-----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, J3AkDZ2BpgR8siDlqt8wZUS+vwPsGilqZDNzyWyp9kQsfijyVuBNUtZaq5M1U2UE zcjf624DYyDDPk+cmlRTdA== 0000700565-96-000008.txt : 19960812 0000700565-96-000008.hdr.sgml : 19960812 ACCESSION NUMBER: 0000700565-96-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960809 SROS: NONE 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: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13368 FILM NUMBER: 96606645 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 10-Q 1 SEC 10-Q FOR 2ND QTR UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q JUNE 30, 1996 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_________________to_________________ Commission file number: 0-13368 First Mid-Illinois Bancshares, Inc. (Exact name of Registrant as specified in its charter) Delaware 37-1103704 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1515 Charleston Avenue, Mattoon, Illinois 61938 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: 217-234-7454 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Common stock, par value $4.00 per share Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ] Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date: 934,865 shares of Common Stock at June 30, 1996. FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1996
INDEX Beginning Page No. Part I - Financial Information Item 1 Financial Statements 3 Consolidated Balance Sheets 4 Consolidated Statements of Income 5 Consolidated Statements of Cash Flows 7 Notes to Consolidated Financial Statements 9 Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Part II - Other Information Item 1 Legal Proceedings 28 Item 2 Changes in Securities 28 Item 3 Defaults Upon Senior Securities 28 Item 4 Submission of Matters to a Vote of Securitiy Holders 28 Item 5 Other Information 28 Item 6 Exhibits and Reports on Form 8-K 28 Signatures 29
PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information required by generally accepted accounting principles for complete financial statements and related footnote disclosures. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered for a fair presentation have been included. For further information, refer to the financial statements and notes included in the Registrant's 1995 Annual Report to Stockholders.
FIRST MID-ILLINOIS BANCSHARES, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (dollars in thousands, except per share data) June 30, December 31, 1996 1995 Assets Cash and due from banks: Noninterest bearing $ 18,869 $ 17,536 Interest bearing 951 784 Excess funds sold 2,075 4,975 Cash and cash equivalents 21,895 23,295 Investment certificates of deposits 99 99 Investment securities available-for-sale at fair value 120,468 119,388 Investment securities held-to-maturity (estimated fair value of $3,425 at June 30, 1996 and $3,409 at December 31, 1995) 3,443 3,381 Loans 327,718 307,004 Less allowance for loan losses 2,680 2,814 Net loans 325,038 304,190 Premises and equipment, net 9,659 9,487 Intangible assets 5,802 6,019 Other assets 7,817 6,635 Total assets $494,221 $472,494 Liabilities and Stockholders' Equity Deposits: Noninterest bearing $ 50,592 $ 51,017 Interest bearing 353,187 345,862 Total deposits 403,779 396,879 Other liabilities 4,257 4,591 Other borrowings 41,887 28,515 Long-term debt 6,700 7,200 Total liabilities 456,623 437,185 Stockholders' equity: Series A convertible preferred stock; no par value; authorized 1,000,000 shares; issued 620 shares with stated value of $5,000 per share 3,100 3,100 Common stock, $4 par value; authorized 2,000,000 shares; issued 936,865 shares at June 30, 1996 and 894,991 at December 31, 1995) 3,736 3,580 Additional paid-in-capital 5,175 3,969 Retained earnings 26,438 24,493 Net unrealized gain (loss) on available-for-sale investment securities (827) 191 37,622 35,333 Less treasury stock at cost, 2,000 shares 24 24 Total stockholders' equity 37,598 35,309 Total liabilities and stockholders' equity $494,221 $472,494 See accompanying notes to consolidated financial statements.
FIRST MID-ILLINOIS BANCSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME Three months ended June 30, 1996 and 1995 (unaudited) (in thousands, except per share data) 1996 1995 Interest income: Interest and fees on loans $ 6,731 $ 6,181 Interest on investment securities 1,864 1,971 Interest on excess funds sold 29 77 Interest on deposits with financial institutions 10 47 Total interest income 8,634 8,276 Interest expense: Interest on deposits 3,785 3,668 Interest on other borrowings 368 281 Interest on long-term debt 104 149 Total interest expense 4,257 4,098 Net interest income 4,377 4,178 Provision for loan losses - 48 Net interest income after provision for loan losses 4,377 4,130 Other income: Trust fees 319 305 Brokerage and annuity fees 112 42 Service charges 439 385 Securities gains, net 16 - Mortgage banking income 91 71 Other 253 181 Total other income 1,230 984 Other expense: Salaries and employee benefits 1,959 1,849 Occupancy, furniture and equipment, net 594 569 Federal deposit insurance premiums 69 221 Other 1,174 1,072 Total other expense 3,796 3,711 Income before income taxes 1,811 1,403 Income taxes 618 453 Net income $ 1,193 $ 950 Per common share data: Primary earnings per share $ 1.23 $ .99 Fully diluted earnings per share $ 1.15 $ .94 See accompanying notes to consolidated financial statements.
FIRST MID-ILLINOIS BANCSHARES, INC. CONSOLIDATED STATEMENTS OF INCOME Six months ended June 30, 1996 and 1995 (unaudited) (in thousands, except per share data) 1996 1995 Interest income: Interest and fees on loans $13,226 $12,004 Interest on investment securities 3,723 3,906 Interest on excess funds sold 88 137 Interest on deposits with financial institutions 28 67 Total interest income 17,065 16,114 Interest expense: Interest on deposits 7,568 7,148 Interest on other borrowings 666 460 Interest on long-term debt 229 289 Total interest expense 8,463 7,897 Net interest income 8,602 8,217 Provision for loan losses - 90 Net interest income after provision for loan losses 8,602 8,127 Other income: Trust fees 652 608 Brokerage and annuity fees 160 90 Service charges 849 749 Securities gains, net 18 - Mortgage banking income 196 98 Other 548 422 Total other income 2,423 1,967 Other expense: Salaries and employee benefits 3,886 3,649 Occupancy, furniture and equipment, net 1,154 1,118 Federal deposit insurance premiums 137 442 Other 2,161 2,114 Total other expense 7,338 7,323 Income before income taxes 3,687 2,771 Income taxes 1,318 858 Net income $ 2,369 $ 1,913 Per common share data: Primary earnings per share $ 2.46 $ 2.00 Fully diluted earnings per share $ 2.30 $ 1.90 See accompanying notes to consolidated financial statements.
FIRST MID-ILLINOIS BANCSHARES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended June 30, 1996 and 1995 (unaudited) (in thousands, except per share data) 1996 1995 Cash flows from operating activities: Net income $ 1,193 $950 Adjustment to reconcile net income to net cash provided by operating activities: Provision for loan losses - 48 Depreciation, amortization and accretion, net 320 341 Gain on sales of securities, net (16) - Gain on sale of loans held for sale (61) (8) Origination of mortgage loans held for sale (3,611) (485) Proceeds from sales of mortgage loans held for sale 3,298 847 Net (increase) in other assets (1,597) (1,115) Net increase in other liabilities 1,164 815 Net cash provided by operating activities 690 1,393 Cash flows from investing activities: Capitalization of mortgage servicing rights (30) - Expenditures for premises and equipment (332) (232) Net (increase) in loans (20,081) (12,812) Proceeds from sales of: Securities available-for-sale 3,439 - Proceeds from maturities of: Securities available-for-sale 4,308 7,733 Securities held-to-maturity 20 469 Purchases of: Securities available-for-sale (8,154) (217) Securities held-to-maturity (30) (3,004) Net cash (used in) investment activities (20,860) (8,063) Cash flows from financing activities: Net increase (decrease) in deposits 2,956 (7,550) Net increase in other borrowings 21,867 8,380 Repayment of long-term debt (250) - Proceeds from issuance of common stock 900 - Dividends paid on preferred stock (16) (42) Dividends paid on common stock (196) (176) Net cash provided by financing activities 25,261 612 Increase (decrease) in cash and cash equivalents 5,091 (6,058) Cash and cash equivalents at beginning of period 16,804 26,706 Cash and cash equivalents at end of period $21,895 $20,648 Additional disclosure of cash flow information: Interest paid during the period $ 4,440 $ 4,111 Income taxes paid during the period 1,180 850 Loans transferred to real estate owned 276 36 See accompanying notes to consolidated financial statements.
FIRST MID-ILLINOIS BANCSHARES, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS Six months ended June 30, 1996 and 1995 (unaudited) (in thousands, except per share data) 1996 1995 Cash flows from operating activities: Net income $ 2,369 $ 1,913 Adjustment to reconcile net income to net cash provided by operating activities: Provision for loan losses - 90 Depreciation, amortization and accretion, net 630 674 Gain on sales of securities, net (18) - Gain on sale of loans held for sale (135) (17) Origination of mortgage loans held for sale (5,778) (1,025) Proceeds from sales of mortgage loans held for sale 5,387 1,396 Net (increase) in other assets (1,187) (287) Net increase in other liabilities 685 601 Net cash provided by operating activities 1,953 3,345 Cash flows from investing activities: Capitalization of mortgage servicing rights (62) - Expenditures for premises and equipment (560) (371) Net (increase) in loans (20,322) (14,008) Proceeds from sales of: Securities available-for-sale 5,941 - Proceeds from maturities of: Securities available-for-sale 16,487 10,202 Securities held-to-maturity 20 1,287 Purchases of: Securities available-for-sale (24,997) (3,679) Securities held-to-maturity (80) (3,004) Net cash (used in) investment activities (23,573) (9,573) Cash flows from financing activities: Net increase (decrease) in deposits 6,900 (298) Net increase in other borrowings 13,372 9,890 Repayment of long-term debt (500) - Proceeds from issuance of common stock 900 - Dividends paid on preferred stock (16) (42) Dividends paid on common stock (436) (387) Net cash provided by financing activities 20,220 9,163 Increase (decrease) in cash and cash equivalents (1,400) 2,935 Cash and cash equivalents at beginning of period 23,295 17,713 Cash and cash equivalents at end of period $21,895 $20,648 Additional disclosure of cash flow information: Interest paid during the period $ 8,574 $ 8,283 Income taxes paid during the period 1,305 850 Loans transferred to real estate owned 290 109 See accompanying notes to consolidated financial statements.
Notes to the Consolidated Financial Statements 1) The consolidated financial statements include the accounts of First Mid-Illinois Bancshares, Inc. (the "Registrant"), and its wholly owned subsidiaries, First Mid-Illinois Bank & Trust, N.A. (the "Bank"), Heartland Savings Bank ("Heartland") and Mid-Illinois Data Services, Inc. ("MIDS"). Intercompany amounts have been eliminated. 2) The financial information reflects all adjustments which, in the opinion of management, are necessary to present a fair statement of the results of the interim periods ended June 30, 1996 and 1995, and all such adjustments are of a normal recurring nature. The results of the interim period ended June 30, 1996, are not necessarily indicative of the results expected for the year ending December 31, 1996. 3) Income for primary and fully diluted earnings per share is adjusted for dividends attributable to preferred stock. Primary earnings per share is based on the weighted average number of common shares outstanding. Fully diluted earnings per share data is computed by using the weighted average number of common shares outstanding, increased by the assumed conversion of the convertible preferred stock. The weighted average number of common equivalent shares used in calculating earnings per share for the periods ended June 30, 1996 and 1995, are as follows:
Three months ended Six months ended June 30, June 30, 1996 1995 1996 1995 Primary 910,134 885,620 904,143 883,629 Fully Diluted 1,035,436 1,010,922 1,029,445 1,008,931
4) The Registrant is required to classify its debt securities into one of three categories at the time of purchase: held-to-maturity, available- for-sale or trading. Held-to-maturity securities are those which management has the intent and ability to hold to maturity. These securities are carried at amortized historical cost. Available-for-sale securities are those securities which management may sell prior to maturity as a result of the Registrant's overall asset and liability management strategy. These securities are recorded at fair value. Trading securities are those securities bought and held principally for the purpose of selling them in the near term. Trading securities are recorded at the lower of historical cost or fair value. The Registrant currently has no securities designated as trading. 5) Heartland originates residential first mortgage loans both for its portfolio and for sale into the secondary market. Held for sale loans are carried at the lower of aggregate, amortized cost or estimated market value. Mortgage banking income consists of gains or losses on the sale of loans and servicing fee income. Origination costs for loans sold are expensed as incurred. 6) In May 1995, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 122, "Accounting for Mortgage Servicing Rights" ("FAS 122"). FAS 122 amends FASB Statement No. 65 by establishing a new standard for capitalizing mortgage servicing rights. Under FAS 122, the accounting principles for mortgage servicing rights are the same for mortgages originated by the servicer as for those acquired through purchase transactions. Accordingly, under the new standard, the Registrant will record an asset for mortgage servicing rights when it sells mortgages and retains servicing. Mortgage servicing rights are to be amortized in proportion to the net servicing income over the period during which servicing income is expected to be received. Servicing rights are to be evaluated for impairment based on fair value. The Registrant adopted FAS 122 effective January 1, 1996. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS - SUMMARY Net income for the three month period ended June 30, 1996, amounted to $1,193,000 ($1.15 per share on a fully diluted basis). This represents a $243,000 or 25.6% increase from the earnings of $950,000 ($.94 per share on a fully diluted basis) for the three month period ended June 30, 1995. A summary of the factors which contributed to the earnings increase follows (dollars in thousands, except per share data):
Three months ended June 30, 1996 Total Percent vs. June 30, 1995 Net Change Change 1996/1995 Net interest income $ 199 4.7% Provision for loan losses (48) 100.0 Other income 246 25.0 Other expense 85 2.3 Income taxes 165 36.4 Total increase in net income $ 243 25.6%
Net income for the six month period ended June 30, 1996, amounted to $2,369,000 ($2.30 per share on a fully diluted basis). This represents a $456,000 or 23.8% increase from the earnings of $1,913,000 ($1.90 per share on a fully diluted basis) for the six month period ended June 30, 1995. A summary of the factors which contributed to the earnings increase follows (dollars in thousands, except per share data):
Six months ended June 30, 1996 Total Percent vs. June 30, 1995 Net Change Change 1996/1995 Net interest income $ 385 4.7% Provision for loan losses (90) 100.0 Other income 456 23.2 Other expense 15 .2 Income taxes 460 53.6 Total increase in net income $ 456 23.8%
NET INTEREST INCOME AND INTEREST RATE SENSITIVITY During the first six months in 1996, the Registrant's net interest income increased by $385,000 (4.7%) as compared with the net interest income for the same period in 1995. Net interest income for the six months ended June 30, 1996, was $8,602,000 as compared with $8,217,000 for the six months ended June 30, 1995. The table which follows sets forth details of average balances, interest income and expense and average rates for the Registrant for 1996 and 1995. The 1996 figures have been annualized based on the actual results through June 30, 1996. The annualized amounts are not necessarily indicative of the actual amounts that are expected or that will occur for the year ended December 31, 1996. As can be seen, annualized net interest margin was 4.00% during the first half of 1996 (on a tax equivalent basis). The overall cost of interest bearing liabilities and the yield on interest earning assets has remained stable in 1996 as compared with 1995. DISTRIBUTION OF ASSETS, LIABILITIES AND STOCKHOLDERS' EQUITY INTEREST RATES AND INTEREST DIFFERENTIAL
Six Month Period Ended Year Ended June 30, 1996 December 31, 1995 (dollars in thousands) Avg Bal Int Avg Rate Avg Bal Int Avg Rate INTEREST EARNING ASSETS Investment certificates of deposits $ 99 $ 10 10.30% $ 99 $ 10 10.10% Due from banks-interest bearing 947 46 4.90% 1,511 84 5.56% Excess funds sold 3,309 176 5.31% 6,199 356 5.74% Investment securities: Taxable 111,853 6,785 6.07% 115,725 7,068 6.11% Tax-exempt 11,940 661 8.39% 12,831 733 8.66% Loans (net of unearned income) 310,073 26,452 8.53% 294,220 25,214 8.57% Total earning assets 438,221 34,130 7.87% 430,585 33,465 7.86% NONEARNING ASSETS Cash and due from banks 15,330 15,382 Premises and equipment 9,560 9,333 Other nonearning assets 12,344 12,699 Allowance for loan losses (2,788) (2,711) TOTAL ASSETS $472,667 $465,288 INTEREST BEARING LIABILITIES Demand deposits 106,300 2,780 2.62% 106,118 2,823 2.66% Savings deposits 40,447 1,088 2.69% 40,920 1,107 2.71% Time deposits 205,395 11,266 5.49% 202,305 10,958 5.42% Other borrowings 25,342 1,334 5.26% 24,140 1,266 5.24% Long-term debt 7,068 458 6.48% 7,636 571 7.48% Total interest-bearing liabilities 384,552 16,926 4.40% 381,119 16,725 4.39% NONINTEREST BEARING LIABILITIES Demand deposits 47,779 46,237 Other liabilities 3,931 4,561 TOTAL LIABILITIES 436,262 431,917 Stockholders' equity 36,405 33,371 TOTAL LIABILITIES & EQUITY $472,667 $465,288 Net interest earnings $17,204 3.46% $16,740 3.47% Net interest earnings as a % of interest earning assets on a full tax equivalent basis 4.00% 3.98%
(1) Full tax equivalent yields on tax exempt securities have been calculated using a 34% tax rate. (2) Investment securities on a full tax equivalent basis amounted to $1,002 and $1,111 for the period ended June 30, 1996 and December 31, 1995, respectively. (3) Nonaccrual loans have been included in the average balances. (4) Interest includes net loan fees. (5) 1996 interest income and expense amounts have been annualized based on results through June 30, 1996. The annualized amounts are not necessarily indicative of the actual amounts that are expected or that will occur for the year ending December 31, 1996. The following table describes changes in net interest income attributable to changes in the volume of earning assets compared to changes in interest rates (in thousands).
1996 Compared to 1995 Increase - (Decrease) Total Rate/ Change Volume Rate Volume INTEREST INCOME: Investment certificates of deposit $ - $ - $ - $ - Due from banks-interest bearing (38) (31) (11) 4 Excess funds sold (180) (165) (27) 12 Investment securities: Taxable (283) (237) (48) 2 Tax-exempt (72) (51) (23) 2 Loans 1,238 1,358 (114) (6) Total interest income 665 874 (223) 14 INTEREST EXPENSE: Demand deposits (43) 5 (48) - Savings deposits (19) (13) (6) - Time deposits 308 167 139 2 Other borrowings 68 63 5 - Long-term debt (113) (42) (77) 6 Total interest expense 201 180 13 8 NET INTEREST EARNINGS $ 464 $ 694 $(236) $ 6
Nonaccrual loans are not material and have been included in the average loan balances for purposes of this computation. No out-of-period adjustments have been included in the preceding analysis. Changes in rates and volume are computed on a consistent basis using the absolute values of changes in volume compared to the absolute values of the changes in rates. Loan fees included in interest income are not material. Interest on nontaxable securities is shown on a tax-equivalent basis using a 34% tax rate. There were no foreign activities by the Registrant during the six month periods ending June 30, 1996 and 1995. The following table is the Registrant's "static gap" schedule as of June 30, 1996. This is one of several tools used by management to monitor the interest rate sensitivity position of the Registrant. The following table presents earning assets and interest bearing liabilities within selected time intervals based on their repricing and maturing characteristics. Interest rate sensitivity is measured by "gaps", (the difference between interest earning assets and interest bearing liabilities within a particular time interval). A positive GAP indicates more assets than liabilities could reprice in that time period and a negative GAP indicates more liabilities could reprice.
(dollars in thousands) Number of Months Until Next Repricing Opportunity 0-1 1-3 3-6 6-12 12+ INTEREST EARNING ASSETS: Investment certificates of deposits $ - $ - $ - $ - $ 99 Due from banks-interest bearing 951 - - - - Excess funds sold 2,075 - - - - Investment securities: Taxable 36,640 14,023 9,612 15,245 36,864 Tax-exempt 15 5 561 1,004 9,942 Loans 37,112 14,628 24,979 37,199 213,800 Total 76,793 28,656 35,152 53,448 260,705 INTEREST BEARING LIABILITIES: Savings and NOW accts 111,244 - - - - Money market accounts 34,032 - - - - Other time deposits 40,887 43,024 35,288 36,873 51,839 Other borrowings 17,780 15,607 5,000 1,500 2,000 Long-term debt 6,700 - - - - Total $ 210,643 $ 58,631 $ 40,288 $ 38,373 $ 53,839 Periodic GAP (133,850) (29,975) (5,136) 15,075 206,866 Cumulative GAP (133,850) (163,825) (168,961) (153,886) 52,980 Gaps as a percent of interest earning assets: Periodic (29.4%) (6.6%) (1.1%) 3.3% 45.5% Cumulative (29.4%) (36.0%) (37.2%) (33.8%) 11.7%
The preceding tabulation classifies savings and NOW accounts as immediately repriceable because if rates paid on these accounts were to change, the rates would, most likely, change on all such accounts at the same time. As a practical matter, management is able to exercise a significant amount of control over these rates and they have shown to be very resistant to rate changes. Management of the Registrant continually monitors its interest rate sensitivity position. While the preceding table is an indication of interest rate risk, overall interest rate sensitivity is influenced by other factors such as the competitive environment, the timing and amount of rate changes, loan prepayments and the inherent stability of certain deposits. A number of different factors, including those objectively determined and measurable, as well as those subjectively ascertained, are considered by management in its evaluation of interest rate risk. As a result of this analysis, management believes that the overall level of interest rate risk is manageable and does not believe that changing rates will have a material negative effect on the Registrant's net interest margin. INVESTMENT PORTFOLIO The Registrant adopted Statement of Financial Accounting Standards No. 115 ("FAS 115"), "Accounting for Certain Investments in Debt and Equity Securities" effective December 31, 1993. Investment securities that the Registrant has the positive intent and ability to hold to maturity are classified as "held-to-maturity" and reported at amortized cost. All other investment securities are classified as "available-for-sale" and have been reported at their estimated fair value at June 30, 1996, and December 31, 1995. In accordance with FAS 115, the unrealized losses, net of related taxes, in the amount of $827,000 have been included in stockholders' equity at June 30, 1996. Total investment securities designated as available-for-sale represented 97% of the portfolio and held-to-maturity represented 3%. During the six months ended June 30, 1996, $3,425,000 (par value) available-for-sale and no held-to- maturity investment securities were sold. During the six months ended June 30, 1996, $30,000 (par value) held-to-maturity and $6,600,000 (par value) available-for-sale investment securities were purchased. There were seven investment securities with a par value totaling $5,925,000 that were sold at a total gain of $18,000 during the six months ended June 30, 1996. The change in the amount of net unrealized gain (loss) on available-for-sale securities from December 31, 1995 to June 30, 1996 amounted to a loss of $1,018,000. This loss reflects the decline in the market value of available- for-sale securities during the first six months of the year. The following table provides detailed information for investment securities at June 30, 1996 and December 31, 1995, (in thousands):
Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value Available-for-sale - 06/30/96 U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 78,849 $ 166 $ (1,606) $ 77,409 Obligations of state and political subdivisions 8,301 308 (8) 8,601 Mortgage backed securities 30,787 154 (268) 30,673 Other securities 3,785 - - 3,785 Total available-for-sale $121,722 $ 628 $(1,882) $120,468 Held-to-maturity - 06/30/96 Obligations of state and political subdivisions $ 3,443 $ 17 $ (35) $ 3,425 Available-for-sale - 12/31/95 U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 72,599 $ 481 (683) $ 72,397 Obligations of state and political subdivisions 8,628 440 (7) 9,061 Mortgage backed securities 35,766 222 (163) 35,825 Other Securities 2,105 - - 2,105 Total available-for-sale $119,098 $ 1,143 $ (853) $119,388 Held-to-maturity - 12/31/95 Obligations of state and political subdivisions $ 3,381 $ 43 $ (15) $ 3,409
Other securities included stock in the Federal Home Loan Bank totaling $3,378,000 at June 30, 1996 and $1,699,000 at December 31, 1995. The following table indicates the expected maturities of investment securities classified as available-for-sale and held-to-maturity at June 30, 1996 (dollars in thousands) and their weighted average yield for each range of maturities. Mortgage backed securities are aged according to their weighted average life. All other securities are shown at their contractual maturity.
Book Value Maturing Investment Securities One After 1 After 5 After year through through ten or less 5 years 10 years years Total Available-for-sale: U.S. Treasury securities and obligations of U.S. government corporations and agencies $ 14,428 $ 52,798 $ 11,125 $ 498 $ 78,849 Obligations of state and political subdivisions 1,032 6,563 706 - 8,301 Mortgage-backed securities 3,896 23,172 799 2,920 30,787 Other securities - - - 3,785 3,785 Total available-for-sale securities $ 19,356 $ 82,533 $ 12,630 $ 7,203 $121,722 Weighted average yield 5.81% 5.53% 5.74% 8.12% Full tax equivalent yield 5.92% 5.77% 5.91% 8.12% Held-to-maturity: Obligations of state and political subdivisions $ 693 $ 1,842 $ 908 $ - $ 3,443 Weighted average yield 4.63% 5.02% 5.12% - Full tax equivalent yield 7.04% 7.61% 7.76% -
The weighted average yields are calculated on the basis of the cost and effective yields weighted for the scheduled maturity of each security. Full tax equivalent yields have been calculated using a 34% tax rate. The maturities of, and yields on, mortgage backed securities have been calculated using actual quarterly repayment history. However, where securities have call features and market values greater than par, the call date has been used to determine the expected maturity. With the exception of obligations of the U.S. Treasury and other U.S. Government corporations and agencies, there were no investment securities of any single issuer, the book value of which exceeded 10% of stockholders' equity at June 30, 1996. In December 1995, the Registrant reclassified certain investment securities between held-to-maturity and available-for-sale in accordance with guidelines issued by the Financial Accounting Standards Board ("FASB") permitting a one- time change in classification. Based on discussion and analysis, the Registrant decided that only local, non-rated municipal securities would be classified as held-to-maturity and the remaining portfolio would be designated as available-for-sale. The book value and gross unrealized loss of securities transferred from held-to-maturity to available-for-sale amounted to $52,536,000 and $445,000, respectively. LOAN PORTFOLIO The following tables provide information relating to the Registrant's loan portfolio, risk elements within the portfolio and historical loan loss experience. TYPES OF LOANS The composition of the Registrant's loan portfolio as of June 30, 1996, December 31, 1995 and 1994 was as follows (in thousands):
1996 1995 1994 Commercial, financial and agricultural $ 68,721 $ 65,916 $ 61,520 Real estate - mortgage 227,380 211,147 195,524 Installment 29,885 27,996 22,294 Other 1,732 1,945 2,815 Total loans $327,718 $307,004 $282,153
MATURITIES AND SENSITIVITIES OF LOANS TO CHANGES IN INTEREST RATES The following table presents the aggregate balances of loans outstanding as of June 30, 1996, by maturities, based on remaining scheduled, contractual repayments of principal (in thousands):
Over 1 One year through Over or less 5 years 5 years Total Commercial, financial and agricultural $ 46,611 $ 20,369 $ 1,741 $ 68,721 Real estate - mortgage 43,937 115,653 67,790 227,380 Installment 7,340 21,656 889 29,885 Other 258 886 588 1,732 Total loans $ 98,146 $158,564 $ 71,008 $327,718
As of June 30, 1996, loans with maturities over one year were comprised of $180,366,000 in fixed rate loans and $49,206,000 in variable rate loans. The loan maturities noted previously are based on the contractual provisions of the individual loans. The Registrant has no general policy regarding rollovers, and borrower requests for such are handled on a case by case basis. As of June 30, 1996, the Registrant had loan concentrations in agricultural industries of 12.5% of outstanding loans. The Registrant had no other industry loan concentrations in excess of 10% of outstanding loans. There was no foreign activity required to be disclosed for the reporting period ended June 30, 1996. RISK ELEMENTS The Registrant adopted Statement of Financial Accounting Standards No. 114 "Accounting by Creditors for Impairment of a Loan" ("FAS 114") and Statement of Financial Accounting Standards No. 118 "Accounting by Creditors for Impairment of a Loan-Income Recognition and Disclosure" ("FAS 118") effective January 1, 1995. FAS 114 applies to all creditors and to all loans that are accounted for at fair value or at the lower of cost or fair value. It requires that impaired loans be measured at the present values of expected future cash flows by discounting those cash flows at the loan's effective interest rate. FAS 118 amends FAS 114 to allow a creditor to use existing methods for recognizing interest income on an impaired loan. FAS 118 also amends the disclosure requirements of FAS 114 to require information about the recorded investment in certain impaired loans and about how a creditor recognizes interest income related to those impaired loans. At June 30, 1996, the recorded investment of impaired loans totaled $883,000 as compared with $1,240,000 at December 31, 1995. There was no related allowance for these impaired loans either at June 30, 1996 or December 31, 1995. The average recorded investment in impaired loans during 1996 was $1,078,000. Total interest income which would have been recorded under the original terms of the impaired loans was $83,000. Total interest income earned on these impaired loans totaled $25,000. It is the Registrant's policy to discontinue the accrual of interest income on any loan when, in the opinion of management, there is reasonable doubt as to the timely collectibility of interest or principal. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collectibility of interest or principal. The following table presents information concerning the aggregate amount of nonperforming loans at the dates indicated. Nonperforming loans include: (a) loans accounted for on a nonaccrual basis; (b) accruing loans contractually past due 90 days or more as to interest or principal payments; and (c) loans not included in (a) or (b) previously, which are "restructured loans" as defined in Statement of Financial Accounting Standards No. 15, "Accounting by Debtors and Creditors for Troubled Debt Restructurings."
Nonperforming Loans (in thousands) June 30, December 31, 1996 1995 1994 1993 1992 Nonaccrual loans $ 282 $ 636 $ 393 $ 497 $ 685 Loans past due ninety days or more and still accruing 682 554 509 248 585 Restructured loans which are performing in accordance with revised terms 601 604 772 307 383
SUMMARY OF LOAN LOSS EXPERIENCE There was no provision for loan losses charged to expense for the six months ended June 30, 1996, as compared to $90,000 for the six months ended June 30, 1995. This decrease was due to reduced loan charge offs, a lower level of problem loans and favorable economic conditions which allowed the Registrant to reduce the provision. Management establishes an allowance for loan losses which reduces the total loans outstanding by an estimate of uncollectible loans. Loans deemed to be uncollectible are charged against and reduce the allowance. The provision for loan losses and recoveries are credited to and increase the allowance. The allowance for loan losses totaled $2,680,000 (.82% of total loans) at June 30, 1996, and $2,814,000 (.92% of total loans) at December 31, 1995. The allowance for loan losses equaled 171.2% and 156.9% of total non-performing loans at June 30, 1996 and December 31, 1995, respectively. ANALYSIS OF THE ALLOWANCE FOR LOAN LOSSES A summary of loan loss experience for the periods indicated is as follows (dollars in thousands):
Six months ended June 30, Year ended December 31, 1996 1995 1994 1993 1992 Average loans outstanding net of unearned income $310,073 $294,220 $243,166 $214,408 $178,919 Allowance-beginning of year 2,814 2,608 2,110 1,906 1,566 Balance of acquired subsidiary - - 343 - - Charge-offs: Commercial, financial and agricultural 75 18 29 140 298 Real estate-mortgage - 111 28 241 350 Installment 88 57 120 86 139 Total charge-offs 163 186 177 467 787 Recoveries: Commercial, financiaL and agricultural 8 73 98 150 167 Real estate-mortgage - - 21 3 18 Installment 21 39 45 26 49 Total recoveries 29 112 164 179 234 Net charge-offs (recoveries) 134 74 13 288 553 Provision for loan losses - 280 168 492 543 Allowance-end of period $ 2,680 $2,814 $ 2,608 $ 2,110 $ 1,906 Ratio of net charge-offs (recoveries) to average loans .04% .03% .01% .13% .31% Ratio of allowance for loan losses to loans outstanding (less unearned interest) at end of period .82% .92% .93% .95% .89%
The allowance for loan losses represents management's best estimate of the reserve necessary to adequately cover losses that could ultimately be realized from current loan exposures. In determining the adequacy of the allowance for loan losses, management relies predominantly on a disciplined credit review and approval process which extends to the full range of the Registrant's credit exposure. The review process is directed by overall lending policy and is intended to identify, at the earliest possible stage, borrowers who might be facing financial difficulty. Once identified, the magnitude of the exposure to individual borrowers is quantified in the form of specific allocation of the allowance for loan losses. Collateral values are considered by management in the determination of such specific allocations. Additional factors considered by management in evaluating the overall adequacy of the allowance include historical net loan losses, the level and composition of nonaccrual, past due and restructured loans and the current and anticipated economic conditions in the region where the Registrant operates. In addition to the aforementioned considerations, management also considers the experience of certain other similarly situated banks, thrifts and bank holding companies. ALLOCATION OF THE ALLOWANCE FOR LOAN LOSSES The allowance for loan losses, in management's judgment, would be allocated as follows to cover potential loan losses (in thousands):
June 30, 1996 December 31, 1995 Allowance % of Allowance % of for loans for loans loan to total loan to total losses loans losses loans Commercial, financial and agricultural $ 1,731 21.0% $ 1,554 21.5% Real estate-mortgage 392 69.4% 314 68.8% Installment 136 9.1% 131 9.1% Other - .5% - .6% Total allocated 2,259 1,999 Unallocated 421 N/A 81 N/A Allowance at end of reported period $ 2,680 100.0% $ 2,814 100.0%
The allowance is allocated to the individual loan categories by a specific reserve for all classified loans plus a percentage of loans not classified based on historical losses. There were no other interest-bearing assets which would be required to be disclosed as having "risk elements" if such other assets were loans. RETURN ON EQUITY AND ASSETS The following table presents selected financial ratios for the six months ended June 30, 1996 (annualized) and the years ended December 31, 1995 and 1994:
1996 1995 1994 Return on average total assets 1.00% .84% .83% Return on average total stockholders' equity 13.01% 11.76% 11.35% Return on average common stockholders' equity 13.37% 12.02% 11.59% Dividend payout ratio 16.45% 19.76% 20.89% Average total equity to average assets ratio 7.70% 7.17% 7.38%
DEPOSIT BASE The following table details the year-to-date average deposits for the indicated periods and weighted average rates at June 30, 1996, December 31, 1995 and 1994 (in thousands):
June 30, December 31, December 31, 1996 1995 1994 Weighted Weighted Weighted Average Average Average Amount Rate Amount Rate Amount Rate Demand deposits: Non-interest bearing $ 47,779 - $ 46,237 - $ 37,527 - Interest bearing 106,300 2.62% 106,118 2.66% 110,069 2.51% Savings 40,447 2.69% 40,920 2.71% 38,985 2.59% Time deposits 205,395 5.49% 202,305 5.42% 170,252 4.29% Total average deposits $399,921 3.83% $395,580 3.76% $356,833 3.10%
The following table sets forth the maturity of time deposits of $100,000 or more at June 30, 1996 (in thousands):
Time Deposits Other Total 3 months or less $ 24,660 $ - $ 24,660 Over 3 through 6 months 4,252 - 4,252 Over 6 through 12 months 5,208 3,000 8,208 Over 12 months 5,683 - 5,683 Total $ 39,803 $ 3,000 $ 42,803
There were no time deposits of $100,000 or more that were issued by foreign offices at June 30, 1996. OTHER BORROWINGS Other borrowings at June 30, 1996, December 31, 1995 and December 31, 1994 are shown (in thousands) in the following table:
1996 1995 1994 Securities sold under agreement to repurchase $ 10,787 $ 16,815 $ 15,590 Federal Home Loan Bank advances: Overnight advances 8,600 2,200 3,500 Fixed term advances due in one year or less 22,500 6,000 - Fixed term advances due after one year - 3,500 - Federal funds purchased - - 500 Total other borrowings $ 41,887 $ 28,515 $ 19,590
Federal Home Loan Bank advances are secured by stock of the Federal Home Loan Bank of Chicago and by residential mortgage loans. Information concerning such borrowings for the periods ended June 30, 1996 (six months), December 31, 1995 (twelve months) and December 31, 1994 (twelve months) is as follows (in thousands):
1996 1995 1994 Maximum amount of borrowings outstanding at any month end $ 41,887 $ 36,770 $ 23,460 Average amount outstanding 25,342 24,114 13,103 Weighted average interest rate-end of period 5.37% 5.11% 3.55% Weighted average interest rate during the year 5.26% 5.24% 3.59%
OTHER INCOME Other income increased $456,000 or 23.2% to $2,423,000 in the first six months of 1996 as compared with $1,967,000 in the same period of 1995. The following table sets forth information regarding the major components of and changes in other income (dollars in thousands).
Six months ended Change June 30, 1996/1995 1996 1995 Amount Percent Trust fees $ 652 $ 608 $ 44 7.2% Brokerage and annuity fees 160 90 70 77.8 Service charges 849 749 100 13.4 Securities gains, net 18 - 18 100.0 Mortgage banking income 196 98 98 100.0 Other 548 422 126 29.9 Total other income $2,423 $1,967 $ 456 23.2%
Trust fees have increase 7.2% when comparing year-to-date 1996 and 1995, primarily becasue trust assets have increased from $195 million to $208 million representing approximately 50 accounts. Revenues from brokerage and annuity fees have increased 77.8% from the first six months of 1995 to the same period in 1996. This considerable increase is due to an early 1996 transition to full service brokerage, higher fees for value-added services and a wider array of products. Service charges on deposits consist of fees on both interest bearing and non-interest bearing accounts and charges for other items, including insufficient funds, overdrafts and stop payment requests. These fees increased 13.4% when comparing year-to-date 1996 and 1995, primarily due to the increase in deposit accounts. During the six month period ended June 30, 1996, net gains from sales of securities were $18,000. No securities were sold in the period ended June 30, 1995. Mortgage banking income has increased significantly in the first six months of 1996 as compared to 1995. This has resulted from Heartland originating more mortgage loans and selling them in the secondary market. Also affecting income from the sale of loans was FAS 122, "Accounting for Mortgage Servicing Rights" which the Registrant adopted on January 1, 1996. The Registrant recognized $62,000 of additional income by recording the value of the originated mortgage servicing rights associated with the loans sold during the first six months of 1996. During the six month period ended June 30, 1996 as compared to the same period in 1995, other income increased $126,000 (29.9%). This increase was a result of a gain on sale of $47,000 of the Sullivan facility's former bookkeeping building, as well as a $55,000 net gain on the sale of other real estate owned located in Neoga and Charleston. There was also an increase in loan fees, primarily generated from home equity lines of credit, which is a new product being offered. OTHER EXPENSE Other expense increased $15,000 or (.2%) to $7,338,000 in the first six months of 1996 as compared with $7,323,000 in the first six months of 1995. Other expense as a percentage of average assets remained stable at 1.6% during the first six months of 1996 and 1995. The following table sets forth information regarding the major components of and changes in other expense (dollars in thousands).
Six months ended Change June 30, 1996/1995 1996 1995 Amount Percent Salaries and employee benefits $ 3,886 $ 3,649 $ 237 6.5% Occupancy, furniture and equipment, net 1,154 1,118 36 3.2 Federal deposit insurance premiums 137 442 (305) (69.0) Other 2,161 2,114 47 2.2 Total other expense $ 7,338 $ 7,323 $ 15 .2%
Salaries and employee benefits, the largest component of other expense, increased $237,000 or 6.5% during the first six months of 1996 as compared with the same period in 1995. This increase was due to regular pay increases made to the employees. Net occupancy, furniture and equipment expense increased $36,000 or 3.2% during the first six months of 1996 compared with the same period in 1995. This increase was attributable in part to the new facility opened in Arcola in September 1995, and several remodeling projects being completed at facilities throughout the Registrant. FDIC Insurance premiums decreased $305,000 or 69.0% in the six months of 1996 compared with 1995. This decrease was the result of a reduction in the deposit insurance assessments charged to members of the Bank Insurance Fund (the "BIF"), such as the Bank, from a range of 0.23% to 0.31% of deposits for the semi-annual assessment period which began January 1, 1995, to a range of $1,000 to 0.27% of deposits for the semi- annual assessment period which began January 1, 1996. Heartland, as a member of the Savings Association Insurance Fund (the "SAIF"), was not affected by this reduction. Because the SAIF reserves do not yet equal the statutorily designated reserve ratio of 1.25% of total SAIF-insured deposits, the FDIC is prohibited by federal law from reducing SAIF deposit insurance assessments to the levels currently charged members of the BIF. As a result, SAIF assessments for the semi-annual assessment period which began January 1, 1996, remained at the range 0.23% to 0.31% of deposits, the same range in effect for the semi-annual assessment period which began January 1, 1995. Other expense increased $47,000 or 2.2% for the first six months of 1996 as compared with the same period of 1995. This increase was attributable to an increase in supplies expense and loan origination expense. INCOME TAXES The Registrant recorded federal income tax expense of $1,168,000 for the six months ended June 30, 1996, as compared to $858,000 for the same period in 1995. The effective federal income tax rate was 31.7% for the six months ended June 30, 1996, as compared with 31.0% in the same period in 1995. Tax exempt interest as a percentage of total interest income declined in 1996, which contributed to the higher tax rate. Also, the Registrant recorded state income tax in the amount of $150,000 for the six months ended June 30, 1996. In past years, the Registrant's low loan to deposit ratio and heavy reliance on interest income from state tax exempt securities had combined to produce operating losses for state tax purposes. These net operating loss carryforwards generated in years past have now been exhausted. LIQUIDITY Liquidity represents the ability of the Registrant and its subsidiaries to meet the present and future requirements of customers for new loans and deposit withdrawals. Liquidity management focuses on the ability to obtain funds economically and to maintain assets which may be converted into cash at minimal costs. The Registrant has provided for its liquidity needs through growth in core deposits, maturing loans and investment securities, and by maintaining adequate balances in other short-term investments. Management continually and carefully monitors its expected liquidity requirements, focusing primarily on cash flows from operating, investing and financing activities. A summary of the Registrant's cash flows from these sources during the three month periods ended June 30, 1996 and 1995 and for the six month periods ended June 30, 1996 and 1995 follows (in thousands):
Three months ended Six months ended June 30, June 30, 1996 1995 1996 1995 Cash flow provided by (used in): Operating activities $ 690 $ 1,393 $ 1,953 $ 3,345 Investing activities (20,860) (8,063) (23,573) (9,573) Financing activities 25,261 612 20,220 9,163 Total $ 5,091 $(6,058) $(1,400) $ 2,935
The Registrant's need for liquidity is influenced by several factors, including the increased loan demand brought on by the economic expansion in the Registrant's market area. Also affecting the Registrant's cash flow is its relationship with seasonal customers such as public entities, highway contractors and those associated with the agricultural industry. CAPITAL RESOURCES The Registrant and its subsidiaries have capital ratios which are higher than the fully-phased in regulatory capital requirements. The requirements call for a minimum total risk-based capital ratio of 8% and a minimum leverage ratio of 3% for the most highly rated banks that do not expect significant growth. All other institutions are required to maintain a ratio of Tier 1 capital to total assets of 4% to 5% depending on their particular circumstances and risk profiles. At June 30, 1996, the Registrant's leverage ratio was 6.67%. A tabulation of the Registrant's and its subsidiaries' risk-based capital ratios as of June 30, 1996, follows:
Tier one Total risk-based risk-based capital ratio capital ratio First Mid-Illinois Bancshares, Inc. 11.4% 12.0% First Mid-Illinois Bank & Trust, N.A. 11.9% 12.9% Heartland Savings Bank 16.9% 17.6%
Banks and bank holding companies are generally expected to operate at or above the minimum capital requirements. These ratios are well in excess of regulatory minimums and will allow the Registrant to operate without capital adequacy concerns. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS. There are no material pending legal proceedings to which the Registrant or any of its subsidiaries is a party other than ordinary routine litigation incidental to their respective businesses. ITEM 2. CHANGES IN SECURITIES. Not applicable. ITEM 3. DEFAULTS UPON SENIOR SECURITIES. Not applicable. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. On May 15, 1996, the Annual Meeting of Stockholders was held. At the meeting, Kenneth R. Diepholz and Gary W. Melvin were elected to serve as Class I directors with term expiring 1999. Continuing Class II directors (term expires in 1997) are Richard Anthony Lumpkin, William G. Roley and William S. Rowland and continuing Class III directors (term expires in 1998) are Charles A. Adams, Daniel E. Marvin, Jr. and Ray Anthony Sparks. The stockholders also approved the adoption of the First Mid-Illinois Bancshares, Inc. Deferred Compensation Plan and ratified the appointment of KPMG Peat Marwick, LLP as the Registrant's independent public accountants for the year ending December 31, 1996. There were 901,980 issued and outstanding shares of Common Stock at the time of the Annual Meeting. The voting at the meeting, on the items listed below, was as follows:
Election of Directors For Withheld Kenneth R. Diepholz 791,676 1,735 Gary W. Melvin 791,676 1,735
Adoption of Deferred Compensation Plan For Against Withheld No Vote 684,938 34,100 54,181 20,192
The stockholders also voted to ratify the appointment of the Registrant's auditors as well as the Deferred Compensation Plan. ITEM 5. OTHER INFORMATION. Not applicable. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. (a) Exhibits 27. Financial Data Schedule (b) Form 8-K None filed during the six month period ended June 30, 1996. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FIRST MID-ILLINOIS BANCSHARES, INC. (Registrant) Date: August 5, 1996 /s/ Daniel E. Marvin, Jr. Daniel E. Marvin, Jr. President and Chief Executive Officer Date: July 30, 1996 /s/ William S. Rowland William S. Rowland Chief Financial Officer EX-27 2
9 1000 6-MOS DEC-31-1996 JUN-30-1996 18869 1050 2075 0 120468 3443 3425 327718 2680 494221 403779 41887 4257 6700 0 3100 3736 30762 494221 13226 3723 116 17065 7568 8463 8602 0 18 7338 3687 3687 0 0 2369 2.46 2.30 7.87 282 682 601 883 2814 163 29 2680 2680 0 421
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