[10-Q] First Mid Bancshares, Inc. Quarterly Earnings Report

Rhea-AI Filing Summary

First Mid Bancshares (FMBH) Q2 2025 10-Q snapshot: Net income climbed to $23.4 m from $19.7 m (+19% YoY) and diluted EPS reached $0.98 (+19%). Net interest income rose 13% to $63.9 m as deposit and borrowing costs fell 7%, outpacing a 5% rise in interest income. Credit provisioning increased to $2.6 m (1 H-25: $4.2 m) but remains modest at ≈0.18% of average loans.

Total other revenue grew 5% to $23.6 m, led by insurance commissions (+20%) and card fees; service charges softened. Operating expenses advanced 7% on higher compensation and professional fees, keeping efficiency broadly stable.

Balance-sheet trends remain constructive: loans expanded 2% YTD to $5.76 bn; deposits advanced 2% to $6.19 bn with non-interest-bearing mix at 21%. Allowance coverage stands at 1.24% of loans. Book value per share improved ~6% YTD to $37.27 as unrealized losses on the AFS portfolio shrank by $11.7 m but still total $130.7 m (pretax).

Liquidity strengthened—cash & equivalents rose to $190 m (+57% since year-end) aided by $68.8 m operating and $106 m financing cash inflow. Capital actions included a $0.24/sh dividend ($5.7 m) and $8.4 m subordinated debt repayment. The company reports no material litigation and, after adopting ASU 2023-07, continues to operate as a single segment.

Positive

• EPS growth: Diluted EPS rose 19% YoY to $0.98, outpacing many regional peers.
• Net interest income up 13% driven by lower funding costs despite higher rates.
• Deposit and loan growth of ~2% each since year-end signals solid franchise momentum.
• Book value per share +6% YTD as AOCI loss narrowed by $11.7 m.
• Liquidity strength: Cash & equivalents up 57% to $190 m.

Negative

• Provision for credit losses up 137% YoY to $2.6 m, indicating emerging credit caution.
• Operating expenses +7% YoY, pressuring efficiency.
• Unrealized AFS losses still sizable at $130.7 m after tax, exposing rate-risk.
• Interest income growth modest (+5%) versus expense control—future margin gains may narrow.

Insights

Financial Analyst

TL;DR: Solid quarter—EPS +19%, NII up, deposits stable; credit costs tick higher but remain low.

FMBH delivered double-digit EPS and NII growth despite a challenging rate backdrop. Lower funding costs—likely mix-shift toward core deposits—drove a 140 bp spread improvement versus interest expense. Modest loan and deposit expansion shows franchise stickiness without aggressive pricing. Fee income breadth (insurance, wealth, card) adds diversification. Elevated opex is typical for mid-cycle wage pressure, yet the efficiency ratio stays near peer medians. Tangible book growth, helped by narrowing AOCI, boosts capital flexibility for buybacks or M&A. Overall trajectory is positive; valuation catalysts include further deposit repricing relief and runoff of AFS losses.

Risk Analyst

TL;DR: Credit metrics benign, but watch rising provisions and large AFS unrealized loss.

The provision jump to $2.6 m hints at forward-looking reserve builds amid economic uncertainty; however, ACL/loans of 1.24% is prudent for a largely secured portfolio. Non-performing asset data isn’t disclosed here, so trend confirmation is pending. The $179 m gross unrealized loss on AFS securities (2.3% of assets) still poses rate-risk to capital, although OCI improved this quarter. Liquidity appears robust with $190 m cash and active FHLB capacity, yet deposit beta vigilance remains important. Subordinated debt repayment marginally lowers leverage but also reduces interest expense. Net risk profile: manageable but sensitive to rate and credit cycles.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

Or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________to _______________.

Commission file number 001-36434

FIRST MID BANCSHARES, INC.

(Exact name of Registrant as specified in its charter)

Delaware	37-1103704
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)

1421 Charleston Avenue
Mattoon, Illinois	61938
(Address of principal executive offices)	(Zip code)

(217) 234-7454

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	FMBH	NASDAQ Global Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☒		Accelerated filer ☐
Non-accelerated filer ☐		Smaller reporting company ☐
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

As of August 8, 2025, 23,997,367 common shares, $4.00 par value, were outstanding.

PART I

ITEM 1. FINANCIAL STATEMENTS

First Mid Bancshares, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)		June 30, 2025				December 31, 2024
Assets
Cash and due from banks:
Non-interest-bearing		$	117,783			$	92,112
interest-bearing			72,158				29,029
Federal funds sold			76				75
Cash and cash equivalents			190,017				121,216
Certificates of deposit			2,030				3,500
Investment securities:
Available-for-sale, at fair value (amortized cost of $1,255,703 and $1,257,436 at June 30, 2025 and December 31, 2024, respectively)			1,076,841				1,063,292
Held-to-maturity, at amortized cost (estimated fair value of $2,287 and $2,279 at June 30, 2025 and December 31, 2024, respectively)			2,287				2,279
Equity securities, at fair value			4,543				4,439
Loans held for sale			7,359				6,614
Loans			5,759,640				5,665,848
Less allowance for credit losses			(71,160	)			(70,182	)
Net loans			5,688,480				5,595,666
Interest receivable			38,001				38,639
Other real estate owned			1,670				2,179
Premises and equipment, net			97,740				100,234
Goodwill, net			203,391				203,391
Intangible assets, net			52,156				58,515
Bank owned life insurance			172,333				170,854
Right of use lease assets			13,152				13,861
Tax assets			58,700				66,858
Other assets			71,775				68,197
Total assets		$	7,680,475			$	7,519,734
Liabilities and stockholders’ equity
Deposits:
Non-interest-bearing		$	1,321,446			$	1,329,155
interest-bearing			4,868,753				4,727,941
Total deposits			6,190,199				6,057,096
Securities sold under agreements to repurchase			193,941				204,122
Interest payable			6,724				5,280
FHLB borrowings			245,000				242,520
Junior subordinated debentures, net			24,384				24,280
Subordinated debt, net			79,590				87,472
Lease liabilities			13,590				14,190
Other liabilities			32,907				38,383
Total liabilities			6,786,335				6,673,343
Stockholders’ equity:
Common stock ($4 par value; authorized 45,000,000 shares; issued 24,657,394 and 24,564,356 shares in 2025 and 2024, respectively; outstanding 23,988,845 and 23,895,807 shares in 2025 and 2024, respectively)			100,630				100,258
Additional paid-in capital			516,495				512,810
Retained earnings			429,342				395,189
Deferred compensation			1,028				2,756
Accumulated other comprehensive loss			(130,710	)			(142,383	)
Treasury stock, at cost (668,549 shares in 2025 and 2024)			(22,645	)			(22,239	)
Total stockholders’ equity			894,140				846,391
Total liabilities and stockholders’ equity		$	7,680,475			$	7,519,734

See accompanying notes to unaudited condensed consolidated financial statements.

2

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Income (unaudited)

(In thousands, except per share data)

		Three months ended								Six months ended
		June 30,								June 30,
(In thousands, except per share data)		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 certificates of deposit			28				43				64				63
Interest on federal funds sold			—				8				1				25
Interest on deposits with other financial institutions			1,694				1,667				2,521				4,074
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 FHLB borrowings			2,043				2,248				3,850				4,562
Interest on other borrowings			—				—				24				—
Interest on junior subordinated debentures			464				537				932				1,079
Interest on subordinated debentures			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
Other 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
Securities losses, net			—				(156	)			(181	)			(156	)
Mortgage banking revenue, net			1,070				1,038				1,781				1,744
ATM/debit card revenue			4,636				4,281				8,282				8,336
Bank owned life insurance			1,206				1,192				2,893				2,313
Other			452				904				816				2,009
Total other income			23,593				22,422				48,457				46,900
Other 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 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
Stationery and supplies			367				370				798				761
Legal and professional			2,757				2,536				5,833				4,985
ATM/debit card			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 other 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 data:
Basic net income per common share		$	0.98			$	0.83			$	1.91			$	1.69
Diluted net income per common share			0.98				0.82				1.90				1.68

See accompanying notes to unaudited condensed consolidated financial statements.

3

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Comprehensive Income (unaudited)

		Three months ended								Six months ended
		June 30,								June 30,
(In thousands)		2025				2024				2025				2024
Net income		$	23,438			$	19,745			$	45,609			$	40,248
Other comprehensive income (loss)
Unrealized gains (losses) on available-for-sale securities, net of tax benefit (expense) of ($1,744) and ($208) for three months ended June 30, 2025 and 2024, respectively and ($4,338) and $4,017 for the six months ended June 30, 2025 and 2024, respectively			4,640				556				11,542				(10,684	)
Less: reclassification adjustment for realized losses included in net income, net of tax benefit of $0 and $43 for three months ended June 30, 2025 and 2024, respectively and $50 and $43 for the six months ended June 30, 2025 and 2024, respectively			—				(113	)			(131	)			(113	)
Other comprehensive income (loss), net of taxes			4,640				669				11,673				(10,571	)
Comprehensive income		$	28,078			$	20,414			$	57,282			$	29,677

See accompanying notes to unaudited condensed consolidated financial statements.

4

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

For the three months ended June 30, 2025 and 2024

(In thousands)		Common Stock				Additional Paid-In- Capital				Retained Earnings				Deferred Compensation				Accumulated Other Comprehensive Income (Loss)				Treasury Stock				Total
March 31, 2025		$	100,602			$	515,975			$	411,633			$	509			$	(135,350	)		$	(22,420	)		$	870,949
Net income			—				—				23,438				—				—				—				23,438
Other comprehensive income, net tax			—				—				—				—				4,640				—				4,640
Cash dividends on common stock (.24/share)			—				—				(5,729	)			—				—				—				(5,729	)
Forfeiture of 150 restricted shares pursuant to the 2017 stock incentive plan			—				(6	)			—				—				—				—				(6	)
Issuance of 7,079 common shares pursuant to the employee stock purchase plan			28				182				—				—				—				—				210
Grant of restricted units pursuant to 2017 stock incentive plan			—				279				—				—				—				—				279
Deferred compensation			—				—				—				(47	)			—				(225	)			(272	)
Vested restricted shares/units compensation expense			—				65				—				566				—				—				631
June 30, 2025		$	100,630			$	516,495			$	429,342			$	1,028			$	(130,710	)		$	(22,645	)		$	894,140
March 31, 2024		$	100,166			$	511,785			$	353,694			$	832			$	(147,667	)		$	(20,858	)		$	797,952
Net income			—				—				19,745				—				—				—				19,745
Other comprehensive income, net tax			—				—				—				—				669				—				669
Cash dividends on common stock (.23/share)			—				—				(5,472	)			—				—				—				(5,472	)
Forfeiture of 384 restricted shares pursuant to the 2017 stock incentive plan			(2	)			(11	)			—				—				—				—				(13	)
Issuance of 7,323 common shares pursuant to the employee stock purchase plan			30				174				—				—				—				—				204
Grant of restricted units pursuant to 2017 stock incentive plan			—				174				—				—				—				—				174
Deferred compensation			—				—				—				62				—				(223	)			(161	)
Vested restricted shares/units compensation expense			—				59				—				488				—				—				547
June 30, 2024		$	100,194			$	512,181			$	367,967			$	1,382			$	(146,998	)		$	(21,081	)		$	813,645

5

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

For the six months ended June 30, 2025

(In thousands)		Common Stock				Additional Paid-In- Capital				Retained Earnings				Deferred Compensation				Accumulated Other Comprehensive Loss				Treasury Stock				Total
December 31, 2024		$	100,258			$	512,810			$	395,189			$	2,756			$	(142,383	)		$	(22,239	)		$	846,391
Net income			—				—				45,609				—				—				—				45,609
Other comprehensive income, net tax			—				—				—				—				11,673				—				11,673
Cash dividends on common stock (0.48/share)			—				—				(11,456	)			—				—				—				(11,456	)
Issuance of 73,468 restricted shares pursuant to 2017 stock incentive plan, net of forfeitures			294				2,569				—				—				—				—				2,863
Issuance of 5,600 common shares pursuant to 2017 stock incentive plan			22				196				—				—				—				—				218
Issuance of 13,970 common shares pursuant to the employee stock purchase plan			56				370				—				—				—				—				426
Deferred compensation			—				—				—				(2,826	)			—				(406	)			(3,232	)
Grant of restricted units pursuant to 2017 stock incentive plan			—				2,070				—				—				—				—				2,070
Release of restricted units pursuant to 2017 stock incentive plan			—				(1,634	)			—				—				—				—				(1,634	)
Vested restricted shares/units compensation expense			—				114				—				1,098				—				—				1,212
June 30, 2025		$	100,630			$	516,495			$	429,342			$	1,028			$	(130,710	)		$	(22,645	)		$	894,140

6

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)

For the six months ended June 30, 2024

(In thousands)		Common Stock				Additional Paid-In- Capital				Retained Earnings				Deferred Compensation				Accumulated Other Comprehensive Loss				Treasury Stock				Total
December 31, 2023		$	99,919			$	509,314			$	338,662			$	2,629			$	(136,427	)		$	(20,893	)		$	793,204
Net income			—				—				40,248				—				—				—				40,248
Other comprehensive loss, net tax			—				—				—				—				(10,571	)			—				(10,571	)
Cash dividends on common stock (0.46/share)			—				—				(10,943	)			—				—				—				(10,943	)
Issuance of 47,196 restricted shares pursuant to 2017 stock incentive plan, net of forfeitures			189				1,390				—				—				—				—				1,579
Issuance of 5,600 common shares pursuant to 2017 stock incentive plan			22				166				—				—				—				—				188
Issuance of 15,935 common shares pursuant to the employee stock purchase plan			64				334				—				—				—				—				398
Deferred compensation			—				—				—				(2,226	)			—				(188	)			(2,414	)
Grant of restricted units pursuant to 2017 stock incentive plan			—				1,485				—				—				—				—				1,485
Release of restricted units pursuant to 2017 stock incentive plan			—				(617	)			—				—				—				—				(617	)
Vested restricted shares/units compensation expense			—				109				—				979				—				—				1,088
June 30, 2024		$	100,194			$	512,181			$	367,967			$	1,382			$	(146,998	)		$	(21,081	)		$	813,645

See accompanying notes to unaudited condensed consolidated financial statements.

7

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

		Six months ended June 30,
(In thousands)		2025				2024
Cash flows from operating activities:
Net income		$	45,609			$	40,248
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses			4,219				726
Depreciation, amortization and accretion, net			9,864				10,348
Change in cash surrender value of bank owned life insurance			(2,406	)			(2,313	)
Gain on death benefit paid from bank owned life insurance			(487	)			—
Stock-based compensation expense			1,359				1,185
Operating lease payments			(1,639	)			(1,672	)
Loss on investment securities, net			181				156
Loss (gain) on sales and write-downs of other real estate owned, net			88				(86	)
Loss on sale of premises and equipment			79				—
Gain on sale of loans held for sale, net			(1,676	)			(1,179	)
Loss (gain) on repayment of subordinated debentures			289				(100	)
Gain on repayment of FHLB advances			(85	)			—
Decrease (increase) in accrued interest receivable			638				(2,244	)
Increase in accrued interest payable			1,635				62
Origination of loans held for sale			(74,148	)			(45,536	)
Proceeds from sale of loans held for sale			75,079				42,699
Decrease in other assets			2,232				18,037
Decrease in other liabilities			(5,200	)			(7,311	)
Net cash provided by operating activities			55,631				53,020
Cash flows from investing activities:
Proceeds from maturities of certificates of deposit			1,470				—
Purchases of certificates of deposit			—				(2,275	)
Proceeds from sales of securities available-for-sale			8,291				15,875
Proceeds from maturities of securities available-for-sale			60,018				44,651
Purchases of securities available-for-sale			(67,737	)			(8,972	)
Purchase of securities held-to-maturity			(38	)			(21	)
Net decrease (increase) in loans			(97,005	)			22,419
Purchases of premises and equipment			(3,713	)			(2,595	)
Proceeds from sale of premises and equipment			3,718				—
Proceeds from sales of other real property owned			458				182
Proceeds from bank owned life insurance death benefit			1,414				—
Net cash provided by (used in) investing activities			(93,124	)			69,264
Cash flows from financing activities:
Net increase (decrease) in deposits			133,103				(7,880	)
Decrease in repurchase agreements			(10,181	)			(7,766	)
Proceeds from FHLB advances			125,000				75,000
Repayment of FHLB advances			(122,435	)			(75,000	)
Proceeds from short-term debt			4,000				—
Repayment of short-term debt			(4,000	)			—
Repayment of subordinated debenture			(8,381	)			(3,865	)
Proceeds from issuance of common stock			644				586
Dividends paid on common stock			(11,456	)			(10,943	)
Net cash provided by (used in) financing activities			106,294				(29,868	)
Increase in cash and cash equivalents			68,801				92,416
Cash and cash equivalents at beginning of period			121,216				143,064
Cash and cash equivalents at end of period		$	190,017			$	235,480

See accompanying notes to unaudited condensed consolidated financial statements.

8

First Mid Bancshares, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

		Six months ended June 30,
(In thousands)		2025				2024
Supplemental disclosures of cash flow information
Cash paid during the period for:
Interest		$	56,244			$	64,142
Income taxes, net of refunds			8,133				(657	)
Supplemental disclosures of noncash investing and financing activities
Loans transferred to other real estate		$	28			$	456
Initial recognition of right-of-use assets			713				2,109
Initial recognition of lease liabilities			713				2,109

9

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 1 -- Basis of Accounting and Consolidation

The unaudited condensed consolidated financial statements include the accounts of First Mid Bancshares, Inc. (“Company”) and its wholly owned subsidiaries: First Mid Bank & Trust, N.A. (“First Mid Bank”), First Mid Wealth Management Company, First Mid Insurance Group, Inc. (“First Mid Insurance”), and First Mid Captive, Inc. All significant intercompany balances and transactions have been eliminated in consolidation. The financial information reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the results of the interim periods ended June 30, 2025 and 2024, and all such adjustments are of a normal recurring nature. Certain amounts in the prior year’s consolidated financial statements may have been reclassified to conform to the June 30, 2025 presentation and there was no impact on net income or stockholders’ equity. The results of the interim period ended June 30, 2025 are not necessarily indicative of the results expected for the year ending December 31, 2025. The 2024 year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America.

The unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X and do not include all the information required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements and related footnote disclosures although the Company believes that the disclosures made are adequate to make the information not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2024 Annual Report on Form 10-K.

Mid Rivers Insurance Group, Inc.

During the quarter ended September 30, 2024, Mid Rivers Insurance Group, Inc. was acquired by the Company for a purchase price of $10.1 million and immediately merged into First Mid Insurance Group.

Website

The Company maintains a website at www.firstmid.com. All periodic and current reports of the Company and amendments to these reports filed with the Securities and Exchange Commission (“SEC”) can be accessed, free of charge, through this website as soon as reasonably practicable after these materials are filed with the SEC.

General Litigation

The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management that the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company.

Segment Reporting

The Company operates as a single segment entity for financial reporting purposes and has adopted ASU 2023-07 during the year ended December 31, 2024. The Chief Financial and Risk Officer, Jordan D. Read (CFO), serves as the Company’s chief operating decision maker (CODM). The CODM allocates resources and assesses performance of the Company based on the consolidated performance, excluding all significant intercompany balances and transactions, of the Company and its wholly owned subsidiaries and does not significantly utilize disaggregated segment financial information for decision making and resource allocation. Management has reviewed the requirements of ASU 2023-07 and has determined that no additional segment disclosures are required. Specifically,

•the Company does not use the tracked performance on the disaggregated segment level for decision-making or resource allocation purposes,

•no significant segment-specific expenses or performance metrics are used internally for decision-making or resource allocation purposes, and

•the level of financial consolidation presented in these financial statements aligns with the CODM’s internal reporting and decision-making process.

Based on this assessment the Company’s financial statement disclosures fully comply with ASC 2023-07, and no additional qualitative segment disclosures are necessary.

10

Stock Plans

At the Annual Meeting of Stockholders held April 26, 2017, the stockholders approved the First Mid-Illinois Bancshares, Inc. 2017 Stock Incentive Plan (“SI Plan”). The SI Plan was implemented to succeed the Company’s 2007 Stock Incentive Plan, which had a ten-year term. The SI Plan is intended to provide a means whereby directors, employees, consultants and advisors of the Company and its subsidiaries may sustain a sense of proprietorship and personal involvement in the continued development and financial success of the Company and its subsidiaries, thereby advancing the interests of the Company and its stockholders. Accordingly, directors and selected employees, consultants and advisors may be provided the opportunity to acquire shares of common stock of the Company on the terms and conditions established in the SI Plan.

Following the stockholders’ approval at the 2025 annual meeting of the Company, a maximum of 1,000,000 shares of common stock may be issued under the SI Plan. There have been no stock options awarded under any Company plan since 2008. The Company has awarded 79,635 and 53,766 shares of restricted stock during the six months ended June 30, 2025 and 2024, respectively, and 53,130 and 39,150 restricted stock units during the six months ended June 30, 2025 and 2024, respectively.

Employee Stock Purchase Plan

At the Annual Meeting of Stockholders held April 25, 2018, the stockholders approved the First Mid-Illinois Bancshares, Inc. Employee Stock Purchase Plan (“ESPP”). The ESPP is intended to promote the interests of the Company by providing eligible employees with the opportunity to purchase shares of common stock of the Company at a 15% discount through payroll deductions. The ESPP is also intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code.

A maximum of 600,000 shares of common stock may be issued under the ESPP. During the six months ended June 30, 2025 and 2024, 13,970 shares and 15,935 shares, respectively, were issued pursuant to the ESPP.

Captive Insurance Company

First Mid Captive, Inc. (the “Captive"), a wholly owned subsidiary of the Company which was formed and began operations in December 2019, is a Nevada-based captive insurance company. The Captive insures against certain risks unique to operations of the Company and its subsidiaries for which insurance may not be currently available or economically feasible in today's insurance marketplace. The Captive pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. The Captive is subject to regulations of the State of Nevada and undergoes periodic examinations by the Nevada Division of Insurance. It has elected to be taxed under Section 831(b) of the Internal Revenue Code. Pursuant to Section 831(b), if gross premiums do not exceed $2.85 million, then the Captive is taxable solely on its investment income. The Captive is included in the Company's consolidated financial statements and its federal income return.

Accumulated Other Comprehensive Loss

The components of accumulated other comprehensive loss included in stockholders’ equity as of June 30, 2025 and December 31, 2024 are as follows (in thousands):

		Unrealized Losses on Securities
June 30, 2025
Net unrealized losses on securities available-for-sale		$	(178,862	)
Tax benefit			48,152
Balance at June 30, 2025		$	(130,710	)
December 31, 2024
Net unrealized losses on securities available-for-sale		$	(194,144	)
Tax benefit			51,761
Balance at December 31, 2024		$	(142,383	)

11

Amounts reclassified from accumulated other comprehensive loss and the affected line items in the statements of income during the three and six months ended June 30, 2025 and 2024, were as follows (in thousands):

		Amounts Reclassified from Other Comprehensive Loss
		Three months ended								Six months ended
		June 30,								June 30,
		2025				2024				2025				2024				Affected Line Item in the Statements of Income
Realized loss on available-for-sale securities, net		$	—			$	(156	)		$	(181	)		$	(156	)		Securities losses, net
Tax effect			—				43				50				43			Income taxes
Total reclassifications out of accumulated other comprehensive loss		$	—			$	(113	)		$	(131	)		$	(113	)		Net reclassified amount

See “Note 3 – Investment Securities” for more detailed information regarding unrealized losses on available-for-sale securities.

New Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board issued ASU No. 2023-09, Income Tax (Topic 740): Improvements to Income Tax Disclosures. The amendments expand the disclosure requirements of income taxes, primarily related to the income tax rate reconciliation and income taxes paid with the intention to enhance transparency and decision usefulness of income tax disclosures. The amendments are effective for the fiscal years beginning after December 15, 2024 10-K filings. Early adoption was permitted but not applied. The adoption of this accounting pronouncement will have no impact on the Financial Statements aside from additional disclosures presented in the Notes to Consolidated Financial Statements in the year ending December 31, 2025 10-K filing.

Note 2 -- Earnings Per Share

Basic net income per common share available to common stockholders is calculated as net income less preferred stock dividends divided by the weighted average number of common shares outstanding. Diluted net income per common share available to common stockholders is computed using the weighted average number of common shares outstanding, increased by the Company’s stock options, unless anti-dilutive.

The components of basic and diluted net income per common share available to common stockholders for the three and six months ended June 30, 2025 and 2024 were as follows:

		Three months ended								Six months ended
		June 30,								June 30,
		2025				2024				2025				2024
Basic net income per common share
Available to common stockholders:
Net income		$	23,438,000			$	19,745,000			$	45,609,000			$	40,248,000
Weighted average common shares outstanding			23,867,592				23,896,210				23,863,229				23,884,472
Basic earnings per common share		$	0.98			$	0.83			$	1.91			$	1.69
Diluted net income per common share
Available to common stockholders:
Net income applicable to diluted earnings per share		$	23,438,000			$	19,745,000			$	45,609,000			$	40,248,000
Weighted average common shares outstanding			23,867,592				23,896,210				23,863,229				23,884,472
Dilutive potential common shares: restricted stock awarded			121,382				101,942				110,954				94,772
Diluted weighted average common shares outstanding			23,988,974				23,998,152				23,974,183				23,979,244
Diluted earnings per common share		$	0.98			$	0.82			$	1.90			$	1.68

12

There were no shares excluded when computing diluted earnings per share for the three and six months ended June 30, 2025 and 2024 because they were anti-dilutive.

Note 3 -- Investment Securities

The amortized cost, gross unrealized gains and losses and estimated fair values for available-for-sale and held-to-maturity securities by major security type at June 30, 2025 and December 31, 2024 were as follows (in thousands):

		Amortized Cost				Gross Unrealized Gains				Gross Unrealized (Losses)				Fair Value
June 30, 2025
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	199,299			$	—			$	(15,683	)		$	183,616
Obligations of states and political subdivisions			325,609				202				(64,487	)			261,324
Mortgage-backed securities: GSE residential			685,640				1,277				(98,206	)			588,711
Other securities			45,155				—				(1,965	)			43,190
Total available-for-sale		$	1,255,703			$	1,479			$	(180,341	)		$	1,076,841
Held-to-maturity:
Other investments		$	2,287			$	—			$	—			$	2,287
Total held-to-maturity		$	2,287			$	—			$	—			$	2,287
December 31, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	212,513			$	3			$	(21,158	)		$	191,358
Obligations of states and political subdivisions			324,046				135				(56,441	)			267,740
Mortgage-backed securities: GSE residential			653,760				552				(114,570	)			539,742
Other securities			67,117				—				(2,665	)			64,452
Total available-for-sale		$	1,257,436			$	690			$	(194,834	)		$	1,063,292
Held-to-maturity:
Other investments		$	2,279			$	—			$	—			$	2,279
Total held-to-maturity		$	2,279			$	—			$	—			$	2,279

The Company also had $4.5 million and $4.4 million of equity securities, at fair value, as of June 30, 2025 and December 31, 2024, respectively. The Company's held-to-maturity securities are annuities for which the risk of loss is minimal. As such, as of June 30, 2025, the Company did not record an allowance for credit losses on its held-to-maturity securities.

Realized gains and losses resulting from sales of securities were as follows during the three and six months ended June 30, 2025 and 2024 (in thousands):

		Three months ended								Six months ended
		June 30,								June 30,
		2025				2024				2025				2024
Gross gains		$	—			$	35			$	—			$	(35	)
Gross losses			—				(191	)			(181	)			(191	)

13

The following table indicates the expected maturities of investment securities classified as available-for-sale presented at fair value, and held-to-maturity presented at amortized cost, at June 30, 2025 and the weighted average yield for each range of maturities (dollars in thousands):

		One year or less				After 1 through 5 years				After 5 through 10 years				After ten years				Total
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	173,774			$	9,842			$	—			$	—			$	183,616
Obligations of state and political subdivisions			35,798				134,711				88,303				2,512				261,324
Mortgage-backed securities: GSE residential			28				7,914				34,567				546,202				588,711
Other securities			35,238				7,118				834				—				43,190
Total available-for-sale investments		$	244,838			$	159,585			$	123,704			$	548,714			$	1,076,841
Weighted average yield			2.02	%			2.25	%			2.28	%			2.13	%			2.14	%
Full tax-equivalent yield			2.14	%			2.77	%			2.69	%			2.14	%			2.31	%
Held to maturity:
Other investments		$	—			$	—			$	—			$	2,287			$	2,287
Total held-to-maturity		$	—			$	—			$	—			$	2,287			$	2,287
Weighted average yield			—	%			—	%			—	%			—	%			—	%
Full tax-equivalent yield			—	%			—	%			—	%			—	%			—	%

The weighted average yields are calculated based on the amortized cost and effective yields weighted for the scheduled maturity of each security. Tax-equivalent yields have been calculated using a 21% tax rate. With the exception of obligations of the U.S. Treasury and other U.S. government agencies and corporations, there were no investment securities of any single issuer, which the book value exceeded 10% of stockholders' equity at June 30, 2025.

Investment securities carried at approximately $492.6 million and $632.9 million at June 30, 2025 and December 31, 2024, respectively, were pledged to secure public deposits and repurchase agreements and for other purposes as permitted or required by law.

The following table presents the aging of gross unrealized losses and fair value by investment category as of June 30, 2025 and December 31, 2024 (in thousands):

		Less than 12 months								12 months or more								Total
		Fair Value				Unrealized Losses				Fair Value				Unrealized Losses				Fair Value				Unrealized Losses
June 30, 2025
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	1,583			$	(2	)		$	182,033			$	(15,681	)		$	183,616			$	(15,683	)
Obligations of states and political subdivisions			8,584				(323	)			242,507				(64,164	)			251,091				(64,487	)
Mortgage-backed securities: GSE residential			12,212				(155	)			495,160				(98,051	)			507,372				(98,206	)
Other securities			—				—				40,439				(1,965	)			40,439				(1,965	)
Total		$	22,379			$	(480	)		$	960,139			$	(179,861	)		$	982,518			$	(180,341	)
December 31, 2024
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	1,340			$	—			$	189,327			$	(21,158	)		$	190,667			$	(21,158	)
Obligations of states and political subdivisions			20,349				(1,248	)			241,502				(55,193	)			261,851				(56,441	)
Mortgage-backed securities: GSE residential			1,135				(18	)			511,746				(114,552	)			512,881				(114,570	)
Other securities			—				—				58,702				(2,665	)			58,702				(2,665	)
Total		$	22,824			$	(1,266	)		$	1,001,277			$	(193,568	)		$	1,024,101			$	(194,834	)

14

At June 30, 2025, there were five hundred forty-three available-for-sale securities with a fair value of $960.1 million and unrealized losses of $179.9 million in a continuous unrealized loss position for twelve months or more. At December 31, 2024, there were five hundred fifty-seven available-for-sale securities with a fair value of $1.0 billion and unrealized losses of $193.6 million in a continuous unrealized loss position for twelve months or more.

At June 30, 2025 and December 31, 2024, there were no held-to-maturity securities in a continuous unrealized loss position for twelve months or more.

The Company does not consider available-for-sale securities with unrealized losses at June 30, 2025, to be experiencing credit losses and recognized no resulting allowance for credit losses. The Company does not intend to sell a significant amount of these investments, and it is more likely than not that the Company will not be required to sell these investments before recovery of the amortized cost basis, which may be the maturity dates of the securities. The unrealized losses occurred as a result of changes in interest rates, market spreads and market conditions subsequent to purchase.

Note 4 – Loans and Allowance for Credit Losses

Loans are stated at amortized cost net of an allowance for credit losses. Amortized cost is the unpaid principal net of unearned premiums and discounts, and net deferred origination fees and costs. Deferred loan origination fees are reduced by loan origination costs and are amortized to interest income over the life of the related loan using methods that approximated the effective interest rate method. Interest on substantially all loans is credited to income based on the principal amount outstanding.

A summary of loans at June 30, 2025 and December 31, 2024 follows (in thousands):

		June 30, 2025				December 31, 2024
Construction and land development		$	298,953			$	236,258
Agricultural real estate			382,120				391,436
1-4 family residential properties			500,771				502,243
Multifamily residential properties			361,605				334,032
Commercial real estate			2,414,993				2,442,627
Loans secured by real estate			3,958,442				3,906,596
Agricultural loans			305,640				239,138
Commercial and industrial loans			1,328,315				1,340,865
Consumer loans			41,919				54,481
All other loans			164,008				169,232
Total gross loans			5,798,324				5,710,312
Less: loans held for sale			7,359				6,614
			5,790,965				5,703,698
Less:
Net deferred loan fees, premiums and discounts			31,325				37,850
Allowance for credit losses			71,160				70,182
Net loans		$	5,688,480			$	5,595,666

Loans expected to be sold are classified as held for sale in the consolidated financial statements and are recorded at fair value, taking into consideration future commitments to sell the loans. These loans are primarily for 1-4 family residential properties.

Accrued interest on loans, which is excluded from the amortized cost of the balances above, totaled $33.0 million and $33.7 million at June 30, 2025 and December 31, 2024, respectively.

Most of the Company’s business activities are with customers located near the Company's branch locations in Illinois, Missouri, Texas, and Wisconsin. At June 30, 2025, the Company’s loan portfolio included $687.8 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $584.5 million was concentrated in corn and other grain farming. Total loans to borrowers whose businesses are directly related to agriculture increased $57.2 million from $630.6 million at December 31, 2024 due to an increase in the Company's direct merchant financing portfolio through the utilization of additional vendors. Loans concentrated in corn and other grain farming increased $76.9 million from $507.6 million at December 31, 2024. The Company's underwriting practices include collateralization of loans. Any extended period of low commodity prices, drought conditions, significantly reduced yields on crops and/or reduced levels of government assistance to the agricultural industry could result in an increase in the level of problem agriculture loans and potentially result in loan losses within the agricultural portfolio.

15

In addition, the Company has $221.5 million of loans to motels and hotels. The performance of these loans is dependent on borrower specific circumstances as well as the general level of business and personal travel within the region. While the Company adheres to sound underwriting standards, a prolonged period of reduced business or personal travel could result in an increase in nonperforming loans to this business segment and potentially in loan losses. The Company also has $1.0 billion of loans to lessors of non-residential buildings, and $616.2 million of loans to lessors of residential buildings and dwellings.

The structure of the Company’s loan approval process is based on progressively larger lending authorities granted to individual loan officers, loan committees, and ultimately the board of directors. Outstanding balances to one borrower or affiliated borrowers are limited by federal regulation and all borrowers are below regulatory thresholds. The Company can occasionally have outstanding balances to one borrower up to but not exceeding the regulatory threshold should underwriting guidelines warrant. Most of the Company’s loans are to businesses located in the geographic market areas served by the Company’s branch bank system. Additionally, a significant portion of the collateral securing the loans in the portfolio is located within the Company’s primary geographic footprint. In general, the Company adheres to loan underwriting standards consistent with industry guidelines for all loan segments.

The Company’s lending can be summarized into the following primary areas:

Commercial Real Estate Loans. Commercial real estate loans are generally comprised of loans to small business entities to purchase or expand structures in which the business operations are housed, loans to owners of real estate who lease space to non-related commercial entities, loans for construction and land development, loans to hotel and motel operators, and loans to owners of multi-family residential structures, such as apartment buildings. Commercial real estate loans are underwritten based on historical and projected cash flows of the borrower and secondarily on the underlying real estate pledged as collateral on the debt. For the various types of commercial real estate loans, minimum criteria have been established within the Company’s loan policy regarding debt service coverage while maximum limits on loan-to-value and amortization periods have been defined. Maximum loan-to-value ratios range from 65% to 85% depending upon the type of real estate collateral, while the desired minimum debt coverage ratio is 1.20x to 1.35x. Amortization periods for commercial real estate loans are generally limited to twenty to thirty years, depending on the collateral type and loan-to-value. The Company’s commercial real estate portfolio is below the thresholds that would designate a concentration in commercial real estate lending, as established by the federal banking regulators.

The following table represents the gross commercial real estate loans by property type as of June 30, 2025 (in thousands):

		June 30, 2025				December 31, 2024
Commercial real estate
Owner occupied		$	763,222			$	782,231
Non-owner occupied
Shopping centers and malls			231,879				244,000
Industrial and warehouse			227,174				218,175
Hotels and motels			206,317				206,425
Skilled nursing facility			160,103				172,834
Office			154,472				145,006
Assisted living facility			124,781				119,416
Retail			112,169				110,850
RV parks and campgrounds			101,807				84,346
Medical office			79,898				88,532
Other property types			253,171				270,812
Total commercial real estate		$	2,414,993			$	2,442,627

Commercial and Industrial Loans. Commercial and industrial loans are primarily comprised of working capital loans used to purchase inventory and fund accounts receivable that are secured by business assets other than real estate. These loans are generally written for one year or less. Also, equipment financing is provided to businesses with these loans generally limited to 80% of the value of the collateral and amortization periods limited to seven years. Commercial loans are often accompanied by a personal guaranty of the principal owners of a business. Like commercial real estate loans, the underlying cash flow of the business is the primary consideration in the underwriting process. The financial condition of commercial borrowers is monitored at least annually with the type of financial information required determined by the size of the relationship. Measures employed by the Company for businesses with higher risk profiles include the use of government- assisted lending programs through the Small Business Administration and U.S. Department of Agriculture.

Agricultural and Agricultural Real Estate Loans. Agricultural loans are generally comprised of seasonal operating lines to grain farmers to plant and harvest corn and soybeans and term loans to fund the purchase of equipment. Agricultural real estate loans are

16

primarily comprised of loans for the purchase of farmland. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop. Loan-to-value ratios on loans secured by farmland generally do not exceed 80% and have amortization periods ranging from twenty-five to thirty years depending on the loan-to-value. Federal government-assistance lending programs through the Farm Service Agency are used to mitigate the level of credit risk when deemed appropriate.

Residential Real Estate Loans. Residential real estate loans generally include loans for the purchase or refinance of residential real estate properties consisting of one-to-four units and home equity loans and lines of credit. The Company sells most of its long-term fixed rate residential real estate loans to secondary market investors. The Company also releases the servicing of these loans upon sale. Residential real estate loans are typically underwritten to conform to industry standards including criteria for maximum debt-to-income and loan-to-value ratios as well as minimum credit scores. Loans secured by first liens on residential real estate held in the portfolio typically do not exceed 80% of the value of the collateral and have amortization periods of twenty-five years or less. The Company does not originate subprime mortgage loans.

Consumer Loans. Consumer loans are primarily comprised of loans to individuals for personal and household purposes such as the purchase of an automobile or other living expenses. Minimum underwriting criteria have been established that consider credit score, debt-to-income ratio, employment history, and collateral coverage. Typically, consumer loans are set up on monthly payments with amortization periods based on the type and age of the collateral.

Construction and land development loans. Construction and land development loans are generally comprised of loans of all sizes, across many different industries, and can include properties for commercial businesses or land development or for residential use such as multi-family properties. Commercial and land development loans are underwritten based on historical and projected cash flows of the borrower and secondarily on the underlying real estate pledged as collateral on the debt. Construction and land development loans include unique risks that require enhanced diligence by lending personnel. For these loans, documentation requirements have been established within policy and a specific checklist is followed. Additionally, based on the type of construction loan, the policy is also followed to designate the construction and land development loans as high-volatility commercial real estate if the loan meets the criteria. To ensure consistent construction loan monitoring, loans greater than $2,000,000 must be monitored by the Bank’s construction monitoring staff.

The policy also establishes maximum loan-to-value/amortizations, terms, construction periods, cash investments, pre-sale/lease and other requirements and are specific to the type of property including non-farm, non-residential secured loans as well as multi-family, 1-4 family non-owner occupied, land acquisition/development/vacant lot acquisition, and raw land. Maximum loan-to-value ratios range from 65% to 80% depending upon the type of real estate collateral. Amortization periods for construction and land development loans are generally limited to twenty to thirty years, depending on the collateral type and loan-to-value. The Company’s construction and land development portfolio is below the thresholds that would designate a concentration in construction and land development lending, as established by the federal banking regulators.

Other Loans. Other loans consist primarily of loans to municipalities to support community projects such as infrastructure improvements or equipment purchases. Underwriting guidelines for these loans are consistent with those established for commercial loans with the additional repayment source of the taxing authority of the municipality.

Allowance for Credit Losses

The allowance for credit losses represents the Company’s best estimate of the reserve necessary to adequately account for probable losses expected over the remaining contractual life of the assets. The provision for credit losses is the charge against current earnings that is determined by the Company as the amount needed to maintain an adequate allowance for credit losses. In determining the adequacy of the allowance for credit losses, and therefore the provision to be charged to current earnings, the Company relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by the overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by the Company in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates. The Company estimates the appropriate level of allowance for credit losses by evaluating large, individually evaluated loans separately from non-individually evaluated loans.

Individually Evaluated Loans

The Company individually evaluates certain loans for impairment. In general, these loans have been internally identified via the Company’s loan grading system as credits requiring management’s attention due to underlying problems in the borrower’s business

17

or collateral concerns and the loan or loans identified do not share risk characteristics with other loans. This evaluation considers expected future cash flows, the value of collateral and other factors that may impact the borrower’s ability to make payments when due. For loans greater than $250,000, allowance for credit loss is individually measured each quarter using one of three alternatives: (1) the present value of expected future cash flows discounted at the loan’s effective interest rate; (2) the loan’s observable market price, if available; or (3) the fair value of the collateral less costs to sell for collateral dependent loans and loans for which foreclosure is deemed to be probable. A specific allowance is assigned when expected cash flows or collateral are less than the carrying amount of the loan. The carrying value of the loan reflects reductions from prior charge-offs.

Non-Individually Evaluated Loans

Non-individually evaluated loans comprise the vast majority of the Company’s total loan portfolio and include loans in accrual status and those credits not identified as modified loans. A small portion of these loans are considered “criticized” due to the risk rating assigned reflecting elevated credit risk due to characteristics, such as a strained cash flow position, associated with the individual borrowers. Criticized loans are those assigned risk ratings of Special Mention, Substandard, or Doubtful.

To determine the allowance, the loan portfolio is segmented based on similar risk characteristics. The allowance for credit losses is estimated using a discounted cash flow (DCF) methodology. The DCF projects future cash flows over the life of the loan portfolio. Probability of default (PD) and loss given default (LGD) are key components in calculating expected losses in this model. The PD is forecasted using a regression model that determines the likelihood of default with a forward-looking forecast of unemployment rates. The LGD is the percentage of defaulted loans that is ultimately charged off. The allowance is calculated as the net present value of the expected cash flows less the amortized cost basis of the loans. Adjustments to expected losses are made using qualitative factors relevant to each loan segment including merger and acquisition activity, economic conditions, changes in policies, procedures and underwriting, and concentrations. In addition, a forecast, using reasonable and supportable future conditions, is prepared that is used to estimate expected changes to existing and historical conditions in the current period.

The Company also considers specific current economic events occurring globally, in the U.S. and in its local markets. Events considered include the status of global trade agreements, scheduled increases in minimum wage and changes to the minimum salary threshold for overtime provisions, current and projected unemployment rates, current and projected grain and oil prices and economies of local markets where customers work and operate.

Within each pool, risk elements are evaluated that have specific impacts to the borrowers within the pool. These, along with the general risks and events, and the specific lending policies and procedures by loan type described above, are analyzed to estimate the qualitative factors used to adjust the historical loss rates.

During the current period, the following assumptions and factors were considered when determining the historical loss rate and any potential adjustments by loan pool.

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Construction and Land Development Loans. Historical losses in this segment remain very low. While inflationary pressures have caused some risk in this segment, most projects are associated with financially strong borrowers. The qualitative factors for this segment reduced for the quarter due to the segment's outstanding balances compared to management's updated policy concentration thresholds.

Agricultural Real Estate Loans. Historical losses in the segment remain very low. Farmland values have increased over an extended period of time and remained stable over the last year. There was no change to the qualitative factor for this segment.

Residential Real Estate Non-Owner Occupied Loans. The loan segment has remained stable throughout the last several years. Both adversely classified and past dues have been consistent. The qualitative factors for this segment did not materially change for the period.

Residential Real Estate Owner Occupied Loans. At the end of the period, there were a lower percentage of past due loans. The qualitative factors for this segment did not materially change for the period.

HELOC Loans. These loans are a small segment to overall loan balances. In the period, there were no changes to the qualitative factors for this segment.

Commercial Real Estate Owner Occupied Loans. This segment has remained stable, despite macro segment concerns over commercial real estate. The Company has previously increased qualitative factors for those conditions and there were no changes to the qualitative factors for this segment the quarter.

Commercial Real Estate Non-Owner Occupied Loans. This segment includes the Company's largest balances. Qualitative factors for this segment increased for the quarter due to an increase in past due loans for the segment.

Agricultural Loans. Losses in this segment are very low. Commodity prices have remained depressed for an extended period but yields have experienced increases from previous concerns from the weather. The qualitative factors of this segment were reduced in the quarter due to a reduction in past due loans for the segment.

Commercial and Industrial Loans. The qualitative factors for this segment were increased over time due to the repricing of higher rates. Given time has passed, and the outlook is for stable to declining rates, this issue has subsided. Considering this, the qualitative factor was reduced in the period.

Consumer Loans. This segment is a small portion of the Company's loan portfolio. This segment will likely be impacted in the event of a recession that may occur. There were no changes to the qualitative factors for this segment during the quarter.

The following table presents the activity in the allowance for credit losses based on portfolio segment for the three and six months ended June 30, 2025 (in thousands):

		Construction and Land Development				Agricultural Real Estate				1-4 Family Residential Properties				Commercial Real Estate				Agricultural Loans				Commercial and Industrial				Consumer Loans				Total
Three months ended June 30, 2025
Beginning balance		$	3,731			$	1,292			$	3,544			$	32,214			$	1,649			$	26,028			$	1,593			$	70,051
Provision (release) for credit loss expense			335				30				(7	)			1,111				1,287				(203	)			14				2,567
Loans charged off			—				—				(55	)			(70	)			(1,386	)			(489	)			(261	)			(2,261	)
Recoveries collected			—				—				134				3				217				282				167				803
Ending balance		$	4,066			$	1,322			$	3,616			$	33,258			$	1,767			$	25,618			$	1,513			$	71,160
Six months ended June 30, 2025
Beginning balance		$	3,275			$	1,361			$	3,579			$	32,669			$	1,957			$	25,602			$	1,739			$	70,182
Provision (release) for credit loss expense			791				(39	)			(21	)			986				2,096				356				50				4,219
Loans charged off			—				—				(94	)			(408	)			(2,503	)			(712	)			(627	)			(4,344	)
Recoveries collected			—				—				152				11				217				372				351				1,103
Ending balance		$	4,066			$	1,322			$	3,616			$	33,258			$	1,767			$	25,618			$	1,513			$	71,160

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The following tables present the activity in the allowance for credit losses based on portfolio segment for the three and six months ended June 30, 2024 and for the year ended December 31, 2024 (in thousands):

		Construction and Land Development				Agricultural Real Estate				1-4 Family Residential Properties				Commercial Real Estate				Agricultural Loans				Commercial and Industrial				Consumer Loans				Total
Three months ended June 30, 2024
Beginning balance		$	2,701			$	1,358			$	3,778			$	32,537			$	778			$	24,631			$	2,153			$	67,936
Provision for credit loss expense			(55	)			14				(264	)			376				316				624				72				1,083
Loans charged off			—				—				(34	)			—				(209	)			(368	)			(374	)			(985	)
Recoveries collected			—				—				100				5				—				44				129				278
Ending balance		$	2,646			$	1,372			$	3,580			$	32,918			$	885			$	24,931			$	1,980			$	68,312
Six months ended June 30, 2024
Beginning balance		$	2,918			$	1,366			$	4,220			$	31,758			$	705			$	25,450			$	2,258			$	68,675
Provision (release) for credit loss expense			(272	)			6				(688	)			994				441				15				230				726
Loans charged off			—				—				(101	)			—				(261	)			(642	)			(800	)			(1,804	)
Recoveries collected			—				—				149				166				—				108				292				715
Ending balance		$	2,646			$	1,372			$	3,580			$	32,918			$	885			$	24,931			$	1,980			$	68,312
Twelve months ended December 31, 2024
Beginning Balance		$	2,918			$	1,366			$	4,220			$	31,758			$	705			$	25,450			$	2,258			$	68,675
Provision (release) for credit loss expense			352				(5	)			(785	)			1,178				3,587				510				798				5,635
Loans charged off			—				—				(195	)			(451	)			(2,410	)			(688	)			(2,004	)			(5,748	)
Recoveries collected			5				—				339				184				75				330				687				1,620
Ending balance		$	3,275			$	1,361			$	3,579			$	32,669			$	1,957			$	25,602			$	1,739			$	70,182

Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined.

For all loan portfolio segments except 1-4 family residential properties and consumer, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For individually evaluated loans that are considered solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral.

The Company charges-off 1-4 family residential and consumer loans, or portions thereof, when the Company reasonably determines the amount of the loss. The Company adheres to time frames established by applicable regulatory guidance which provides for the charge-down of 1-4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 180 days past due, charge-off of unsecured open-end loans when the loan is 180 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off.

20

The following table presents the amortized cost basis of collateral-dependent loans by class of loans that were individually evaluated to determine expected credit losses, and the related allowance for credit losses, as of June 30, 2025 (in thousands):

		Collateral												Allowance
		Real Estate				Business Assets				Total				for Credit Losses
Agricultural real estate		$	575			$	—			$	575			$	—
1-4 family residential properties			157				—				157				4
Multifamily residential properties			397				—				397				—
Commercial real estate			4,511				—				4,511				6
Loans secured by real estate			5,640				—				5,640				10
Agricultural loans			—				1,033				1,033				—
Commercial and industrial loans			—				1,183				1,183				291
Other loans			—				2,194				2,194				—
Total loans		$	5,640			$	4,410			$	10,050			$	301

Credit Quality

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, collateral support, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. The Company uses the following definitions for risk ratings which are commensurate with a loan considered “criticized”:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current credit worthiness and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, based on currently existing factors, conditions and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered pass rated loans.

21

The following tables present the credit risk profile of the Company’s loan portfolio on amortized cost basis based on risk rating category and year of origination as of June 30, 2025 (in thousands):

		Term Loans by Origination Year																								Revolving
Risk rating		2025				2024				2023				2022				2021				Prior				Loans				Total
June 30, 2025
Construction and land development loans
Pass		$	37,106			$	105,536			$	108,091			$	13,793			$	14,984			$	18,923			$	—			$	298,433
Special mention			—				—				—				—				—				366				—				366
Substandard			—				—				—				5				—				8				—				13
Total		$	37,106			$	105,536			$	108,091			$	13,798			$	14,984			$	19,297			$	—			$	298,812
Current period gross write-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—
Agricultural real estate loans
Pass		$	23,371			$	24,379			$	13,483			$	134,983			$	62,151			$	110,630			$	—			$	368,997
Special mention			148				200				1,367				800				979				7,319				—				10,813
Substandard			—				—				—				574				—				1,133				—				1,707
Total		$	23,519			$	24,579			$	14,850			$	136,357			$	63,130			$	119,082			$	—			$	381,517
Current period gross write-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—
1-4 family residential property loans
Pass		$	34,999			$	36,049			$	33,422			$	67,870			$	71,720			$	155,394			$	83,993			$	483,447
Special mention			214				174				—				271				312				709				—				1,680
Substandard			113				299				651				954				765				7,056				822				10,660
Total		$	35,326			$	36,522			$	34,073			$	69,095			$	72,797			$	163,159			$	84,815			$	495,787
Current period gross write-offs		$	—			$	—			$	9			$	—			$	—			$	85			$	—			$	94
Commercial real estate loans
Pass		$	160,943			$	215,564			$	198,315			$	636,078			$	509,632			$	980,943			$	—			$	2,701,475
Special mention			—				2,973				13,640				12,635				298				9,683				—				39,229
Substandard			—				1,473				48				4,902				2,507				4,610				—				13,540
Total		$	160,943			$	220,010			$	212,003			$	653,615			$	512,437			$	995,236			$	—			$	2,754,244
Current period gross write-offs		$	—			$	—			$	—			$	338			$	—			$	70			$	—			$	408
Agricultural loans
Pass		$	158,666			$	86,034			$	16,268			$	20,614			$	13,784			$	3,655			$	—			$	299,021
Special mention			1,113				1,265				2,459				927				122				—				—				5,886
Substandard			410				185				859				13				—				—				—				1,467
Total		$	160,189			$	87,484			$	19,586			$	21,554			$	13,906			$	3,655			$	—			$	306,374
Current period gross write-offs		$	—			$	280			$	1,081			$	836			$	306			$	—			$	—			$	2,503
Commercial and industrial loans
Pass		$	252,605			$	256,036			$	106,096			$	231,321			$	172,600			$	434,968			$	—			$	1,453,626
Special mention			10				6,238				9,731				1,571				4,132				2,108				—				23,790
Substandard			—				248				2,288				1,079				246				7,384				—				11,245
Total		$	252,615			$	262,522			$	118,115			$	233,971			$	176,978			$	444,460			$	—			$	1,488,661
Current period gross write-offs		$	—			$	—			$	14			$	53			$	—			$	645			$	—			$	712
Consumer loans
Pass		$	3,290			$	3,530			$	3,750			$	18,118			$	8,361			$	4,105			$	—			$	41,154
Special mention			—				—				—				51				—				—				—				51
Substandard			—				41				21				127				145				65				—				399
Total		$	3,290			$	3,571			$	3,771			$	18,296			$	8,506			$	4,170			$	—			$	41,604
Current period gross write-offs		$	—			$	8			$	23			$	83			$	42			$	471			$	—			$	627
Total loans
Pass		$	670,980			$	727,128			$	479,425			$	1,122,777			$	853,232			$	1,708,618			$	83,993			$	5,646,153
Special mention			1,485				10,850				27,197				16,255				5,843				20,185				—				81,815
Substandard			523				2,246				3,867				7,654				3,663				20,256				822				39,031
Total		$	672,988			$	740,224			$	510,489			$	1,146,686			$	862,738			$	1,749,059			$	84,815			$	5,766,999
Current period gross write-offs		$	—			$	288			$	1,127			$	1,310			$	348			$	1,271			$	—			$	4,344

22

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category as of December 31, 2024 (in thousands):

		Term Loans by Origination Year																								Revolving
Risk rating		2024				2023				2022				2021				2020				Prior				Loans				Total
December 31, 2024
Construction and land development loans
Pass		$	82,696			$	101,715			$	14,390			$	15,817			$	4,735			$	16,342			$	—			$	235,695
Special mention			—				—				—				—				—				382				—				382
Substandard			—				—				6				—				—				10				—				16
Total		$	82,696			$	101,715			$	14,396			$	15,817			$	4,735			$	16,734			$	—			$	236,093
Current period gross write-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—
Agricultural real estate loans
Pass		$	25,824			$	17,292			$	159,433			$	55,083			$	48,700			$	73,592			$	—			$	379,924
Special mention			—				192				107				986				1,755				5,630				—				8,670
Substandard			—				141				966				—				—				1,059				—				2,166
Total		$	25,824			$	17,625			$	160,506			$	56,069			$	50,455			$	80,281			$	—			$	390,760
Current period gross write-offs		$	—			$	—			$	—			$	—			$	—			$	—			$	—			$	—
1-4 family residential property loans
Pass		$	46,350			$	36,454			$	74,580			$	75,325			$	61,936			$	110,348			$	79,714			$	484,707
Special mention			175				—				204				326				—				577				59				1,341
Substandard			174				672				916				737				557				6,875				618				10,549
Total		$	46,699			$	37,126			$	75,700			$	76,388			$	62,493			$	117,800			$	80,391			$	496,597
Current period gross write-offs		$	—			$	46			$	13			$	33			$	—			$	103			$	—			$	195
Commercial real estate loans
Pass		$	216,297			$	213,704			$	680,665			$	535,056			$	289,855			$	774,516			$	—			$	2,710,093
Special mention			659				13,732				4,090				2,053				713				10,462				—				31,709
Substandard			—				49				3,844				467				—				4,067				—				8,427
Total		$	216,956			$	227,485			$	688,599			$	537,576			$	290,568			$	789,045			$	—			$	2,750,229
Current period gross write-offs		$	—			$	—			$	151			$	—			$	—			$	300			$	—			$	451
Agricultural loans
Pass		$	175,402			$	24,024			$	13,147			$	9,162			$	1,585			$	2,306			$	—			$	225,626
Special mention			617				2,208				976				100				—				—				—				3,901
Substandard			843				7,092				2,209				—				—				—				—				10,144
Total		$	176,862			$	33,324			$	16,332			$	9,262			$	1,585			$	2,306			$	—			$	239,671
Current period gross write-offs		$	—			$	2,213			$	100			$	52			$	—			$	45			$	—			$	2,410
Commercial and industrial loans
Pass		$	307,785			$	228,411			$	278,845			$	183,042			$	131,005			$	360,610			$	—			$	1,489,698
Special mention			54				1,149				1,277				748				1,020				7,583				—				11,831
Substandard			65				1,410				789				446				98				815				—				3,623
Total		$	307,904			$	230,970			$	280,911			$	184,236			$	132,123			$	369,008			$	—			$	1,505,152
Current period gross write-offs		$	10			$	47			$	207			$	378			$	10			$	36			$	—			$	688
Consumer loans
Pass		$	5,098			$	5,138			$	24,430			$	11,810			$	4,494			$	2,385			$	—			$	53,355
Special mention			—				—				14				—				—				—				—				14
Substandard			12				21				259				216				54				29				—				591
Total		$	5,110			$	5,159			$	24,703			$	12,026			$	4,548			$	2,414			$	—			$	53,960
Current period gross write-offs		$	98			$	63			$	154			$	139			$	59			$	1,491			$	—			$	2,004
Total loans
Pass		$	859,452			$	626,738			$	1,245,490			$	885,295			$	542,310			$	1,340,099			$	79,714			$	5,579,098
Special mention			1,505				17,281				6,668				4,213				3,488				24,634				59				57,848
Substandard			1,094				9,385				8,989				1,866				709				12,855				618				35,516
Total		$	862,051			$	653,404			$	1,261,147			$	891,374			$	546,507			$	1,377,588			$	80,391			$	5,672,462
Current period gross write-offs		$	108			$	2,369			$	625			$	602			$	69			$	1,975			$	—			$	5,748

23

The following table presents the Company’s loan portfolio aging analysis at June 30, 2025 and December 31, 2024 (in thousands):

		30-59 Days Past Due				60-89 Days Past Due				90 Days or More Past Due				Total Past Due				Current				Total Loans Receivable				Total Loans > 90 Days and Accruing
June 30, 2025
Construction and land development		$	89			$	—			$	—			$	89			$	298,723			$	298,812			$	—
Agricultural real estate			—				574				841				1,415				380,102				381,517				—
1-4 family residential properties			362				1,511				2,149				4,022				491,765				495,787				—
Multifamily residential properties			—				—				—				—				360,604				360,604				—
Commercial real estate			14,185				3,796				2,755				20,736				2,372,904				2,393,640				—
Loans secured by real estate			14,636				5,881				5,745				26,262				3,904,098				3,930,360				—
Agricultural loans			—				262				2,557				2,819				303,555				306,374				—
Commercial and industrial loans			369				177				847				1,393				1,323,260				1,324,653				—
Consumer loans			150				32				31				213				41,391				41,604				—
All other loans			—				2,194				—				2,194				161,814				164,008				—
Total loans		$	15,155			$	8,546			$	9,180			$	32,881			$	5,734,118			$	5,766,999			$	—
Percent of total loans															0.57	%
December 31, 2024
Construction and land development		$	6			$	—			$	—			$	6			$	236,087			$	236,093			$	—
Agricultural real estate			—				—				533				533				390,227				390,760				—
1-4 family residential properties			2,209				931				2,089				5,229				491,368				496,597				—
Multifamily residential properties			—				—				472				472				332,172				332,644				—
Commercial real estate			595				553				344				1,492				2,416,093				2,417,585				—
Loans secured by real estate			2,810				1,484				3,438				7,732				3,865,947				3,873,679				—
Agricultural loans			550				—				1,289				1,839				237,832				239,671				—
Commercial and industrial loans			337				89				463				889				1,335,031				1,335,920				—
Consumer loans			442				48				111				601				53,359				53,960				—
All other loans			—				—				—				—				169,232				169,232				—
Total loans		$	4,139			$	1,621			$	5,301			$	11,061			$	5,661,401			$	5,672,462			$	—
Percent of total loans															0.19	%

Individually Evaluated Loans

Within all loan portfolio segments, loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. The entire balance of a loan is considered delinquent if the minimum payment contractually required to be made is not received by the specified due date. Impaired loans, excluding certain modified, are placed on nonaccrual status. Impaired loans include nonaccrual loans and loans modified in restructuring where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being modified remain on nonaccrual status until, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. If the restructured loan is on accrual status prior to being modified, the loan is reviewed to determine if the modified loan should remain on accrual status.

The Company’s policy is to discontinue the accrual of interest income on all loans for which principal or interest is ninety days past due. The accrual of interest is discontinued earlier when, in the opinion of management, there is reasonable doubt as to the timely collection of interest or principal. Once interest accruals are discontinued, accrued but uncollected interest is charged against current year income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Interest on loans determined to be modified is recognized on an accrual basis in accordance with the restructured terms if the loan is in compliance with the modified terms. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status.

The amount of interest income recognized by the Company within the periods stated above was due to loans modified in

24

restructuring that remain on accrual status.

Non-Accrual Loans

The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated for which no allowance was recorded as of June 30, 2025 and December 31, 2024 (in thousands). There were no loans past due over eighty-nine days that were still accruing.

		June 30, 2025								December 31, 2024
		Nonaccrual with no Allowance for				Total				Nonaccrual with no Allowance for				Total
		Credit Loss				Nonaccrual				Credit Loss				Nonaccrual
Construction and land development		$	5			$	5			$	6			$	6
Agricultural real estate			1,856				1,856				2,213				2,213
1-4 family residential properties			4,708				5,586				4,196				4,937
Commercial real estate			6,841				6,959				4,901				7,716
Loans secured by real estate			13,410				14,406				11,316				14,872
Agricultural loans			1,617				1,617				1,371				11,521
Commercial and industrial loans			1,263				1,986				1,320				2,071
Consumer loans			151				151				311				311
All other loans			2,194				2,194				—				—
Total loans		$	18,635			$	20,354			$	14,318			$	28,775

Interest income that would have been recorded under the original terms of such nonaccrual loans totaled $662,000 and $487,000 for the six months ended June 30, 2025 and 2024, respectively.

Loan Modifications to Borrowers Experiencing Financial Difficulty

The following table shows the amortized cost of loans at June 30, 2025 and 2024 that were both experiencing financial difficulty and modified segregated by portfolio segment and type of modification. The percentage of the amortized cost of loans that were modified to borrowers in financial distress as compared to outstanding loans is also presented below.

														Total
		Payment				Term				Interest				Class of
		Delay				Extension				Rate				Financing
		Investment				Modifications				Reduction				Receivable
June 30, 2025
Agricultural real estate		$	296			$	—			$	—				0.01	%
1-4 family residential properties			40				736				—				0.01	%
Commercial real estate			792				130				505				0.02	%
Loans secured by real estate			1,128				866				505				0.04	%
Commercial and industrial loans			831				81				—				0.02	%
Consumer loans			—				6				—				—	%
Total		$	1,959			$	953			$	505				0.06	%
June 30, 2024
Agricultural real estate		$	317			$	—			$	—				0.01	%
1-4 family residential properties			49				778				—				0.01	%
Commercial real estate			694				216				502				0.03	%
Loans secured by real estate			1,060				994				502				0.05	%
Commercial and industrial loans			168				126				—				0.01	%
Consumer loans			5				12				—				—	%
Total		$	1,233			$	1,132			$	502				0.05	%

25

The Company closely monitors the performance of loans that have been modified to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table shows the performance of such loans that have been modified in the last twelve months ended June 30, 2025 and 2024.

		30-59 Days Past Due				60-89 Days Past Due				90 Days or More Past Due				Total Past Due
June 30, 2025
Total loans		$	—			$	—			$	—			$	—
June 30, 2024
1-4 family residential properties		$	25			$	—			$	—			$	25
Commercial real estate			116				—				—				116
Loans secured by real estate			141				—				—				141
Commercial and industrial loans			131				—				—				131
Consumer loans			—				12				—				12
Total loans		$	272			$	12			$	—			$	284

The following table shows the financial effect of loan modifications during the current quarter to borrowers experiencing financial difficulty for the three months ended June 30, 2025 and 2024.

		Weighted Average				Weighted Average
		Interest Rate				Term Extension
		Reduction				(in months)
June 30, 2025
Total			—	%			—
June 30, 2024
Commercial and industrial loans			—	%			7.00

A loan is considered to be in payment default once it is 90 days past due under the modified terms. There were no loans modified during the prior twelve months that experienced payment defaults for the three months ended June 30, 2025 and 2024, respectively.

Note 5 -- Goodwill and Intangible Assets

The Company has goodwill from business combinations, intangible assets from branch acquisitions, identifiable intangible assets assigned to core deposit relationships and customer lists of First Mid Wealth Management Company and First Mid Insurance. The following table presents gross carrying value and accumulated amortization by major intangible asset class as of June 30, 2025 and December 31, 2024 (in thousands):

		June 30, 2025								December 31, 2024
		Gross Carrying Value				Accumulated Amortization				Gross Carrying Value				Accumulated Amortization
Goodwill not subject to amortization		$	207,151			$	3,760			$	207,151			$	3,760
Intangibles from branch acquisition			3,015				3,015				3,015				3,015
Core deposit intangibles			79,945				49,185				79,945				44,736
Other intangibles			30,857				14,542				30,857				13,180
Total		$	320,968			$	70,502			$	320,968			$	64,691

Core deposit intangibles are being amortized over a period of 10 years and other intangibles, primarily customer lists, are being amortized over periods ranging from 3 to 12 years.

26

During the quarter ended September 30, 2024, goodwill of $6.9 million was recorded for the acquisition of the stock of Mid Rivers Insurance Group, Inc. (MRIG) in connection with its insurance business. First Mid Insurance was assigned all this goodwill. The following provides a reconciliation of the purchase price paid for Mid Rivers Insurance Group, Inc. and the amount of goodwill recorded (in thousands):

Unallocated purchase price					$	10,059
Less purchase accounting adjustments:
Insurance Company intangible	$	4,305
Other liabilities		(1,176	)
						3,129
					$	6,930

The Company has mortgage servicing rights acquired in previous acquisitions. Mortgage servicing rights are accounted for under the amortization method. The following table summarizes the activity pertaining to mortgage servicing rights included in intangible assets as of June 30, 2025, June 30, 2024 and December 31, 2024 (in thousands):

		June 30, 2025				June 30, 2024				December 31, 2024
Beginning balance		$	5,629			$	6,859			$	6,859
Adjustment to valuation reserve			1				(13	)			7
Mortgage servicing rights amortized			(541	)			(652	)			(1,226	)
Interest only strip			(8	)			(4	)			(11	)
Ending balance		$	5,081			$	6,190			$	5,629
Fair value of portfolio		$	6,310			$	7,246			$	6,716

Total amortization expense for three and six months ended June 30, 2025 and 2024 was as follows (in thousands):

		Three months ended								Six months ended
		June 30,								June 30,
		2025				2024				2025				2024
Core deposit intangibles		$	2,186			$	2,475			$	4,449			$	5,029
Other intangibles			681				577				1,362				1,156
Mortgage servicing rights			254				288				541				652
Total		$	3,121			$	3,340			$	6,352			$	6,837

Aggregate amortization expense for the current year and estimated amortization expense for each of the five succeeding years is shown in the table below (in thousands):

Aggregate amortization expense:
For period 01/01/25-06/30/25		$	6,352
Estimated amortization expense:
For period 07/01/25-12/31/25			5,957
For year ended 12/31/26			10,594
For year ended 12/31/27			9,330
For year ended 12/31/28			8,116
For year ended 12/31/29			6,764

In accordance with GAAP, the Company performed its annual goodwill impairment test as of September 30, 2024 and determined that, as of that date, goodwill was not impaired. The Company believes no test was necessary during the six months ended June 30, 2025 due to the lack of triggering events.

Note 6 -- Repurchase Agreements and Other Borrowings

Securities sold under agreements to repurchase were $193.9 million at June 30, 2025, a decrease of $10.2 million from $204.1 million at December 31, 2024. All the transactions have overnight maturities with a weighted average rate of 2.41%.

The right of setoff for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default (e.g., declare bankruptcy), the Company could cancel the repurchase agreement (i.e., cease payment of principal and interest), and attempt collection on the amount of collateral value in excess of the repurchase agreement fair value. The collateral is held by a third-party financial institution in the

27

counterparty's custodial account. The counterparty has the right to sell or repledge the investment securities. For government entity repurchase agreements, the collateral is held by the Company in a segregated custodial account under a tri-party agreement. The Company is required by the counterparty to maintain adequate collateral levels. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained, while mitigating the potential of over-collateralization in the event of counterparty default.

Collateral pledged by class for repurchase agreements are as follows (in thousands):

		June 30, 2025				December 31, 2024
US Treasury securities and obligations of U.S. government corporations and agencies		$	64,198			$	70,664
Mortgage-backed securities: GSE: residential			129,743				133,458
Total		$	193,941			$	204,122

Gross FHLB borrowings, were $245.0 million and $242.4 million at June 30, 2025 and December 31, 2024, respectively. At June 30, 2025 the advances were as follows:

Advance				Term (in years)		Interest Rate		Maturity Date
	25,000,000			overnight		4.45%		July 1, 2025
	25,000,000			1.0		4.33%		November 17, 2025
	25,000,000			3.0		4.40%		June 15, 2026
	25,000,000			3.0		4.37%		May 10, 2027
	25,000,000			3.0		4.32%		May 17, 2027
	25,000,000			5.0		3.95%		June 29, 2028
	25,000,000			5.0		3.93%		June 27, 2029
	5,000,000			10.0		1.15%		October 3, 2029
	5,000,000			10.0		1.12%		October 3, 2029
	10,000,000			10.0		1.39%		December 31, 2029
	25,000,000			5.0		3.46%		February 7, 2030
	25,000,000			10.0		2.71%		March 5, 2035

Note 7 -- Fair Value of Assets and Liabilities

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Level 1 Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Following is a description of the inputs and valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Available-for-Sale Securities. The fair value of available-for-sale securities is determined by various valuation methodologies. Where quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independent sources of market parameters, including but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

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Fair value determinations for Level 3 measurements of securities are the responsibility of the Treasury function of the Company. The Company contracts with a pricing specialist to generate fair value estimates on a monthly basis. The Treasury function of the Company challenges the reasonableness of the assumptions used and reviews the methodology to ensure the estimated fair value complies with accounting standards generally accepted in the United States, analyzes the changes in fair value and compares these changes to internally developed expectations and monitors these changes for appropriateness.

Loans Held for Sale. The fair value of loans held for sale is based on independent asset pricing services which use observable market data as of the measurement date and are therefore classified in Level 2 of the valuation hierarchy.

Derivatives. The fair value of derivatives is based on models using observable market data as of the measurement date and are therefore classified in Level 2 of the valuation hierarchy.

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall as of June 30, 2025 and December 31, 2024 (in thousands):

		Fair Value Measurements Using
						Quoted Prices in Active Markets for Identical Assets				Significant Other Observable Inputs				Significant Unobservable Inputs
		Fair Value				(Level 1)				(Level 2)				(Level 3)
June 30, 2025
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	183,615			$	—			$	183,615			$	—
Obligations of states and political subdivisions			261,325				—				261,325				—
Mortgage-backed securities			588,711				—				588,711				—
Other securities			43,190				—				33,402				9,788
Total available-for-sale securities			1,076,841				—				1,067,053				9,788
Equity securities			4,543				4,543				—				—
Loans held for sale			7,359				—				7,359				—
Derivative assets: interest rate swaps			2,065				—				2,065				—
Total assets		$	1,090,808			$	4,543			$	1,076,477			$	9,788
Derivative liabilities: interest rate swaps		$	1,488			$	—			$	1,488			$	—
December 31, 2024
Available-for-sale securities:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	191,358			$	—			$	191,358			$	—
Obligations of states and political subdivisions			267,740				—				267,740				—
Mortgage-backed securities			539,742				—				539,742				—
Other securities			64,452				—				58,693				5,759
Total available-for-sale securities			1,063,292				—				1,057,533				5,759
Equity securities			4,439				4,439				—				—
Loans held for sale			6,614				—				6,614				—
Derivative assets: interest rate swaps			2,949				—				2,949				—
Total assets		$	1,077,294			$	4,439			$	1,067,096			$	5,759
Derivative liabilities: interest swaps		$	2,006			$	—			$	2,006			$	—

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The change in fair value of assets measured on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2025 and 2024 is summarized as follows (in thousands):

		Three months ended June 30, 2025				Six months ended June 30, 2025
Beginning balance		$	5,759			$	5,759
Purchases			7,029				7,029
Maturities			(3,000	)			(3,000	)
Ending balance		$	9,788			$	9,788
		Three months ended June 30, 2024				Six months ended June 30, 2024
Beginning balance		$	5,965			$	6,163
Transfers into Level 3			1				2
Maturities			—				(199	)
Ending balance		$	5,966			$	5,966

Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Collateral Dependent Loans. Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment and estimating fair value include using the fair value of the collateral for collateral dependent loans.

If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value, which includes selling costs. Individually evaluated loans that are collateral dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method.

Management establishes a specific allowance for individually evaluated loans that have an estimated fair value that is below the carrying value. The total carrying amount of loans for which a change in specific allowance has occurred as of June 30, 2025 was $4.6 million and a fair value of $4.2 million resulting in specific loss exposures of $366,000.

When there is little prospect of collecting principal or interest, loans, or portions of loans, may be charged-off to the allowance for credit losses. Losses are recognized in the period an obligation becomes uncollectible. The recognition of a loss does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not practical or desirable to defer writing off the loan even though partial recovery may be affected in the future.

Foreclosed Assets Held For Sale. Other real estate owned acquired through loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. The adjustment at the time of foreclosure is recorded through the allowance for credit losses. Due to the subjective nature of establishing the fair value when the asset is acquired, the actual fair value of the other real estate owned, or foreclosed asset could differ from the original estimate. If it is determined that fair value declines subsequent to foreclosure, a valuation allowance is recorded through noninterest expense. Operating costs associated with the assets after acquisition are also recorded as noninterest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and posted to other noninterest expense. The total carrying amount of other real estate owned as of June 30, 2025 was $1.7 million. Other real estate owned included in the total carrying amount and measured at fair value on a nonrecurring basis during the period amounted to $578,000.

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The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2025 and December 31, 2024 (in thousands):

		Fair Value Measurements Using
						Quoted Prices in Active Markets for Identical Assets				Significant Other Observable Inputs				Significant Unobservable Inputs
		Fair Value				(Level 1)				(Level 2)				(Level 3)
June 30, 2025
Collateral dependent loans		$	4,206			$	—			$	—			$	4,206
Foreclosed assets held for sale			578				—				—				578
December 31, 2024
Collateral dependent loans		$	16,604			$	—			$	—			$	16,604
Foreclosed assets held for sale			48				—				—				48

Sensitivity of Significant Unobservable Inputs

The following table presents quantitative information about unobservable inputs used in Level 3 fair value measurements other than goodwill at June 30, 2025 and December 31, 2024.

June 30, 2025		Fair Value		Valuation Technique		Unobservable Inputs		Range		Weighted Average
Collateral dependent loans		$4,206		Third party valuations		Discount to reflect realizable value less estimated selling costs		0%-40%		20%
Foreclosed assets held for sale		578		Third party valuations		Discount to reflect realizable value less estimated selling costs		0%-40%		35%

December 31, 2024

Fair Value

Valuation Technique

Unobservable Inputs

Range

Weighted Average

Collateral dependent loans

$

16,604

Third party valuations

Discount to reflect realizable value

0%-40%

20%

Foreclosed assets held for sale

48

Third party valuations

Discount to reflect realizable value less estimated selling costs

0%-40%

35%

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The following tables present estimated fair values of the Company’s financial instruments at June 30, 2025 and December 31, 2024 in accordance with ASC 825 (in thousands):

		Carrying Amount				Fair Value				Level 1				Level 2				Level 3
June 30, 2025
Financial assets
Cash and due from banks		$	189,941			$	189,941			$	189,941			$	—			$	—
Federal funds sold			76				76				76				—				—
Certificates of deposit			2,030				2,030				—				2,030				—
Available-for-sale securities			1,076,841				1,076,841				—				1,067,053				9,788
Held-to-maturity securities			2,287				2,287				2,287				—				—
Equity securities			4,543				4,543				4,543				—				—
Loans held for sale			7,359				7,359				—				7,359				—
Loans net of allowance for credit losses			5,688,480				5,442,527				—				—				5,442,527
Interest receivable			38,001				38,001				—				38,001				—
Federal Reserve Bank stock			19,855				19,855				—				19,855				—
Federal Home Loan Bank stock			10,224				10,224				—				10,224				—
Financial liabilities
Deposits		$	6,190,199			$	6,110,980			$	—			$	5,108,255			$	1,002,725
Securities sold under agreements to repurchase			193,941				193,941				—				193,941				—
Interest payable			6,724				6,724				—				6,724				—
Federal Home Loan Bank borrowings			245,000				244,485				—				244,485				—
Subordinated debt, net			79,590				78,223				—				78,223				—
Junior subordinated debentures, net			24,384				20,463				—				20,463				—
December 31, 2024
Financial assets
Cash and due from banks		$	121,141			$	121,141			$	121,141			$	—			$	—
Federal funds sold			75				75				75				—				—
Certificates of deposit			3,500				3,500				—				3,500				—
Available-for-sale securities			1,063,292				1,063,292				—				1,057,533				5,759
Held-to-maturity securities			2,279				2,279				2,279				—				—
Equity securities			4,439				4,439				4,439				—				—
Loans held for sale			6,614				6,614				—				6,614				—
Loans net of allowance for credit losses			5,595,666				5,314,756				—				—				5,314,756
Interest receivable			38,639				38,639				—				38,639				—
Federal Reserve Bank stock			19,855				19,855				—				19,855				—
Federal Home Loan Bank stock			9,501				9,501				—				9,501				—
Financial liabilities
Deposits		$	6,057,096			$	5,977,113			$	—			$	5,069,853			$	907,260
Securities sold under agreements to repurchase			204,122				204,122				—				204,122				—
Interest payable			5,280				5,280				—				5,280				—
Federal Home Loan Bank borrowings			242,520				240,125				—				240,125				—
Subordinated debentures			87,472				86,062				—				86,062				—
Junior subordinated debentures			24,280				21,411				—				21,411				—

Note 8 -- Leases

As of June 30, 2025, substantially all the Company's leases are operating leases for real estate property for bank branches, ATM locations, and office space.

For leases in effect at January 1, 2019 and for leases commencing thereafter, the Company recognizes a lease liability and a right-of-use asset, based on the present value of lease payments over the lease term. The discount rate used in determining present value was the Company's incremental borrowing rate which is the FHLB fixed advance rate based on the remaining lease term as of January 1, 2019, or the commencement date for leases subsequently entered into. The Company has elected to not include short-term leases (i.e. leases with terms of twelve months or less) on the consolidated balance sheets.

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The following table contains supplemental balance sheet information related to leases (dollars in thousands):

		June 30, 2025				June 30, 2024				December 31, 2024
Operating lease right-of-use assets		$	13,152			$	14,981			$	13,861
Operating lease liabilities			13,590				15,286				14,190
Weighted-average remaining lease term (in years)			4.6				5.0			4.7
Weighted-average discount rate			3.48	%			3.20	%			3.22	%

Certain of the Company's leases contain options to renew the lease; however, not all renewal options are included in the calculation of lease liabilities as they are not reasonably certain to be exercised. The Company's leases do not contain residual value guarantees or material variable lease payments. The Company does not have any other material restrictions or covenants imposed by leases that would impact the Company's ability to pay dividends or cause the Company to incur additional financial obligations.

Maturities of lease liabilities are as follows (in thousands):

Year ending December 31,
2025		$	1,576
2026			3,103
2027			2,875
2028			2,219
2029			1,764
Thereafter			3,697
Total lease payments			15,234
Less imputed interest			(1,644	)
Total lease liability		$	13,590

The components of lease expense for the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

		Three months ended								Six months ended
		June 30,								June 30,
		2025				2024				2025				2024
Operating lease cost		$	841			$	822			$	1,667			$	1,668
Short-term lease cost			30				31				61				66
Variable lease cost			255				218				598				356
Total lease cost			1,126				1,071				2,326				2,090
Income from subleases			(91	)			(103	)			(171	)			(207	)
Net lease cost		$	1,035			$	968			$	2,155			$	1,883

As the Company elected not to separate lease and non-lease components, the variable lease cost primarily represents variable payment such as common area maintenance and copier expense. The Company does not have any material sub-lease agreements. Cash paid for amounts included in the measurement of lease liabilities was (in thousands):

		June 30, 2025				June 30, 2024
Operating cash flows from operating leases		$	1,639			$	1,672

Note 9 – Derivatives

The Company utilizes an interest rate swap, designated as a fair value hedge, to mitigate the risk of changing interest rates on the fair value of a fixed rate commercial real estate loan. For derivative instruments that are designed and qualify as a fair value hedge, the gain or loss on the derivative instrument, as well as the offsetting loss or gain in the hedged asset attributable to the hedged risk, is recognized in current earnings.

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Derivatives Designated as Hedging Instruments

The following table provides the outstanding notional balances and fair values of outstanding derivatives designated as hedging instruments as of June 30, 2025 and December 31, 2024 (in thousands):

		Balance Sheet Location		Weighted Average Remaining Maturity (Years)		Notional Amount				Estimated Value
June 30, 2025
Fair value hedges:
Interest rate swap agreements		Other liabilities		3.8		$	12,226			$	(1,488	)
December 31, 2024
Fair value hedges:
Interest rate swap agreements		Other liabilities		4.3		$	12,486			$	(2,006	)

The effects of the fair value hedges on the Company's income statement during the three and six months ended June 30, 2025 and 2024 were as follows (in thousands):

				Three months ended								Six months ended
				June 30,								June 30,
Derivative		Location of Gain (Loss) on Derivatives		2025				2024				2025				2024
Interest rate swap agreements		Interest income on loans		$	(103	)		$	20			$	(366	)		$	174

				Three months ended								Six months ended
				June 30,								June 30,
Derivative		Location of Gain (Loss) on Hedged Items		2025				2024				2025				2024
Interest rate swap agreements		Interest income on loans		$	103			$	(20	)		$	366			$	(174	)

As of June 30, 2025, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustment for fair value hedges (in thousands):

Line Item in the Balance Sheet in Which the Hedge Item is Included		Carrying Amount of the Hedged Asset				Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset
Loans		$	11,649			$	(577	)

Derivatives Not Designated as Hedging Instruments

The following amounts represent the notional amounts and gross fair value of derivative contracts not designated as hedging instruments outstanding during the six months ended June 30, 2025 (dollars in thousands):

June 30, 2025		Balance Sheet Location		Weighted Average Remaining Maturity (Years)		Notional Amount				Estimated Value
Interest rate swap agreements		Other assets		3.5		$	28,108			$	2,065
Interest rate swap agreements		Other liabilities		3.5			28,108				(2,065	)

Note 10 – Regulatory Capital

The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Bank holding companies follow minimum regulatory requirements established by the Board of Governors of the Federal Reserve System (“Federal Reserve System”), First Mid Bank follows similar minimum regulatory requirements established for banks by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation, as applicable. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary action by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Quantitative measures established by regulatory capital standards to

34

ensure capital adequacy require the Company and its subsidiary bank to maintain minimum capital amounts and ratios (set forth in the table below). Management believes that, as of June 30, 2025 and December 31, 2024, the Company and First Mid Bank, as applicable, met all capital adequacy requirements.

To be categorized as well-capitalized, total risk-based capital, Tier 1 risk-based capital, common equity Tier 1 risk-based capital and Tier 1 leverage ratios must be maintained as set forth in the following table (dollars in thousands):

		Actual								Required Minimum For Capital Adequacy Purposes						To Be Well-Capitalized Under Prompt Corrective Action Provisions
		Amount				Ratio				Amount				Ratio		Amount				Ratio
June 30, 2025
Total capital (to risk-weighted assets)
Company		$	968,670				15.76	%		$	645,528			> 10.50%		N/A				N/A
First Mid Bank			894,817				14.61	%			643,182			> 10.50%		$	612,554			> 10.00%
Tier 1 capital (to risk-weighted assets)
Company			818,499				13.31	%			522,570			> 8.50%		N/A				N/A
First Mid Bank			824,236				13.46	%			520,671			> 8.50%			490,043			> 8.00%
Common equity tier 1 capital (to risk-weighted assets)
Company			794,115				12.92	%			430,352			> 7.00%		N/A				N/A
First Mid Bank			824,236				13.46	%			428,788			> 7.00%			398,160			> 6.50%
Tier 1 capital (to average assets)
Company			818,499				10.73	%			305,223			> 4.00%		N/A				N/A
First Mid Bank			824,236				10.85	%			303,954			> 4.00%			379,943			> 5.00%
December 31, 2024
Total capital (to risk-weighted assets)
Company		$	935,189				15.37	%		$	639,015			>10.50%		N/A				N/A
First Mid Bank			880,621				14.51	%			637,089			>10.50%		$	606,752			> 10.00%
Tier 1 capital (to risk-weighted assets)
Company			780,096				12.82	%			517,298			> 8.50%		N/A				N/A
First Mid Bank			813,000				13.40	%			515,739			> 8.50%			485,401			> 8.00%
Common equity tier 1 capital (to risk-weighted assets)
Company			755,816				12.42	%			426,010			> 7.00%		N/A				N/A
First Mid Bank			813,000				13.40	%			424,726			> 7.00%			394,389			> 6.50%
Tier 1 capital (to average assets)
Company			780,096				10.33	%			301,976			> 4.00%		N/A				N/A
First Mid Bank			813,000				10.82	%			300,596			> 4.00%			375,745			> 5.00%

The Company's risk-weighted assets, capital, and capital ratios for June 30, 2025 are computed in accordance with Basel III capital rules which were effective January 1, 2015. As of June 30, 2025, the Company and First Mid Bank had capital ratios above the required minimums for regulatory capital adequacy, and First Mid Bank had capital ratios that qualified it for treatment as well-capitalized under the regulatory framework for prompt corrective action with respect to banks.

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Note 11 – Commitments

First Mid Bank enters into financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include lines of credit, letters of credit and other commitments to extend credit. Each of these instruments involves, to varying degrees, elements of credit, interest rate and liquidity risk in excess of the amounts recognized in the consolidated balance sheets. The Company uses the same credit policies and requires similar collateral in approving lines of credit and commitments and issuing letters of credit as it does in making loans. The exposure to credit losses on financial instruments is represented by the contractual amount of these instruments. However, the Company does not anticipate any losses from these instruments. The off-balance sheet financial instruments whose contract amounts represent credit risk at June 30, 2025 and December 31, 2024 were as follows (in thousands):

		June 30, 2025				December 31, 2024
Unused commitments and lines of credit:
Commercial real estate		$	368,278			$	323,979
Commercial operating			645,588				649,082
Home equity			107,394				105,867
Other			308,883				332,113
Total		$	1,430,143			$	1,411,041
Standby letters of credit		$	19,091			$	16,909

Commitments to originate credit represent approved commercial, residential real estate and home equity loans that are not fully funded as of June 30, 2025. Lines of credit are agreements by which the Company agrees to provide a borrowing accommodation up to a stated amount as long as there is no violation of any condition established in the loan agreement. Both commitments to originate credit and lines of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the lines and some commitments are expected to expire without being drawn upon, the total amounts do not necessarily represent future cash requirements.

Standby letters of credit are conditional commitments issued by the Company to guarantee the financial performance of customers to third parties. Standby letters of credit are primarily issued to facilitate trade or support borrowing arrangements and generally expire in one year or less. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending credit facilities to customers. The maximum amount of credit that would be extended under letters of credit is equal to the total off-balance sheet contract amount of such instrument. The Company's deferred revenue under standby letters of credit was nominal.

Note 12 – Subsequent Events

On June 24, 2025, the Board of Directors approved the termination of its previously authorized stock repurchase plan and approved a new stock repurchase program which allows for the repurchase of up to 1,200,000 shares of the Company's issued and outstanding shares of common stock, which represents approximately 5% of the Company's issued and outstanding shares of common stock as of June 24, 2025. The Repurchase Program will be effective on July 1, 2025 and will remain effective until December 31, 2026.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis is intended to provide a better understanding of the consolidated financial condition and results of operations of the Company and its subsidiaries as of, and for the three and six months ended June 30, 2025 and 2024. This discussion and analysis should be read in conjunction with the consolidated financial statements, related notes and selected financial data appearing elsewhere in this report.

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

36

products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines. 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.

Overview

This overview of management’s discussion and analysis highlights selected information in this document and may not contain all the information that is important to you. For a more complete understanding of trends, events, commitments, uncertainties, liquidity, capital resources, and critical accounting estimates which have an impact on the Company’s financial condition and results of operations you should carefully read this entire document.

Net income was $45.6 million and $40.2 million for the six months ended June 30, 2025 and 2024, respectively. Diluted net income per common share was $1.90 and $1.68 for the six months ended June 30, 2025 and 2024, respectively.

The following table shows the Company’s annualized performance ratios for six months ended June 30, 2025 and 2024, compared to the performance ratios for the year ended December 31, 2024:

	Six months ended								Year ended
	June 30, 2025				June 30, 2024				December 31, 2024
Return on average assets		1.20	%			1.06	%			1.04	%
Return on average common equity		10.52	%			10.14	%			9.67	%
Average equity to average assets		11.44	%			10.44	%			10.76	%

Total assets were $7.7 billion at June 30, 2025, compared to $7.5 billion as of December 31, 2024. From December 31, 2024 to June 30, 2025, cash and cash equivalents increased $68.8 million, net loan balances increased $92.8 million and investment securities increased $13.7 million. Net loan balances were $5.7 billion at June 30, 2025 compared to $5.6 billion at December 31, 2024.

Net interest margin, on a tax equivalent basis, defined as net interest income divided by average interest-earning assets, was 3.66% for the six months ended June 30, 2025, up from 3.30% for the same period in 2024. This increase was primarily due to an increase in earning asset yields and by decreased rates on interest-bearing deposits and borrowings. Net interest income before the provision for credit losses was $123.3 million compared to net interest income of $112.2 million for the same period in 2024. The increase in net interest income was primarily due to the increased net interest margin as mentioned above.

Total non-interest income of $48.5 million increased $1.6 million or 3.3% from $46.9 million for the same period last year. The increase in non-interest income resulted primarily from an increase in insurance commissions, wealth management revenues, and a gain recognized on a death benefit received from bank owned life insurance partially offset by a decrease in miscellaneous income.

Total non-interest expense of $109.2 million increased $4.4 million or 4.2% from $104.8 million for the same period last year. The increase was primarily due to the routine annual increases in salaries and employee benefits, an increase in expense accrued for incentive compensation based on overperformance compared to the 2025 budget, and nonrecurring technology project expenses which were partially offset by the decrease in integration expenses compared to the first two quarters of 2024 related to Blackhawk Bank.

Following is a summary of the factors that contributed to the changes in net income (in thousands):

		Change in Net Income
		2025 versus 2024
		Three months ended				Six months ended
		June 30, 2025				June 30, 2025
Net interest income		$	7,098			$	11,037
Provision for credit losses			(1,484	)			(3,493	)
Other income, including securities transactions			1,171				1,557
Other expenses			(3,371	)			(4,481	)
Income taxes			279				741
Increase in net income		$	3,693			$	5,361

Credit quality is an area of importance to the Company. Total nonperforming loans were $21.9 million at June 30, 2025, compared to

37

$19.1 million at June 30, 2024 and $29.8 million at December 31, 2024. See the discussion under the heading “Loan Quality and Allowance for Credit Losses” for a detailed explanation of these balances. Repossessed asset balances totaled $1.7 million at June 30, 2025 compared to $1.5 million at June 30, 2024 and $2.2 million at December 31, 2024.

The Company’s provision for credit losses for the six months ended June 30, 2025 and 2024 was $4.2 million and $726,000, respectively. Total loans past due 30 days or more were 0.57% of loans at June 30, 2025 compared to 0.42% at June 30, 2024, and 0.19% of loans at December 31, 2024. Loans secured by both commercial and residential real estate comprised approximately 68.2% of the loan portfolio as of June 30, 2025 and 68.4% as of December 31, 2024.

The Company’s capital position remains strong, and the Company has consistently maintained regulatory capital ratios above the “well-capitalized” standards. The Company’s Tier 1 capital to risk weighted assets ratio calculated under the regulatory risk-based capital requirements at June 30, 2025 and 2024 and December 31, 2024 was 13.31%, 12.65% and 12.82%, respectively. The Company’s total capital to risk weighted assets ratio calculated under the regulatory risk-based capital requirements at June 30, 2025 and 2024, and December 31, 2024 was 15.76%, 15.46% and 15.37%, respectively.

The Company’s liquidity position remains sufficient to fund operations and meet the requirements of borrowers, depositors, and creditors. The Company maintains various sources of liquidity to fund its cash needs. See the discussion under the heading “Liquidity” for a full listing of sources and anticipated significant contractual obligations.

The Company enters into financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include lines of credit, letters of credit and other commitments to extend credit. The total outstanding commitments at June 30, 2025 and 2024, were $1.4 billion and $1.3 billion, respectively.

Federal Deposit Insurance Corporation Insurance Coverage. As FDIC-insured institutions, First Mid Bank is required to pay deposit insurance premium assessments to the FDIC. Several requirements with respect to the FDIC insurance system have affected results, including insurance assessment rates.

The Company expensed $1.7 million and $1.8 million for the assessment during the first six months of 2025 and 2024, respectively.

Critical Accounting Policies and Use of Significant Estimates

The Company has established various accounting policies that govern the application of U.S. generally accepted accounting principles in the preparation of the Company’s consolidated financial statements. The significant accounting policies and use of significant estimates of the Company are described in the footnotes to the consolidated financial statements included in the Company’s 2024 Annual Report on Form 10-K.

Results of Consolidated Operations

Net Interest Income

The largest source of revenue for the Company is net interest income. Net interest income represents the difference between total interest income earned on earning assets and total interest expense paid on interest-bearing liabilities. The amount of interest income is dependent upon many factors, including the volume and mix of earning assets, the general level of interest rates and the dynamics of changes in interest rates. The cost of funds necessary to support earning assets varies with the volume and mix of interest-bearing liabilities and the rates paid to attract and retain such funds.

Net interest income is the excess of interest received from earning assets over interest paid on interest-bearing liabilities. For analytical purposes, net interest income is presented on a full tax equivalent ("TE") basis in the table that follows. The federal statutory rate in effect of 21% for 2025 and 2024 was used. The TE analysis portrays the income tax benefits associated with the tax-exempt assets. The year-to-date net yield on interest-earning assets excluding the TE adjustments of $1.5 million and $1.2 million for 2025 and 2024, respectively were 3.62% and 3.25% at June 30, 2025 and 2024, respectively.

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The Company’s average balances, fully tax equivalent interest income and interest expense, and rates earned or paid for major balance sheet categories are set forth for the three and six months ended June 30, 2025 and 2024 in the following table (dollars in thousands):

		Three months ended June 30, 2025												Three months ended June 30, 2024
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Interest-bearing deposits with other financial institutions		$	146,907			$	1,694				4.63	%		$	127,962			$	1,667				5.24	%
Federal funds sold			75				—				0.00	%			23				8				139.89	%
Certificates of deposit			2,515				28				4.47	%			3,745				43				4.62	%
Investment securities (1)			1,082,974				7,381				2.73	%			1,154,991				7,933				2.75	%
Loans net of unearned income (TE) (2)			5,743,312				85,070				5.94	%			5,529,211				79,628				5.79	%
Total earning assets			6,975,783				94,173				5.41	%			6,815,932				89,279				5.27	%
Other nonearning assets			767,422												803,946
Allowance for credit losses			(70,671	)											(67,929	)
Total assets		$	7,672,534											$	7,551,949
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits		$	3,119,484			$	15,594				2.01	%		$	3,021,299			$	17,286				2.30	%
Savings deposits			638,174				158				0.10	%			688,057				185				0.11	%
Time deposits			1,078,174				9,213				3.43	%			977,265				8,867				3.65	%
Total interest-bearing deposits			4,835,832				24,965				2.07	%			4,686,621				26,338				2.26	%
Securities sold under agreements to repurchase			199,345				1,218				2.45	%			205,711				1,615				3.16	%
FHLB advances			218,846				2,043				3.74	%			249,187				2,248				3.63	%
Subordinated Debt			79,554				849				4.28	%			106,033				1,180				4.48	%
Junior subordinated debt			24,360				464				7.64	%			24,140				537				8.95	%
Total borrowings			522,105				4,574				3.51	%			585,071				5,580				3.84	%
Total interest-bearing liabilities			5,357,937				29,539				2.21	%			5,271,692				31,918				2.44	%
Non-interest-bearing demand deposits			1,402,374								1.75	%			1,439,414								1.91	%
Other liabilities			35,264												44,595
Stockholders' equity			876,959												796,248
Total liabilities and equity		$	7,672,534											$	7,551,949
Net interest income						$	64,634											$	57,361
Net interest spread											3.20	%											2.83	%
TE net yield on interest-earning assets (3)											3.72	%											3.36	%

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		Six months ended June 30, 2025												Six months ended June 30, 2024
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Assets
Interest-bearing deposits with other financial institutions		$	109,015			$	2,521				4.66	%		$	150,664			$	4,074				5.44	%
Federal funds sold			75				1				3.83	%			559				25				9.03	%
Certificates of deposit			2,837				64				4.58	%			2,645				63				4.76	%
Investment securities (1)			1,086,517				14,635				2.69	%			1,169,829				15,853				2.71	%
Loans net of unearned income (TE) (2)			5,674,946				165,264				5.87	%			5,526,698				157,552				5.73	%
Total earning assets			6,873,390				182,485				5.35	%			6,850,395				177,567				5.21	%
Other nonearning assets			772,272												816,301
Allowance for credit losses			(70,646	)											(68,494	)
Total assets		$	7,575,016											$	7,598,202
Liabilities and stockholders' equity
Interest-bearing deposits
Demand deposits		$	3,079,773			$	30,494				2.00	%		$	3,029,068			$	33,898				2.25	%
Savings deposits			639,424				322				0.10	%			697,953				363				0.10	%
Time deposits			1,050,342				17,871				3.43	%			1,002,655				18,173				3.64	%
Total interest-bearing deposits			4,769,539				48,687				2.06	%			4,729,676				52,434				2.23	%
Securities sold under agreements to repurchase			200,505				2,398				2.41	%			235,149				3,671				3.14	%
FHLB advances			206,653				3,850				3.76	%			253,871				4,562				3.61	%
Subordinated debt			81,073				1,798				4.47	%			106,412				2,374				4.49	%
Junior subordinated debentures			24,333				932				7.72	%			24,112				1,079				9.00	%
Other debt			729				24				6.64	%			—				—				—	%
Total borrowings			513,293				9,002				3.54	%			619,544				11,686				3.79	%
Total interest-bearing liabilities			5,282,832				57,689				2.20	%			5,349,220				64,120				2.41	%
Non-interest-bearing demand deposits			1,386,330								1.74	%			1,403,606								1.91	%
Other liabilities			39,120												51,826
Stockholders' equity			866,734												793,550
Total liabilities and equity		$	7,575,016											$	7,598,202
Net interest income						$	124,796											$	113,447
Net interest spread											3.15	%											2.80	%
TE net yield on interest-earning assets (3)											3.66	%											3.30	%

1.The tax-exempt income is shown on a tax equivalent basis.

2.Nonaccrual loans and loans held for sale are included in the average balances. Balances are net of unaccreted discount related to loans acquired.

3.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.

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Changes in net interest income may also be analyzed by segregating the volume and rate components of interest income and interest expense. The following table summarizes the approximate relative contribution of changes in average volume and interest rates to changes in net interest income for the three and six months ended June 30, 2025, compared to the same period in 2024 (in thousands):

	Three months ended June 30, 2025 compared to 2024 Increase/(Decrease)												Six months ended June 30, 2025 compared to 2024 Increase/(Decrease)
	Total												Total
	Change				Volume (1)				Rate (1)				Change				Volume (1)				Rate (1)
Earning assets:
Interest-bearing deposits	$	27			$	889			$	(862	)		$	(1,553	)		$	(1,023	)		$	(530	)
Federal funds sold		(8	)			39				(47	)			(24	)			(14	)			(10	)
Certificates of deposit		(15	)			(14	)			(1	)			1				7				(6	)
Investment securities		(552	)			(491	)			(61	)			(1,218	)			(1,123	)			(95	)
Loans (2) (3)		5,442				3,260				2,182				7,712				4,036				3,676
Total interest income	$	4,894			$	3,683			$	1,211			$	4,918			$	1,883			$	3,035
Interest-bearing liabilities:
Interest-bearing deposits
Demand deposits	$	(1,692	)		$	3,244			$	(4,936	)		$	(3,404	)		$	1,537			$	(4,941	)
Savings deposits		(27	)			(12	)			(15	)			(41	)			(41	)			—
Time deposits		346				2,934				(2,588	)			(302	)			1,767				(2,069	)
Securities sold under agreements to repurchase		(397	)			(48	)			(349	)			(1,273	)			(494	)			(779	)
FHLB advances		(205	)			(603	)			398				(712	)			(1,205	)			493
Subordinated debt		(331	)			(281	)			(50	)			(576	)			(566	)			(10	)
Junior subordinated debentures		(73	)			33				(106	)			(147	)			29				(176	)
Other debt		—				—				—				24				—				24
Total interest expense		(2,379	)			5,267				(7,646	)			(6,431	)			1,027				(7,458	)
Net interest income	$	7,273			$	(1,584	)		$	8,857			$	11,349			$	856			$	10,493

1.Changes attributable to the combined impact of volume and rate have been allocated proportionately to the change due to volume and the change due to rate.

2.The tax-exempt income is shown on a tax-equivalent basis.

3.Nonaccrual loans have been included in the average balances.

Tax equivalent net interest income increased $11.3 million, or 10.0%, to $124.8 million for the six months ended June 30, 2025, from $113.4 million for the same period in 2024. Net interest income and net interest margin increased primarily due to an increase in earning asset yields and a decrease in deposit and borrowing rates.

For the six months ended June 30, 2025, average earning assets increased $23.0 million, or 0.3%, and average interest-bearing liabilities decreased $66.4 million or 1.2% compared with average balances for the same period in 2024.

The changes in average balances for these periods are shown below:

•Average interest-bearing deposits with other financial institutions decreased $41.6 million or 27.6%.

•Average federal funds sold decreased $484,000 or 86.6%.

•Average certificates of deposits investments increased $192,000 or 7.3%.

•Average loans increased by $148.2 million or 2.7%.

•Average securities decreased by $83.3 million or 7.1%.

•Average interest-bearing customer deposits increased by $39.9 million or 0.8%.

•Average securities sold under agreements to repurchase decreased by $34.6 million or 14.7%.

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•Average borrowings and other debt decreased by $71.6 million or 18.6%.

•Net interest margin increased to 3.66% for the first six months of 2025 from 3.30% for the first six months of 2024.

Provision for Credit Losses

The provision for credit losses for the six months ended June 30, 2025 and 2024 was $4.2 million and $726,000, respectively. Net charge offs were $3.2 million for the six months ended June 30, 2025, compared to net charge offs of $1.1 million for June 30, 2024. Nonperforming loans were $21.9 million and $19.1 million as of June 30, 2025 and 2024, respectively. For information on loan loss experience and nonperforming loans, see discussion under the “Nonperforming Loans” and “Loan Quality and Allowance for Credit Losses” sections below.

Other Income

An important source of the Company’s revenue is other income. The following table sets forth the major components of other income for the three and six months ended June 30, 2025 and 2024 (in thousands):

		Three months ended June 30,																Six months ended June 30,
		2025				2024				$ Change				% Change				2025				2024				$ Change				% Change
Wealth management revenues		$	5,394			$	5,405			$	(11	)			-0.2	%		$	11,205			$	10,727			$	478				4.5	%
Insurance commissions			7,840				6,531				1,309				20.0	%			17,765				15,744				2,021				12.8	%
Service charges			2,995				3,227				(232	)			-7.2	%			5,896				6,183				(287	)			-4.6	%
Security gains (losses), net			—				(156	)			156				-100.0	%			(181	)			(156	)			(25	)			—	%
Mortgage banking revenue, net			1,070				1,038				32				3.1	%			1,781				1,744				37				2.1	%
ATM/debit card revenue			4,636				4,281				355				8.3	%			8,282				8,336				(54	)			-0.6	%
Bank owned life insurance			1,206				1,192				14				1.2	%			2,893				2,313				580				25.1	%
Other			452				904				(452	)			-50.0	%			816				2,009				(1,193	)			-59.4	%
Total other income		$	23,593			$	22,422			$	1,171				5.2	%		$	48,457			$	46,900			$	1,557				3.3	%

Following are explanations of the significant changes in these other income categories for the three and six months ended June 30, 2025 compared to the same period in 2024:

•Wealth management revenues increased for the six month period due to increased brokerage fees and agricultural services fee incomes.

•Insurance commissions increased primarily due to the acquisition of MRIG during the third quarter of 2024.

•Bank owned life insurance income increased approximately $580,000 during the first six months of 2025 compared to the same period in 2024 primarily due the gain recognized on a death claim filed in 2025.

•Other income decreased due to a loss recognized on the repayment of the Company's subordinated debentures and Captive insurance charges shown as offsetting the company's other income and numerous other miscellaneous decreases.

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Other Expense

The following table sets forth the major components of other expense for the three and six months ended June 30, 2025 and 2024 (dollars in thousands):

		Three months ended June 30,																Six months ended June 30,
		2025				2024				$ Change				% Change				2025				2024				$ Change				% Change
Salaries and employee benefits		$	33,623			$	30,164			$	3,459				11.5	%		$	65,371			$	60,612			$	4,759				7.9	%
Net occupancy and equipment expense			7,869				7,507				362				4.8	%			16,348				15,067				1,281				8.5	%
Net other real estate owned expense			75				85				(10	)			-11.8	%			176				64				112				175.0	%
FDIC insurance			873				902				(29	)			-3.2	%			1,722				1,771				(49	)			-2.8	%
Amortization of intangible assets			3,121				3,340				(219	)			-6.6	%			6,352				6,837				(485	)			-7.1	%
Stationery and supplies			367				370				(3	)			-0.8	%			798				761				37				4.9	%
Legal and professional			2,757				2,536				221				8.7	%			5,833				4,985				848				17.0	%
Marketing and donations			777				814				(37	)			-4.5	%			1,629				1,676				(47	)			-2.8	%
ATM/debit card expense			1,144				1,281				(137	)			-10.7	%			2,975				2,472				503				20.3	%
Other operating expenses			4,156				4,392				(236	)			-5.4	%			8,030				10,508				(2,478	)			-23.6	%
Total other expense		$	54,762			$	51,391			$	3,371				6.6	%		$	109,234			$	104,753			$	4,481				4.3	%

Following are explanations for the significant changes in these other expense categories for the three and six months ended June 30, 2025 compared to the same period in 2024:

•The increase in salaries and employee benefits, the largest component of other expense, is primarily due to regularly scheduled annual raises and increase in expense accrued for incentive compensation to be paid in 2026 based on overperformance compared to the 2025 budgeted net income. Additionally, there is an increase of salary and employee benefits due to the acquisition of MRIG during the third quarter of 2024. There were 1,190 and 1,185 full-time equivalent employees at June 30, 2025 and 2024, respectively.

•The increase in occupancy and equipment and legal and professional fees expenses are primarily due to nonrecurring technology project expenses in the first two quarter of 2025.

•The decrease in all other operating expenses during the first six months of 2025 was primarily due to integration related expenses for Blackhawk Bank occurring during the first quarter of 2024.

Income Taxes

Total income tax expense amounted to $12.7 million (21.7% effective tax rate) for the six months ended June 30, 2025, compared to $13.4 million (25.0% effective tax rate) for the same period in 2024. The decrease in effective rate is primarily related the interest expense disallowance decreasing due to the Company beginning to utilize an investment subsidiary during the second quarter of 2024, a decrease in nondeductible expenses, and the state of Illinois law change that became effective during the second quarter of 2024 and required a one-time revalue of deferred taxes.

The Company files U.S. federal and state of Florida, Illinois, Indiana, Missouri, Texas, and Wisconsin income tax returns. As of June 30, 2025, the Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2021.

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Analysis of Consolidated Balance Sheets

Securities

The Company’s overall investment objectives are to insulate the investment portfolio from undue credit risk, maintain adequate liquidity, insulate capital against changes in market value and control excessive changes in earnings while optimizing investment performance. The types and maturities of securities purchased are primarily based on the Company’s current and projected liquidity and interest rate sensitivity positions. The following table sets forth the amortized cost of the available-for-sale and held-to-maturity securities as of June 30, 2025 and December 31, 2024 (dollars in thousands):

		June 30, 2025								December 31, 2024
		Amortized Cost				Weighted Average Yield				Amortized Cost				Weighted Average Yield
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	199,299				1.22	%		$	212,513				1.28	%
Obligations of states and political subdivisions			325,609				2.30	%			324,046				2.28	%
Mortgage-backed securities: GSE residential			685,640				2.15	%			653,760				1.88	%
Other securities			47,442				4.73	%			69,396				4.27	%
Total securities		$	1,257,990				2.14	%		$	1,259,715				2.01	%

At June 30, 2025, the Company’s investment portfolio decreased by $1.7 million from December 31, 2024 primarily due to the sale of three securities, paydowns, calls and maturities of various securities mostly offset by the purchase of fifteen securities. When purchasing investment securities, the Company considers its overall liquidity and interest rate risk profile, as well as the adequacy of expected returns relative to the risks assumed. The table below presents the credit ratings as of June 30, 2025 for investment securities (in thousands):

										Average Credit Rating of Fair Value at June 30, 2025 (1)
		Amortized Cost				Estimated Fair Value				AAA				AA +/-				A +/-				BBB +/-				< BBB -				Not rated
Available-for-sale:
U.S. Treasury securities and obligations of U.S. government corporations and agencies		$	199,299			$	183,616			$	—			$	183,616			$	—			$	—			$	—			$	—
Obligations of state and political subdivisions			325,609				261,324				44,723				193,939				21,016				—				—				1,646
Mortgage-backed securities (2)			685,640				588,711				—				—				—				—				—				588,711
Other securities			45,155				43,190				—				998				7,187				6,983				—				28,022
Total available-for-sale		$	1,255,703			$	1,076,841			$	44,723			$	378,553			$	28,203			$	6,983			$	—			$	618,379
Held-to-maturity:
Other securities		$	2,287			$	2,287			$	—			$	—			$	—			$	—			$	—			$	2,287
Equity securities:
Federal Agricultural Mtg Corp			85				486				—				—				—				—				—				486
Midwest Independent BankersBank			150				213				—				—				—				—				—				213
Equalize Community Development Fund			3,843				3,844				—				—				—				—				—				3,844
Total equity securities		$	4,078			$	4,543			$	—			$	—			$	—			$	—			$	—			$	4,543

1.Credit ratings reflect the lowest current rating assigned by a nationally recognized credit rating agency.

2.Mortgage-backed securities include mortgage-backed securities (MBS) and collateralized mortgage obligation (CMO) issues from the following government sponsored enterprises: FHLMC, FNMA, GNMA and FHLB. While MBS and CMOs are no longer explicitly rated by credit rating agencies, the industry recognizes that they are backed by agencies which have an implied government guarantee.

44

Loans

The loan portfolio is the largest category of the Company’s earning assets. The following table summarizes the composition of the loan portfolio at amortized cost, including loans held for sale, as of June 30, 2025 and December 31, 2024 (in thousands):

		June 30, 2025								December 31, 2024
		Amortized Cost				% Outstanding Loans				Amortized Cost				% Outstanding Loans
Construction and land development		$	298,812				5.2	%		$	236,093				4.2	%
Agricultural real estate			381,517				6.6	%			390,760				6.9	%
1-4 family residential properties			495,787				8.6	%			496,597				8.8	%
Multifamily residential properties			360,604				6.3	%			332,644				5.9	%
Commercial real estate			2,393,640				41.5	%			2,417,585				42.6	%
Loans secured by real estate			3,930,360				68.2	%			3,873,679				68.4	%
Agricultural loans			306,374				5.3	%			239,671				4.2	%
Commercial and industrial loans			1,324,653				23.0	%			1,335,920				23.6	%
Consumer loans			41,604				0.7	%			53,960				1.0	%
All other loans			164,008				2.8	%			169,232				2.8	%
Total loans		$	5,766,999				100.0	%		$	5,672,462				100.0	%

Loan balances increased $94.5 million, or 1.7%. The increase was primarily due to construction and land development and multifamily residential properties increasing and increased seasonal demand for agricultural operating loans partially offset by decreases in all other loan types. The balance of real estate loans held for sale, included in the balances shown above, amounted to $7.4 million and $6.6 million as of June 30, 2025 and December 31, 2024, respectively.

Commercial real estate loans generally involve higher credit risks than residential real estate and consumer loans. Because payments on loans secured by commercial real estate or equipment are often dependent upon the successful operation and management of the underlying assets, repayment of such loans may be influenced to a great extent by conditions in the market or the economy. The Company does not have any sub-prime mortgages or credit card loans outstanding which are also generally considered to be higher credit risk.

Loans are geographically dispersed primarily throughout Illinois, the St. Louis Metro area, central Missouri, Texas, and southern Wisconsin. While these regions have experienced some economic stress during 2024 and 2025, the Company does not consider these locations high risk areas.

First Mid Bank does not have a concentration, as defined by the regulatory agencies, in construction and land development loans or commercial real estate loans as a percentage of the sum of Tier 1 Capital and allowance for loan loss for the periods shown above. At June 30, 2025 and December 31, 2024, First Mid Bank did have industry loan concentrations that exceeded 25% of the sum of Tier 1 Capital and allowance for loan loss in the following industries (dollars in thousands):

		June 30, 2025								December 31, 2024
		Principal balance				% Outstanding  Loans				Principal balance				% Outstanding Loans
Other grain farming		$	584,470				10.13	%		$	507,555				8.95	%
Lessors of non-residential buildings			1,046,682				18.15	%			1,049,372				18.50	%
Lessors of residential buildings and dwellings			616,200				10.68	%			557,285				9.82	%
Hotels and motels			221,541				3.84	%		not applicable

First Mid Bank had no further industry loan concentrations in excess of 25% of the sum of Tier 1 Capital and allowance for loan loss.

45

The following table presents the balance of loans outstanding as of June 30, 2025, by contractual maturities (in thousands):

		Maturity (1)
		One year or less (2)				Over 1 through 5 years				Over 5 years				Total
Construction and land development		$	42,902			$	135,272			$	120,638			$	298,812
Agricultural real estate			39,299				119,439				222,779				381,517
1-4 family residential properties			28,165				96,253				371,369				495,787
Multifamily residential properties			87,043				215,014				58,547				360,604
Commercial real estate			325,276				1,400,931				667,433				2,393,640
Loans secured by real estate			522,685				1,966,909				1,440,766				3,930,360
Agricultural loans			208,386				97,010				978				306,374
Commercial and industrial loans			474,732				557,308				292,613				1,324,653
Consumer loans			3,084				37,488				1,032				41,604
All other loans			27,490				15,959				120,559				164,008
Total loans		$	1,236,377			$	2,674,674			$	1,855,948			$	5,766,999

1.Based upon remaining contractual maturity.

2.Includes demand loans, past due loans and overdrafts.

As of June 30, 2025, loans with maturities over one year consisted of approximately $2.5 billion in fixed rate loans and approximately $2.0 billion in variable rate loans. The loan maturities noted above are based on the contractual provisions of the individual loans. The Company has no general policy regarding renewals and borrower requests, which are handled on a case-by-case basis.

Nonperforming Loans and Nonperforming Other Assets

Nonperforming loans include: (a) loans accounted for on a nonaccrual basis; (b) accruing loans contractually past due ninety days or more as to interest or principal payments; and (c) loans not included in (a) and (b) above which are defined as “modified”. Repossessed assets include primarily repossessed real estate and automobiles.

The Company’s policy is to discontinue the accrual of interest income on any loan for which principal or interest is ninety days past due. The accrual of interest is discontinued earlier when, in the opinion of management, there is reasonable doubt as to the timely collection of interest or principal. Once interest accruals are discontinued, accrued but uncollected interest is charged against current year income. Subsequent receipts on non-accrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal.

Restructured loans are loans on which, due to deterioration in the borrower’s financial condition, the original terms have been modified in favor of the borrower or either principal or interest has been forgiven. Repossessed assets represent property acquired as the result of borrower defaults on loans. These assets are recorded at estimated fair value, less estimated selling costs, at the time of foreclosure or repossession. Write-downs occurring at foreclosure are charged against the allowance for credit losses. On an ongoing basis, properties are appraised as required by market indications and applicable regulations. Write-downs for subsequent declines in value are recorded in non-interest expense in other real estate owned along with other expenses related to maintaining the properties.

The following table presents information concerning the aggregate amount of nonperforming loans and repossessed assets at June 30, 2025 and December 31, 2024 (dollars in thousands):

		June 30, 2025				December 31, 2024
Nonaccrual loans		$	20,354			$	28,775
Modified loans which are performing in accordance with revised terms			1,541				1,060
Total nonperforming loans			21,895				29,835
Repossessed assets			1,677				2,195
Total nonperforming loans and repossessed assets		$	23,572			$	32,030
Nonperforming loans to loans, before allowance for credit losses			0.38	%			0.53	%
Nonperforming loans and repossessed assets to loans, before allowance for credit losses			0.41	%			0.56	%

46

The $8.4 million decrease in nonaccrual loans during 2025 resulted from the net of $4.5 million of loans put on nonaccrual status offset by $9.7 million of loans becoming current or paid-off and $3.2 million of loans charged off. The following table summarizes the composition of nonaccrual loans (dollars in thousands):

		June 30, 2025								December 31, 2024
		Balance				% of Total				Balance				% of Total
Construction and land development		$	5				—	%		$	6				—	%
Agricultural real estate			1,856				9.1	%			2,213				7.7	%
1-4 family residential properties			5,586				27.4	%			4,937				17.2	%
Commercial real estate			6,959				34.3	%			7,716				26.8	%
Loans secured by real estate			14,406				70.8	%			14,872				51.7	%
Agricultural loans			1,617				7.9	%			11,521				40.0	%
Commercial and industrial loans			1,986				9.8	%			2,071				7.2	%
Consumer loans			151				0.7	%			311				1.1	%
Other loans			2,194				10.8	%			—				—	%
Total loans		$	20,354				100.0	%		$	28,775				100.0	%

Interest income that would have been reported if nonaccrual and restructured loans had been performing totaled $662,000 and $487,000 for the six months ended June 30, 2025 and 2024, respectively.

The $1.0 million decrease in repossessed assets during the 2025 resulted from $106,000 of additional assets repossessed and $1.0 million repossessed assets sold, $100,000 write-downs, and no change in fair value premiums and discounts. The following table summarizes the composition of repossessed assets (dollars in thousands):

		June 30, 2025								December 31, 2024
		Balance				% of Total				Balance				% of Total
Construction and land development		$	983				58.6	%		$	1,084				39.8	%
1-4 family residential properties			159				9.5	%			568				20.9	%
Commercial real estate			528				31.5	%			527				19.4	%
Total real estate			1,670				99.6	%			2,179				80.1	%
Consumer loans			7				0.4	%			543				19.9	%
Total repossessed collateral		$	1,677				100.0	%		$	2,722				100.0	%

Repossessed assets sold during the first six months of 2025 resulted in $21,000 net gain or loss of related to real estate asset sales and net losses of $9,000 related to other asset sales. The Company also recognized no deferred losses and recorded $100,000 write-downs on real estate properties owned. Repossessed assets sold during the same period in 2024 resulted in net gains of $17,000 related to real estate asset sales and net gains of $69,000 related to other asset sales. The Company also recognized no deferred losses and recorded no write-downs on real estate properties owned.

Loan Quality and Allowance for Credit Losses

The allowance for credit losses represents management’s estimate of the reserve necessary to adequately account for probable losses existing in the current portfolio. The provision for credit losses is the charge against current earnings that is determined by management as the amount needed to maintain an adequate allowance for credit losses. In determining the adequacy of the allowance for credit losses, and therefore the provision to be charged to current earnings, management relies predominantly on a disciplined credit review and approval process that extends to the full range of the Company’s credit exposure. The review process is directed by overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Factors considered by management in evaluating the overall adequacy of the allowance include a migration analysis of the historical net loan losses by loan segment, the level and composition of nonaccrual, past due and renegotiated loans, trends in volumes and terms of loans, effects of changes in risk selection and underwriting standards or lending practices, lending staff changes, concentrations of credit, industry conditions and the current economic conditions in the region where the Company operates.

Management reviews economic factors including the potential for reduced cash flow for commercial operating loans from reduction in sales or increased operating costs, decreased occupancy rates for commercial buildings, reduced levels of home sales for commercial land developments, the uncertainty regarding grain prices, increased operating costs for farmers, and increased levels of unemployment and bankruptcy impacting consumer’s ability to pay. Each of these economic uncertainties was taken into consideration in developing the level of the reserve. Management considers the allowance for credit losses a critical accounting policy.

47

Management recognizes there are risk factors that are inherent in the Company’s loan portfolio. All financial institutions face risk factors in their loan portfolios because risk exposure is a function of the business. A portion of the Company’s operations (and therefore its loans) are concentrated in Illinois, Missouri, Texas, and Wisconsin areas, where agriculture is a major industry. Accordingly, lending and other business relationships with agriculture-based businesses are critical to the Company’s success. At June 30, 2025, the Company’s loan portfolio included $687.8 million of loans to borrowers whose businesses are directly related to agriculture. Of this amount, $584.5 million was concentrated in other grain farming. Total loans to borrowers whose businesses are directly related to agriculture increased $57.2 million from $630.6 million at December 31, 2024 while loans concentrated in other grain farming increased $76.9 million from $507.6 million at December 31, 2024. While the Company adheres to sound underwriting practices, including collateralization of loans, any extended period of low commodity prices, drought conditions, significantly reduced yields on crops and/or reduced levels of government assistance to the agricultural industry could result in an increase in the level of problem agriculture loans and potentially result in loan losses within the agricultural portfolio. In addition, the Company has $221.5 million of loans to motels and hotels. The performance of these loans is dependent on borrower specific issues as well as the general level of business and personal travel within the region. While the Company adheres to sound underwriting standards, a prolonged period of reduced business or personal travel could result in an increase in nonperforming loans to this business segment and potentially in loan losses. The Company also has $1.0 billion of loans to lessors of non-residential buildings, and $616.2 million of loans to lessors of residential buildings and dwellings.

The structure of the Company’s loan approval process is based on progressively larger lending authorities granted to individual loan officers, loan committees, and ultimately the Board of Directors. Outstanding balances to one borrower or affiliated borrowers are limited by federal regulation; however, limits well below the regulatory thresholds are generally observed. Most of the Company’s loans are to businesses located in the geographic market areas served by the Company’s branch bank system. Additionally, a significant portion of the collateral securing the loans in the portfolio is located within the Company’s primary geographic footprint. In general, the Company adheres to loan underwriting standards consistent with industry guidelines for all loan segments.

The Company minimizes credit risk by adhering to sound underwriting and credit review policies. Management and the board of directors of the Company review these policies at least annually. Senior management is actively involved in business development efforts and the maintenance and monitoring of credit underwriting and approval. The loan review system and controls are designed to identify, monitor and address asset quality problems in an accurate and timely manner. The board of directors and management review the status of problem loans each month and formally determine a best estimate of the allowance for credit losses on a quarterly basis. In addition to internal policies and controls, regulatory authorities periodically review asset quality and the overall adequacy of the allowance for credit losses.

48

Analysis of the allowance for credit losses as of June 30, 2025 and 2024, and of changes in the allowance for the three and six months ended June 30, 2025 and 2024, is as follows (dollars in thousands):

		Three months ended June 30,								Six months ended June 30,
		2025				2024				2025				2024
Average loans outstanding, net of unearned income		$	5,743,312			$	5,529,211			$	5,674,946			$	5,526,698
Allowance-beginning of period			70,051				67,936				70,182				68,675
1-4 family residential			55				34				94				101
Commercial real estate			70				—				408				—
Agricultural			1,386				209				2,503				261
Commercial and industrial			489				368				712				642
Consumer			261				374				627				800
Total charge-offs			2,261				985				4,344				1,804
Recoveries:
1-4 family residential			134				100				152				149
Commercial real estate			3				5				11				166
Agricultural			217				—				217				—
Commercial and industrial			282				44				372				108
Consumer			167				129				351				292
Total recoveries			803				278				1,103				715
Net charge-offs (recoveries)			1,458				707				3,241				1,089
Provision (release) for credit losses			2,567				1,083				4,219				726
Allowance-end of period		$	71,160			$	68,312			$	71,160			$	68,312
Ratio of annualized net charge-offs to average loans			0.10	%			0.05	%			0.11	%			0.04	%
Ratio of allowance for credit losses to loans outstanding (at amortized cost)			1.23	%			1.23	%			1.23	%			1.23	%
Ratio of allowance for credit losses to nonperforming loans			325	%			358	%			325	%			358	%

The allowance for credit losses to nonperforming loans ratio has remained consistent due to the amount of nonperforming loans changing at a similar rate as the loan portfolio.

During the first six months of 2025, the Company had net charge offs of $3.2 million compared to net charge offs of $1.1 million in 2024. During the first six months of 2025, the Company had the following significant charge offs, one commercial real estate loan to one borrower totaling $338,000, nine agricultural loans to eight borrowers totaling $1.8 million, and three commercial operating loans to three borrowers totaling $620,000. During the first six months of 2024, the Company had the following significant charge offs, one commercial real estate loan to one borrower totaling $193,000.

Deposits

Funding of the Company’s earning assets is substantially provided by a combination of consumer, commercial and public fund deposits. The Company continues to focus its strategies and emphasis on retail core deposits, the major component of funding sources. The following table sets forth the average deposits and weighted average rates for the six months ended June 30, 2025 and 2024 and for the year ended December 31, 2024 (dollars in thousands):

		Six months ended June 30, 2025								Six months ended June 30, 2024								Year ended December 31, 2024
		Average Balance				Weighted Average Rate				Average Balance				Weighted Average Rate				Average Balance				Weighted Average Rate
Demand deposits:
Non-interest-bearing		$	1,386,330			—%				$	1,403,606			—%				$	1,407,537			—%
Interest-bearing			3,079,773				2.00	%			3,029,068				2.25	%			3,040,397				2.24	%
Savings			639,424				0.10	%			697,953				0.10	%			675,622				0.12	%
Time deposits			1,050,342				3.43	%			1,002,655				3.64	%			1,019,629				3.74	%
Total average deposits		$	6,155,869				1.59	%		$	6,133,282				1.72	%		$	6,143,185				1.74	%

49

During the first six months of 2025, the average balance of deposits increased by $12.7 million from the average balance for the year ended December 31, 2024. Average non-interest-bearing deposits decreased by $21.2 million, average interest-bearing balances increased by $39.4 million, average savings account balances decreased $36.2 million, and average balances of time deposits increased $30.7 million. Approximately 99% of the Company’s deposit accounts are less than $250,000. The average account balance for all deposit customers is approximately $23,000.

The following table sets forth the high and low month-end balances for the six months ended June 30, 2025 and 2024 and for the year ended December 31, 2024 (in thousands):

	Six months ended June 30, 2025				Six months ended June 30, 2024				Year ended December 31, 2024
High month-end balances of total deposits	$	6,284,705			$	6,242,937			$	6,242,937
Low month-end balances of total deposits		6,081,565				6,104,309				6,057,095

Balances of time deposits, including brokered time deposits of $100,000 or more include time deposits maintained for public fund entities and consumer time deposits. The following table sets forth the maturity of time deposits, including brokered time deposits of $100,000 or more at June 30, 2025 and December 31, 2024 (in thousands):

		June 30, 2025				December 31, 2024
3 months or less		$	252,615			$	237,309
Over 3 through 6 months			182,348				206,586
Over 6 through 12 months			117,985				121,154
Over 12 months			99,244				72,818
Total		$	652,192			$	637,867

50

Repurchase Agreements and Other Borrowings

Securities sold under agreements to repurchase are short-term obligations of First Mid Bank. These obligations are collateralized with certain government securities that are direct obligations of the United States or one of its agencies. These retail repurchase agreements are offered as a cash management service to its corporate customers. Other borrowings consist of Federal Home Loan Bank (“FHLB”) advances, federal funds purchased, loans (short-term or long-term debt) that the Company has outstanding and junior subordinated debentures. Information relating to securities sold under agreements to repurchase and other borrowings as of June 30, 2025 and December 31, 2024 is presented below (dollars in thousands):

		June 30, 2025				December 31, 2024
Securities sold under agreements to repurchase		$	193,941			$	204,122
Federal Home Loan Bank advances:
FHLB-overnight			25,000				90,000
Fixed term-due in one year or less			50,000				7,435
Fixed term-due after one year			170,000				145,085
Other borrowings:
Debt due in one year or less			—				—
Subordinated debt			79,590				87,472
Junior subordinated debentures			24,384				24,280
Total		$	542,915			$	558,394
Average interest rate at end of period			3.21	%			3.30	%
Maximum outstanding at any month-end:
Securities sold under agreements to repurchase		$	219,772			$	282,285
Federal Home Loan Bank advances:
FHLB-overnight			25,000				90,000
Fixed term-due in one year or less			50,000				65,000
Fixed term-due after one year			195,000				223,744
Other borrowings:
Debt due in one year or less			4,000				—
Subordinated debt			87,505				106,934
Junior subordinated debentures			24,384				24,280
Averages for the period (YTD):
Securities sold under agreements to repurchase		$	200,505			$	221,789
Federal Home Loan Bank advances:
FHLB-overnight			10,313				560
Fixed term-due in one year or less			14,586				45,587
Fixed term-due after one year			181,754				193,802
Other borrowings:
Debt due in one year or less			729				—
Subordinated debt			81,073				99,313
Junior subordinated debentures			24,333				24,168
Total		$	513,293			$	585,219
Average interest rate during the period			3.54	%			3.71	%

51

Securities sold under agreements to repurchase decreased $10.2 million during the first six months of 2025 primarily due to the seasonal demands in balances. FHLB advances represent borrowings by First Mid Bank to economically fund loan demand. At June 30, 2025 the advances, consisted of $245.0 million as follows:

Advance				Term (in years)		Interest Rate		Maturity Date
	25,000,000			overnight		4.45%		July 1, 2025
	25,000,000			1.0		4.33%		November 17, 2025
	25,000,000			3.0		4.40%		June 15, 2026
	25,000,000			3.0		4.37%		May 10, 2027
	25,000,000			3.0		4.32%		May 17, 2027
	25,000,000			5.0		3.95%		June 29, 2028
	25,000,000			5.0		3.93%		June 27, 2029
	5,000,000			10.0		1.15%		October 3, 2029
	5,000,000			10.0		1.12%		October 3, 2029
	10,000,000			10.0		1.39%		December 31, 2029
	25,000,000			5.0		3.46%		February 7, 2030
	25,000,000			10.0		2.71%		March 5, 2035

The Company is party to a revolving credit agreement with The Northern Trust Company in the amount of $15.0 million. There was no balance on this line of credit as of June 30, 2025. This loan was renewed on April 4, 2025 for one year as a revolving credit agreement. The interest rate is floating at 2.25% over the federal funds rate. The Company and First Mid Bank, as applicable, were in compliance with the existing covenants at June 30, 2025 and 2024, and December 31, 2024.

On October 6, 2020, the Company issued and sold $96.0 million in aggregate principal amount of its 3.95% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Notes”). The Notes were issued pursuant to the Indenture, dated as of October 6, 2020 (the “Base Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”), as supplemented by the First Supplemental Indenture, dated as of October 6, 2020 (the “Supplemental Indenture”), between the Company and the Trustee. The Base Indenture, as amended and supplemented by the Supplemental Indenture, governs the terms of the Notes and provides that the Notes are unsecured, subordinated debt obligations of the Company and will mature on October 15, 2030. From and including the date of issuance to, but excluding October 15, 2025, the Notes will bear interest at an initial rate of 3.95% per annum. From and including October 15, 2025 to, but excluding the maturity date or earlier redemption, the Notes will bear interest at a floating rate equal to three-month Term SOFR plus a spread of 383 basis points, or such other rate as determined pursuant to the Supplemental Indenture, provided that in no event shall the applicable floating interest rate be less than zero per annum. On June 7, 2024, August 27, 2024, and September 6, 2024, the Company repurchased in open market transactions and subsequently cancelled $4.0 million, $15.0 million, and $1.0 million respectively, of the outstanding Notes. As a result, as of June 30, 2025, $76 million in aggregate principal amount of the Notes remain issued and outstanding.

The Company may, beginning with the interest payment date of October 15, 2025, and on any interest payment date thereafter, redeem the Notes, in whole or in part, at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. The Company may also redeem the Notes at any time, including prior to October 15, 2025, at the Company’s option, in whole but not in part, if: (i) a change or prospective change in law occurs that could prevent the Company from deducting interest payable on the Notes for U.S. federal income tax purposes; (ii) a subsequent event occurs that could preclude the Notes from being recognized as Tier 2 capital for regulatory capital purposes; or (iii) the Company is required to register as an investment company under the Investment Company Act of 1940, as amended; in each case, at a redemption price equal to 100% of the principal amount of the Notes plus any accrued and unpaid interest to but excluding the redemption date.

On August 15, 2023, the Company assumed, as part of the Blackhawk Bancorp, Inc. acquisition, $7.5 million principal amount of 3.5% Fixed-to-Floating Rate Subordinated Notes due 2031 (the “Blackhawk Subordinated Debt I Notes”). The Blackhawk Subordinated Debt I was issued pursuant to the Indenture (the "Blackhawk Subordinated Debt I Indenture") between the Company and UMB Bank, as trustee. The Blackhawk Subordinated Debt I Indenture governs the terms of Blackhawk Subordinated Debt I Notes and provides that the Blackhawk Subordinated Debt I Notes are unsecured, subordinated debt obligations of the Company and will mature on May 14, 2031. From and including the date of issuance to, but excluding May 14, 2026, Blackhawk Subordinated Debt I Notes will bear interest at an initial rate of 3.5% per annum. From and including May 14, 2026 to, but excluding the maturity date, Blackhawk Subordinated Debt I Notes will bear interest at a floating rate equal to three-month Term SOFR plus a spread of 285 basis points. On February 5, 2025, the Company repurchased in open market transactions and subsequently cancelled $3.0 million of the outstanding Blackhawk Subordinated Debt I Notes. As a result, as of June 30, 2025, $4.5 million in aggregate principal amount of Blackhawk Subordinated Debt I Notes remain issued and outstanding.

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On August 15, 2023, the Company assumed, as part of the Blackhawk Bancorp, Inc. acquisition, $7.5 million principal amount of 3.875% Fixed-to-Floating Rate Subordinated Notes due 2036 (the “Blackhawk Subordinated Debt II Notes”). The Blackhawk Subordinated Debt II was issued pursuant to the Indenture (the "Blackhawk Subordinated Debt II Indenture") between the Company and UMB Bank, as trustee. The Blackhawk Subordinated Debt II Indenture governs the terms of Blackhawk Subordinated Debt II Notes and provides that the Blackhawk Subordinated Debt II Notes are unsecured, subordinated debt obligations of the Company and will mature on May 14, 2036. From and including the date of issuance to, but excluding May 14, 2031, Blackhawk Subordinated Debt II Notes will bear interest at an initial rate of 3.875% per annum. From and including May 14, 2031 to, but excluding the maturity date, Blackhawk Subordinated Debt II Notes will bear interest at a floating rate equal to three-month Term SOFR plus a spread of 255 basis points. On February 5, 2025, the Company repurchased in open market transactions and subsequently cancelled $7.0 million of the outstanding Blackhawk Subordinated Debt II Notes. As a result, as of June 30, 2025, $500,000 in aggregate principal amount of Blackhawk Subordinated Debt II Notes remain issued and outstanding.

On April 26, 2006, the Company completed the issuance and sale of $10.0 million of fixed/floating rate trust preferred securities through First Mid-Illinois Statutory Trust II (“Trust II”), a statutory business trust and wholly owned unconsolidated subsidiary of the Company, as part of a pooled offering. The Company established Trust II for the purpose of issuing the trust preferred securities. The $10.0 million in proceeds from the trust preferred issuance and an additional $310,000 for the Company’s investment in common equity of Trust II, a total of $10.3 million, was invested in junior subordinated debentures of the Company. The underlying junior subordinated debentures issued by the Company to Trust II mature in 2036, bore interest at a fixed rate of 6.98% paid quarterly until June 15, 2011 and then converted to floating rate (SOFR plus 160 basis points, 6.18% and 6.81% at June 30, 2025 and December 31, 2024, respectively).

On September 8, 2016, the Company assumed the trust preferred securities of Clover Leaf Statutory Trust I (“CLST I”), a statutory business trust that was a wholly owned unconsolidated subsidiary of First Clover Financial. The $4.0 million of trust preferred securities and an additional $124,000 investment in common equity of CLST I, is invested in junior subordinated debentures issued to CLST I. The subordinated debentures mature in 2035, bear interest at three-month SOFR plus 185 basis points (6.43% and 7.06% at June 30, 2025 and December 31, 2024, respectively) and resets quarterly.

On May 1, 2018, the Company assumed the trust preferred securities of FBTC Statutory Trust I (“FBTCST I”), a statutory business trust that was a wholly owned unconsolidated subsidiary of First BancTrust Corporation. The $6.0 million of trust preferred securities and an additional $186,000 investment in common equity of FBTCST I is invested in junior subordinated debentures issued to FBTCST I. The subordinated debentures mature in 2035, bear interest at three-month SOFR plus 170 basis points (6.28% and 6.91% at June 30, 2025 and December 31, 2024, respectively) and resets quarterly.

On August 15, 2023, the Company assumed the trust preferred securities of Blackhawk Statutory Trust I (“BHST I”), a statutory business trust that was a wholly owned unconsolidated subsidiary of Blackhawk Bancorp, Inc. The $1.0 million of trust preferred securities and an additional $31,000 investment in common equity of BHST I is invested in junior subordinated debentures issued to BHST I. The subordinated debentures mature in 2032, bear interest at three-month SOFR plus 325 basis points (7.81% and 8.17% at June 30, 2025 and December 31, 2024, respectively) and resets quarterly.

On August 15, 2023, the Company assumed the trust preferred securities of Blackhawk Statutory Trust II (“BHST II”), a statutory business trust that was a wholly owned unconsolidated subsidiary of Blackhawk Bancorp, Inc. The $4.0 million of trust preferred securities and an additional $124,000 investment in common equity of BHST II is invested in junior subordinated debentures issued to BHST II. The subordinated debentures mature in 2035, bear interest at three-month SOFR plus 205 basis points (6.62% and 7.25% at June 30, 2025 and December 31, 2024, respectively) and resets quarterly.

The trust preferred securities issued by Trust II, CLST I, FBTCST I, BHST I, and BHST II are included as Tier 1 capital of the Company for regulatory capital purposes. On March 1, 2005, the Federal Reserve Board adopted a final rule that allows the continued limited inclusion of trust preferred securities in the calculation of Tier 1 capital for regulatory purposes. The final rule provided a five-year transition period, ending September 30, 2010, for application of the revised quantitative limits. On March 17, 2009, the Federal Reserve Board adopted an additional final rule that delayed the effective date of the new limits on inclusion of trust preferred securities in the calculation of Tier 1 capital until March 31, 2012. The application of the revised quantitative limits did not and is not expected to have a significant impact on its calculation of Tier 1 capital for regulatory purposes or its classification as well-capitalized. The Dodd-Frank Act, signed into law July 21, 2010, removes trust preferred securities as a permitted component of a holding company’s Tier 1 capital after a three-year phase-in period beginning January 1, 2013 for larger holding companies. For holding companies with less than $15.0 billion in consolidated assets, existing issues of trust preferred securities are grandfathered and not subject to this new restriction.

Similarly, the final rule implementing the Basel III reforms allows holding companies with less than $15.0 billion in consolidated assets as of December 31, 2009 to continue to count toward Tier 1 capital any trust preferred securities issued before May 19, 2010. New issuances of trust preferred securities, however, would not count as Tier 1 regulatory capital.

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In addition to requirements of the Dodd-Frank Act discussed above, the act also required the federal banking agencies to adopt certain rules that prohibit banks and their affiliates from engaging in proprietary trading and investing in and sponsoring certain unregistered investment companies (defined as hedge funds and private equity funds). This rule is generally referred to as the “Volcker Rule.” The rules permit the retention of an interest in or sponsorship of covered funds by banking entities under $15.0 billion in assets (such as the Company) if (1) the collateralized debt obligation was established and issued prior to May 19, 2010, (2) the banking entity reasonably believes that the offering proceeds received by the collateralized debt obligation were invested primarily in qualifying trust preferred collateral, and (3) the banking entity’s interests in the collateralized debt obligation was acquired on or prior to December 10, 2013. The Company does not currently anticipate that the Volcker Rule will have a material effect on the operations of the Company or First Mid Bank.

Interest Rate Sensitivity

The Company seeks to maximize its net interest margin while maintaining an acceptable level of interest rate risk. Interest rate risk can be defined as the amount of forecasted net interest income that may be gained or lost due to changes in the interest rate environment, a variable over which management has no control. Interest rate risk, or sensitivity, arises when the maturity or repricing characteristics of interest-bearing assets differ significantly from the maturity or repricing characteristics of interest- bearing liabilities. The Company monitors its interest rate sensitivity position to maintain a balance between rate sensitive assets and rate sensitive liabilities. This balance serves to limit the adverse effects of changes in interest rates. The Company’s asset liability management committee (ALCO) oversees the interest rate sensitivity position and directs the overall allocation of funds.

In the banking industry, a traditional way to measure potential net interest income exposure to changes in interest rates is through a technique known as “static GAP” analysis which measures the cumulative differences between the amounts of assets and liabilities maturing or repricing at various intervals. By comparing the volumes of interest-bearing assets and liabilities that have contractual maturities and repricing points at various times in the future, management can gain insight into the amount of interest rate risk embedded in the balance sheet. The following table sets forth the Company’s interest rate repricing GAP for selected maturity periods at June 30, 2025 (dollars in thousands):

		Rate Sensitive Within
		1 year				3 years				5 years				Thereafter				Total				Fair Value
Interest-earning assets:
Federal funds sold and other interest-bearing deposits		$	72,234			$	—			$	—			$	—			$	72,234			$	72,234
Certificates of deposit			2,030				—				—				—				2,030				2,030
Taxable investment securities			112,122				226,231				235,931				445,104				1,019,388				1,019,388
Nontaxable investment securities			10,889				628				2,406				50,360				64,283				64,283
Loans			3,007,544				1,886,049				627,657				245,749				5,766,999				5,442,527
Total		$	3,204,819			$	2,112,908			$	865,994			$	741,213			$	6,924,934			$	6,600,462
Interest-bearing liabilities:
Savings and NOW accounts		$	239,029			$	—			$	—			$	2,341,640			$	2,580,669			$	2,580,669
Money market accounts			1,206,140				—				—				—				1,206,140				1,206,140
Other time deposits			944,092				117,679				19,520				653				1,081,944				1,002,725
Short-term borrowings/debt			218,941				—				—				—				218,941				218,941
Long-term borrowings/debt			203,586				75,000				45,000				388				323,974				318,171
Total		$	2,811,788			$	192,679			$	64,520			$	2,342,681			$	5,411,668			$	5,326,646
Rate sensitive assets-rate sensitive liabilities		$	393,031			$	1,920,229			$	801,474			$	(1,601,468	)		$	1,513,266
Cumulative GAP			393,031				2,313,260				3,114,734				1,513,266
Cumulative amounts as % of total Rate sensitive assets			5.7	%			27.7	%			11.6	%			-23.1	%
Cumulative Ratio			5.7	%			33.4	%			45.0	%			21.9	%

The static GAP analysis shows that at June 30, 2025, the Company was asset sensitive, on a cumulative basis, through the twelve-month time horizon. This indicates that future decreases in interest rates could have an adverse effect on net interest income. There are several ways the Company measures and manages the exposure to interest rate sensitivity, including static GAP analysis. The Company’s ALCO also uses other financial models to project interest income under various rate scenarios and prepayment/extension assumptions consistent with First Mid Bank’s historical experience and with known industry trends. ALCO meets at least monthly to review the Company’s exposure to interest rate changes as indicated by the various techniques and to make necessary changes in the composition terms and/or rates of the assets and liabilities.

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Capital Resources

At June 30, 2025, the Company’s stockholders' equity increased $47.7 million or 5.6%, to $894.1 million from $846.4 million as of December 31, 2024. During the first six months of 2025, net income contributed $45.6 million to equity before the payment of dividends to stockholders. The change in market value of available-for-sale investment securities increased stockholders' equity by $11.7 million, net of tax. Dividends of $11.5 million were paid during the first six months of 2025.

The Company is subject to various regulatory capital requirements administered by the federal banking agencies. Bank holding companies follow minimum regulatory requirements established by the Board of Governors of the Federal Reserve System (“Federal Reserve System”), First Mid Bank follows similar minimum regulatory requirements established for banks by the Office of the Comptroller of the Currency (“OCC”) and the Federal Deposit Insurance Corporation, as applicable. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary action by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Quantitative measures established by regulatory capital standards to ensure capital adequacy require the Company and its subsidiary bank to maintain minimum capital amounts and ratios (set forth in the table below). Management believes that, as of June 30, 2025 and December 31, 2024, the Company and First Mid Bank, as applicable, met all capital adequacy requirements, as further detailed in Note 10 of our consolidated financial statements.

Stock Plans

Stock Incentive Plan. At the Annual Meeting of Stockholders held April 26, 2017, the stockholders approved the 2017 Stock Incentive Plan ("SI Plan"). The SI Plan was implemented to succeed the Company’s 2007 Stock Incentive Plan, which had a ten-year term. The SI Plan is intended to provide a means whereby directors, employees, consultants and advisors of the Company and its Subsidiaries may sustain a sense of proprietorship and personal involvement in the continued development and financial success of the Company and its Subsidiaries, thereby advancing the interests of the Company and its stockholders. Accordingly, directors and selected employees, consultants and advisors may be provided the opportunity to acquire shares of Common Stock of the Company on the terms and conditions established in the SI Plan.

Following the stockholders’ approval at the 2025 annual meeting of the Company, a maximum of 1,000,000 shares of common stock may be issued under the SI Plan. The Company awarded 79,635 and 53,766 restricted stock awards during 2025 and 2024, respectively and 53,130 and 39,150 as stock unit awards during 2025 and 2024, respectively.

Employee Stock Purchase Plan. At the Annual Meeting of Stockholders held April 25, 2018, the stockholders approved the First Mid-Illinois Bancshares, Inc. Employee Stock Purchase Plan (“ESPP”). The ESPP is intended to promote the interests of the Company by providing eligible employees with the opportunity to purchase shares of common stock of the Company at a 15% discount through payroll deductions. The ESPP is also intended to qualify as an employee stock purchase plan under Section 423 of the Internal Revenue Code. A maximum of 600,000 shares of common stock may be issued under the ESPP. As of June 30, 2025, 140,634 shares have been issued pursuant to the ESPP. During the six months ended June 30, 2025 and 2024, 13,970 shares and 15,935 shares, respectively, were issued pursuant to the ESPP.

Stock Repurchase Program. Since August 5, 1998, the Board of Directors has approved repurchase programs pursuant to which the Company may repurchase a total of approximately $76.7 million of the Company’s common stock. During 2025, the Company did not repurchase any shares. As of June 30, 2025, the Company had approximately $2.9 million in remaining capacity under its existing repurchase program.

Although the Company adopted the repurchase plan, the Company may make discretionary repurchases in the open market or in privately negotiated transactions from time to time. The timing, manner, price and amount of any such repurchases will be determined by the Company at its discretion and will depend upon a variety of factors including economic and market conditions, price, applicable legal requirements and other factors.

On June 24, 2025, the Board of Directors terminated this stock repurchase plan effective June 30, 2025, and adopted a new stock repurchase program that became effective on July 1, 2025.

Liquidity

Liquidity represents the ability of the Company and its subsidiaries to meet all present and future financial obligations arising in the daily operations of the business. Financial obligations consist of the need for funds to meet extensions of credit, deposit withdrawals and debt servicing. The Company’s liquidity management focuses on the ability to obtain funds economically through assets that may be converted into cash at minimal costs or through other sources. The Company’s other sources of cash include overnight federal fund lines, Federal Home Loan Bank advances, deposits of the State of Illinois, the ability to borrow at the Federal Reserve Bank of Chicago, and the Company’s operating line of credit with The Northern Trust Company.

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Details of the Company's liquidity sources include:

•First Mid Bank has $130 million available in overnight federal fund lines, including $30 million from First Horizon Bank, N.A., $20 million from U.S. Bank, N.A., $20 million from Bankers' Bank, $15 million from The Northern Trust Company, $25 million from Zions Bank, and $20 million from BMO Bank, N.A. Availability of the funds is subject to First Mid Bank meeting minimum regulatory capital requirements for total capital to risk-weighted assets and Tier 1 capital to total average assets. As of June 30, 2025, First Mid Bank met these regulatory requirements.

•First Mid Bank can borrow from the Federal Home Loan Bank as a source of liquidity. Availability of the funds is subject to the pledging of collateral to the Federal Home Loan Bank. Collateral that can be pledged includes one-to-four family residential real estate loans and securities. At June 30, 2025, the excess collateral at the FHLB would support approximately $1.6 billion of additional advances for First Mid Bank.

•First Mid Bank is a member of the Federal Reserve System and can borrow funds provided that sufficient collateral is pledged.

•First Mid Bank has received formal approval from the Federal Reserve Bank and can participate in the Borrower-in-Custody (BIC) program. As a result, the Bank can pledge loans as collateral at the Federal Reserve Bank's Discount Window while retaining custody of the pledged loans. The program enhanced our contingent liquidity position by approximately $401 million as of June 30, 2025.

•In addition, as of June 30, 2025, the Company had a revolving credit agreement in the amount of $15.0 million with The Northern Trust Company with an outstanding balance of $0 and $15.0 million in available funds. This loan was renewed on April 4, 2025 for one year as a revolving credit agreement. The interest rate is floating at 2.25% over the federal funds rate. The loan is unsecured. The Company and its subsidiary bank were in compliance with the existing covenants at June 30, 2025 and 2024 and December 31, 2024.

Management continues to monitor its expected liquidity requirements carefully, focusing primarily on cash flows from:

•lending activities, including loan commitments, letters of credit and mortgage prepayment assumptions;

•deposit activities, including seasonal demand of private and public funds;

•investing activities, including prepayments of mortgage-backed securities and call provisions on U.S. Treasury and government agency securities; and

•operating activities, including scheduled debt repayments and dividends to stockholders.

The following table summarizes significant contractual obligations and other commitments at June 30, 2025 (in thousands):

						Less than												More than
		Total				1 year				1-3 years				3-5 years				5 years
Time deposits		$	1,081,944			$	944,092			$	117,679			$	19,520			$	653
Debt			103,974				4,124				—				—				99,850
Other borrowing			438,941				268,941				75,000				70,000				25,000
Operating leases			15,234				3,139				5,575				3,541				2,979
Supplemental retirement			1,980				50				250				300				1,380
		$	1,642,073			$	1,220,346			$	198,504			$	93,361			$	129,862

For the six months ended June 30, 2025, net cash of $55.6 million was provided by operating activities, $93.1 million was used in investing activities, and $106.3 million was provided by financing activities. In total, cash and cash equivalents increased by $68.8 million since year-end 2024.

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Off-Balance Sheet Arrangements

First Mid Bank enters into financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include lines of credit, letters of credit and other commitments to extend credit. Each of these instruments involves, to varying degrees, elements of credit, interest rate and liquidity risk in excess of the amounts recognized in the consolidated balance sheets. The Company uses the same credit policies and requires similar collateral in approving lines of credit and commitments and issuing letters of credit as it does in making loans. The exposure to credit losses on financial instruments is represented by the contractual amount of these instruments. However, the Company does not anticipate any losses from these instruments. Off-balance sheet arrangements are further detailed in Note 11 of our consolidated financial statements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has been no material change in the market risk faced by the Company since December 31, 2024. For information regarding the Company’s market risk, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 4. CONTROLS AND PROCEDURES

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company’s “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act), as of the end of the period covered by this report. Based on such evaluation, such officers have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures are effective. Further, there have been no changes in the Company’s internal control over financial reporting during the last fiscal quarter that have materially affected or that are reasonably likely to affect materially the Company’s internal control over financial reporting.

PART II

ITEM 1. LEGAL PROCEEDINGS

From time to time the Company and its subsidiaries may be involved in litigation that the Company believes is a type common to our industry. None of any such existing claims are believed to be individually material at this time to the Company, although the outcome of any such existing claims cannot be predicted with certainty.

ITEM 1A. RISK FACTORS

Various risks and uncertainties, some of which are difficult to predict and beyond the Company’s control, could negatively impact the Company. As a financial institution, the Company is exposed to interest rate risk, liquidity risk, credit risk, operational risk, risks from economic or market conditions, and general business risks among others. Adverse experience with these or other risks could have a material impact on the Company’s financial condition and results of operations, as well as the value of its common stock. See the risk factors and “Supervision and Regulation” described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024. There have been no material changes to the risk factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ISSUER PURCHASES OF EQUITY SECURITIES
Period		(a) Total Number of Shares Purchased				(b) Average Price Paid per Share				(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs				(d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
April 1, 2025-April 30, 2025			—			$	—				—			$	2,941,000
May 1, 2025-May 31, 2025			—				—				—				2,941,000
June 1, 2025-June 30, 2025			—				—				—				2,941,000
Total			—			$	—				—			$	2,941,000

See heading “Stock Repurchase Program” for more information regarding stock purchases.

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ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None of the Company's directors and officers adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company's fiscal quarter ended June 30, 2025 (each as defined in Item 408 of Regulation S-K under the Securities Exchange Act of 1934, as amended).
 

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ITEM 6. EXHIBITS

The exhibits required by Item 601 of Regulation S-K and filed herewith are listed in the Exhibit Index that precedes the Signature Page and the exhibits filed.

Exhibit Number		Exhibit Index to Quarterly Report on Form 10-Q Description and Filing or Incorporation Reference
3.1		Amendment to Restated Certificate of Incorporation, dated May 12, 2025 Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed with the SEC on May 16, 2025
3.2		Restated Certificate of Incorporation, dated May 12, 2025 Incorporated by reference to Exhibit 3.2 to the Company;s Current Report on Form 8-K filed with the SEC on May 16, 2025
10.1		Ninth Amendment to the Sixth Amended and Restated Credit Agreement by and between First Mid Bancshares, Inc. and The Northern Trust Company, dated as of April 4, 2025. Incorporated by reference to Exhibit 10.1to the Company's Current Report on Form 8-K filed with the SEC on April 4, 2025
10.2		2025 Stock Incentive Plan Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on May 6, 2025
10.3		Employment Agreement between the Company and Matthew K. Smith, effective June 24, 2025 Incorporated by reference to Exhibit 10.1 to the Company's Current Report on Form 8-K filed with the SEC on June 30, 2025
10.4		Employment Agreement between the Company and Jordan D. Read, effective June 24, 2025 Incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed with the SEC on June 30, 2025
31.1		Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification pursuant to section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002
101.INS		Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File as its XBRL tags are embedded within the Inline XBRL document
101.SCH		Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents
104		Cover page formatted as Inline XBRL and contained in Exhibits 101

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FIRST MID BANCSHARES, INC.

(Registrant)

Date: August 8, 2025

/s/ Joseph R. Dively

Joseph R. Dively

Chief Executive Officer

/s/ Jordan D. Read

Jordan D. Read

Chief Financial and Risk Officer

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FAQ

What was First Mid Bancshares (FMBH) Q2 2025 EPS?

Diluted EPS was $0.98, up 19% from $0.82 a year earlier.

How did net interest income perform in Q2 2025?

Net interest income increased 13% YoY to $63.9 million as funding costs declined.

What is the size of unrealized losses in FMBH’s securities portfolio?

After-tax unrealized losses on available-for-sale securities total $130.7 million at 30 Jun 2025.

How much did First Mid Bancshares set aside for credit losses?

The Q2 2025 provision was $2.6 million (six-month total $4.2 million).

Did deposits grow during the quarter?

Yes, deposits rose to $6.19 billion, a $133 million increase since year-end 2024.

What dividend did FMBH pay in Q2 2025?

The company paid a quarterly cash dividend of $0.24 per share (total $5.7 million).