First Mid Bancshares, Inc. Announces Acquisition of Two Rivers Financial Group, Inc.

Core Viewpoint - First Mid Bancshares, Inc. is set to merge with Two Rivers Financial Group, Inc. in a 100% stock transaction, enhancing First Mid's market presence in Iowa [1][3]. Company Overview - Two Rivers Financial Group, Inc. operates 14 branches in central and southeastern Iowa, with total assets of approximately $1.1 billion, $901 million in loans, and $988 million in deposits as of September 30, 2025 [2]. - First Mid Bancshares, Inc. is a community-focused organization with $7.8 billion in assets, providing a range of financial services across multiple states [11]. Transaction Details - Under the merger agreement, Two Rivers shareholders will receive 1.225 shares of First Mid common stock for each share of Two Rivers common stock, valuing the transaction at approximately $94.1 million based on First Mid's share price of $36.80 [3]. - The transaction is expected to be 12.3% accretive to First Mid's earnings per share by 2027, with tangible book value dilution expected to be recovered in 2.1 years [4]. Strategic Rationale - The merger is aimed at expanding First Mid's geographic footprint and enhancing its commitment to community banking [5][6]. - First Mid anticipates achieving cost savings of approximately 27% of Two Rivers' noninterest expenses, with potential revenue synergies not yet included in the estimates [4]. Leadership and Governance - The transaction has received unanimous approval from both companies' boards and is expected to close in the first quarter of 2026, pending regulatory and shareholder approvals [8]. - Shane Zimmerman, CEO of Two Rivers Bank & Trust, will join First Mid as an Executive Vice President and Divisional President post-merger [7]. Advisory and Legal Support - D.A. Davidson & Co. served as the exclusive financial advisor to Two Rivers, while Keefe, Bruyette & Woods, Inc. acted as the financial advisor for First Mid [9].