First Mid Bancshares Reports $22.2 Million Net Income in Q1 2025

First Mid Bancshares, Inc. reported a net income of $22.2 million for the first quarter of 2025, an increase from $20.5 million in the same period of 2024. This translates to a diluted earnings per share of $0.93, up from $0.86 year-over-year. The company's total interest income for the quarter was $87.6 million, slightly down from $87.7 million in the previous year, while total interest expense decreased to $28.2 million from $32.2 million, resulting in a net interest income of $59.4 million, compared to $55.5 million in the prior year. The net interest margin improved to 3.60%, up from 3.25% in the first quarter of 2024, primarily due to increased yields on earning assets and reduced rates on interest-bearing deposits.

In terms of operational developments, First Mid Bancshares experienced a modest increase in its loan portfolio, which rose to $5.7 billion as of March 31, 2025, compared to $5.7 billion at the end of 2024. The company reported a provision for credit losses of $1.7 million, a significant increase from a release of $357,000 in the same quarter last year. Nonperforming loans totaled $26.6 million, up from $20.1 million a year earlier, indicating a need for closer monitoring of credit quality. The allowance for credit losses stood at $70.1 million, representing 1.23% of total loans.

Strategically, First Mid Bancshares has continued to focus on enhancing its service offerings, with notable increases in wealth management revenues and insurance commissions, which rose to $5.8 million and $9.9 million, respectively. The company also recognized a gain from a death benefit received from bank-owned life insurance, contributing to a total non-interest income of $24.9 million, a slight increase from $24.5 million in the previous year. The company’s employee headcount remained stable, with 1,194 full-time equivalent employees as of March 31, 2025.

Looking ahead, First Mid Bancshares expressed confidence in its capital position, maintaining regulatory capital ratios above the required minimums. The company’s total capital to risk-weighted assets ratio was reported at 15.59%, while the Tier 1 capital ratio was 13.13%. Management remains focused on monitoring economic conditions and credit quality, particularly in the agricultural sector, which represents a significant portion of its loan portfolio. The company anticipates continued growth in its core deposit base and is committed to managing interest rate risk effectively as it navigates the evolving economic landscape.