First Mid Bancshares, Inc. · NASDAQ:FMBH
First Mid Bancshares — Merger or Acquisition (September 2020)
17 slides from First Mid Bancshares's merger presentation, Sep 28, 2020
Slide 1: Acquisition of LINCO Bancshares, Inc.
Acquisition of LINCO Bancshares, Inc. September 28, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements Forward Looking Statements This document may contain certain forward - looking statements about First Mid Bancshares, Inc. (“First Mid”) and LINCO Bancshares, Inc., a Missouri corporation (“LINCO”), such as discussions of First Mid’s and LINCO’s pricing and fee trends, cre
Slide 3: Transaction Highlights
Transaction Highlights Creates a $ 5 . 3 billion (excluding PPP loans) Midwest Community Bank with with deep community ties matching First Mid’s culture and like - minded commitment to customers, communities, and shareholders Accelerates growth in the St. Louis metro market consistent with our long
Slide 4: LINCO Bancshares, Inc. Company Overview
LINCO Bancshares, Inc. Company Overview • $ 1 . 2 Billion in assets bank chartered in 1888 • Headquartered in Columbia, Missouri • 14 Branch locations with half situated around the St . Louis market, 2 in Columbia, MO 3 in Jefferson City, MO and 1 in Grapevine, TX • Loan production office in Indiana
Slide 5: Transaction Overview & Assumptions
• First Mid shareholder approval is not needed; LINCO shareholders to approve shortly after announcement • Anticipated closing in Q1 2021 with conversion likely during Q2 2021 • Subject to customary regulatory approvals Transaction Overview & Assumptions • Transaction value (1) of $144.9 million • C
Slide 6: Pro Forma Franchise
Pro Forma Franchise 1) Holding Company level data as of June 30, 2020 Combined Company to operate 77 locations throughout Illinois, Missouri, Indiana and Texas Locations 63 14 77 Assets $4,458M $1,184M $5,642M Loans $3,205M $911M $4,116M Deposits $3,386M $908M $4,294M FMBH (1) LINCO (1) Pro Forma •
Slide 7: Pro Forma Deposit Composition
Pro Forma Deposit Composition Source: S&P Global Market Intelligence; Regulatory holding company data shown for First Mid; Bank level regulatory data shown for Providence as of June 30, 2020 (1) Bank level regulatory data shown for the quarter ended June 30, 2020 Pro forma institution moves into top
Slide 8: Pro Forma Loan Composition
Pro Forma Loan Composition As of June 30, 2020 First Mid Providence Pro Forma Composition Composition C ompo s ition Loan Type ($000) % of Total Loan Type ($000) % of Total Loan Type ($000) % of Total CRE 1 , 123 , 54 0 35 . 1 % CRE 227 , 06 9 24 . 6 % CRE 1,350,609 32 . 7 % C&I 811 , 16 9 25 . 3 %
Slide 9: Extensive Due Diligence
Extensive Due Diligence First Mid’s Senior Management team completed multiple diligence sessions with LINCO over the last year First Mid is an experienced and disciplined acquirer of community banks with a long history and successful track record of both growth and earnings In - depth diligence proc
Slide 10: Thorough Review of Loan Portfolio Risks Amidst Ongoing Pandemic
Thorough Review of Loan Portfolio Risks Amidst Ongoing Pandemic At Risk Industry Exposure (excludes PPP Loans) Significant loan portfolio analysis and stress testing was completed during diligence by First Mid Senior Management to evaluate vulnerable sectors affected by the global pandemic Re t a i
Slide 11: COVID-19 Relief & Support
COVID - 19 Relief & Support NOTE: Deferral data as of August 31, 2020; Pro forma total loans reflect combined company data as of June 30, 2020 During the pandemic First Mid and LINCO provided payment deferrals to more than 1,000 customers totaling $627 million at the peak. As of August 31 st over 60
Slide 12: Estimated Pro Forma Allowance Reserve
Estimated Pro Forma Allowance Reserve Significant CECL Allowance for Credit Loss Coverage FMBH LINCO Pro Forma $2,946,000 $861,000 $3,807,000 Loan Balances (1) 1 Excludes PPP loans of approx. $259 million for FMBH and $62 million for LINCO, as of 6/30/2020 ($ in 000’s) FMBH Allowance for Credit Loss
Slide 13: Experienced Growth Through Recent M&A Transactions
Experienced Growth Through Recent M&A Transactions St i f el B a nk T r a n sacti o n Date Closed 8 / 1 4 / 1 5 Closed 9 / 0 8 / 1 6 Closed 5 / 0 1 / 1 8 Closed 1 1 / 1 5 / 18 Closed 4 / 2 1 / 2 0 An n ou nc ed 9/28/20 T r a n sacti o n Value $16 Million $89 Million $72 Million $70 Million - - - $14
Slide 14: Acquisition of Loan Book and Team
Acquisition of Loan Book and Team Deepened St. Louis Metro market presence with acquisition of $183 million in loans, $60 million in deposits and a talented lending team On April 21 st , 2020 O v e r view Highlights of the Deal Completed a strategic acquisition of a talented team of lenders and thei
Slide 15: Addressing COVID-19
Addressing COVID - 19 Management teams at First Mid and LINCO were proactive from the onset of pandemic, shifting branch traffic to drive - thru, by appointment and online services to maintain customer service while providing social distancing measures to the benefit of our employees and customers.
Slide 16: COVID-19 Relief & Support Update
First Mid and LINCO are committed to providing the support needed throughout the communities we serve during the pandemic. COVID - 19 Relief & Support Update Total Loans Funded Fee Income Generated Small Business Customers Assisted Paycheck Protection Program (“PPP”) Totals Beginning in April, First
Slide 17: Achievements through Performance
Achievements through Performance:
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