EX-99.2 4 exhibit99-2_111710.htm EX 99.2 PRO FORMA FINANCIAL INFORMATION exhibit99-2_111710.htm
Exhibit 99.2

(b)      Pro Forma Financial Information.

The following pro forma financial information is the result of combining the Company's reported historical financial information with the First Bank Branches historical financial information and making adjustments to the combined information to reflect events that have occurred or that are assumed to have occurred because of the acquisition. The pro forma information should be read in conjunction with the Company’s previously reported historical financial statements and the First Bank Branches financial statements included in this filing.

The pro forma condensed consolidating statements do not assume or include any possible cost savings or revenue opportunities that may be realized as a result of the combination. This condensed consolidating pro forma information is provided for illustrative purposes only and is not necessarily indicative of the results of operations or financial position which would have resulted if the combination had been effected at the beginning of the periods presented or as of the date indicated or the financial position or results of operation which we might obtain in the future.

The following pro forma condensed combined financial information presents the financial position of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the acquisition taken place at the dates identified (in thousands):


(Unaudited)
        
First Bank
    
Pro Forma
              
As of June 30, 2010
  
First Mid
    
Branches
    
Transactions
    
Note
    
Pro Forma
  
Assets
                              
   Cash and cash equivalents
   $ 102,907     $ 1,673     $ -           $ 104,580  
   Investment securities
     276,570       -       -             276,570  
   Loans, net
     664,580       131,327       (2,102 )     A       793,805  
   Interdivisional investment funds
     -       196,739       (15,610 )     B       181,129  
   Interest receivable
     5,645       681       -               6,326  
   Premises and equipment
     15,163       5,274       7,685       C       28,122  
   Goodwill
     17,363       -       8,390       D       25,753  
   Intangible assets
     2,480       -       3,050       E       5,530  
   Other assets
     24,571       -       -               24,571  
Total assets
   $ 1,109,279     $ 335,694     $ 1,413             $ 1,446,386  
                                         
Liabilities
                                        
   Deposits
   $ 869,169     $ 334,844     $ 1,413       F     $ 1,205,426  
   Repurchase agreements with customers
     73,758       343       -               74,101  
   Interest payable
     719       226       -               945  
   Borrowings and other debt
     44,870       -       -               44,870  
   Other liabilities
     5,376       281       -               5,657  
Total liabilities
     993,892       335,694     $ 1,413               1,330,999  
Stockholders’ equity
     115,387       -       -               115,387  
Total liabilities and stockholders’ equity
   $ 1,109,279     $ 335,694     $ 1,413             $ 1,446,386  



 
 
 


         
First Bank
    
Pro Forma
              
As of December 31, 2009
  
First Mid
    
Branches
    
Transactions
    
Note
    
Pro Forma
  
Assets
                              
   Cash and cash equivalents
   $ 90,411     $ 1,655     $ -           $ 92,066  
   Investment securities
     253,596       -       -             253,596  
   Loans, net
     691,288       140,392       (2,102 )     A       829,578  
   Interdivisional investment funds
     -       171,171       (15,610 )     B       155,561  
   Interest receivable
     6,871       760       -               7,631  
   Premises and equipment
     15,487       5,559       7,685       C       28,731  
   Goodwill
     17,363       -       8,390       D       25,753  
   Intangible assets
     2,832       -       3,050       E       5,882  
   Other assets
     17,307       -       -               17,307  
Total assets
   $ 1,095,155     $ 319,537     $ 1,413             $ 1,416,105  
                                         
Liabilities
                                        
   Deposits
   $ 840,409     $ 318,317     $ 1,413       F     $ 1,160,139  
   Repurchase agreements with customers
     80,387       612       -               80,999  
   Interest payable
     861       351       -               1,212  
   Borrowings and other debt
     53,370       -       -               53,370  
   Other liabilities
     8,907       257       -               9,164  
Total liabilities
     983,934       319,537     $ 1,413               1,304,884  
Stockholders’ equity
     111,221       -       -               111,221  
Total liabilities and stockholders’ equity
   $ 1,095,155     $ 319,537     $ 1,413             $ 1,416,105  
                                         



Notes:
 
A
The difference between the fair value and acquired value of the acquired loans on the date of the acquisition. This amount is being accreted to interest income over the remaining term of the loans.

B
Core deposit premium paid (4.77% of core deposits).

C
The difference between the fair value and acquired value of the premises and equipment acquired on the date of the acquisition.

D
Goodwill resulting from acquisition.

E
Core deposit intangible asset. This amount is being amortized to other expense on a accelerated basis over the estimated life of ten years.

F
The difference between the fair value and acquired value of the acquired time deposits on the date of the acquisition. This amount is being amortized to interest expense over the remaining term of the time deposits.


 
 
 
 

The following pro forma condensed combined financial information presents the results of operations of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the acquisition taken place at the beginning of each period (in thousands):


         
First Bank
    
Pro Forma
              
For the year ended December 31, 2009
  
First Mid
    
Branches
    
Transactions
    
Note
    
Pro Forma
  
Net interest income
   $ 35,572     $ 5,032     $ 2,057       A, B, C     $ 42,661  
Provision for loan losses
     3,594       -       1,000       D       4,594  
Non-interest income
     13,455       2,633       -               16,088  
Non-interest expense
     33,212       7,583       1,782       E, F, G       42,577  
   Income before taxes
     12,221       82       (725 )             11,578  
Income tax expense (benefit)
     4,007       29       (254 )     H       3,782  
   Net income (loss)
   $ 8,214     $ 53     $ (471 )           $ 7,796  
Dividends on preferred shares
     1,821       -       -               1,821  
Net income available to common stockholders
   $ 6,393     $ 53     $ (471 )           $ 5,975  
                                         
Earnings per share:
                                        
   Basic
   $ 1.04                             $ .97  
   Diluted
   $ 1.04                             $ .97  
                                         
Basic weighted average shares
     6,131,314                               6,131,314  
Diluted weighted average shares
     6,167,193                               6,167,193  




(Unaudited)
        
First Bank
    
Pro Forma
              
For the six months ended June 30, 2010
  
First Mid
    
Branches
    
Transactions
    
Note
    
Pro Forma
  
Net interest income
   $ 18,801     $ 3,137     $ 1,450       A, B, C     $ 23,388  
Provision for loan losses
     1,843       -       600       D       2,443  
Non-interest income
     6,111       1,225       -               7,336  
Non-interest expense
     16,498       3,624       1,271       E, F, G       21,393  
   Income before taxes
     6,571       738       (421 )             6,888  
Income tax expense (benefit)
     2,241       258       (147 )     H       2,352  
   Net income (loss)
   $ 4,330     $ 480     $ (274 )           $ 4,536  
Dividends on preferred shares
     1,131       -       -               1,131  
Net income available to common stockholders
   $ 3,199     $ 480     $ (274 )           $ 3,405  
                                         
Earnings per share:
                                        
   Basic
   $ .52                             $ .56  
   Diluted
   $ .52                             $ .56  
                                         
Basic weighted average shares
     6,099,922                               6,099,922  
Diluted weighted average shares
     6,128,107                               6,128,107  



 
 
 


(Unaudited)
        
First Bank
    
Pro Forma
              
For the six months ended June 30, 2009
  
First Mid
    
Branches
    
Transactions
    
Note
    
Pro Forma
  
Net interest income
   $ 17,095     $ 2,232     $ 1,450       A, B, C     $ 20,777  
Provision for loan losses
     1,242       -       600       D       1,842  
Non-interest income
     7,327       1,278       -               8,605  
Non-interest expense
     16,998       3,907       1,466       E, F, G       22,371  
   Income before taxes
     6,182       (397 )     (616 )             5,169  
Income tax expense (benefit)
     1,998       (139 )     (216 )     H       1,643  
   Net income (loss)
   $ 4,184     $ (258 )   $ (400 )           $ 3,526  
Dividends on preferred shares
     775       -       -               775  
Net income available to common stockholders
   $ 3,409     $ (258 )   $ (400 )           $ 2,751  
                                         
Earnings per share:
                                        
   Basic
   $ .56                             $ .45  
   Diluted
   $ .55                             $ .45  
                                         
Basic weighted average shares
     6,133,420                               6,133,420  
Diluted weighted average shares
     6,178,132                               6,178,132  



Notes:
 
A
To reflect the accretion of the discount on loans acquired.

B
To reflect the amortization of the premium on time deposits acquired.

C
To reflect the decrease in interest income on interdivisional investments funds as a result of deposit premium paid.

D
To reflect additional provision for loan losses for the loans acquired.

E
To reflect amortization of the core deposit intangible asset.

F
To reflect additional depreciation from adjustment to market value of premises and equipment acquired.

G
To adjust for one-time acquisition costs for investment banker fees, legal fees, accounting fees and other miscellaneous expenses resulting from the transaction.

H
Tax effect of pro forma adjustments at an estimated tax rate of 35%.