On August 1, 2024, First Mid Bancshares Inc (FMBH, Financial) released its 8-K filing announcing its financial results for the quarter ended June 30, 2024. First Mid Bancshares Inc is a United States-based financial holding company engaged in banking, data processing services, and insurance products through its subsidiaries. The company's operations span community banking, wealth management, and insurance services, with key revenue derived from community banking services.
Performance Overview
First Mid Bancshares Inc reported net income of $19.7 million, or $0.82 diluted EPS, surpassing the analyst estimate of $0.79 per share. Adjusted net income (non-GAAP) was $20.1 million, or $0.84 diluted EPS. The company's net interest income increased by $1.3 million, driven by margin expansion and loan growth.
Key Financial Achievements
Net interest income for Q2 2024 was $56.8 million, a 2.3% increase from the previous quarter. This growth was primarily due to a $1.0 million rise in interest income from loan growth and repricing of maturing loans. The company strategically utilized cash for loan funding, leading to a $0.3 million decline in interest expense.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Interest Income | $56.8 million | $42.4 million |
| Non-Interest Income | $22.4 million | $19.5 million |
| Non-Interest Expense | $51.4 million | $40.0 million |
| Net Income | $19.7 million | $16.6 million |
Balance Sheet and Cash Flow
Total loans increased to $5.56 billion, a 1.1% rise from the previous quarter, with diversified growth across various loan categories. The allowance for credit losses (ACL) stood at $68.3 million, with a provision expense of $1.1 million and net charge-offs of $0.7 million. Deposits decreased by 2.0% to $6.12 billion, primarily due to lower interest-bearing demand deposits and noninterest-bearing accounts.
Asset Quality and Capital Levels
The company's asset quality remained strong, with non-performing loans at 0.34% of total loans and an ACL to non-performing loans ratio of 358%. The capital levels were robust, with a total capital to risk-weighted assets ratio of 15.46% and a leverage ratio of 10.04%.
Strategic Initiatives and Commentary
First Mid Bancshares Inc announced the acquisition of Mid Rivers Insurance Group (MRIG) on July 9, 2024, enhancing its presence in Missouri and increasing noninterest income. The Board of Directors approved a $0.01 increase in the quarterly dividend to $0.24 per share.
“We delivered another strong quarter of financial results and continued our strategy to expand noninterest income with the acquisition of MRIG,” said Joe Dively, Chairman and Chief Executive Officer. “The quarter included solid loan growth and superior asset quality.”
Analysis and Conclusion
First Mid Bancshares Inc's Q2 2024 performance highlights its effective strategies in loan growth and margin expansion. The company's strong asset quality and capital levels position it well for future growth. The acquisition of MRIG is expected to further diversify its revenue streams and strengthen its market presence.
For more detailed insights and financial data, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from First Mid Bancshares Inc for further details.
