Business Combinations (Tables)

12 Months Ended

Dec. 31, 2023

Business Acquisition [Line Items]

Summary of Purchased Credit Deteriorated (PCD) Loans

During 2023 and 2022, the Company acquired loans from Blackhawk and Delta, respectively, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. The carrying amount of those loans is as follows (in thousands):

	Blackhawk Acquisition			Delta Acquisition
Purchase price of purchase credit deteriorated loans at acquisition	$	115,250		$	18,796
Allowance for credit losses at acquisition		(3,791	)		(863	)
Non-credit discount/(premium) at acquisition		(5,476	)		(523	)
Fair value of purchased credit deteriorated loans at acquisition	$	105,983		$	17,410

Blackhawk Bancorp, Inc

Business Acquisition [Line Items]

Estimated Fair Values of Assets Acquired and Liabilities Assumed

A preliminary summary of the fair value of assets received and liabilities assumed are as follows:

(In thousands)
Assets
Cash and due from banks	$	55,600
Loans held for sale		3,222
Loans, net		722,866
Investments-available for sale		377,969
Short-term investments		869
FHLB stock		1,737
Premises and equipment		12,366
Accrued interest receivable		4,029
Prepaid expenses		1,182
Other assets		20,703
Core deposit intangible		34,590
Income tax receivable		2,077
Deferred tax asset		22,152
Mortgage servicing rights		7,070
Total assets acquired	$	1,266,432
Liabilities
Deposits	$	1,194,972
Subordinated and jr. subordinated debt		16,448
Accrued interest payable		1,091
Accrued and other liabilities		10,508
Total liabilities assumed		1,223,019
Net assets acquired	$	43,413
Total consideration	$	93,510
Goodwill	$	50,097

Summary of Consideration Transferred

The following table presents a summary of consideration transferred:

(In thousands, except shares)
Common stock issued (3,290,222 shares)	$	93,508
Cash consideration		2
Purchase price	$	93,510

Summary of Purchased Credit Deteriorated (PCD) Loans

The following table provides a summary of PCD loans purchased as part of the Blackhawk acquisition as of the acquisition date:

(In thousands)
Unpaid principal balance	$	115,250
PCD allowance for credit losses at acquisition		(3,791	)
Non-credit discount on acquired loans		(5,476	)
Fair value of PCD loans	$	105,983

Unaudited Pro Forma Condensed Combined Financial Information

The following unaudited pro forma condensed combined financial information presents the results of operations of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the Blackhawk Merger taken place at the beginning of the period (dollars in thousands, except per share data):

	Twelve months ended December 31,
	2023		2022
Net interest income	$	229,317	$	239,748
Provision for credit losses		7,320		3,856
Non-interest income		95,660		89,575
Non-interest expense		223,354		219,646
Income before income taxes		94,303		105,821
Income tax expense		20,744		21,297
Net income available to common stockholders	$	73,559	$	84,524
Earnings per share
Basic	$	3.38	$	3.60
Diluted	$	3.36	$	3.59
Basic weighted average shares outstanding		21,780,217		24,459,299
Diluted weighted average shares outstanding		21,868,788		23,533,857

Delta Bancshare Company

Business Acquisition [Line Items]

Estimated Fair Values of Assets Acquired and Liabilities Assumed

	Acquired Book						As Recorded by
	Value			Adjustments			First Mid Bank
Assets
Cash and due from banks	$	82,473		$	—		$	82,473
Investment securities		184,959			(2,836	)		182,123
Loans		426,433			(7,924	)		418,509
Allowance for credit losses		(5,388	)		4,525			(863	)
Premises and equipment		5,522			3,508			9,030
Goodwill		14			28,544			28,558
Core deposit intangible		—			5,920			5,920
Bank owned life insurance		15,822			—			15,822
Right of use asset		—			717			717
Other assets		9,061			(1,287	)		7,774
Total assets acquired	$	718,896		$	31,167		$	750,063
Liabilities and stockholders' equity
Deposits	$	558,619		$	1,759		$	560,378
Securities sold under agreements to repurchase		35,523			—			35,523
FHLB advances		45,000			75			45,075
Lease liability		—			717			717
Other liabilities		2,209			(1,161	)		1,048
Total liabilities assumed		641,351			1,390			642,741
Net assets acquired	$	77,545		$	29,777		$	107,322
Consideration paid
Cash							$	15,150
Common stock								92,172
Total consideration paid							$	107,322

Unaudited Pro Forma Condensed Combined Financial Information

The following unaudited pro forma condensed combined financial information presents the results of operations of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the Delta Merger taken place at the beginning of the period (dollars in thousands, except per share data):

	Twelve months ended December 31,
	2022		2021
Net interest income	$	187,075	$	147,387
Provision for credit losses		4,806		14,679
Non-interest income		74,799		53,371
Non-interest expense		165,062		132,086
Income before income taxes		92,006		53,993
Income tax expense		18,508		12,321
Net income available to common stockholders	$	73,498	$	41,672
Earnings per share
Basic	$	3.64	$	2.07
Diluted	$	3.63	$	2.07
Basic weighted average shares outstanding		20,169,077		20,111,889
Diluted weighted average shares outstanding		20,243,635		20,164,909