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):
APRIL 23, 2003
FIRST MID-ILLINOIS BANCSHARES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
(STATE OR 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)
Item 5. Other Events
Incorporated by reference is the quarterly shareholder report issued by the
Registrant on April 23, 2003, attached as Exhibit 99, providing information
concerning the Registrant's financial statements as of March 31, 2003.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Quarterly shareholder report issued April 23, 2003
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: April 23, 2003 By: /s/ William S. Rowland
President and Chief Executive Officer
EXHIBIT INDEX
Exhibit
Number Description
99 Quarterly shareholder report issued April 23, 2003
Exhibit 99
April 23, 2003
Quarterly Report to the Owners,
First Mid-Illinois Bancshares, Inc.
First Mid-Illinois Bancshares, Inc. had a successful first quarter with diluted
earnings per share increasing to $.73 per share as compared to $.59 per share
for the first quarter of 2002, a 24 percent increase. Net income increased to
$2,362,000 as compared to $2,009,000 in the first quarter of 2002.
Non-interest income increased to $3,430,000 as compared to $2,323,000 for the
first quarter of 2002. The increase was the result of several factors.
Historical lows in long-term interest rates led to increased mortgage loan
originations and sales. Mortgage banking revenues were $549,000 as compared to
$326,000 in the first quarter of 2002. In addition, increased insurance
commissions, gains recognized on the sale of securities, and growth in deposit
service charges due to increases in deposit balances and overdraft fees also
contributed to the growth in non-interest income.
Net interest income before the provision for loan losses was $6,480,000 as
compared to $6,414,000 for the first quarter of 2002. Loan balances have
increased by $7 million since December 31, 2002 and by $35 million since March
31, 2002. The loan growth has been primarily in commercial real estate and
operating loans. Residential real estate loans decreased as customers refinanced
home mortgages with long-term secondary-market loans resulting in increased
liquidity. Deposit balances increased by $2 million since December 31, 2002 and
by $64 million since March 31, 2002 with growth in checking accounts and
certificates of deposit. The Company increased the provision for loan losses to
$250,000 as compared with $125,000 in 2002 with net charge-offs of $132,000 as
compared with $76,000 for the first quarter of 2002.
Non-interest expenses of $6,066,000 have increased when compared to the first
quarter of 2002 primarily as a result of the increased costs associated with
expanding our financial services franchise through the acquisition and
operations of The Checkley Agency, Inc., in January 2002, and the addition of
new banking centers in Maryville and Champaign in November 2002. First quarter
results for the new banking centers have been promising, with solid growth in
loans and deposits. We expect that each banking center will provide a positive
contribution to earnings within the first year of operation.
Our 2003 annual meeting of shareholders will be held at 4:00 p.m. on May 28,
2003 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
Condensed Consolidated Balance Sheets
(In thousands, except share data) (unaudited) March 31, December 31,
2003 2002
------------------ -----------------
Assets
Cash and due from banks $ 21,864 $ 22,437
Federal funds sold and other interest-bearing deposits 47,636 47,220
Investment securities:
Available-for-sale, at fair value 153,174 166,415
Held-to-maturity, at amortized cost (estimated fair
value of $1,824 and $1,927 at March 31, 2003
and December 31, 2002, respectively) 1,797 1,902
Loans 506,756 499,864
Less allowance for loan losses (3,841) (3,723)
------------------ -----------------
Net loans 502,915 496,141
Premises and equipment, net 17,005 16,916
Goodwill, net 9,034 9,034
Intangible assets, net 4,559 4,743
Other assets 9,805 11,432
------------------ -----------------
Total assets $767,789 $776,240
================== =================
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing $ 84,694 $ 84,025
Interest bearing 530,951 529,427
------------------ -----------------
Total deposits 615,645 613,452
Repurchase agreements with customers 38,119 44,184
Other borrowings 39,425 44,625
Other liabilities 6,683 7,172
------------------ -----------------
Total liabilities $699,872 $709,433
Stockholders' Equity:
Common stock ($4 par value; authorized 6,000,000 shares;
Issued 3,634,507 shares in 2003 and 3,603,737 shares in 2002) $14,538 $14,415
Additional paid-in capital 15,153 14,450
Retained earnings 48,257 45,896
Deferred compensation 1,746 1,589
Accumulated other comprehensive income 1,985 2,373
Treasury stock at cost, 472,123 shares in 2003 and 414,562 shares in 2002 (13,762) (11,916)
------------------ -----------------
Total stockholders' equity 67,917 66,807
------------------ -----------------
Total liabilities and stockholders' equity $767,789 $776,240
================== =================
Condensed Consolidated Statements of Income
(In thousands) (unaudited)
For the three months ended March 31, 2003 2002
Interest income:
Interest and fees on loans $8,008 $8,419
Interest on investment securities 1,602 1,906
Interest on federal funds sold and other 110 40
------------- -------------
Total interest income 9,720 10,365
Interest expense:
Interest on deposits 2,698 3,381
Interest on repurchase agreements with customers 64 86
Interest on other borrowings 478 484
------------- -------------
Total interest expense 3,240 3,951
------------- -------------
Net interest income 6,480 6,414
Provision for loan losses 250 125
------------- -------------
Net interest income after provision for loan losses 6,230 6,289
Non-interest income:
Trust revenues 456 478
Brokerage commissions 57 58
Insurance commissions 411 191
Service charges 1,038 737
Securities gains, net 370 43
Mortgage banking revenues 549 326
Other 549 490
------------- -------------
Total non-interest income 3,430 2,323
Non-interest expense:
Salaries and employee benefits 3,314 3,006
Net occupancy and equipment expense 1,063 971
Amortization of intangible assets 184 179
Other 1,505 1,475
------------- -------------
Total non-interest expense 6,066 5,631
------------- -------------
Income before income taxes 3,594 2,981
Income taxes 1,232 972
------------- -------------
Net income $ 2,362 $ 2,009
============= =============
Condensed Consolidated Statements of Changes in Stockholders' Equity
(in thousands) (unaudited)
For the three month period ended March 31, 2003 2002
------------ -----------
Balance at beginning of period $ 66,807 $ 63,925
Net income 2,362 2,009
Issuance of stock 825 738
Purchase of treasury stock (1,689) (524)
Change in accumulated other comprehensive income (loss) (388) (52)
------------ -----------
Balance at end of period $ 67,917 $ 66,096
============ ===========
Per Share Information
(unaudited) March 31, March 31,
2003 2002
--------- ---------
Basic earnings per share $ .74 $ .59
Diluted earnings per share $ .73 $ .59
Book value per share $21.48 $19.54
First Mid-Illinois Bancshares, Inc.
1515 Charleston Avenue
Mattoon, Illinois 61938
(217) 234-7454
www.firstmid.com