FMBH Stock Forecast & Price Target

First Mid Bancshares Inc. has demonstrated a strong financial performance with net interest income increasing by approximately $1.1 million, buoyed by a combination of margin expansion and a 4% annualized growth in loans. The company's total interest-bearing deposits rose by 2.3% year-over-year, and solid internal capital generation has led to a notable increase in tangible book value (TBV) and tangible common equity (TCE), reflecting a healthy capital position. Additionally, First Mid Bancshares has achieved consistent loan growth across several segments, including commercial real estate and agriculture, contributing to a positive outlook for the company's continued expansion and stability in an evolving banking landscape.

First Mid Bancshares experienced a modest decline in pre-tax, pre-provision net revenue, which fell approximately 1% short of consensus expectations, indicating potential challenges in revenue generation. Additionally, while credit metrics such as nonperforming assets remained relatively benign, a recent deterioration in credit quality linked to an organic farming credit further contributes to concerns about the company's overall risk profile. The company also reported a decrease in insurance revenue and trimmed its earnings per share estimates for the upcoming quarters, reflecting anticipated increases in operating expenses, which may hinder future profitability.