FMBH Stock Forecast & Price Target

First Mid Bancshares has demonstrated strong operational performance, with overall line utilization increasing to 52% as of June 30, up from 50% at the end of March, indicating effective management of its credit facilities. The company also reported end-of-period loan growth of 5% on a last quarter annualized (LQA) basis, aligning with expectations and contributing to an average loan increase of 10% LQA. These metrics suggest a stable outlook for continued loan growth in the range of 4%-5% for the upcoming periods, supporting a positive sentiment regarding the company's financial health and future performance.

First Mid Bancshares has conservatively adjusted its core fee income outlook downward by 1% for the current year, primarily attributing this decline to reduced expectations in wealth management, insurance, and other revenue sources following the second quarter. The company reported a significant drop in wealth management revenue, from $9.9 million in the first quarter to $5.4 million, reflecting challenges in both market conditions and seasonal factors that are expected to persist. While the long-term 2026 outlook remains optimistic at +7%, the near-term revenue projections indicate underlying weaknesses that could hinder overall financial performance.