Key Highlights

  • Record quarterly Net Income of $33.3 million, or $1.25 diluted EPS, with return on average Assets of 1.45%
  • Announced pending Acquisition of Evergreen Bancshares to deepen Midwest presence and pass $10B asset threshold
  • Deposits grew $44.2 million sequentially to $7.62 billion; Money Market accounts increased $198.8 million in the quarter
  • Board declared quarterly Dividend of $0.26 per share; company also agreed to acquire Winship Farm Management for agricultural banking expansion

First Mid Bancshares, Inc. (NASDAQ:FMBH), a diversified financial services company based in Mattoon, Illinois, delivered record quarterly Earnings in Q3 2026, with net income of $33.3 million, or $1.25 diluted earnings per share. The results included a return on average assets of 1.45% and represented the company's highest-ever quarterly earnings level. Concurrent with reporting results, First Mid announced the pending acquisition of Evergreen Bancshares, Inc. and its Subsidiary American Bank of Freedom, a transaction intended to deepen the company's footprint across Missouri, Illinois, and Indiana while enabling passage of the $10 billion total assets threshold.

Net Interest Income and Margin Performance

Net interest income for the quarter was $79.4 million, a modest $0.3 million decline from Q2 2026, as higher Loan payoff activity and increased funding costs offset the benefit from growing earning assets. The net interest margin on a tax-equivalent basis was 3.76%, down 3 basis points sequentially, reflecting competitive deposit pricing and rate movement effects. Interest income increased $1.8 million quarter-over-quarter, while interest expense grew $2.1 million. Accretion income contributed $3.8 million during the period, consistent with Q2. Compared to Q3 2025, net interest income grew $13.0 million, or 19.6%, reflecting organic asset growth and the prior-year Two Rivers Bank & Trust acquisition.

Deposits, Loans, and Asset Quality

Total deposits increased $44.2 million during the quarter to $7.62 billion, with money market accounts posting the largest sequential gain of $198.8 million. Total loans declined $85.8 million to $6.85 billion, driven by elevated payoff activity, particularly in commercial real estate, following the Collateral sale associated with a multi-location business. Asset quality improved, with total criticized assets declining $45.9 million as special mention loans fell $37.6 million and substandard loans declined $8.3 million. Non-Performing Loans edged up $1.8 million to $43.1 million, and the allowance for Credit losses of $86.5 million covered non-performing loans at 201%. Net charge-offs for the period were minimal at $0.2 million.

Strategic Expansion and Revenue Diversification

First Mid announced two strategic additions during and shortly after the quarter. The pending Evergreen Bancshares acquisition is intended to move the company past the $10 billion asset regulatory threshold, a milestone that typically unlocks additional strategic flexibility for larger commercial banks. Separately, the company agreed to acquire Winship Farm Management in Putnam, Illinois, which is expected to add more than 8,600 acres under agricultural management over the next three years. CEO Matthew Smith framed both moves as part of the company's strategic focus on revenue Diversification and fee Business growth beyond traditional banking activities. Non-interest income was $27.2 million for the quarter, with Wealth Management contributing $7.4 million and insurance commissions $7.5 million.

First Mid Bancshares's record Q3 earnings reflect the compounding benefits of its disciplined acquisition strategy, diversified revenue streams, and organic Balance Sheet growth. With the Evergreen transaction pending and an expanded agricultural services footprint in development, the company is positioning to cross the $10 billion asset threshold while sustaining its track record of earnings consistency.