FMBH Stock Forecast & Price Target

First Mid Bancshares Inc demonstrated a solid increase in line utilization, with overall utilization rising to 52% as of June 30, up from 50% at March 31, and commercial line utilization growing to 44%. The company also achieved end-of-period loan growth of 5% on a last-quarter-annualized (LQA) basis, aligning with the expected growth range of 4%-6%, while average loans surged by 10% LQA. With these positive metrics and the consistent growth expectations for the remainder of the year and into the next, the company is well-positioned for sustained performance in the community banking sector.

The negative outlook on First Mid Bancshares's stock is primarily driven by a conservative reduction in the company's core fee income projections for the current year, decreasing by 1% due to lower expectations in wealth management and insurance revenue following the second quarter. Additionally, first-quarter wealth management revenue exhibited a significant decline, dropping from $9.9 million to $5.4 million, attributed to seasonal factors and a softening market. While the company's long-term growth projections for 2026 remain optimistic at 7%, the immediate concerns surrounding revenue performance in core business segments cast a shadow over its current financial stability.