First Mid Bancshares (FMBH) Q2 2026 earnings summary

Executive summary

• Achieved record quarterly adjusted net income of $33.4 million ($1.26 diluted EPS) and reported net income of $27.8 million ($1.04 diluted EPS), reflecting strong operational performance and successful integration of Two Rivers Bank & Trust.

• Non-interest income accounted for 26% of revenue over the last 12 months, highlighting revenue diversification.

• Tangible book value per share rose 3.7% to $31.15, and the quarterly dividend was increased by $0.01 to $0.26 per share.

• Repurchased 21,872 shares and paid off $27.5 million in subordinated debt, partially refinanced at a lower rate.

• Continued focus on organic growth, strategic M&A, and digital transformation to enhance customer experience and operational efficiency.

Financial highlights

• Net interest margin (NIM) improved to 3.79%, up 1bps sequentially, with earning asset yields rising 9bps and cost of funds up 8bps.

• Net interest income for Q2 2026 was $79.7 million, up $8.9 million sequentially and $15.8 million year-over-year, reflecting Two Rivers' contribution and higher loan yields.

• Total deposits increased to $7.57 billion, up $23.9 million from the prior quarter; total loans ended at $6.93 billion, down $9.9 million mainly due to payoffs in multifamily and agricultural loans.

• Non-interest income reached $28.8 million, up from $26.4 million in Q1 and $23.6 million year-over-year, with strong wealth management and insurance commissions.

• Efficiency ratio improved to 54.4% in Q2 2026.

Outlook and guidance

• Management anticipates continued integration benefits from the Two Rivers merger and ongoing capital deployment to enhance shareholder value.

• Focus remains on disciplined credit culture, conservative underwriting, and continued investments in technology and digital solutions.

• Strategic expansion through acquisitions and organic growth expected to continue.

• Forward-looking statements highlight risks from interest rates, economic conditions, regulatory changes, and competition.