Highlights
Net income of $26.3 million, or $1.06 diluted EPS
Adjusted quarterly net income* of $28.4 million, or $1.14 diluted EPS
Closed on the acquisition of Two Rivers Financial Group, Inc. ("Two Rivers") and its wholly owned subsidiary Two Rivers Bank & Trust ("Two Rivers Bank"), adding $871.4 million in loans, net of the interest rate fair value marks and $1.04 billion in deposits, net of the time deposit marks, at closing
Total loans of $6.94 billion, quarterly increase of $932.9 million
Total deposits of $7.55 billion, quarterly increase of $1.15 billion
Tangible book value per common share* increased 2.1% during the quarter to $30.04
Net interest margin, tax equivalent* expanded to 3.78%, quarterly increase of 5 basis points
Repurchased 12,686 shares and the Board of Directors declared regular quarterly dividend of $0.25 per share
"We are pleased to start the year with such strong financial results, highlighted by record quarterly earnings per share and net income. We continue to build on the momentum of 2025 and are excited to welcome the new customers and talented employees following our acquisition of Two Rivers. The integration efforts for the merger of the banks are progressing as expected, and we remain confident that the strategic combination will enhance shareholder value as we continue to diversify our footprint into Iowa," said Joseph Dively, Chairman and CEO.
"The quarter reflected solid organic growth in both loans and deposits in what has historically been a seasonally soft period. The team remains diligent when pricing both sides of the balance sheet and, with the continued benefit from the repricing of our loan and investment portfolios, delivered an increase to net interest margin despite the anticipated dilution from Two Rivers. In addition, we were able to take advantage of our strong capital position and market volatility during the quarter by repurchasing $0.5 million of shares. We remain committed to deploying capital where it generates the highest long-term return for our shareholders," said Matthew Smith, President.
Two Rivers UpdateThe Company closed on its acquisition of Two Rivers on February 28th, 2026 and has filed its application to merge Two Rivers Bank with and into First Mid Bank & Trust. Pending regulatory approval, the merger is scheduled for completion late in the second quarter.
With the closing of the acquisition, the Company added approximately $1.04 billion in deposits, net of time deposit marks and $871.4 million in loans, net of the interest rate fair value marks. The purchase accounting fair value marks included a total discount to loans of $35.6 million, of which $10.8 million was recognized for the "Day One" allowance for credit losses. The valuation marks included a discount to long-term debt of $0.8 million and time deposits of $0.1 million. The core deposit intangible fair value mark was $21.2 million. A customer list intangible was recognized in relation to Two Rivers Bank's trust business totaling approximately $5.0 million.
Immediately following the acquisition, the Company sold all of Two Rivers Bank's investment portfolio for proceeds totaling $168.2 million. A total of $105.0 million of these funds were reinvested during March at higher rates, with the remaining balance retained in cash.
Net Interest Income Net interest income for the first quarter of 2026 was $70.8 million, an increase of $4.3 million compared to the fourth quarter of 2025. The increase was driven by loan growth and repricing benefits combined with disciplined management of funding costs. Two Rivers contributed $3.1 million of net interest income for March. Accretion income for the first quarter was $3.4 million, an increase of $0.8 million compared to the prior quarter, primarily due to higher accelerated accretion from acquired loans including the addition of Two Rivers.
In comparison to the first quarter of 2025, net interest income increased $11.4 million, or 19.1%. Interest income was higher by $13.1 million, inclusive of an increase in accretion income of $0.5 million. Interest expense was higher by $1.7 million compared to the first quarter of last year primarily from higher overall deposit balances and an increase in expenses on other borrowings including those acquired from Two Rivers.
Net Interest MarginNet interest margin, tax equivalent*, was 3.78% for the first quarter of 2026 representing an increase of 5 basis points over the prior quarter. The yield on earning assets improved by 1 basis point during the first quarter while the average cost of funds saw a decline of 4 basis points.
Loan Portfolio Total loans ended the quarter at $6.94 billion, representing an increase of $932.9 million. Excluding the Two Rivers acquired loans, loan balances increased $65.3 million, or 1.1% for the quarter. The increase for the quarter excluding Two Rivers was primarily in commercial real estate and agricultural operating loans. The remainder of the loan segment increases were primarily driven by the addition of the Two Rivers portfolio.
Asset Quality Asset quality was solid for the quarter as the allowance for credit losses ("ACL") ended the period at $86.8 million and the ACL to total loans ratio was 1.25%, which was in line with the fourth quarter of 2025. Two Rivers was assigned a "Day One" ACL of $10.8 million. In addition to the overall ACL, an unearned discount of $44.9 million remains at quarter end. Provision expense was recorded in the amount of $2.6 million during the quarter with growth in the loan portfolio and net charge-offs of $1.5 million.
The Company continued to see credit risk rating normalization during the quarter from historical lows, primarily in the agricultural segment. While cashflows in this segment continue to be pressured, our borrowers' balance sheets overall remain strong with equity from real estate and equipment. Given the balance sheet strength and the active management of the portfolio, the Company does not currently expect significant losses from the agricultural credit downgrades. At the end of the first quarter, non-performing loans totaled $44.1 million, an increase of $12.1 million during the quarter. The Two Rivers portfolio accounted for $11.0 million of this increase. The ratio of non-performing loans to total loans was 0.63%, which was an increase from the prior quarter primarily from the addition of Two Rivers. The ACL to non-performing loans ratio was 197%, a decrease from the prior quarter primarily from the additional non-performing loans added from Two Rivers. The ratio of non-performing assets to total assets increased from 0.44% in the prior quarter to 0.53%. Special mention loans increased by $59.1 million to $179.6 million. The addition of Two Rivers added $13.2 million of special mention loans. The additional increase of $45.9 million was primarily driven by agricultural credit downgrades. Substandard loans increased $29.2 million to $109.1 million. The addition of Two Rivers added $16.6 million of substandard loans. The additional increase of $12.6 million was primarily from five different relationships, three of which are agricultural credits totaling $9.4 million.
DepositsTotal deposits ended the quarter at $7.55 billion, which represented an increase of $1.15 billion from the prior quarter. Excluding the Two Rivers acquired deposits, deposits grew $100.4 million during the quarter with interest bearing demand deposits driving the increase with a seasonal inflow at quarter-end. The average cost of funds for the quarter ended at 1.67%, a decrease of 4 basis points from the end of the previous quarter.
Non-Interest IncomeNon-interest income for the first quarter of 2026 was $26.4 million compared to $21.7 million in the prior quarter and $24.9 million in the first quarter of 2025. Two Rivers contributed $0.9 million in non-interest income for the month of March. The Company recorded a write-down of other investments during the quarter totaling $0.5 million.
Wealth management revenues for the quarter were $6.4 million, which was a decrease of $0.2 million from the prior quarter and an increase of $0.6 million from the first quarter of 2025. Two Rivers wealth management contributed $0.4 million of wealth management revenues for the month of March (included in the $0.9 million referenced above). Overall Ag Services revenue was $2.5 million in the period compared to $2.9 million in the prior quarter and $2.6 million in the first quarter of 2025. Insurance commissions for the quarter were a record high of $10.8 million, which was an increase of $3.4 million compared to the fourth quarter of 2025 and $0.9 million compared to the first quarter of 2025. The first quarter includes contingent revenues on the insurance book of business and the year-over-year increase was driven by continued organic growth and performance of acquired books of business.
Non-Interest ExpensesNon-interest expense for the first quarter of 2026 totaled $60.7 million compared to $55.9 million in the fourth quarter of 2025 and $54.5 million in the first quarter of 2025. During the quarter, acquisition-related expenses related to Two Rivers totaled $2.1 million. Two Rivers added $2.8 million in total non-interest expenses post-acquisition. Amortization of intangible assets increased $0.3 million from the fourth quarter of 2025 primarily from the addition of the Two Rivers intangible assets.
The Company's efficiency ratio*, as adjusted in the non-GAAP reconciliation table herein, for the first quarter of 2026 was 55.86% compared to 57.55% in the prior quarter and 58.88% for the same period last year.
Capital Levels and DividendThe Company's capital levels remained strong and above the "well capitalized" levels. Capital levels ended the period as follows:
Total capital to risk-weighted assets
15.48%
Tier 1 capital to risk-weighted assets
13.57%
Common equity tier 1 capital to risk-weighted assets
13.10%
Leverage ratio
10.62%
Tangible book value per common share* increased $0.62, or 2.1% during the first quarter of 2026. The increase was driven by earnings. An increase of $7.4 million related to the unrealized loss position in the Company's investment portfolio provided headwinds to this increase in tangible book value per common share.
The Company's Board of Directors approved its regular quarterly dividend of $0.25 payable on June 1st, 2026 to the shareholders of record as of May 15th, 2026.
About First Mid: First Mid Bancshares, Inc. ("First Mid") is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., First Mid Wealth Management Co., and Two Rivers Bank & Trust. First Mid is a $9.3 billion community-focused organization that provides a full-suite of financial services including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, Texas, Wisconsin, and Iowa and a loan production office in the greater Indianapolis area. Together, our First Mid team takes great pride in providing solutions and services to the customers and communities and has done so over the last 160 years. More information about the Company is available on our website at www.firstmid.com.
*Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles ("GAAP"), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company's financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include "Adjusted Quarterly Net Income," "Adjusted Diluted EPS," "Efficiency Ratio," "Net Interest Margin, tax equivalent," "Tangible Book Value per Common Share," "Adjusted Tangible Book Value per Common Share," "Adjusted Return on Assets," and "Adjusted Return on Average Common Equity". Refer to non-GAAP reconciliation tables herein for reconciliation to comparable GAAP measures. While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.
Forward Looking StatementsThis document may contain certain forward-looking statements about First Mid, such as discussions of First Mid's pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid are identified by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, the possibility that any of the anticipated benefits of the proposed transactions between First Mid and Two Rivers will not be realized within the expected time period; the risk that integration of the operations of Two Rivers with First Mid will be materially delayed or will be more costly or difficult than expected; the effect of the announcement of the proposed transactions on customer relationships and operating results; the possibility that the proposed transactions may be more expensive to complete than anticipated, including as a result of unexpected factors or events; changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative and/or regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid's loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; accounting principles, policies and guidelines; or any of the other foregoing risks. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid's financial results, are included in First Mid's filings with the SEC, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, First Mid does not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.
Investor Contact: Austin FrankSVP, Director of Investor Relations217-258-5522 [email protected]
Jordan ReadChief Financial and Risk Officer217-258-3528[email protected]
– Tables Follow,
FIRST MID BANCSHARES, INC.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
As of
March 31,
December 31,
March 31,
2026
2025
2025
Assets
Cash and cash equivalents
$
477,032
$
254,920
$
201,470
Investment securities
1,186,119
1,085,499
1,049,003
Loans (including loans held for sale)
6,944,276
6,011,374
5,698,858
Less allowance for credit losses
(86,814
)
(74,875
)
(70,051
)
Net loans
6,857,462
5,936,499
5,628,807
Premises and equipment, net
101,935
90,782
97,446
Goodwill and intangibles, net
277,347
253,016
258,671
Bank Owned Life Insurance
186,042
174,915
171,127
Other assets
202,680
171,027
166,164
Total assets
$
9,288,617
$
7,966,658
$
7,572,688
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing
$
1,489,747
$
1,392,534
$
1,394,590
Interest bearing
6,057,892
5,002,739
4,735,790
Total deposits
7,547,639
6,395,273
6,130,380
Repurchase agreements with customers
208,811
196,716
219,772
Other borrowings
295,106
270,000
195,000
Junior subordinated debentures
34,022
24,454
24,335
Subordinated debt
60,072
60,008
79,535
Other liabilities
66,341
61,515
52,717
Total liabilities
8,211,991
7,007,966
6,701,739
Total stockholders' equity
1,076,626
958,692
870,949
Total liabilities and stockholders' equity
$
9,288,617
$
7,966,658
$
7,572,688
FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data and share amounts, unaudited)
Three Months Ended
March 31,
2026
2025
Interest income:
Interest and fees on loans
$
90,986
$
79,918
Interest on investment securities
7,885
6,777
Interest on federal funds sold & other deposits
1,749
864
Total interest income
100,620
87,559
Interest expense:
Interest on deposits
24,774
23,722
Interest on securities sold under agreements to repurchase
1,025
1,180
Interest on other borrowings
2,398
1,831
Interest on jr. subordinated debentures
468
468
Interest on subordinated debt
1,170
949
Total interest expense
29,835
28,150
Net interest income
70,785
59,409
Provision for credit losses
2,598
1,652
Net interest income after provision for credit losses
68,187
57,757
Non-interest income:
Wealth management revenues
6,375
5,800
Insurance commissions
10,807
9,925
Service charges
3,080
2,901
Net securities gains/(losses)
20
(181
)
Mortgage banking revenues
721
711
ATM/debit card revenue
4,135
3,646
Other
1,303
2,062
Total non-interest income
26,441
24,864
Non-interest expense:
Salaries and employee benefits
35,016
31,748
Net occupancy and equipment expense
9,826
8,479
Net other real estate owned expense
212
101
FDIC insurance
940
849
Amortization of intangible assets
3,301
3,231
Stationery and supplies
302
431
Legal and professional expense
2,700
3,076
ATM/debit card expense
1,807
1,831
Marketing and donations
824
852
Other
5,797
3,874
Total non-interest expense
60,725
54,472
Income before income taxes
33,903
28,149
Income taxes
7,576
5,978
Net income
$
26,327
$
22,171
Per Share Information
Basic earnings per common share
$
1.06
$
0.93
Diluted earnings per common share
1.06
0.93
Weighted average shares outstanding
24,777,247
23,858,817
Diluted weighted average shares outstanding
24,893,802
23,959,228
FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data and share amounts, unaudited)
For the Quarter Ended
March 31,
December 31,
September 30,
June 30,
March 31,
2026
2025
2025
2025
2025
Interest income:
Interest and fees on loans
$
90,986
$
86,972
$
87,020
$
84,784
$
79,918
Interest on investment securities
7,885
7,552
7,659
6,895
6,777
Interest on federal funds sold & other deposits
1,749
1,371
1,456
1,722
864
Total interest income
100,620
95,895
96,135
93,401
87,559
Interest expense:
Interest on deposits
24,774
24,462
25,179
24,964
23,722
Interest on securities sold under agreements to repurchase
1,025
987
1,105
1,218
1,180
Interest on other borrowings
2,398
2,341
2,186
2,043
1,831
Interest on jr. subordinated debentures
468
433
452
464
468
Interest on subordinated debt
1,170
1,142
850
849
949
Total interest expense
29,835
29,365
29,772
29,538
28,150
Net interest income
70,785
66,530
66,363
63,863
59,409
Provision for credit losses
2,598
2,349
3,353
2,567
1,652
Net interest income after provision for credit losses
68,187
64,181
63,010
61,296
57,757
Non-interest income:
Wealth management revenues
6,375
6,591
5,145
5,394
