First Mid Bancshares (FMBH) Q2 2025 earnings summary

Executive summary

• Net income for the six months ended June 30, 2025 was $45.6 million, up from $40.2 million in 2024; diluted EPS was $1.90 versus $1.68 year-over-year.

• Achieved record quarterly net income of $23.4 million ($0.98 diluted EPS), with adjusted net income of $23.7 million ($0.99 diluted EPS).

• Net interest margin rose to 3.66% for the first half of 2025 and reached 3.72% (tax equivalent) in Q2 2025, marking the fifth consecutive quarter of growth.

• Total assets reached $7.7 billion at June 30, 2025; total loans grew to $5.77 billion and deposits to $6.19 billion.

• Tangible book value per share increased 4.3% during the quarter; quarterly dividend raised by $0.01 to $0.25 per share.

Financial highlights

• Net interest income before provision for credit losses was $123.3 million for the first half of 2025; Q2 2025 net interest income was $63.9 million, up 7.5% sequentially.

• Noninterest income increased 3.3% year-over-year, driven by higher insurance commissions and wealth management revenues; Q2 2025 noninterest income was $23.6 million.

• Noninterest expense rose 4.2% year-over-year, mainly from higher salaries, incentive compensation, and technology costs.

• Adjusted efficiency ratio improved to 58.09% in Q2 2025 from 58.88% in Q1 2025.

• Provision for credit losses was $4.2 million for the first half of 2025.

Outlook and guidance

• Management expects continued focus on credit quality, liquidity, and capital adequacy, with no material changes to risk factors since the last annual report.

• The company remains asset sensitive, indicating that future decreases in interest rates could negatively impact net interest income.

• Management remains focused on disciplined credit culture and continued investment in technology platforms to support future growth.