First Mid Bancshares, Inc. (FMBH): History, Ownership, Mission, How It Works & Makes Money

How does a regional financial holding company like First Mid Bancshares, Inc. (FMBH) continue to post record-setting results in a challenging rate environment? You see the headlines-a community bank with 160 years of history, but the real story is in the numbers, like the $22.5 million in net income and the 3.80% tax-equivalent net interest margin it delivered in Q3 2025. This $7.8 billion asset organization is not just surviving; it's expanding its footprint through strategic moves, like the announced acquisition of Two Rivers Financial Group, Inc., so you have to ask: what is the engine driving this consistent growth and how does its mix of community banking, wealth management, and insurance actually make money?

First Mid Bancshares, Inc. (FMBH) History

You want to understand the bedrock of First Mid Bancshares, Inc. (FMBH), and that means looking past the ticker symbol to its 160-year history. This isn't a Silicon Valley startup; it's a financial institution with deep roots, evolving from a local bank in the post-Civil War era to a multi-state financial holding company with $7.8 billion in total assets as of late 2025.

The company's trajectory is a classic story of community banking that successfully scaled through strategic acquisitions and a clear focus on a full-suite of financial services-banking, wealth management, insurance, and agricultural services.

Given Company's Founding Timeline

Year established

First Mid Bancshares, Inc. traces its origins back to 1865.

Original location

The company was founded in Mattoon, Illinois, where its headquarters remain today.

Founding team members

For a company founded in 1865, the original founders' names are not widely publicized in modern corporate filings. The institution began as a community-focused financial body in the immediate aftermath of the Civil War, reflecting a local need for capital and stability. The current leadership, who have driven the modern growth, includes Chairman and CEO Joseph R. Dively.

Initial capital/funding

The original capital from 1865 is lost to time, but the modern company has demonstrated its ability to raise significant growth capital. A key capital injection came in October 2020 with a $96.0 million public offering of Fixed-to-Floating Rate Subordinated Notes, which funded a portion of the subsequent acquisition strategy.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's evolution wasn't just about adding assets; it was about transforming its business model from a local bank to a diversified financial service provider (a financial holding company).

Here's the quick math on recent performance: In the third quarter of 2025, the company reported net income of $22.5 million, or $0.94 diluted earnings per share. This is a clear indicator of the success of their expansion strategy.

• Diversification beyond Banking: A key strategic pivot was expanding into wealth management, insurance, and agricultural services. This multi-pillar approach provides a more stable revenue base, insulating the company from pure interest rate risk.
• The 2019 Rebranding: Dropping 'Illinois' from the name in 2019 was a subtle but defintely crucial signal to the market that First Mid Bancshares, Inc. was a regional player, not just a state-based one.
• Digital-First Optimization: In 2021, the company closed and consolidated 10 branches, a decisive action to cut non-interest expense and align with the shift toward digital banking preferences. This is a necessary move for any regional bank in the 2020s.
• Iowa Expansion (October 2025): The definitive agreement to acquire Two Rivers Financial Group, Inc. for roughly $94.1 million in stock is the most recent transformative step, pushing the company into Iowa and adding over $1.1 billion in assets. This deal is projected to be accretive to earnings per share by approximately 12.3% in 2027.

The foundation of this growth is their stated purpose: to collaborate to make an IMPACT-a core value framework you can review in detail here: Mission Statement, Vision, & Core Values of First Mid Bancshares, Inc. (FMBH).

First Mid Bancshares, Inc. (FMBH) Ownership Structure

First Mid Bancshares, Inc. (FMBH) is a publicly traded financial holding company, meaning its ownership is distributed among a diverse group of institutional investors, company insiders, and the general public. This structure ensures a degree of accountability to the market, but it also means large institutional blocks can heavily influence strategic decisions.

Given Company's Current Status

First Mid Bancshares, Inc. is a public entity, trading on the NASDAQ under the ticker FMBH. As of late October 2025, the company maintained a market capitalization of approximately $876.84 million, placing it firmly in the regional bank category. This public status is what allows you, the individual investor, to buy a piece of the action. The company is headquartered in Mattoon, Illinois, and provides a full suite of services-banking, insurance, wealth management, and ag services-across a multi-state footprint.

The company is currently navigating a significant growth phase, having announced on October 30, 2025, the acquisition of Two Rivers Financial Group, Inc., a deal expected to close in the first quarter of 2026. That's a clear signal of their near-term focus: expanding their network and product offerings across Illinois, Missouri, Texas, and Wisconsin. For a deeper dive into the market dynamics, you might want to check out Exploring First Mid Bancshares, Inc. (FMBH) Investor Profile: Who's Buying and Why?

Given Company's Ownership Breakdown

When you look at who actually owns First Mid Bancshares, Inc., the picture is typical for a regional bank: institutions hold the largest block. The biggest decision-makers are not necessarily the individual shareholders, but the large funds managing trillions in assets. Here's the quick math on the ownership distribution based on data closest to the end of the 2025 fiscal year:

Honestly, that 47.12% institutional stake is a big number. It means nearly half of the company is controlled by professional money managers whose decisions can defintely move the stock price in a hurry, especially during market volatility. The insider ownership of 10.15% is healthy, though-it shows the leadership team has a significant personal stake in the company's success, which is what you want to see.

Given Company's Leadership

The company is steered by a seasoned executive team, with a mix of long-tenured leaders and recently appointed specialists focusing on risk and operations. This is the core group responsible for executing the growth strategy and managing the bank's $7.8 billion in assets.

• Joseph R. Dively: Serves as Chairman of the Board and Chief Executive Officer, a position he has held since May 2011, providing over a decade of consistent leadership.
• Matt Smith: President, overseeing the company's operational and strategic initiatives.
• Jordan Read: Executive Vice President, Chief Financial Officer, and Chief Risk Officer. His dual role is critical for balancing growth with financial prudence in the current economic climate.
• Mike Taylor: Senior Executive Vice President and Chief Operating Officer, responsible for the day-to-day execution across the multi-state network.
• Alex J. Melvin: Appointed to the Board of Directors on November 18, 2025, bringing nearly two decades of leadership experience from the multi-state retail sector.

The average tenure for the management team is about 3.3 years, showing a blend of fresh perspectives and institutional knowledge, but the board's average tenure is a longer 9.2 years, which provides stability. You can see they are building out the team to handle the complexity of a larger, multi-state bank.

First Mid Bancshares, Inc. (FMBH) Mission and Values

First Mid Bancshares, Inc. (FMBH) anchors its long-term strategy in a clear vision: to be a community-focused, nimble financial organization. This focus is backed by core values that drive their operations, moving far beyond just maximizing quarterly earnings.

Honestly, understanding this cultural DNA is crucial because it maps directly to their conservative risk profile and their commitment to the communities that generate their revenue. For example, their total assets are around $7.8 billion, a size that demands both stability and local engagement.

First Mid Bancshares, Inc.'s Core Purpose

The company's core purpose is a simple, actionable directive that guides daily decisions, ensuring every employee is working toward a collective goal. This is not just a poster on the wall; it's the operating principle behind their Q3 2025 net income of $22.5 million.

Official mission statement

First Mid Bancshares, Inc. frames its mission through a set of strong, principled values, which they summarize using the acronym IMPACT. The company believes that making a positive IMPACT through their beliefs and actions has been the foundation of the organization since 1865.

• Integrity: Honesty and trustworthiness are core, driving the courage to do what is right.
• Motivation: Providing exceptional personal service to uphold their trustworthy reputation.
• Professionalism: Expertise and high standards in performance and service delivery.
• Accountability: Taking ownership for individual actions and team performance.
• Commitment: Dedication to the Company's success by balancing all stakeholders' needs.
• Teamwork: The foundation of excellence, grounded in respect and collaboration.

Vision statement

The vision statement clearly articulates the company's long-term aspiration, focusing on a balance between community service and financial strength. It's a defintely smart way to communicate value to both customers and shareholders.

• To be a nimble, community-focused financial organization committed to quality, growth and earned independence for the benefit of all our stakeholders.

This commitment to 'earned independence' is reflected in their Q3 2025 diluted earnings per share (EPS) of $0.94, showing they're growing their business while maintaining that community focus. You can find a deeper dive into these guiding principles here: Mission Statement, Vision, & Core Values of First Mid Bancshares, Inc. (FMBH).

First Mid Bancshares, Inc. slogan/tagline

The company uses a concise, action-oriented phrase to summarize their purpose and values.

• Collaborate to make an IMPACT.

This phrase is essentially their operational slogan, tying the 'Teamwork' value directly to the overall goal of creating a positive 'IMPACT' in the communities they serve. Their tangible book value per share of $28.21 as of Q3 2025 shows this model is working.

First Mid Bancshares, Inc. (FMBH) How It Works

First Mid Bancshares, Inc. (FMBH) operates as a diversified financial holding company, generating revenue primarily through net interest income from its loan portfolio and significant non-interest income from fee-based services like wealth management and insurance. This integrated model allows it to serve a broad client base-from individual consumers to large commercial and agricultural enterprises-across a growing, multi-state footprint.

Honestly, the whole operation is built on three core pillars: community banking, wealth management, and a surprisingly large insurance group. This structure is why its non-interest income hit $22.9 million in the third quarter of 2025.

Given Company's Product/Service Portfolio

Given Company's Operational Framework

First Mid's operational framework is designed to maximize cross-selling opportunities (synergies are defintely a real thing here) by integrating its three main business lines under a single client relationship. The goal is to capture both interest-based and fee-based revenue from the same customer.

• Value Creation Engine: The bank's primary revenue driver is net interest income, which hit $66.4 million in Q3 2025, fueled by a tax-equivalent net interest margin (NIM) of 3.80%.
• Deposit & Loan Growth: Core operations focus on local deposit gathering, which reached $6.29 billion in Q3 2025, and disciplined lending, with notable growth in construction, commercial real estate, and agriculture operating loans.
• Technology & Efficiency: The company completed a core system conversion in 2025 to improve its digital platform and customer experience. This focus on efficiency is reflected in its adjusted efficiency ratio of 58.75% for Q3 2025.
• M&A Integration: Near-term operations include integrating the pending acquisitions of Two Rivers Financial Group, Inc. and Ray Farm Management Services, Inc., which will expand its footprint into Iowa and boost its agricultural services.

For a deeper dive into the organizational philosophy, you can check out the Mission Statement, Vision, & Core Values of First Mid Bancshares, Inc. (FMBH).

Given Company's Strategic Advantages

The company's success isn't just about lending money; it's about being a one-stop financial shop in its regional markets. This diversification is a major buffer against interest rate volatility.

• Revenue Diversification: A key advantage is the significant contribution of non-interest income from its Insurance and Wealth Management segments, which provides a stable, fee-based revenue stream that offsets reliance on traditional lending.
• Regional Market Dominance: First Mid is recognized as the largest bank-owned insurance agency and the largest farm manager in Illinois, giving it specialized, deep-rooted expertise and a competitive edge in the highly valuable agribusiness sector.
• Strong Capital Position: It maintains robust capital levels, exceeding the 'well-capitalized' regulatory thresholds with a total capital to risk-weighted assets ratio of 15.99% as of Q3 2025, which provides a cushion for economic downturns and fuels strategic acquisitions.
• Community Focus & Scale: Operating as a $7.8 billion community-focused organization, it balances the personalized service of a local bank with the higher lending limits and broader product set of a larger regional player.

The clear action here is to watch the integration of the Two Rivers acquisition; successful execution will solidify their regional banking scale and boost future earnings.

First Mid Bancshares, Inc. (FMBH) How It Makes Money

First Mid Bancshares, Inc. (FMBH) primarily makes money the way most banks do: by borrowing money (deposits) at a lower interest rate and lending it out (loans) at a higher rate, a process called Net Interest Income (NII). Plus, they generate a substantial, growing stream of non-interest income from their wealth management and insurance businesses, which is a key differentiator for a regional bank.

Given Company's Revenue Breakdown

For the third quarter of 2025, First Mid Bancshares, Inc. generated total revenue of approximately $89.3 million, with the majority coming from traditional banking activities.

Here's the quick math: Net Interest Income for Q3 2025 was $66.4 million, and Non-interest Income was $22.9 million. That non-interest income is defintely important, accounting for roughly one-quarter of their total revenue, which helps insulate them when interest rate cycles turn against traditional lending.

Business Economics

The core of First Mid Bancshares, Inc.'s profitability lies in managing its Net Interest Margin (NIM)-the difference between the interest earned on assets (like loans) and the interest paid on liabilities (like deposits). For Q3 2025, the tax-equivalent NIM expanded to 3.80%, marking the sixth consecutive quarter of growth. They're making more on their loans while keeping the cost of deposits relatively contained.

• NIM Expansion: The recent NIM improvement is driven by higher yields on earning assets, like new and renewed loans, while maintaining funding costs, which is a sign of strong balance sheet management.
• Diversified Fee Income: The 26% non-interest income stream comes from three core areas: First Mid Wealth Management Company, which managed $6.3 billion in assets as of Q2 2025, First Mid Insurance Group, and service charges on deposits. This diversification provides a stable revenue base, even when loan demand slows.
• Loan Portfolio: Total loans reached $5.82 billion at the end of September 2025, growing by 1.0% quarter-over-quarter. This growth is well-diversified across commercial real estate, construction, and agriculture operating loans, mitigating concentration risk.
• Funding Base: Total deposits were $6.29 billion, with a notable 9.7% increase in non-interest-bearing demand deposits in Q3 2025. Low-cost, non-interest-bearing deposits are the cheapest source of funding, so that growth is a huge win for their cost of funds.

Given Company's Financial Performance

Looking at the latest figures from Q3 2025, the company shows solid operational health, demonstrating effective control over expenses and consistent earnings growth. This financial transparency is crucial for investors evaluating sustainability. Breaking Down First Mid Bancshares, Inc. (FMBH) Financial Health: Key Insights for Investors

• Net Income and EPS: Quarterly net income was $22.5 million, translating to a diluted earnings per share (EPS) of $0.94. This shows a healthy capacity to generate profit from their asset base.
• Efficiency Ratio: The adjusted efficiency ratio for Q3 2025 was 58.75%. For a bank, a lower ratio is better, meaning they spend less to generate a dollar of revenue; this figure indicates a continued focus on operational efficiency.
• Asset Quality: Asset quality remains stable, with the ratio of non-performing loans to total loans at a low 0.38%, consistent with the prior quarter. What this estimate hides is the need to continually monitor commercial real estate exposure in a changing interest rate environment.
• Tangible Book Value (TBV): Tangible book value per share increased by 6.0% during the third quarter of 2025. Growing TBV is the clearest sign of shareholder value creation in banking.

First Mid Bancshares, Inc. (FMBH) Market Position & Future Outlook

First Mid Bancshares, Inc. (FMBH) is strategically positioned as a growing, diversified regional bank, leveraging its multi-state footprint and full-suite financial services to drive profitability, even as the macro environment remains uncertain. The company's focus on disciplined M&A and margin expansion, evidenced by a Q3 2025 net interest margin of 3.80%, sets a clear trajectory for continued organic and inorganic growth.

Competitive Landscape

In the Midwest regional banking space, First Mid Bancshares competes effectively by focusing on its diversified revenue base and community-centric approach, which is a strong counterpoint to the scale and specialized services of its larger peers. Here's the quick math on how FMBH stacks up against two key regional players based on a proxy of total assets as of mid-2025.

Opportunities & Challenges

The near-term outlook for FMBH is shaped by its ability to successfully integrate recent acquisitions while navigating persistent industry headwinds like deposit competition. The company is defintely poised to capture new market share, but execution risk is real.

Industry Position

First Mid Bancshares, with approximately $7.8 billion in total assets, firmly holds a strong position as a mid-sized regional bank, operating across Illinois, Missouri, Texas, Wisconsin, and soon Iowa. This size is large enough to offer sophisticated products and technology-like the recently completed core system conversion-but small enough to maintain the local, community-bank feel that is its core competitive advantage.

• Maintain a high capital position, with a total capital to risk-weighted assets ratio of 15.99% as of Q3 2025, significantly exceeding the well-capitalized threshold.
• The pending Ray Farm Management Services acquisition will further solidify its niche in the specialized Ag Services sector, differentiating it from many pure-play commercial banks.
• FMBH's forecasted 2025 revenue of $335.099 million demonstrates a solid revenue base, but future growth will depend heavily on successful synergy realization from the Two Rivers integration.

To understand the investor perspective on these strategic moves, you should read Exploring First Mid Bancshares, Inc. (FMBH) Investor Profile: Who's Buying and Why?