FMBH

First Mid is a clean, scaling Midwest community bank. Net income has compounded from $51.5M (FY2021) to $91.7M (FY2025), a ~15.5% four-year CAGR, with FY2025 up +16.3% and diluted EPS +16.1% to $3.83 — consistent, profitable growth rather than a one-off. The balance sheet is sound: total assets grew +5.9% to $7.97B while equity grew faster at +13.3% to $959M and retained earnings rose +17.3% to $464M, so the bank is building capital ahead of its book. Operating cash flow of $131M comfortably covers the $23.4M dividend and minimal $6.85M of capex. The MD&A confirms First Mid Bank exceeded minimum regulatory capital at 12/31/2025, with $54.5M available for upstream dividends.

Valuation is the draw. At $47.86 the stock trades at 12.5x FY2025 EPS and roughly 1.2x book (≈$1.15B market cap on $959M equity) for a franchise growing earnings in the mid-teens — a sub-1 PEG that is undemanding for a bank of this quality. The ~2% dividend yield ($23.4M paid on 24.1M shares) is well-covered and rising (+4.6%), and share count is essentially flat (+0.4%), so per-share growth is real, not dilution-masked.