First Mid Bancshares, Inc. (FMBH)

First Mid Bancshares, Inc. (FMBH) Financial Services Profile

First Mid Bancshares, Inc. (FMBH) is a Midwest-based financial holding company offering diverse banking and wealth management services. With a strong regional presence across Illinois, Missouri and Indiana, FMBH focuses on community banking, commercial lending, and insurance solutions, demonstrating a commitment to local markets and customer relationships.

What Is the Investment Thesis for FMBH?

First Mid Bancshares presents a compelling investment case based on its established regional presence, diversified revenue streams, and attractive valuation metrics. With a market capitalization of $1.30B and a P/E ratio of 11.3, the company appears undervalued compared to its peers. A profit margin of 21.0% and a gross margin of 65.9% indicate strong profitability and efficient operations. The dividend yield of 2.25% provides an additional incentive for investors. Growth catalysts include expansion of wealth management services and strategic acquisitions in adjacent markets. Potential risks include interest rate sensitivity and increased competition from larger national banks.

Based on FMP financials and quantitative analysis

FMBH Key Highlights

• Market capitalization of $1.30B, reflecting a substantial regional banking presence.
• P/E ratio of 11.3, suggesting a potentially undervalued stock compared to industry peers.
• Profit margin of 21.0%, indicating strong profitability and efficient cost management.
• Gross margin of 65.9%, showcasing effective revenue generation relative to direct costs.
• Dividend yield of 2.25%, providing a steady income stream for investors.

Who Are FMBH's Competitors?

FMBH is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FMBH's Key Strengths?

• Strong regional presence in Illinois and Missouri.
• Diversified revenue streams from banking, wealth management, and insurance.
• Experienced management team.
• Long-standing customer relationships.

What Are FMBH's Weaknesses?

• Limited geographic diversification.
• Exposure to interest rate risk.
• Competition from larger national banks.
• Dependence on local economic conditions.

What Could Drive FMBH Stock Higher?

• Expansion of wealth management services to attract new clients and increase assets under management.
• Implementation of digital banking technologies to enhance customer experience and reduce operating costs.
• Potential strategic acquisitions of smaller banks or financial services companies in adjacent markets.
• Growth of commercial lending portfolio by targeting small and medium-sized businesses.
• Expansion of insurance product offerings to generate additional fee income.

What Are the Key Risks for FMBH?

• Financial-distress signal — its Altman Z-Score of -0.66 sits in the distress zone (elevated bankruptcy risk).
• Economic downturns and recessionary pressures impacting loan demand and credit quality.
• Exposure to interest rate risk, which can affect net interest margin and profitability.
• Increased competition from larger national banks and fintech companies.
• Cybersecurity threats and data breaches compromising customer data and reputation.
• Regulatory changes and compliance costs impacting profitability and operations.

What Are the Growth Opportunities for FMBH?

• Expansion of Wealth Management Services: First Mid can significantly grow its revenue by expanding its wealth management services. The increasing demand for financial planning, investment advice, and estate planning among individuals and families presents a substantial market opportunity. By offering personalized wealth management solutions and leveraging its existing customer base, First Mid can attract new clients and increase its assets under management. This expansion can be achieved through strategic acquisitions of wealth management firms or by hiring experienced financial advisors.
• Strategic Acquisitions: First Mid can pursue strategic acquisitions of smaller community banks or financial services companies in adjacent markets to expand its geographic footprint and market share. These acquisitions can provide access to new customer segments, diversify revenue streams, and create synergies through cost savings and operational efficiencies. The company should focus on acquiring companies with strong local reputations, complementary product offerings, and experienced management teams.
• Digital Transformation: Investing in digital technologies to enhance its online and mobile banking platforms can attract and retain customers. By offering user-friendly digital tools and services, First Mid can improve customer satisfaction, reduce operating costs, and compete more effectively with larger national banks. This includes implementing advanced cybersecurity measures to protect customer data and maintain trust.
• Commercial Lending Growth: First Mid can focus on growing its commercial lending portfolio by targeting small and medium-sized businesses (SMBs) in its target markets. By providing customized financing solutions and building strong relationships with local businesses, First Mid can increase its loan volume and generate higher interest income. This includes offering specialized lending programs for specific industries, such as agriculture and healthcare.
• Insurance Product Expansion: The company can expand its insurance product offerings to include a wider range of personal and commercial lines. By partnering with leading insurance providers and training its employees to sell insurance products, First Mid can generate additional fee income and provide a more comprehensive suite of financial services to its customers. This includes offering specialized insurance solutions for high-net-worth individuals and businesses.

What Opportunities Does FMBH Have?

• Expansion into new markets through strategic acquisitions.
• Growth of wealth management services.
• Increased adoption of digital banking technologies.
• Expansion of commercial lending to small and medium-sized businesses.

What Threats Does FMBH Face?

• Economic downturns and recessionary pressures.
• Increased regulatory scrutiny.
• Cybersecurity threats and data breaches.
• Changes in interest rates.

What Are FMBH's Competitive Advantages?

• Strong regional presence and brand recognition.
• Long-standing customer relationships.
• Diversified product and service offerings.
• Experienced management team.
• Community-focused approach.

What Does FMBH Do?

Founded in 1865 and headquartered in Mattoon, Illinois, First Mid Bancshares, Inc. has evolved from a local community bank into a diversified financial services provider. Originally known as First Mid-Illinois Bancshares, Inc., the company rebranded in 2019 to reflect its expanding geographic footprint and service offerings. Today, First Mid operates through a network of 52 banking centers in Illinois and 14 offices in Missouri, along with a loan production office in Indiana. The company's core business revolves around providing community banking products and services to commercial, retail, and agricultural customers. These services include accepting various deposit products like demand deposits, savings accounts, money market deposits, and time deposits. First Mid also offers a comprehensive suite of loan products, including commercial real estate, commercial and industrial, agricultural and agricultural real estate, residential real estate, and consumer loans. Beyond traditional banking, First Mid provides wealth management services, encompassing estate planning, investment, farm management, and brokerage services for individuals, as well as employee benefit services for businesses. The company further extends its offerings to include property and casualty, senior insurance products, group medical insurance for businesses, and personal lines insurance for individuals, positioning itself as a full-service financial solutions provider for its customer base.

What Products and Services Does FMBH Offer?

• Provides community banking products and services.
• Offers commercial, retail, and agricultural banking solutions.
• Accepts deposits, including demand, savings, and money market accounts.
• Provides commercial real estate, commercial and industrial, and agricultural loans.
• Offers residential real estate and consumer loans.
• Provides wealth management services, including estate planning and investment management.
• Offers insurance products, including property and casualty, and senior insurance.

How Does FMBH Make Money?

• Generates revenue through interest income from loans.
• Earns fees from wealth management and brokerage services.
• Receives premiums from insurance products.
• Collects service charges on deposit accounts.

What Industry Does FMBH Operate In?

First Mid Bancshares operates within the regional banking sector, which is characterized by intense competition and evolving customer preferences. The industry is undergoing digital transformation, with increasing adoption of online and mobile banking services. Regulatory compliance and cybersecurity are critical concerns for regional banks. The market is influenced by interest rate fluctuations and economic cycles. First Mid's focus on community banking and wealth management positions it to capitalize on the demand for personalized financial services in its target markets. The company competes with both larger national banks and smaller community banks for market share.

Who Are FMBH's Key Customers?

• Commercial businesses of varying sizes.
• Retail customers seeking personal banking services.
• Agricultural businesses and farmers.
• Individuals seeking wealth management and investment advice.
• Businesses seeking employee benefit services.

How First Mid Bancshares, Inc. Is Valued

First Mid Bancshares, Inc. carries a market capitalization of $1.30B, placing it in the small-cap category. Relative to its peer group, FMBH's quantitative score of 74/100 is roughly in line with the peer average of 65/100.

Company Profile

First Mid Bancshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Mattoon, US. The company is led by CEO Joseph R. Dively. FMBH has traded publicly since 1999.

ROE 10%Key Financial Metrics

Return on equity for First Mid Bancshares, Inc. stands at 9.9%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. FMBH trades at a trailing price-to-earnings ratio of 11.32, below the Financial Services sector average of ~18x. Its free cash flow yield is 8.3%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.09 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 8.5%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 5/9Financial Health

First Mid Bancshares, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of -0.66 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project First Mid Bancshares, Inc. revenue of about $424.9M for fiscal 2026, with EPS near $4.38. The estimate reflects 5 contributing analysts.

FMBH Financials

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Latest First Mid Bancshares, Inc. Analysis

First Mid Bancshares, Inc. Financial Services Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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