FIRST MID BANCSHARES, INC.
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
FMBH$50.61-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0000950170-25-105507
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSForward-Looking StatementsOverviewCritical Accounting Policies and Use of Significant EstimatesResults of Consolidated OperationsAnalysis of Consolidated Balance SheetsInterest Rate SensitivityCapital ResourcesStock PlansLiquidityOff-Balance Sheet ArrangementsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001193125-25-272249
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSForward-Looking StatementsOverviewCritical Accounting Policies and Use of Significant EstimatesResults of Consolidated OperationsAnalysis of Consolidated Balance SheetsInterest Rate SensitivityCapital ResourcesStock PlansLiquidityOff-Balance Sheet ArrangementsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 130 previous paragraphs and 128 current paragraphs.
57 unchanged; 67 reworded; 4 added; 5 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 23 previous and 23 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
Wealth management revenues decreased due to agricultural services fee income decreasing as a result of lower commodity prices.
Current report
Security losses, net increased due to strategic sales of securities during the period that allowed the Company to invest the resulting cash at a higher yield.
Current report
Other income increased for the three month period due to gains recognized on the sale of real estate assets as part of the Company's branch optimization project.
Current report
On July 4, 2025, The One Big Beautiful Bill Act, was signed into law. The Company has completed its evaluation of the provisions of the bill and does not expect it to have a material impact on its financial statements.
Removed paragraphs (5)
Previous report
Wealth management revenues increased for the six month period due to increased brokerage fees and agricultural services fee incomes.
Previous report
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.
Previous report
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.
Previous report
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.
Previous report
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.
Reworded paragraphs (67)
Previous wording
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.
Current wording
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 nine months ended September 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.
Previous wording
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.
Current wording
Net income was $68.1 million and $59.7 million for the nine months ended September 30, 2025 and 2024, respectively. Diluted net income per common share was $2.84 and $2.49 for the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
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:
Current wording
The following table shows the Company’s annualized performance ratios for nine months ended September 30, 2025 and 2024, compared to the performance ratios for the year ended December 31, 2024:
Previous wording
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.
Current wording
Total assets were $7.8 billion at September 30, 2025, compared to $7.5 billion as of December 31, 2024. From December 31, 2024 to September 30, 2025, cash and cash equivalents increased $155.9 million, net loan balances increased $149.9 million and investment securities increased $27.0 million. Net loan balances were $5.7 billion at September 30, 2025 compared to $5.6 billion at December 31, 2024.
Previous wording
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.
Current wording
Net interest margin, on a tax equivalent basis, defined as net interest income divided by average interest-earning assets, was 3.71% for the nine months ended September 30, 2025, up from 3.32% 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 $189.6 million compared to net interest income of $169.8 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.
Previous wording
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.
Current wording
Total non-interest income of $71.4 million increased $1.4 million or 2.1% from $69.9 million for the same period last year. The increase in non-interest income resulted primarily from an increase in insurance commissions, partially offset by an increase in losses on the sale of securities.
Previous wording
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.
Current wording
Total non-interest expense of $166.4 million increased $7.7 million or 4.8% from $158.7 million for the same period last year. The increase was primarily due to the routine annual increases in salaries and employee benefits and an increase in expense accrued for incentive compensation based on overperformance compared to the 2025 budget, partially offset by the decrease in integration expenses compared to the first three quarters of 2024 related to Blackhawk Bank.
Previous wording
$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.
Current wording
Credit quality is an area of importance to the Company. Total nonperforming loans were $22.2 million at September 30, 2025, compared to $18.2 million at September 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 $1.5 million at September 30, 2025 compared to $1.8 million at September 30, 2024 and $2.2 million at December 31, 2024.
Previous wording
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.
Current wording
The Company’s provision for credit losses for the nine months ended September 30, 2025 and 2024 was $7.6 million and $2.0 million, respectively. Total loans past due 30 days or more were 0.50% of loans at September 30, 2025 compared to 0.39% at September 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 September 30, 2025 and 68.4% as of December 31, 2024.
Previous wording
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.
Current wording
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 September 30, 2025 and 2024 and December 31, 2024 was 13.53%, 12.70% and 12.82%, respectively. The Company’s total capital to risk weighted assets ratio calculated under the regulatory risk-based capital requirements at September 30, 2025 and 2024, and December 31, 2024 was 15.99%, 15.24% and 15.37%, respectively.
Previous wording
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.
Current wording
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 September 30, 2025 and 2024, were $1.5 billion and $1.4 billion, respectively.
Previous wording
The Company expensed $1.7 million and $1.8 million for the assessment during the first six months of 2025 and 2024, respectively.
Current wording
The Company expensed $2.6 million and $2.6 million for the assessment during the first nine months of 2025 and 2024, respectively.
Previous wording
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.
Current wording
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 $2.3 million and $2.3 million for 2025 and 2024, respectively were 3.66% and 3.26% at September 30, 2025 and 2024, respectively.
Previous wording
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):
Current wording
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 nine months ended September 30, 2025 and 2024 in the following table (dollars in thousands):
Previous wording
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):
Current wording
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 nine months ended September 30, 2025, compared to the same period in 2024 (in thousands):
Previous wording
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.
Current wording
Tax equivalent net interest income increased $19.9 million, or 11.5%, to $191.9 million for the nine months ended September 30, 2025, from $172.1 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.
Previous wording
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.
Current wording
For the nine months ended September 30, 2025, average earning assets increased $68.4 million, or 1.0%, and average interest-bearing liabilities increased $4.7 million or 0.1% compared with average balances for the same period in 2024.
Previous wording
Average interest-bearing deposits with other financial institutions decreased $41.6 million or 27.6%.
Current wording
Average interest-bearing deposits with other financial institutions decreased $40.0 million or 26.0%.
Previous wording
Average federal funds sold decreased $484,000 or 86.6%.
Current wording
Average federal funds sold decreased $305,000 or 80.3%.
Previous wording
Average certificates of deposits investments increased $192,000 or 7.3%.
Current wording
Average certificates of deposits investments decreased $345,000 or 11.9%.
Previous wording
Average loans increased by $148.2 million or 2.7%.
Current wording
Average loans increased by $170.0 million or 3.1%.
Previous wording
Average securities decreased by $83.3 million or 7.1%.
Current wording
Average securities decreased by $61.0 million or 5.2%.
Previous wording
Average interest-bearing customer deposits increased by $39.9 million or 0.8%.
Current wording
Average interest-bearing customer deposits increased by $86.6 million or 1.8%.
Previous wording
Average securities sold under agreements to repurchase decreased by $34.6 million or 14.7%.
Current wording
Average securities sold under agreements to repurchase decreased by $26.6 million or 11.9%.
Previous wording
Average borrowings and other debt decreased by $71.6 million or 18.6%.
Current wording
Average borrowings and other debt decreased by $55.3 million or 14.7%.
Previous wording
Net interest margin increased to 3.66% for the first six months of 2025 from 3.30% for the first six months of 2024.
Current wording
Net interest margin increased to 3.71% for the first nine months of 2025 from 3.32% for the first nine months of 2024.
Previous wording
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.
Current wording
The provision for credit losses for the nine months ended September 30, 2025 and 2024 was $7.6 million and $2.0 million, respectively. Net charge offs were $4.8 million for the nine months ended September 30, 2025, compared to net charge offs of $1.9 million for September 30, 2024. Nonperforming loans were $22.2 million and $18.2 million as of September 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.
Previous wording
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):
Current wording
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 nine months ended September 30, 2025 and 2024 (in thousands):
Previous wording
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:
Current wording
Following are explanations of the significant changes in these other income categories for the three and nine months ended September 30, 2025 compared to the same period in 2024:
Previous wording
Insurance commissions increased primarily due to the acquisition of MRIG during the third quarter of 2024.
Current wording
Insurance commissions increased primarily due to the acquisition of MRIG during the third quarter of 2024 and the acquisition of a portion of AAIG's customer list in July 2025.
Previous wording
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):
Current wording
The following table sets forth the major components of other expense for the three and nine months ended September 30, 2025 and 2024 (dollars in thousands):
Previous wording
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:
Current wording
Following are explanations for the significant changes in these other expense categories for the three and nine months ended September 30, 2025 compared to the same period in 2024:
Previous wording
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.
Current wording
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. There were 1,178 and 1,207 full-time equivalent employees at September 30, 2025 and 2024, respectively.
Previous wording
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.
Current wording
The increase in occupancy and equipment and legal and professional fees expenses are primarily due to nonrecurring technology project expenses in the first three quarters of 2025.
Previous wording
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.
Current wording
The decrease in all other operating expenses during the first nine months of 2025 was primarily due to integration related expenses for Blackhawk Bank occurring during the first quarter of 2024.
Previous wording
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.
Current wording
Total income tax expense amounted to $19.0 million (21.8% effective tax rate) for the nine months ended September 30, 2025, compared to $19.3 million (24.4% effective tax rate) for the same period in 2024. The decrease in effective rate is primarily related to a true-up of the Company's tax accrual and the state of Illinois law change that became effective during the second quarter of 2024 that required a one-time revalue of deferred taxes and resulted in a decrease Illinois apportionment percentage for all of 2025.
Previous wording
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):
Current wording
At September 30, 2025, the Company’s investment portfolio decreased by $16.5 million from December 31, 2024 primarily due to the sale of fifteen securities, paydowns, calls and maturities of various securities mostly offset by the purchase of twenty-three 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 September 30, 2025 for investment securities (in thousands):
Previous wording
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.
Current wording
Loan balances increased $151.6 million, or 2.7%. The increase was primarily due to construction and land development loans increasing and increased seasonal demand for agricultural operating loans. The balance of real estate loans held for sale, included in the balances shown above, amounted to $5.5 million and $6.6 million as of September 30, 2025 and December 31, 2024, respectively.
Previous wording
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.
Current wording
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 for quick and material economic shifts.
Previous wording
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):
Current wording
First Mid Bank does not have a concentration, as defined by the regulatory agencies and in Note 4, in construction and land development loans or commercial real estate loans as a percentage of the Company's total capital. At September 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):
Showing the first 40 of 67 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Credit quality is an area of importance to the Company. Total nonperforming loans were $21.9 million at June 30, 2025, compared to