First Mid Bancshares

-5.21%

1. Credit Risk: As a bank holding company, First Mid Bancshares is exposed to credit risk, which is the risk of borrowers defaulting on their loans. If the company has a large number of bad loans, it could lead to significant losses and negatively impact its financial performance.

2. Interest Rate Risk: First Mid Bancshares generates a significant portion of its revenue from the interest earned on loans and investments. Changes in interest rates can impact the company’s net interest margin and profitability.

3. Market Risk: The company’s stock price is subject to market volatility and can be affected by economic, political, and global events. A downturn in the stock market could lead to a decrease in the company’s stock price.

4. Regulatory Risk: As a financial institution, First Mid Bancshares is subject to various regulations and laws. Changes in these regulations, or failure to comply with them, could result in penalties, fines, or restrictions on the company’s operations.

5. Operational Risk: This refers to the risk of loss due to inadequate or failed internal processes, systems, or human error. It could lead to financial losses, reputational damage, and regulatory fines for the company.

6. Acquisitions and Integration Risk: First Mid Bancshares has been expanding its operations through acquisitions, which can be a risky strategy. Integrating acquired companies and their systems can be challenging and could lead to disruptions in operations and possible loss of customers.

7. Cybersecurity Risk: Given the increasing reliance on technology in the financial industry, First Mid Bancshares is exposed to the risk of cyber attacks. A data breach could result in financial losses, reputational damage, and regulatory penalties.

8. Concentration Risk: First Mid Bancshares’ loan portfolio is primarily concentrated in the agriculture, commercial, and residential real estate sectors. Any adverse developments in these industries could negatively impact the company’s financial performance.

9. Liquidity Risk: If the company is unable to meet its short-term financial obligations, it could face liquidity risk. This could happen due to a sudden increase in loan demand, decrease in deposit levels, or illiquid assets.

10. Reputation Risk: Any negative publicity, legal actions, or regulatory violations could harm the company’s reputation and erode customer trust, leading to a loss of business.