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): | |||
OCTOBER 25, 2016 | |||
FIRST MID-ILLINOIS BANCSHARES, INC. | |||
(Exact name of registrant as specified in its charter) | |||
Delaware | 0-13368 | 37-1103704 | |
(State of other jurisdiction | (Commission File Number) | (IRS Employer | |
of incorporation) | Identification No.) | ||
1421 CHARLESTON AVENUE | |||
MATTOON, IL | 61938 | ||
(Address of principal executive offices) | (Zip Code) | ||
(217) 234-7454 | |||
(Registrant’s telephone number, including area code) |
[X] | 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)) |
Exhibit | |
Number | Description |
99 | Quarterly Report to Stockholders |
▪ | Completion of First Clover Leaf Financial Corp. Acquisition and Retention of Market Team |
▪ | Growth in Net Income, Earnings Per Share, and Dividends Per Share |
▪ | Continued Strong Asset Quality Metrics |
▪ | Increased Daily Trading Volume and Enhanced Liquidity in First Mid Stock |
Third Quarter 2016 Financial Results | |||||||||||
FIRST MID-ILLINOIS BANCSHARES, INC. | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(In thousands) | (unaudited) | (unaudited) | |||||||||
September 30, | December 31, | September 30, | |||||||||
2016 | 2015 | 2015 | |||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 123,037 | $ | 115,784 | $ | 215,463 | |||||
Investment securities | 684,571 | 629,056 | 552,591 | ||||||||
Loans (including loans held for sale) | 1,806,745 | 1,281,889 | 1,236,749 | ||||||||
Less allowance for loan losses | (16,161 | ) | (14,576 | ) | (14,228 | ) | |||||
Net loans | 1,790,584 | 1,267,313 | 1,222,521 | ||||||||
Premises and equipment, net | 40,695 | 31,340 | 31,582 | ||||||||
Goodwill and intangibles, net | 71,209 | 50,004 | 47,362 | ||||||||
Bank Owned Life Insurance | 41,031 | — | — | ||||||||
Other assets | 32,821 | 21,002 | 22,509 | ||||||||
Total assets | $ | 2,783,948 | $ | 2,114,499 | $ | 2,092,028 | |||||
Liabilities and Stockholders’ Equity | |||||||||||
Deposits: | |||||||||||
Non-interest bearing | $ | 431,480 | $ | 342,636 | $ | 331,206 | |||||
Interest bearing | 1,833,779 | 1,389,932 | 1,400,654 | ||||||||
Total deposits | 2,265,259 | 1,732,568 | 1,731,860 | ||||||||
Repurchase agreements with customers | 127,432 | 128,842 | 108,499 | ||||||||
Other borrowings | 72,109 | 20,000 | 20,000 | ||||||||
Junior subordinated debentures | 23,892 | 20,620 | 20,620 | ||||||||
Other liabilities | 7,991 | 7,460 | 7,240 | ||||||||
Total liabilities | 2,496,683 | 1,909,490 | 1,888,219 | ||||||||
Total stockholders’ equity | 287,265 | 205,009 | 203,809 | ||||||||
Total liabilities and stockholders’ equity | $ | 2,783,948 | $ | 2,114,499 | $ | 2,092,028 |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | |||||||
(in thousands) (unaudited) | Nine months ended | ||||||
September 30, | |||||||
2016 | 2015 | ||||||
Balance at beginning of period | $ | 205,009 | $ | 164,916 | |||
Net income | 15,043 | 11,858 | |||||
Dividends on preferred stock and common stock | (5,343 | ) | (3,680 | ) | |||
Issuance of preferred and common stock | 66,906 | 28,806 | |||||
Purchase of treasury stock | — | (1,041 | ) | ||||
Deferred compensation and other adjustments | 297 | 214 | |||||
Changes in accumulated other comprehensive income | 5,353 | 2,736 | |||||
Balance at end of period | $ | 287,265 | $ | 203,809 |
Third Quarter 2016 Financial Results | |||||||||||||||
FIRST MID-ILLINOIS BANCSHARES, INC. | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(In thousands, except per share data) (unaudited) | |||||||||||||||
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest income: | |||||||||||||||
Interest and fees on loans | $ | 15,294 | $ | 12,198 | $ | 42,496 | $ | 34,974 | |||||||
Interest on investment securities | 3,229 | 2,682 | 9,622 | 7,473 | |||||||||||
Interest on federal funds sold & other deposits | 100 | 63 | 367 | 107 | |||||||||||
Total interest income | 18,623 | 14,943 | 52,485 | 42,554 | |||||||||||
Interest expense: | |||||||||||||||
Interest on deposits | 623 | 645 | 1,777 | 1,690 | |||||||||||
Interest on repurchase agreements with customers | 23 | 14 | 62 | 43 | |||||||||||
Interest on other borrowings | 192 | 156 | 510 | 479 | |||||||||||
Interest on subordinated debt | 162 | 132 | 456 | 390 | |||||||||||
Total interest expense | 1,000 | 947 | 2,805 | 2,602 | |||||||||||
Net interest income | 17,623 | 13,996 | 49,680 | 39,952 | |||||||||||
Provision for loan losses | 1,081 | 481 | 1,927 | 889 | |||||||||||
Net interest income after provision for loan losses | 16,542 | 13,515 | 47,753 | 39,063 | |||||||||||
Non-interest income: | |||||||||||||||
Trust revenues | 774 | 795 | 2,549 | 2,575 | |||||||||||
Brokerage commissions | 526 | 329 | 1,440 | 913 | |||||||||||
Insurance commissions | 738 | 459 | 2,806 | 1,568 | |||||||||||
Service charges | 1,824 | 1,536 | 4,977 | 4,003 | |||||||||||
Securities gains, net | 466 | 1 | 1,130 | 231 | |||||||||||
Mortgage banking revenues | 382 | 172 | 715 | 549 | |||||||||||
ATM / debit card revenue | 1,457 | 1,200 | 4,418 | 3,224 | |||||||||||
Other | 731 | 517 | 1,966 | 1,282 | |||||||||||
Total non-interest income | 6,898 | 5,009 | 20,001 | 14,345 | |||||||||||
Non-interest expense: | |||||||||||||||
Salaries and employee benefits | 7,844 | 6,522 | 23,293 | 18,875 | |||||||||||
Net occupancy and equipment expense | 2,864 | 2,424 | 8,389 | 6,329 | |||||||||||
Amortization of intangible assets | 455 | 155 | 1,312 | 466 | |||||||||||
Legal and professional expense | 713 | 660 | 2,414 | 1,842 | |||||||||||
Other | 3,444 | 3,121 | 9,226 | 7,404 | |||||||||||
Total non-interest expense | 15,320 | 12,882 | 44,634 | 34,916 | |||||||||||
Income before income taxes | 8,120 | 5,642 | 23,120 | 18,492 | |||||||||||
Income taxes | 2,812 | 1,979 | 8,077 | 6,634 | |||||||||||
Net income | $ | 5,308 | $ | 3,663 | $ | 15,043 | $ | 11,858 | |||||||
Per Share Information | |||||||||||||||
Basic earnings per common share | $ | 0.51 | $ | 0.37 | $ | 1.52 | $ | 1.35 | |||||||
Diluted earnings per common share | 0.51 | 0.37 | 1.50 | 1.33 | |||||||||||
Dividends per common share | 0.16 | — | 0.46 | 0.29 |
Third Quarter 2016 Financial Results | ||||||||
FIRST MID-ILLINOIS BANCSHARES, INC. | ||||||||
SELECTED FINANCIAL HIGHLIGHTS | As of | |||||||
(unaudited) | (unaudited) | |||||||
September 30, | December 31, | September 30, | ||||||
2016 | 2015 | 2015 | ||||||
SHARE AND PER COMMON SHARE DATA | ||||||||
Book value per common share | $23.06 | $21.01 | $20.95 | |||||
Tangible book value per common share (1) | $17.34 | $15.09 | $15.32 | |||||
Common shares outstanding | 12,457,462 | 8,453,967 | 8,421,472 | |||||
Market price of stock | $27.26 | $26.00 | $22.00 | |||||
REGULATORY CAPITAL RATIOS | ||||||||
Leverage ratio | 11.02 | % | 9.20 | % | 10.21 | % | ||
Total capital to risk-weighted assets | 12.85 | % | 14.25 | % | 14.88 | % | ||
Tier 1 capital to risk-weighted assets | 12.08 | % | 13.23 | % | 13.84 | % | ||
Common equity tier 1 capital to risk weighted assets (2) | 10.90 | % | 9.92 | % | 10.36 | % | ||
Preferred stockholders' equity | $0 | $27,400,000 | $27,400,000 | |||||
Common stockholders' equity | $287,265,000 | $177,609,000 | $176,409,000 | |||||
ASSET QUALITY | ||||||||
Allowance for loan losses to non-performing loans | 102 | % | 363 | % | 405 | % | ||
Allowance for loan losses to total loans outstanding | 0.89 | % | 1.14 | % | 1.15 | % | ||
Total YTD net charge-offs (3) | $343,000 | $424,000 | $343,000 | |||||
Total non-performing loans and other real estate owned | $17,888,000 | $4,491,000 | $3,831,000 | |||||
Three months ended (unaudited) | Nine months ended (unaudited) | |||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||
PERFORMANCE RATIOS (3) | ||||||||||||||
Return on average assets (4) | 0.92 | % | 0.93 | % | 0.78 | % | 0.92 | % | 0.92 | % | ||||
Return on average common equity (4) | 9.02 | % | 9.44 | % | 7.17 | % | 9.34 | % | 8.86 | % | ||||
Net interest margin, TE (5) | 3.40 | % | 3.37 | % | 3.23 | % | 3.38 | % | 3.40 | % | ||||
(1) | A non-GAAP metric defined as total common equity less goodwill and intangibles divided by common shares outstanding as of period end |
(2) | A non-GAAP metric defined as total common equity adjusted for gains/(losses) less goodwill and intangibles divided by risk weighted assets as of period end |
(3) | Financial information is provided as of the date listed except Performance Ratios and Total Net charge-offs which are as of the period ending on the date listed |
(4) | Net income is annualized for period |
(5) | A non-GAAP net interest margin on a tax equivalent basis (TE), where the interest earned on tax-exempt securities and loans is adjusted to an amount comparable to interest subject to normal income taxes assuming a federal tax rate of 35% |
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