New York, June 4, 2026, 15:03 EDT
- Shares of First Mid Bancshares were up 2.9% at $44.40 in U.S. afternoon trade.
- Regional banks were up too, adding to the move and giving it a wider sector base.
- Investors are tracking the Two Rivers integration along with a CEO handoff set for July.
First Mid Bancshares Inc. gained almost 3% Thursday, moving higher as regional banks rallied. The Illinois-based lender traded close to the top of its range for the session.
The stock rose $1.27 to $44.40 as of 18:47 UTC. About 61,400 shares traded. It started the session at $43.64 and ranged from $43.47 to $44.53. The latest price puts the company’s market cap near $1.18 billion.
First Mid isn’t starting fresh here. The bank is still integrating the Two Rivers Financial Group buy, which gave it more heft in Iowa and pushed up its loan book and deposits during Q1.
Regional banks climbed. The SPDR S&P Regional Banking ETF jumped 2.8%. The iShares Russell 2000 ETF, which tracks smaller U.S. stocks, added 1.7%.
Banks traded higher across the group. First Busey was up 2.1%, Old Second Bancorporation added 3.2%, and Horizon Bancorp climbed 2.5%. First Mid’s move looked in line with the sector rather than something unique to the company.
First Mid reported net income of $26.3 million, or $1.06 per diluted share, for the quarter. Adjusted net income came in at $28.4 million, or $1.14 per share. The Two Rivers deal closed, bringing in $871.4 million in loans and $1.04 billion in deposits, according to the company. Net interest margin was 3.78%. CEO Joseph Dively said it was a quarter of “record quarterly earnings per share and net income.” President Matthew Smith pointed to “solid organic growth.”
First Mid calls itself a $9.3 billion financial company with a community focus. It runs banking, insurance, wealth management, brokerage, and ag services in Illinois, Iowa, Missouri, Texas and Wisconsin, and has a loan office in Indiana. Its shares trade on Nasdaq as FMBH.
First Mid has set its leadership shift for July 1. Smith will take over as CEO and president of First Mid and First Mid Bank & Trust, with Dively stepping in as executive chairman. Smith said the firm is focused on “managing risk with discipline.” Dively called the move a “well-planned leadership transition.” SEC
But there are risks to this trade. In the first quarter, First Mid said non-performing loans climbed to $44.1 million, in part from the Two Rivers book, and mentioned downgrades in agricultural loans. If credit takes a hit, or if rising funding costs or merger delays turn up, Thursday’s move may not last long.
First Mid shares are moving with the sector and some optimism about integration. The question next is if First Mid can get more stable earnings from the new deposits, Iowa business and new management, but still keep credit costs from hurting margins.
