First Mid Bancshares, Inc. (FMBH): Business Model Canvas [Dec-2025 Updated]

You're looking to quickly map out how First Mid Bancshares, Inc. (FMBH) actually makes money and sustains its community-focused model, especially after their recent strategic moves. Honestly, it's a classic Midwestern bank story, but with a sharp edge: they blend relationship banking with a full suite of services, evidenced by their $7.7 billion in total assets as of Q3 2025 and a solid 58.75% adjusted efficiency ratio. They aren't just sitting on deposits-they are actively growing through strategic M&A, like the Two Rivers Financial Group deal, while maintaining a strong base of $6.29 billion in core deposits. This canvas breaks down the nine essential parts of their engine, from their specialized Ag services to their diversified revenue streams. Here's the quick math on how they operate.

First Mid Bancshares, Inc. (FMBH) - Canvas Business Model: Key Partnerships

You're looking at the critical relationships First Mid Bancshares, Inc. relies on to execute its strategy as of late 2025. These aren't just vendors; they are strategic enablers for growth and service delivery.

The expansion into Iowa is being formalized through a major transaction with Two Rivers Financial Group, Inc. (TRVR). This all-stock deal, valued at approximately $94.1 million based on First Mid Bancshares, Inc.'s October 29, 2025, closing price of $36.80 per share, brings in TRVR's $1.1 billion in total assets as of September 30, 2025. The partnership structure dictates that Two Rivers shareholders will receive 1.225 shares of FMBH common stock for each TRVR share. First Mid Bancshares, Inc. projects this combination will be 12.3% accretive to earnings per share by 2027, with the tangible book value per share dilution expected to recover in just 2.1 years. First Mid Bancshares, Inc. anticipates achieving cost savings of roughly 27% of Two Rivers Financial Group, Inc.'s noninterest expense. The combined entity is expected to maintain a pro forma CET1 ratio of approximately 12.8%.

For the Ag services growth, First Mid Bancshares, Inc. is partnering with Ray Farm Management Services, Inc., an agreement announced in Q3 2025. This acquisition is expected to close on December 30, 2025, and is set to add approximately 9,000 acres under management to First Mid Ag Services. This segment posted revenue of $1.8 million in the third quarter of 2025, down from $2.3 million in the prior quarter.

The foundation for digital and operational scaling involves key technology partners. First Mid Bancshares, Inc., a $7.7 billion organization as of late 2025, selected Jack Henry to modernize its infrastructure. This move supports over 80 branches across Illinois, Missouri, Texas, and Wisconsin. The new core processing platform offers access to an open ecosystem with over 950 API-integrated, third-party fintechs. Nonrecurring expenses tied to technology initiatives were $0.2 million in the second quarter of 2025, down from $1.0 million in the first quarter of 2025. The conversion of the core operating system was completed in late October.

The operational structure also depends on external financial relationships, though specific figures aren't publically detailed for these blocks:

First Mid Bancshares, Inc. maintains relationships with correspondent banks to handle liquidity management and services that fall outside its current footprint, which spans Illinois, Missouri, Texas, and Wisconsin, plus a loan production office in the greater Indianapolis area.

The comprehensive brokerage offerings through First Mid Insurance Group, Inc. rely on partnerships with third-party insurance carriers. Insurance revenues for Q2 2025 were $7.8 million.

Finance: draft Q4 2025 pro forma balance sheet incorporating TRVR by Friday.

First Mid Bancshares, Inc. (FMBH) - Canvas Business Model: Key Activities

You're looking at the core engine of First Mid Bancshares, Inc. (FMBH) as of late 2025, which is all about moving money and managing risk across its footprint. The primary activity centers on commercial, retail, and agricultural lending, supported by diligent loan portfolio management. As of the third quarter of 2025, the total loan book stood at $5.82 billion, showing a quarterly increase of $57.0 million, or 1.0%. To keep that engine well-oiled, they are actively managing asset quality, reflected in a 20-year average net charge-off rate of just 0.14%.

Crucially, this lending is funded by aggressive deposit gathering and maintaining that core deposit franchise. You saw the total deposits hit $6.29 billion in Q3 2025. Honestly, the growth in noninterest bearing demand deposits was a big driver, jumping by $128.8 million, which is a 9.7% lift that quarter. They are clearly focused on keeping funding costs low, with the average cost of funds remaining flat at 1.75% for the quarter.

Here's a quick look at how those key banking activities stacked up in Q3 2025:

Beyond traditional lending, First Mid Bancshares, Inc. actively manages wealth management, trust, and farm management services. Wealth management revenues for the quarter were $5.1 million. The company is also expanding its Ag Services footprint through strategic M&A; they announced the pending acquisition of Ray Farm Management Services, Inc., which is set to add about 9,000 acres under management when it closes in Q4 2025.

Insurance brokerage operations are a significant non-interest income stream. First Mid Insurance Group (FMIG) is recognized as a top-10 bank-owned insurance agency nationally and one of the largest independent brokers in the Midwest. This segment contributes heavily to the overall noninterest income, which was $22.9 million in Q3 2025, making up about 28% of revenue over the trailing 12 months.

Finally, strategic M&A and integration are key activities for geographic and product expansion. First Mid Bancshares, Inc. is a $7.7 billion organization that announced the pending acquisition of Two Rivers Financial Group, Inc. on October 30, 2025, aiming to diversify its footprint into Iowa. This ongoing integration work, alongside the recent completion of a core operating system conversion and 8 branch closures, shows a clear drive for efficiency and scale.

Finance: draft the pro-forma balance sheet impact of the Two Rivers acquisition by next Tuesday.

First Mid Bancshares, Inc. (FMBH) - Canvas Business Model: Key Resources

You're looking at the core assets First Mid Bancshares, Inc. relies on to execute its business strategy. These aren't just line items; they are the engines driving the organization.

Financial capital is substantial, underpinning all lending and operational activities. Total assets of $7.7 billion as of Q3 2025 provide the necessary scale for regional banking operations. This capital base supports a loan portfolio that ended Q3 2025 at $5.82 billion, while total deposits stood at $6.29 billion at the same period end.

The organization's human capital is built around its experienced management and seasoned lending teams. This depth of experience is noted as driving superior performance through credit cycles, reflected in a 20-year average net charge-off rate of just 0.14%.

For intellectual property, First Mid Bancshares, Inc. leverages its specialized agricultural expertise. First Mid Ag Services is recognized as the largest manager of cropland in Illinois. This division manages over 290,000 acres across more than 1,000 farms. Furthermore, the wealth management arm manages approximately $6.4B in wealth management assets.

In terms of physical assets, First Mid Bancshares, Inc. maintains a network of bank branches across four states. First Mid Bank & Trust currently operates with 81 branches located in 4 states, specifically Illinois, Missouri, Texas, and Wisconsin, plus a loan production office in Indiana.

The commitment to technology involves the recent conversion of its core operating system and digital banking platform, supporting services like online eStatements and a mobile app.

Here's a quick look at some key Q3 2025 performance metrics that reflect the deployment of these resources:

The Ag Services team includes 25 farm managers/Illinois licensed real estate brokers across six regional offices in Illinois.

• - Wealth Management Assets Under Management: $6.4 billion
• - Total Branch Count: 81
• - States with Bank Locations: 4 (IL, MO, TX, WI)
• - Ag Services Farms Under Management: 1,000
• - Q3 2025 Net Interest Income: $66.36 million

Finance: draft 13-week cash view by Friday.

First Mid Bancshares, Inc. (FMBH) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose First Mid Bancshares, Inc. It's not just about having a bank account; it's about the breadth of services available from a single, established source. First Mid Bancshares, Inc. offers a full-suite financial services approach, meaning you can handle your banking, insurance needs, and wealth planning all under one roof. This integration is key, especially when you see that they bolster their non-interest income with what is described as Illinois' largest community bank insurance agency.

Here's a quick look at how that diversification plays out in the numbers as of Q3 2025:

The company's longevity is a major draw; they've been serving communities since 1865. That's a deep history, which translates into a community-focused, relationship-based banking approach. They maintain a geographically disbursed franchise across Illinois, Missouri, Texas, and Wisconsin, plus a loan production office in the greater Indianapolis area. They are even expanding this footprint with the pending acquisition of Two Rivers Financial Group, Inc. to enter Iowa.

When it comes to lending, First Mid Bancshares, Inc. emphasizes a diversified lending mix, with a strong focus on commercial, Ag, and real estate loans. This isn't just talk; you see the Ag focus reflected in their specialized services. For financial stability, you can look at the reported metrics; the Tangible book value per share stood at $28.21 in Q3 2025, reflecting a 6.0% increase during that quarter alone.

The specialized Ag services are a distinct value proposition, offering more than just standard lending. You get expertise in farm management, which is important in their core markets. Here are some specifics on that segment:

• - Ag Services revenue for the quarter was $1.8 million.
• - Announced pending acquisition of Ray Farm Management Services, Inc..
• - Expected to add approximately 9,000 acres under management from the acquisition.

Honestly, the combination of long-term stability and a broad, integrated service offering is what sets their value proposition apart. Finance: draft 13-week cash view by Friday.

First Mid Bancshares, Inc. (FMBH) - Canvas Business Model: Customer Relationships

You're looking at how First Mid Bancshares, Inc. (FMBH) keeps its customers close, which really boils down to balancing that traditional, face-to-face community feel with the efficiency of modern digital tools. For your high-value commercial and wealth clients, the relationship is definitely managed closely.

Dedicated relationship managers for commercial and wealth clients

The bank supports its relationship-based lending, which saw total loans grow to $5.82 billion in the third quarter of 2025. This requires dedicated attention, especially as they integrate new business lines, like the pending acquisition of Two Rivers Financial Group, Inc., which will broaden their wealth and insurance offerings. The core of this high-touch service is evident in their wealth management segment.

• Wealth management revenues for Q3 2025 were $5.1 million.
• As of mid-2025, FMBH managed approximately $6.3 billion in wealth management assets.
• Combined wealth management and insurance revenue saw an 8.2% year-over-year increase in Q1 2025.

Community banking model emphasizing local presence and service

First Mid Bancshares, Inc. leans heavily on its community focus, which is the bedrock of its service delivery. They are a $7.7 billion community-focused organization. This local presence is maintained through a network of physical locations, though they are actively optimizing this footprint. They recently completed a branch optimization project, closing 8 full-service branches across their footprint. Still, they are investing in new physical touchpoints, like the grand opening of their newest financial center in Champaign, IL, on October 1, 2025. This strategy aims to deliver high-value, relationship-based support where it's needed most.

The commitment to community is also driving strategic expansion; the pending acquisition of Two Rivers Financial Group, Inc. is specifically cited as a cultural and strategic fit based on a shared focus on community banking.

Here's a quick look at the physical scale versus the digital investment:

Self-service digital channels for transactional banking needs

To manage transactional banking and align with customer migration to digital, First Mid Bancshares, Inc. has been making significant technology investments. They completed their core system conversion in late October 2025, which is expected to bring process efficiencies. Furthermore, they successfully completed their retail online system conversion during the first quarter of 2025. This sets up a platform supporting a full suite of digital self-service options.

• Digital services include Full-Service Online Banking and Mobile Banking.
• Transactional tools include Mobile Deposit, Online Bill Pay, and Zelle: P2P Transfer.
• They also support Online Account Opening and E-lending.

The bank added personnel to its Digital Solutions Teams to better compete against both traditional and non-traditional rivals.

Personalized advisory services for wealth and insurance clients

The advisory side is supported by First Mid Insurance Group, Inc. and First Mid Wealth Management Co., which are key subsidiaries. These services provide a crucial non-interest income stream, which was a key driver of growth in Q1 2025. The focus here is on personalized guidance, from savings and retirement strategies to insurance product suites, which are offered across their Illinois and Missouri office locations.

First Mid Bancshares, Inc. (FMBH) - Canvas Business Model: Channels

First Mid Bancshares, Inc. serves its customers through a combination of physical locations and digital channels, supporting its status as a community-focused organization with approximately $7.7 billion in assets as of the third quarter of 2025.

The physical branch network is established across four key states:

• - Physical branch network across Illinois, Missouri, Texas, and Wisconsin.
• - The institution operates over 80 branches across these states.
• - During the third quarter of 2025, First Mid Bancshares, Inc. completed the closing of 8 full-service branches.

Here is a snapshot of the physical and organizational scale supporting these channels as of late 2025:

Digital access is a growing component of the channel strategy, supported by recent technology upgrades:

• - Digital banking platforms (mobile and online) for retail and business customers.
• - Successful conversion of the retail online platform completed in the first quarter of 2025.
• - Core system conversion finalized in late October 2025.

For specialized lending and services, First Mid Bancshares, Inc. maintains dedicated offices:

• - Loan production offices, including one in the greater Indianapolis area.
• - A direct contact number for Agency Finance, which includes a direct line at 317-813-1700.

The insurance and wealth management services are delivered through a direct sales approach, contributing to non-interest income diversification:

• - Direct sales force for insurance and wealth management services.
• - Wealth management revenues for the third quarter of 2025 totaled $5.1 million.

First Mid Bancshares, Inc. (FMBH) - Canvas Business Model: Customer Segments

You're looking at the core groups First Mid Bancshares, Inc. (FMBH) serves across its community-focused footprint. Honestly, their model is built on deep local relationships, which you can see reflected in how they segment their business.

The customer segments are clearly defined, spanning from everyday banking needs to specialized wealth and agricultural services across their network in Illinois, Missouri, Texas, and Wisconsin, plus that loan production office near Indianapolis. They are even expanding into Iowa with the pending acquisition of Two Rivers Financial Group, Inc., announced in October 2025.

Here's a look at the primary groups First Mid Bancshares, Inc. targets:

• - Retail customers: Individuals and families in local communities who use personal and commercial banking solutions.
• - Commercial businesses: Small to mid-sized enterprises (SMEs) needing banking, treasury, and asset management services.
• - Agricultural customers: Farmers and Ag-related businesses, where First Mid Bancshares, Inc. claims the title of the Largest farm manager in Illinois.
• - High-net-worth individuals seeking wealth and trust management through First Mid Wealth Management Company.

To give you a sense of the scale these segments operate within as of late 2025, look at the balance sheet figures from their third quarter results:

The retail segment drives the core deposit base, which stood at $6.29 billion at the end of September 2025. You see evidence of this consumer focus in their offerings like checking, savings, mortgages, and consumer loans, including home equity products.

For commercial businesses, the focus is on providing solutions that support growth, which is critical given the total loan portfolio size of $5.82 billion as of September 30, 2025. The bank also supports these clients through First Mid Insurance Group, Inc..

The agricultural segment is a specialized niche, supported by the company's status as the largest farm manager in Illinois. This segment contributes through dedicated Ag Services revenue, which was $2.3 million in the second quarter of 2025.

Finally, high-net-worth individuals and businesses access wealth and trust management services. First Mid Wealth Management Co. reported Assets Under Management (AUM) of $6.2 billion as of March 31, 2025. This group benefits from specialized trust services not offered through their brokerage partner, Raymond James Financial Services Advisors, Inc..

Finance: draft the loan concentration breakdown by sector for Q3 2025 by next Tuesday.

First Mid Bancshares, Inc. (FMBH) - Canvas Business Model: Cost Structure

You're looking at the core expenses First Mid Bancshares, Inc. is managing as of late 2025. The focus here is on controlling the cost base while executing major strategic shifts, like system conversions and branch optimization.

• - Interest expense on deposits and borrowings (lower by $3.9 million vs. Q3 2024)
• - Personnel expenses (salaries and benefits) increased by $2.0 million in Q3 2025 compared to Q3 2024, driven by annual compensation increases and incentives for over performance.
• - Non-interest expenses, managed for an adjusted efficiency ratio of 58.75% (Q3 2025).
• - Technology and data processing costs for core system conversion were a factor, with one-time costs associated with technology enhancements noted in Q3 2025. For context, Q1 2025 included $1.0 million in nonrecurring technology initiative expenses.
• - Occupancy and equipment costs for the branch network saw increases primarily from one-time costs related to branch closures; First Mid Bancshares, Inc. closed 8 full-service branches across its footprint during Q3 2025.

To give you a clearer picture of the non-interest expense movement leading into the end of 2025, here is a breakdown based on the Q3 results:

The management of funding costs is a key driver here; interest expense was notably lower year-over-year in the third quarter. Also, the completion of the core operating system conversion in late October sets up potential future process efficiencies. That's a big lever for cost control moving into 2026.

First Mid Bancshares, Inc. (FMBH) - Canvas Business Model: Revenue Streams

You're looking at how First Mid Bancshares, Inc. actually brings in the money, which is key for understanding its stability, especially with interest rate fluctuations. The core engine remains the traditional banking spread.

The primary driver is Net Interest Income (NII), which comes from the difference between what First Mid Bancshares, Inc. earns on its loans and investments and what it pays out on deposits and borrowings. For the third quarter of 2025, this figure hit $66.4 million. This was supported by a net interest margin, on a tax equivalent basis, that expanded to 3.80% in Q3 2025, marking the sixth consecutive quarter of NII growth.

To balance the interest rate risk, First Mid Bancshares, Inc. relies on fee income, which represented approximately 28% of total revenue over the last twelve months ending September 30, 2025. This non-interest income is generated across several complementary business lines. Here's a quick look at the composition of that fee income for the quarter ending September 30, 2025, where total non-interest income was $22.9 million.

The overall revenue streams for First Mid Bancshares, Inc. as of late 2025 are clearly segmented across its banking, insurance, and wealth management operations. You can see the key components below:

• - Net Interest Income (NII) from loans and investments, reported at $66.4 million in Q3 2025.
• - Non-interest income from fees, which accounted for approximately 28% of total revenue over the trailing twelve months ending September 30, 2025.
• - Wealth Management fees, which totaled $5.1 million in Q3 2025.
• - Insurance brokerage commissions and fees, with insurance commissions specifically reported at $7.1 million for the quarter.
• - Service charges on deposit accounts, which represented 12% of total fee income in Q3 2025, alongside loan fees contributing to the overall non-interest income.

To be defintely clear, the wealth management segment manages Assets Under Management (AUM) totaling $6.4 billion as of Q3'25. Finance: draft the Q4 2025 revenue projection based on the Q3 run-rate by next Tuesday.