EX-99 3 xex-99_1.txt EXHIBIT 99.1 ------------ October 26, 2001 Quarterly Report to the Owners, First Mid-Illinois Bancshares, Inc. Our financial results for the first nine months of 2001 were good with net income amounting to $4,772,000 -- a 13 percent increase over the $4,209,000 we earned during the same period in 2000. Improved net interest income as well as increases in mortgage banking and service charge revenues were the primary drivers of our improved performance. We also continue to grow our banking franchise, as evidenced by the increase in loans -- $467.2 million at September 30, 2001 as compared to $429.3 million at December 31, 2000 -- and deposits -- $555.8 million at September 30, 2001, as compared to $504.0 million at December 31, 2000. Because of our financial results, the Board of Directors declared a three-for-two stock split in the form of a 50 percent stock dividend to be paid to shareholders of record as of October 26, 2001, payable on November 16, 2001. All share and per share information for current and prior periods presented have been adjusted to reflect the stock split. The stock dividend will increase the number of shares outstanding by approximately 1.1 million shares. Shareholders of record on October 26, 2001 can expect to receive specific information concerning their stock dividend shortly after November 16, 2001. The Board has also authorized the repurchase, in the open market or in privately negotiated transactions, of up to an aggregate of $3 million of additional shares of common stock. Shareholders who wish to learn more about the aforementioned stock dividend or the repurchase, should contact Ms. Christie L. Burich, Manager of Shareholder Services, at 217/258-0493 or me at 217/258-0415. As we are all aware, the tragic events of September 11, 2001 have changed our lives and the way we view our surroundings forever. The total impact of these events on the American economy and our way of life in general will not be completely known for many months or years. We do anticipate some slowing of economic activity as well as additional banking regulations as Congress determines how the banking system can best function as a resource in America s war on terrorism. As Chairman and CEO, I want to assure you that your Company is prepared for the challenges ahead. We will do whatever is required to support our Government, as well as to be a trusted provider of financial services to the citizens of this great country. Sincerely, William S. Rowland Chairman and Chief Executive Officer
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (unaudited) September 30, December 31, ------------------------------------------------------------------------------ ------------ ----------- 2001 2000 ---- ---- ASSETS Cash and due from banks $ 30,155 $ 22,115 Federal funds sold 12,300 2,725 Investment securities: Available-for-sale, at fair value 142,812 150,034 Held-to-maturity, at amortized cost (estimated fair value of $2,777 and $2,800 at September 30, 2001 and December 31, 2000, respectively) 2,692 2,757 Loans 467,229 429,288 Less allowance for loan losses (3,786) (3,262) -------- -------- Net loans 463,443 426,026 Premises and equipment, net 16,922 15,375 Intangible assets, net 12,704 12,150 Other assets 11,344 11,817 -------- -------- TOTAL ASSETS $692,372 $642,999 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Non-interest bearing $ 71,426 $ 66,646 Interest bearing 484,336 437,339 -------- -------- Total deposits 555,762 503,985 Repurchase agreements with customers 34,364 31,096 Other borrowings 28,300 40,300 Long-term debt 4,325 4,325 Other liabilities 5,553 5,566 TOTAL LIABILITIES $628,304 $585,272 ======== ======== Stockholders' Equity Common stock ($4 par value; authorized 6,000,000 shares; issued 3,542,634 shares in 2001 and 3,488,204 shares in 2000) $14,171 $9,302 Additional paid-in-capital 13,219 12,293 Retained earnings 38,566 39,169 Deferred compensation 1,351 1,218 Accumulated other comprehensive income (loss) 1,710 (288) Treasury stock at cost, 166,563 shares in 2001 and 128,106 shares in 2000 (4,949) (3,967) -------- -------- TOTAL STOCKHOLDERS' EQUITY 64,068 57,727 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $692,372 $642,999 ======== ======== The share information has been adjusted to reflect the three-for-two stock split payable on November 16, 2001. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands) (unaudited) ----------------------------------------------------------------------------------------------------------------- For the nine-month period ended September 30, 2001 2000 ---- ---- INTEREST INCOME: Interest and fees on loans $ 27,765 $ 25,641 Interest on investment securities 6,309 6,856 Interest on federal funds sold 285 97 Total interest income 34,359 32,594 ------- ------- INTEREST EXPENSE: Interest on deposits 14,714 13,386 Interest on repurchase agreements with customers 779 943 Interest on other borrowings 1,244 1,778 Interest on long-term debt 189 244 ------- ------- Total interest expense 16,926 16,351 ------- ------- NET INTEREST INCOME 17,433 16,243 Provision for loan losses 450 400 ------- ------- Net interest income after provision for loan losses 16,983 15,843 Other income: Trust revenues 1,426 1,362 Brokerage revenues 271 370 Service charges 2,309 1,836 Securities gains (losses), net 154 (3) Mortgage banking income 764 261 Other 1,368 915 ------- ------- Total other income 6,292 4,741 OTHER EXPENSE: Salaries and employee benefits 8,152 7,545 Net occupancy and equipment expense 2,899 2,702 Federal deposit insurance premiums 73 76 Amortization of intangible assets 916 896 Other 4,291 3,682 ------- ------- Total other expense 16,331 14,901 ------- ------- Income before income taxes 6,944 5,683 Income taxes 2,172 1,474 ------- ------- NET INCOME $ 4,772 $ 4,209 ======= ======= CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (in thousands) (unaudited) ----------------------------------------------------------------------------------------------------------------- For the nine-month period ended September 30, 2001 2000 ---- ---- Balance at beginning of period $ 57,727 $ 51,518 Net income 4,772 4,209 Issuance of stock 1,072 736 Purchase of treasury stock (850) (1,637) Change in accumulated other comprehensive income (loss) 1,998 945 -------- -------- Balance at end of period $ 64,068 $ 55,163 ======== ======== PER SHARE INFORMATION ---------------------------------------------------------------------------------------------------------------- 2001 2000 ---- ---- For the nine-month period ended September 30, $ 1.41 $ 1.41 Basic earnings per share $ 1.41 $ 1.23 Diluted earnings per share $18.98 $16.37 The per share information has been adjusted to reflect the three-for-two stock split payable on November 16, 2001.
First Mid-Illinois Bancshares, Inc. 1515 Charleston Avenue Mattoon, Illinois 61938 (217) 234-7454 www.firstmid.com