# First Mid Bancshares, Inc

> Clarifo company profile — qualitative business description generated from
> the company's filings. Financial statements, charts and ratios are
> available on Clarifo (https://www.clarifo.com/fi/companies/First Mid Bancshares, Inc).

## Overview

First Mid Bancshares, Inc. is a U.S. financial holding company centered on community banking through First Mid Bank & Trust, with additional businesses in insurance brokerage, wealth management, trust, farm services, and retirement planning. Its model combines relationship-based lending and deposit gathering with fee income from insurance and wealth services, and it has expanded through both organic growth and acquisitions.

## Products & services

• Commercial and retail banking, including loans and deposits
• Insurance brokerage and employee benefits services
• Wealth management, trust, and retirement planning
• Farm services and brokerage services
• Mortgage banking and ATM/debit card services

- **Community banking** (74%) — Loan origination, deposit accounts, treasury-related services, and other core banking activities.
- **Insurance brokerage** (35%) — Property and casualty, senior insurance, group medical, and personal lines insurance services.
- **Wealth management** (25%) — Trust, estate planning, investment services, retirement planning, and farm management.
- **Fee-based banking services** (15%) — Service charges, ATM/debit card revenue, mortgage banking, and related noninterest income.
- **Other income and treasury items** (6%) — Bank owned life insurance, securities gains/losses, and other miscellaneous income.

- Commercial and retail banking, including loans and deposits
- Insurance brokerage and employee benefits services
- Wealth management, trust, and retirement planning
- Farm services and brokerage services
- Mortgage banking and ATM/debit card services

## Customers

The company serves households, small and mid-sized businesses, farmers, and commercial real estate borrowers across its regional footprint. It also sells insurance and wealth products to individuals, employee benefit clients, and business owners seeking bundled financial services. Cross-selling is important because the bank uses deposit and lending relationships to attach fee-based products over time.

- **Commercial and commercial real estate borrowers** (primary) — Businesses and property owners that borrow for working capital, equipment, and income-producing real estate.
- **Retail and consumer banking customers** (primary) — Individuals and households that use deposits, cards, mortgages, and everyday banking services.
- **Agricultural and farm customers** (secondary) — Farm operators and agribusinesses that need credit, deposit services, and related financial support.
- **Insurance clients** (secondary) — Individuals and businesses buying property and casualty, medical, senior, and personal lines coverage.
- **Wealth management and trust clients** (secondary) — Individuals, families, and employee benefit clients purchasing estate, investment, and retirement services.

- Households using checking, savings, mortgage, and personal banking products
- Small and mid-sized businesses needing operating loans and deposit services
- Commercial real estate borrowers financing income-producing properties
- Farm and agricultural customers seeking seasonal credit and advisory services
- Individuals and business owners buying insurance, trust, and wealth services

## Geography

First Mid’s lending and deposit base is concentrated in the Midwest and nearby regional markets, with loans dispersed primarily across Illinois, the St. Louis metro area, central Missouri, southern Wisconsin, and Texas. These markets matter because the company’s credit performance and deposit growth depend on local economic conditions, especially in commercial real estate and agriculture. The company does not present a country-level revenue split, but its business is overwhelmingly U.S.-based.

- **Illinois** (35%) — Primary lending and deposit market disclosed in MD&A narrative.
- **St. Louis Metro area** (20%) — Key regional market spanning Missouri and Illinois.
- **Central Missouri** (15%) — Regional lending footprint disclosed in MD&A narrative.
- **Southern Wisconsin** (10%) — Regional lending footprint disclosed in MD&A narrative.
- **Texas** (20%) — Additional lending market providing geographic diversification.

- Loans are primarily spread across Illinois and the St. Louis metro area
- Central Missouri and southern Wisconsin are important regional banking markets
- Texas adds geographic diversification to the lending footprint
- Local economic conditions affect credit quality, deposit growth, and loan demand
- Business is U.S.-centric with no disclosed non-U.S. revenue concentration

## Strategy

The company’s strategy is to grow revenue and customer relationships through a mix of organic expansion and acquisitions. It emphasizes cross-selling across banking, insurance, and wealth management, while maintaining a strong balance sheet and disciplined credit standards. Management also highlights cultural fit in acquisitions as a key filter for deals that can add shareholder value.

- **Organic growth in lending and deposits** (short-term) — Core banking profitability depends on expanding customer relationships and funding base.
- **Cross-selling fee-based financial services** (medium-term) — Insurance and wealth management diversify revenue away from spread income.
- **Acquisition-led expansion** (medium-term) — M&A has been a long-running growth lever for scale and market entry.

- Grow loans and deposits organically through relationship banking
- Cross-sell insurance, wealth, and banking products to existing clients
- Use acquisitions to expand footprint and add fee income
- Maintain strong balance sheet and capital discipline
- Focus on cultural fit and shareholder value in M&A

## Risks

The company is exposed to the usual bank risks of credit losses, interest-rate sensitivity, liquidity pressure, and operational or compliance failures. Its loan book is concentrated in commercial real estate, agriculture, and other regional industries, so local economic weakness or falling collateral values could quickly affect asset quality. Fee businesses and acquisitions also add integration, execution, and goodwill impairment risk.

- **Commercial real estate and agricultural concentration** [high] — A large share of loans is secured by real estate and tied to a few industries, increasing sensitivity to local downturns.
- **Interest-rate and funding-cost volatility** [high] — Net interest income depends on the spread between asset yields and deposit/borrowed funding costs.
- **Credit deterioration from regional economic stress** [medium] — The company operates in specific Midwest and regional markets where local stress can affect borrowers.
- **Operational and cyber risk** [medium] — Banking and insurance rely on systems, third parties, and sensitive customer data.
- **Goodwill impairment after acquisitions** [medium] — Acquired businesses may not perform as expected, forcing impairment charges.

- Credit losses could rise if borrowers weaken or collateral values fall
- Commercial real estate and agriculture create industry concentration risk
- Net interest income is sensitive to interest-rate and funding-cost changes
- Liquidity risk matters because deposits and wholesale funding can move quickly
- Operational, cyber, and compliance failures could damage reputation and earnings
- Acquisitions can create integration risk and goodwill impairment exposure

## Accounting

Net interest income is the largest revenue driver, so small changes in loan yields, deposit costs, and balance-sheet mix can materially affect reported results. The company also has meaningful noninterest income from insurance, wealth management, and mortgage banking, where timing and transaction volume can create quarter-to-quarter volatility. Investors should also watch goodwill impairment, fair value marks on securities, and estimates tied to credit losses and FDIC assessments.

- **Allowance for credit losses** — Can materially change provision expense and earnings
- **Goodwill impairment** — Could create a noncash charge if acquired businesses underperform
- **Fair value of securities and other income** — Affects other income and comprehensive income
- **FDIC insurance assessments** — Directly affects noninterest expense
- **Off-balance-sheet commitments** — Affects liquidity planning and credit risk disclosure

- Net interest income depends on rate spreads and balance-sheet mix
- Insurance and wealth fees can shift with transaction timing and client activity
- Securities gains/losses can create volatility in other income
- Allowance for credit losses depends on management estimates and local conditions
- Goodwill impairment is a key judgment after acquisitions
- FDIC assessments and off-balance-sheet commitments affect expense and liquidity

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*Last updated: 2026-09-24T11:41:34.899871+00:00*