Business Context and Reporting Period
Company: FIRST MID BANCSHARES, INC. (FMBH)
Filing Type: Form 8-K (Current Report)
Date of Report: April 15, 2026
Reporting Period: Events occurring on April 10, 2026, and April 3, 2026.
Key Financial Metrics and Agreements
This filing details the entry into new material definitive agreements and the termination of a prior credit facility. No revenue, profit, or cash flow data is provided in this specific filing.
- New Revolving Line of Credit: $15.0 million facility with Bankers' Bank.
- New Term Loan: $20.0 million facility with Bankers' Bank.
- Interest Rates (Initial):
- Revolving Note: ~6.00% per annum (Prime Rate - 0.75%, floor 4.50%).
- Term Loan: ~6.402% per annum (30-day avg SOFR + 2.75%).
- Maturities: Revolving Note matures April 10, 2027; Term Loan matures April 10, 2029.
- Collateral: 100% of issued and outstanding capital stock of First Mid Bank & Trust, National Association.
- Terminated Facility: $15.0 million Northern Trust Credit Agreement (matured April 3, 2026, with $0 outstanding).
Material Changes Versus Prior Period
The Company replaced its matured Northern Trust Credit Agreement with a new facility from Bankers' Bank. Key changes include:
- Debt Structure: Transition from a single $15.0 million revolving facility to a combined $35.0 million facility ($15.0 million revolving + $20.0 million term).
- Debt Reduction Strategy: Proceeds from the new $20.0 million Term Loan are designated to pay down a portion of existing subordinated debt.
- Liquidity Management: The new revolving line is intended for general corporate purposes and working capital.
- Cost of Borrowing: The filing does not provide the interest rate of the terminated Northern Trust facility for a direct comparison, though the new rates are variable based on Prime and SOFR.
Outlook, Risks, and Management Commentary
Management Commentary: The Company expects to utilize the new credit facilities to manage liquidity and reduce existing subordinated debt obligations.
Covenants and Risks: The new Loan Agreement includes customary affirmative and negative covenants, including:
- Requirements to maintain specific capital ratios.
- Provisions relating to regulatory actions.
- Restrictions on transferring pledged collateral.
- Obligations to provide financial information and comply with applicable laws.
Unusual Items: No unusual items or early termination penalties were incurred regarding the termination of the Northern Trust Credit Agreement.
Investor Verification Checklist
- Verify the exact amount of existing subordinated debt being paid down with the Term Loan proceeds.
- Review the full text of the Business Loan Agreement (Exhibit 10.1) for specific financial covenants and default triggers.
- Monitor the variable interest rate indices (Prime Rate and SOFR) to assess future interest expense volatility.
- Confirm the impact of the new debt structure on the Company's regulatory capital ratios.