Company Overview - First Mid Bancshares (FMBH) is a bank holding company headquartered in Mattoon, operating in the Finance sector [3] - The stock has experienced a price change of -1.9% since the beginning of the year [3] Dividend Information - FMBH currently pays a dividend of $0.24 per share, resulting in a dividend yield of 2.66% [3] - The company's annualized dividend of $0.96 has increased by 2.1% from the previous year [4] - Over the past five years, FMBH has raised its dividend four times, averaging an annual increase of 3.91% [4] - The current payout ratio for FMBH is 27%, indicating that it pays out 27% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for FMBH's earnings in 2025 is projected at $3.69 per share, reflecting a year-over-year growth rate of 6.03% [5] Investment Considerations - FMBH is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - The company is positioned as a solid dividend option compared to high-growth firms or tech start-ups that typically do not offer dividends [6][7]

Part I - Financial Information [Item 1. Financial Statements](index=2&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents First Mid Bancshares, Inc.'s unaudited condensed consolidated financial statements for Q1 2025 and 2024, with detailed notes on accounting and specific financial items [Condensed Consolidated Balance Sheets](index=2&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $7.57 billion at March 31, 2025, from $7.52 billion at December 31, 2024, driven by cash and net loan growth, with stockholders' equity rising to $870.9 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$7,572,688** | **$7,519,734** | | Cash and cash equivalents | $201,470 | $121,216 | | Net loans | $5,625,163 | $5,595,666 | | Total deposits | $6,130,380 | $6,057,096 | | **Total Liabilities** | **$6,701,739** | **$6,673,343** | | **Total Stockholders' Equity** | **$870,949** | **$846,391** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For the three months ended March 31, 2025, net income rose to $22.2 million from $20.5 million in the prior-year period, driven by a 7.1% increase in net interest income despite higher credit loss provisions Income Statement Summary (in thousands, except per share data) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net Interest Income | $59,409 | $55,470 | | Provision for credit losses | $1,652 | ($357) | | Total Other Income | $24,864 | $24,478 | | Total Other Expense | $54,472 | $53,362 | | **Net Income** | **$22,171** | **$20,503** | | **Diluted EPS** | **$0.93** | **$0.86** | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income significantly increased to $29.2 million in Q1 2025 from $9.3 million in Q1 2024, primarily due to unrealized gains on available-for-sale securities Comprehensive Income (in thousands) | Metric | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net Income | $22,171 | $20,503 | | Other comprehensive income (loss), net of taxes | $7,033 | ($11,240) | | **Comprehensive Income** | **$29,204** | **$9,263** | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity grew from $846.4 million at year-end 2024 to $870.9 million by March 31, 2025, driven by net income and other comprehensive income - Key drivers for the change in stockholders' equity in Q1 2025 included net income of **$22.2 million** and other comprehensive income of **$7.0 million**[9](index=9&type=chunk) - The company paid cash dividends of **$0.24 per share**, totaling **$5.7 million**, during the first quarter of 2025[9](index=9&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and cash equivalents increased by $80.3 million to $201.5 million in Q1 2025, supported by operating, investing, and financing activities, including a net increase in deposits Cash Flow Summary (in thousands) | Metric | Three months ended March 31, 2025 | | :--- | :--- | | Net cash provided by operating activities | $47,884 | | Net cash provided by investing activities | $4,545 | | Net cash provided by financing activities | $27,825 | | **Increase in cash and cash equivalents** | **$80,254** | | Cash and cash equivalents at end of period | $201,470 | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures for the financial statements, covering accounting basis, EPS, investment securities, loan portfolio, goodwill, borrowings, fair value, leases, derivatives, regulatory capital, and off-balance sheet commitments [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=47&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses Q1 2025 financial condition and operations, highlighting a net income of $22.2 million, a 3.60% net interest margin, and strong capital ratios, alongside balance sheet, credit quality, capital, and liquidity analysis Q1 2025 Performance Highlights | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income | $22.2 million | $20.5 million | | Diluted EPS | $0.93 | $0.86 | | Return on average assets | 1.19% | 1.07% | | Net interest margin (tax equivalent) | 3.60% | 3.25% | - Total assets grew to **$7.6 billion** at March 31, 2025, from **$7.5 billion** at year-end 2024, with net loans increasing by **$29.5 million**[130](index=130&type=chunk) - Credit quality remains a focus, with nonperforming loans at **$26.6 million** (**0.47%** of total loans) at the end of Q1 2025, down from **$29.8 million** at year-end 2024[133](index=133&type=chunk)[166](index=166&type=chunk) [Results of Consolidated Operations](index=51&type=section&id=Results%20of%20Consolidated%20Operations) Q1 2025 operations showed a 7.3% increase in tax-equivalent net interest income to $60.2 million, slight non-interest income growth, and a 2.1% rise in non-interest expense, with a $1.7 million provision for credit losses - Tax equivalent net interest income increased by **$4.1 million** year-over-year, primarily due to a favorable impact from rate changes[145](index=145&type=chunk) - Non-interest income was boosted by higher insurance commissions and wealth management revenues, partially offset by a decrease in ATM/debit card revenue and other income[149](index=149&type=chunk) - Non-interest expense increased mainly due to annual salary raises and nonrecurring technology project expenses[154](index=154&type=chunk) [Analysis of Consolidated Balance Sheets](index=56&type=section&id=Analysis%20of%20Consolidated%20Balance%20Sheets) The balance sheet analysis shows a slight decrease in investment securities to $1.23 billion and a 0.5% increase in loans to $5.70 billion, with nonperforming loans decreasing to 0.47% of total loans - The investment portfolio decreased by **$32.4 million** from year-end 2024, mainly due to sales, paydowns, and maturities[155](index=155&type=chunk) - Total loans increased by **$26.4 million** (**0.5%**) from year-end 2024, driven by construction, multifamily, and seasonal agricultural loans[157](index=157&type=chunk) - Nonperforming loans decreased to **$26.6 million** at March 31, 2025, from **$29.8 million** at December 31, 2024[166](index=166&type=chunk) - The allowance for credit losses stood at **1.23%** of total loans outstanding at the end of Q1 2025[175](index=175&type=chunk) [Interest Rate Sensitivity](index=70&type=section&id=Interest%20Rate%20Sensitivity) A static GAP analysis at March 31, 2025, indicates the company was liability sensitive within the one-year horizon, suggesting potential adverse effects from rising interest rates on net interest income - The static GAP analysis at March 31, 2025, indicates a liability-sensitive position within the one-year horizon, with a cumulative GAP of **$432.4 million**[195](index=195&type=chunk) [Capital Resources](index=72&type=section&id=Capital%20Resources) The company's capital position strengthened in Q1 2025, with stockholders' equity increasing by $24.6 million to $870.9 million, and all regulatory capital ratios remaining well above 'well-capitalized' standards - Stockholders' equity increased by **2.9%** during Q1 2025, driven by net income and favorable changes in the market value of available-for-sale securities[196](index=196&type=chunk) Regulatory Capital Ratios (Company) | Ratio | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Tier 1 capital to risk weighted assets | 13.13% | 12.82% | | Total capital to risk weighted assets | 15.59% | 15.37% | - The company has approximately **$2.9 million** remaining under its stock repurchase program as of March 31, 2025, with no shares repurchased during the quarter[201](index=201&type=chunk) [Liquidity](index=72&type=section&id=Liquidity) The company maintains a strong liquidity position through cash flows, federal fund lines, FHLB borrowing capacity, and a revolving credit agreement, with cash and cash equivalents increasing by $80.3 million - The company has multiple sources of liquidity, including **$130 million** in federal fund lines and approximately **$1.6 billion** in additional borrowing capacity from the FHLB[206](index=206&type=chunk) - Total contractual obligations and other commitments as of March 31, 2025, amounted to approximately **$1.6 billion**, with **$1.15 billion** due in less than one year[203](index=203&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) No material changes in market risk have occurred since December 31, 2024, with further details available in the company's 2024 Annual Report on Form 10-K - There has been no material change in the market risk faced by the Company since December 31, 2024[205](index=205&type=chunk) [Item 4. Controls and Procedures](index=75&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Company's disclosure controls and procedures are deemed effective as of the end of the reporting period[207](index=207&type=chunk) - No material changes occurred in the Company's internal control over financial reporting during the last fiscal quarter[207](index=207&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=75&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in routine litigation, but management believes existing claims will not materially adversely affect its financial condition or results of operations - The Company is subject to claims and lawsuits in the ordinary course of business, but management does not expect them to have a material adverse effect[209](index=209&type=chunk) [Item 1A. Risk Factors](index=75&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes have occurred to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - No material changes to the risk factors described in the Company's 2024 Annual Report on Form 10-K have occurred[210](index=210&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=75&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company did not repurchase any equity securities in Q1 2025, with approximately $2.9 million remaining available under its stock repurchase program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased | | :--- | :--- | :--- | :--- | | Jan 2025 | 0 | $0 | $2,941,000 | | Feb 2025 | 0 | $0 | $2,941,000 | | Mar 2025 | 0 | $0 | $2,941,000 | | **Total** | **0** | **$0** | **$2,941,000** | [Item 5. Other Information](index=75&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No directors or officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - No directors or officers adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the quarter ended March 31, 2025[215](index=215&type=chunk) [Item 6. Exhibits](index=77&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - Exhibits filed with this report include CEO and CFO certifications under Sarbanes-Oxley Sections 302 and 906, and XBRL data files[217](index=217&type=chunk)

Core Insights - First Mid Bancshares (FMBH) reported revenue of $84.27 million for the quarter ended March 2025, reflecting a year-over-year increase of 5.4% [1] - The earnings per share (EPS) for the quarter was $0.96, up from $0.93 in the same quarter last year, with an EPS surprise of +2.13% compared to the consensus estimate of $0.94 [1] Financial Performance Metrics - The efficiency ratio was reported at 58.9%, better than the average estimate of 61.2% from three analysts [4] - The net interest margin stood at 3.6%, exceeding the average estimate of 3.4% from three analysts [4] - Average earning assets were $6.77 billion, slightly below the estimated $6.86 billion from two analysts [4] - Non-interest income was $24.86 million, lower than the average estimate of $26.94 million from three analysts [4] - Wealth management revenues matched the average estimate at $5.80 million [4] - Insurance commissions were reported at $9.93 million, below the average estimate of $10.18 million from two analysts [4] - Service charges totaled $2.90 million, compared to the average estimate of $3.04 million from two analysts [4] - Net interest income (FTE) was $60.16 million, surpassing the average estimate of $57.90 million from two analysts [4] - ATM/debit card revenue was $3.65 million, lower than the estimated $4.07 million from two analysts [4] - Other income was reported at $2.06 million, below the average estimate of $3 million from two analysts [4] - Net interest income was $59.41 million, exceeding the average estimate of $57.82 million from two analysts [4] - Mortgage banking revenues were $0.71 million, below the average estimate of $0.89 million from two analysts [4] Stock Performance - Shares of First Mid Bancshares have returned -2.1% over the past month, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - First Mid Bancshares (FMBH) reported quarterly earnings of $0.96 per share, exceeding the Zacks Consensus Estimate of $0.94 per share, and showing an increase from $0.93 per share a year ago, representing an earnings surprise of 2.13% [1] - The company posted revenues of $84.27 million for the quarter ended March 2025, which was a 5.8% increase from $79.95 million year-over-year, but missed the Zacks Consensus Estimate by 0.50% [2] - Over the last four quarters, First Mid Bancshares has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Group 2 - The stock has underperformed the market, losing about 7.6% since the beginning of the year compared to the S&P 500's decline of 5.5% [3] - The current consensus EPS estimate for the upcoming quarter is $0.89 on revenues of $83.7 million, and for the current fiscal year, it is $3.61 on revenues of $339.35 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 25% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Executive Summary & Highlights [CEO Commentary](index=1&type=section&id=CEO%20Commentary) First Mid achieved record Q1 2025 net income, driven by strategic focus on return on assets, loan/deposit growth, and net interest margin expansion - Achieved **record high quarterly net income in Q1 2025**, reflecting a strategic focus on driving a higher return on assets[3](index=3&type=chunk) - Delivered **growth in both loans and deposits** during a seasonally pressured quarter[3](index=3&type=chunk) - Significantly **expanded net interest margin** through increased earning asset yields and decreased average cost of funds[3](index=3&type=chunk) - Successfully completed a **retail online system conversion**, enhancing customer product and relationship growth platform[3](index=3&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) First Mid reported record Q1 2025 net income of $22.2 million ($0.93 diluted EPS), with net interest margin expanding to 3.60% Q1 2025 Key Financial Highlights | Metric | Value | Change (QoQ) | | :--------------------------------- | :------------------- | :------------------- | | Quarterly Net Income | $22.2 million | +$0.13 diluted EPS | | Adjusted Net Income (non-GAAP) | $23.1 million | +$0.09 diluted EPS | | Net Interest Margin (tax equivalent, non-GAAP) | 3.60% | Expanded | | Tangible Book Value per Share (non-GAAP) | - | +4.4% | | Regular Quarterly Dividend | $0.24 per share | - | Financial Performance Analysis [Net Interest Income](index=1&type=section&id=Net%20Interest%20Income) Net interest income for Q1 2025 increased QoQ by $0.5 million (0.8%) and YoY by $3.9 million (7.1%), primarily due to interest expense reduction Net Interest Income Trends | Period | Net Interest Income | Change QoQ | Change YoY | | :-------------------- | :------------------ | :--------- | :--------- | | Q1 2025 vs Q4 2024 | +$0.5 million | +0.8% | - | | Q1 2025 vs Q1 2024 | +$3.9 million | - | +7.1% | - The QoQ increase was primarily due to interest expense declining at a faster pace than interest income[4](index=4&type=chunk) - The YoY increase was largely due to a **$4.1 million decrease in interest expense** compared to Q1 2024[5](index=5&type=chunk) [Net Interest Margin](index=1&type=section&id=Net%20Interest%20Margin) Q1 2025 tax-equivalent net interest margin (non-GAAP) expanded to 3.60%, up 19 bps QoQ and 35 bps YoY, driven by higher earning asset yields and lower funding costs Net Interest Margin (Tax Equivalent, Non-GAAP) | Period | Net Interest Margin | Change QoQ | Change YoY | | :-------------------- | :------------------ | :--------- | :--------- | | Q1 2025 | 3.60% | +19 bps | +35 bps | | Q1 2025 (excluding accretion income decline) | - | +23 bps | - | - Expansion driven by both an **increase in earning asset yields** and a **decrease in funding costs**[6](index=6&type=chunk) - Company changed its net interest margin calculation methodology in Q1 2025 to be consistent with peer banks, which added **five basis points** to the Q1 2025 margin[6](index=6&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Q1 2025 noninterest income was $24.9 million, decreasing QoQ due to a prior property sale gain, but increasing YoY by $0.4 million (1.6%) driven by wealth management and insurance Noninterest Income Trends | Period | Noninterest Income | Change QoQ | Change YoY | | :-------------------- | :------------------ | :--------- | :--------- | | Q1 2025 | $24.9 million | -$1.5 million | +$0.4 million | | Q4 2024 | $26.4 million | - | - | | Q1 2024 | $24.4 million | - | - | - QoQ decline primarily driven by a **$1.3 million gain on the sale of property in Q4 2024** and **$0.2 million in securities sales losses in Q1 2025**[13](index=13&type=chunk) - Wealth management and insurance revenues were key drivers for the YoY increase, with a combined **growth of 8.2%**[14](index=14&type=chunk) - Debit card fee income decreased due to lower consumer spending[13](index=13&type=chunk)[14](index=14&type=chunk) [Noninterest Expenses](index=2&type=section&id=Noninterest%20Expenses) Q1 2025 noninterest expenses totaled $54.5 million, down QoQ due to lower nonrecurring expenses, but up YoY by $1.1 million primarily from annual compensation increases Noninterest Expenses Trends | Period | Noninterest Expense | Nonrecurring Expenses | Change QoQ (adjusted) | Change YoY | | :-------------------- | :------------------ | :-------------------- | :-------------------- | :--------- | | Q1 2025 | $54.5 million | $1.0 million | -$0.6 million | +$1.1 million | | Q4 2024 | $56.3 million | $2.2 million | - | - | - QoQ decrease in noninterest expenses was primarily due to **lower nonrecurring technology initiative expenses**[15](index=15&type=chunk) - YoY increase was driven by **annual compensation increases** and a **$0.9 million credit in Q1 2024** from a debit card fee settlement[16](index=16&type=chunk) Efficiency Ratio (Non-GAAP) | Period | Efficiency Ratio | | :-------------------- | :--------------- | | Q1 2025 | 58.9% | | Q4 2024 | 58.8% | | Q1 2024 | 59.1% | Balance Sheet & Asset Quality [Loan Portfolio](index=1&type=section&id=Loan%20Portfolio) Total loans reached $5.70 billion in Q1 2025, increasing $26.4 million (0.5%) QoQ and $199.6 million (3.6%) YoY, driven by construction, multifamily, and agriculture loans Total Loans | Period | Total Loans | Change QoQ | Change YoY | | :-------------------- | :------------------ | :--------- | :--------- | | Q1 2025 | $5.70 billion | +$26.4 million (+0.5%) | +$199.6 million (+3.6%) | - QoQ growth primarily in **construction and land development, multifamily residential properties, and agriculture operating loans**[8](index=8&type=chunk) - Largest declines QoQ were in **commercial real estate and commercial and industrial loans**[8](index=8&type=chunk) - YoY growth was strongest in **construction and development, agriculture operating lines, and commercial and industrial loans**[10](index=10&type=chunk) [Deposits](index=2&type=section&id=Deposits) Total deposits increased by $73.3 million (1.2%) QoQ to $6.13 billion, driven by noninterest bearing and time deposits, enabling reduction in FHLB borrowings and subordinated debt Total Deposits | Period | Total Deposits | Change QoQ | | :-------------------- | :------------------ | :--------- | | Q1 2025 | $6.13 billion | +$73.3 million (+1.2%) | - Primary drivers of deposit increase were **noninterest bearing and time deposits**, growing by **$65.4 million and $75.4 million** respectively[12](index=12&type=chunk) - Increased time deposits were due to retaining maturing CDs, new customer promotions, and **$52.0 million in brokered deposits**[12](index=12&type=chunk) - Strong liquidity enabled a combined **$55.5 million reduction in FHLB borrowings and subordinated debt**, lowering funding costs[12](index=12&type=chunk) [Asset Quality](index=2&type=section&id=Asset%20Quality) First Mid maintained solid asset quality in Q1 2025, with ACL at $70.1 million (1.23% of loans) and NPL decreasing to $26.6 million (0.47% of loans), though special mention loans increased Key Asset Quality Metrics (Q1 2025) | Metric | Value | | :--------------------------------- | :------------------- | | Allowance for Credit Losses (ACL) | $70.1 million | | ACL to Total Loans Ratio | 1.23% | | Provision Expense | $1.7 million | | Net Charge-offs | $1.8 million | | Non-performing Loans (NPL) | $26.6 million | | NPL to Total Loans Ratio | 0.47% | | ACL to Non-performing Loans Ratio | 263.4% | | Nonperforming Assets to Total Assets Ratio | 0.38% | | Special Mention Loans | $74.0 million | | Substandard Loans | $33.9 million | - Non-performing loans declined by **$3.2 million to $26.6 million** at quarter end[11](index=11&type=chunk) - Special mention loans increased by **$16.2 million to $74.0 million**[11](index=11&type=chunk) [Capital Levels and Dividend](index=2&type=section&id=Capital%20Levels%20and%20Dividend) The company maintained strong capital levels, exceeding 'well capitalized' thresholds, with tangible book value per share (non-GAAP) increasing by $1.07 (4.4%) in Q1 2025, and a $0.24 per share quarterly dividend declared Capital Ratios (Q1 2025) | Capital Ratio | Value | | :--------------------------------- | :------------------- | | Total capital to risk-weighted assets | 15.59% | | Tier 1 capital to risk-weighted assets | 13.13% | | Common equity tier 1 capital to risk-weighted assets | 12.73% | Tangible Book Value per Share (Non-GAAP) | Metric | Value (Q1 2025) | Change QoQ | | :--------------------------------- | :------------------- | :--------- | | Tangible book value per share | - | +$1.07 (+4.4%) | | Driven by earnings growth | - | +$0.79 | | Driven by AOCI improvement | - | +$0.28 | - The Board of Directors approved a regular quarterly dividend of **$0.24 per share**, payable on May 30, 2025[19](index=19&type=chunk) Company Information [About First Mid](index=3&type=section&id=About%20First%20Mid) First Mid Bancshares, Inc. is a $7.6 billion community-focused organization offering banking, wealth management, brokerage, Ag services, and insurance across Illinois, Missouri, Texas, and Wisconsin - First Mid Bancshares, Inc. is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., and First Mid Wealth Management Co[20](index=20&type=chunk) - A **$7.6 billion community-focused organization** offering banking, wealth management, brokerage, Ag services, and insurance[20](index=20&type=chunk) - Operates through a network of locations throughout Illinois, Missouri, Texas, and Wisconsin, and a loan production office in the greater Indianapolis area[20](index=20&type=chunk) [Non-GAAP Measures](index=3&type=section&id=Non-GAAP%20Measures) The release includes various non-GAAP financial measures to aid investor understanding of performance, which should be reviewed with GAAP results and not as a substitute - Non-GAAP financial measures are provided to offer investors useful information for understanding the Company's financial performance[21](index=21&type=chunk) - These measures include Adjusted Net Earnings, Adjusted Diluted EPS, Efficiency Ratio, Net Interest Margin (tax equivalent), Tangible Book Value per Common Share, Adjusted Tangible Book Value per Common Share, Adjusted Return on Assets, and Adjusted Return on Average Common Equity[21](index=21&type=chunk) - Non-GAAP measures should be reviewed in conjunction with GAAP results and considered supplemental, not a substitute[21](index=21&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This document contains forward-looking statements regarding First Mid's future plans and expectations, with actual results potentially differing due to risks like interest rate changes, economic conditions, and regulatory shifts - Forward-looking statements are based on certain assumptions and describe future plans, strategies, and expectations[22](index=22&type=chunk) - Actual results could differ materially due to risks and uncertainties such as changes in interest rates, general economic conditions, legislative/regulatory changes, and portfolio quality[22](index=22&type=chunk) - The company does not undertake any obligation to update or review any forward-looking information, except as required by law[22](index=22&type=chunk) [Investor Contact](index=3&type=section&id=Investor%20Contact) Contact information for investor relations is provided, including Austin Frank, SVP, Shareholder Relations, and Matt Smith, Chief Financial Officer - Investor Contact: Austin Frank, SVP, Shareholder Relations (217-258-5522, afrank@firstmid.com)[23](index=23&type=chunk)[24](index=24&type=chunk) - Investor Contact: Matt Smith, Chief Financial Officer (217-258-1528, msmith@firstmid.com)[24](index=24&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets present the company's financial position as of March 31, 2025, with total assets of $7.57 billion, total liabilities of $6.70 billion, and total stockholders' equity of $870.9 million Condensed Consolidated Balance Sheets (As of March 31, 2025) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | March 31, 2024 (in thousands) | | :--------------------------------- | :------------------------------ | :------------------------------- | :------------------------------ | | **Assets** | | | | | Cash and cash equivalents | $201,470 | $121,216 | $355,701 | | Investment securities | $1,049,003 | $1,073,510 | $1,149,752 | | Loans (net) | $5,628,807 | $5,602,280 | $5,431,359 | | Total assets | $7,572,688 | $7,519,734 | $7,678,246 | | **Liabilities & Stockholders' Equity** | | | | | Total deposits | $6,130,380 | $6,057,096 | $6,242,936 | | Total liabilities | $6,701,739 | $6,673,343 | $6,880,294 | | Total stockholders' equity | $870,949 | $846,391 | $797,952 | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statements of income present Q1 2025 financial performance, with net income of $22.17 million (up from $20.50 million in Q1 2024) and diluted EPS of $0.93 (up from $0.86) Condensed Consolidated Statements of Income (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--------------------------------- | :--------------------- | :--------------------- | | Total interest income | $87,559 | $87,672 | | Total interest expense | $28,150 | $32,202 | | Net interest income | $59,409 | $55,470 | | Provision for credit losses | $1,652 | ($357) | | Total non-interest income | $24,864 | $24,478 | | Total non-interest expense | $54,472 | $53,362 | | Net income | $22,171 | $20,503 | | Diluted earnings per common share | $0.93 | $0.86 | Net Income and EPS Quarterly Trend | Period | Net Income (in thousands) | Diluted EPS | | :-------------------- | :------------------------ | :---------- | | March 31, 2025 | $22,171 | $0.93 | | December 31, 2024 | $19,168 | $0.80 | | September 30, 2024 | $19,482 | $0.81 | | June 30, 2024 | $19,745 | $0.82 | | March 31, 2024 | $20,503 | $0.86 | [Consolidated Financial Highlights and Ratios](index=7&type=section&id=Consolidated%20Financial%20Highlights%20and%20Ratios) This section provides detailed quarterly trends for the loan and deposit portfolios, asset quality metrics, common share data, and key performance ratios over the past five quarters Loan Portfolio Composition (March 31, 2025) | Loan Type | Amount (in thousands) | | :--------------------------------- | :-------------------- | | Construction and land development | $269,148 | | Farm real estate loans | $373,413 | | 1-4 Family residential properties | $488,139 | | Multifamily residential properties | $356,858 | | Commercial real estate | $2,397,985 | | Agricultural operating loans | $296,811 | | Commercial and industrial loans | $1,303,712 | | Consumer loans | $47,220 | | All other loans | $165,572 | | **Total loans** | **$5,698,858** | Deposit Portfolio Composition (March 31, 2025) | Deposit Type | Amount (in thousands) | | :--------------------------------- | :-------------------- | | Non-interest bearing demand deposits | $1,394,590 | | Interest bearing demand deposits | $1,814,427 | | Savings deposits | $643,289 | | Money Market | $1,215,420 | | Time deposits | $1,062,654 | | **Total deposits** | **$6,130,380** | Key Performance Ratios (Q1 2025) | Ratio | Value | | :--------------------------------- | :-------------------- | | Net interest margin (tax equivalent) | 3.60% | | Return on average assets | 1.19% | | Adjusted return on average assets | 1.23% | | Return on average common equity | 10.35% | | Adjusted return on average common equity | 10.78% | | Efficiency ratio (tax equivalent) | 58.88% | Supplementary Financial Information [Net Interest Margin Calculation Methodology](index=9&type=section&id=Net%20Interest%20Margin%20Calculation%20Methodology) Effective Q1 2025, First Mid Bancshares, Inc. changed its net interest margin calculation methodology to align with peer banks, using annualized tax-equivalent net interest income divided by average interest earning assets - Beginning Q1 2025, the Company changed its net interest margin calculation methodology to be more consistent with peer banks and research analysts[33](index=33&type=chunk) - The new calculation is the annualized net interest income on a tax equivalent basis divided by average interest earning assets[33](index=33&type=chunk) [Net Interest Margin Details](index=9&type=section&id=Net%20Interest%20Margin%20Details) This section details Q1 2025 average balances, interest income/expense, and rates for interest-earning assets ($6.77 billion at 5.29%) and interest-bearing liabilities ($5.21 billion at 2.19%), resulting in $60.16 million net interest earnings and a 3.10% spread Q1 2025 Interest Earning Assets and Rates | Interest Earning Assets | QTD Average Balance (in thousands) | Interest (in thousands) | Average Rate | | :--------------------------------- | :------------------------------- | :---------------------- | :----------- | | Interest bearing deposits | $70,701 | $827 | 4.74% | | Investment Securities | $1,090,099 | $7,254 | 2.66% | | Loans (net of unearned income) | $5,605,821 | $80,194 | 5.80% | | **Total interest earning assets** | **$6,769,858** | **$88,312** | **5.29%** | Q1 2025 Interest Bearing Liabilities and Rates | Interest Bearing Liabilities | QTD Average Balance (in thousands) | Interest (in thousands) | Average Rate | | :--------------------------------- | :------------------------------- | :---------------------- | :----------- | | Demand deposits | $3,039,621 | $14,900 | 1.99% | | Savings deposits | $640,687 | $164 | 0.10% | | Time deposits | $1,022,200 | $8,658 | 3.44% | | Total interest bearing deposits | $4,702,508 | $23,722 | 2.05% | | Total borrowings | $504,384 | $4,428 | 3.56% | | **Total interest bearing liabilities** | **$5,206,892** | **$28,150** | **2.19%** | - Net Interest Earnings for Q1 2025 were **$60,162 thousand**, with a spread of **3.10%**[35](index=35&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of various non-GAAP financial measures to comparable GAAP measures, including net interest income (tax equivalent), tangible book value per common share, adjusted earnings, and efficiency ratio Net Interest Margin (Tax Equivalent) Reconciliation | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :--------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Net interest income as reported | $59,409 | $58,950 | $57,543 | $56,765 | $55,470 | | Net interest income, (tax equivalent) | $60,162 | $59,717 | $58,627 | $57,361 | $56,086 | | Net interest margin (tax equivalent) | 3.60% | 3.41% | 3.35% | 3.36% | 3.25% | Tangible Book Value per Common Share Reconciliation | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :--------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Common stockholder's equity | $870,949 | $846,391 | $858,497 | $813,645 | $797,952 | | Goodwill and intangibles, net | $258,671 | $261,906 | $265,139 | $257,377 | $260,699 | | Tangible Book Value per common share | $25.53 | $24.46 | $24.82 | $23.28 | $22.49 | | Adjusted tangible book value per common share | $31.21 | $30.42 | $29.70 | $29.43 | $28.67 | Adjusted Earnings and Efficiency Ratio Reconciliation (Q1 2025) | Metric | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :--------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Net Income - GAAP | $22,171 | $19,168 | $19,482 | $19,745 | $20,503 | | Total non-recurring adjustments (non-GAAP) | $912 | $1,710 | $356 | $373 | $1,804 | | Adjusted earnings - non GAAP | $23,083 | $20,878 | $19,838 | $20,118 | $22,307 | | Adjusted diluted earnings per share (non-GAAP) | $0.96 | $0.87 | $0.83 | $0.84 | $0.93 | | Efficiency ratio (non-GAAP) | 58.88% | 58.76% | 61.33% | 59.61% | 59.09% |

Core Viewpoint - First Mid Bancshares, Inc. reported record high quarterly net income of $22.2 million for Q1 2025, reflecting a strategic focus on enhancing return on assets and expanding net interest margin [3][10]. Financial Performance - Net interest income increased by $0.5 million, or 0.8%, compared to Q4 2024, primarily due to a faster decline in interest expense than interest income [4]. - Year-over-year, net interest income rose by $3.9 million, or 7.1%, with interest expense decreasing by $4.1 million compared to Q1 2024 [5]. - The net interest margin was 3.60% for Q1 2025, up 19 basis points from the previous quarter, driven by higher earning asset yields and lower funding costs [6]. Loan Portfolio - Total loans reached $5.70 billion, an increase of $26.4 million, or 0.5%, from the prior quarter, with notable growth in construction, land development, and agriculture loans [8]. - Compared to Q1 2024, loan growth was $199.6 million, or 3.6%, with significant increases in construction and development loans [9]. Asset Quality - The allowance for credit losses (ACL) was $70.1 million, with an ACL to total loans ratio of 1.23% and a non-performing loans ratio of 0.47% [11]. - Non-performing loans decreased by $3.2 million to $26.6 million, while special mention loans increased by $16.2 million to $74.0 million [11]. Deposits - Total deposits increased by $73.3 million, or 1.2%, to $6.13 billion, driven by growth in noninterest-bearing and time deposits [12]. - The company retained a majority of customers with maturing CDs and attracted new customers through promotional offerings [12]. Noninterest Income and Expenses - Noninterest income for Q1 2025 was $24.9 million, down from $26.4 million in Q4 2024, primarily due to a prior quarter gain on property sale [13]. - Noninterest expenses totaled $54.5 million, a decrease from $56.3 million in the prior quarter, with reductions in salaries and benefits [15]. Capital Levels and Dividend - Capital levels remained strong, with total capital to risk-weighted assets at 15.59% and a tangible book value per share increase of 4.4% during the quarter [17][18]. - The Board of Directors declared a regular quarterly dividend of $0.24 per share, payable on May 30, 2025 [19].

Company Overview - First Mid Bancshares (FMBH) shares increased by 6.1% to $32.89 in the last trading session, following a period of 11.4% loss over the past four weeks, indicating a significant recovery in stock performance [1] - The bank holding company is expected to report quarterly earnings of $0.94 per share, reflecting a year-over-year increase of 1.1%, with revenues projected at $84.7 million, up 5.9% from the previous year [3] Market Influence - The recent rally in FMBH shares was driven by broader market strength, particularly after President Donald Trump's announcement of a 90-day suspension on tariffs for non-retaliating countries, which alleviated trade tensions and improved market sentiment [2] - The consensus EPS estimate for FMBH has remained unchanged over the last 30 days, suggesting that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - First Mid Bancshares operates within the Zacks Banks - Northeast industry, where another competitor, First Commonwealth Financial (FCF), saw a 4.7% increase in its stock price, closing at $14.82, despite a -7.9% return over the past month [4] - First Commonwealth Financial's consensus EPS estimate for the upcoming report is $0.32, which represents a decline of 13.5% compared to the previous year, and it currently holds a Zacks Rank of 4 (Sell) [5]

Core Insights - The focus of income investors is on generating consistent cash flow from liquid investments, primarily through dividends [1][2] Company Overview - First Mid Bancshares (FMBH) is a bank holding company based in Mattoon, operating in the Finance sector, with a year-to-date share price change of -12.3% [3] - The company currently pays a dividend of $0.24 per share, resulting in a dividend yield of 2.97%, which is higher than the industry yield of 2.74% and the S&P 500 yield of 1.65% [3] Dividend Analysis - The annualized dividend of FMBH is $0.96, reflecting a 2.1% increase from the previous year [4] - Over the past five years, FMBH has increased its dividend four times, averaging an annual increase of 4.04% [4] - The current payout ratio for FMBH is 28%, indicating that it pays out 28% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, FMBH anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 at $3.61 per share, representing a year-over-year growth rate of 3.74% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses rarely offer dividends [7] - FMBH is considered an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]

Core Viewpoint - First Mid Bancshares, Inc. plans to release its first quarter 2025 financial results on April 30, 2025, after market close, along with an investor presentation available on its website [1]. Company Overview - First Mid Bancshares, Inc. is a $7.5 billion community-focused organization providing a full suite of financial services, including banking, wealth management, brokerage, agricultural services, and insurance [2]. - The company operates through a network of locations across Illinois, Missouri, Texas, and Wisconsin, with a loan production office in the greater Indianapolis area [2]. - First Mid has a history of 160 years in delivering solutions and services to customers and communities [2]. Investor Relations - Investor contact information includes Austin Frank, SVP of Shareholder Relations, and Matt Smith, Chief Financial Officer, with their respective phone numbers and email addresses provided for inquiries [3].

Company Overview - First Mid Bancshares (FMBH) is a bank holding company based in Mattoon, operating in the Finance sector with a year-to-date share price change of -3.99% [3] - The company currently pays a dividend of $0.24 per share, resulting in a dividend yield of 2.72%, which is lower than the Banks - Northeast industry's yield of 2.89% but higher than the S&P 500's yield of 1.57% [3] Dividend Performance - The annualized dividend of First Mid Bancshares is $0.96, reflecting a 2.1% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 4.04% [4] - The current payout ratio stands at 28%, indicating that the company distributes 28% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - First Mid Bancshares is projected to experience earnings growth in the current fiscal year, with the Zacks Consensus Estimate for 2025 at $3.61 per share, representing a year-over-year growth rate of 3.74% [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - Established firms with secure profits are typically viewed as the best dividend options, while high-growth businesses and tech start-ups rarely offer dividends [7] - First Mid Bancshares is recognized as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]