First Mid Bancshares (FMBH) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 net income of $26.3 million and diluted EPS of $1.06, with adjusted net income at $28.4 million and adjusted EPS at $1.14, reflecting strong core performance and successful integration of acquisitions.

• Total assets reached $9.3 billion at March 31, 2026, up from $8.0 billion at year-end 2025, driven by organic growth and the Two Rivers acquisition.

• Net interest income rose to $70.8 million, reflecting higher earning asset yields and the Two Rivers acquisition.

• Non-interest income increased to $26.4 million, mainly from insurance commissions, wealth management, and the Two Rivers acquisition.

• Non-interest expense rose to $60.7 million, primarily due to higher salaries, benefits, and integration costs from the acquisition.

Financial highlights

• Net interest margin (tax equivalent) improved to 3.78%, up 5bps sequentially and 18bps year-over-year.

• Allowance for credit losses stood at $86.8 million, with net charge-offs of $1.5 million for the quarter and non-performing assets at 0.53% of total assets.

• Nonperforming loans rose to $44.1 million from $26.6 million year-over-year; repossessed assets increased to $5.5 million.

• Tangible book value per share increased 2.1% to $30.04 during the quarter and 13% year-over-year.

• Efficiency ratio improved to 55.86% in Q1 2026.

Outlook and guidance

• Management targets continued organic growth and strategic expansion, leveraging a strong capital position and disciplined credit culture.

• Investments in digital solutions and technology upgrades are expected to enhance customer experience and operational efficiency.

• Continued integration of Two Rivers Bank, with further branch consolidation planned for June 2026.

• No material changes to risk factors or market risk outlook since the prior year-end.

• No significant losses anticipated from agricultural credit downgrades due to strong borrower balance sheets.