-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, L6Nj40B65KllFiP6PWhnqwFpLOnGsqsyrMLGCUXijtDwS6wiLwcd7dKjI37eXsZ6 vaoWPObfPJLAoRqzWBNbaw== 0000700565-04-000093.txt : 20040429 0000700565-04-000093.hdr.sgml : 20040429 20040429103608 ACCESSION NUMBER: 0000700565-04-000093 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040428 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST MID ILLINOIS BANCSHARES INC CENTRAL INDEX KEY: 0000700565 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 371103704 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13368 FILM NUMBER: 04762878 BUSINESS ADDRESS: STREET 1: 1515 CHARLESTON AVE STREET 2: PO BOX 499 CITY: MATTOON STATE: IL ZIP: 61938 BUSINESS PHONE: 2172347454 MAIL ADDRESS: STREET 1: 1515 CHARLESTON AVENUE STREET 2: PO BOX 499 CITY: MATTOON STATE: IL ZIP: 61938 FORMER COMPANY: FORMER CONFORMED NAME: FIRST-MID ILLINOIS BANCSHARES INC DATE OF NAME CHANGE: 19920703 8-K 1 form8k_042804.txt 2004 1ST QTR REPORT 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 28, 2004 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 28, 2004, attached as Exhibit 99, providing information concerning the Registrant's financial statements as of March 31, 2004. Item 7. Financial Statements and Exhibits (c) Exhibits Exhibit 99 - Quarterly shareholder report issued March 31, 2004 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 28, 2004 By: /s/ William S. Rowland William S. Rowland President and Chief Executive Officer EXHIBIT INDEX Exhibit Number Description - -------------------------------------------------------------------------------- 99 Quarterly shareholder report issued April 28, 2004 Exhibit 99 [GRAPHIC OMITTED][GRAPHIC OMITTED] First Mid-Illinois Bancshares, Inc. had an excellent first quarter with diluted earnings per share increasing to $.77 per share as compared to $.73 per share for the first quarter of 2003. Net income increased to $2,389,000 compared to $2,362,000 for the first quarter of 2003. Earnings per share increased more than net income because of our stock buy-back program. In the first quarter of 2004, we acquired 175,818 shares at a total investment of $8,376,000. This program has proven to be an effective way of increasing value for our shareholders. Higher net interest income was the primary factor in earnings growth. Loan balances have increased $44 million since March 31, 2003, which resulted in an improvement in our net interest margin, as well as net interest income. Net interest income increased from $6,480,000 for the first quarter of 2003 to $7,040,000 for the same period in 2004 for an increase of $560,000 or 8.6%. The Company's net interest margin increased to 3.90% on a tax equivalent basis from 3.74% a year earlier. This increase offset the decline in mortgage banking revenue of $396,000 as mortgage refinancings slowed from their early 2003 levels. During the first quarter of 2004, we experienced slight declines in loan balances, an increase in overnight funds and a modest increase in our deposit balances, all generally as a result of the cyclical business activities of many of our core customers. Our provision for loan losses amounted to $187,000 for the first three months of 2004 as compared to $250,000 during the same period last year, with net charge-offs declining to $113,000 for the first three months of 2004 compared to $132,000 for the same period last year. Non-performing loans on March 31, 2004 were $3,269,000 as compared with $3,331,000 on December 31, 2003. We are pleased with the increases we recorded in both trust and brokerage revenue. Revenue from these activities is dependant not only on volume but also on the general levels of the equity markets in the United States and abroad. Since early 2003, our volumes have increased nicely as have the equity markets. Together, these factors resulted in a $213,000 or 42% increase in revenue from our trust and retail brokerage activities. In late 2002, we formed a strategic alliance with WCM Investment Management, Inc. in Carmel, California to improve our overall trust investment and wealth management capabilities. This alliance is working out well and the return on our common trust fund has exceeded the S & P 500 since this alliance was consummated. Non-interest expenses increased by $153,000 compared to the first quarter of 2003 as a result of increased costs for salaries and benefits, and professional fees incurred in implementing the requirements of the Sarbanes-Oxley Act of 2002. Since the passage of Sarbanes-Oxley in 2002, First Mid has undertaken a comprehensive review of all aspects of our corporate governance policies and procedures. During the first quarter of 2004, we issued $10 million of Trust Preferred Securities. Trust Preferred Securities are long-term debt, callable securities which, because of certain equity-like features, qualify as regulatory capital. While we have no specific plans at this point for this additional capital, these funds could be used for stock repurchases, acquisitions or other corporate purposes. Our 2004 annual meeting of stockholders will be held at 4:00 PM on May 26, 2004 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 April 28, 2004 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) March 31, December 31, - -------------------------------------------------------------------------------- 2004 2003 Assets Cash and due from banks $18,340 $20,659 Federal funds sold and other interest-bearing deposits 21,167 4,290 Investment securities: Available-for-sale, at fair value 157,829 176,481 Held-to-maturity, at amortized cost (estimated fair value of $1,651 and $1,687 at March 31, 2004 and December 31, 2003, respectively) 1,567 1,677 Loans 550,832 552,824 Less allowance for loan losses (4,500) (4,426) - -------------------------------------------------------------------------------- Net loans 546,332 548,398 Premises and equipment, net 15,851 16,059 Goodwill, net 9,034 9,034 Intangible assets, net 3,794 3,969 Other assets 10,916 13,078 - -------------------------------------------------------------------------------- Total assets $784,830 $793,645 ================================================================================ Liabilities and Stockholders' Equity Deposits: Non-interest bearing $86,170 $94,723 Interest bearing 537,413 520,269 - -------------------------------------------------------------------------------- Total deposits 623,583 614,992 Repurchase agreements with customers 48,004 59,875 Junior subordinated debentures 10,310 - Other borrowings 30,400 39,925 Other liabilities 6,404 8,258 - -------------------------------------------------------------------------------- Total liabilities 718,701 723,050 - -------------------------------------------------------------------------------- Stockholders' Equity: Common stock ($4 par value; authorized 6,000,000 shares; issued 3,694,040 shares in 2004 and 3,667,887 shares in 2003) 14,776 14,672 Additional paid-in capital 16,898 15,960 Retained earnings 55,333 52,942 Deferred compensation 2,065 1,881 Accumulated other comprehensive income 2,058 1,581 Treasury stock at cost, 710,437 shares in 2004 and 534,619 shares in 2003 (25,001) (16,441) - -------------------------------------------------------------------------------- Total stockholders' equity 66,129 70,595 - -------------------------------------------------------------------------------- Total liabilities and stockholders' equity $784,830 $793,645 ================================================================================ CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands) (unaudited) - -------------------------------------------------------------------------------- For the three month period ended March 31, 2004 2003 Interest income: Interest and fees on loans $8,167 $8,008 Interest on investment securities 1,515 1,602 Interest on federal funds sold and other 45 110 - -------------------------------------------------------------------------------- Total interest income 9,727 9,720 Interest expense: Interest on deposits 2,138 2,698 Interest on repurchase agreements with customers 72 64 Interest on subordinated debt 37 - Interest on other borrowings 440 478 - -------------------------------------------------------------------------------- Total interest expense 2,687 3,240 - -------------------------------------------------------------------------------- Net interest income 7,040 6,480 Provision for loan losses 187 250 - -------------------------------------------------------------------------------- Net interest income after provision for loan losses 6,853 6,230 Non-interest income: Trust revenues 616 456 Brokerage commissions 110 57 Insurance commissions 430 424 Service charges 1,124 1,038 Securities gains, net 0 370 Mortgage banking revenues 94 490 Other 524 465 - -------------------------------------------------------------------------------- Total non-interest income 2,898 3,300 Non-interest expense: Salaries and employee benefits 3,338 3,231 Net occupancy and equipment expense 1,073 1,063 Amortization of intangible assets 175 184 Other 1,582 1,458 - -------------------------------------------------------------------------------- Total non-interest expense 6,168 5,936 - -------------------------------------------------------------------------------- Income before income taxes 3,583 3,594 Income taxes 1,194 1,232 - -------------------------------------------------------------------------------- Net income $2,389 $2,362 ================================================================================ Per Share Information (unaudited) - -------------------------------------------------------------------------------- For the three month period ended March 31, 2004 2003 Basic earnings per share $0.78 $0.74 Diluted earnings per share $0.77 $0.73 Book value per share $22.16 $21.48 Market price of stock $48.00 $28.90 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (In thousands) (unaudited) - -------------------------------------------------------------------------------- For the three month period ended March 31, 2004 2003 Balance at beginning of year $70,595 $66,807 Net income 2,389 2,362 Dividends on stock Issuance of stock 1,044 825 Purchase of treasury stock (8,376) (1,689) Changes in accumulated other comprehensive income (loss) 477 (388) - -------------------------------------------------------------------------------- Balance at end of year $66,129 $67,917 ================================================================================ -----END PRIVACY-ENHANCED MESSAGE-----