8-K 1 form8k_012903.txt 2002 4TH QUARTER EARNINGS 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): JANUARY 29, 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 January 29, 2003, attached as Exhibit 99, providing information concerning the Registrant's financial statements as of December 31, 2002. Item 7. Financial Statements and Exhibits (c) Exhibits Exhibit 99 - Quarterly shareholder report issued January 29, 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: January 29, 2003 By: /s/ William S. Rowland ----------------------------- William S. Rowland President and Chief Executive Officer EXHIBIT INDEX Exhibit Number Description 99 Quarterly shareholder report issued January 29, 2003 Exhibit 99 January 29, 2003 Quarterly Report to the Owners, First Mid-Illinois Bancshares, Inc. We are pleased to report that First Mid-Illinois Bancshares, Inc. had a successful 2002 with diluted earnings per share increasing to $2.38 per share as compared to $1.92 per share in 2001, a 24 percent increase. Net income increased to $8,034,000 in 2002 as compared to $6,516,000 in 2001. As a result of this performance, the Company increased its annual dividend to $.50 per share in 2002 from $.43 per share in 2001. Effective January 1, 2002, the Company adopted Statements of Financial Accounting Standards Numbers 142 and 147 and ceased amortization of goodwill from business combinations. The adoption of these accounting standards increased 2002 diluted earnings per share by $.17 per diluted share. Net interest income before provision for loan losses was $26,726,000 for 2002 as compared to $23,916,000 in 2001, representing an increase of $2,810,000. An increase in the net interest margin and growth in net average earning assets helped to increase 2002 profitability. The Company's tax equivalent net interest margin for 2002 increased to 4.09% as compared to 3.99% in 2001 due to growth in the loan portfolio and lower funding costs. Loan balances increased by $26.6 million during the year. The loan growth was primarily in commercial and commercial real estate loans. The Company incurred net charge-offs of $1,054,000 in 2002 as compared with $435,000 for 2001. The increase in net charge-offs led management to increase the provision for loan losses to $1,075,000 for 2002 as compared with $600,000 in 2001. Non-interest income was $10,832,000 for 2002 as compared to $8,672,000 in 2001. The increase was primarily the result of increased insurance commission revenue generated since the purchase of The Checkley Agency, Inc., in January, 2002, growth in deposit service charges as a result of increases in deposit balances and overdraft fees, and a lower interest rate environment that has led to increased mortgage loan originations and sales. Non-interest expenses of $24,444,000 increased by $2,012,000 when compared to 2001 primarily as a result of the increased costs associated with the acquisition and operations of Checkley and the operations of the Highland banking center acquired in April 2001. In addition, expenses associated with the opening of new locations in Champaign and Maryville were incurred in 2002. During 2002, we acquired 240,346 shares of our own stock in open market and through privately-negotiated transactions. These acquisitions of stock were made under a share repurchase program which we initiated in 1998 and which is ongoing. For additional information about the program, please contact Ms. Christie Burich, Vice-President and Director of Shareholder Services, at (217) 258-0493 or by email at cburich@firstmid.com. Thank you for your continued support and confidence in First Mid-Illinois Bancshares, Inc. Sincerely, \s\William S. Rowland William S. Rowland Chairman and Chief Executive Officer
Condensed Consolidated Balance Sheets (In thousands, except share data) (unaudited) December 31, December 31, 2002 2001 Assets Cash and due from banks $ 42,432 $ 28,871 Federal funds sold 27,225 4,225 Investment securities: Available-for-sale, at fair value 166,415 160,096 Held-to-maturity, at amortized cost (estimated fair value of $1,927 and $2,136 at December 31, 2002 and December 31, 2001, respectively) 1,902 2,071 Loans 499,864 473,243 Less allowance for loan losses (3,723) (3,702) ---------------- ---------------- Net loans 496,141 469,541 Premises and equipment, net 16,916 16,656 Goodwill, net 9,034 9,034 Intangible assets, net 4,586 3,358 Other assets 11,589 12,127 ---------------- ---------------- Total assets $776,240 $705,979 ================ ================ Liabilities and Stockholders' Equity Deposits: Non-interest bearing $ 84,025 $ 80,265 Interest bearing 529,427 479,155 ---------------- ---------------- Total deposits 613,452 559,420 Repurchase agreements with customers 44,184 38,879 Other borrowings 44,625 37,625 Other liabilities 7,172 6,130 ---------------- ---------------- Total liabilities $709,433 $642,054 ---------------- ---------------- Stockholders' Equity: Common stock ($4 par value; authorized 6,000,000 shares; issued 3,603,737 shares in 2002 and 3,546,060 shares in 2001) $14,415 $14,184 Additional paid-in-capital 14,450 13,288 Retained earnings 45,896 39,500 Deferred compensation 1,589 1,392 Accumulated other comprehensive income 2,373 740 Treasury stock at cost, 414,562 shares in 2002 and 174,216 shares in 2001 (11,916) (5,179) ---------------- ---------------- Total stockholders' equity 66,807 63,925 ---------------- ---------------- Total liabilities and stockholders' equity $776,240 $705,979 ================ ================
Condensed Consolidated Statements of Income (In thousands) (unaudited) For the year ended December 31, 2002 2001 Interest income: Interest and fees on loans $33,726 $ 36,877 Interest on investment securities 7,325 8,294 Interest on federal funds sold and other 336 335 ----------- ----------- Total interest income 41,387 45,506 Interest expense: Interest on deposits 12,253 18,773 Interest on repurchase agreements with customers 345 915 Interest on other borrowings 2,063 1,902 ----------- ----------- Total interest expense 14,661 21,590 ----------- ----------- Net interest income 26,726 23,916 ----------- ----------- Provision for loan losses 1,075 600 ----------- ----------- Net interest income after provision for loan losses 25,651 23,316 Non-interest income: Trust revenues 1,855 1,924 Brokerage commissions 265 234 Insurance commissions 1,182 122 Service charges 3,799 3,122 Securities gains, net 223 208 Mortgage banking revenues 1,514 1,156 Other 1,994 1,906 ----------- ----------- Total non-interest income 10,832 8,672 Non-interest expense: Salaries and employee benefits 12,732 11,116 Net occupancy and equipment expense 4,055 3,909 Amortization of goodwill -- 704 Amortization of intangible assets 676 524 Other 6,981 6,179 ----------- ----------- Total non-interest expense 24,444 22,432 ----------- ----------- Income before income taxes 12,039 9,556 ----------- ----------- Income taxes 4,005 3,040 ----------- ----------- Net income $ 8,034 $ 6,516 =========== =========== Condensed Consolidated Statements of Changes in Stockholders' Equity (In thousands) (unaudited) For the year ended December 31, 2002 2001 Balance at beginning of year $ 63,925 $ 57,727 Net income 8,034 6,516 Dividends on stock (1,640) (1,460) Issuance of stock 1,394 1,151 Purchase of treasury stock (6,540) (1,037) Change in accumulated other comprehensive income 1,634 1,028 ------------ ------------ Balance at end of year $ 66,807 $ 63,925 ============ ============ Per Share Information (unaudited) For the year ended December 31, 2002 2001 Basic earnings per share $ 2.39 $ 1.93 Diluted earnings per share $ 2.38 $ 1.92 Book value per share $ 20.95 $ 18.96 First Mid-Illinois Bancshares, Inc. 1515 Charleston Avenue Mattoon, Illinois 61938 (217) 234-7454 www.firstmid.com