First Mid Bancshares, Inc. Announces Third Quarter 2025 Results

Core Insights - First Mid Bancshares, Inc. reported solid financial performance for Q3 2025, with growth in net interest margin, loans, and deposits, alongside strategic operational changes [3][10]. Financial Performance - Net interest income for Q3 2025 was $66.4 million, up $2.5 million or 3.9% from Q2 2025, and increased by $8.8 million or 15.3% compared to Q3 2024 [5][6]. - The net interest margin was 3.80%, an increase of 8 basis points from the previous quarter, driven by higher yields on earning assets [7]. - Quarterly net income was $22.5 million, or $0.94 diluted EPS, with adjusted net income of $23.3 million, or $0.97 diluted EPS [10]. Loan and Deposit Growth - Total loans reached $5.82 billion, a quarterly increase of $57.0 million or 1.0%, and a year-over-year increase of $209.4 million or 3.7% [8][9]. - Total deposits were $6.29 billion, up $99.3 million or 1.6% from the prior quarter [12]. Asset Quality - The allowance for credit losses (ACL) was $72.9 million, with an ACL to total loans ratio of 1.25% [11]. - The ratio of non-performing loans to total loans was stable at 0.38%, with non-performing assets to total assets decreasing to 0.30% [11]. Non-Interest Income and Expenses - Non-interest income for Q3 2025 was $22.9 million, a slight decrease from the prior quarter, primarily due to losses on the sale of securities [13][14]. - Non-interest expenses totaled $57.1 million, an increase from $54.8 million in the previous quarter, driven by higher salaries and one-time costs related to branch closures [16][17]. Strategic Initiatives - The company completed the conversion of its core operating system and closed 8 full-service branches to enhance efficiency and align with digital banking trends [3][10]. - A pending acquisition of Two Rivers Financial Group, Inc. was announced, aimed at diversifying the company's footprint into Iowa [4][10]. Capital and Dividend - Tangible book value per share increased by 6.0% to $28.21 during the quarter [19]. - The Board of Directors declared a regular dividend of $0.25 per share, payable on December 1, 2025 [19].