First Mid Bancshares, Inc. Announces Third Quarter 2025 Results
MATTOON, Ill., Oct. 30, 2025 (GLOBE NEWSWIRE) — First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended September 30, 2025.
Highlights
- Quarterly net income of $22.5 million, or $0.94 diluted EPS
- Adjusted quarterly net income* of $23.3 million, or $0.97 diluted EPS
- Net interest margin tax equivalent* expands to 3.80%, quarterly increase of 8 basis points, helping drive the sixth consecutive quarter of growth in net interest income
- Total loans of $5.82 billion, quarterly increase of $57.0 million, or 1.0%
- Total deposits of $6.29 billion, quarterly increase of $99.3 million, or 1.6%
- Tangible book value per share* increased 6.0% during the quarter to $28.21
- Announced pending acquisition of Two Rivers Financial Group, Inc.
- Completion of core operating system conversion
- Completion of branch optimization project in which 8 full-service branches were closed
- Announced pending acquisition of Ray Farm Management Services, Inc.
- Board of Directors declares regular dividend of $0.25 per share
“The third quarter reflected solid financial and operating performance led by further expansion of our net interest margin while delivering growth in both loans and deposits. We executed on our strategic plan to drive greater efficiency by completing the conversion of our core operating system in late October and closing 8 full-service branches across our footprint during the quarter. The branch closures align with the continued migration in customer preferences to a more digital first mindset. The core system conversion will not only provide cost savings, but will also provide process efficiencies that will set us up well for future growth” said Matthew Smith, President.
“I am excited to announce the pending acquisition of Two Rivers Financial Group, Inc. as we continue to diversify our footprint and enter the state of Iowa. We are honored to have been chosen as their strategic partner. Two Rivers has a long history of providing value to their customers through their banking, trust, and wealth management services. We completed extensive due diligence and solidified our view that our cultures are closely aligned with a focus on community banking” said Joseph Dively, Chairman and CEO.
Net Interest Income
Net interest income for the third quarter of 2025 was $66.4 million, an increase of $2.5 million, or 3.9% compared to the second quarter of 2025. The increase was primarily the result of higher yields on earning assets while maintaining funding costs. Accretion income for the third quarter was $3.2 million, a decrease of $0.2 million compared to the prior quarter.
In comparison to the third quarter of 2024, net interest income increased $8.8 million, or 15.3%. Interest income was higher by $5.0 million, inclusive of a decrease in accretion income of $0.5 million compared to the third quarter last year. Interest expense was lower by $3.9 million compared to the third quarter of last year.
Net Interest Margin
Net interest margin, on a tax equivalent basis*, was 3.80% for the third quarter of 2025 representing an increase of 8 basis points over the prior quarter, driven by an increase to earning asset yields and maintaining funding costs.
Loan Portfolio
Total loans ended the quarter at $5.82 billion, representing an increase of $57.0 million, or 1.0%, from the prior quarter. The increase was well diversified and included construction and land development, commercial real estate, agriculture operating lines, and commercial and industrial loans. Farm real estate, multi-family residential properties, and consumer loans saw modest declines in the quarter.
In comparison to the third quarter of last year, loan balances increased $209.4 million, or 3.7%. The largest increases were in construction and land development, agriculture operating lines, and commercial and industrial loans.
Asset Quality
Asset quality remained strong for the quarter. The allowance for credit losses (“ACL”) ended the period at $72.9 million and the ACL to total loans ratio was 1.25%. In addition to the ACL, an unearned discount of $26.0 million remains at quarter end. Provision expense was recorded in the amount of $3.4 million during the quarter with growth in the loan portfolio and net charge-offs of $1.6 million. At the end of the third quarter, the ratio of non-performing loans to total loans was 0.38%, which was in line with the prior quarter. The ACL to non-performing loans ratio was 328.5%, a slight increase from 325.0% in the second quarter. The ratio of nonperforming assets to total assets decreased from 0.31% in the prior quarter to 0.30%. The loan portfolio had some migration from special mention to substandard with nonperforming assets remaining stable. Special mention loans decreased by $20.6 million to $61.2 million and substandard loans increased $36.3 million to $75.3 million, driven primarily by downgrades of three relationships in varying industries and geographies.
Deposits
Total deposits ended the quarter at $6.29 billion, which represented an increase of $99.3 million, or 1.6%, from the prior quarter. Non-interest-bearing demand deposits grew $128.8 million or 9.7% from the second quarter due to seasonal cash flow fluctuations from a few large depositors as well as continued business development efforts. Time deposits also saw an increase during the quarter with decreases in interest bearing demand deposits, savings deposits, and money market accounts.
Non-Interest Income
Non-interest income for the third quarter of 2025 was $22.9 million compared to $23.6 million in the prior quarter. Gains on the sale of real estate from our branch optimization efforts totaled $1.3 million, net of losses realized from leasehold improvement charge-offs associated with leased locations. The sale of low yielding bonds produced a loss of $1.9 million. The bonds sold provided proceeds of $35.7 million that was redeployed at higher rates. In comparison to the third quarter of 2024, non-interest income decreased $0.1 million, primarily driven by the loss on the sale of securities offset by an increase of insurance commissions.
Wealth management revenues for the quarter were $5.1 million, which was a decrease of $0.2 million from the prior quarter and $0.7 million from the third quarter of 2024. This was primarily driven by lower commodity prices. Overall Ag Services revenue was $1.8 million in the period compared to $2.3 million in the prior quarter and $1.8 million in the third quarter of 2024. First Mid Ag Services has entered into an agreement to acquire Ray Farm Management Services, Inc., based in Princeton Illinois. The transaction is expected to close in the fourth quarter of 2025 and add approximately 9,000 acres under management.
Insurance commissions for the quarter were $7.1 million, which was a decrease of $0.8 million compared to the second quarter due to seasonality. Insurance commissions increased $1.1 million compared to the third quarter of 2024 from both organic growth and strategic acquisitions.
Non-Interest Expenses
Non-interest expense for the third quarter of 2025 totaled $57.1 million compared to $54.8 million in the prior quarter. Total pre-tax, one-time costs for the quarter were $2.5 million. Net of one-time gains, pre-tax, one-time costs for the quarter totaled $1.1 million. Debit card expenses were higher due to the service provider incentive recognized in the second quarter. Occupancy and equipment expenses also increased primarily from one-time costs associated with branch closures and technology enhancements.
In comparison to the third quarter of 2024, non-interest expenses increased $3.2 million. Salaries and benefits expenses increased $2.0 million due to annual compensation increases along with incentive for over performance compared to plan in 2025.
The Company’s efficiency ratio*, as adjusted in the non-GAAP reconciliation table herein, for the third quarter of 2025 was 58.75% compared to 58.09% in the prior quarter and 61.33% 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 | 15.99% |
| Tier 1 capital to risk-weighted assets | 13.53% |
| Common equity tier 1 capital to risk-weighted assets | 13.13% |
| Leverage ratio | 10.92% |
Tangible book value per share* increased $1.59, or 6.0% during the third quarter of 2025. The increase was driven by both earnings and a decrease of $20.7 million related to the unrealized loss position in the Company’s investment portfolio.
The Company’s Board of Directors approved its regular quarterly dividend of $0.25 payable on Monday December 1st, 2025 to the shareholders of record as of Friday November 14th, 2025.
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 $7.8 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 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 Earnings,” “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 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 and Two Rivers, such as discussions of First Mid’s and Two Rivers’ pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid and Two Rivers intend 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 and Two Rivers 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, the possibility that any of the anticipated benefits of the proposed transactions between First Mid and Two Rivers will not be realized within the expected time period; the risk that integration of the operations of Two Rivers with First Mid will be materially delayed or will be more costly or difficult than expected; the inability to complete the proposed transactions due to the failure to satisfy conditions to completion of the proposed transactions, including failure to obtain the required regulatory, shareholder and other approvals; the failure of the proposed transactions to close for any other reason; the effect of the announcement of the proposed transactions on customer relationships and operating results; the possibility that the proposed transactions may be more expensive to complete than anticipated, including as a result of unexpected factors or events; changes in interest rates; general economic conditions and those in the market areas of First Mid and Two Rivers; 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 and Two Rivers’ 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 and Two Rivers; accounting principles, policies and guidelines; and the ability to complete the proposed transactions or any of the other foregoing risks. 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, First Mid and Two Rivers do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.
Important Information about the Merger and Additional Information
First Mid will file a registration statement on Form S-4 with the SEC in connection with the proposed transaction. The registration statement will include a proxy statement of Two Rivers that also constitutes a prospectus of First Mid, which will be sent to the shareholders of Two Rivers. Two Rivers shareholders are urged to read the proxy statement/prospectus when it becomes available, which will contain important information about First Mid, Two Rivers and the proposed transaction, including detailed risk factors. The proxy statement/prospectus and other documents which will be filed by First Mid with the SEC will be available free of charge at the SEC’s website, www.sec.gov. These documents also can be obtained free of charge by accessing First Mid’s website at www.firstmid.com under the tab “Investor Relations” and then under “SEC Filings.” Alternatively, when available, these documents can be obtained free of charge from First Mid upon written request to First Mid Bancshares, PO Box 499, Mattoon, IL 61938, Attention: Investor Relations; or from Two Rivers upon written request to Two Rivers Financial Group, Inc., 222 North Main St., Burlington, IA 52601-5214, Attention: Andrea Gerst, CFO. A final proxy statement/prospectus will be mailed to the shareholders of Two Rivers.
Participants in the Solicitation
First Mid and Two Rivers, and certain of their respective directors, executive officers, and other members of management and employees, are participants in the solicitation of proxies in connection with the proposed transactions. Information about the directors and executive officers of First Mid is set forth in the proxy statement for its 2025 annual meeting of stockholders, which was filed with the SEC on March 18, 2025. These documents can be obtained free of charge from the sources provided above. Investors may obtain additional information regarding the interests of such participants in the proposed transactions by reading the proxy statement/prospectus for such proposed transactions when it becomes available.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there by any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Investor Contact:
Austin Frank
SVP, Shareholder Relations
217-258-5522
afrank@firstmid.com
Jordan Read
Chief Financial and Risk Officer
217-258-3528
jread@firstmid.com
– Tables Follow –
| FIRST MID BANCSHARES, INC. | ||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||
| (In thousands, unaudited) | ||||||||||||
| As of | ||||||||||||
| September 30, | December 31, | September 30, | ||||||||||
| 2025 | 2024 | 2024 | ||||||||||
| Assets | ||||||||||||
| Cash and cash equivalents | $ | 277,087 | $ | 121,216 | $ | 164,191 | ||||||
| Investment securities | 1,098,093 | 1,073,510 | 1,125,774 | |||||||||
| Loans (including loans held for sale) | 5,824,038 | 5,672,462 | 5,614,591 | |||||||||
| Less allowance for credit losses | (72,925 | ) | (70,182 | ) | (68,774 | ) | ||||||
| Net loans | 5,751,113 | 5,602,280 | 5,545,817 | |||||||||
| Premises and equipment, net | 94,673 | 100,234 | 101,464 | |||||||||
| Goodwill and intangibles, net | 255,217 | 261,906 | 265,139 | |||||||||
| Bank Owned Life Insurance | 173,588 | 170,854 | 169,635 | |||||||||
| Other assets | 180,597 | 189,734 | 190,469 | |||||||||
| Total assets | $ | 7,830,368 | $ | 7,519,734 | $ | 7,562,489 | ||||||
| Liabilities and Stockholders’ Equity | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest bearing | $ | 1,450,244 | $ | 1,329,155 | $ | 1,387,290 | ||||||
| Interest bearing | 4,839,299 | 4,727,941 | 4,701,544 | |||||||||
| Total deposits | 6,289,543 | 6,057,096 | 6,088,834 | |||||||||
| Repurchase agreements with customers | 200,506 | 204,122 | 204,343 | |||||||||
| Other borrowings | 245,000 | 242,520 | 238,712 | |||||||||
| Junior subordinated debentures | 24,419 | 24,280 | 24,224 | |||||||||
| Subordinated debt | 79,645 | 87,472 | 87,373 | |||||||||
| Other liabilities | 59,076 | 57,853 | 60,506 | |||||||||
| Total liabilities | 6,898,189 | 6,673,343 | 6,703,992 | |||||||||
| Total stockholders’ equity | 932,179 | 846,391 | 858,497 | |||||||||
| Total liabilities and stockholders’ equity | $ | 7,830,368 | $ | 7,519,734 | $ | 7,562,489 | ||||||
| FIRST MID BANCSHARES, INC. | |||||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||||
| (In thousands, except per share data, unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, | September 30, | ||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Interest income: | |||||||||||||||||
| Interest and fees on loans | $ | 87,020 | $ | 81,775 | $ | 251,722 | $ | 239,158 | |||||||||
| Interest on investment securities | 7,659 | 7,036 | 21,331 | 21,846 | |||||||||||||
| Interest on federal funds sold & other deposits | 1,456 | 2,371 | 4,042 | 6,533 | |||||||||||||
| Total interest income | 96,135 | 91,182 | 277,095 | 267,537 | |||||||||||||
| Interest expense: | |||||||||||||||||
| Interest on deposits | 25,179 | 28,341 | 73,865 | 80,775 | |||||||||||||
| Interest on securities sold under agreements to repurchase | 1,105 | 1,444 | 3,503 | 5,115 | |||||||||||||
| Interest on other borrowings | 2,186 | 2,195 | 6,060 | 6,757 | |||||||||||||
| Interest on jr. subordinated debentures | 452 | 567 | 1,384 | 1,646 | |||||||||||||
| Interest on subordinated debt | 850 | 1,092 | 2,648 | 3,466 | |||||||||||||
| Total interest expense | 29,772 | 33,639 | 87,460 | 97,759 | |||||||||||||
| Net interest income | 66,363 | 57,543 | 189,635 | 169,778 | |||||||||||||
| Provision for credit losses | 3,353 | 1,266 | 7,572 | 1,992 | |||||||||||||
| Net interest income after provision for credit losses | 63,010 | 56,277 | 182,063 | 167,786 | |||||||||||||
| Non-interest income: | |||||||||||||||||
| Wealth management revenues | 5,145 | 5,816 | 16,350 | 16,543 | |||||||||||||
| Insurance commissions | 7,089 | 6,003 | 24,854 | 21,747 | |||||||||||||
| Service charges | 3,240 | 3,121 | 9,136 | 9,304 | |||||||||||||
| Net securities losses | (1,930 | ) | (277 | ) | (2,111 | ) | (433 | ) | |||||||||
| Mortgage banking revenues | 1,255 | 1,109 | 3,036 | 2,853 | |||||||||||||
| ATM/debit card revenue | 4,182 | 4,267 | 12,464 | 12,603 | |||||||||||||
| Other | 3,928 | 2,984 | 7,637 | 7,306 | |||||||||||||
| Total non-interest income | 22,909 | 23,023 | 71,366 | 69,923 | |||||||||||||
| Non-interest expense: | |||||||||||||||||
| Salaries and employee benefits | 33,570 | 31,565 | 98,941 | 92,177 | |||||||||||||
| Net occupancy and equipment expense | 9,196 | 8,055 | 25,544 | 23,122 | |||||||||||||
| Net other real estate owned expense | 217 | 107 | 393 | 171 | |||||||||||||
| FDIC insurance | 874 | 829 | 2,596 | 2,600 | |||||||||||||
| Amortization of intangible assets | 3,128 | 3,405 | 9,480 | 10,242 | |||||||||||||
| Stationery and supplies | 411 | 482 | 1,209 | 1,243 | |||||||||||||
| Legal and professional expense | 2,454 | 2,573 | 8,287 | 7,558 | |||||||||||||
| ATM/debit card expense | 2,052 | 1,869 | 5,027 | 4,341 | |||||||||||||
| Marketing and donations | 959 | 836 | 2,588 | 2,512 | |||||||||||||
| Other | 4,285 | 4,212 | 12,315 | 14,720 | |||||||||||||
| Total non-interest expense | 57,146 | 53,933 | 166,380 | 158,686 | |||||||||||||
| Income before income taxes | 28,773 | 25,367 | 87,049 | 79,023 | |||||||||||||
| Income taxes | 6,311 | 5,885 | 18,978 | 19,293 | |||||||||||||
| Net income | $ | 22,462 | $ | 19,482 | $ | 68,071 | $ | 59,730 | |||||||||
| Per Share Information | |||||||||||||||||
| Basic earnings per common share | $ | 0.94 | $ | 0.81 | $ | 2.85 | $ | 2.50 | |||||||||
| Diluted earnings per common share | 0.94 | 0.81 | 2.84 | 2.49 | |||||||||||||
| Weighted average shares outstanding | 23,876,020 | 23,905,099 | 23,867,537 | 23,891,430 | |||||||||||||
| Diluted weighted average shares outstanding | 23,997,198 | 24,006,647 | 23,981,938 | 23,988,478 | |||||||||||||
| FIRST MID BANCSHARES, INC. | ||||||||||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||||||||||
| (In thousands, except per share data, unaudited) | ||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2025 | 2025 | 2025 | 2024 | 2024 | ||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Interest and fees on loans | $ | 87,020 | $ | 84,784 | $ | 79,918 | $ | 81,288 | $ | 81,775 | ||||||||||
| Interest on investment securities | 7,659 | 6,895 | 6,777 | 6,990 | 7,036 | |||||||||||||||
| Interest on federal funds sold & other deposits | 1,456 | 1,722 | 864 | 1,564 | 2,371 | |||||||||||||||
| Total interest income | 96,135 | 93,401 | 87,559 | 89,842 | 91,182 | |||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Interest on deposits | 25,179 | 24,964 | 23,722 | 26,144 | 28,341 | |||||||||||||||
| Interest on securities sold under agreements to repurchase | 1,105 | 1,218 | 1,180 | 1,333 | 1,444 | |||||||||||||||
| Interest on other borrowings | 2,186 | 2,043 | 1,831 | 1,917 | 2,195 | |||||||||||||||
| Interest on jr. subordinated debentures | 452 | 464 | 468 | 510 | 567 | |||||||||||||||
| Interest on subordinated debt | 850 | 849 | 949 | 988 | 1,092 | |||||||||||||||
| Total interest expense | 29,772 | 29,538 | 28,150 | 30,892 | 33,639 | |||||||||||||||
| Net interest income | 66,363 | 63,863 | 59,409 | 58,950 | 57,543 | |||||||||||||||
| Provision for credit losses | 3,353 | 2,567 | 1,652 | 3,643 | 1,266 | |||||||||||||||
| Net interest income after provision for credit losses | 63,010 | 61,296 | 57,757 | 55,307 | 56,277 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Wealth management revenues | 5,145 | 5,394 | 5,800 | 6,275 | 5,816 | |||||||||||||||
| Insurance commissions | 7,089 | 7,840 | 9,925 | 6,805 | 6,003 | |||||||||||||||
| Service charges | 3,240 | 2,995 | 2,901 | 3,058 | 3,121 | |||||||||||||||
| Net securities losses | (1,930 | ) | 0 | (181 | ) | 0 | (277 | ) | ||||||||||||
| Mortgage banking revenues | 1,255 | 1,070 | 711 | 1,104 | 1,109 | |||||||||||||||
| ATM/debit card revenue | 4,182 | 4,636 | 3,646 | 4,204 | 4,267 | |||||||||||||||
| Other | 3,928 | 1,658 | 2,062 | 4,917 | 2,984 | |||||||||||||||
| Total non-interest income | 22,909 | 23,593 | 24,864 | 26,363 | 23,023 | |||||||||||||||
| Non-interest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 33,570 | 33,623 | 31,748 | 31,957 | 31,565 | |||||||||||||||
| Net occupancy and equipment expense | 9,196 | 7,869 | 8,479 | 7,285 | 8,055 | |||||||||||||||
| Net other real estate owned expense | 217 | 75 | 101 | 240 | 107 | |||||||||||||||
| FDIC insurance | 874 | 873 | 849 | 863 | 829 | |||||||||||||||
| Amortization of intangible assets | 3,128 | 3,121 | 3,231 | 3,314 | 3,405 | |||||||||||||||
| Stationary and supplies | 411 | 367 | 431 | 642 | 482 | |||||||||||||||
| Legal and professional expense | 2,454 | 2,757 | 3,076 | 5,386 | 2,573 | |||||||||||||||
| ATM/debit card expense | 2,052 | 1,144 | 1,831 | 2,043 | 1,869 | |||||||||||||||
| Marketing and donations | 959 | 777 | 852 | 906 | 836 | |||||||||||||||
| Other | 4,285 | 4,156 | 3,874 | 3,661 | 4,212 | |||||||||||||||
| Total non-interest expense | 57,146 | 54,762 | 54,472 | 56,297 | 53,933 | |||||||||||||||
| Income before income taxes | 28,773 | 30,127 | 28,149 | 25,373 | 25,367 | |||||||||||||||
| Income taxes | 6,311 | 6,689 | 5,978 | 6,205 | 5,885 | |||||||||||||||
| Net income | $ | 22,462 | $ | 23,438 | $ | 22,171 | $ | 19,168 | $ | 19,482 | ||||||||||
| Per Share Information | ||||||||||||||||||||
| Basic earnings per common share | $ | 0.94 | $ | 0.98 | $ | 0.93 | $ | 0.80 | $ | 0.81 | ||||||||||
| Diluted earnings per common share | 0.94 | 0.98 | 0.93 | 0.80 | 0.81 | |||||||||||||||
| Weighted average shares outstanding | 23,876,020 | 23,867,592 | 23,858,817 | 23,818,806 | 23,905,099 | |||||||||||||||
| Diluted weighted average shares outstanding | 23,997,198 | 23,988,974 | 23,959,228 | 23,908,340 | 24,006,647 | |||||||||||||||
| FIRST MID BANCSHARES, INC. | ||||||||||||||||||||
| Consolidated Financial Highlights and Ratios | ||||||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| As of and for the Quarter Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2025 | 2025 | 2025 | 2024 | 2024 | ||||||||||||||||
| Loan Portfolio | ||||||||||||||||||||
| Construction and land development | $ | 336,795 | $ | 298,812 | $ | 269,148 | $ | 236,093 | $ | 190,857 | ||||||||||
| Farm real estate loans | 367,473 | 381,517 | 373,413 | 390,760 | 384,620 | |||||||||||||||
| 1-4 Family residential properties | 495,537 | 495,787 | 488,139 | 496,597 | 505,342 | |||||||||||||||
| Multifamily residential properties | 330,549 | 360,604 | 356,858 | 332,644 | 338,167 | |||||||||||||||
| Commercial real estate | 2,432,180 | 2,393,640 | 2,397,985 | 2,417,585 | 2,440,120 | |||||||||||||||
| Loans secured by real estate | 3,962,534 | 3,930,360 | 3,885,543 | 3,873,679 | 3,859,106 | |||||||||||||||
| Agricultural operating loans | 311,594 | 306,374 | 296,811 | 239,671 | 233,414 | |||||||||||||||
| Commercial and industrial loans | 1,349,863 | 1,324,653 | 1,303,712 | 1,335,920 | 1,283,631 | |||||||||||||||
| Consumer loans | 36,317 | 41,604 | 47,220 | 53,960 | 63,222 | |||||||||||||||
| All other loans | 163,730 | 164,008 | 165,572 | 169,232 | 175,218 | |||||||||||||||
| Total loans | 5,824,038 | 5,766,999 | 5,698,858 | 5,672,462 | 5,614,591 | |||||||||||||||
| Deposit Portfolio | ||||||||||||||||||||
| Non-interest bearing demand deposits | $ | 1,450,244 | $ | 1,321,446 | $ | 1,394,590 | $ | 1,329,155 | $ | 1,387,290 | ||||||||||
| Interest bearing demand deposits | 1,901,516 | 1,947,744 | 1,814,427 | 1,907,733 | 1,834,123 | |||||||||||||||
| Savings deposits | 617,311 | 632,925 | 643,289 | 636,427 | 648,582 | |||||||||||||||
| Money Market | 1,184,964 | 1,206,140 | 1,215,420 | 1,196,537 | 1,183,594 | |||||||||||||||
| Time deposits | 1,135,508 | 1,081,944 | 1,062,654 | 987,244 | 1,035,245 | |||||||||||||||
| Total deposits | 6,289,543 | 6,190,199 | 6,130,380 | 6,057,096 | 6,088,834 | |||||||||||||||
| Asset Quality | ||||||||||||||||||||
| Non-performing loans | $ | 22,199 | $ | 21,895 | $ | 26,598 | $ | 29,835 | $ | 18,242 | ||||||||||
| Non-performing assets | 23,670 | 23,572 | 28,703 | 32,030 | 20,076 | |||||||||||||||
| Net charge-offs (recoveries) | 1,588 | 1,458 | 1,783 | 2,235 | 804 | |||||||||||||||
| Allowance for credit losses to non-performing loans | 328.51% | 325.00% | 263.36% | 235.23% | 377.01% | |||||||||||||||
| Allowance for credit losses to total loans outstanding | 1.25% | 1.23% | 1.23% | 1.24% | 1.22% | |||||||||||||||
| Nonperforming loans to total loans | 0.38% | 0.38% | 0.47% | 0.53% | 0.32% | |||||||||||||||
| Nonperforming assets to total assets | 0.30% | 0.31% | 0.38% | 0.43% | 0.27% | |||||||||||||||
| Special Mention loans | 61,195 | 81,815 | 74,019 | 57,848 | 38,151 | |||||||||||||||
| Substandard and Doubtful loans | 75,309 | 39,031 | 33,884 | 35,516 | 29,037 | |||||||||||||||
| Common Share Data | ||||||||||||||||||||
| Common shares outstanding | 23,996,833 | 23,988,845 | 23,981,916 | 23,895,807 | 23,904,051 | |||||||||||||||
| Book value per common share | $ | 38.85 | $ | 37.27 | $ | 36.32 | $ | 35.42 | $ | 35.91 | ||||||||||
| Tangible book value per common share(1) | 28.21 | 26.62 | 25.53 | 24.46 | 24.82 | |||||||||||||||
| Tangible book value per common share excluding other comprehensive income at period end(1) | 32.79 | 32.07 | 31.21 | 30.42 | 29.70 | |||||||||||||||
| Market price of stock | 37.88 | 37.49 | 34.90 | 36.82 | 38.91 | |||||||||||||||
| Key Performance Ratios and Metrics | ||||||||||||||||||||
| End of period earning assets | $ | 7,101,811 | $ | 6,924,934 | $ | 6,844,096 | $ | 6,775,075 | $ | 6,786,458 | ||||||||||
| Average earning assets | 7,014,675 | 6,975,783 | 6,769,858 | 6,884,303 | 6,857,070 | |||||||||||||||
| Average rate on average earning assets (tax equivalent) | 5.48% | 5.41% | 5.29% | 5.24% | 5.35% | |||||||||||||||
| Average rate on cost of funds | 1.75% | 1.75% | 1.74% | 1.83% | 2.00% | |||||||||||||||
| Net interest margin (tax equivalent)(1)(2) | 3.80% | 3.72% | 3.60% | 3.41% | 3.35% | |||||||||||||||
| Return on average assets | 1.17% | 1.20% | 1.19% | 1.01% | 1.03% | |||||||||||||||
| Adjusted return on average assets(1) | 1.21% | 1.23% | 1.23% | 1.10% | 1.05% | |||||||||||||||
| Return on average common equity | 9.95% | 10.52% | 10.35% | 9.04% | 9.40% | |||||||||||||||
| Adjusted return on average common equity(1) | 10.34% | 10.80% | 10.78% | 9.80% | 9.58% | |||||||||||||||
| Efficiency ratio (tax equivalent)(1) | 58.75% | 58.09% | 58.88% | 58.76% | 61.33% | |||||||||||||||
| Full-time equivalent employees | 1,178 | 1,190 | 1,194 | 1,198 | 1,207 | |||||||||||||||
| 1Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure. | ||||||||||||||||||||
| 2During the first quarter 2025, the Company changed the methodology utilized for the calculation of net interest margin to be more consistent with what is typically used by peer banks and research analysts. The calculation now is the annualized net interest income on a tax equivalent basis divided by average interest earning assets. | ||||||||||||||||||||
| FIRST MID BANCSHARES, INC. | |||||||||||
| Net Interest Margin | |||||||||||
| (In thousands, unaudited) | |||||||||||
| For the Quarter Ended September 30, 2025 | |||||||||||
| QTD Average | Average | ||||||||||
| Balance | Interest | Rate | |||||||||
| INTEREST EARNING ASSETS | |||||||||||
| Interest bearing deposits | $ | 123,271 | $ | 1,432 | 4.61 | % | |||||
| Federal funds sold | 76 | 1 | 5.22 | % | |||||||
| Certificates of deposit investments | 2,009 | 23 | 4.54 | % | |||||||
| Investment Securities | 1,130,674 | 8,146 | 2.88 | % | |||||||
| Loans (net of unearned income) | 5,758,645 | 87,311 | 6.02 | % | |||||||
| Total interest earning assets | 7,014,675 | 96,913 | 5.48 | % | |||||||
| NONEARNING ASSETS | |||||||||||
| Other nonearning assets | 769,758 | ||||||||||
| Allowance for loan losses | (72,065 | ) | |||||||||
| Total assets | $ | 7,712,368 | |||||||||
| INTEREST BEARING LIABILITIES | |||||||||||
| Demand deposits | $ | 3,203,911 | $ | 15,983 | 1.98 | % | |||||
| Savings deposits | 625,166 | 180 | 0.11 | % | |||||||
| Time deposits | 1,077,433 | 9,014 | 3.32 | % | |||||||
| Total interest bearing deposits | 4,906,510 | 25,177 | 2.04 | % | |||||||
| Repurchase agreements | 192,187 | 1,105 | 2.28 | % | |||||||
| FHLB advances | 233,043 | 2,181 | 3.71 | % | |||||||
| Federal funds purchased | 46 | 5 | 0.00 | % | |||||||
| Subordinated debt | 79,609 | 850 | 4.24 | % | |||||||
| Jr. subordinated debentures | 24,400 | 452 | 7.35 | % | |||||||
| Other debt | – | – | 0.00 | % | |||||||
| Total borrowings | 529,285 | 4,593 | 3.44 | % | |||||||
| Total interest bearing liabilities | 5,435,795 | 29,770 | 2.17 | % | |||||||
| NONINTEREST BEARING LIABILITIES | |||||||||||
| Demand deposits | 1,331,638 | Avg Cost of Funds | 1.75 | % | |||||||
| Other liabilities | 41,524 | ||||||||||
| Stockholders’ equity | 903,411 | ||||||||||
| Total liabilities & stockholders’ equity | $ | 7,712,368 | |||||||||
| Net Interest Earnings / Spread | $ | 67,143 | 3.31 | % | |||||||
| Tax effected yield on interest earning assets | 3.80 | % | |||||||||
| Tax equivalent net interest margin is a non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure. | |||||||||||
| FIRST MID BANCSHARES, INC. | ||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
| (In thousands, unaudited) | ||||||||||||||||||||
| As of and for the Quarter Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2025 | 2025 | 2025 | 2024 | 2024 | ||||||||||||||||
| Net interest income as reported | $ | 66,363 | $ | 63,863 | $ | 59,409 | $ | 58,950 | $ | 57,543 | ||||||||||
| Net interest income, (tax equivalent) | 67,143 | 64,634 | 60,162 | 59,717 | 58,627 | |||||||||||||||
| Average earning assets | 7,014,675 | 6,975,783 | 6,769,858 | 6,884,303 | 6,857,070 | |||||||||||||||
| Net interest margin (tax equivalent) | 3.80% | 3.72% | 3.60% | 3.41% | 3.35% | |||||||||||||||
| Common stockholder’s equity | $ | 932,179 | $ | 894,140 | $ | 870,949 | $ | 846,391 | $ | 858,497 | ||||||||||
| Goodwill and intangibles, net | 255,217 | 255,547 | 258,671 | 261,906 | 265,139 | |||||||||||||||
| Common shares outstanding | 23,997 | 23,989 | 23,982 | 23,896 | 23,904 | |||||||||||||||
| Tangible Book Value per common share | $ | 28.21 | $ | 26.62 | $ | 25.53 | $ | 24.46 | $ | 24.82 | ||||||||||
| Accumulated other comprehensive loss (AOCI) | (110,012 | ) | (130,710 | ) | (136,097 | ) | (142,383 | ) | (116,692 | ) | ||||||||||
| Adjusted tangible book value per common share | $ | 32.79 | $ | 32.07 | $ | 31.21 | $ | 30.42 | $ | 29.70 | ||||||||||
| FIRST MID BANCSHARES, INC. | ||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | ||||||||||||||||||||
| (In thousands, except per share data, unaudited) | ||||||||||||||||||||
| As of and for the Quarter Ended | ||||||||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2025 | 2025 | 2025 | 2024 | 2024 | ||||||||||||||||
| Adjusted earnings Reconciliation | ||||||||||||||||||||
| Net Income – GAAP | $ | 22,462 | $ | 23,438 | $ | 22,171 | $ | 19,168 | $ | 19,482 | ||||||||||
| Adjustments (post-tax):(1) | ||||||||||||||||||||
| Nonrecurring technology project expenses | 360 | 246 | 728 | 1,710 | – | |||||||||||||||
| Net (gain)/loss on securities sales | 1,525 | – | 143 | – | 219 | |||||||||||||||
| Net (gain)/loss on real estate sales | (1,033 | ) | – | – | – | – | ||||||||||||||
| Nonrecurring severance expense | 15 | – | – | – | – | |||||||||||||||
| Integration and acquisition expenses | 13 | 3 | 41 | – | 137 | |||||||||||||||
| Total non-recurring adjustments (non-GAAP) | $ | 880 | $ | 249 | $ | 912 | $ | 1,710 | $ | 356 | ||||||||||
| Adjusted earnings – non-GAAP | $ | 23,342 | $ | 23,687 | $ | 23,083 | $ | 20,878 | $ | 19,838 | ||||||||||
| Adjusted diluted earnings per share (non-GAAP) | $ | 0.97 | $ | 0.99 | $ | 0.96 | $ | 0.87 | $ | 0.83 | ||||||||||
| Adjusted return on average assets (non-GAAP) | 1.21% | 1.23% | 1.23% | 1.10% | 1.05% | |||||||||||||||
| Adjusted return on average common equity (non-GAAP) | 10.34% | 10.80% | 10.78% | 9.80% | 9.58% | |||||||||||||||
| Efficiency Ratio Reconciliation | ||||||||||||||||||||
| Noninterest expense – GAAP | $ | 57,146 | $ | 54,762 | $ | 54,472 | $ | 56,297 | $ | 53,933 | ||||||||||
| Other real estate owned property income (expense) | (217 | ) | (75 | ) | (101 | ) | (240 | ) | (107 | ) | ||||||||||
| Amortization of intangibles | (3,128 | ) | (3,121 | ) | (3,231 | ) | (3,314 | ) | (3,405 | ) | ||||||||||
| Loss on real estate sales | (95 | ) | – | – | – | – | ||||||||||||||
| Nonrecurring severance expense | (19 | ) | – | – | – | – | ||||||||||||||
| Nonrecurring technology project expense | (456 | ) | (311 | ) | (921 | ) | (2,164 | ) | – | |||||||||||
| Integration and acquisition expenses | (17 | ) | (4 | ) | (52 | ) | – | (174 | ) | |||||||||||
| Adjusted noninterest expense (non-GAAP) | $ | 53,214 | $ | 51,251 | $ | 50,167 | $ | 50,579 | $ | 50,247 | ||||||||||
| Net interest income -GAAP | $ | 66,363 | $ | 63,863 | $ | 59,409 | $ | 58,950 | $ | 57,543 | ||||||||||
| Effect of tax-exempt income(1) | 780 | 771 | 753 | 767 | 1,084 | |||||||||||||||
| Adjusted net interest income (non-GAAP) | $ | 67,143 | $ | 64,634 | $ | 60,162 | $ | 59,717 | $ | 58,627 | ||||||||||
| Noninterest income – GAAP | $ | 22,909 | $ | 23,593 | $ | 24,864 | $ | 26,363 | $ | 23,023 | ||||||||||
| Gain on real estate sales | (1,403 | ) | $ | – | $ | – | $ | – | $ | – | ||||||||||
| Net (gain)/loss on securities sales | 1,930 | 0 | 181 | 0 | 277 | |||||||||||||||
| Adjusted noninterest income (non-GAAP) | $ | 23,436 | $ | 23,593 | $ | 25,045 | $ | 26,363 | $ | 23,300 | ||||||||||
| Adjusted total revenue (non-GAAP) | $ | 90,579 | $ | 88,227 | $ | 85,207 | $ | 86,080 | $ | 81,927 | ||||||||||
| Efficiency ratio (non-GAAP) | 58.75% | 58.09% | 58.88% | 58.76% | 61.33% | |||||||||||||||
| (1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%. | ||||||||||||||||||||
