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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):
SEPTEMBER 30, 2005
FIRST MID-ILLINOIS BANCSHARES, INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE
(State of Other Jurisdiction of Incorporation)
0-13368 37-1103704
(Commission File Number) (IRS Employer Identification No.)
1515 CHARLESTON AVENUE, MATTOON, IL 61938
(Address Including Zip Code of Principal Executive Offices)
(217) 234-7454
(Registrant's Telephone Number,
including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] 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))
Item 8.01. Other Events
Incorporated by reference is the quarterly shareholder report issued by the
Registrant on November 8, 2005, attached as Exhibit 99, providing information
concerning the Registrant's financial statements as of September 30, 2005.
Item 9.01. Financial Statements and Exhibits
(a) None required
(b) None required
(c) None required
(d) Exhibits
Exhibit 99 - Quarterly shareholder report as of and for the period ending
September 30, 2005
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has dully caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
MID-ILLINOIS BANCSHARES, INC.
Dated: November 7, 2005 /s/ William S. Rowland
William S. Rowland
President and Chief Executive Officer
INDEX TO EXHIBITS
Exhibit
Number Description
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99 Quarterly shareholder report issued November 7, 2005
Exhibit 99
[GRAPHIC OMITTED][GRAPHIC OMITTED]
The financial performance of First Mid-Illinois Bancshares, Inc. was good during
the first nine months of 2005 with diluted earnings per share increasing to
$1.59 compared to $1.56 per share during the same period in 2004. Net income
increased to $7,242,000 for the first nine months of 2005 compared to $7,181,000
for the first nine months of 2004.
One factor in the earnings growth was greater non-interest income. Non-interest
income increased to $9,381,000 for the first nine months of 2005 compared to
$8,717,000 for the same period in 2004. Increased residential mortgage
originations and greater refinance activity as a result of lower long-term
interest rates led to mortgage banking revenues increasing by $221,000 for the
first nine months of 2005. Also, we sold securities that resulted in gains of
$223,000 greater than last year as market opportunities factored in the
decisions to sell. As a result of new business underwritten through The Checkley
Agency, Inc., insurance commissions were $152,000 greater for the first nine
months of 2005 than for the first nine months of 2004.
Net interest income also increased in 2005 to $21,546,000 compared to
$21,187,000 for the first nine months of 2004 as we have continued to grow loans
and deposits. Loan balances have increased during the year from $598 million on
December 31, 2004 to $632 million on September 30, 2005. Deposit balances also
increased from $650 million at year-end to $668 million on September 30, 2005.
Loan balances have increased due to growth in commercial real estate loans,
while deposits have increased as a result of growth in CDs and checking account
balances. The balance sheet growth has more than compensated for the decline in
margin. The Company's year-to-date net interest margin is 3.69% compared with
3.78% for the first nine months of last year. Short-term interest rates have
increased, leading to greater funding costs.
Our provision for loan losses amounted to $550,000 for the first nine months of
2005 compared to $437,000 for the same period in 2004. Net charge-offs were
$497,000 for the first nine months of 2005 compared to $303,000 for the same
period last year. Total non-performing assets were $3.8 million on September 30,
2005 compared with $4.0 million on December 31, 2004.
Non-interest expenses increased to $19.2 million for the first nine months of
2005 compared to $18.7 million for the same period in 2004 as a result of
increased costs incurred with the addition to staff in opening the new Highland
banking facility and greater professional fees.
During the quarter, The Checkley Agency, Inc. completed the move of its office
location to the corner of Route 16 and Lerna Road. The expansion in office space
will serve us well as we continue to grow this line of business.
Also, we continued to add new products and services for our customers with the
addition of remote deposit. Remote deposit is a check processing tool that
allows business customers to make deposits electronically without having to
physically take the deposit to the bank. A desktop scanner and PC-based software
are used by the business to complete deposit transactions. In this era of high
transportation costs and with many businesses having tremendous demands on their
time, this service will be of great benefit to customers and is available
through our business banking services area.
In addition, beginning in 1998, First Mid adopted an ongoing share repurchase
program to ensure that shareholders have adequate investment liquidity. This
program has been successful in enhancing shareholder value. During the third
quarter of 2005, the Board of Directors approved the repurchase of $5 million of
additional shares of the Company's common stock in open market and
privately-negotiated transactions. Any shareholder who would like to sell their
stock should contact Christie L. Wright, Vice-President of Shareholder Services
at (217) 258-0493.
We continue to work diligently to provide financial solutions for our customers.
Thank you for your continued support of First Mid-Illinois Bancshares, Inc.
Sincerely,
/s/ William S. Rowland
William S. Rowland
Chairman and Chief Executive Officer
November 7, 2005
First Mid-Illinois Bancshares, Inc.
1515 Charleston Avenue
Mattoon, Illinois 61938
217-234-7454
www.firstmid.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) (unaudited) Sep 30, Dec 31,
--------------------------------------------------------------------------------
2005 2004
Assets
Cash and due from banks $16,895 $19,119
Federal funds sold and other interest-bearing deposits 5,192 4,435
Investment securities:
Available-for-sale, at fair value 150,212 168,821
Held-to-maturity, at amortized cost (estimated fair
value of $1,467 and $1,598 at September 30, 2005
and December 31, 2004, respectively) 1,432 1,552
Loans 631,840 597,508
Less allowance for loan losses (4,674) (4,621)
--------------------------------------------------------------------------------
Net loans 627,166 592,887
Premises and equipment, net 15,182 15,227
Goodwill, net 9,034 9,034
Intangible assets, net 2,916 3,346
Other assets 12,857 12,117
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Total assets $840,886 $826,538
================================================================================
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing $94,699 $85,524
Interest bearing 573,050 564,716
--------------------------------------------------------------------------------
Total deposits 667,749 650,240
Repurchase agreements with customers 52,164 59,835
Junior subordinated debentures 10,310 10,310
Other borrowings 33,000 29,900
Other liabilities 5,688 7,189
--------------------------------------------------------------------------------
Total liabilities 768,911 757,474
--------------------------------------------------------------------------------
Stockholders' Equity:
Common stock ($4 par value; authorized
18,000,000 shares; issued 5,631,181 shares
in 2005 and 5,578,897 shares in 2004) 22,525 22,316
Additional paid-in capital 19,355 17,845
Retained earnings 59,445 53,113
Deferred compensation 2,401 2,260
Accumulated other comprehensive income (122) 623
Treasury stock at cost, 1,227,906 shares in
2005 and 1,121,546 shares in 2004 (31,629) (27,093)
--------------------------------------------------------------------------------
Total stockholders' equity 71,975 69,064
--------------------------------------------------------------------------------
Total liabilities and stockholders' equity $840,886 $826,538
================================================================================
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands) (unaudited)
--------------------------------------------------------------------------------
For the nine months ended September 30, 2005 2004
Interest income:
Interest and fees on loans $27,894 $24,941
Interest on investment securities 4,618 4,574
Interest on federal funds sold and other 218 72
--------------------------------------------------------------------------------
Total interest income 32,730 29,587
Interest expense:
Interest on deposits 8,318 6,634
Interest on repurchase agreements with customers 997 245
Interest on subordinated debt 461 255
Interest on other borrowings 1,408 1,266
--------------------------------------------------------------------------------
Total interest expense 11,184 8,400
--------------------------------------------------------------------------------
Net interest income 21,546 21,187
Provision for loan losses 550 437
--------------------------------------------------------------------------------
Net interest income after provision for loan losses 20,996 20,750
Non-interest income:
Trust revenues 1,756 1,676
Brokerage commissions 284 298
Insurance commissions 1,264 1,112
Service charges 3,420 3,572
Securities gains, net 315 92
Mortgage banking revenues 605 384
Other 1,737 1,583
--------------------------------------------------------------------------------
Total non-interest income 9,381 8,717
Non-interest expense:
Salaries and employee benefits 10,223 10,087
Net occupancy and equipment expense 3,199 3,237
Amortization of intangible assets 430 472
Other 5,341 4,860
--------------------------------------------------------------------------------
Total non-interest expense 19,193 18,656
--------------------------------------------------------------------------------
Income before income taxes 11,184 10,811
Income taxes 3,942 3,630
--------------------------------------------------------------------------------
Net income $7,242 $7,181
================================================================================
Per Share Information
(unaudited)
--------------------------------------------------------------------------------
For the nine months ended September 30, 2005 2004
Basic earnings per share $1.63 $1.59
Diluted earnings per share $1.59 $1.56
Book value per share at September 30 $16.35 $15.39
Market price of stock at September 30 $41.00 $36.50
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(In thousands) (unaudited)
--------------------------------------------------------------------------------
For the year ended September 30, 2005 2004
Balance at beginning of period $69,154 $70,595
Net income 7,242 7,181
Dividends on stock (1,056) (949)
Issuance of stock 1,544 1,775
Purchase of treasury stock (4,304) (9,479)
Deferred compensation adjustment 140 92
Changes in accumulated other comprehensive
income (loss) (745) (489)
--------------------------------------------------------------------------------
Balance at end of period $71,975 $68,726
================================================================================