FMBH Stock Forecast & Price Target

First Mid Bancshares reported an increase in overall line utilization to 52% as of June 30, compared to 50% at March 31, and saw a notable rise in commercial line utilization to 44%. The company achieved endpoint (EOP) loan growth of 5% on a last quarter annualized (LQA) basis, aligning with its expectations of 4%-6%, while average loans increased significantly by 10% LQA. Moving forward, First Mid Bancshares is projected to sustain this growth trajectory, modeling similar loan growth rates of 4%-5% LQA, which indicates a strong outlook for year-over-year increases in both this year and the next.

The financial outlook for First Mid Bancshares has been negatively impacted by a conservative reduction of the core fee income forecast by 1% for the current year, primarily due to lower projections in wealth management and insurance revenues. This reduction is underscored by a significant decline in wealth management revenue from $9.9 million in the first quarter to $5.4 million, attributed to seasonal factors and a softening market. While there remains a unchanged optimistic outlook for 2026 with +7% growth expected, the short-term challenges highlight vulnerabilities in the company's diverse revenue streams.