UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported):
MAY 4, 2005
FIRST MID-ILLINOIS BANCSHARES, INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE
(State of Other Jurisdiction of Incorporation)
0-13368 37-1103704
(Commission File Number) (IRS Employer Identification No.)
1515 CHARLESTON AVENUE, MATTOON, IL 61938
(Address Including Zip Code of Principal Executive Offices)
(217) 234-7454
(Registrant's Telephone Number,
including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17CFR 240.13e-4(c))
Item 8.01. Other Events
Incorporated by reference is the quarterly shareholder report issued by the
Registrant on May 4, 2005, attached as Exhibit 99, providing information
concerning the Registrant's financial statements as of March 31, 2005.
Item 9.01. Financial Statements and Exhibits
(a) None required
(b) None required
(c) Exhibits
Exhibit 99 - Quarterly shareholder report as of and for the period
ending March 31, 2005
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has dully caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST MID-ILLINOIS BANCSHARES, INC.
Dated: May 4, 2005 By: /s/ William S. Rowland
William S. Rowland
President and Chief Executive Officer
INDEX TO EXHIBITS
Exhibit
Number Description
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99 Quarterly shareholder report issued May 4, 2005
Exhibit 99
[GRAPHIC OMITTED][GRAPHIC OMITTED]
First Mid-Illinois Bancshares, Inc. had a successful first quarter with diluted
earnings per share increasing to $.54 per share as compared to $.51 per share
for the first quarter of 2004, a 6% increase. Net income increased to $2,435,000
as compared to $2,389,000 in the first quarter of 2004. All share and per share
information for prior periods presented in this report have been adjusted to
reflect the three-for-two stock split in the form of a 50% stock dividend
completed in July 2004.
Higher non-interest income was the primary factor in earnings growth.
Non-interest income increased to $3,176,000 as compared to $2,898,000 for the
first quarter of 2004. As a result of new business underwritten through The
Checkley Agency, Inc. and decreased policy claims, insurance commissions were
$81,000 greater than the first quarter of 2004. Also, we sold securities that
resulted in a gain of $173,000 during the quarter as market opportunities and
investment portfolio liquidity factored in the decision to sell. In addition,
increased residential mortgage originations and greater refinance activity as a
result of lower long-term interest rates than the first quarter of last year led
to mortgage banking revenues increasing by $59,000 from the first three months
of 2004.
Net interest income also increased to $7,075,000 as compared to $7,040,000 for
the first quarter of 2004. This was the result of higher loan and deposit
balances than the first quarter of last year. Loan balances on March 31, 2005
were $593 million as compared to $551 million on March 31, 2004. Deposit
balances increased to $638 million from $624 million last March. Since December
31, 2004, loan balances have declined as a result of seasonal paydowns on
agricultural loans and deposits have declined primarily as a result of the
maturity of brokered CDs that were not replaced. The Company's year-to-date net
interest margin was 3.76% on a tax-equivalent basis compared with 3.93% for the
first quarter of last year as increases in short-term interest rates led to
greater funding costs. It is important to note the Company did recover $85,000
in interest during the first quarter of 2004 that enhanced the previous year's
net interest margin.
Our provision for loan losses amounted to $187,000 for the first three months of
2005, which was the same amount as the first quarter of 2004. Net charge-offs
declined to $71,000 in the first quarter of 2005 compared to $113,000 for the
same period last year. Non-performing loans were $3.7 million on March 31, 2005
as compared with $3.3 million on March 31, 2004.
Non-interest expenses increased by $138,000 compared to the first quarter of
2004 as a result of increased costs incurred with the opening of a new banking
facility and professional fees incurred in complying with the requirements of
the Sarbanes-Oxley Act of 2002.
First Mid opened its twenty-fifth banking location in the first quarter. The new
full-service facility is located at the corner of Broadway and Cypress Street in
Highland and provides customers a downtown location in addition to the existing
facility on Route 143. We have grown loans and deposits substantially since
entering the community in 2001 and are pleased to now offer our customers the
convenience of two Highland locations.
In April, our Company celebrated 140 years of providing financial services to
the people of Illinois. As you can imagine, we have overcome many economic,
governmental, and societal changes over the past 140 years. One thing that has
remained clear is our focus on retaining the trust and confidence of our
shareholders, our customers, our communities, and our employees. Together, we
have built an outstanding organization.
Our 2005 annual meeting of stockholders will be held at 4:00 p.m. on May 25,
2005 in the main lobby of First Mid-Illinois Bank & Trust, N.A., 1515 Charleston
Avenue, Mattoon, Illinois. All shareholders are invited to attend. On behalf of
the Board, management and entire staff of the Company, I thank you for your
continued support and look forward to visiting with as many of you as possible
at the annual meeting.
Sincerely,
/s/ William S. Rowland
William S. Rowland
Chairman and Chief Executive Officer
May 4, 2005
First Mid-Illinois Bancshares, Inc.
1515 Charleston Avenue
Mattoon, Illinois 61938
217-234-7454
www.firstmid.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) (unaudited) Mar 31, Dec 31,
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2005 2004
Assets
Cash and due from banks $16,410 $19,119
Federal funds sold and other interest-bearing deposits 12,116 4,435
Investment securities:
Available-for-sale, at fair value 167,101 168,821
Held-to-maturity, at amortized cost (estimated fair
value of $1,475 and $1,598 at March 31, 2005
and December 31, 2004, respectively) 1,432 1,552
Loans 593,297 597,508
Less allowance for loan losses (4,737) (4,621)
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Net loans 588,560 592,887
Premises and equipment, net 15,115 15,227
Goodwill, net 9,034 9,034
Intangible assets, net 3,204 3,346
Other assets 10,714 12,117
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Total assets $823,686 $826,538
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Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing $84,738 $85,524
Interest bearing 552,897 564,716
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Total deposits 637,635 650,240
Repurchase agreements with customers 65,715 59,835
Junior subordinated debentures 10,310 10,310
Other borrowings 34,700 29,900
Other liabilities 5,490 7,189
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Total liabilities 753,850 757,474
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Stockholders' Equity:
Common stock ($4 par value; authorized
18,000,000 shares; issued 5,604,073 shares
in 2005 and 5,578,897 shares in 2004) 22,416 22,316
Additional paid-in capital 18,522 17,845
Retained earnings 55,697 53,113
Deferred compensation 2,332 2,260
Accumulated other comprehensive income (361) 623
Treasury stock at cost, 1,160,875 shares in
2005 and 1,121,546 shares in 2004 (28,770) (27,093)
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Total stockholders' equity 69,836 69,064
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Total liabilities and stockholders' equity $823,686 $826,538
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands) (unaudited)
--------------------------------------------------------------------------------
For the year ended March 31, 2005 2004
Interest income:
Interest and fees on loans $ 8,782 $ 8,167
Interest on investment securities 1,563 1,515
Interest on federal funds sold and other 79 45
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Total interest income 10,424 4,727
Interest expense:
Interest on deposits 2,515 2,138
Interest on repurchase agreements with customers 283 72
Interest on subordinated debt 140 37
Interest on other borrowings 411 440
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Total interest expense 3,349 2,687
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Net interest income 7,075 7,040
Provision for loan losses 187 187
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Net interest income after provision for loan losses 6,888 6,853
Non-interest income:
Trust revenues 636 616
Brokerage commissions 97 110
Insurance commissions 511 430
Service charges 1,034 1,124
Securities gains, net 173 -
Mortgage banking revenues 153 94
Other 572 524
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Total non-interest income 3,176 2,898
Non-interest expense:
Salaries and employee benefits 3,474 3,338
Net occupancy and equipment expense 1,036 1,073
Amortization of intangible assets 142 175
Other 1,654 1,582
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Total non-interest expense 6,306 6,168
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Income before income taxes 3,758 3,583
Income taxes 1,323 1,194
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Net income $2,435 $2,389
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Per Share Information
(unaudited)
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For the year ended March 31, 2005 2004
Basic earnings per share $0.55 $0.52
Diluted earnings per share $0.54 $0.51
Book value per share at March 31 $15.72 $14.78
Market price of stock at March 31 $40.15 $32.00
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(In thousands) (unaudited)
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For the year ended March 31, 2005 2004
Balance at beginning of period $69,154 $70,595
Net income 2,435 9,751
Dividends on stock - (2,023)
Issuance of stock 711 2,050
Purchase of treasury stock (1,566) (10,365)
Deferred compensation adjustment 87 104
Changes in accumulated other comprehensive
income (loss) (985) (958)
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Balance at end of period $69,836 $69,154
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