First Mid Bancshares, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income of $33.3 million ($1.25 diluted EPS) for the quarter ended September 30, 2026, compared to $22.5 million ($0.94 diluted EPS) in the same period in 2025.
• Adjusted quarterly net income was $33.6 million ($1.26 diluted EPS).
• Net interest income was $79.4 million, a decrease of $0.3 million from Q2 2026 but an increase of $13.0 million (19.6%) from Q3 2025.
• Net interest margin on a tax-equivalent basis was 3.76%, a decrease of 3 basis points from the prior quarter.
• Non-interest income was $27.2 million, compared to $28.8 million in Q2 2026 and $22.9 million in Q3 2025.
• Non-interest expense totaled $65.0 million, a decrease from $70.6 million in Q2 2026, primarily due to lower one-time merger-related costs.
• Efficiency ratio was 56.13%, compared to 54.39% in the prior quarter and 58.75% in Q3 2025.
• Return on average assets was 1.45%, up from 1.20% in Q2 2026 and 1.17% in Q3 2025.
• Return on average common equity was 12.07%.
• Total loans were $6.85 billion, a quarterly decrease of $85.8 million.
• Total deposits were $7.62 billion, a quarterly increase of $44.2 million.
• Allowance for credit losses (ACL) was $86.5 million, with an ACL to total loans ratio of 1.26%.
• Net charge-offs were $0.2 million for the quarter.

Guidance and Future Outlook:

• The Company expects to reinvest $175.8 million in cash from the sale of investment securities at higher rates, with an expected earn-back period of less than 2 years.
• Management aims to move past the $10 billion asset threshold following the pending acquisition of Evergreen Bancshares.
• The acquisition of Winship Farm Management is expected to add over 8,600 acres under management over the next 3 years.
• Forward-looking statements indicate risks regarding the integration of Evergreen, regulatory approvals, and interest rate changes.

Business Segments and Product Lines:

• Wealth management revenues were $7.4 million, down $0.8 million from the prior quarter due to seasonality.
• Ag Services revenue was $2.0 million, up from $1.9 million in the prior quarter and $1.8 million in Q3 2025.
• Insurance commissions were $7.5 million, down $1.3 million from the prior quarter due to seasonality but up $0.4 million from Q3 2025.
• Money market deposits grew by $198.8 million, driven by a product refresh and marketing efforts.
• The loan portfolio decrease was primarily in commercial real estate loans due to collateral sales and payoffs.

Market and Competitive Landscape:

• The pending acquisition of Evergreen Bancshares and its subsidiary American Bank of Freedom will extend presence in Missouri, Illinois, and Indiana.
• Deposit pricing competition and overall rate movements contributed to an increase in the average cost of funds.
• The Company operates as a $9.4 billion community-focused organization with locations in Illinois, Missouri, Texas, Wisconsin, and Iowa.

Risks and Challenges:

• Loan growth was pressured by higher payoff activity from customer collateral sales.
• The cost of funding increased due to rate movements and deposit pricing competition.
• Unrealized losses in the investment portfolio increased by $32.3 million, contributing to a decrease in tangible book value per share.
• Risks associated with the Evergreen acquisition include potential delays, higher integration costs, and failure to obtain regulatory or shareholder approvals.

Management Commentary and Tone:

• CEO Matthew Smith described the period as "strong" with "record high quarter of earnings" and "strong asset quality."
• Management highlighted a strategic focus on revenue diversification and fee business growth.
• Smith expressed excitement about welcoming Evergreen employees and customers to the First Mid family.

Other Key Points:

• The Board declared a regular quarterly dividend of $0.26 per share, payable on December 1, 2026.
• The Company completed the sale of investment securities with a weighted average yield of 1.51% in late October 2026 for a loss of $14.8 million, generating $175.8 million in cash.
• The Company paid off $10.0 million of subordinated debt using cash on hand during the quarter.
• Capital levels remained above "well capitalized" thresholds, with a Total capital to risk-weighted assets ratio of 15.79%.
• Tangible book value per share decreased $0.06 (0.2%) to $31.09.