Deferred Compensation Plan (Notes)

12 Months Ended

Dec. 31, 2018

Deferred Compensation Plan [Abstract]

Deferred Compensation Plan

Deferred Compensation Plan

The Company follows the provisions of ASC 710, for purposes of the First Mid-Illinois Bancshares, Inc. Deferred Compensation Plan (“DCP”).  At December 31, 2018, the Company classified the cost basis of its common stock issued and held in trust in connection with the DCP of approximately $3,548,000 as treasury stock.  The Company also classified the cost basis of its related deferred compensation obligation of approximately $3,548,000 as an equity instrument (deferred compensation).

The DCP was effective as of June 1984. The purpose of the DCP is to enable directors, advisory directors, and key employees the opportunity to defer a portion of the fees and cash compensation paid by the Company as a means of maximizing the effectiveness and flexibility of compensation arrangements.  The Company invests all participants’ deferrals in shares of common stock. Dividends paid on the shares are credited to participants’ DCP accounts and invested in additional shares.  During 2018 and 2017 the Company issued 9,043 common shares and 6,875 common shares, respectively, pursuant to the DCP.

The Company also maintains deferred compensation arrangements that were acquired in the Soy Capital acquisition.  Individual participants in the agreements are primarily business development employees in the First Mid Insurance and First Mid Wealth Management divisions.  The total liabilities associated with these agreements is included in other liabilities on the Company's consolidated balance sheet as of December 31, 2018.