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FIRST MID BANCSHARES, INC. (FMBH)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered GAAP diluted EPS of $0.80 and adjusted diluted EPS of $0.87 on adjusted total revenue of $84.99M; net interest margin (tax-equivalent) expanded 6 bps q/q to 3.41% as funding costs fell 17 bps .
  • Noninterest income rose to $26.36M (up 15% q/q), led by wealth management and insurance, aided by a record quarter of farmland sales; management emphasized technology investments driving efficiency .
  • Asset quality saw transitory pressure: provision increased to $3.64M, net charge-offs were $2.24M, and NPLs rose to 0.53% of loans, tied to a single organic farming borrower liquidation; ACL coverage remained strong at 235% of NPLs .
  • Dividend maintained at $0.24 per share (payable Feb 28, 2025), and capital ratios remained comfortably above well-capitalized thresholds; effective tax rate expected to be lower going forward due to Illinois law change .
  • Wall Street consensus via S&P Global was unavailable at time of compilation; Q4 earnings call transcript was not published in our sources, limiting Q&A insights (S&P Global consensus unavailable; transcript not found) .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 3.41% (+6 bps q/q) on lower cost of funds (-17 bps q/q) and reduced wholesale funding, despite lower asset yields; accretion was $3.4M .
  • Noninterest income increased to 31% of revenues, with strong wealth management and insurance and a record quarter of farmland sales; “strategic technology investments…deliver a better customer experience and significant operating efficiency,” said CEO Joe Dively .
  • Adjusted diluted EPS of $0.87 benefited from nonrecurring tech project adjustments; efficiency ratio improved to 59.5% vs 61.3% in Q3 .

What Went Wrong

  • Provision for credit losses rose to $3.64M and net charge-offs to $2.24M; NPL ratio increased to 0.53%, driven by a single organic farming borrower in liquidation; special mention loans rose to $57.8M .
  • Noninterest expense rose to $56.30M (+$2.36M q/q), including $2.2M in tech project costs and a $1.2M loss on sale of property; legal/professional fees increased .
  • Deposits declined $31.7M q/q (noninterest-bearing down), reflecting normal customer cash flows; total deposits ended at $6.06B .

Financial Results

Core comparisons vs prior year and prior quarter

MetricQ4 2023Q3 2024Q4 2024
Adjusted Total Revenue (non-GAAP, $USD Millions)$79.98 $81.93 $84.99
Net Interest Income (GAAP, $USD Millions)$57.46 $57.54 $58.95
Total Noninterest Income ($USD Millions)$21.77 $23.02 $26.36
Diluted EPS ($USD)$0.76 $0.81 $0.80
Net Interest Margin (TE, %)3.33% 3.35% 3.41%
Provision for Credit Losses ($USD Millions)$0.55 $1.27 $3.64
Efficiency Ratio (non-GAAP, %)58.91% 61.33% 59.51%

Noninterest income breakdown (segment-like detail)

Component ($USD Millions)Q4 2023Q3 2024Q4 2024
Wealth Management Revenues$5.00 $5.82 $6.28
Insurance Commissions$5.40 $6.00 $6.81
Service Charges$3.30 $3.12 $3.06
ATM/Debit Card Revenue$4.23 $4.27 $4.20
Mortgage Banking Revenues$0.95 $1.11 $1.10
Other$2.84 $2.98 $4.92
Net Securities Gains/(Losses)$0.05 $(0.28) $0.00

KPIs and balance sheet

KPIQ4 2023Q3 2024Q4 2024
Total Loans ($USD Billions)$5.58 $5.61 $5.67
Total Deposits ($USD Billions)$6.12 $6.09 $6.06
Noninterest-Bearing Demand Deposits ($USD Billions)$1.40 $1.39 $1.33
ACL / Total Loans (%)1.23% 1.22% 1.24%
NPLs / Total Loans (%)0.36% 0.32% 0.53%
Special Mention Loans ($USD Millions)$74.05 $38.15 $57.85
Substandard & Doubtful Loans ($USD Millions)$28.95 $29.04 $35.52
ROAA (%)0.93% 1.03% 1.01%
ROACE (%)9.76% 9.40% 9.04%
Tangible Book Value per Share ($)$22.20 $24.82 $24.46
Adjusted TBV ex OCI ($)$27.93 $29.70 $30.42

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per ShareNext payment (Feb 28, 2025)$0.24 (Nov 29, 2024 payment) $0.24 declared; payable Feb 28, 2025 Maintained
Effective Tax RateOngoing (from IL law change)N/ALower effective tax rate going forward due to IL apportionment change; DTA reduction in Q4 Lowered (qualitative)
Capital RatiosCurrentWell-capitalized (Q3) Well-capitalized (Q4) Maintained
Technology Project CostsQ4 specificN/A$2.2M nonrecurring expenses tied to retail/core system projects One-time spend (no ongoing numeric guidance)

Earnings Call Themes & Trends

Note: A Q4 2024 earnings call transcript was not available in our sources. The following trends are derived from Q2–Q4 earnings materials.

TopicPrevious Mentions (Q2 & Q3 2024)Current Period (Q4 2024)Trend
Technology initiativesQ3: advancing strategic initiatives; Q2: integration benefits (MRIG) and operational credits $2.2M project costs; continued execution of strategic tech investments for efficiency Investing; efficiency focus
Taxes / regulatoryQ2: IL HB 4951 lowers IL tax rate going forward; $1.0M DTA-related charge in Q2 Lower effective tax rate going forward; DTA reduction added $0.9M to taxes in Q4 Beneficial longer-term
Asset qualityQ2/Q3: strong metrics; low NPLs; ACL ~1.22–1.23% NPLs and net charge-offs up due to a single organic farming borrower; ACL/NPL 235% Mixed: isolated stress but coverage strong
Deposits / cost of fundsQ2: average cost flat at 1.91%; Q3: cost up to 2.00% Average cost down to 1.83% (-17 bps q/q), deposits modestly lower Improving funding costs
Noninterest income mixQ2: insurance seasonality; Q3: steady increases Strong WM/insurance; farmland sales boost Ag Services to $3.0M Rising
Net interest marginQ2: 3.36% (+11 bps q/q); Q3: 3.35% (flat) 3.41% (+6 bps q/q) Improving

Management Commentary

  • “Revenue growth and interest expense management helped drive a solid increase in adjusted earnings, despite higher provision expense. Our net interest margin expanded, and noninterest income increased to 31% of revenues.” — Joe Dively, Chairman & CEO .
  • “We are pleased with the success of the multiple strategic technology investments we completed this year… Collectively, these investments deliver a better customer experience and significant operating efficiency.” — Joe Dively .
  • On noninterest income: wealth and insurance had a strong finish; Ag Services recorded a “record quarter of farmland sales” .

Q&A Highlights

  • Q4 2024 earnings call transcript was not found in our document corpus or investor site sources; therefore, Q&A themes and specific analyst questions/management responses are unavailable (transcript not available) .

Estimates Context

  • S&P Global consensus EPS and revenue estimates for Q4 2024 were unavailable due to data retrieval limits at the time of request; as a result, we cannot provide numerical comparisons to consensus. Anchor remains S&P Global, but values were unavailable.
  • Implication: given margin expansion (+6 bps q/q) and strong noninterest income, sell-side models may reassess NIM trajectory and fee contributions; however, asset-quality developments tied to a single borrower may temper revisions to provision/credit cost assumptions .

Key Takeaways for Investors

  • Margin trajectory improved: NIM to 3.41% as cost of funds fell 17 bps; accretion modestly lower, but disciplined funding management helped offset lower asset yields .
  • Fee engines accelerating: noninterest income rose to $26.36M, with WM/insurance strength and farmland sales; noninterest income now 31% of revenues, supporting diversification .
  • Credit watch: NPLs and charge-offs increased due to one borrower (organic farming liquidation); ACL/NPL coverage is high at 235%, suggesting contained loss expectations; monitor resolution .
  • Expense discipline vs investment: efficiency ratio improved to 59.5% despite $2.2M tech project costs; continued tech investments aim to drive structural efficiency gains .
  • Deposits: total deposits fell modestly (-$31.7M), largely from noninterest-bearing accounts due to normal cash flows; lower funding costs should continue to support margins .
  • Capital and dividend: well-capitalized, CET1 at 12.42%; dividend maintained at $0.24, offering income stability .
  • Modeling: with S&P Global consensus unavailable, focus on company-reported drivers—lower funding costs, fee growth, and isolated credit event—to gauge near-term EPS path; expect provision normalization once the single-borrower issue is resolved .