First Mid acquires Two Rivers Financial Group

First Mid Bancshares has completed its acquisition of Two Rivers Financial Group, a strategic move that increases First Mid’s total assets to approximately $9.1 billion. The acquisition, finalized on March 2, 2026, adds 14 Iowa locations to First Mid's growing footprint and enhances its trust and wealth assets under management to around $7.9 billion.

The acquisition follows a series of regulatory reviews and shareholder approvals after the deal's initial announcement. First Mid’s Chairman and CEO, Joe Dively, emphasized the importance of a smooth transition, noting that account conversions for Two Rivers’ customers are scheduled for June. Customers will be notified well in advance and should expect no immediate impact on their accounts or banking services.

Strategically, this acquisition underpins First Mid’s expansion and integration strategy. It allows the company to deepen its market presence in Iowa while broadening its service offerings to Two Rivers’ clientele. Dively highlighted the opportunity to provide expanded services to the strong customer base that Two Rivers had cultivated, aiming for a seamless transition for both employees and customers.

The completion of this acquisition occurs amid broader challenges for regional banks, as reflected by the negative movements in First Mid's share price alongside regional peers such as Southside Bancshares and Berkshire Hills Bancorp. Despite these trends, First Mid’s performance in recent quarters has been robust, featuring record net income and growth in tangible book value. The acquisition strategy, although causing temporary dips in stock performance upon announcements, aims for long-term EPS accretion and cost efficiencies.

As the company moves forward, key milestones to watch will include the June account conversion process, as well as the realization of anticipated cost synergies. Additionally, investors may focus on updates regarding the integration's impact on credit quality and capital metrics. The completion of this acquisition entrenches First Mid as a larger, more integrated player in the regional banking sector, setting the stage for further growth and integration.