First Mid Bancshares stock: Q3 profit rises as Evergreen deal advances

First Mid Bancshares reported record third-quarter earnings on Thursday, October 29, 2026, while announcing a planned acquisition that would broaden its Midwest banking footprint. The company said in its third-quarter results release that net income reached $33.3 million, or $1.25 in diluted earnings per share, for the period ended September 30.

Record earnings meet expansion plans

Adjusted net income was $33.6 million, or $1.26 per diluted share. Net interest income rose to $79.4 million, up 19.6 percent from a year earlier, although the tax-equivalent net interest margin slipped to 3.76 percent as funding costs and deposit competition increased.

Loans ended the quarter at $6.85 billion, down $85.8 million from the prior quarter, while deposits increased by $44.2 million to $7.62 billion. The company said asset quality improved, with criticized assets declining by $45.9 million and net charge-offs remaining negligible.

Evergreen deal widens regional reach

First Mid agreed to acquire Evergreen Bancshares, the parent of American Bank of Freedom, in a stock-and-cash transaction. Evergreen shareholders are set to receive 0.4081 First Mid shares plus $5.20 in cash for each Evergreen share. The deal is expected to close in the first quarter of 2027, subject to regulatory and shareholder approvals, with the bank merger and systems conversion targeted for the second quarter.

Management said the transaction would deepen First Mid's presence in Missouri and Illinois and establish a full-service banking presence in the greater Indianapolis market. The company also agreed to acquire Winship Farm Management, a move expected to add more than 8,600 acres under management over the next three years.

Capital allocation remains in focus

First Mid sold investment securities on October 26 for $175.8 million in cash, recognizing a $14.8 million loss that will affect fourth-quarter results. Management expects to reinvest the proceeds at higher rates and has projected an earn-back period of less than two years. The board declared a quarterly dividend of $0.26 per share, payable December 1 to shareholders of record on November 16.

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Community banking with diverse services

First Mid Bancshares is a Mattoon, Illinois-based financial holding company serving commercial, retail and agricultural clients. Its operations include community banking, wealth management, brokerage, agricultural services and insurance across Illinois, Missouri, Texas, Wisconsin and Iowa, with a loan production office near Indianapolis.

The company operates as a regional, community-focused banking group alongside publicly traded peers such as HBT Financial and Peoples Bancorp. Its planned Evergreen transaction is intended to extend its geographic reach while moving the organization beyond the $10 billion asset threshold.