-----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, SuLlIpscDvMsUlvwlGn2c7S0IPsZVSZ7p/F1uF925vXKmDJPcfxyil7Sx5yMKwor 9Ja1yP0ByL4VXkMYcpPuAA== 0000700565-06-000109.txt : 20061108 0000700565-06-000109.hdr.sgml : 20061108 20061108095228 ACCESSION NUMBER: 0000700565-06-000109 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20060930 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061108 DATE AS OF CHANGE: 20061108 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: 061195771 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_110806.txt 2006 3RD 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): SEPTEMBER 30, 2006 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 of Principal Executive Offices) (Zip Code) (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 November 8, 2006, attached as Exhibit 99, providing information concerning the Registrant's financial statements as of September 30, 2006. Item 9.01. Financial Statements and Exhibits (d) Exhibits Exhibit 99 - Quarterly shareholder report as of and for the period ending September 30, 2006 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: November 8, 2006 /s/ William S. Rowland William S. Rowland Chairman and Chief Executive Officer INDEX TO EXHIBITS Exhibit Number Description - -------------------------------------------------------------------------------- 99 Quarterly shareholder report issued November 8, 2006 Exhibit 99 [GRAPHIC OMITTED][GRAPHIC OMITTED] The financial performance of First Mid-Illinois Bancshares, Inc. was good during the first nine months of 2006 with diluted earnings per share increasing 4% to $1.66 compared to $1.59 per share during the same period in 2005. Net income increased to $7,359,000 for the first nine months of 2006 compared to $7,242,000 for the first nine months of 2005. On May 1, 2006, we completed the acquisition of Peoples State Bank of Mansfield. This means that the 2006 consolidated financial statements include the results of Peoples since that date. I am pleased to report that for the first five months of operation Peoples has provided a positive contribution to earnings. In addition, the integration and combination of Peoples into First Mid-Illinois Bank & Trust, N.A. was completed as scheduled during the third quarter. Net interest income is our largest source of revenue and increased to $22,748,000 for the first nine months of 2006 from $21,546,000 for the same period last year. This increase is the result of growth resulting from the Peoples acquisition as well as organic growth. A challenging rate environment and intense competition for loans and deposits has led to contraction of the net interest margin. Our net interest margin for 2006 is 3.50% as compared to 3.69% for the first nine months of 2005. Loan balances on September 30, 2006 were $727 million as compared to $638 million on December 31, 2005 with the majority of this growth in commercial real estate loans. Additionally, $55 million in loan balances were added with the Peoples acquisition. Deposit balances on September 30, 2006 were $791 million compared to $649 million on December 31, 2005 with $114 million added with Peoples. Non-interest income amounted to $9,824,000 for the first nine months of 2006 compared to $9,381,000 in 2005. Increases in long-term interest rates led to a decline in mortgage banking revenues, but service charge income from deposit accounts and insurance commissions increased. During the first nine months of 2005, we recognized $315,000 in gains on the sales of securities whereas we recognized only $66,000 in gains during the first nine months of 2006 due to the interest rate environment and investment portfolio liquidity requirements. Non-interest expense increased to $20,947,000 compared with $19,193,000 in 2005. This increase is primarily attributed to the Peoples acquisition. In addition, we began expensing stock options in 2006 per new accounting regulations. This accounting change resulted in additional compensation expense of $135,000 being recorded in the first nine months of 2006. In previous years, this amount has been shown only in the footnotes to the financial statements. We continue to stress the importance of credit quality. Total non-performing assets were $4.2 million on September 30, 2006 as compared to $3.8 million on September 30, 2005. Our provision for loan losses amounted to $575,000 for the first nine months of 2006 as compared to $550,000 for the first nine months of 2005. Net charge-offs were $652,000 for the first nine months of 2006 compared to $497,000 for the same period last year. In addition to the growth of our balance sheet and growth in the number of banking locations, I am pleased to report that we continue to move forward with opportunities to add to the expertise and depth of professional bankers in our Company. With our expansion in Champaign and Piatt counties through the Peoples acquisition, we have added Mitchel Swim to our commercial banking team. Mitch is a Mahomet resident and brings over 16 years of lending experience. In addition, we have added Stacy Womack as Vice President of Employee Benefits. Stacy brings a wealth of experience in assisting customers with group health insurance and employee benefit plans. Stacy has over 16 years of experience in this business. We have also recently added William Drake to lead our retail lending efforts in Madison and St. Clair Counties. Bill has 21 years of banking experience with a large regional bank. The addition of these quality individuals demonstrates our desire to provide the expertise needed to determine the best financial solutions for our customers. I would like to also thank Bob Swift for his years of service with First Mid. Bob recently announced that he will be resigning from First Mid in December to take a position with a bank in Colorado. We wish him well in his new position. Susan Young, one of our Senior Vice-Presidents, will assume the leadership responsibilities for the trust and wealth management division. Susan has managed operations for the area for the past several years and provides a wealth of experience in investment, tax, and estate planning. Thank you for your continued support of First Mid-Illinois Bancshares, Inc. Sincerely, /s/ William S. Rowland Chairman and Chief Executive Officer November 8, 2006 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) Sep 30, Dec 31, - -------------------------------------------------------------------------------- 2006 2005 Assets Cash and due from banks $17,688 $19,131 Federal funds sold and other interest-bearing deposits 476 426 Investment securities: Available-for-sale, at fair value 197,815 155,841 Held-to-maturity, at amortized cost (estimated fair value of $1,365 and $1,442 at September 30, 2006 and December 31, 2005, respectively) 1,343 1,412 Loans 726,954 638,133 Less allowance for loan losses (5,976) (4,648) - -------------------------------------------------------------------------------- Net loans 720,978 633,485 Premises and equipment, net 16,536 15,168 Goodwill, net 17,363 9,034 Intangible assets, net 5,364 2,778 Other assets 15,923 13,298 - -------------------------------------------------------------------------------- Total assets $993,486 $850,573 ================================================================================ Liabilities and Stockholders' Equity Deposits: Non-interest bearing $111,750 $95,305 Interest bearing 679,004 553,764 - -------------------------------------------------------------------------------- Total deposits 790,754 649,069 Repurchase agreements with customers 55,031 67,380 Other borrowings 44,200 44,500 Junior subordinated debentures 20,620 10,310 Other liabilities 7,151 6,988 - -------------------------------------------------------------------------------- Total liabilities 917,756 778,247 - -------------------------------------------------------------------------------- Stockholders' Equity: Common stock ($4 par value; authorized 18,000,000 shares; issued 5,688,404 shares in 2006 and 5,633,621 shares in 2005) 22,753 22,534 Additional paid-in capital 21,109 19,439 Retained earnings 67,098 60,867 Deferred compensation 2,610 2,440 Accumulated other comprehensive income (152) (739) Treasury stock at cost, 1,369,808 shares in 2006 and 1,241,359 shares in 2005 (37,688) (32,215) - -------------------------------------------------------------------------------- Total stockholders' equity 75,730 72,326 - -------------------------------------------------------------------------------- Total liabilities and stockholders' equity $993,486 $850,573 ================================================================================ CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands) (unaudited) - -------------------------------------------------------------------------------- For the nine months ended September 30, 2006 2005 Interest income: Interest and fees on loans $34,169 $27,894 Interest on investment securities 5,937 4,618 Interest on federal funds sold and other 208 218 - -------------------------------------------------------------------------------- Total interest income 40,314 32,730 Interest expense: Interest on deposits 13,091 8,318 Interest on repurchase agreements with customers 1,665 997 Interest on subordinated debt 1,890 1,408 Interest on other borrowings 920 461 - -------------------------------------------------------------------------------- Total interest expense 17,566 11,184 - -------------------------------------------------------------------------------- Net interest income 22,748 21,546 Provision for loan losses 575 550 - -------------------------------------------------------------------------------- Net interest income after provision for loan losses 22,173 20,996 Non-interest income: Trust revenues 1,801 1,756 Brokerage commissions 418 284 Insurance commissions 1,343 1,264 Service charges 3,897 3,420 Securities gains, net 66 315 Mortgage banking revenues 288 605 Other 2,011 1,737 - -------------------------------------------------------------------------------- Total non-interest income 9,824 9,381 Non-interest expense: Salaries and employee benefits 11,391 10,223 Net occupancy and equipment expense 3,570 3,199 Amortization of intangible assets 545 430 Other 5,441 5,341 - -------------------------------------------------------------------------------- Total non-interest expense 20,947 19,193 - -------------------------------------------------------------------------------- Income before income taxes 11,050 11,184 Income taxes 3,691 3,942 - -------------------------------------------------------------------------------- Net income $7,359 $7,242 ================================================================================ Per Share Information (unaudited) - -------------------------------------------------------------------------------- For the nine months ended September 30, 2006 2005 Basic earnings per share $1.69 $1.63 Diluted earnings per share $1.66 $1.59 Book value per share at September 30 $17.54 $16.35 Market price of stock at September 30 $41.50 $41.00 CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (In thousands) (unaudited) - -------------------------------------------------------------------------------- For the nine months ended September 30, 2006 2005 Balance at beginning of period $72,326 $69,154 Net income 7,359 7,242 Dividends on stock (1,128) (1,056) Issuance of stock 1,481 1,544 Purchase of treasury stock (5,303) (4,304) Deferred compensation adjustment 408 140 Changes in accumulated other comprehensive income (loss) 587 (745) - -------------------------------------------------------------------------------- Balance at end of period $75,730 $71,975 ================================================================================ -----END PRIVACY-ENHANCED MESSAGE-----