FIRST MID BANCSHARES, INC.

This overview of management’s discussion and analysis highlights selected information in this document and may not contain all the information that is important to you. For a more complete understanding of trends, events, commitments, uncertainties, liquidity, capital resources, and critical accounting estimates you should carefully read this entire document. These have an impact on the Company’s consolidated financial condition and results of consolidated operations.

Net income was $87.4 million and $68.1 million for the nine months ended September 30, 2026 and 2025, respectively, and diluted net income per common share was $3.36 and $2.84 for the nine months ended September 30, 2026 and 2025, respectively.

Total assets were $9.4 billion at September 30, 2026, compared to $8.0 billion as of December 31, 2025. Net loan balances were $6.8 billion at September 30, 2026 compared to $5.9 billion at December 31, 2025.

Total deposit balances increased to $7.6 billion at September 30, 2026 from $6.4 billion at December 31, 2025. The increase was primarily due to the acquisition of Two Rivers Bank.

Net interest margin (tax equivalent), defined as net interest income divided by average interest-earning assets, was 3.78% for the nine months ended September 30, 2026, up from 3.71% for the same period in 2025. This increase was primarily due to an increase in investment security and loan yields and decreased interest bearing deposit costs.

Net interest income before the provision for credit losses was $229.8 million compared to net interest income of $189.6 million for the same period in 2025. The increase in net interest income was primarily due to the addition of the Two Rivers Bank loan portfolio, as well as the increased net interest margin as mentioned above.

Total non-interest income of $82.5 million increased $11.1 million or 15.58% from $71.4 million for the same period last year. The increase in non-interest income resulted primarily from the addition of Two Rivers Bank, an increase in insurance commissions, and an increase in wealth management revenues.

Total non-interest expense of $196.3 million increased $29.9 million or 17.99% from $166.4 million for the same period last year. The increase was primarily due to increases in salaries, employee benefits, occupancy and equipment expenses, and integration expenses due to the acquisition of Two Rivers in the first quarter of 2026 and the subsequent merger of Two Rivers Bank into First Mid Bank in the second quarter of 2026.

Following is a summary of the factors that contributed to the changes in net income (in thousands):

Credit quality is an area of importance to the Company. Total nonperforming loans were $43.1 million at September 30, 2026, compared to $22.2 million at September 30, 2025 and $31.9 million at December 31, 2025. See the discussion under the heading “Loan Quality and Allowance for Credit Losses” for a detailed explanation of these balances. Repossessed asset balances totaled $5.0 million at September 30, 2026 compared to $1.5 million at September 30, 2025 and $2.9 million at December 31, 2025.

The Company’s provision for credit losses for the nine months ended September 30, 2026 and 2025 was $3.8 million and $7.6 million, respectively. The decrease in provision expense was a result of a decrease in net charge-offs and a decrease in organic loan growth in 2026 compared to the same period in 2025.

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 at September 30, 2026 and 2025 and December 31, 2025 was 14.39%, 13.53% and 13.55%, respectively. The Company’s total capital to risk weighted assets ratio at September 30, 2026 and 2025, and December 31, 2025 was 15.79%, 15.99% and 15.67%, respectively.

The Company’s liquidity position remains sufficient to fund operations and meet the requirements of borrowers, depositors, and creditors. The Company maintains various sources of liquidity to fund its cash needs. See “Liquidity” herein for a full listing of its sources and anticipated significant contractual obligations.

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, 2026 and 2025, were $1.6 billion and $1.5 billion, respectively. See Note 12 - “Commitments and Contingent Liabilities” herein for further information.