First Mid Bancshares, Inc. Announces Second Quarter 2025 Results

Core Viewpoint - First Mid Bancshares, Inc. reported strong financial results for the second quarter of 2025, achieving record high quarterly net income and growth in net interest income, loans, and deposits, while maintaining a disciplined credit culture and investing in technology for future growth [3][10]. Financial Performance - Net interest income for Q2 2025 was $63.9 million, up $4.5 million or 7.5% from Q1 2025, driven by higher yields on earning assets [4][10]. - Compared to Q2 2024, net interest income increased by $7.1 million or 12.5%, with interest income rising by $4.7 million [5]. - The net interest margin was 3.72% for Q2 2025, an increase of 12 basis points from the previous quarter [6][10]. Loan Portfolio - Total loans reached $5.77 billion, an increase of $68.1 million or 1.2% from the prior quarter, with significant growth in construction, land development, and commercial loans [7][10]. - Year-over-year, loan balances increased by $206.4 million or 3.7%, with notable increases in construction and agricultural operating lines [8]. Asset Quality - The allowance for credit losses (ACL) was $71.2 million, with an ACL to total loans ratio of 1.23% and a non-performing loans ratio of 0.38% [9][10]. - Non-performing loans decreased by $4.7 million to $21.9 million, while special mention loans and substandard loans increased [11]. Deposits - Total deposits were $6.19 billion, up $59.8 million or 0.98% from the previous quarter, primarily driven by interest-bearing demand deposits and money market accounts [12][10]. Noninterest Income and Expenses - Noninterest income for Q2 2025 was $23.6 million, a decline from Q1 2025 due to seasonality in wealth management and insurance [13][10]. - Noninterest expenses totaled $54.8 million, slightly up from the previous quarter, primarily due to increased salaries and employee benefits [15][16]. Capital Levels and Dividend - The company's capital levels remained strong, with total capital to risk-weighted assets at 15.76% and a tangible book value per share increase of 4.3% during the quarter [17][10]. - The Board of Directors declared a quarterly dividend increase to $0.25 per share, payable on August 29, 2025 [18][10].