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First Mid Bancshares, Inc. Announces First Quarter 2024 Results
来源: Nasdaq GlobeNewswire / 24 4月 2024 16:30:01 America/New_York
MATTOON, Ill., April 24, 2024 (GLOBE NEWSWIRE) -- 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 Margin
Net 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.Deposits
Total 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 Income
Noninterest 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 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 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 Frank
SVP, Shareholder Relations
217-258-5522
afrank@firstmid.comMatt Smith
Chief Financial Officer
217-258-1528
msmith@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%.