First Mid Bancshares, Inc. Announces Fourth Quarter 2025 Results

MATTOON, Ill., Jan. 29, 2026 (GLOBE NEWSWIRE) -- First Mid Bancshares, Inc. (NASDAQ:FMBH) (the "Company") today announced its financial results for the quarter ended December 31, 2025.

Highlights

• Record high quarterly net income of $23.7 million, or $0.99 diluted EPS
• Adjusted quarterly net income^* of $25.3 million, or $1.06 diluted EPS
• Total loans of $6.01 billion, quarterly increase of $187.3 million, or 3.2% and an increase of 6.0% for the year
• Total deposits of $6.40 billion, quarterly increase of $105.7 million, or 1.7% and an increase of 5.6% for the year
• Tangible book value per share^* increased 4.3% during the quarter to $29.42 and an increase of 20.3% for the year
• Received regulatory approval for the acquisition of Two Rivers Financial Group, Inc.
• Board of Directors declares regular quarterly dividend of $0.25 per share
  
  

"We finished off a landmark year for First Mid with record annual earnings per share and net income. Our team executed at the highest levels on key strategic technology projects and now with our new retail online banking and core banking applications implemented, we have improved the customer experience and deployed a more efficient platform for growth. We are pleased with the continued progress towards closing our pending acquisition of Two Rivers Financial Group, Inc. as we received all regulatory approvals in the fourth quarter. We still anticipate closing to occur in the first quarter of 2026 as we enter Iowa with a great partner," said Joseph Dively, Chairman and CEO.

"Our team was able to capitalize on opportunities late in the fourth quarter to drive over 3% loan growth during the period and 6% for the year. In addition, our commitment to creating shareholder value through a diversified income stream is reflected in the growth of our business lines, including a record year of revenue for both wealth management and insurance," said Matthew Smith, President.

Net Interest Income

Net interest income for the fourth quarter of 2025 was $66.5 million, an increase of $0.2 million compared to the third quarter of 2025. Accretion income for the fourth quarter was $2.6 million, a decrease of $0.5 million compared to the prior quarter, primarily due to lower accelerated accretion from acquired loans.

In comparison to the fourth quarter of 2024, net interest income increased $7.6 million, or 12.9%. Interest income was higher by $6.1 million, inclusive of a decrease in accretion income of $0.8 million compared to the fourth quarter last year. Interest expense was lower by $1.5 million compared to the fourth quarter of last year.

Net Interest Margin

Net interest margin, on a tax equivalent basis^*, was 3.73% for the fourth quarter of 2025 representing a decrease of 7 basis points over the prior quarter, with a majority of the decrease driven by lower accretion income and an increase in interest expense from our sub-debt repricing in mid-October 2025. Excluding the $0.5 million decline in accretion income, net interest margin decreased by 4 basis points for the quarter.

Loan Portfolio

Total loans ended the quarter at $6.01 billion, representing an increase of $187.3 million, or 3.2%, from the prior quarter. The increase was well diversified and included construction and land development, farm real estate, multifamily residential properties, commercial real estate, and commercial and industrial loans. The increase also included greater line of credit utilization at the end of the quarter. Residential real estate and consumer loans saw modest declines in the quarter along with seasonal paydowns in the agricultural operating segment.

For the full year 2025, loan balances increased $338.9 million, or 6.0%. The largest increases were in construction and land development, commercial real estate, agriculture operating lines, and commercial and industrial loans.

Asset Quality

Asset quality remained strong for the quarter as the allowance for credit losses ("ACL") ended the period at $74.9 million and the ACL to total loans ratio was 1.25%, which was in line with the third quarter of 2025. In addition to the ACL, an unearned discount of $23.4 million remains at quarter end. Provision expense was recorded in the amount of $2.3 million during the quarter with growth in the loan portfolio and net charge-offs of $0.4 million, which is the lowest in 6 quarters. We continued to see credit normalization during the quarter from historical lows. At the end of the fourth quarter, the ratio of non-performing loans to total loans was 0.53%, which was an increase from the prior quarter primarily from two relationships. The borrowers are in different industries and geographies. The larger of these credits is a long-time customer in the consumer finance industry that is currently in discussions to sell their book of business. Minimal future losses are expected from this relationship. The ACL to non-performing loans ratio was 234%, a decrease from the prior quarter due to the addition of the above-mentioned relationships. The ratio of nonperforming assets to total assets increased from 0.30% in the prior quarter to 0.44%. Special mention loans increased by $59.3 million to $120.5 million and substandard loans increased $4.6 million to $80.0 million.

Deposits

Total deposits ended the quarter at $6.40 billion, which represented an increase of $105.7 million, or 1.7%, from the prior quarter. Non-interest-bearing demand deposits declined $57.7 million or 4.0% from the third quarter due to seasonal cash flow fluctuations from a few large depositors. Interest bearing demand deposits grew $193.9 million, or 10.2%.

Non-Interest Income

Non-interest income for the fourth quarter of 2025 was $21.7 million compared to $22.9 million in the prior quarter. The loss from the sale of low yielding bonds totaled $0.4 million and provided proceeds of $9.6 million that were redeployed at higher rates. These losses were lower than the third quarter of 2025 by $1.5 million. The Company paid down $20 million of subordinated debt during the quarter. The payoff included a write-down of subordinated debt-related discount costs totaling $0.3 million. The Company wrote down other investments during the quarter totaling $0.4 million. As part of the core conversion during the quarter and updated general ledger structure, a prospective change in presentation of $1.4 million in real estate sale gains for the year, which have historically been reported in "Other" non-interest income are now presented in "Other" within non-interest expenses. Excluding the aforementioned items, non-interest income for the quarter totaled $24.2 million.

Wealth management revenues for the quarter were $6.6 million, which was an increase of $1.4 million from the prior quarter and $0.3 million from the fourth quarter of 2024. Overall Ag Services revenue was $2.9 million in the period compared to $1.8 million in the prior quarter and $3.0 million in the fourth quarter of 2024. Insurance commissions for the quarter were $7.4 million, which was an increase of $0.4 million compared to the third quarter due to continued organic growth and performance of acquired books of business. Insurance commissions increased $0.6 million compared to the fourth quarter of 2024 from both organic growth and strategic acquisitions.

Non-Interest Expenses

Non-interest expense for the fourth quarter of 2025 totaled $55.9 million compared to $57.1 million in the prior quarter. During the quarter, technology expenses related to the core conversion project totaled $1.0 million. Expenses associated with the pending acquisition of Two Rivers Financial Group, Inc. totaled $0.6 million. Net gains, decreasing non-interest expenses during the quarter were from the sale of real estate and totaled $0.6 million. In addition, the previously mentioned $1.4 million in prior real estate sale gains during 2025 are now presented as other expenses and decreased this total. Excluding the aforementioned items, non-interest expenses for the quarter totaled $56.3 million. As part of the completed core conversion and updated general ledger structure, $2.1 million of "Other" expenses were prospectively changed in presentation to "Net occupancy and equipment expense". Salaries and benefits expense increased $2.1 million from the prior quarter, driven by incentive compensation tied to the solid end to the year in our wealth management and insurance business lines, sizeable loan production during the quarter, as well as our final incentive compensation true up.

The Company's efficiency ratio^*, as adjusted in the non-GAAP reconciliation table herein, for the fourth quarter of 2025 was 57.55% compared to 58.75% in the prior quarter and 58.76% for the same period last year.

Capital Levels and Dividend

The 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	15.67%
Tier 1 capital to risk-weighted assets	13.55%
Common equity tier 1 capital to risk-weighted assets	13.16%
Leverage ratio	11.07%

Tangible book value per share^* increased $1.21, or 4.3% during the fourth quarter of 2025. The increase was driven by both earnings and a decrease of $8.7 million related to the unrealized loss position in the Company's investment portfolio.

The Company's Board of Directors approved its regular quarterly dividend of $0.25 payable on February 27^th, 2026 to the shareholders of record as of February 12^th, 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., and First Mid Wealth Management Co. First Mid is a $8.0 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, and Wisconsin 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 Net Earnings," "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 Statements

This document may contain certain forward-looking statements about First Mid and Two Rivers, such as discussions of First Mid's and Two Rivers' pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid and Two Rivers intend 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 and Two Rivers 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 inability to complete the proposed transactions due to the failure to satisfy conditions to completion of the proposed transactions, including failure to obtain the required shareholder and other approvals; the failure of the proposed transactions to close for any other reason; 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 and Two Rivers; 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 and Two Rivers' 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 and Two Rivers; accounting principles, policies and guidelines; and the ability to complete the proposed transactions 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 and Two Rivers do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.

Important Information about the Merger and Additional Information

First Mid filed a registration statement on Form S-4 with the SEC on December 23, 2025, which as amended, was declared effective on January 16, 2026. The registration statement includes a proxy statement of Two Rivers that also constitutes a prospectus of First Mid. Two Rivers shareholders are urged to read the proxy statement/prospectus when it becomes available, which will contain important information about First Mid, Two Rivers and the proposed transaction, including detailed risk factors. The proxy statement/prospectus and other documents which were filed by First Mid with the SEC will be available free of charge at the SEC's website, www.sec.gov. These documents also can be obtained free of charge by accessing First Mid's website at www.firstmid.com under the tab "Investor Relations" and then under "SEC Filings." Alternatively, when available, these documents can be obtained free of charge from First Mid upon written request to First Mid Bancshares, PO Box 499, Mattoon, IL 61938, Attention: Investor Relations; or from Two Rivers upon written request to Two Rivers Financial Group, Inc., 222 North Main St., Burlington, IA 52601-5214, Attention: Andrea Gerst, CFO. A final proxy statement/prospectus was mailed to the shareholders of Two Rivers on January 23, 2026.

Participants in the Solicitation

First Mid and Two Rivers, and certain of their respective directors, executive officers, and other members of management and employees, are participants in the solicitation of proxies in connection with the proposed transactions. Information about the directors and executive officers of First Mid is set forth in the proxy statement for its 2025 annual meeting of stockholders, which was filed with the SEC on March 18, 2025. These documents can be obtained free of charge from the sources provided above. Investors may obtain additional information regarding the interests of such participants in the proposed transactions by reading the proxy statement/prospectus for such proposed transactions when it becomes available.

No Offer or Solicitation

This communication shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Investor Contact:

Austin Frank

SVP, Shareholder Relations

217-258-5522

afrank@firstmid.com

Jordan Read

Chief Financial and Risk Officer

217-258-3528

jread@firstmid.com

– Tables Follow –

FIRST MID BANCSHARES, INC.
Condensed Consolidated Balance Sheets
(In thousands, unaudited)
			As of
			December 31,				September 30,				December 31,
				2025				2025				2024
Assets
Cash and cash equivalents			$	254,920			$	277,087			$	121,216
Investment securities				1,085,499				1,098,093				1,073,510
Loans (including loans held for sale)				6,011,374				5,824,038				5,672,462
Less allowance for credit losses				(74,875	)			(72,925	)			(70,182	)
Net loans				5,936,499				5,751,113				5,602,280
Premises and equipment, net				90,782				94,673				100,234
Goodwill and intangibles, net				253,016				255,217				261,906
Bank Owned Life Insurance				174,915				173,588				170,854
Other assets				171,027				180,597				189,734
Total assets			$	7,966,658			$	7,830,368			$	7,519,734
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing			$	1,392,534			$	1,450,244			$	1,329,155
Interest bearing				5,002,739				4,839,299				4,727,941
Total deposits				6,395,273				6,289,543				6,057,096
Repurchase agreements with customers				196,716				200,506				204,122
Other borrowings				270,000				245,000				242,520
Junior subordinated debentures				24,454				24,419				24,280
Subordinated debt				60,008				79,645				87,472
Other liabilities				61,515				59,076				57,853
Total liabilities				7,007,966				6,898,189				6,673,343
Total stockholders' equity				958,692				932,179				846,391
Total liabilities and stockholders' equity			$	7,966,658			$	7,830,368			$	7,519,734

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
		Three Months Ended							Year Ended
		December 31,							December 31,
			2025				2024			2025				2024
Interest income:
Interest and fees on loans		$	86,972			$	81,288		$	338,694			$	320,446
Interest on investment securities			7,552				6,990			28,883				28,836
Interest on federal funds sold & other deposits			1,371				1,564			5,413				8,097
Total interest income			95,895				89,842			372,990				357,379
Interest expense:
Interest on deposits			24,462				26,144			98,327				106,919
Interest on securities sold under agreements to repurchase			987				1,333			4,490				6,448
Interest on other borrowings			2,341				1,917			8,401				8,673
Interest on jr. subordinated debentures			433				510			1,817				2,156
Interest on subordinated debt			1,142				988			3,790				4,454
Total interest expense			29,365				30,892			116,825				128,650
Net interest income			66,530				58,950			256,165				228,729
Provision for credit losses			2,349				3,643			9,921				5,635
Net interest income after provision for credit losses			64,181				55,307			246,244				223,094
Non-interest income:
Wealth management revenues			6,591				6,275			22,941				22,818
Insurance commissions			7,441				6,805			32,295				28,552
Service charges			3,161				3,058			12,297				12,362
Net securities losses			(398	)			0			(2,509	)			(433	)
Mortgage banking revenues			624				1,104			3,660				3,957
ATM/debit card revenue			3,947				4,204			16,411				16,807
Other			319				4,917			7,956				12,223
Total non-interest income			21,685				26,363			93,051				96,286
Non-interest expense:
Salaries and employee benefits			35,674				31,957			134,615				124,134
Net occupancy and equipment expense			11,035				7,285			36,579				30,407
Net other real estate owned expense			146				240			539				411
FDIC insurance			880				863			3,476				3,463
Amortization of intangible assets			2,963				3,314			12,443				13,556
Stationery and supplies			561				642			1,770				1,885
Legal and professional expense			2,459				5,386			10,746				12,944
ATM/debit card expense			1,918				2,043			6,945				6,384
Marketing and donations			760				906			3,348				3,418
Other			(529	)			3,661			11,786				18,381
Total non-interest expense			55,867				56,297			222,247				214,983
Income before income taxes			29,999				25,373			117,048				104,397
Income taxes			6,321				6,205			25,299				25,498
Net income		$	23,678			$	19,168		$	91,749			$	78,899
Per Share Information
Basic earnings per common share		$	0.99			$	0.80		$	3.84			$	3.31
Diluted earnings per common share			0.99				0.80			3.83				3.30
Weighted average shares outstanding			23,891,160				23,818,806			23,873,495				23,800,523
Diluted weighted average shares outstanding			24,000,061				23,908,340			23,986,508				23,895,681

FIRST MID BANCSHARES, INC.
Condensed Consolidated Statements of Income
(In thousands, except per share data, unaudited)
	For the Quarter Ended
	December 31,				September 30,				June 30,			March 31,				December 31,
	2025				2025				2025			2025				2024
Interest income:
Interest and fees on loans	$	86,972			$	87,020			$	84,784		$	79,918			$	81,288
Interest on investment securities		7,552				7,659				6,895			6,777				6,990
Interest on federal funds sold & other deposits		1,371				1,456				1,722			864				1,564
Total interest income		95,895				96,135				93,401			87,559				89,842
Interest expense:
Interest on deposits		24,462				25,179				24,964			23,722				26,144
Interest on securities sold under agreements to repurchase		987				1,105				1,218			1,180				1,333
Interest on other borrowings		2,341				2,186				2,043			1,831				1,917
Interest on jr. subordinated debentures		433				452				464			468				510
Interest on subordinated debt		1,142				850				849			949				988
Total interest expense		29,365				29,772				29,538			28,150				30,892
Net interest income		66,530				66,363				63,863			59,409				58,950
Provision for credit losses		2,349				3,353				2,567			1,652				3,643
Net interest income after provision for credit losses		64,181				63,010				61,296			57,757				55,307
Non-interest income:
Wealth management revenues		6,591				5,145				5,394			5,800				6,275
Insurance commissions		7,441				7,089				7,840			9,925				6,805
Service charges		3,161				3,240				2,995			2,901				3,058
Net securities losses		(398	)			(1,930	)			0			(181	)			0
Mortgage banking revenues		624				1,255				1,070			711				1,104
ATM/debit card revenue		3,947				4,182				4,636			3,646				4,204
Other		319				3,928				1,658			2,062				4,917
Total non-interest income		21,685				22,909				23,593			24,864				26,363
Non-interest expense:
Salaries and employee benefits		35,674				33,570				33,623			31,748				31,957
Net occupancy and equipment expense		11,035				9,196				7,869			8,479				7,285
Net other real estate owned expense		146				217				75			101				240
FDIC insurance		880				874				873			849				863
Amortization of intangible assets		2,963				3,128				3,121			3,231				3,314
Stationary and supplies		561				411				367			431				642
Legal and professional expense		2,459				2,454				2,757			3,076				5,386
ATM/debit card expense		1,918				2,052				1,144			1,831				2,043
Marketing and donations		760				959				777			852				906
Other		(529	)			4,285				4,156			3,874				3,661
Total non-interest expense		55,867				57,146				54,762			54,472				56,297
Income before income taxes		29,999				28,773				30,127			28,149				25,373
Income taxes		6,321				6,311				6,689			5,978				6,205
Net income	$	23,678			$	22,462			$	23,438		$	22,171			$	19,168
Per Share Information
Basic earnings per common share	$	0.99			$	0.94			$	0.98		$	0.93			$	0.80
Diluted earnings per common share		0.99				0.94				0.98			0.93				0.80
Weighted average shares outstanding		23,891,160				23,876,020				23,867,592			23,858,817				23,818,806
Diluted weighted average shares outstanding		24,000,061				23,997,198				23,988,974			23,959,228				23,908,340

FIRST MID BANCSHARES, INC.
Consolidated Financial Highlights and Ratios
(Dollars in thousands, except per share data)
(Unaudited)
		As of and for the Quarter Ended
		December 31,				September 30,				June 30,				March 31,				December 31,
		2025				2025				2025				2025				2024
Loan Portfolio
Construction and land development		$	360,687			$	336,795			$	298,812			$	269,148			$	236,093
Farm real estate loans			373,408				367,473				381,517				373,413				390,760
1-4 Family residential properties			489,854				495,537				495,787				488,139				496,597
Multifamily residential properties			339,482				330,549				360,604				356,858				332,644
Commercial real estate			2,564,670				2,432,180				2,393,640				2,397,985				2,417,585
Loans secured by real estate			4,128,101				3,962,534				3,930,360				3,885,543				3,873,679
Agricultural operating loans			308,275				311,594				306,374				296,811				239,671
Commercial and industrial loans			1,381,598				1,349,863				1,324,653				1,303,712				1,335,920
Consumer loans			31,918				36,317				41,604				47,220				53,960
All other loans			161,482				163,730				164,008				165,572				169,232
Total loans			6,011,374				5,824,038				5,766,999				5,698,858				5,672,462
Deposit Portfolio
Non-interest bearing demand deposits		$	1,392,534			$	1,450,244			$	1,321,446			$	1,394,590			$	1,329,155
Interest bearing demand deposits			2,095,370				1,901,516				1,947,744				1,814,427				1,907,733
Savings deposits			639,412				617,311				632,925				643,289				636,427
Money Market			1,138,464				1,184,964				1,206,140				1,215,420				1,196,537
Time deposits			1,129,493				1,135,508				1,081,944				1,062,654				987,244
Total deposits			6,395,273				6,289,543				6,190,199				6,130,380				6,057,096
Asset Quality
Non-performing loans		$	31,948			$	22,199			$	21,895			$	26,598			$	29,835
Non-performing assets			34,807				23,670				23,572				28,703				32,030
Net charge-offs (recoveries)			399				1,588				1,458				1,783				2,235
Allowance for credit losses to non-performing loans			234.37	%			328.51	%			325.00	%			263.36	%			235.23	%
Allowance for credit losses to total loans outstanding			1.25	%			1.25	%			1.23	%			1.23	%			1.24	%
Nonperforming loans to total loans			0.53	%			0.38	%			0.38	%			0.47	%			0.53	%
Nonperforming assets to total assets			0.44	%			0.30	%			0.31	%			0.38	%			0.43	%
Special Mention loans			120,510				61,195				81,815				74,019				57,848
Substandard and Doubtful loans			79,956				75,309				39,031				33,884				35,516
Common Share Data
Common shares outstanding			23,986,299				23,996,833				23,988,845				23,981,916				23,895,807
Book value per common share		$	39.97			$	38.85			$	37.27			$	36.32			$	35.42
Tangible book value per common share (1)			29.42				28.21				26.62				25.53				24.46
Tangible book value per common share excluding other comprehensive income at period end (1)			33.64				32.79				32.07				31.21				30.42
Market price of stock			39.00				37.88				37.49				34.90				36.82
Key Performance Ratios and Metrics
End of period earning assets		$	7,325,978			$	7,101,811			$	6,924,934			$	6,844,096			$	6,775,075
Average earning assets			7,168,176				7,014,675				6,975,783				6,769,858				6,884,303
Average rate on average earning assets (tax equivalent)			5.35	%			5.48	%			5.41	%			5.29	%			5.24	%
Average rate on cost of funds			1.71	%			1.75	%			1.75	%			1.74	%			1.83	%
Net interest margin (tax equivalent) (1)(2)			3.73	%			3.80	%			3.72	%			3.60	%			3.41	%
Return on average assets			1.21	%			1.17	%			1.20	%			1.19	%			1.01	%
Adjusted return on average assets (1)			1.30	%			1.21	%			1.23	%			1.23	%			1.10	%
Return on average common equity			10.01	%			9.95	%			10.52	%			10.35	%			9.04	%
Adjusted return on average common equity (1)			10.71	%			10.34	%			10.80	%			10.78	%			9.80	%
Efficiency ratio (tax equivalent) (1)			57.55	%			58.75	%			58.09	%			58.88	%			58.76	%
Full-time equivalent employees			1,170				1,178				1,190				1,194				1,198
1 Non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.
2 During the first quarter 2025, the Company changed the methodology utilized for the calculation of net interest margin to be more consistent with what is typically used by peer banks and research analysts. The calculation now is the annualized net interest income on a tax equivalent basis divided by average interest earning assets.

FIRST MID BANCSHARES, INC.
Net Interest Margin
(In thousands, unaudited)
	For the Quarter Ended December 31, 2025
	QTD Average							Average
	Balance				Interest			Rate
INTEREST EARNING ASSETS
Interest bearing deposits	$	166,801			$	1,354		3.22	%
Federal funds sold		76				1		5.22	%
Certificates of deposit investments		1,523				16		4.17	%
Investment Securities		1,123,304				8,041		2.86	%
Loans (net of unearned income)		5,876,472				87,267		5.89	%
Total interest earning assets		7,168,176				96,679		5.35	%
NONEARNING ASSETS
Other nonearning assets		716,463
Allowance for loan losses		(73,813	)
Total assets	$	7,810,826
INTEREST BEARING LIABILITIES
Demand deposits	$	3,165,580			$	14,835		1.86	%
Savings deposits		628,895				273		0.17	%
Time deposits		1,120,841				9,354		3.31	%
Total interest bearing deposits		4,915,316				24,462		1.97	%
Repurchase agreements		204,558				987		1.91	%
FHLB advances		257,500				2,339		3.60	%
Federal funds purchased		109				2		0.00	%
Subordinated debt		62,965				1,142		7.20	%
Jr. subordinated debentures		24,435				433		7.03	%
Total borrowings		549,567				4,903		3.54	%
Total interest bearing liabilities		5,464,883				29,365		2.13	%
NONINTEREST BEARING LIABILITIES
Demand deposits		1,342,458			Avg Cost of Funds			1.71	%
Other liabilities		57,335
Stockholders' equity		946,150
Total liabilities & stockholders' equity	$	7,810,826
Net Interest Earnings / Spread					$	67,314		3.22	%
Tax effected yield on interest earning assets								3.73	%
Tax equivalent net interest margin is a non-GAAP financial measure. Refer to reconciliation to the comparable GAAP measure.

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, unaudited)
	As of and for the Quarter Ended
	December 31,				September 30,				June 30,				March 31,				December 31,
	2025				2025				2025				2025				2024
Net interest income as reported	$	66,530			$	66,363			$	63,863			$	59,409			$	58,950
Net interest income, (tax equivalent)		67,314				67,143				64,634				60,162				59,717
Average earning assets		7,168,176				7,014,675				6,975,783				6,769,858				6,884,303
Net interest margin (tax equivalent)		3.73	%			3.80	%			3.72	%			3.60	%			3.41	%
Common stockholder's equity	$	958,692			$	932,179			$	894,140			$	870,949			$	846,391
Goodwill and intangibles, net		253,016				255,217				255,547				258,671				261,906
Common shares outstanding		23,986				23,997				23,989				23,982				23,896
Tangible Book Value per common share	$	29.42			$	28.21			$	26.62			$	25.53			$	24.46
Accumulated other comprehensive loss (AOCI)		(101,301	)			(110,012	)			(130,710	)			(136,097	)			(142,383	)
Adjusted tangible book value per common share	$	33.64			$	32.79			$	32.07			$	31.21			$	30.42

FIRST MID BANCSHARES, INC.
Reconciliation of Non-GAAP Financial Measures
(In thousands, except per share data, unaudited)
	As of and for the Quarter Ended
	December,				September 30,				June 30,				March 31,				December 31,
	2025				2025				2025				2025				2024
Adjusted earnings Reconciliation
Net Income - GAAP	$	23,678			$	22,462			$	23,438			$	22,171			$	19,168
Adjustments (post-tax) (1)
Net (gain)/loss on securities sales		314				1,525				-				143				-
Net (gain)/loss on subordinated debt repayment		237				-				-				-				-
Net (gain)/loss on other investments		349				-				-				-				-
Technology project expenses		761				360				246				728				1,710
Net (gain)/loss on real estate		(443	)			(1,033	)			-				-				-
Severance expense		-				15				-				-				-
Integration and acquisition expenses		434				13				3				41				-
Total adjustments (non-GAAP)	$	1,652			$	880			$	249			$	912			$	1,710
Adjusted earnings - non-GAAP	$	25,330			$	23,342			$	23,687			$	23,083			$	20,878
Adjusted diluted earnings per share (non-GAAP)	$	1.06			$	0.97			$	0.99			$	0.96			$	0.87
Adjusted return on average assets (non-GAAP)		1.30	%			1.21	%			1.23	%			1.23	%			1.10	%
Adjusted return on average common equity (non-GAAP)		10.71	%			10.34	%			10.80	%			10.78	%			9.80	%
Efficiency Ratio Reconciliation
Noninterest expense - GAAP	$	55,867			$	57,146			$	54,762			$	54,472			$	56,297
Other real estate owned property income (expense)		(76	)			(217	)			(75	)			(101	)			(240	)
Amortization of intangibles		(2,963	)			(3,128	)			(3,121	)			(3,231	)			(3,314	)
Gain/(loss) on real estate		560				(95	)			-				-				-
Severance expense		-				(19	)			-				-				-
Technology project expense		(963	)			(456	)			(311	)			(921	)			(2,164	)
Integration and acquisition expenses		(549	)			(17	)			(4	)			(52	)			-
Adjusted noninterest expense (non-GAAP)	$	51,876			$	53,214			$	51,251			$	50,167			$	50,579
Net interest income -GAAP	$	66,530			$	66,363			$	63,863			$	59,409			$	58,950
Effect of tax-exempt income(1)		784				780				771				753				767
Adjusted net interest income (non-GAAP)	$	67,314			$	67,143			$	64,634			$	60,162			$	59,717
Noninterest income - GAAP	$	21,685			$	22,909			$	23,593			$	24,864			$	26,363
Gain on real estate sales		0				(1,403	)			-				-				-
Net (gain)/loss on securities sales		398				1,930				-				181				-
Net (gain)/loss on subordinated debt repayment		300				-				-				-				-
Net (gain)/loss on other investments		442				-				-				-				-
Adjusted noninterest income (non-GAAP)	$	22,825			$	23,436			$	23,593			$	25,045			$	26,363
Adjusted total revenue (non-GAAP)	$	90,139			$	90,579			$	88,227			$	85,207			$	86,080
Efficiency ratio (non-GAAP)		57.55	%			58.75	%			58.09	%			58.88	%			58.76	%
(1) Nonrecurring items (post-tax) and tax-exempt income are calculated using an estimated effective tax rate of 21%.