First Mid Bancshares, Inc. Announces First Quarter 2025 Results

Rhea-AI Summary

First Mid Bancshares reported record-breaking Q1 2025 results with net income reaching $22.2 million, or $0.93 per diluted share. The company's adjusted net income stood at $23.1 million ($0.96 per diluted share). Key highlights include:

The bank's net interest margin expanded to 3.60%, marking the fourth consecutive quarter of growth. Total loans increased to $5.70 billion, up 3.6% year-over-year, while deposits grew to $6.13 billion, representing a 1.2% increase from the previous quarter.

Asset quality remained strong with the allowance for credit losses at $70.1 million and a ratio of 1.23% to total loans. The Board declared a quarterly dividend of $0.24 per share. The company successfully completed its retail online system conversion, enhancing customer experience and platform capabilities for cross-business growth.

Positive

• Record quarterly net income of $22.2M, up $0.13 EPS
• Net interest margin expanded to 3.60%, fourth consecutive quarter of growth
• Tangible book value per share increased 4.4% during Q1
• Net interest income rose 7.1% YoY to $3.9M
• Strong asset quality with low non-performing loans ratio of 0.47%
• Total deposits increased $73.3M (1.2%) from previous quarter
• Insurance revenues achieved record high quarter
• Reduced FHLB borrowings and subordinated debt by $55.5M

Negative

• Special mention loans increased by $16.2M to $74M
• Net charge-offs of $1.8M in the quarter
• Decline in debit card fee income due to consumer spending pullback
• Noninterest income decreased from $26.4M to $24.9M quarter-over-quarter
• $1.0M in nonrecurring expenses from technology initiatives

Insights

Banking Financial Analyst

First Mid Bancshares delivers record quarterly earnings with expanding margins, growing deposits, and strong asset quality, demonstrating effective execution of its strategic initiatives.

First Mid Bancshares has delivered record quarterly net income of $22.2 million ($0.93 EPS), representing a substantial $0.13 EPS increase quarter-over-quarter. The adjusted EPS of $0.96 (excluding non-recurring technology expenses) demonstrates the company's growing profitability trajectory.

The standout metric this quarter is the net interest margin expansion to 3.60%, increasing 19 basis points from last quarter and 35 basis points year-over-year. This margin growth occurred despite lower accretion income ($2.9M vs $3.4M previous quarter), indicating even stronger core margin improvement of 23 basis points when excluding this factor - a significant achievement in the current banking environment.

Asset quality remains robust with non-performing loans ratio at just 0.47% and the allowance for credit losses covering non-performing loans at an impressive 263.4%. This conservative positioning provides substantial protection against potential economic headwinds that management acknowledged in their outlook.

The 1.2% deposit growth is particularly positive, with noninterest-bearing deposits increasing by $65.4 million, helping lower overall funding costs. The strategic reduction of $55.5 million in FHLB borrowings and subordinated debt further optimized the bank's liability structure.

First Mid's diversified revenue model continues to deliver, with insurance revenues achieving a record high quarter despite industry challenges. The successful completion of the retail online system conversion positions the bank for enhanced customer relationship growth across business lines.

The 4.4% increase in tangible book value per share ($1.07) is impressive, with $0.79 coming from earnings retention and $0.28 from improvement in accumulated other comprehensive income due to reduced unrealized investment portfolio losses.

The efficiency ratio remained stable at 58.9%, demonstrating disciplined expense management while investing in technology infrastructure. Capital levels remain robust at 15.59% total capital to risk-weighted assets, well above regulatory requirements.

MATTOON, Ill., April 30, 2025 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended March 31, 2025.

Highlights

• Record high quarterly net income of $22.2 million, or $0.93 diluted EPS, an increase of $0.13
• Adjusted net income (non-GAAP*) of $23.1 million, or $0.96 diluted EPS, an increase of $0.09 for the quarter
• Net interest margin tax equivalent (non-GAAP*) expands to 3.60% helping drive fourth consecutive quarter of growth in net interest income
• Tangible book value per share (non-GAAP*) increased 4.4% during the quarter
• Board of Directors declares regular quarterly dividend of $0.24 per share
  

“We kicked off 2025 with a record high quarterly net income that reflects our strategic focus on driving a higher return on assets,” said Joe Dively, Chairman and Chief Executive Officer. “We delivered growth in both loans and deposits in what is typically a seasonally pressured quarter, and we significantly expanded our net interest margin through both an increase in earning asset yields and a decrease in the average cost of funds. In addition, we successfully completed our retail online system conversion during the quarter providing a better overall product for our customers and an improved platform to grow relationships across business lines.”

“Lastly, while we recognize the uncertainty that exists in the macro environment, we are well-prepared with a disciplined credit culture and diversified revenue sources that position us to weather economic disruptions and continue to deliver exceptional service to our customers and communities,” Dively concluded.

Net Interest Income
Net interest income for the first quarter of 2025 increased by $0.5 million, or 0.8% compared to the fourth quarter of 2024. The increase was primarily the result of interest expense declining at a faster pace than interest income. Less days in the quarter drove declines in both interest income and expense. The decline in interest income included $0.5 million in lower accretion income, which totaled $2.9 million compared to $3.4 million of accretion income in the fourth quarter.

In comparison to the first quarter of 2024, net interest income increased $3.9 million, or 7.1%. Interest income was lower by $0.1 million, inclusive of a decline in accretion income of $0.7 million compared to the first quarter last year. Interest expense was lower by $4.1 million compared to the same period last year.

Net Interest Margin
Net interest margin, on a tax equivalent basis (non-GAAP), was 3.60% for the first quarter of 2025 representing an increase of 19 basis points over the prior quarter driven by both an increase to earning asset yields and a decrease to funding costs. Excluding the decline in accretion income, the net interest margin increased 23 basis points in the period. Beginning with the first quarter of 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. The calculation now is the annualized net interest income on a tax equivalent basis divided by average interest earning assets. This change added five-basis points to the net interest margin in the first quarter 2025 compared to the fourth quarter of 2024.

In comparison to the first quarter of last year, the net interest margin increased 35 basis points, with an average earning asset increase of 13 basis points, despite a five-basis point reduction to accretion income.

Loan Portfolio
Total loans ended the quarter at $5.70 billion, representing an increase of $26.4 million, or 0.5%, from the prior quarter, despite elevated payoffs during the period.   The increase was primarily in construction and land development, multifamily residential properties, and agriculture operating loans. The largest declines were in commercial real estate and commercial and industrial loans. The average loan balance for the quarter declined compared to the fourth quarter, as a majority of the net loan growth occurred in March 2025.

In comparison to the first quarter last year, loan growth increased $199.6 million, or 3.6%. The largest increases were in construction and development, agriculture operating lines, and commercial and industrial loans.

Asset Quality
The first quarter was another solid performance with respect to the Company’s asset quality metrics. The allowance for credit losses (“ACL”) ended the period at $70.1 million and the ACL to total loans ratio was 1.23%. In addition to the ACL, an unearned discount of $32.6 million remains at quarter end. Provision expense was recorded in the amount of $1.7 million with net charge-offs of $1.8 million in the quarter. Also, at the end of the first quarter, the ratio of non-performing loans to total loans was 0.47%, the ACL to non-performing loans was 263.4%, and the ratio of nonperforming assets to total assets was 0.38%. Nonperforming loans declined by $3.2 million to $26.6 million at quarter end. Special mention loans increased by $16.2 million to $74.0 million and substandard loans decreased $1.6 million to $33.9 million.

Deposits
Total deposits ended the quarter at $6.13 billion, which represented an increase of $73.3 million, or 1.2%, from the prior quarter. Noninterest bearing and time deposits were the primary drivers of the increase with growth of $65.4 million and $75.4 million for the period, respectively. The increase in time deposits was driven by a combination of the Company retaining a vast majority of customers with maturing CD’s, gaining new customers with its promotional offerings, and the addition of $52.0 million in brokered deposits as rates declined and the wholesale market became attractive. With the Company’s strong liquidity position, it was able to reduce outstanding FHLB borrowings and subordinated debt during the quarter by a combined $55.5 million helping lower overall funding costs.

Noninterest Income
Noninterest income for the first quarter of 2025 was $24.9 million compared to $26.4 million in the fourth quarter of 2024.   The decline was primarily driven by a $1.3 million gain on the sale of property in the fourth quarter. The current quarter included losses on securities sales of $0.2 million. Excluding those two items, noninterest income was flat versus the prior period. The decline of $0.5 million in wealth management revenue was as expected given the seasonal nature of farmland sales. Overall Ag Services revenue was $2.6 million in the period.   Insurance revenues achieved a record high quarter of revenue, despite a challenging operating environment for the industry. Debit card fee income was down $0.6 million primarily driven by less usage due to a pullback in consumer spending.

In comparison to the first quarter of 2024, noninterest income increased $0.4 million, or 1.6%, with increases in wealth management and insurance as the key drivers. The combined increase for these two business lines was 8.2% year-over-year. Debit card fee income reflected the largest decline from lower consumer spending in the first quarter of 2025.

Noninterest Expenses
Noninterest expense for the first quarter of 2025 totaled $54.5 million compared to $56.3 million in the prior quarter. The current quarter included $1.0 million of nonrecurring expenses primarily related to the Company’s technology initiatives, including the successful conversion of its retail online platform during the first quarter, versus $2.2 million in nonrecurring costs in the prior quarter. Excluding these items, noninterest expenses were down $0.6 million with the largest decreases in salaries and benefits and debit card expenses.

In comparison to the first quarter of 2024, noninterest expenses increased $1.1 million. The increase was primarily driven by annual compensation increases and a $0.9 million credit in the first quarter of last year for a debit card fee negotiated settlement agreement with its primary provider.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the first quarter 2025 was 58.9% compared to 58.8% in the prior quarter and 59.1% 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	15.59%
Tier 1 capital to risk-weighted assets	13.13%
Common equity tier 1 capital to risk-weighted assets	12.73%
Leverage ratio	10.73%

Tangible book value per share (non-GAAP) increased $1.07, or 4.4% during the first quarter of 2025. The increase was driven primarily by earnings growth, which accounted for $0.79 of the increase. The remaining increase of $0.28 was the result of improvement in accumulated other comprehensive income from a lower unrealized loss position in the investment portfolio.

The Company’s Board of Directors approved a regular quarterly dividend of $0.24 payable on May 30, 2025, for shareholders of record on May 15, 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 $7.6 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”. 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 pandemics 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.com

Matt 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,
	2025				2024				2024
Assets
Cash and cash equivalents	$	201,470			$	121,216			$	355,701
Investment securities		1,049,003				1,073,510				1,149,752
Loans (including loans held for sale)		5,698,858				5,672,462				5,499,295
Less allowance for credit losses		(70,051	)			(70,182	)			(67,936	)
Net loans		5,628,807				5,602,280				5,431,359
Premises and equipment, net		97,446				100,234				101,666
Goodwill and intangibles, net		258,671				261,906				260,699
Bank Owned Life Insurance		171,127				170,854				167,247
Other assets		166,164				189,734				211,822
Total assets	$	7,572,688			$	7,519,734			$	7,678,246
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing	$	1,394,590			$	1,329,155			$	1,448,299
Interest bearing		4,735,790				4,727,941				4,794,637
Total deposits		6,130,380				6,057,096				6,242,936
Repurchase agreements with customers		219,772				204,122				210,719
Other borrowings		195,000				242,520				238,761
Junior subordinated debentures		24,335				24,280				24,113
Subordinated debt		79,535				87,472				106,862
Other liabilities		52,717				57,853				56,903
Total liabilities		6,701,739				6,673,343				6,880,294
Total stockholders' equity		870,949				846,391				797,952
Total liabilities and stockholders' equity	$	7,572,688			$	7,519,734			$	7,678,246

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
	Three Months Ended
	March 31,
	2025				2024
Interest income:
Interest and fees on loans	$	79,918			$	77,823
Interest on investment securities		6,777				7,405
Interest on federal funds sold & other deposits		864				2,444
Total interest income		87,559				87,672
Interest expense:
Interest on deposits		23,722				26,096
Interest on securities sold under agreements to repurchase		1,180				2,056
Interest on other borrowings		1,831				2,314
Interest on jr. subordinated debentures		468				542
Interest on subordinated debt		949				1,194
Total interest expense		28,150				32,202
Net interest income		59,409				55,470
Provision for credit losses		1,652				(357	)
Net interest income after provision for credit losses		57,757				55,827
Non-interest income:
Wealth management revenues		5,800				5,322
Insurance commissions		9,925				9,213
Service charges		2,901				2,956
Net securities gains/(losses)		(181	)			0
Mortgage banking revenues		711				706
ATM/debit card revenue		3,646				4,055
Other		2,062				2,226
Total non-interest income		24,864				24,478
Non-interest expense:
Salaries and employee benefits		31,748				30,448
Net occupancy and equipment expense		8,479				7,560
Net other real estate owned (income) expense		101				(21	)
FDIC insurance		849				869
Amortization of intangible assets		3,231				3,497
Stationary and supplies		431				391
Legal and professional expense		3,076				2,449
ATM/debit card expense		1,831				1,191
Marketing and donations		852				862
Other		3,874				6,116
Total non-interest expense		54,472				53,362
Income before income taxes		28,149				26,943
Income taxes		5,978				6,440
Net income	$	22,171			$	20,503
Per Share Information
Basic earnings per common share	$	0.93			$	0.86
Diluted earnings per common share		0.93				0.86
Weighted average shares outstanding		23,858,817				23,872,731
Diluted weighted average shares outstanding		23,959,228				23,960,335

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,
	2025					2024			2024				2024				2024
Interest income:
Interest and fees on loans	$	79,918			$	81,288			$	81,775			$	79,560			$	77,823
Interest on investment securities		6,777				6,990				7,036				7,405				7,405
Interest on federal funds sold & other deposits		864				1,564				2,371				1,718				2,444
Total interest income		87,559				89,842				91,182				88,683				87,672
Interest expense:
Interest on deposits		23,722				26,144				28,341				26,338				26,096
Interest on securities sold under agreements to repurchase		1,180				1,333				1,444				1,615				2,056
Interest on other borrowings		1,831				1,917				2,195				2,248				2,314
Interest on jr. subordinated debentures		468				510				567				537				542
Interest on subordinated debt		949				988				1,092				1,180				1,194
Total interest expense		28,150				30,892				33,639				31,918				32,202
Net interest income		59,409				58,950				57,543				56,765				55,470
Provision for credit losses		1,652				3,643				1,266				1,083				(357	)
Net interest income after provision for credit losses		57,757				55,307				56,277				55,682				55,827
Non-interest income:
Wealth management revenues		5,800				6,275				5,816				5,405				5,322
Insurance commissions		9,925				6,805				6,003				6,531				9,213
Service charges		2,901				3,058				3,121				3,227				2,956
Net securities gains/(losses)		(181	)			0				(277	)			(156	)			0
Mortgage banking revenues		711				1,104				1,109				1,038				706
ATM/debit card revenue		3,646				4,204				4,267				4,281				4,055
Other		2,062				4,917				2,984				2,096				2,226
Total non-interest income		24,864				26,363				23,023				22,422				24,478
Non-interest expense:
Salaries and employee benefits		31,748				31,957				31,565				30,164				30,448
Net occupancy and equipment expense		8,479				7,285				8,055				7,507				7,560
Net other real estate owned (income) expense		101				240				107				85				(21	)
FDIC insurance		849				863				829				902				869
Amortization of intangible assets		3,231				3,314				3,405				3,340				3,497
Stationary and supplies		431				642				482				370				391
Legal and professional expense		3,076				5,386				2,573				2,536				2,449
ATM/debit card expense		1,831				2,043				1,869				1,281				1,191
Marketing and donations		852				906				836				814				862
Other		3,874				3,661				4,212				4,392				6,116
Total non-interest expense		54,472				56,297				53,933				51,391				53,362
Income before income taxes		28,149				25,373				25,367				26,713				26,943
Income taxes		5,978				6,205				5,885				6,968				6,440
Net income	$	22,171			$	19,168			$	19,482			$	19,745			$	20,503
Per Share Information
Basic earnings per common share	$	0.93			$	0.80			$	0.81			$	0.83			$	0.86
Diluted earnings per common share		0.93				0.80				0.81				0.82				0.86
Weighted average shares outstanding		23,858,817				23,818,806				23,905,099				23,896,210				23,872,731
Diluted weighted average shares outstanding		23,959,228				23,908,340				24,006,647				23,998,152				23,960,335

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,
		2025				2024				2024				2024				2024
Loan Portfolio
Construction and land development		$	269,148			$	236,093			$	190,857			$	195,389			$	186,851
Farm real estate loans			373,413				390,760				384,620				387,015				388,941
1-4 Family residential properties			488,139				496,597				505,342				507,517				518,641
Multifamily residential properties			356,858				332,644				338,167				334,446				312,758
Commercial real estate			2,397,985				2,417,585				2,440,120				2,406,955				2,396,092
Loans secured by real estate			3,885,543				3,873,679				3,859,106				3,831,322				3,803,283
Agricultural operating loans			296,811				239,671				233,414				213,997				213,217
Commercial and industrial loans			1,303,712				1,335,920				1,283,631				1,268,646				1,227,906
Consumer loans			47,220				53,960				63,222				70,841				79,569
All other loans			165,572				169,232				175,218				175,811				175,320
Total loans			5,698,858				5,672,462				5,614,591				5,560,617				5,499,295
Deposit Portfolio
Non-interest bearing demand deposits		$	1,394,590			$	1,329,155			$	1,387,290			$	1,393,336			$	1,448,299
Interest bearing demand deposits			1,814,427				1,907,733				1,834,123				1,909,993				1,974,857
Savings deposits			643,289				636,427				648,582				673,381				704,777
Money Market			1,215,420				1,196,537				1,183,594				1,127,699				1,107,177
Time deposits			1,062,654				987,244				1,035,245				1,011,370				1,007,826
Total deposits			6,130,380				6,057,096				6,088,834				6,115,779				6,242,936
Asset Quality
Non-performing loans		$	26,598			$	29,835			$	18,242			$	19,079			$	20,064
Non-performing assets			28,703				32,030				20,076				20,557				21,471
Net charge-offs (recoveries)			1,783				2,235				804				708				381
Allowance for credit losses to non-performing loans			263.36	%			235.23	%			377.01	%			358.05	%			338.60	%
Allowance for credit losses to total loans outstanding			1.23	%			1.24	%			1.22	%			1.23	%			1.24	%
Nonperforming loans to total loans			0.47	%			0.53	%			0.32	%			0.34	%			0.36	%
Nonperforming assets to total assets			0.38	%			0.43	%			0.27	%			0.27	%			0.28	%
Special Mention loans			74,019				57,848				38,151				30,767				65,693
Substandard and Doubtful loans			33,884				35,516				29,037				27,594				29,296
Common Share Data
Common shares outstanding			23,981,916				23,895,807				23,904,051				23,895,868				23,888,929
Book value per common share		$	36.32			$	35.42			$	35.91			$	34.05			$	33.40
Tangible book value per common share (1)			25.53				24.46				24.82				23.28				22.49
Tangible book value per common share excluding other comprehensive income at period end (1)			31.21				30.42				29.70				29.43				28.67
Market price of stock			34.90				36.82				38.91				32.88				32.68
Key Performance Ratios and Metrics
End of period earning assets		$	6,844,096			$	6,775,075			$	6,786,458			$	6,812,574			$	6,923,742
Average earning assets			6,769,858				6,884,303				6,857,070				6,815,932				6,884,855
Average rate on average earning assets (tax equivalent)			5.29	%			5.24	%			5.35	%			5.27	%			5.16	%
Average rate on cost of funds			1.74	%			1.83	%			2.00	%			1.91	%			1.91	%
Net interest margin (tax equivalent) (1)(2)			3.60	%			3.41	%			3.35	%			3.36	%			3.25	%
Return on average assets			1.19	%			1.01	%			1.03	%			1.05	%			1.07	%
Adjusted return on average assets (1)			1.23	%			1.10	%			1.05	%			1.07	%			1.17	%
Return on average common equity			10.35	%			9.04	%			9.40	%			9.92	%			10.37	%
Adjusted return on average common equity (1)			10.78	%			9.80	%			9.58	%			10.11	%			11.28	%
Efficiency ratio (tax equivalent) (1)			58.88	%			58.76	%			61.33	%			59.61	%			59.09	%
Full-time equivalent employees			1,194				1,198				1,207				1,185				1,188
1 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.
2 During 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 March 31, 2025
	QTD Average								Average
	Balance				Interest				Rate
INTEREST EARNING ASSETS
Interest bearing deposits	$	70,701			$	827				4.74	%
Federal funds sold		75				1				5.41	%
Certificates of deposits investments		3,162				36				4.62	%
Investment Securities		1,090,099				7,254				2.66	%
Loans (net of unearned income)		5,605,821				80,194				5.80	%
Total interest earning assets		6,769,858				88,312				5.29	%
NONEARNING ASSETS
Other nonearning assets		777,177
Allowance for loan losses		(70,620	)
Total assets	$	7,476,415
INTEREST BEARING LIABILITIES
Demand deposits	$	3,039,621			$	14,900				1.99	%
Savings deposits		640,687				164				0.10	%
Time deposits		1,022,200				8,658				3.44	%
Total interest bearing deposits		4,702,508				23,722				2.05	%
Repurchase agreements		201,679				1,180				2.37	%
FHLB advances		194,324				1,807				3.77	%
Federal funds purchased		-				-				0.00	%
Subordinated debt		82,608				949				4.66	%
Jr. subordinated debentures		24,306				468				7.81	%
Other debt		1,467				24				6.63	%
Total borrowings		504,384				4,428				3.56	%
Total interest bearing liabilities		5,206,892				28,150				2.19	%
NONINTEREST BEARING LIABILITIES
Demand deposits		1,370,107			Average cost of funds					1.74	%
Other liabilities		42,946
Stockholders' equity		856,470
Total liabilities & stockholders' equity	$	7,476,415
Net Interest Earnings / Spread					$	60,162				3.10	%
Tax effected yield on interest earning assets										3.60	%
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
	March 31,				December 31,				September 30,				June 30,				March 31,
	2025				2024				2024				2024				2024
Net interest income as reported	$	59,409			$	58,950			$	57,543			$	56,765			$	55,470
Net interest income, (tax equivalent)		60,162				59,717				58,627				57,361				56,086
Average earning assets		6,769,858				6,884,303				6,857,070				6,815,932				6,884,855
Net interest margin (tax equivalent)		3.60	%			3.41	%			3.35	%			3.36	%			3.25	%
Common stockholder's equity	$	870,949			$	846,391			$	858,497			$	813,645			$	797,952
Goodwill and intangibles, net		258,671				261,906				265,139				257,377				260,699
Common shares outstanding		23,982				23,896				23,904				23,896				23,889
Tangible Book Value per common share	$	25.53			$	24.46			$	24.82			$	23.28			$	22.49
Accumulated other comprehensive loss (AOCI)		(136,097	)			(142,383	)			(116,692	)			(146,998	)			(147,667	)
Adjusted tangible book value per common share	$	31.21			$	30.42			$	29.70			$	29.43			$	28.67

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,
	2025				2024				2024				2024				2024
Adjusted earnings Reconciliation
Net Income - GAAP	$	22,171			$	19,168			$	19,482			$	19,745			$	20,503
Adjustments (post-tax): (1)
Nonrecurring technology project expenses		728				1,710				-				-				-
Net (gain)/loss on securities sales		143				-				219				123				-
Integration and acquisition expenses		41				-				137				250				1,804
Total non-recurring adjustments (non-GAAP)	$	912			$	1,710			$	356			$	373			$	1,804
Adjusted earnings - non-GAAP	$	23,083			$	20,878			$	19,838			$	20,118			$	22,307
Adjusted diluted earnings per share (non-GAAP)	$	0.96			$	0.87			$	0.83			$	0.84			$	0.93
Adjusted return on average assets - non-GAAP		1.23	%			1.10	%			1.05	%			1.07	%			1.17	%
Adjusted return on average common equity - non-GAAP		10.78	%			9.80	%			9.58	%			10.11	%			11.28	%
Efficiency Ratio Reconciliation
Noninterest expense - GAAP	$	54,472			$	56,297			$	53,933			$	51,391			$	53,362
Other real estate owned property income (expense)		(101	)			(240	)			(107	)			(85	)			21
Amortization of intangibles		(3,231	)			(3,314	)			(3,405	)			(3,340	)			(3,497	)
Nonrecurring technology project expense		(921	)			(2,164	)			-				-				-
Integration and acquisition expenses		(52	)			-				(174	)			(316	)			(2,283	)
Adjusted noninterest expense (non-GAAP)	$	50,167			$	50,579			$	50,247			$	47,650			$	47,603
Net interest income -GAAP	$	59,409			$	58,950			$	57,543			$	56,765			$	55,470
Effect of tax-exempt income (1)		753				767				1,084				596				616
Adjusted net interest income (non-GAAP)	$	60,162			$	59,717			$	58,627			$	57,361			$	56,086
Noninterest income - GAAP	$	24,864			$	26,363			$	23,023			$	22,422			$	24,478
Net (gain)/loss on securities sales		181				0				277				156				0
Adjusted noninterest income (non-GAAP)	$	25,045			$	26,363			$	23,300			$	22,578			$	24,478
Adjusted total revenue (non-GAAP)	$	85,207			$	86,080			$	81,927			$	79,939			$	80,564
Efficiency ratio (non-GAAP)		58.88	%			58.76	%			61.33	%			59.61	%			59.09	%
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.

FAQ

What was First Mid Bancshares (FMBH) earnings per share in Q1 2025?

First Mid Bancshares reported Q1 2025 earnings of $0.93 per diluted share, with adjusted earnings of $0.96 per share, representing an increase of $0.13 and $0.09 respectively.

How much is First Mid Bancshares (FMBH) quarterly dividend in 2025?

First Mid Bancshares declared a regular quarterly dividend of $0.24 per share, payable on May 30, 2025, for shareholders of record on May 15, 2025.

What is FMBH's net interest margin for Q1 2025?

First Mid Bancshares reported a net interest margin of 3.60% for Q1 2025, representing an increase of 19 basis points over the previous quarter.

How much did First Mid Bancshares loans grow in Q1 2025?

First Mid Bancshares total loans increased by $26.4 million (0.5%) from the previous quarter to $5.70 billion, with year-over-year growth of $199.6 million (3.6%).

What is FMBH's asset quality in Q1 2025?

First Mid Bancshares maintained strong asset quality with non-performing loans ratio at 0.47%, allowance for credit losses at 1.23% of total loans, and non-performing assets to total assets at 0.38%.

How much did First Mid Bancshares deposits grow in Q1 2025?

First Mid Bancshares total deposits increased by $73.3 million (1.2%) to $6.13 billion, driven by growth in noninterest bearing and time deposits of $65.4 million and $75.4 million respectively.