Shares of First Mid-Illinois Bancshares (NASDAQ: FMBH) surged 5.24% in Friday's trading session, following the release of its impressive first-quarter 2025 financial results. The regional bank reported better-than-expected revenue and in-line earnings per share, demonstrating resilience in a challenging economic environment.

According to the earnings report, First Mid Bancshares posted a revenue of $82.6 million for Q1 2025, marking a 2.9% increase from the same quarter last year. The company's net income rose to $22.2 million, up 8.1% year-over-year, while earnings per share climbed to $0.93 from $0.86 in Q1 2024. Notably, the bank's profit margin improved to 27%, up from 26% in the previous year, driven by higher revenue.

Despite the positive earnings report, Raymond James cut its target price for First Mid Bancshares to $40 from $43. However, investors seemed to focus more on the company's solid financial performance, as evidenced by the stock's significant gain. The surge in share price also came despite Stephens & Co. maintaining its Equal-Weight rating on the stock, suggesting that market participants are optimistic about the bank's growth prospects and its ability to navigate the current economic landscape.