First Mid-Illinois Bancshares (FMBH) AI Stock Analysis

• Market Cap: $970.71M
• Dividend Yield: 2.43%
• Average Volume (3M): 61.24K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.78
• Revenue Growth: 3.54%
• EPS Growth: 12.23%
• Country: US
• Employees: 1,194
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.94
• Shares Outstanding: 24,003,654
• 10 Day Avg. Volume: 63,307
• 30 Day Avg. Volume: 61,237
• PEG Ratio: 2.52
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 7.33
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 2.89
• Enterprise Value/Gross Profit: 4.39
• Enterprise Value/Ebitda: 10.10
• 1Y Price Target: $48.00
• Price Target Upside: 18.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: $44.00 ▲(8.80% Upside)

The score is driven primarily by solid financial performance (growth, healthy profitability, and strong cash generation) and an attractive valuation (low P/E plus a dividend). Technical signals are weaker near-term (below the 20-day average with low RSI/stochastic), while recent merger approvals provide an incremental positive catalyst.

Positive Factors

Strategic Acquisition

The acquisition of Two Rivers Financial Group will expand First Mid's regional presence and customer base, enhancing its competitive position in the Midwest.

Profitability

High margins indicate efficient operations and a strong ability to generate profits, supporting long-term financial health and shareholder returns.

Board Expansion

Adding experienced leadership can enhance governance and strategic decision-making, supporting sustainable growth and risk management.

Negative Factors

Cash Flow Decline

Declining free cash flow growth may impact the company's ability to reinvest in the business and meet financial obligations, posing long-term risks.

Debt Levels

Rising debt levels could strain financial flexibility and increase risk, potentially affecting future growth and stability.

Cash Conversion Challenges

Challenges in converting income into cash may limit operational flexibility and ability to fund growth initiatives, impacting long-term performance.

First Mid-Illinois Bancshares Business Overview & Revenue Model

Company Description

First Mid Bancshares, Inc., a financial holding company, provides community banking products and services to commercial, retail, and agricultural customers in the United States. It accepts various deposit products, such as demand deposits, savings accounts, money market deposits, and time deposits. The company's loan products include commercial real estate, commercial and industrial, agricultural and agricultural real estate, residential real estate, and consumer loans; and other loans comprising loans to municipalities to support community projects, such as infrastructure improvements or equipment purchases. It also offers wealth management services, which include estate planning, investment, and farm management and brokerage services for individuals; and employee benefit services for business enterprises. In addition, the company provides property and casualty, senior insurance products, and group medical insurance for businesses; and personal lines insurance to individuals. It operates through a network of 52 banking centers in Illinois and 14 offices in Missouri, as well as a loan production office in Indiana. The company was formerly known as First Mid-Illinois Bancshares, Inc. and changed its name to First Mid Bancshares, Inc. in April 2019. First Mid Bancshares, Inc. was founded in 1865 and is headquartered in Mattoon, Illinois.

How the Company Makes Money

First Mid-Illinois Bancshares generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees associated with various banking services. Key revenue streams include interest earned on commercial and consumer loans, mortgage loans, and investment securities. Additionally, the company earns non-interest income from service fees, transaction fees, and wealth management services. Significant partnerships with local businesses and community organizations also enhance its ability to attract customers and increase its market share, contributing to overall earnings.

First Mid-Illinois Bancshares Financial Statement Overview

Summary

First Mid-Illinois Bancshares demonstrates strong financial health with robust revenue growth and profitability. The balance sheet reflects a stable financial position with moderate leverage. While cash flow management is generally effective, recent declines in free cash flow growth highlight areas for improvement.

Income Statement

First Mid-Illinois Bancshares shows strong revenue growth with a TTM revenue growth rate of 1.35%. The gross profit margin is healthy at 71%, and the net profit margin is robust at 18.6%. EBIT and EBITDA margins are solid, indicating efficient operations. Overall, the company demonstrates strong profitability and growth in the regional banking sector.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.62, reflecting a balanced approach to leveraging. Return on equity is reasonable at 9.71%, indicating effective use of equity capital. The equity ratio is stable, suggesting a solid financial structure. However, the slight increase in debt levels over time warrants monitoring.

Cash Flow

Operating cash flow is strong, but free cash flow has seen a decline of 12.25% in the TTM period. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains high at 95.2%, suggesting efficient cash management despite recent declines.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	462.92M	447.28M	381.63M	286.27M	249.66M	201.37M
Gross Profit	304.57M	313.00M	268.82M	249.85M	219.25M	168.54M
EBITDA	132.43M	125.17M	103.31M	106.35M	81.24M	71.46M
Net Income	87.24M	78.90M	68.94M	72.95M	51.49M	45.27M
Balance Sheet
Total Assets	7.83B	7.52B	7.59B	6.74B	5.99B	4.73B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.19B	1.31B	1.37B	1.59B	1.30B
Total Debt	0.00	572.58M	622.94M	816.44M	361.63M	431.54M
Total Liabilities	6.90B	6.67B	6.79B	6.11B	5.35B	4.16B
Stockholders Equity	932.18M	846.39M	793.20M	633.15M	633.89M	568.23M
Cash Flow
Free Cash Flow	120.89M	119.48M	68.78M	60.80M	65.89M	61.08M
Operating Cash Flow	126.94M	124.42M	72.42M	65.82M	69.60M	63.54M
Investing Cash Flow	-186.25M	-7.51M	474.38M	-178.69M	-482.50M	-562.42M
Financing Cash Flow	172.20M	-138.76M	-556.17M	96.69M	164.22M	831.08M

First Mid-Illinois Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.44
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FMBH, the sentiment is Positive. The current price of 40.44 is above the 20-day moving average (MA) of 40.14, above the 50-day MA of 38.98, and above the 200-day MA of 37.12, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 74.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMBH.

First Mid-Illinois Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESQ	79 Outperform	$900.15M	18.47	19.19%	0.66%	17.98%	14.35%
OSBC	77 Outperform	$1.08B	13.53	9.24%	1.24%	10.42%	-18.32%
UVSP	76 Outperform	$933.15M	10.97	9.61%	2.59%	4.49%	20.44%
FMBH	75 Outperform	$970.71M	11.11	9.74%	2.43%	3.54%	12.23%
SBSI	74 Outperform	$957.00M	13.82	8.53%	4.59%	-4.08%	-16.80%
TMP	70 Outperform	$1.08B	12.67	11.20%	3.39%	9.55%	27.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

First Mid-Illinois Bancshares Corporate Events

First Mid-Illinois Bancshares secures approvals for Two Rivers merger

On October 29, 2025, First Mid Bancshares, Inc. entered into a merger agreement to acquire 100% of the shares of Two Rivers Financial Group, Inc. via a business combination in which Two Rivers will merge into a newly formed, wholly owned Iowa subsidiary of First Mid, with that subsidiary continuing as the surviving company. The company received regulatory approvals for the merger from the Iowa Division of Banking on December 23, 2025, and from the Federal Reserve Bank of Chicago on December 30, 2025, clearing key hurdles for the transaction and positioning First Mid to expand its regional banking footprint, with closing expected in the first quarter of 2026 subject to customary conditions.

The most recent analyst rating on (FMBH) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on First Mid-Illinois Bancshares stock, see the FMBH Stock Forecast page.

First Mid-Illinois Bancshares gains key approval for Iowa acquisition

On October 29, 2025, First Mid Bancshares, Inc. entered into a merger agreement to acquire 100% of the shares of Iowa-based Two Rivers Financial Group, Inc. via a business combination in which Two Rivers will merge into a newly formed, wholly owned Iowa subsidiary of First Mid, with that subsidiary remaining as the surviving company. On December 23, 2025, First Mid secured approval for the transaction from the Iowa Division of Banking and is now awaiting approval from the Federal Reserve, with the company expecting, subject to remaining regulatory clearances and customary closing conditions, to complete the deal in the first quarter of 2026, a move that would expand its regional presence and customer base in Iowa and enhance its competitive position among Midwestern community and regional banks.

The most recent analyst rating on (FMBH) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on First Mid-Illinois Bancshares stock, see the FMBH Stock Forecast page.

First Mid-Illinois Bancshares Expands Board with New Director

On October 28, 2025, First Mid Bancshares, Inc. expanded its board of directors from nine to ten members, appointing Mr. Alex Melvin as a Class I director. Mr. Melvin, who will also serve on the Risk Committee, will officially join the board on November 18, 2025, and will serve until the Class I term expires in 2026.

The most recent analyst rating on (FMBH) stock is a Buy with a $48.00 price target. To see the full list of analyst forecasts on First Mid-Illinois Bancshares stock, see the FMBH Stock Forecast page.

First Mid-Illinois Bancshares Announces Acquisition of Two Rivers

On October 29, 2025, First Mid Bancshares, Inc. announced its agreement to acquire Two Rivers Financial Group, Inc. in a 100% stock transaction, expanding its market presence into Iowa. The merger, expected to close in the first quarter of 2026, is anticipated to be accretive to First Mid’s earnings per share by 12.3% in 2027 and aims to achieve cost savings of approximately 27% of Two Rivers’ noninterest expense. The merger will result in Two Rivers Bank & Trust becoming part of First Mid Bank & Trust, enhancing First Mid’s geographic diversification and commitment to community banking.

The most recent analyst rating on (FMBH) stock is a Hold with a $41.00 price target. To see the full list of analyst forecasts on First Mid-Illinois Bancshares stock, see the FMBH Stock Forecast page.