| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 28.52 | -32 |
| Intrinsic value (DCF) | 35.83 | -15 |
| Graham-Dodd Method | 29.49 | -30 |
| Graham Formula | 81.49 | 94 |
First Mid Bancshares, Inc. (NASDAQ: FMBH) is a financial holding company providing community banking, wealth management, and insurance services primarily in Illinois and Missouri. Founded in 1865 and headquartered in Mattoon, Illinois, the company operates through 52 banking centers in Illinois and 14 offices in Missouri, along with a loan production office in Indiana. First Mid Bancshares offers a comprehensive suite of financial products, including commercial and agricultural loans, residential real estate loans, and consumer banking services. Additionally, it provides specialized services such as estate planning, investment advisory, and insurance solutions for individuals and businesses. With a market capitalization of approximately $839 million, First Mid Bancshares is a key regional player in the U.S. financial services sector, emphasizing personalized customer relationships and community-focused banking. The company’s diversified revenue streams—spanning traditional banking, wealth management, and insurance—position it as a resilient financial institution in a competitive regional banking landscape.
First Mid Bancshares presents a stable investment opportunity with a focus on community banking and diversified financial services. The company’s $318.6 million in revenue and $78.9 million net income for the latest fiscal year reflect steady performance, supported by a diluted EPS of $3.30 and a dividend yield of approximately 2.9% (based on a $0.96 annual dividend). Its low beta (0.829) suggests lower volatility compared to the broader market, appealing to risk-averse investors. However, regional banks face challenges from rising interest rates, regulatory pressures, and competition from larger national banks and fintech disruptors. First Mid’s strong liquidity position ($124.6 million in cash) and manageable debt levels ($368.5 million) provide financial flexibility, but investors should monitor loan portfolio quality and net interest margin trends.
First Mid Bancshares competes in the crowded regional banking sector, where differentiation hinges on customer service, localized expertise, and niche offerings like agricultural lending. Its competitive advantage lies in its deep community roots, with a 150+ year history fostering trust and long-term client relationships. The company’s integrated model—combining banking, wealth management, and insurance—creates cross-selling opportunities and revenue diversification. However, its geographic concentration in Illinois and Missouri exposes it to regional economic risks, such as agricultural commodity price fluctuations. Compared to larger peers, First Mid lacks scale advantages in technology and marketing, but its agility allows for tailored solutions. The bank’s loan portfolio is well-balanced (commercial real estate, agricultural, and consumer loans), reducing sector-specific risks. While its wealth management arm adds fee-based income, it faces competition from specialized firms. To sustain growth, First Mid must invest in digital banking capabilities while maintaining its high-touch service model.