First Mid Bancshares, Inc. Announces Second Quarter 2025 Results

Rhea-AI Summary

First Mid Bancshares (NASDAQ: FMBH) reported strong Q2 2025 financial results, achieving record quarterly net income of $23.4 million, or $0.98 diluted EPS. The company demonstrated robust performance with net interest margin expanding to 3.72%, marking the fifth consecutive quarter of net interest income growth.

Key metrics include total loans of $5.77 billion (up 1.20% quarterly) and total deposits of $6.19 billion (up 0.98% quarterly). The company maintained strong asset quality with an allowance for credit losses ratio of 1.23%. The Board approved a dividend increase to $0.25 per share, reflecting confidence in the company's financial position.

Positive

• Record quarterly net income of $23.4 million, up $0.05 in diluted EPS
• Net interest margin expanded by 12 basis points to 3.72%
• Total loans increased by $68.1 million (1.20%) quarterly and $206.4 million (3.7%) annually
• Strong asset quality with non-performing loans ratio at 0.38%
• Board approved $0.01 increase in quarterly dividend to $0.25 per share
• Tangible book value per share increased 4.3% during the quarter

Negative

• Noninterest income declined from $24.9M in Q1 to $23.6M in Q2 2025
• Noninterest expenses increased $3.4M year-over-year
• Special mention loans increased by $7.8M to $81.8M
• Substandard loans increased $5.1M to $39.0M

Insights

Banking Financial Analyst

FMBH posts record earnings with expanding margins, loan/deposit growth, and increased dividend, demonstrating strong execution despite economic uncertainties.

First Mid Bancshares delivered an impressive second quarter with record net income of $23.4 million, translating to diluted EPS of $0.98 – an increase of $0.05 from the previous quarter. The adjusted net income reached $23.7 million ($0.99 per share).

The bank's net interest margin expanded by 12 basis points to 3.72%, driving the fifth consecutive quarter of net interest income growth. This margin expansion is particularly noteworthy in the current environment, as the bank succeeded in increasing earning asset yields while maintaining funding costs – a delicate balance many regional banks struggle to achieve.

The loan portfolio grew by $68.1 million (1.2%) quarter-over-quarter to $5.77 billion, with growth diversified across construction, farm real estate, residential real estate, and commercial loans. Year-over-year, loans increased by $206.4 million (3.7%), demonstrating consistent expansion of the bank's core business.

Asset quality metrics remain solid with non-performing loans representing just 0.38% of total loans, and the allowance for credit losses at 1.23% of total loans providing a coverage ratio of 325% to non-performing loans. The $4.7 million reduction in non-performing loans is encouraging, though the increase in special mention loans ($7.8 million) and substandard loans ($5.1 million) bears monitoring as potential early warning indicators.

Deposits increased by $59.8 million (0.98%) to $6.19 billion, primarily in interest-bearing accounts. The efficiency ratio improved to 58.09% from 58.88% in the prior quarter and 59.61% a year ago, indicating better expense management.

The $0.01 dividend increase to $0.25 per share and the 4.3% quarterly growth in tangible book value demonstrate management's confidence in the bank's financial trajectory and commitment to shareholder returns. Capital levels remain robust, with total capital to risk-weighted assets at 15.76%, well above regulatory requirements.

MATTOON, Ill., July 24, 2025 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter ended June 30, 2025.

Highlights

• Record high quarterly net income of $23.4 million, or $0.98 diluted EPS, quarterly increase of $0.05
• Adjusted quarterly net income^* of $23.7 million, or $0.99 diluted EPS
• Net interest margin tax equivalent^* expands to 3.72%, quarterly increase of 12 basis points, helping drive the fifth consecutive quarter of growth in net interest income
• Total loans of $5.77 billion, quarterly increase of $68.1 million, or 1.20%
• Total deposits of $6.19 billion, quarterly increase of $59.8 million, or 0.98%
• Tangible book value per share^* increased 4.3% during the quarter
• Board of Directors declares a $0.01 increase in the quarterly dividend to $0.25 per share
  

“The first half of 2025 has provided strong results. The second quarter provided a record high quarterly net income along with expansion in net interest income. The quarter reflects our strategic approach to driving a higher return on assets,” said Joe Dively, Chairman and Chief Executive Officer. “Along with significant expansion of our net interest margin, we delivered growth in both loans and deposits.”

“I am pleased with our execution on our strategic plan and while the macro-economic environment continues to fluctuate, we continue to focus on what we can control by maintaining our disciplined credit culture. We continue to make investments in our technology platforms that will position us well for future growth,” Dively concluded.

Net Interest Income
Net interest income for the second quarter of 2025 was $63.9 million, an increase of $4.5 million, or 7.5% compared to the first quarter of 2025. The increase was primarily the result of higher yields on earning assets while maintaining funding costs. The increase in interest income included $0.5 million in higher accretion income, which totaled $3.4 million compared to $2.9 million of accretion income in the first quarter.

In comparison to the second quarter of 2024, net interest income increased $7.1 million, or 12.5%. Interest income was higher by $4.7 million, inclusive of a decrease in accretion income of $0.3 million compared to the second quarter last year. Interest expense was lower by $2.4 million compared to the second quarter of last year.

Net Interest Margin
Net interest margin, on a tax equivalent basis^*, was 3.72% for the second quarter of 2025 representing an increase of 12 basis points over the prior quarter, driven by both an increase to earning asset yields and maintaining funding costs. Excluding the increase in accretion income, the net interest margin increased 9 basis points in the period.

Loan Portfolio

Total loans ended the quarter at $5.77 billion, representing an increase of $68.1 million, or 1.2%, from the prior quarter. The increase was well diversified and included construction and land development, farm real estate, 1–4 family residential real estate, multi-family residential real estate, agriculture operating lines, and commercial and industrial loans. Commercial real estate and consumer loans saw modest declines in the quarter.

In comparison to the second quarter of last year, loan balances increased $206.4 million, or 3.7%. The largest increases were in construction and land development, agriculture operating lines, and commercial and industrial loans.

Asset Quality
The second quarter was another solid performance with respect to the Company’s asset quality metrics. The allowance for credit losses (“ACL”) ended the period at $71.2 million and the ACL to total loans ratio was 1.23%. In addition to the ACL, an unearned discount of $28.7 million remains at quarter end. Provision expense was recorded in the amount of $2.6 million with net charge-offs of $1.5 million in the quarter. Also, at the end of the second quarter, the ratio of non-performing loans to total loans was 0.38%, the ACL to non-performing loans ratio was 325%, and the ratio of nonperforming assets to total assets was 0.31%. During the quarter, nonperforming loans declined by $4.7 million to $21.9 million. Special mention loans increased by $7.8 million to $81.8 million and substandard loans increased $5.1 million to $39.0 million.

Deposits
Total deposits ended the quarter at $6.19 billion, which represented an increase of $59.8 million, or 0.98%, from the prior quarter. Interest bearing demand deposits, money market accounts, and time deposits were the primary drivers of the increase.

Noninterest Income
Noninterest income for the second quarter of 2025 was $23.6 million compared to $24.9 million in the first quarter of 2025. The decline was primarily driven by seasonality in the wealth management and insurance business lines. Wealth management revenues for the quarter were $5.4 million, which is in line with the second quarter of 2024. Insurance revenues for the quarter were $7.8 million, up $1.3 million from the second quarter of 2024. Overall Ag Services revenue was $2.3 million in the period. Debit card fee income was boosted in the quarter by our annual incentive of $1.0 million from our service provider.

In comparison to the second quarter of 2024, noninterest income increased $1.2 million, or 5.2%, primarily driven by insurance commissions from both organic growth and strategic acquisitions.

Noninterest Expenses
Noninterest expense for the second quarter of 2025 totaled $54.8 million compared to $54.5 million in the prior quarter. The current quarter included $0.2 million of nonrecurring expenses primarily related to the Company’s technology initiatives, versus $1.0 million in nonrecurring costs in the prior quarter. The quarter over quarter increase is primarily driven by an increase in salaries and employee benefits. This resulted from annual salary increases and higher incentive compensation from overall performance compared to budget.

In comparison to the second quarter of 2024, noninterest expenses increased $3.4 million. The increase was primarily driven by annual compensation increases and incentive accrual for overperformance compared to budget.

The Company’s efficiency ratio, as adjusted in the non-GAAP reconciliation table herein, for the second quarter 2025 was 58.09% compared to 58.88% in the prior quarter and 59.61% 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	15.76%
Tier 1 capital to risk-weighted assets	13.31%
Common equity tier 1 capital to risk-weighted assets	12.92%
Leverage ratio	10.73%

Tangible book value per share^* increased $1.09, or 4.3% during the second quarter of 2025. The increase was driven primarily by earnings growth, which accounted for $0.90 of the increase. The remaining increase of $0.19 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 increased the quarterly dividend to $0.25 payable on August 29, 2025, for shareholders of record on August 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 $7.7 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 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

Jordan Read
Chief Financial and Risk Officer
636-626-2265
jread@firstmid.com

– Tables Follow –

FIRST MID BANCSHARES, INC.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
		As of
		June 30,				December 31,				June 30,
			2025				2024				2024
Assets
Cash and cash equivalents		$	190,017			$	121,216			$	235,480
Investment securities			1,085,701				1,073,510				1,120,930
Loans (including loans held for sale)			5,766,999				5,672,462				5,560,617
Less allowance for credit losses			(71,160	)			(70,182	)			(68,312	)
Net loans			5,695,839				5,602,280				5,492,305
Premises and equipment, net			97,740				100,234				101,583
Goodwill and intangibles, net			255,547				261,906				257,377
Bank Owned Life Insurance			172,333				170,854				168,439
Other assets			183,298				189,734				204,946
Total assets		$	7,680,475			$	7,519,734			$	7,581,060
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing		$	1,321,446			$	1,329,155			$	1,393,336
Interest bearing			4,868,753				4,727,941				4,722,443
Total deposits			6,190,199				6,057,096				6,115,779
Repurchase agreements with customers			193,941				204,122				205,955
Other borrowings			245,000				242,520				263,735
Junior subordinated debentures			24,384				24,280				24,169
Subordinated debt			79,590				87,472				103,029
Other liabilities			53,221				57,853				54,748
Total liabilities			6,786,335				6,673,343				6,767,415
Total stockholders' equity			894,140				846,391				813,645
Total liabilities and stockholders' equity		$	7,680,475			$	7,519,734			$	7,581,060

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
		Three Months Ended								Six Months Ended
		June 30,								June 30,
			2025				2024				2025				2024
Interest income:
Interest and fees on loans		$	84,784			$	79,560			$	164,702			$	157,383
Interest on investment securities			6,895				7,405				13,672				14,810
Interest on federal funds sold & other deposits			1,722				1,718				2,586				4,162
Total interest income			93,401				88,683				180,960				176,355
Interest expense:
Interest on deposits			24,964				26,338				48,686				52,434
Interest on securities sold under agreements to repurchase			1,218				1,615				2,398				3,671
Interest on other borrowings			2,043				2,248				3,874				4,562
Interest on jr. subordinated debentures			464				537				932				1,079
Interest on subordinated debt			849				1,180				1,798				2,374
Total interest expense			29,538				31,918				57,688				64,120
Net interest income			63,863				56,765				123,272				112,235
Provision for credit losses			2,567				1,083				4,219				726
Net interest income after provision for credit losses			61,296				55,682				119,053				111,509
Non-interest income:
Wealth management revenues			5,394				5,405				11,205				10,727
Insurance commissions			7,840				6,531				17,765				15,744
Service charges			2,995				3,227				5,896				6,183
Net securities losses			0				(156	)			(181	)			(156	)
Mortgage banking revenues			1,070				1,038				1,781				1,744
ATM/debit card revenue			4,636				4,281				8,282				8,336
Other			1,658				2,096				3,709				4,322
Total non-interest income			23,593				22,422				48,457				46,900
Non-interest expense:
Salaries and employee benefits			33,623				30,164				65,371				60,612
Net occupancy and equipment expense			7,869				7,507				16,348				15,067
Net other real estate owned (income) expense			75				85				176				64
FDIC insurance			873				902				1,722				1,771
Amortization of intangible assets			3,121				3,340				6,352				6,837
Stationary and supplies			367				370				798				761
Legal and professional expense			2,757				2,536				5,833				4,985
ATM/debit card expense			1,144				1,281				2,975				2,472
Marketing and donations			777				814				1,629				1,676
Other			4,156				4,392				8,030				10,508
Total non-interest expense			54,762				51,391				109,234				104,753
Income before income taxes			30,127				26,713				58,276				53,656
Income taxes			6,689				6,968				12,667				13,408
Net income		$	23,438			$	19,745			$	45,609			$	40,248
Per Share Information
Basic earnings per common share		$	0.98			$	0.83			$	1.91			$	1.69
Diluted earnings per common share			0.98				0.82				1.90				1.68
Weighted average shares outstanding			23,867,592				23,896,210				23,863,229				23,884,472
Diluted weighted average shares outstanding			23,988,974				23,998,152				23,974,183				23,979,244

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
		For the Quarter Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
			2025				2025				2024				2024				2024
Interest income:
Interest and fees on loans		$	84,784			$	79,918			$	81,288			$	81,775			$	79,560
Interest on investment securities			6,895				6,777				6,990				7,036				7,405
Interest on federal funds sold & other deposits			1,722				864				1,564				2,371				1,718
Total interest income			93,401				87,559				89,842				91,182				88,683
Interest expense:
Interest on deposits			24,964				23,722				26,144				28,341				26,338
Interest on securities sold under agreements to repurchase			1,218				1,180				1,333				1,444				1,615
Interest on other borrowings			2,043				1,831				1,917				2,195				2,248
Interest on jr. subordinated debentures			464				468				510				567				537
Interest on subordinated debt			849				949				988				1,092				1,180
Total interest expense			29,538				28,150				30,892				33,639				31,918
Net interest income			63,863				59,409				58,950				57,543				56,765
Provision for credit losses			2,567				1,652				3,643				1,266				1,083
Net interest income after provision for credit losses			61,296				57,757				55,307				56,277				55,682
Non-interest income:
Wealth management revenues			5,394				5,800				6,275				5,816				5,405
Insurance commissions			7,840				9,925				6,805				6,003				6,531
Service charges			2,995				2,901				3,058				3,121				3,227
Net securities losses			0				(181	)			0				(277	)			(156	)
Mortgage banking revenues			1,070				711				1,104				1,109				1,038
ATM/debit card revenue			4,636				3,646				4,204				4,267				4,281
Other			1,658				2,062				4,917				2,984				2,096
Total non-interest income			23,593				24,864				26,363				23,023				22,422
Non-interest expense:
Salaries and employee benefits			33,623				31,748				31,957				31,565				30,164
Net occupancy and equipment expense			7,869				8,479				7,285				8,055				7,507
Net other real estate owned expense			75				101				240				107				85
FDIC insurance			873				849				863				829				902
Amortization of intangible assets			3,121				3,231				3,314				3,405				3,340
Stationary and supplies			367				431				642				482				370
Legal and professional expense			2,757				3,076				5,386				2,573				2,536
ATM/debit card expense			1,144				1,831				2,043				1,869				1,281
Marketing and donations			777				852				906				836				814
Other			4,156				3,874				3,661				4,212				4,392
Total non-interest expense			54,762				54,472				56,297				53,933				51,391
Income before income taxes			30,127				28,149				25,373				25,367				26,713
Income taxes			6,689				5,978				6,205				5,885				6,968
Net income		$	23,438			$	22,171			$	19,168			$	19,482			$	19,745
Per Share Information
Basic earnings per common share		$	0.98			$	0.93			$	0.80			$	0.81			$	0.83
Diluted earnings per common share			0.98				0.93				0.80				0.81				0.82
Weighted average shares outstanding			23,867,592				23,858,817				23,818,806				23,905,099				23,896,210
Diluted weighted average shares outstanding			23,988,974				23,959,228				23,908,340				24,006,647				23,998,152

FIRST MID BANCSHARES, INC.
Consolidated Financial Highlights and Ratios
(Dollars in thousands, except per share data)
(Unaudited)
		As of and for the Quarter Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
			2025				2025				2024				2024				2024
Loan Portfolio
Construction and land development		$	298,812			$	269,148			$	236,093			$	190,857			$	195,389
Farm real estate loans			381,517				373,413				390,760				384,620				387,015
1-4 Family residential properties			495,787				488,139				496,597				505,342				507,517
Multifamily residential properties			360,604				356,858				332,644				338,167				334,446
Commercial real estate			2,393,640				2,397,985				2,417,585				2,440,120				2,406,955
Loans secured by real estate			3,930,360				3,885,543				3,873,679				3,859,106				3,831,322
Agricultural operating loans			306,374				296,811				239,671				233,414				213,997
Commercial and industrial loans			1,324,653				1,303,712				1,335,920				1,283,631				1,268,646
Consumer loans			41,604				47,220				53,960				63,222				70,841
All other loans			164,008				165,572				169,232				175,218				175,811
Total loans			5,766,999				5,698,858				5,672,462				5,614,591				5,560,617
Deposit Portfolio
Non-interest bearing demand deposits		$	1,321,446			$	1,394,590			$	1,329,155			$	1,387,290			$	1,393,336
Interest bearing demand deposits			1,947,744				1,814,427				1,907,733				1,834,123				1,909,993
Savings deposits			632,925				643,289				636,427				648,582				673,381
Money Market			1,206,140				1,215,420				1,196,537				1,183,594				1,127,699
Time deposits			1,081,944				1,062,654				987,244				1,035,245				1,011,370
Total deposits			6,190,199				6,130,380				6,057,096				6,088,834				6,115,779
Asset Quality
Non-performing loans		$	21,895			$	26,598			$	29,835			$	18,242			$	19,079
Non-performing assets			23,572				28,703				32,030				20,076				20,557
Net charge-offs (recoveries)			1,458				1,783				2,235				804				708
Allowance for credit losses to non-performing loans			325.00	%			263.36	%			235.23	%			377.01	%			358.05	%
Allowance for credit losses to total loans outstanding			1.23	%			1.23	%			1.24	%			1.22	%			1.23	%
Nonperforming loans to total loans			0.38	%			0.47	%			0.53	%			0.32	%			0.34	%
Nonperforming assets to total assets			0.31	%			0.38	%			0.43	%			0.27	%			0.27	%
Special Mention loans			81,815				74,019				57,848				38,151				30,767
Substandard and Doubtful loans			39,031				33,884				35,516				29,037				27,594
Common Share Data
Common shares outstanding			23,988,845				23,981,916				23,895,807				23,904,051				23,895,868
Book value per common share		$	37.27			$	36.32			$	35.42			$	35.91			$	34.05
Tangible book value per common share (1)			26.62				25.53				24.46				24.82				23.28
Tangible book value per common share excluding other comprehensive income at period end (1)			32.07				31.21				30.42				29.70				29.43
Market price of stock			37.49				34.90				36.82				38.91				32.88
Key Performance Ratios and Metrics
End of period earning assets		$	6,924,934			$	6,844,096			$	6,775,075			$	6,786,458			$	6,812,574
Average earning assets			6,975,783				6,769,858				6,884,303				6,857,070				6,815,932
Average rate on average earning assets (tax equivalent)			5.41	%			5.29	%			5.24	%			5.35	%			5.27	%
Average rate on cost of funds			1.75	%			1.74	%			1.83	%			2.00	%			1.91	%
Net interest margin (tax equivalent) (1)(2)			3.72	%			3.60	%			3.41	%			3.35	%			3.36	%
Return on average assets			1.20	%			1.19	%			1.01	%			1.03	%			1.05	%
Adjusted return on average assets (1)			1.23	%			1.23	%			1.10	%			1.05	%			1.07	%
Return on average common equity			10.52	%			10.35	%			9.04	%			9.40	%			9.92	%
Adjusted return on average common equity (1)			10.80	%			10.78	%			9.80	%			9.58	%			10.11	%
Efficiency ratio (tax equivalent) (1)			58.09	%			58.88	%			58.76	%			61.33	%			59.61	%
Full-time equivalent employees			1,190				1,194				1,198				1,207				1,185
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 June 30, 2025
		QTD Average								Average
		Balance				Interest				Rate
INTEREST EARNING ASSETS
Interest bearing deposits		$	146,907			$	1,694			4.63%
Federal funds sold			75				-			0.00%
Certificates of deposits investments			2,515				28			4.47%
Investment Securities			1,082,974				7,381			2.73%
Loans (net of unearned income)			5,743,312				85,070			5.94%
Total interest earning assets			6,975,783				94,173			5.41%
NONEARNING ASSETS
Other nonearning assets			767,422
Allowance for loan losses			(70,671	)
Total assets		$	7,672,534
INTEREST BEARING LIABILITIES
Demand deposits		$	3,119,484			$	15,594			2.01%
Savings deposits			638,174				158			0.10%
Time deposits			1,078,174				9,213			3.43%
Total interest bearing deposits			4,835,832				24,965			2.07%
Repurchase agreements			199,345				1,218			2.45%
FHLB advances			218,846				2,043			3.74%
Federal funds purchased			-				-			0.00%
Subordinated debt			79,554				849			4.28%
Jr. subordinated debentures			24,360				464			7.64%
Other debt			-				-			0.00%
Total borrowings			522,105				4,574			3.51%
Total interest bearing liabilities			5,357,937				29,539			2.21%
NONINTEREST BEARING LIABILITIES
Demand deposits			1,402,374			Avg Cost of Funds				1.75%
Other liabilities			35,264
Stockholders' equity			876,959
Total liabilities & stockholders' equity		$	7,672,534
Net Interest Earnings / Spread						$	64,634			3.20%
Tax effected yield on interest earning assets										3.72%
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
		June 30,				March 31,				December 31,				September 30,				June 30,
			2025				2025				2024				2024				2024
Net interest income as reported		$	63,863			$	59,409			$	58,950			$	57,543			$	56,765
Net interest income, (tax equivalent)			64,634				60,162				59,717				58,627				57,361
Average earning assets			6,975,783				6,769,858				6,884,303				6,857,070				6,815,932
Net interest margin (tax equivalent)			3.72	%			3.60	%			3.41	%			3.35	%			3.36	%
Common stockholder's equity		$	894,140			$	870,949			$	846,391			$	858,497			$	813,645
Goodwill and intangibles, net			255,547				258,671				261,906				265,139				257,377
Common shares outstanding			23,989				23,982				23,896				23,904				23,896
Tangible Book Value per common share		$	26.62			$	25.53			$	24.46			$	24.82			$	23.28
Accumulated other comprehensive loss (AOCI)			(130,710	)			(136,097	)			(142,383	)			(116,692	)			(146,998	)
Adjusted tangible book value per common share		$	32.07			$	31.21			$	30.42			$	29.70			$	29.43

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)
		As of and for the Quarter Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
			2025				2025				2024				2024				2024
Adjusted earnings Reconciliation
Net Income - GAAP		$	23,438			$	22,171			$	19,168			$	19,482			$	19,745
Adjustments (post-tax): (1)
Nonrecurring technology project expenses			246				728				1,710				-				-
Net (gain)/loss on securities sales			-				143				-				219				123
Integration and acquisition expenses			3				41				-				137				250
Total non-recurring adjustments (non-GAAP)		$	249			$	912			$	1,710			$	356			$	373
Adjusted earnings - non-GAAP		$	23,687			$	23,083			$	20,878			$	19,838			$	20,118
Adjusted diluted earnings per share (non-GAAP)		$	0.99			$	0.96			$	0.87			$	0.83			$	0.84
Adjusted return on average assets - non-GAAP			1.23	%			1.23	%			1.10	%			1.05	%			1.07	%
Adjusted return on average common equity - non-GAAP			10.80	%			10.78	%			9.80	%			9.58	%			10.11	%
Efficiency Ratio Reconciliation
Noninterest expense - GAAP		$	54,762			$	54,472			$	56,297			$	53,933			$	51,391
Other real estate owned property income (expense)			(75	)			(101	)			(240	)			(107	)			(85	)
Amortization of intangibles			(3,121	)			(3,231	)			(3,314	)			(3,405	)			(3,340	)
Nonrecurring technology project expense			(311	)			(921	)			(2,164	)			-				-
Integration and acquisition expenses			(4	)			(52	)			-				(174	)			(316	)
Adjusted noninterest expense (non-GAAP)		$	51,251			$	50,167			$	50,579			$	50,247			$	47,650
Net interest income -GAAP		$	63,863			$	59,409			$	58,950			$	57,543			$	56,765
Effect of tax-exempt income (1)			771				753				767				1,084				596
Adjusted net interest income (non-GAAP)		$	64,634			$	60,162			$	59,717			$	58,627			$	57,361
Noninterest income - GAAP		$	23,593			$	24,864			$	26,363			$	23,023			$	22,422
Net (gain)/loss on securities sales			0				181				0				277				156
Adjusted noninterest income (non-GAAP)		$	23,593			$	25,045			$	26,363			$	23,300			$	22,578
Adjusted total revenue (non-GAAP)		$	88,227			$	85,207			$	86,080			$	81,927			$	79,939
Efficiency ratio (non-GAAP)			58.09	%			58.88	%			58.76	%			61.33	%			59.61	%
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.

FAQ

What were First Mid Bancshares (FMBH) earnings per share in Q2 2025?

First Mid Bancshares reported diluted earnings per share of $0.98 in Q2 2025, with adjusted EPS of $0.99.

How much did FMBH's net interest margin increase in Q2 2025?

FMBH's net interest margin expanded by 12 basis points to 3.72% in Q2 2025 compared to the previous quarter.

What is First Mid Bancshares' new quarterly dividend for 2025?

The Board approved a $0.01 increase in the quarterly dividend to $0.25 per share, payable on August 29, 2025, for shareholders of record on August 15, 2025.

How much did FMBH's total loans grow in Q2 2025?

Total loans increased by $68.1 million (1.20%) quarterly to reach $5.77 billion, with diversified growth across various loan categories.

What was First Mid Bancshares' asset quality in Q2 2025?

FMBH maintained strong asset quality with a non-performing loans ratio of 0.38%, an allowance for credit losses ratio of 1.23%, and nonperforming assets to total assets ratio of 0.31%.