FMBH First Mid Bancshares Inc

First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended March 31, 2024.

Highlights

• Net income of $20.5 million, or $0.86 diluted EPS
• Adjusted net income (non-GAAP) of $22.3 million, or $0.93 diluted EPS
• Strong asset quality performance with minimal net charge offs and lower classifieds
• Insurance revenues drive record high quarter of noninterest income
• Named Top Workplace by USA Today
• Board of Directors declares regular quarterly dividend of $0.23 per share

“Coming off an eventful year for our industry, I am pleased with the way we started 2024,” said Joe Dively, Chairman and Chief Executive Officer. “The benefits of adding Blackhawk are shining through with a stable core margin, significant liquidity, and continued asset quality strength. Our revenue diversification continues to be a differentiator for us as we achieved a new record high in noninterest income on the growth and seasonality in insurance revenues.   Finally, I am extremely proud of the national recognition to be named a top workplace by USA Today. We understand and foster an environment where we prioritize a culture of engagement where our employees feel valued, empowered, and connected to a broader mission of serving our customers and communities.”

Net Interest Income Net interest income for the first quarter of 2024 decreased by $2.0 million, or 3.5% compared to the fourth quarter of 2023. The decline was primarily the result of lower loan balances and less accretion income. Interest income declined by $2.3 million in the quarter, which included a decline of $0.9 million in accretion income. Accretion income in the period totaled $3.6 million. Interest expense declined $0.3 million in the quarter primarily driven by less FHLB borrowings outstanding on an increase in overall liquidity position.               

In comparison to the first quarter of 2023, net interest income increased $12.3 million, or 28.4%.   The increase was primarily driven by the addition of Blackhawk. For the same period, interest income increased by $24.0 million, while interest expense increased $11.7 million.                     

Net Interest MarginNet interest margin, on a tax equivalent basis (non-GAAP), was 3.25% for the first quarter of 2024. While this was an 8 basis point decline compared to the prior quarter, the margin only declined by 2 basis points when the decline of $0.9 million in accretion income is considered.   Earning asset yields declined by 2 basis points and the average cost of funds increased 6 basis points.           

In comparison to the first quarter of last year, the net interest margin increased 31 basis points, with an average earning asset increase of 84 basis points versus the average cost of funds increase of 53 basis points.

Loan Portfolio Total loans ended the quarter at $5.50 billion, representing a decrease of $81.3 million from the prior quarter. The declines were spread across all categories, except for Ag operating loans which increased $16.9 million.   The portfolio experienced larger than normal paydowns of lines in the C&I sector during the quarter. The loan portfolio continues to be well diversified both geographically and by industry.   Non-medical office exposure is approximately 3.7% of the portfolio with minimal exposure to urban markets.              

Asset Quality The first quarter was another strong period with respect to the Company’s asset quality metrics. The allowance for credit losses (“ACL”) ended the period at $67.9 million and the ACL to total loans ratio increased to 1.24%. In addition to the ACL, an unearned discount of $46.3 million remains at quarter end. Provision expense was recorded as a credit in the amount of $0.4 million with net charge offs of $0.4 million in the quarter. Also, at the end of the first quarter, the ratio of non-performing loans to total loans was 0.36%, and the ACL to non-performing loans was 338.6%.   The ratio of nonperforming assets to total assets was 0.28% and nonperforming loans were $20.1 million at quarter end. Special mention loans declined $8.4 million in the quarter to $65.6 million and substandard loans increased $0.4 million to $29.3 million.      

DepositsTotal deposits ended the quarter at $6.24 billion, which represented an increase of $119.3 million from the prior quarter. Noninterest bearing deposits increased by $50.0 million and interest-bearing demand deposits increased by $137.6 million in the period. Approximately $50.0 million of the total increase was short-term normal cash flow needs of certain customers that came in late in the quarter and was disbursed early in the second quarter.   With the Company’s strong liquidity position, it has been able to manage the pressure on the funding costs with a focus on relationship pricing and allowing other funding, such as brokered CDs, to roll off.                      

Noninterest IncomeNoninterest income for the first quarter of 2024 was a record high of $24.5 million compared to $21.8 million in the fourth quarter of 2023.   The increase was primarily driven by a new high in insurance revenues, which are also seasonally highest in the first quarter, with an increase of $3.8 million. Wealth management revenues increased $0.3 million and assets under management increased to $6.2 billion. Mortgage banking and all other banking fees declined in the quarter.      

In comparison to the first quarter of 2023, noninterest income increased $2.0 million, or 8.9%, due to a combination of organic growth and the addition of Blackhawk.   Insurance revenues increased by $0.7 million, or 8.7% compared to the first quarter of 2024.                    

Noninterest Expenses      Noninterest expense for the first quarter of 2024 totaled $53.4 million compared to $57.0 million in the prior quarter. The current quarter included $2.3 million of nonrecurring integration related costs, which was a decrease of $3.3 million from the prior quarter. In addition, the Company recorded a credit for $0.9 million in debit card fees for a negotiated agreement with its primary provider.  

In comparison to the first quarter of 2023, noninterest expenses increased $11.8 million. The increase was primarily driven by the addition of Blackhawk. Nonrecurring costs were $2.3 million in the current quarter and $0.2 million in the same quarter last year.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the first quarter 2024 was 59.1% compared to 58.9% in the prior quarter and 59.0% for the same period last year.

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

Total capital to risk-weighted assets		15.35%
Tier 1 capital to risk-weighted assets		12.46%
Common equity tier 1 capital to risk-weighted assets		12.06%
Leverage ratio		9.71%

Tangible book value per common share increased in the period to $22.49 with earnings growth more than offsetting a negative $11.2 million impact to accumulated other comprehensive income (“AOCI”) from an increase in the unrealized loss position in the bond portfolio.

The Company’s Board of Directors approved a regular quarterly dividend of $0.23 payable on May 31, 2024, for shareholders of record on May 15, 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 $7.7 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 the global COVID-19 pandemic 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

– Tables Follow –

		FIRST MID BANCSHARES, INC.
		Condensed Consolidated Balance Sheets
		(In thousands, unaudited)
		As of
		March 31,				December 31,				March 31,
			2024				2023				2023
Assets
Cash and cash equivalents		$	355,701			$	143,064			$	169,134
Investment securities			1,149,752				1,179,402				1,217,754
Loans (including loans held for sale)			5,499,295				5,580,565				4,760,631
Less allowance for credit losses			(67,936	)			(68,675	)			(58,223	)
Net loans			5,431,359				5,511,890				4,702,408
Premises and equipment, net			101,666				101,396				90,178
Goodwill and intangibles, net			260,699				264,231				168,373
Bank Owned Life Insurance			167,247				166,125				151,366
Other assets			211,822				220,686				183,637
Total assets		$	7,678,246			$	7,586,794			$	6,682,850
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing		$	1,448,299			$	1,398,234			$	1,262,181
Interest bearing			4,794,637				4,725,425				3,768,597
Total deposits			6,242,936				6,123,659				5,030,778
Repurchase agreements with customers			210,719				213,721				228,664
Other borrowings			238,761				263,787				595,021
Junior subordinated debentures			24,113				24,058				19,406
Subordinated debt			106,862				106,755				94,593
Other liabilities			56,903				61,610				52,523
Total liabilities			6,880,294				6,793,590				6,020,985
Total stockholders' equity			797,952				793,204				661,865
Total liabilities and stockholders' equity		$	7,678,246			$	7,586,794			$	6,682,850

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
		Three Months Ended
		March 31,
			2024				2023
Interest income:
Interest and fees on loans		$	77,823			$	56,236
Interest on investment securities			7,405				7,127
Interest on federal funds sold & other deposits			2,444				308
Total interest income			87,672				63,671
Interest expense:
Interest on deposits			26,096				12,767
Interest on securities sold under agreements to repurchase			2,056				1,463
Interest on other borrowings			2,314				4,883
Interest on jr. subordinated debentures			542				379
Interest on subordinated debt			1,194				988
Total interest expense			32,202				20,480
Net interest income			55,470				43,191
Provision for credit losses			(357	)			(817	)
Net interest income after provision for loan			55,827				44,008
Non-interest income:
Wealth management revenues			5,322				5,514
Insurance commissions			9,213				8,480
Service charges			2,956				2,203
Net securities gains/(losses)			0				(46	)
Mortgage banking revenues			706				150
ATM/debit card revenue			4,055				3,083
Other			2,226				3,095
Total non-interest income			24,478				22,479
Non-interest expense:
Salaries and employee benefits			30,448				26,071
Net occupancy and equipment expense			7,560				6,005
Net other real estate owned (income) expense			(21	)			133
FDIC insurance			869				463
Amortization of intangible assets			3,497				1,522
Stationary and supplies			391				292
Legal and professional expense			2,449				1,690
ATM/debit card expense			1,191				1,223
Marketing and donations			862				654
Other			6,116				3,524
Total non-interest expense			53,362				41,577
Income before income taxes			26,943				24,910
Income taxes			6,440				5,730
Net income		$	20,503			$	19,180
Per Share Information
Basic earnings per common share		$	0.86			$	0.94
Diluted earnings per common share			0.86				0.93
Weighted average shares outstanding			23,872,731				20,492,254
Diluted weighted average shares outstanding			23,960,335				20,563,972

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
		For the Quarter Ended
		March 31,				December 31,			September 30,			June 30,				March 31,
			2024				2023			2023			2023				2023
Interest income:
Interest and fees on loans		$	77,823			$	78,676		$	69,143		$	58,368			$	56,236
Interest on investment securities			7,405				8,515			9,284			7,193				7,127
Interest on federal funds sold & other deposits			2,444				2,736			2,011			569				308
Total interest income			87,672				89,927			80,438			66,130				63,671
Interest expense:
Interest on deposits			26,096				25,900			22,047			16,580				12,767
Interest on securities sold under agreements to repurchase			2,056				1,754			1,625			1,723				1,463
Interest on other borrowings			2,314				3,073			4,749			4,084				4,883
Interest on jr. subordinated debentures			542				545			545			390				379
Interest on subordinated debt			1,194				1,193			1,029			986				988
Total interest expense			32,202				32,465			29,995			23,763				20,480
Net interest income			55,470				57,462			50,443			42,367				43,191
Provision for credit losses			(357	)			552			5,911			458				(817	)
Net interest income after provision for loan			55,827				56,910			44,532			41,909				44,008
Non-interest income:
Wealth management revenues			5,322				4,998			4,940			5,341				5,514
Insurance commissions			9,213				5,398			5,199			5,737				8,480
Service charges			2,956				3,298			2,994			2,386				2,203
Securities gains, net			0				46			3,389			(6	)			(46	)
Mortgage banking revenues			706				954			846			332				150
ATM/debit card revenue			4,055				4,233			3,766			3,265				3,083
Other			2,226				2,841			1,919			2,431				3,095
Total non-interest income			24,478				21,768			23,053			19,486				22,479
Non-interest expense:
Salaries and employee benefits			30,448				29,925			25,422			23,544				26,071
Net occupancy and equipment expense			7,560				7,977			6,929			6,035				6,005
Net other real estate owned (income) expense			(21	)			800			902			27				133
FDIC insurance			869				1,015			785			1,076				463
Amortization of intangible assets			3,497				3,560			2,568			1,477				1,522
Stationary and supplies			391				404			335			315				292
Legal and professional expense			2,449				2,065			1,844			1,780				1,690
ATM/debit card expense			1,191				1,332			1,751			1,016				1,223
Marketing and donations			862				679			764			908				654
Other			6,116				9,268			5,796			3,864				3,524
Total non-interest expense			53,362				57,025			47,096			40,042				41,577
Income before income taxes			26,943				21,653			20,489			21,353				24,910
Income taxes			6,440				3,582			5,372			4,786				5,730
Net income		$	20,503			$	18,071		$	15,117		$	16,567			$	19,180
Per Share Information
Basic earnings per common share		$	0.86			$	0.76		$	0.68		$	0.81			$	0.94
Diluted earnings per common share			0.86				0.76			0.68			0.80				0.93
Weighted average shares outstanding			23,872,731				23,837,853			22,220,438			20,528,717				20,492,254
Diluted weighted average shares outstanding			23,960,335				23,921,758			22,319,334			20,628,239				20,563,972

		FIRST MID BANCSHARES, INC.
		Consolidated Financial Highlights and Ratios
		(Dollars in thousands, except per share data)
		(Unaudited)
		As of and for the Quarter Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
			2024				2023				2023				2023				2023
Loan Portfolio
Construction and land development		$	186,851			$	205,077			$	189,206			$	151,574			$	159,157
Farm real estate loans			388,941				391,132				399,834				392,220				401,957
1-4 Family residential properties			518,641				542,469				531,699				418,932				424,545
Multifamily residential properties			312,758				319,129				327,067				303,482				301,808
Commercial real estate			2,396,092				2,384,704				2,392,834				2,056,529				2,003,647
Loans secured by real estate			3,803,283				3,842,511				3,840,640				3,322,737				3,291,114
Agricultural operating loans			213,217				196,272				179,447				148,318				146,847
Commercial and industrial loans			1,227,906				1,266,159				1,242,653				1,094,522				1,078,021
Consumer loans			79,569				91,014				99,542				80,241				88,430
All other loans			175,320				184,609				177,783				167,598				156,219
Total loans			5,499,295				5,580,565				5,540,065				4,813,416				4,760,631
Deposit Portfolio
Non-interest bearing demand deposits		$	1,448,299			$	1,398,234			$	1,389,022			$	1,171,047			$	1,262,181
Interest bearing demand deposits			1,974,857				1,837,296				1,940,162				1,477,765				1,419,791
Savings deposits			704,777				710,586				734,377				602,523				639,691
Money Market			1,107,177				1,129,950				1,161,957				923,259				878,452
Time deposits			1,007,826				1,047,593				1,120,806				1,044,991				830,663
Total deposits			6,242,936				6,123,659				6,346,324				5,219,585				5,030,778
Asset Quality
Non-performing loans		$	20,064			$	20,128			$	21,269			$	18,637			$	15,163
Non-performing assets			21,471				21,292				23,565				22,615				19,225
Net charge-offs (recoveries)			381				118				181				(38	)			53
Allowance for credit losses to non-performing loans			338.60	%			341.19	%			320.85	%			315.07	%			383.98	%
Allowance for credit losses to total loans outstanding			1.24	%			1.23	%			1.23	%			1.22	%			1.22	%
Nonperforming loans to total loans			0.36	%			0.36	%			0.38	%			0.39	%			0.32	%
Nonperforming assets to total assets			0.28	%			0.28	%			0.30	%			0.34	%			0.29	%
Special Mention loans			65,693				74,050				73,732				40,687				47,022
Substandard and Doubtful loans			29,296				28,945				30,575				28,255				29,931
Common Share Data
Common shares outstanding			23,888,929				23,827,137				23,830,038				20,528,192				20,519,717
Book value per common share		$	33.40			$	33.29			$	30.97			$	32.18			$	32.26
Tangible book value per common share (1)			22.49				22.20				19.73				23.48				24.05
Tangible book value per common share excluding other comprehensive income at period end (1)			28.67				27.93				27.24				30.87				30.77
Market price of stock			32.68				34.66				26.56				24.14				27.22
Key Performance Ratios and Metrics
End of period earning assets		$	6,923,742			$	6,780,160			$	7,007,282			$	6,023,553			$	5,995,674
Average earning assets			6,884,855				6,948,309				6,593,781				6,049,626				6,052,264
Average rate on average earning assets (tax equivalent)			5.16	%			5.18	%			4.89	%			4.43	%			4.32	%
Average rate on cost of funds			1.91	%			1.85	%			1.83	%			1.59	%			1.38	%
Net interest margin (tax equivalent) (1)			3.25	%			3.33	%			3.06	%			2.84	%			2.94	%
Return on average assets			1.07	%			0.93	%			0.90	%			0.99	%			1.15	%
Adjusted return on average assets (1)			1.17	%			1.16	%			0.94	%			1.03	%			1.18	%
Return on average common equity			10.37	%			9.76	%			8.70	%			10.07	%			12.11	%
Adjusted return on average common equity (1)			11.28	%			12.11	%			9.82	%			10.42	%			11.92	%
Efficiency ratio (tax equivalent) (1)			59.09	%			58.91	%			58.60	%			60.37	%			59.01	%
Full-time equivalent employees			1,188				1,187				1,224				995				988
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 March 31, 2024
	QTD Average							Average
	Balance				Interest			Rate
INTEREST EARNING ASSETS
Interest bearing deposits	$	173,365			$	2,407		5.58	%
Federal funds sold		1,094				17		6.25	%
Certificates of deposits investments		1,545				20		5.21	%
Investment Securities:
Taxable (total less municipals)		904,451				5,470		2.42	%
Tax-exempt (Municipals)		280,215				2,450		3.50	%
Loans (net of unearned income)		5,524,185				77,924		5.67	%
Total interest earning assets		6,884,855				88,288		5.16	%
NONEARNING ASSETS
Cash and due from banks		102,922
Premises and equipment		101,530
Other nonearning assets		624,205
Allowance for loan losses		(69,059	)
Total assets	$	7,644,453
INTEREST BEARING LIABILITIES
Demand deposits	$	3,036,837			$	16,612		2.20	%
Savings deposits		707,849				178		0.10	%
Time deposits		1,028,045				9,306		3.64	%
Total interest bearing deposits		4,772,731				26,096		2.20	%
Repurchase agreements		264,587				2,056		3.13	%
FHLB advances		258,554				2,314		3.60	%
Federal funds purchased		-				-		0.00	%
Subordinated debt		106,791				1,194		4.50	%
Jr. subordinated debentures		24,084				542		9.05	%
Other debt		-				-		0.00	%
Total borrowings		654,016				6,106		3.75	%
Total interest bearing liabilities		5,426,747				32,202		2.39	%
NONINTEREST BEARING LIABILITIES
Demand deposits		1,367,798			Average cost of funds			1.91	%
Other liabilities		59,056
Stockholders' equity		790,852
Total liabilities & stockholders' equity	$	7,644,453
Net Interest Earnings / Spread					$	56,086		2.77	%
Impact of Non-Interest Bearing Funds								0.48	%
Tax effected yield on interest earning assets								3.25	%

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, unaudited)
		As of and for the Quarter Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
			2024				2023				2023				2023				2023
Net interest income as reported		$	55,470			$	57,462			$	50,443			$	42,367			$	43,191
Net interest income, (tax equivalent)			56,086				58,255				51,212				43,109				43,947
Average earning assets			6,884,855				6,948,309				6,593,781				6,049,626				6,052,264
Net interest margin (tax equivalent)			3.25	%			3.33	%			3.06	%			2.84	%			2.94	%
Common stockholder's equity		$	797,952			$	793,204			$	737,948			$	660,687			$	661,865
Goodwill and intangibles, net			260,699				264,231				267,793				178,615				168,373
Common shares outstanding			23,889				23,827				23,830				20,528				20,520
Tangible Book Value per common share		$	22.49			$	22.20			$	19.73			$	23.48			$	24.05
Accumulated other comprehensive loss (AOCI)			(147,667	)			(136,427	)			(178,903	)			(151,566	)			(137,901	)
Adjusted tangible book value per common share		$	28.67			$	27.93			$	27.24			$	30.87			$	30.77

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)
		As of and for the Quarter Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
			2024				2023				2023				2023				2023
Adjusted earnings Reconciliation
Net Income - GAAP		$	20,503			$	18,071			$	15,117			$	16,567			$	19,180
Adjustments (post-tax): (1)
Acquisition ACL on non-PCD assets in provision expense			-				-				2,985				-				-
Nonrecurring severance expense			-				-				-				-				416
Net (gain)/loss on securities sales			-				(36	)			(2,677	)			-				-
Integration and acquisition expenses			1,804				4,385				1,653				589				135
Total non-recurring adjustments (non-GAAP)		$	1,804			$	4,348			$	1,962			$	589			$	551
Adjusted earnings - non-GAAP		$	22,307			$	22,419			$	17,079			$	17,156			$	19,731
Adjusted diluted earnings per share (non-GAAP)		$	0.93			$	0.94			$	0.77			$	0.83			$	0.96
Adjusted return on average assets - non-GAAP			1.17	%			1.16	%			0.94	%			1.03	%			1.18	%
Adjusted return on average common equity - non-GAAP			11.28	%			12.11	%			9.82	%			10.42	%			11.92	%
Efficiency Ratio Reconciliation
Noninterest expense - GAAP		$	53,362			$	57,025			$	47,096			$	40,042			$	41,577
Other real estate owned property income (expense)			21				(800	)			(902	)			(27	)			(133	)
Amortization of intangibles			(3,497	)			(3,560	)			(2,568	)			(1,477	)			(1,522	)
Nonrecurring severance expense			-				-				-				-				(527	)
Integration and acquisition expenses			(2,283	)			(5,550	)			(2,093	)			(745	)			(171	)
Adjusted noninterest expense (non-GAAP)		$	47,603			$	47,115			$	41,533			$	37,793			$	39,224
Net interest income -GAAP		$	55,470			$	57,462			$	50,443			$	42,367			$	43,192
Effect of tax-exempt income (1)			616				793				769				742				755
Adjusted net interest income (non-GAAP)		$	56,086			$	58,255			$	51,212			$	43,109			$	43,947
Noninterest income - GAAP		$	24,478			$	21,768			$	23,053			$	19,486			$	22,479
Net (gain)/loss on securities sales			0				(46	)			(3,389	)			6				46
Adjusted noninterest income (non-GAAP)		$	24,478			$	21,722			$	19,664			$	19,492			$	22,525
Adjusted total revenue (non-GAAP)		$	80,564			$	79,977			$	70,876			$	62,601			$	66,472
Efficiency ratio (non-GAAP)			59.09	%			58.91	%			58.60	%			60.37	%			59.01	%
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.