Attached files
| file | filename |
|---|---|
| 8-K/A - 8-K/A - FIRST MID BANCSHARES, INC. | form8ka-081415.htm |
| EX-23.1 - EXHIBIT 23.1 - FIRST MID BANCSHARES, INC. | ex231_081415a.htm |
| EX-2.2 - EXHIBIT 2.2 - FIRST MID BANCSHARES, INC. | ex22_081415a.htm |
| EX-99.1 - EXHIBIT 99.1 - FIRST MID BANCSHARES, INC. | ex991_081415a.htm |
Exhibit 99.2
(b) Pro Forma Financial Information.
The following pro forma financial information is the result of combining the Company's reported historical financial information with the ONB Branches historical financial information and making adjustments to the combined information to reflect events that have occurred or that are assumed to have occurred because of the acquisition. The pro forma information should be read in conjunction with the Company’s previously reported historical financial statements and the ONB Branches financial statements included in this filing.
The pro forma condensed consolidating statements do not assume or include any possible cost savings or revenue opportunities that may be realized as a result of the combination. This condensed consolidating pro forma information is provided for illustrative purposes only and is not necessarily indicative of the results of operations or financial position which would have resulted if the combination had been effected at the beginning of the periods presented or as of the date indicated or the financial position or results of operation which we might obtain in the future.
The following pro forma condensed combined financial information presents the financial position of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the acquisition taken place at the dates identified (in thousands):
(Unaudited) | ONB | Pro Forma | |||||||||||
As of June 30, 2015 | First Mid | Branches | Transactions | Note | Pro Forma | ||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 46,334 | $ | 4,919 | (1,047 | ) | G | $ | 50,206 | ||||
Investment securities | 465,896 | — | — | 465,896 | |||||||||
Loans, net | 1,045,172 | 158,651 | (3,377 | ) | A | 1,200,446 | |||||||
Interdivisional investment funds | — | 320,402 | (15,892 | ) | B | 304,510 | |||||||
Interest receivable | 6,044 | 462 | — | 6,506 | |||||||||
Premises and equipment | 27,208 | 4,292 | (125 | ) | C | 31,375 | |||||||
Goodwill | 25,753 | — | 14,015 | D | 39,768 | ||||||||
Intangible assets | 1,533 | — | 6,216 | E | 7,749 | ||||||||
Other assets | 16,180 | 954 | — | 17,134 | |||||||||
Total assets | $ | 1,634,120 | $ | 489,680 | $ | (210 | ) | $ | 2,123,590 | ||||
Liabilities | |||||||||||||
Deposits | $ | 1,266,199 | $ | 484,233 | $ | 837 | F | $ | 1,751,269 | ||||
Repurchase agreements with customers | 117,468 | 4,892 | — | 122,360 | |||||||||
Interest payable | 302 | 122 | — | 424 | |||||||||
Borrowings and other debt | 45,620 | — | — | 45,620 | |||||||||
Other liabilities | 6,636 | 433 | (366 | ) | G | 6,703 | |||||||
Total liabilities | 1,436,225 | 489,680 | 471 | 1,926,376 | |||||||||
Stockholders’ equity | 197,895 | — | (681 | ) | G | 197,214 | |||||||
Total liabilities and stockholders’ equity | $ | 1,634,120 | $ | 489,680 | $ | (210 | ) | $ | 2,123,590 | ||||
(Unaudited) | ONB | Pro Forma | |||||||||||
As of December 31, 2014 | First Mid | Branches | Transactions | Note | Pro Forma | ||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 51,730 | $ | 4,385 | (1,325 | ) | $ | 54,790 | |||||
Investment securities | 431,506 | — | — | G | 431,506 | ||||||||
Loans, net | 1,048,724 | 157,300 | (3,377 | ) | 1,202,647 | ||||||||
Interdivisional investment funds | — | 341,333 | (15,892 | ) | A | 325,441 | |||||||
Interest receivable | 6,828 | 512 | — | B | 7,340 | ||||||||
Premises and equipment | 27,352 | 4,117 | (125 | ) | 31,344 | ||||||||
Goodwill | 25,753 | — | 14,015 | C | 39,768 | ||||||||
Intangible assets | 1,844 | — | 6,216 | D | 8,060 | ||||||||
Other assets | 13,366 | 1,063 | — | E | 14,429 | ||||||||
Total assets | $ | 1,607,103 | $ | 508,710 | $ | (488 | ) | $ | 2,115,325 | ||||
Liabilities | |||||||||||||
Deposits | $ | 1,272,077 | $ | 500,690 | $ | 837 | $ | 1,773,604 | |||||
Repurchase agreements with customers | 121,869 | 7,590 | — | F | 129,459 | ||||||||
Interest payable | 285 | 120 | — | 405 | |||||||||
Borrowings and other debt | 40,620 | — | — | 40,620 | |||||||||
Other liabilities | 7,336 | 310 | (464 | ) | 7,182 | ||||||||
Total liabilities | 1,442,187 | 508,710 | 373 | G | 1,951,270 | ||||||||
Stockholders’ equity | 164,916 | — | (861 | ) | 164,055 | ||||||||
Total liabilities and stockholders’ equity | $ | 1,607,103 | $ | 508,710 | $ | (488 | ) | G | $ | 2,115,325 | |||
Notes:
A | The difference between the fair value and acquired value of the acquired loans on the date of the acquisition. This amount is being accreted to interest income over the remaining term of the loans. |
B | Core deposit premium paid (3.6% of core deposits). |
C | The difference between the fair value and acquired value of the premises and equipment acquired on the date of the acquisition. |
D | Goodwill resulting from acquisition. |
E | Core deposit intangible asset. This amount is being amortized to other expense on a accelerated basis over the estimated life of ten years. |
F | The difference between the fair value and acquired value of the acquired time deposits on the date of the acquisition. This amount is being amortized to interest expense over the remaining term of the time deposits. |
G | Non-recurring, incremental costs directly related to the transaction not yet reflected in the historical financial statements. |
The following pro forma condensed combined financial information presents the results of operations of the Company, including the effects of the purchase accounting adjustments, had the acquisition taken place at the beginning of each period (in thousands):
(Unaudited) | ONB | Pro Forma | |||||||||||
For the year ended December 31, 2014 | First Mid | Branches | Transactions | Note | Pro Forma | ||||||||
Net interest income | $ | 51,482 | $ | 7,620 | $ | 2,841 | A, B, C | $ | 61,943 | ||||
Provision for loan losses | 629 | — | 116 | D | 745 | ||||||||
Non-interest income | 18,369 | 7,522 | — | 25,891 | |||||||||
Non-interest expense | 44,507 | 8,811 | 3,057 | E, F, G | 56,375 | ||||||||
Income before taxes | 24,715 | 6,331 | (332 | ) | 30,714 | ||||||||
Income tax expense (benefit) | 9,254 | 2,216 | (116 | ) | H | 11,354 | |||||||
Net income (loss) | $ | 15,461 | $ | 4,115 | $ | (216 | ) | $ | 19,360 | ||||
Dividends on preferred shares | 4,152 | — | — | 4,152 | |||||||||
Net income available to common stockholders | $ | 11,309 | $ | 4,115 | $ | (216 | ) | $ | 15,208 | ||||
Earnings per share: | |||||||||||||
Basic | $ | 1.88 | $ | 2.53 | |||||||||
Diluted | $ | 1.85 | $ | 2.31 | |||||||||
Basic weighted average shares | 6,002,766 | 6,002,766 | |||||||||||
Diluted weighted average shares | 8,371,687 | 8,371,687 | |||||||||||
(Unaudited) | ONB | Pro Forma | |||||||||||
For the six months ended June 30, 2015 | First Mid | Branches | Transactions | Note | Pro Forma | ||||||||
Net interest income | $ | 25,956 | $ | 3,938 | $ | 780 | A, B, C | $ | 30,674 | ||||
Provision for loan losses | 408 | — | 58 | D | 466 | ||||||||
Non-interest income | 9,336 | 3,603 | — | 12,939 | |||||||||
Non-interest expense | 22,034 | 4,271 | 1,013 | E, F, G | 27,318 | ||||||||
Income before taxes | 12,850 | 3,270 | (291 | ) | 15,829 | ||||||||
Income tax expense (benefit) | 4,655 | 1,145 | (102 | ) | H | 5,698 | |||||||
Net income (loss) | $ | 8,195 | $ | 2,125 | $ | (189 | ) | $ | 10,131 | ||||
Dividends on preferred shares | 1,100 | — | — | 1,100 | |||||||||
Net income available to common stockholders | $ | 7,095 | $ | 2,125 | $ | (189 | ) | $ | 9,031 | ||||
Earnings per share: | |||||||||||||
Basic | $ | 1.00 | $ | 1.27 | |||||||||
Diluted | $ | 0.97 | $ | 1.20 | |||||||||
Basic weighted average shares | 7,112,309 | 7,112,309 | |||||||||||
Diluted weighted average shares | 8,477,102 | 8,477,102 | |||||||||||
(Unaudited) | ONB | Pro Forma | |||||||||||
For the six months ended June 30, 2014 | First Mid | Branches | Transactions | Note | Pro Forma | ||||||||
Net interest income | $ | 25,359 | $ | 3,801 | $ | 683 | A, B, C | $ | 29,843 | ||||
Provision for loan losses | 451 | — | 58 | D | 509 | ||||||||
Non-interest income | 9,471 | 3,761 | — | 13,232 | |||||||||
Non-interest expense | 22,174 | 4,407 | 1,291 | E, F, G | 27,872 | ||||||||
Income before taxes | 12,205 | 3,155 | (666 | ) | 14,694 | ||||||||
Income tax expense (benefit) | 4,569 | 1,104 | (233 | ) | H | 5,440 | |||||||
Net income (loss) | $ | 7,636 | $ | 2,051 | $ | (433 | ) | $ | 9,254 | ||||
Dividends on preferred shares | 2,208 | — | — | 2,208 | |||||||||
Net income available to common stockholders | $ | 5,428 | $ | 2,051 | $ | (433 | ) | $ | 7,046 | ||||
Earnings per share: | |||||||||||||
Basic | $ | 0.92 | $ | 1.20 | |||||||||
Diluted | $ | 0.91 | $ | 1.10 | |||||||||
Basic weighted average shares | 5,882,122 | 5,882,122 | |||||||||||
Diluted weighted average shares | 8,386,302 | 8,386,302 | |||||||||||
Notes:
A | To reflect the accretion of the discount on loans acquired. |
B | To reflect the amortization of the premium on time deposits acquired. |
C | To reflect the decrease in interest income on interdivisional investments funds as a result of deposit premium paid. |
D | To reflect additional provision for loan losses for the loans acquired. |
E | To reflect amortization of the core deposit intangible asset. |
F | To reflect additional depreciation from adjustment to market value of premises and equipment acquired. |
G | To reflect additional operational expenses. |
H | Tax effect of pro forma adjustments at an estimated tax rate of 35%. |