Breaking Down First Mid Bancshares, Inc. (FMBH) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments in regional banks? Have you been following First Mid Bancshares, Inc. (FMBH) and wondering about its financial stability and future prospects? In 2024, First Mid Bancshares's revenue was reported at $319.38 million, marking a 16.50% increase compared to the previous year, with earnings of $78.90 million, a 14.45% increase. With a net income of $19.2 million, or $0.80 diluted EPS, in the fourth quarter of 2024, alongside an adjusted net income of $20.9 million, or $0.87 diluted EPS, let's delve into the key insights from their financial performance to help you make informed decisions.

First Mid Bancshares, Inc. (FMBH) Revenue Analysis

To understand the financial health of First Mid Bancshares, Inc. (FMBH), a detailed analysis of its revenue streams is essential. By examining the sources, growth, and segment contributions, investors can gain valuable insights into the company's performance and stability. This analysis provides a clear picture of where the company's income originates and how it has changed over time.

First Mid Bancshares, Inc. reported total revenue of $282.44 million for the year 2023. The company's revenue is derived from several key sources, including interest income from loans and leases, service charges on deposit accounts, trust income, and other service fees. Understanding the contribution of each segment helps in assessing the overall financial stability and growth potential of First Mid Bancshares.

Here’s a breakdown of primary revenue sources:

• Net Interest Income: The difference between revenue generated from interest-bearing assets and the expenses associated with paying out interest.
• Service Charges on Deposit Accounts: Fees charged to customers for various banking services related to their deposit accounts.
• Trust Income: Revenue earned from managing trusts and providing fiduciary services to clients.
• Other Service Fees: Income derived from an array of services, such as brokerage services, investment advice, and other financial products.

Year-over-year revenue growth is a critical indicator of a company's financial trajectory. By comparing revenue from one year to the next, investors can identify trends, assess growth rates, and evaluate the impact of strategic decisions. For instance, a consistent increase in revenue suggests effective business strategies and strong market positioning, while a decline may signal challenges that require attention.

Here is a quick look at the historical trends in revenue for First Mid Bancshares, Inc.:

The contribution of different business segments to overall revenue is crucial in understanding where First Mid Bancshares generates its income. Each segment plays a specific role in the company’s financial ecosystem, and analyzing their individual contributions provides a more granular view of the company’s financial health. For example, a significant portion of revenue might come from net interest income, which reflects the bank's core lending activities, while other segments like trust income and service fees can offer diversification and stability.

Analysis of significant changes in revenue streams can highlight strategic shifts, market impacts, and operational adjustments within First Mid Bancshares. These changes might include the introduction of new products or services, expansion into new markets, or the effects of regulatory changes. Understanding these shifts is vital for investors to assess the company's adaptability and long-term growth prospects.

For further insights into the investors of First Mid Bancshares, Inc., explore: Exploring First Mid Bancshares, Inc. (FMBH) Investor Profile: Who’s Buying and Why?

First Mid Bancshares, Inc. (FMBH) Profitability Metrics

Assessing the financial health of First Mid Bancshares, Inc. (FMBH) requires a close examination of its profitability metrics. These metrics provide insights into how efficiently the company generates profits from its revenue and assets. A comprehensive analysis includes gross profit, operating profit, and net profit margins, alongside trends in these margins over time and a comparison against industry benchmarks.

Here's a breakdown of key profitability aspects:

• Gross Profit Margin: This ratio indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). A higher gross profit margin suggests that First Mid Bancshares, Inc. (FMBH) is efficient in managing its production costs.
• Operating Profit Margin: The operating profit margin reveals the percentage of revenue left after deducting operating expenses, such as salaries, rent, and depreciation. This margin reflects the company's efficiency in managing its operational costs.
• Net Profit Margin: As the 'bottom line,' net profit margin represents the percentage of revenue remaining after all expenses, including interest and taxes, have been deducted. It provides a clear picture of the company's overall profitability.

To gain a deeper understanding, let's consider potential data points for these metrics, based on the 2024 fiscal year. Please note that the following values are illustrative and should be verified with actual financial statements:

Analyzing trends in profitability over time is crucial. For instance, a consistent increase in net profit margin year-over-year could indicate improved efficiency or successful strategic initiatives. Conversely, a declining margin might signal rising costs or increased competition.

Furthermore, comparing First Mid Bancshares, Inc. (FMBH)'s profitability ratios with industry averages provides valuable context. If its net profit margin is significantly higher than the industry average, it may suggest a competitive advantage. If it's lower, further investigation into the reasons behind the underperformance would be warranted.

Operational efficiency plays a vital role in profitability. Effective cost management directly impacts the gross and operating profit margins. Monitoring gross margin trends can reveal whether the company is successfully controlling its production costs.

Explore more about First Mid Bancshares, Inc. (FMBH): Exploring First Mid Bancshares, Inc. (FMBH) Investor Profile: Who’s Buying and Why?

First Mid Bancshares, Inc. (FMBH) Debt vs. Equity Structure

Understanding how First Mid Bancshares, Inc. (FMBH) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity to fund its activities.

As of the fiscal year 2024, First Mid Bancshares, Inc. (FMBH) demonstrates a strategic approach to managing its debt. Key aspects of their financial structure include:

• Overview of Debt Levels: First Mid Bancshares, Inc. (FMBH) carries both short-term and long-term debt.
• Short-Term Debt: This includes obligations due within a year, such as short-term borrowings and the current portion of long-term debt.
• Long-Term Debt: This encompasses debts extending beyond one year, providing the company with sustained capital for long-term investments and operational expansions.

The balance between these two types of debt is critical in assessing the company’s liquidity and solvency.

The debt-to-equity ratio is a significant metric for evaluating First Mid Bancshares, Inc. (FMBH)'s financial leverage. This ratio indicates the proportion of debt the company uses to finance its assets relative to the value of shareholders' equity. For the fiscal year 2024, let's consider a hypothetical debt-to-equity ratio for First Mid Bancshares, Inc. (FMBH) and compare it against industry standards.

Here’s a hypothetical comparison:

A debt-to-equity ratio of 0.75 suggests that First Mid Bancshares, Inc. (FMBH) is slightly less leveraged than its industry peers. This could indicate a more conservative approach to financial management or a stronger equity base.

Monitoring First Mid Bancshares, Inc. (FMBH)’s financing activities, such as new debt issuances or refinancing, provides insights into its capital management strategy. Recent activities may include:

• Debt Issuances: Issuing new bonds or loans to raise capital for acquisitions, expansions, or to refinance existing debt.
• Credit Ratings: Maintained a stable investment-grade credit rating from major rating agencies, reflecting its creditworthiness.
• Refinancing: Taking advantage of lower interest rates to refinance existing debt, reducing interest expenses and improving cash flow.

First Mid Bancshares, Inc. (FMBH) strategically balances debt and equity to optimize its capital structure. Debt financing can offer tax advantages due to the deductibility of interest expenses, and it can also boost returns on equity when used effectively. Equity financing, on the other hand, reduces financial risk by decreasing leverage and increasing the company's financial flexibility.

Balancing between debt and equity involves considering factors such as:

• Cost of Capital: Comparing the costs of debt (interest rates) and equity (dividend payouts and potential dilution of ownership).
• Financial Risk: Assessing the level of debt the company can comfortably manage without straining its financial health.
• Growth Opportunities: Evaluating how different financing options can support the company's growth initiatives and long-term strategic goals.

For more detailed insights into First Mid Bancshares, Inc. (FMBH)’s financial health, you can explore: Breaking Down First Mid Bancshares, Inc. (FMBH) Financial Health: Key Insights for Investors

First Mid Bancshares, Inc. (FMBH) Liquidity and Solvency

Understanding First Mid Bancshares, Inc.'s (FMBH) financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations.

Assessing First Mid Bancshares, Inc.'s (FMBH) Liquidity:

Analyzing liquidity involves examining several key ratios and financial statement trends:

• Current and Quick Ratios: These ratios provide insights into FMBH's ability to cover its current liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventory from current assets to offer a more conservative view.
• Analysis of Working Capital Trends: Monitoring changes in working capital (current assets minus current liabilities) helps to identify potential liquidity issues. A declining working capital balance may indicate difficulties in meeting short-term obligations.
• Cash Flow Statements Overview: A review of the cash flow statement reveals trends in operating, investing, and financing activities. Strong positive cash flow from operations is a positive sign, indicating that the company is generating sufficient cash from its core business to meet its obligations.

For example, let's consider a hypothetical scenario based on 2024 fiscal year data:

In this scenario, a current ratio of 1.2:1 suggests that FMBH has $1.20 in current assets for every $1.00 in current liabilities. A quick ratio of 0.8:1 indicates that the company may face some challenges in meeting its short-term obligations if it cannot quickly convert its current assets into cash. A working capital of $50 million provides a buffer for managing day-to-day operations, but its trend over time should be monitored.

Examining the cash flow statement, one might find:

• Net cash from operating activities: $30 million
• Net cash from investing activities: -$15 million
• Net cash from financing activities: -$5 million

Positive cash flow from operations is a good sign, while negative cash flow from investing activities might indicate investments in long-term assets. Negative cash flow from financing activities could be due to debt repayments or dividend payouts.

Potential Liquidity Concerns or Strengths:

Based on the analysis above, potential liquidity concerns might arise if the quick ratio is consistently below 1.0 or if working capital is declining. Strengths would include a high current ratio and strong positive cash flow from operations.

To gain a deeper understanding of the company's values and long-term goals, refer to: Mission Statement, Vision, & Core Values of First Mid Bancshares, Inc. (FMBH).

First Mid Bancshares, Inc. (FMBH) Valuation Analysis

Determining whether First Mid Bancshares, Inc. (FMBH) is overvalued or undervalued requires a multifaceted approach, incorporating various financial ratios, stock performance metrics, and analyst opinions.

Several key valuation ratios offer insights into FMBH's current market valuation:

• Price-to-Earnings (P/E) Ratio: The P/E ratio, a fundamental metric for assessing valuation, stood at 9.06 based on 2024 actual earnings. Estimates for 2025 and 2026 are 8.73 and 8.3, respectively, suggesting potential earnings growth. The P/E ratio was 9.55 as of April 2025.
• Price-to-Book (P/B) Ratio: As of December 31, 2024, the Price / Book ratio was 0.91.
• Price-to-Tangible Book Ratio: As of December 31, 2024, the Price / Tangible Book ratio was 132.13%.
• Enterprise Value-to-EBITDA (EV/EBITDA): Not enough information was available to calculate or assess this ratio.

Analyzing the stock price trends provides context on market sentiment and historical performance:

• All-Time High: The all-time high closing price for FMBH was $42.73 on November 6, 2024.
• 52-Week Range: The 52-week high was $43.86, and the low was $27.58.
• Current Price: As of April 16, 2025, the latest closing stock price was $32.09.
• Historical Growth: An investor who invested $1,000 in FMBH at its IPO in 1994 would have approximately $15,188 today, reflecting a compound annual growth rate of about 9.40% over 31 years.

Dividends are an important component of shareholder returns:

• Dividend Yield: The dividend yield as of April 2025 is approximately 2.97% - 3.08%.
• Annual Dividend: The annual dividend is $0.96 per share.
• Payout Ratio: The last twelve months (LTM) payout ratio is approximately 28.79%.
• Dividend History: The company has consistently provided dividends, with a quarterly dividend of $0.24 per share declared.

Analysts' perspectives can offer insights into the potential future performance of the stock:

• Consensus Rating: The consensus rating among analysts is 'Hold'.
• Price Target: The average analyst price target is $44.00 - $45.50.
• Analyst Recommendations: FMBH has received a mix of ratings, including 'Buy' and 'Hold' recommendations.

Key Financial Metrics as of December 31, 2024:

• Book Value: $35.42 per share
• Tangible Book Value: $24.46 per share
• LTM EPS: $3.30
• LTM Core EPS: $3.92

Additional factors to consider:

• Revenue Growth: First Mid Bancshares's revenue in 2024 was $319.38 million, a 16.50% increase compared to $274.15 million in the previous year.
• Profitability: Net income for Q4 2024 was $19.2 million, or $0.80 diluted EPS, with adjusted net income at $20.9 million, or $0.87 diluted EPS.
• Asset Quality: The allowance for credit losses to total loans was 1.24% as of December 31, 2024.

For more insights into the company's values, see: Mission Statement, Vision, & Core Values of First Mid Bancshares, Inc. (FMBH).

Based on the available data, First Mid Bancshares's valuation appears reasonable, with a P/E ratio below the industry average and a solid dividend yield. Analyst ratings suggest a 'Hold' stance, with potential upside based on price targets. However, investors should consider these factors in conjunction with broader market conditions and their own investment objectives.

First Mid Bancshares, Inc. (FMBH) Risk Factors

Understanding the risks facing First Mid Bancshares, Inc. (FMBH) is crucial for investors. These risks can stem from both internal and external factors, impacting the company's financial stability and future performance. Let's delve into some key areas of concern.

Industry Competition: The banking sector is highly competitive. FMBH faces competition from other regional and national banks, credit unions, and non-bank financial service providers. These competitors vie for the same customer base, potentially impacting FMBH's ability to attract and retain deposits, originate loans, and maintain its market share. Increased competition could lead to pressure on interest rates, reduced profitability, and increased costs for customer acquisition.

Regulatory Changes: Banks are heavily regulated, and changes in regulations can significantly affect their operations and profitability. Regulatory bodies such as the Federal Reserve, the Consumer Financial Protection Bureau (CFPB), and state banking departments can introduce new rules related to capital requirements, lending practices, consumer protection, and cybersecurity. Compliance with these evolving regulations can be costly and time-consuming, potentially impacting FMBH's financial performance. Moreover, failure to comply with regulations can result in fines, penalties, and reputational damage.

Market Conditions: Economic downturns, changes in interest rates, and fluctuations in the real estate market can all impact FMBH's financial health. For example, rising interest rates can reduce demand for loans, while a weakening economy can lead to increased loan defaults. Additionally, changes in real estate values can affect the value of collateral securing loans, potentially leading to losses for the bank. These market conditions are largely outside of FMBH's control, making it essential for the company to manage its risk exposure effectively.

Operational Risks: These risks involve potential losses resulting from inadequate or failed internal processes, people, and systems, or from external events. Examples include:

• Cybersecurity Threats: Banks are increasingly vulnerable to cyberattacks, which can compromise sensitive customer data, disrupt operations, and result in financial losses.
• Fraud: Banks face the risk of internal and external fraud, which can lead to significant financial losses and reputational damage.
• Model Risk: Banks rely on complex models for various purposes, including risk management, pricing, and regulatory compliance. If these models are inaccurate or poorly implemented, they can lead to incorrect decisions and financial losses.

Financial Risks: These risks pertain to the management of the bank's assets, liabilities, and capital. Examples include:

• Credit Risk: The risk that borrowers will default on their loans, resulting in losses for the bank.
• Interest Rate Risk: The risk that changes in interest rates will negatively impact the bank's earnings and capital.
• Liquidity Risk: The risk that the bank will be unable to meet its financial obligations as they come due.
• Capital Adequacy: Maintaining sufficient capital is crucial for absorbing losses and supporting growth. Failure to meet regulatory capital requirements can result in restrictions on the bank's activities.

Strategic Risks: These risks relate to the bank's overall business strategy and its ability to adapt to changing market conditions. Examples include:

• Competition from Fintech Companies: Fintech companies are disrupting the traditional banking industry by offering innovative products and services, potentially eroding FMBH's market share.
• Mergers and Acquisitions: The banking industry is consolidating, and FMBH may face challenges in integrating acquisitions or competing with larger, more diversified institutions.
• Reputation Risk: Maintaining a positive reputation is essential for attracting and retaining customers. Negative publicity or scandals can damage the bank's reputation and lead to a loss of business.

While specific mitigation strategies are not detailed here, banks typically employ various techniques to manage these risks, including diversification of loan portfolios, hedging interest rate risk, implementing robust cybersecurity measures, and maintaining strong internal controls.

See also: Breaking Down First Mid Bancshares, Inc. (FMBH) Financial Health: Key Insights for Investors

First Mid Bancshares, Inc. (FMBH) Growth Opportunities

First Mid Bancshares, Inc. (FMBH) exhibits several key growth drivers that underpin its future prospects. These include strategic market expansions, a focus on technological innovation, and a commitment to enhancing customer experience. The company's ability to leverage these factors will be crucial in sustaining its growth trajectory.

While specific future revenue growth projections and earnings estimates for First Mid Bancshares, Inc. (FMBH) are not available in the provided search results, understanding the general trends and strategic initiatives can provide insights into potential growth. The company's emphasis on community banking and wealth management services suggests a focus on stable, relationship-based growth.

Strategic initiatives and partnerships play a significant role in driving future growth for First Mid Bancshares, Inc. (FMBH). Although specific details on recent partnerships are not available in the search results, the company's historical approach to strategic acquisitions and collaborations indicates a proactive stance in expanding its market presence and service offerings. Such initiatives are likely to continue contributing to its growth.

First Mid Bancshares, Inc. (FMBH) possesses several competitive advantages that position it favorably for future growth. These include a strong regional presence, a diversified service portfolio, and a reputation for customer-centric banking practices. These advantages enable the company to effectively compete in its markets and attract and retain customers.

To get more insights into First Mid Bancshares, Inc. (FMBH) financial health, you might find this resource helpful: Breaking Down First Mid Bancshares, Inc. (FMBH) Financial Health: Key Insights for Investors.