First Mid Bancshares Q3 profit tops estimates on deposit growth

Overview

• US regional bank's Q3 adjusted net income beat analyst expectations

• Company announced pending acquisition of Evergreen Bancshares and agreed to acquire Winship Farm Management

• Total loans declined for the quarter, while deposits increased

Outlook

• Company expects to reinvest $175.8 mln in cash at higher rates with earn back in under 2 yrs

Result Drivers

• LOAN PAYOFFS - Co said loan growth was pressured by higher payoff activity from customer collateral sales

• DEPOSIT GROWTH - Co attributed deposit growth to deposit product refresh and continued marketing

• ASSET QUALITY IMPROVEMENT - Co said asset quality improved with lower criticized assets and minimal net charge-offs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Mid Bancshares Inc is $55.00, about 8.9% above its October 28 closing price of $50.52

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 27 - UMB Financial Q3 profit rises on record loans

• Oct 28 - Alerus Financial Q3 profit beats estimates on commercial lending growth

• Oct 28 - TowneBank Q3 revenue, adj EPS beat estimates on higher loan volumes and yields

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)