First Mid Bancshares to purchase Two Rivers in a $94.1 million stock deal
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 30 2025
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Merger Announcement: First Mid Bancshares and Two Rivers Financial Group have agreed to merge in a 100% stock transaction, enhancing First Mid's presence in Iowa markets.
Financial Details: Two Rivers, with approximately $1.1 billion in total assets, will see its shareholders receive 1.225 shares of First Mid common stock for each share of Two Rivers common stock, valuing the transaction at about $94.1 million.
Earnings Impact: The merger is expected to be 12.3% accretive to First Mid's earnings per share by 2027, with anticipated cost savings of around 27% of Two Rivers' noninterest expenses.
Leadership and Approval: Shane Zimmerman will join First Mid as an Executive Vice President, and the merger has been unanimously approved by both boards, pending regulatory and shareholder approvals before closing in early 2026.
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Analyst Views on FMBH
Wall Street analysts forecast FMBH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FMBH is 48.00 USD with a low forecast of 48.00 USD and a high forecast of 48.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 42.060
Low
48.00
Averages
48.00
High
48.00
Current: 42.060
Low
48.00
Averages
48.00
High
48.00
About FMBH
First Mid Bancshares, Inc. is a financial holding company. It provides a full suite of financial services, including banking, wealth management, brokerage, Ag services, and insurance through a sizeable network of locations throughout Illinois, Missouri, Texas, and Wisconsin. It is engaged in the business of banking through its subsidiary, First Mid Bank & Trust, N.A. It offers insurance products and services to customers through its subsidiary, First Mid Insurance Group, Inc. It offers trust, farm services, investment services, and retirement planning through its subsidiary, First Mid Wealth Management Company. The Company also owns a captive insurance company, First Mid Captive, Inc. Through First Mid Bank, the Company owns an investment subsidiary, First Mid Investments, Inc. In addition, it owns five statutory business trusts, First Mid-Illinois Statutory Trust II, Clover Leaf Statutory Trust I, FBTC Statutory Trust I, Blackhawk Statutory Trust I, and Blackhawk Statutory Trust II.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
First Mid Bancshares Reports Strong Q4 Earnings and Acquisition Approval
- Earnings Performance: First Mid Bancshares reported a Q4 non-GAAP EPS of $1.06, indicating sustained growth in profitability, which reflects the company's robust financial management and competitive positioning in the market.
- Loan and Deposit Growth: Total loans reached $6.01 billion, with a quarterly increase of $187.3 million, or 3.2%, and a year-over-year increase of 6.0%; total deposits amounted to $6.40 billion, with a quarterly increase of $105.7 million, or 1.7%, and a year-over-year increase of 5.6%, demonstrating strong performance in both lending and deposit activities.
- Tangible Book Value Increase: Tangible book value per share increased by 4.3% during the quarter to $29.42, with a year-over-year increase of 20.3%, which not only enhances shareholder wealth but also provides a stronger foundation for future capital operations.
- Acquisition Approval and Dividend: The company received regulatory approval for the acquisition of Two Rivers Financial Group, Inc., while the Board declared a regular quarterly dividend of $0.25 per share, showcasing a dual strategy of business expansion and shareholder returns.
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First Mid Bancshares Declares Quarterly Dividend
- Quarterly Dividend Announcement: First Mid Bancshares declares a quarterly dividend of $0.25 per share, consistent with previous distributions, indicating the company's stable cash flow and profitability.
- Yield Information: The forward yield of 2.33% provides investors with a relatively attractive return, enhancing market interest in the stock.
- Shareholder Record Dates: The dividend will be payable on February 27, with a record date of February 12 and an ex-dividend date also on February 12, ensuring shareholders receive their dividends promptly.
- Financial Performance Overview: First Mid Bancshares reports a non-GAAP EPS of $1.06 and revenue of $88 million, reflecting the company's robust performance in the current economic environment.
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