FMBH Stock Forecast & Price Target

First Mid Bancshares Inc. demonstrated a solid financial performance with an increase in overall line utilization to 52% as of June 30, up from 50% in the previous quarter, along with a rise in commercial line utilization to 44%. The company achieved end-of-period (EOP) loan growth of 5% on a last quarter annualized (LQA) basis, aligning with expectations of 4%-6%, while average loans surged by 10% LQA. Furthermore, the outlook remains positive, with projections for similar growth rates in the forthcoming quarters, indicating a sustained trajectory of 4%-5% loan growth on a year-over-year basis for this year and the next.

First Mid Bancshares Inc has experienced a downward revision in its core fee income outlook, with a decrease of 1% projected for the current year primarily due to lower expectations for wealth management, insurance, and other revenue sources. The first quarter results reflected a significant decline in wealth management revenue, dropping to $5.4 million compared to $9.9 million in the previous quarter, attributed to seasonal factors and a softening market. Despite an unchanged long-term growth outlook of +7% for 2026, the immediate negative indicators suggest challenges that could impact the company's short-term financial stability.