FIRST MID BANCSHARES, INC.

Liquidity represents the ability of the Company and its subsidiaries to meet all present and future financial obligations arising in the daily operations of the business. Financial obligations consist of the need for funds to meet extensions of credit, deposit withdrawals, and debt servicing. The Company’s liquidity management focuses on the ability to obtain funds economically through assets that may be converted into cash at minimal costs or through other sources. The Company’s other sources of cash include overnight federal fund lines, Federal Home Loan Bank advances, the ability to borrow at the Federal Reserve Bank of Chicago and Des Moines, and the Company’s operating line of credit with The Northern Trust Company. Details for these sources include:

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First Mid Bank and Two Rivers Bank have $170 million available in overnight federal fund lines, including $35 million from Bankers' Bank, $10 million from Bankers' Trust, $20 million from BMO Bank, N.A., $30 million from First Horizon Bank, N.A., $15 million from The Northern Trust Company, $20 million from U.S. Bank, N.A., and $40 million from Zions Bank. Availability of the funds is subject to First Mid Bank and Two Rivers Bank meeting minimum regulatory capital requirements for total capital to risk-weighted assets and Tier 1 capital to total average assets. As of March 31, 2026, First Mid Bank and Two Rivers Bank have met these regulatory requirements.

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First Mid Bank and Two Rivers Bank can borrow from the Federal Home Loan Bank as a source of liquidity. Availability of the funds is subject to the pledging of collateral to the Federal Home Loan Bank. Collateral that is pledged includes one-to-four family residential real estate loans, commercial real estate loans, multifamily loans, and farmland. At March 31, 2026, the excess collateral at the FHLB would support approximately $1.6 billion of additional advances for First Mid Bank and $262.8 million for Two Rivers Bank.

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First Mid Bank is a member of the Federal Reserve System and can borrow funds provided that sufficient collateral is pledged. Two Rivers Bank is not a member of the Federal Reserve System.

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First Mid Bank has received formal approval from the Federal Reserve Bank and can participate in the Borrower-in-Custody (BIC) program. As a result, the Bank can pledge loans as collateral at the Federal Reserve Bank's Discount Window while retaining custody of the pledged loans. The program enhanced our contingent liquidity position by approximately $380.6 million as of March 31, 2026. Two Rivers Bank does not participate in this program.

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In addition, as of March 31, 2026, the Company had a revolving credit agreement in the amount of $15 million with The Northern Trust Company with an outstanding balance of $0 and $15 million in available funds. This loan was renewed on April 4, 2025 for one year as a revolving credit agreement. The interest rate is floating at 2.25% over the federal funds rate. The loan is unsecured. The Company and its subsidiary banks were in compliance with the existing covenants at March 31, 2026 and 2025 and December 31, 2025.

Management continues to monitor its expected liquidity requirements carefully, focusing primarily on cash flow from:

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lending activities, including loan commitments, letters of credit and mortgage prepayment assumptions;

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deposit activities, including seasonal demand of private and public funds;

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investing activities, including prepayments of mortgage-backed securities and call provisions on U.S. Treasury and government agency securities; and

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operating activities, including scheduled debt repayments and dividends to stockholders.

The following table summarizes significant contractual obligations and other commitments at March 31, 2026 (in thousands):

For the three months ended March 31, 2026, net cash of $25.1 million was provided by operating activities, $79.5 million was provided by investing activities, and $117.5 million was provided by financing activities. In total, cash and cash equivalents increase by $222.1 million from year-end 2025.