First Mid Bancshares, Inc. (FMBH): Boston Consulting Group Matrix [10-2024 Updated]
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First Mid Bancshares, Inc. (FMBH) Bundle
In 2024, First Mid Bancshares, Inc. (FMBH) demonstrates a dynamic presence in the banking sector, revealing a mix of opportunities and challenges through the lens of the Boston Consulting Group Matrix. The company showcases strong loan growth and robust asset quality in its Stars category, while also generating consistent net income as a Cash Cow. However, it faces hurdles in its Dogs segment, with declining consumer loans and rising expenses. Additionally, the Question Marks highlight critical areas needing strategic focus, including fluctuating mortgage banking revenues and agricultural loans. Dive into the detailed analysis below to understand the full picture of FMBH's market positioning.
Background of First Mid Bancshares, Inc. (FMBH)
First Mid Bancshares, Inc. (“First Mid”) is a community-focused financial institution headquartered in Mattoon, Illinois. The company serves as the parent organization for First Mid Bank & Trust, N.A., First Mid Insurance Group, Inc., and First Mid Wealth Management Co. Established in 1865, First Mid has built a strong reputation over its 159 years of operation, providing a comprehensive range of financial services that include banking, wealth management, brokerage, agricultural services, and insurance.
As of 2024, First Mid Bancshares had approximately $7.6 billion in total assets, making it a significant player in the regional banking landscape. The company operates a vast network of locations across Illinois, Missouri, Texas, and Wisconsin, along with a loan production office in the greater Indianapolis area. This extensive footprint not only enhances their service capabilities but also strengthens their presence in key markets.
In the most recent financial quarter ending September 30, 2024, First Mid reported a net income of $19.5 million, translating to $0.81 diluted earnings per share. This performance marks a year-over-year increase, attributed to robust loan growth and an expanding non-interest income base. The company achieved a net interest income of $57.5 million, reflecting a continued focus on enhancing profitability through effective asset management and strategic growth initiatives .
First Mid's commitment to community engagement and customer service has been integral to its operations. The company prides itself on building long-lasting relationships with customers and communities, emphasizing tailored solutions that meet diverse financial needs. Their dedication to providing exceptional service has been a cornerstone of their business strategy and continues to drive their operational success.
First Mid Bancshares, Inc. (FMBH) - BCG Matrix: Stars
Strong Loan Growth
Total loans for First Mid Bancshares, Inc. reached $5.62 billion as of the third quarter of 2024, reflecting a growth of $54.0 million, or 1.0%, compared to the previous quarter. The loan portfolio remains diversified across various sectors, including commercial real estate, agricultural operating loans, and commercial and industrial loans.
Net Interest Income
Net interest income increased by $7.1 million year-over-year, totaling $57.5 million for the third quarter of 2024. This increase was driven by higher interest income on loans, which amounted to $81.8 million, up from $69.1 million in the same quarter of the previous year. Interest on investment securities contributed $7.0 million.
Asset Quality Metrics
First Mid Bancshares maintains robust asset quality metrics, with non-performing loans at a low 0.32% of total loans, translating to $18.2 million in non-performing loans. The allowance for credit losses (ACL) is $68.8 million, resulting in an ACL to total loans ratio of 1.22%.
Adjusted Return on Average Assets
The adjusted return on average assets stands at 1.05% for the third quarter of 2024, indicating strong profitability relative to total assets. This is an increase from 0.94% reported in the same quarter of the previous year.
Wealth Management Revenues
Wealth management revenues have shown continued expansion, reaching $16.5 million for the third quarter of 2024. This represents an increase from $15.8 million in the prior year, driven by higher brokerage and trust fees.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Loans | $5.62 billion | $5.56 billion | +$54 million (1.0%) |
| Net Interest Income | $57.5 million | $50.4 million | +$7.1 million (14.1%) |
| Non-Performing Loans | $18.2 million | $19.1 million | - $0.9 million |
| ACL to Total Loans | 1.22% | 1.23% | -0.01% |
| Adjusted Return on Average Assets | 1.05% | 0.94% | +0.11% |
| Wealth Management Revenues | $16.5 million | $15.8 million | +$0.7 million |
First Mid Bancshares, Inc. (FMBH) - BCG Matrix: Cash Cows
Consistent net income generation
Net income for the third quarter of 2024 was reported at $19.5 million, with a diluted earnings per share of $0.81.
Solid return on average common equity
The return on average common equity stood at 9.58% for the third quarter of 2024.
Total deposits
Total deposits reached $6.09 billion, indicating a stable customer base despite a slight decrease of $26.9 million from the previous quarter.
Non-interest income
Non-interest income was maintained at around $23 million for the quarter, demonstrating diversified revenue streams across various segments.
Efficiency ratio
The efficiency ratio improved to 61.33%, signaling effective cost management practices within the organization.
| Metric | Value |
|---|---|
| Net Income | $19.5 million |
| Return on Average Common Equity | 9.58% |
| Total Deposits | $6.09 billion |
| Non-interest Income | $23 million |
| Efficiency Ratio | 61.33% |
First Mid Bancshares, Inc. (FMBH) - BCG Matrix: Dogs
Consumer Loans
Consumer loans decreased to $63.2 million, indicating a significant decline in demand.
Non-Interest Expense Growth
Non-interest expense growth is outpacing revenue growth, with total non-interest expenses reported at $53.9 million.
Interest on Investment Securities
Interest on investment securities has declined to $7 million, reflecting reduced returns from this asset class.
Special Mention Loans
The increase in special mention loans has reached $38.2 million, highlighting potential future risks within the loan portfolio.
Stock Market Performance
The market price of FMBH's stock has fluctuated, closing at $38.91, which raises investor caution regarding its stability.
| Financial Metric | Value |
|---|---|
| Consumer Loans | $63.2 million |
| Non-Interest Expenses | $53.9 million |
| Interest on Investment Securities | $7 million |
| Special Mention Loans | $38.2 million |
| Stock Price | $38.91 |
First Mid Bancshares, Inc. (FMBH) - BCG Matrix: Question Marks
Mortgage Banking Revenues
Mortgage banking revenues for First Mid Bancshares, Inc. are currently at $2.85 million for the quarter ended September 30, 2024. This figure reflects fluctuations in revenue, highlighting the challenges faced in this segment as it seeks to gain traction in a competitive market.
Recent Acquisition Expenses Impacting Profitability Metrics
Recent acquisition expenses have significantly impacted profitability metrics. The total non-interest expense for the third quarter of 2024 was $53.9 million, compared to $51.4 million in the prior quarter. This increase was partially driven by the acquisition of Mid Rivers Insurance Group. Additionally, integration and acquisition expenses totaled $137,000 for the quarter.
Uncertainty in Agricultural Operating Loans
Agricultural operating loans currently stand at $233.4 million, reflecting a year-over-year increase but also highlighting ongoing uncertainty in this sector. This uncertainty is critical as it affects the overall growth potential of the company's loan portfolio.
Need for Strategic Initiatives to Bolster Consumer Loan Growth
There is a pressing need for strategic initiatives to stimulate consumer loan growth, as consumer loans have decreased to $63.2 million. This decline underscores the importance of targeted marketing and product offerings to capture market share in this segment.
Potential for New Product Offerings in Underserved Markets
First Mid Bancshares has the potential to introduce new product offerings in underserved markets. The company is focusing on expanding its services to meet the needs of these markets, which could enhance growth opportunities and improve market share.
| Metric | Value |
|---|---|
| Mortgage Banking Revenues | $2.85 million |
| Total Non-Interest Expense (Q3 2024) | $53.9 million |
| Acquisition Expenses | $137,000 |
| Agricultural Operating Loans | $233.4 million |
| Consumer Loans | $63.2 million |
In summary, First Mid Bancshares, Inc. (FMBH) presents a mixed landscape through the BCG Matrix framework. The Stars show impressive loan growth and solid asset quality, while the Cash Cows contribute consistent net income and a stable deposit base. However, challenges arise with the Dogs, where declining consumer loans and rising non-interest expenses pose risks. Meanwhile, the Question Marks highlight areas needing strategic focus, particularly in mortgage banking and agricultural loans. Navigating these dynamics will be crucial for FMBH's sustained growth and profitability in the coming years.
Article updated on 8 Nov 2024
Resources:
- First Mid Bancshares, Inc. (FMBH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Mid Bancshares, Inc. (FMBH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Mid Bancshares, Inc. (FMBH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.