First Mid Bancshares Raises Quarterly Dividend 4%

First Mid Bancshares, Inc. (NASDAQ: FMBH) increased its quarterly dividend to $0.26 per share from $0.25, a 4% rise. The ex-dividend date was Aug. 18, 2026.

At the new rate, the financial-services company’s annualized dividend is $1.04 per share. That equates to a forward yield of 2.08% based on a share price of $49.98.

The increase extends First Mid’s run of annual dividend growth to four consecutive years. That record follows a dividend cut in 2021, making the latest move part of a relatively recent rebuilding of the company’s payout history rather than a decades-long uninterrupted streak.

Earnings and capital provide context

First Mid announced the increase alongside its second-quarter results. Management reported record quarterly earnings and said the integration of Two Rivers Bank & Trust had been completed successfully. Chief Executive Matthew Smith identified the higher dividend, share repurchases and the repayment of higher-cost subordinated debt as components of the company’s capital-deployment activity. First Mid’s second-quarter earnings release

The company also said its regulatory capital ratios remained above the thresholds required to be considered “well capitalized.” Its net interest income benefited from the inclusion of additional Two Rivers operations, loan repricing and the deployment of cash from the investment portfolio, though management noted continued competition for deposits. First Mid’s second-quarter earnings release

First Mid is the parent of First Mid Bank & Trust, First Mid Insurance Group and First Mid Wealth Management. It offers banking, wealth management, brokerage, agricultural and insurance services across several Midwestern markets and Texas. Company profile in the earnings release

What it means for income investors

The additional $0.01 per share increases quarterly cash income modestly, while the 2.08% forward yield places the payout in a supporting rather than high-yield role. SmarterDividends assigns the dividend a safety score of 70 out of 100, equivalent to a B grade.

The four-year growth streak is constructive, but the 2021 reduction remains relevant when assessing the durability of the record. Future dividend capacity will depend on earnings, credit quality and capital requirements—particularly important considerations for a regional banking company integrating an acquired institution.