First Mid Bancshares (FMBH) Q3 2025 earnings summary

Executive summary

• Net income for the nine months ended September 30, 2025 was $68.1 million, up from $59.7 million year-over-year; diluted EPS was $2.84, up from $2.49.

• Achieved quarterly net income of $22.5 million ($0.94 diluted EPS) and adjusted net income of $23.3 million ($0.97 diluted EPS), reflecting solid financial and operational performance.

• Net interest margin improved to 3.71% from 3.32% year-over-year, and tax equivalent net interest margin expanded to 3.80%, marking the sixth consecutive quarter of growth.

• Completed core operating system conversion and branch optimization, closing 8 full-service branches to enhance efficiency.

• Announced pending acquisitions of Two Rivers Financial Group, Inc. and Ray Farm Management Services, Inc.

Financial highlights

• Net interest income before provision for credit losses was $189.6 million, up from $169.8 million year-over-year; Q3 2025 net interest income was $66.4 million, up 15.3% year-over-year.

• Total assets reached $7.8 billion, an increase from $7.5 billion at year-end 2024; total loans grew to $5.82 billion, up $209.4 million year-over-year.

• Non-interest income rose 2.1% to $71.4 million, mainly from higher insurance commissions, with Q3 non-interest income at $22.9 million.

• Non-interest expense increased 4.8% to $166.4 million, with Q3 expense at $57.1 million, including $2.5 million in one-time pre-tax costs.

• Tangible book value per share rose 6.0% to $28.21 during the quarter.

Outlook and guidance

• Management expects continued strong capital and liquidity positions, with regulatory capital ratios above well-capitalized standards.

• Pending acquisitions are expected to diversify the footprint and expand into Iowa, with integration anticipated in the coming quarters.

• Core system conversion and branch closures are projected to yield cost savings and process efficiencies.

• The pending acquisition of Two Rivers Financial Group is anticipated to close in the first half of 2026, subject to regulatory and shareholder approval.