First Mid Bancshares, Inc. Announces Second Quarter 2026 Results

MATTOON, Ill., July 23, 2026 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended June 30, 2026.

Highlights

• Net income of $27.8 million, or $1.04 diluted EPS
• Adjusted quarterly net income* of $33.4 million, or $1.26 diluted EPS
• Successfully completed the bank merger of Two Rivers Bank & Trust (“Two Rivers”) into First Mid Bank & Trust (“First Mid”)
• Total loans of $6.93 billion, quarterly decrease of $9.9 million
• Total deposits of $7.57 billion, quarterly increase of $23.9 million
• Tangible book value per share* increased 3.7% during the quarter to $31.15
• Net interest margin, tax equivalent* expanded to 3.79%, quarterly increase of 1 basis point
• Quarterly adjusted return on average assets* of 1.45%
• Repurchased 21,872 shares and the Board of Directors declared a $0.01 increase in the quarterly dividend to $0.26 per share
  
  

“First Mid delivered strong results for the period, highlighted by a record high quarter of earnings and a successful integration with Two Rivers. Despite the nonrecurring expenses tied to the integration, we grew our tangible book value at a solid pace and continued to deploy capital to build long-term shareholder value through opportunistic share repurchases, increasing our dividend, and paying off higher cost subordinated debt. The employees and customers of Two Rivers have embraced us like no other and I am really excited about our future,” said Matthew Smith, Chief Executive Officer.

Net Interest Income
Net interest income for the second quarter of 2026 was $79.7 million, an increase of $8.9 million compared to the first quarter of 2026. The increase was primarily driven by the inclusion of two additional months of Two Rivers’ results as compared to the first quarter, repricing benefits from retention of maturing loans at higher rates, and prudent deployment and management of cash coming off the investment portfolio and on the balance sheet. Accretion income for the second quarter was $3.8 million, an increase of $0.4 million compared to the prior quarter, primarily due to the additional months from Two Rivers.

In comparison to the second quarter of 2025, net interest income increased $15.8 million, or 24.7%. Interest income was higher by $21.5 million, inclusive of a $0.4 million increase in accretion income. Interest expense was higher by $5.7 million compared to the second quarter of last year primarily from higher overall deposit balances including the addition of Two Rivers.

Net Interest Margin
Net interest margin, on a tax equivalent basis*, was 3.79% for the second quarter of 2026 representing an increase of 1 basis point over the prior quarter. The yield on earning assets improved by 9 basis points for the second quarter while the average cost of funds increased 8 basis points with the additional months from Two Rivers and overall deposit pricing competition.

Loan Portfolio
Total loans ended the quarter at $6.93 billion, representing a decrease of $9.9 million for the quarter on a combination of elevated payoffs and disciplined pricing decisions. The decrease for the quarter was primarily in multifamily residential properties and agricultural operating loans. The decline in the multifamily portfolio primarily occurred from collateral sales and subsequent payoffs. Both declines occurred in legacy markets and were not Two Rivers related. The Iowa loan portfolio balances have remained steady.

Asset Quality
Asset quality for the quarter was consistent with the prior period as the allowance for credit losses (“ACL”) ended the period at $87.0 million and the ACL to total loans ratio was 1.25%, which was in line with the first quarter of 2026. In addition to the overall ACL, an unearned discount of $40.9 million remains at quarter end. Provision expenses were recorded in the amount of $1.5 million and net charge-offs totaled $1.4 million during the quarter.

Overall criticized assets declined by $9.7 million during the quarter. Special mention loans decreased by $40.5 million to $139.2 million. Substandard loans increased by $30.8 million to $139.9 million. The migration from special mention to substandard was primarily from downgrades in the agricultural segment. This continues to be driven by strained cash flows; however borrower balance sheets remain strong, with no significant losses anticipated from this segment. At the end of the second quarter, non-performing loans totaled $41.3 million, a decrease of $2.8 million during the quarter. The ratio of non-performing loans to total loans was 0.60%, which was a decrease from 0.63% in the prior quarter. The ACL to non-performing loans ratio was 211%, an increase from the prior quarter primarily from the decline in non-performing loans in the quarter. The ratio of non-performing assets to total assets decreased from 0.53% in the prior quarter to 0.51% in the current period.

Deposits
Total deposits ended the quarter at $7.57 billion, which represented an increase of $23.9 million from the prior quarter. Money market accounts had the largest growth compared to the prior quarter with a $66.4 million increase. The average cost of interest-bearing deposits for the quarter was 1.98%, an increase of 8 basis points from the end of the previous quarter, partially due to two additional months of Two Rivers as well as continued deposit pricing competition.

Non-Interest Income
Non-interest income for the second quarter of 2026 was $28.8 million compared to $26.4 million in the prior quarter and $23.6 million in the second quarter of 2025.

Wealth management revenues for the quarter were $8.2 million. Revenues increased $1.8 million compared to the first quarter which included two additional months of Two Rivers wealth management revenues. Overall Ag Services revenue was $1.9 million in the period compared to $2.5 million in the prior quarter and $2.3 million in the second quarter of 2025. Insurance commissions for the quarter were $8.9 million, which was an increase of $1.0 million compared to the second quarter of 2025. Second quarter insurance commissions were $1.9 million lower than the first quarter due to the seasonality of contingent revenues.

Non-Interest Expenses
Non-interest expense for the second quarter of 2026 totaled $70.6 million compared to $60.7 million in the first quarter of 2026. During the quarter, acquisition-related expenses related to Two Rivers totaled $7.1 million. In addition to one-time merger-related expenses, the Company’s annual merit and promotional cycle occurred in April leading to an increase in salaries and benefits expense.

The Company’s efficiency ratio*, as adjusted in the non-GAAP reconciliation table herein, for the second quarter of 2026 was 54.39% compared to 55.86% in the prior quarter and 58.09% for the same period last year.

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

Total capital to risk-weighted assets15.41%Tier 1 capital to risk-weighted assets13.87%Common equity tier 1 capital to risk-weighted assets13.40%Leverage ratio10.92%  

Tangible book value per share* increased $1.11, or 3.7% during the second quarter of 2026. The increase was driven by earnings and a decrease of $3.9 million in the unrealized loss position in the Company’s investment portfolio. During the quarter, the Company paid off $27.5 million of subordinated debt with $7.5 million in cash on hand and $20.0 million from a new term note financed at a lower rate.

The Company’s Board of Directors approved an increase of $0.01 to its quarterly dividend to $0.26 payable on September 1st, 2026 to the shareholders of record as of August 18th, 2026.

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 $9.2 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, Wisconsin, and Iowa 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 160 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,” “Tangible Book Value per Common Share,” “Adjusted Tangible Book Value per Common Share,” “Adjusted Return on Average Assets,” and “Adjusted Return on Average Common Equity”. Refer to non-GAAP reconciliation tables herein for reconciliation to comparable GAAP measures. 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 Bancshares, Inc. (the “Company”), such as discussions of the completed merger of Two Rivers Bank & Trust (“Two Rivers”) into First Mid Bank & Trust (“First Mid”), the Company’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses, capital management, and planned schedules. The Company 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 the Company, 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 the Company and 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 the Company’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 the Company and First Mid; and accounting principles, policies and guidelines.

Additional information concerning the Company, including additional factors and risks that could materially affect the Company’s financial results, is included in the Company’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, the Company does 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 Frank
SVP, Director of Investor Relations
217-258-5522
[email protected]

Jordan Read
Chief Financial and Risk Officer
217-258-3528
[email protected]

– Tables Follow –

      FIRST MID BANCSHARES, INC.Condensed Consolidated Balance Sheets(In thousands, unaudited) As of  June 30, December 31, June 30,  2026   2025   2025       Assets     Cash and cash equivalents$303,853  $254,920  $190,017 Investment securities 1,290,563   1,085,499   1,085,701 Loans (including loans held for sale) 6,934,342   6,011,374   5,766,999 Less allowance for credit losses (86,989)  (74,875)  (71,160)Net loans 6,847,353   5,936,499   5,695,839 Premises and equipment, net 101,879   90,782   97,740 Goodwill and intangibles, net 273,456   253,016   255,547 Bank Owned Life Insurance 187,134   174,915   172,333 Other assets 205,729   171,027   183,298 Total assets$9,209,967  $7,966,658  $7,680,475       Liabilities and Stockholders' Equity     Deposits:     Non-interest bearing$1,486,592  $1,392,534  $1,321,446 Interest bearing 6,084,952   5,002,739   4,868,753 Total deposits 7,571,544   6,395,273   6,190,199 Repurchase agreements with customers 196,991   196,716   193,941 Other borrowings 209,567   270,000   245,000 Junior subordinated debentures 32,705   24,454   24,384 Subordinated debt 34,077   60,008   79,590 Other liabilities 63,339   61,515   53,221 Total liabilities 8,108,223   7,007,966   6,786,335       Total stockholders' equity 1,101,744   958,692   894,140 Total liabilities and stockholders' equity$9,209,967  $7,966,658  $7,680,475 

        FIRST MID BANCSHARES, INC.Condensed Consolidated Statements of Income(In thousands, except per share data and share amounts, unaudited)         Three Months Ended Six Months Ended June 30, June 30, 2026 2025 2026 2025
Interest income:       Interest and fees on loans$102,668 $84,784 $193,654 $164,702 Interest on investment securities 9,375  6,895  17,260  13,672 Interest on federal funds sold & other deposits 2,841  1,722  4,590  2,586 Total interest income 114,884  93,401  215,504  180,960 Interest expense:       Interest on deposits 30,328  24,964  55,102  48,686 Interest on securities sold under agreements to repurchase 1,030  1,218  2,055  2,398 Interest on other borrowings 2,579  2,043  4,977  3,874 Interest on subordinated debt 710  849  1,880  1,798 Interest on jr. subordinated debentures 578  464  1,046  932 Total interest expense 35,225  29,538  65,060  57,688 Net interest income 79,659  63,863  150,444  123,272 Provision for credit losses 1,545  2,567  4,143  4,219 Net interest income after provision for credit losses 78,114  61,296  146,301  119,053 Non-interest income:       Wealth management revenues 8,206  5,394  14,581  11,205 Insurance commissions 8,870  7,840  19,677  17,765 Service charges 3,459  2,995  6,539  5,896 Net securities gains/(losses) 63  0  83  (181)Mortgage banking revenues 814  1,070  1,535  1,781 ATM/debit card revenue 4,799  4,636  8,934  8,282 Other 2,622  1,658  3,925  3,709 Total non-interest income 28,833  23,593  55,274  48,457 Non-interest expense:       Salaries and employee benefits 38,460  33,623  73,476  65,371 Net occupancy and equipment expense 10,892  7,869  20,718  16,348 Net other real estate owned expense 218  75  430  176 FDIC insurance 1,063  873  2,003  1,722 Amortization of intangible assets 3,878  3,121  7,179  6,352 Stationery and supplies 311  367  613  798 Legal and professional expense 2,760  2,757  5,460  5,833 ATM/debit card expense 2,218  1,144  4,025  2,975 Marketing and donations 818  777  1,642  1,629 Other 10,009  4,156  15,806  8,030 Total non-interest expense 70,627  54,762  131,352  109,234 Income before income taxes 36,320  30,127  70,223  58,276 Income taxes 8,531  6,689  16,107  12,667 Net income$27,789 $23,438 $54,116 $45,609         Per Share Information       Basic earnings per common share$1.05 $0.98 $2.11 $1.91 Diluted earnings per common share 1.04  0.98  2.10  1.90         Weighted average shares outstanding 26,458,805  23,867,592  25,622,671  23,863,229 Diluted weighted average shares outstanding 26,604,784  23,988,974  25,754,019  23,974,183 

           FIRST MID BANCSHARES, INC.Condensed Consolidated Statements of Income(In thousands, except per share data and share amounts, unaudited)             For the Quarter Ended  June 30, March 31, December 31, September 30, June 30,  2026 2026 2025 2025 2025Interest income:          Interest and fees on loans $102,668 $90,986 $86,972  $87,020  $84,784Interest on investment securities  9,375  7,885  7,552   7,659   6,895Interest on federal funds sold & other deposits  2,841  1,749  1,371   1,456   1,722Total interest income  114,884  100,620  95,895   96,135   93,401Interest expense:          Interest on deposits  30,328  24,774  24,462   25,179   24,964Interest on securities sold under agreements to repurchase  1,030  1,025  987   1,105   1,218Interest on other borrowings  2,579  2,398  2,341   2,186   2,043Interest on subordinated debt  710  1,170  1,142   850   849Interest on jr. subordinated debentures  578  468  433   452   464Total interest expense  35,225  29,835  29,365   29,772   29,538Net interest income  79,659  70,785  66,530   66,363   63,863Provision for credit losses  1,545  2,598  2,349   3,353   2,567Net interest income after provision for credit losses  78,114  68,187  64,181   63,010   61,296Non-interest income:          Wealth management revenues  8,206  6,375  6,591   5,145   5,394Insurance commissions  8,870  10,807  7,441   7,089   7,840Service charges  3,459  3,080  3,161   3,240   2,995Net securities gains/(losses)  63  20  (398)  (1,930)  0Mortgage banking revenues  814  721  624   1,255   1,070ATM/debit card revenue  4,799  4,135  3,947   4,182   4,636Other  2,622  1,303  319   3,928   1,658Total non-interest income  28,833  26,441  21,685   22,909   23,593Non-interest expense:          Salaries and employee benefits  38,460  35,016  35,674   33,570   33,623Net occupancy and equipment expense  10,892  9,826  11,035   9,196   7,869Net other real estate owned expense  218  212  146   217   75FDIC insurance  1,063  940  880   874   873Amortization of intangible assets  3,878  3,301  2,963   3,128   3,121Stationery and supplies  311  302  561   411   367Legal and professional expense  2,760  2,700  2,459   2,454   2,757ATM/debit card expense  2,218  1,807  1,918   2,052   1,144Marketing and donations  818  824  760   959   777Other  10,009  5,797  (529)  4,285   4,156Total non-interest expense  70,627  60,725  55,867   57,146   54,762Income before income taxes  36,320  33,903  29,999   28,773   30,127Income taxes  8,531  7,576  6,321   6,311   6,689Net income $27,789 $26,327 $23,678  $22,462  $23,438           Per Share Information          Basic earnings per common share $1.05 $1.06 $0.99  $0.94  $0.98Diluted earnings per common share  1.04  1.06  0.99   0.94   0.98           Weighted average shares outstanding  26,458,805  24,777,247  23,891,160   23,876,020   23,867,592Diluted weighted average shares outstanding  26,604,784  24,893,802  24,000,061   23,997,198   23,988,974

           FIRST MID BANCSHARES, INC.Consolidated Financial Highlights and Ratios(Dollars in thousands, except per share data)(Unaudited)  As of and for the Quarter Ended  June 30, March 31, December 31, September 30, June 30,   2026   2026   2025   2025   2025            Loan Portfolio           Construction and land development $361,748  $316,723  $360,687  $336,795  $298,812 Farm real estate loans  422,537   400,783   373,408   367,473   381,517 1-4 Family residential properties  733,869   734,053   489,854   495,537   495,787 Multifamily residential properties  390,847   456,185   339,482   330,549   360,604 Commercial real estate  2,923,176   2,948,024   2,564,670   2,432,180   2,393,640 Loans secured by real estate  4,832,177   4,855,768   4,128,101   3,962,534   3,930,360 Agricultural operating loans  356,814   370,931   308,275   311,594   306,374 Commercial and industrial loans  1,502,951   1,499,079   1,381,598   1,349,863   1,324,653 Consumer loans  35,478   39,597   31,918   36,317   41,604 All other loans  206,922   178,901   161,482   163,730   164,008 Total loans  6,934,342   6,944,276   6,011,374   5,824,038   5,766,999            Deposit Portfolio           Non-interest bearing demand deposits $1,486,592  $1,489,747  $1,392,534  $1,450,244  $1,321,446 Interest bearing demand deposits  2,435,498   2,394,069   2,095,370   1,901,516   1,947,744 Savings deposits  711,999   781,451   639,412   617,311   632,925 Money Market  1,373,685   1,307,240   1,138,464   1,184,964   1,206,140 Time deposits  1,563,770   1,575,132   1,129,493   1,135,508   1,081,944 Total deposits  7,571,544   7,547,639   6,395,273   6,289,543   6,190,199            Asset Quality          Non-performing loans $41,293  $44,074  $31,948  $22,199  $21,895 Non-performing assets  47,098   49,621   34,807   23,670   23,572 Net charge-offs (recoveries)  1,370   1,500   399   1,588   1,458 Allowance for credit losses to non-performing loans  210.66%  196.98%  234.37%  328.51%  325.00%Allowance for credit losses to total loans outstanding  1.25%  1.25%  1.25%  1.25%  1.23%Nonperforming loans to total loans  0.60%  0.63%  0.53%  0.38%  0.38%Nonperforming assets to total assets  0.51%  0.53%  0.44%  0.30%  0.31%Special Mention loans  139,154   179,648   120,510   61,195   81,815 Substandard and Doubtful loans  139,902   109,127   79,956   75,309   39,031            Common Share Data          Common shares outstanding  26,594,524   26,609,307   23,986,299   23,996,833   23,988,845 Book value per common share $41.43  $40.46  $39.97  $38.85  $37.27 Tangible book value per share (1)  31.15   30.04   29.42   28.21   26.62 Tangible book value per share excluding other comprehensive income at period end (1)  35.09   34.12   33.64   32.79   32.07 Market price of stock  48.09   41.19   39.00   37.88   37.49            Key Performance Ratios and Metrics          End of period earning assets $8,496,204  $8,574,933  $7,325,978  $7,101,811  $6,924,934 Average earning assets  8,520,559   7,670,723   7,168,176   7,014,675   6,975,783 Average rate on average earning assets (tax equivalent)  5.45%  5.36%  5.35%  5.48%  5.41%Average rate on cost of funds  1.75%  1.67%  1.71%  1.75%  1.75%Net interest margin (tax equivalent) (1)  3.79%  3.78%  3.73%  3.80%  3.72%Return on average assets  1.20%  1.26%  1.21%  1.17%  1.20%Adjusted return on average assets (1)  1.45%  1.37%  1.30%  1.21%  1.23%Return on average common equity  10.19%  10.45%  10.01%  9.95%  10.52%Adjusted return on average common equity (1)  12.25%  11.29%  10.71%  10.34%  10.80%Efficiency ratio (tax equivalent) (1)  54.39%  55.86%  57.55%  58.75%  58.09%Full-time equivalent employees  1,316   1,335   1,170   1,178   1,190                       1 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.

 FIRST MID BANCSHARES, INC.Net Interest Margin(Dollars in thousands, unaudited)   For the Quarter Ended June 30, 2026 QTD Average   Average Balance Interest RateINTEREST EARNING ASSETS     Interest bearing deposits$328,363  $2,801 3.42%Federal funds sold 793   6 3.03%Certificates of deposits investments 3,350   34 4.07%Investment Securities 1,247,888   9,868 3.16%Loans (net of unearned income) 6,940,165   102,976 5.95%      Total interest earning assets 8,520,559   115,685 5.45%      NONEARNING ASSETS     Other nonearning assets 793,920     Allowance for loan losses (87,449)          Total assets$9,227,030           INTEREST BEARING LIABILITIES     Demand deposits$3,855,881  $17,237 1.79%Savings deposits 757,972   464 0.25%Time deposits 1,543,651   12,628 3.28%Total interest bearing deposits 6,157,504   30,329 1.98%Repurchase agreements 200,906   1,030 2.06%FHLB advances 242,163   2,115 3.50%Subordinated debt 36,897   710 7.72%Jr. subordinated debentures 34,045   578 6.81%Other debt 37,149   464 5.01%Total borrowings 551,161   4,897 3.56%Total interest bearing liabilities 6,708,665   35,226 2.11%      NONINTEREST BEARING LIABILITIES     Demand deposits 1,365,854  Avg Cost of Funds1.75%Other liabilities 62,134     Stockholders' equity 1,090,377           Total liabilities & stockholders' equity$9,227,030           Net Interest Earnings / Spread  $80,459 3.34%      Tax effected yield on interest earning assets   3.79%      Net interest margin, tax equivalent is a non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.

           FIRST MID BANCSHARES, INC.Reconciliation of Non-GAAP Financial Measures(Dollars in thousands, except per share data, unaudited)             As of and for the Quarter Ended  June 30, March 31, December 31, September 30,June 30,   2026   2026   2025   2025   2025            Net interest income as reported $79,659  $70,785  $66,530  $66,363  $63,863 Net interest income, (tax equivalent)  80,459   71,581   67,314   67,143   64,634 Average earning assets  8,520,559   7,670,723   7,168,176   7,014,675   6,975,783 Net interest margin (tax equivalent)  3.79%  3.78%  3.73%  3.80%  3.72%                      Common stockholder's equity $1,101,744  $1,076,626  $958,692  $932,179  $894,140 Goodwill and intangibles, net  273,456   277,347   253,016   255,217   255,547 Common shares outstanding  26,595   26,609   23,986   23,997   23,989 Tangible Book Value per common share $31.15  $30.04  $29.42  $28.21  $26.62 Accumulated other comprehensive loss (AOCI) (104,824)  (108,708)  (101,301)  (110,012)  (130,710)Adjusted tangible book value per common share$35.09  $34.12  $33.64  $32.79  $32.07 

           FIRST MID BANCSHARES, INC.Reconciliation of Non-GAAP Financial Measures(Dollars in thousands, except per share data, unaudited)             As of and for the Quarter Ended  June 30, March 31, December 31, September 30,June 30,   2026   2026   2025   2025   2025 Adjusted earnings Reconciliation         Net Income - GAAP $27,789  $26,327  $23,678  $22,462  $23,438 Adjustments (post-tax) (1)         Net (gain)/loss on securities sales (50)  (16)  314   1,525   - Net loss on subordinated debt repayment 74   -   237   -   - Net loss on other investments -   422   349   -   - Technology project expenses -   25   761   360   246 Net gain on real estate -   -   (443)  (1,033)  - Severance expense  -   -   -   15   - Integration and acquisition expenses 5,586   1,690   434   13   3 Total adjustments (non-GAAP)$5,610  $2,122  $1,652  $880  $249            Adjusted earnings - non-GAAP$33,399  $28,449  $25,330  $23,342  $23,687 Adjusted diluted earnings per share (non-GAAP)$1.26  $1.14  $1.06  $0.97  $0.99 Adjusted return on average assets (non-GAAP) 1.45%  1.37%  1.30%  1.21%  1.23%Adjusted return on average common equity (non-GAAP) 12.25%  11.29%  10.71%  10.34%  10.80%                      Efficiency Ratio Reconciliation         Noninterest expense - GAAP$70,627  $60,725  $55,867  $57,146  $54,762 Other real estate owned property income (expense) (218)  (212)  (76)  (217)  (75)Amortization of intangibles (3,878)  (3,301)  (2,963)  (3,128)  (3,121)Gain/(loss) on real estate -   -   560   (95)  - Severance expense  -   -   -   (19)  - Technology project expense -   (32)  (963)  (456)  (311)Integration and acquisition expenses (7,071)  (2,139)  (549)  (17)  (4)Adjusted noninterest expense (non-GAAP)$59,460  $55,041  $51,876  $53,214  $51,251            Net interest income -GAAP$79,659  $70,785  $66,530  $66,363  $63,863 Effect of tax-exempt income (1) 800   796   784   780   771 Adjusted net interest income (non-GAAP)$80,459  $71,581  $67,314  $67,143  $64,634            Noninterest income - GAAP$28,833  $26,441  $21,685  $22,909  $23,593 Gain on real estate sales -   -   -   (1,403)  - Net (gain)/loss on securities sales (63)  (20)  398   1,930   - Net loss on subordinated debt repayment 94   -   300   -   - Net loss on other investments -   534   442   -   - Adjusted noninterest income (non-GAAP)$28,864  $26,955  $22,825  $23,436  $23,593            Adjusted total revenue (non-GAAP)$109,323  $98,536  $90,139  $90,579  $88,227            Efficiency ratio (non-GAAP) 54.39%  55.86%  57.55%  58.75%  58.09%           (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.