FMBH Stock Forecast & Price Target

First Mid Bancshares has demonstrated a positive trend in line utilization, with overall utilization increasing to 52% and commercial line utilization rising to 44% as of June 30, signifying robust demand for credit. The company's end-of-period (EOP) loan growth reached 5% on a linked-quarter annualized (LQA) basis, aligning with the projected range of 4%-6%, while average loans surged by 10% LQA, indicating strong credit expansion. Furthermore, the consistent loan growth expectations suggest a favorable outlook, with models anticipating continued growth of 4%-5% on a LQA basis, translating to similar year-over-year increases for the current year and the subsequent year.

First Mid Bancshares Inc has revised its core fee income outlook downward by 1% for the current year, primarily influenced by weaker projections in wealth management, insurance, and other revenue streams. The decline in wealth management revenue, which saw a significant drop from $9.9 million to $5.4 million in the first quarter, underscores the impact of seasonal factors and a softening market. Although the company's long-term outlook for 2026 remains unchanged at +7%, the immediate reduction in projected fee income reflects ongoing challenges that could adversely affect future performance.