First Mid Bancshares Reports $26.3 Million Net Income in Q1 2026, Driven by Two Rivers Acquisition

First Mid Bancshares, Inc. reported a net income of $26.3 million for the first quarter of 2026, an increase from $22.2 million in the same period of 2025. This translates to a diluted earnings per share of $1.06, up from $0.93 year-over-year. The company's total assets grew significantly to $9.3 billion, compared to $8.0 billion at the end of 2025, primarily driven by the acquisition of Two Rivers Financial Group, which was completed on February 28, 2026. The net interest income before provision for credit losses rose to $70.8 million, up from $59.4 million, reflecting a higher net interest margin of 3.78%, compared to 3.60% in the prior year.

The increase in net interest income was attributed to the addition of Two Rivers' loan portfolio and improved yields on earning assets. Total deposits also increased to $7.5 billion from $6.4 billion, largely due to the acquisition. However, total non-interest expenses rose to $60.7 million, an increase of 11.5% from the previous year, primarily due to higher salaries and employee benefits, as well as integration costs associated with the Two Rivers acquisition.

Operationally, First Mid Bancshares saw a significant increase in its loan portfolio, which reached $6.9 billion, up from $5.9 billion at the end of 2025. The company reported a provision for credit losses of $2.6 million, compared to $1.7 million in the same quarter of the previous year, reflecting a cautious approach to credit quality amid a changing economic landscape. Nonperforming loans increased to $44.1 million, up from $26.6 million a year earlier, indicating a need for ongoing vigilance in credit risk management.

Looking ahead, First Mid Bancshares remains optimistic about its growth trajectory, bolstered by the integration of Two Rivers and a strong capital position. The company maintains regulatory capital ratios above the required minimums, with a Tier 1 capital ratio of 13.57% as of March 31, 2026. Management continues to focus on enhancing operational efficiencies and expanding its market presence while navigating the challenges posed by economic conditions and interest rate fluctuations.