0001193125-26-080847
SEC filingFirst Mid Bancshares, Inc. reported net income of $91.7 million for fiscal year 2025, an increase from $78.9 million in 2024. This performance was driven by net interest income of $256.2 million, up from $228.7 million the prior year, and total other income of $93.1 million. The company's total assets grew to $7.97 billion from $7.52 billion, supported by a net loan increase of $345.7 million and deposit growth of $338.2 million. Key profitability metrics include basic EPS of $3.84 and a return on average equity of 10.24%. The company maintained strong capital ratios, with total capital to risk-weighted assets at 15.67%, well above regulatory requirements. Management highlighted interest rate sensitivity as a key risk factor, with net interest income projected to increase by $10.1 million with a 200 basis point prime rate increase.
First Mid Bancshares, Inc. reported solid financial results for fiscal year 2025, with net income of $91.7 million compared to $78.9 million in 2024, representing a 16.3% year-over-year increase. Total interest income reached $373.0 million, up from $357.4 million in the prior year, while interest expense decreased to $116.8 million from $128.7 million. This resulted in net interest income of $256.2 million, a 12.0% increase from $228.7 million in 2024. Other income totaled $93.1 million, slightly down from $96.3 million the previous year. The company's basic earnings per share improved to $3.84 from $3.31, and diluted EPS increased to $3.83 from $3.30. Total assets grew to $7.97 billion from $7.52 billion, driven by loan portfolio expansion and deposit growth.
Interest income was the primary revenue driver, totaling $373.0 million for the year. The largest component was interest and fees on loans at $338.7 million, followed by interest on investment securities ($28.9 million combined taxable and tax-exempt). Other income sources contributed $93.1 million, with insurance commissions ($32.3 million) and wealth management revenues ($22.9 million) being the most significant non-interest income streams. Service charges generated $12.3 million, while ATM/debit card revenue contributed $16.4 million. Mortgage banking revenue was $3.7 million, and bank owned life insurance income was $5.5 million. The company experienced a net securities loss of $2.5 million during the period.
Net interest margin improved as net interest income increased to $256.2 million from $228.7 million in 2024, representing growth of 12.0%. The provision for credit losses was $9.9 million, up from $5.6 million the prior year. Total other expense was $222.2 million, compared to $215.0 million in 2024, with salaries and employee benefits being the largest component at $134.6 million. Income before taxes was $117.0 million, up from $104.4 million in 2024. The effective tax rate was 21.6% compared to 24.4% in the prior year. Return on average equity was 10.24% for 2025, improving from 9.65% in 2024.
Net cash provided by operating activities was $130.9 million for 2025. Investing activities used $302.6 million, primarily for net loan increases of $345.7 million and purchases of investment securities. Financing activities provided $305.5 million, driven by net deposit increases of $338.2 million. The balance sheet shows total assets of $7.97 billion, with loans of $6.01 billion (net of allowance for credit losses of $74.9 million). Investment securities totaled $1.08 billion, and cash and cash equivalents were $254.9 million. Total deposits were $6.40 billion, with non-interest bearing deposits of $1.39 billion. Total stockholders' equity was $958.7 million, and the company maintained regulatory capital ratios well above minimum requirements.
Management's discussion highlights interest rate sensitivity as a key risk factor, with analysis showing that a 200 basis point increase in the prime rate would increase net interest income by $10.1 million (4.47%) and return on average equity by 1.00%. The company has an interest rate risk policy establishing maximum decreases of 5% in net interest income for a 100 basis point rate shift. The Economic Value of Equity analysis shows the company would experience a decrease of 5.3% with a +200 basis point shock, within policy guidelines. The company has a pending acquisition of Two Rivers Financial Group, Inc. anticipated to close on February 28, 2026. Management believes the disposition of claims and lawsuits will not have a material adverse effect on financial position.