,634 provision for loanNon-interest income:Wealthmanagement 4,204 5,016 4,926 5,232 3,468 revenuesInsurance 3,932 4,988 5,857 3,477 3,291 commissionsService 1,838 1,539 1,364 1,527 1,446 chargesSecurities 11 73 4 193 95 gains, netMortgagebanking 1,477 1,691 1,409 1,870 1,661 revenuesATM/debit card 3,060 3,141 2,699 2,369 2,367 revenueOther 1,837 1,836 1,490 879 1,250 Totalnon-interest 16,359 18,284 17,749 15,547 13,578 incomeNon-interest expense:Salaries andemployee 21,092 24,908 23,487 19,151 15,346 benefitsNet occupancyand equipment 5,382 5,482 4,970 3,962 4,363 expenseNet other realestate owned 1,507 1,966 78 (20 ) 110 (income) expenseFDIC 268 478 452 458 469 insuranceAmortization ofintangible 1,414 1,295 1,220 1,200 1,277 assetsStationary 299 235 316 275 262 and suppliesLegal andprofessional 1,878 1,639 1,402 1,220 1,320 expenseMarketing and 679 507 502 434 387 donationsOther 3,802 9,503 5,173 3,651 3,393 Totalnon-interest 36,321 46,013 37,600 30,331 26,927 expenseIncome before 24,431 15,578 4,777 18,053 15,285 income taxesIncome taxes 6,105 3,357 668 4,484 3,720 Net income $ 18,326 $ 12,221 $ 4,109 $ 13,569 $ 11,565 Per Share InformationBasic earningsper common $ 1.01 $ 0.68 $ 0.24 $ 0.81 $ 0.69 shareDilutedearnings per 1.01 0.68 0.24 0.81 0.69 common share Weightedaverage shares 18,083,126 18,067,190 17,299,927 16,735,926 16,728,191 outstandingDiluted weightedaverage shares 18,136,146 18,120,210 17,352,947 16,779,129 16,775,099 outstanding

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, 2021 2021 2021 2020 2020 Loan PortfolioConstructionand land $ 180,061 $ 141,568 $ 165,376 $ 122,479 $ 167,515 developmentFarm real 278,788 277,362 269,652 254,341 256,230 estate loans1-4 Familyresidential 412,565 394,902 412,470 325,762 339,172 propertiesMultifamilyresidential 306,911 274,910 297,984 189,632 139,255 propertiesCommercial 1,583,255 1,480,198 1,402,885 1,174,300 1,177,571 real estateLoans secured 2,761,580 2,568,940 2,548,367 2,066,514 2,079,743 by real estateAgriculturaloperating 126,534 123,101 121,070 137,352 141,074 loansCommercial andindustrial 835,860 864,554 1,017,400 738,313 807,668 loansConsumer 80,064 84,541 91,705 78,002 80,348 loansAll other 143,731 155,168 164,557 118,238 127,414 loansTotal loans 3,947,769 3,796,304 3,943,099 3,138,419 3,236,247 Deposit PortfolioNon-interestbearing demand $ 1,242,950 $ 1,157,009 $ 1,185,181 $ 936,926 $ 837,602 depositsInterestbearing demand 1,416,361 1,418,717 1,268,882 1,031,183 1,053,691 depositsSavings 612,404 598,232 668,098 499,427 485,241 depositsMoney 1,075,852 842,771 803,946 748,179 736,262 MarketTime 640,995 722,593 811,586 477,069 507,040 depositsTotal 4,988,562 4,739,322 4,737,693 3,692,784 3,619,836 deposits Asset QualityNon-performing $ 27,723 $ 30,410 $ 31,984 $ 28,123 $ 22,439 loansNon-performing 33,359 37,648 45,323 30,616 24,712 assetsNet 1,717 261 702 608 349 charge-offsAllowance forcredit losses to 194.72% 179.54% 173.27% 149.02% 186.80% non-performingloansAllowance forcredit losses to 1.39%^1 1.50%^1 1.50%^1 1.41%^1 1.41%^1 total loansoutstandingNonperformingloans to total 0.70% 0.80% 0.81% 0.90% 0.69% loansNonperformingassets to 0.55% 0.65% 0.78% 0.65% 0.55% total assets Common Share DataCommon shares 18,083,126 18,078,474 18,042,256 16,741,208 16,731,684 outstandingBook value per $ 34.69 $ 34.08 $ 33.36 $ 33.94 $ 33.53 common shareTangible bookvalue per 26.80 26.33 25.68 26.29 25.80 common share ^(2)Market price 41.06 40.51 43.93 33.66 24.95 of stock KeyPerformance Ratios andMetricsEnd of period $ 5,542,199 $ 5,269,882 $ 5,374,848 $ 4,367,717 $ 4,130,186 earning assetsAverage 5,396,239 5,380,411 4,769,975 4,238,388 4,113,846 earning assetsAverage rate onaverage earning 3.67% 3.52% 3.52% 3.58% 3.56% assets (taxequivalent)Average rateon cost of 0.29% 0.30% 0.36% 0.41% 0.39% fundsNet interestmargin (tax 3.38% 3.22% 3.16% 3.17% 3.17% equivalent) ^(2)Return on 1.25% 0.84% 0.32% 1.18% 1.03% average assetsReturn onaverage common 11.67% 8.00% 2.78% 9.66% 8.31% equityEfficiencyratio (tax 52.73% 59.91% 61.20% 58.27% 54.66% equivalent) ^(2)Full-timeequivalent 960 960 983 824 816 employees ^1 ExcludesPaycheck ProtectionProgram loans.^2 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, 2021 QTD Average Average Balance Interest Rate INTEREST EARNING ASSETS Interest bearing deposits $ 277,844 $ 122 0.17 % Federal funds sold 1,341 - 0.00 % Certificates of deposits 2,453 13 2.10 % investmentsInvestment Securities: Taxable (total less 976,817 3,961 1.62 % municipals)Tax-exempt (Municipals) 312,796 2,373 3.03 % Loans (net of unearned 3,824,988 43,463 4.51 % income) Total interest earning assets 5,396,239 49,932 3.67 % NONEARNING ASSETS Cash and due from banks 100,475 Premises and equipment 82,057 Other nonearning assets 344,014 Allowance for loan losses (55,373 ) Total assets $ 5,867,412 INTEREST BEARING LIABILITIES Demand deposits $ 2,336,601 $ 1,177 0.20 % Savings deposits 606,129 111 0.07 % Time deposits 673,833 946 0.56 % Total interest bearing 3,616,563 2,234 0.25 % depositsRepurchase agreements 160,686 52 0.13 % FHLB advances 112,715 359 1.26 % Federal funds purchased - - 0.00 % Subordinated debt 94,338 985 4.14 % Jr. subordinated debentures 19,125 137 2.84 % Other borrowings - - 0.00 % Total borrowings 386,864 1,533 1.57 % Total interest bearing 4,003,427 3,767 0.37 % liabilities NONINTEREST BEARING LIABILITIESDemand deposits 1,179,915 Average cost 0.29 % of fundsOther liabilities 56,107 Stockholders' equity 627,963 Total liabilities & $ 5,867,412 stockholders' equity Net Interest Earnings / $ 46,165 3.30 % Spread Impact of Non-Interest 0.08 % Bearing Funds Tax effected yield on interest earning assets 3.38 %

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, 2021 2021 2021 2020 2020 Net interest income $ 45,496 $ 42,747 $ 36,764 $ 33,440 $ 32,517 as reportedNet interest income, 46,165 43,359 37,359 34,040 33,084 (tax equivalent)Average earning 5,396,239 5,380,411 4,769,975 4,238,388 4,113,846 assetsNet interest margin 3.38 % 3.22 % 3.16 % 3.17 % 3.17 % (tax equivalent) Common stockholder's $ 627,225 $ 616,066 $ 601,884 $ 568,228 $ 561,009 equityGoodwill and 142,656 139,995 138,606 128,120 129,287 intangibles, netCommon shares 18,083 18,078 18,042 16,741 16,732 outstandingTangible Book Value per $ 26.80 $ 26.33 $ 25.68 $ 26.29 $ 25.80 common share

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, 2021 2021 2021 2020 2020 Adjusted earnings ReconciliationNet Income $ 18,326 $ 12,221 $ 4,109 $ 13,569 $ 11,565 - GAAPAdjustments(post-tax): ^ (1)Acquisition ACL onnon-PCD assets in - - 9,072 - - provision expenseBranchoptimization 999 960 - - - costsIntegration andacquisition 348 4,634 2,036 292 69 expensesTotal non-recurringadjustments $ 1,347 $ 5,595 $ 11,108 $ 292 $ 69 (non-GAAP) Adjustedearnings - $ 19,673 $ 17,816 $ 15,217 $ 13,861 $ 11,634 non-GAAPAdjusted dilutedearnings per share $ 1.08 $ 0.98 $ 0.88 $ 0.83 $ 0.69 (non-GAAP) EfficiencyRatio ReconciliationNoninterest $ 36,321 $ 46,013 $ 37,600 $ 30,331 $ 26,927 expense - GAAPOther real estateowned property (242 ) (751 ) (78 ) 20 (110 ) income (expense)Amortization (1,414 ) (1,295 ) (1,220 ) (1,200 ) (1,277 ) of intangiblesBranchoptimization (1,265 ) (1,215 ) - - - costsintegration andacquisition (440 ) (5,866 ) (2,578 ) (369 ) (87 ) expensesAdjustednoninterest $ 32,960 $ 36,886 $ 33,724 $ 28,782 $ 25,453 expense(non-GAAP) Net interest $ 45,496 $ 42,747 $ 36,764 $ 33,440 $ 32,517 income -GAAPEffect oftax-exempt 669 612 595 601 566 income ^(1)Adjusted netinterest income $ 46,165 $ 43,359 $ 37,359 $ 34,041 $ 33,083 (non-GAAP) Noninterest $ 16,359 $ 18,284 $ 17,749 $ 15,547 $ 13,578 income - GAAPGain on sales ofinvestment (11 ) (73 ) (4 ) (193 ) (95 ) securities, netAdjustednoninterest $ 16,348 $ 18,211 $ 17,745 $ 15,354 $ 13,483 income (non-GAAP) Adjusted totalrevenue $ 62,513 $ 61,570 $ 55,104 $ 49,395 $ 46,566 (non-GAAP) Efficiencyratio 52.73 % 59.91 % 61.20 % 58.27 % 54.66 % (non-GAAP) (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.