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):
JANUARY 29, 2003
FIRST MID-ILLINOIS BANCSHARES, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE
(STATE OR 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)
Item 5. Other Events
Incorporated by reference is the quarterly shareholder report issued by the
Registrant on January 29, 2003, attached as Exhibit 99, providing information
concerning the Registrant's financial statements as of December 31, 2002.
Item 7. Financial Statements and Exhibits
(c) Exhibits
Exhibit 99 - Quarterly shareholder report issued January 29, 2003
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.
FIRST MID-ILLINOIS BANCSHARES, INC.
Dated: January 29, 2003 By: /s/ William S. Rowland
-----------------------------
William S. Rowland
President and Chief
Executive Officer
EXHIBIT INDEX
Exhibit
Number Description
99 Quarterly shareholder report issued January 29, 2003
Exhibit 99
January 29, 2003
Quarterly Report to the Owners,
First Mid-Illinois Bancshares, Inc.
We are pleased to report that First Mid-Illinois Bancshares, Inc. had a
successful 2002 with diluted earnings per share increasing to $2.38 per share as
compared to $1.92 per share in 2001, a 24 percent increase. Net income increased
to $8,034,000 in 2002 as compared to $6,516,000 in 2001. As a result of this
performance, the Company increased its annual dividend to $.50 per share in 2002
from $.43 per share in 2001. Effective January 1, 2002, the Company adopted
Statements of Financial Accounting Standards Numbers 142 and 147 and ceased
amortization of goodwill from business combinations. The adoption of these
accounting standards increased 2002 diluted earnings per share by $.17 per
diluted share.
Net interest income before provision for loan losses was $26,726,000 for 2002 as
compared to $23,916,000 in 2001, representing an increase of $2,810,000. An
increase in the net interest margin and growth in net average earning assets
helped to increase 2002 profitability. The Company's tax equivalent net interest
margin for 2002 increased to 4.09% as compared to 3.99% in 2001 due to growth in
the loan portfolio and lower funding costs. Loan balances increased by $26.6
million during the year. The loan growth was primarily in commercial and
commercial real estate loans. The Company incurred net charge-offs of $1,054,000
in 2002 as compared with $435,000 for 2001. The increase in net charge-offs led
management to increase the provision for loan losses to $1,075,000 for 2002 as
compared with $600,000 in 2001.
Non-interest income was $10,832,000 for 2002 as compared to $8,672,000 in 2001.
The increase was primarily the result of increased insurance commission revenue
generated since the purchase of The Checkley Agency, Inc., in January, 2002,
growth in deposit service charges as a result of increases in deposit balances
and overdraft fees, and a lower interest rate environment that has led to
increased mortgage loan originations and sales.
Non-interest expenses of $24,444,000 increased by $2,012,000 when compared to
2001 primarily as a result of the increased costs associated with the
acquisition and operations of Checkley and the operations of the Highland
banking center acquired in April 2001. In addition, expenses associated with the
opening of new locations in Champaign and Maryville were incurred in 2002.
During 2002, we acquired 240,346 shares of our own stock in open market and
through privately-negotiated transactions. These acquisitions of stock were made
under a share repurchase program which we initiated in 1998 and which is
ongoing. For additional information about the program, please contact Ms.
Christie Burich, Vice-President and Director of Shareholder Services, at (217)
258-0493 or by email at cburich@firstmid.com.
Thank you for your continued support and confidence in First Mid-Illinois
Bancshares, Inc.
Sincerely,
\s\William S. Rowland
William S. Rowland
Chairman and Chief Executive Officer
Condensed Consolidated Balance Sheets
(In thousands, except share data) (unaudited) December 31, December 31,
2002 2001
Assets
Cash and due from banks $ 42,432 $ 28,871
Federal funds sold 27,225 4,225
Investment securities:
Available-for-sale, at fair value 166,415 160,096
Held-to-maturity, at amortized cost (estimated fair
value of $1,927 and $2,136 at December 31, 2002
and December 31, 2001, respectively) 1,902 2,071
Loans 499,864 473,243
Less allowance for loan losses (3,723) (3,702)
---------------- ----------------
Net loans 496,141 469,541
Premises and equipment, net 16,916 16,656
Goodwill, net 9,034 9,034
Intangible assets, net 4,586 3,358
Other assets 11,589 12,127
---------------- ----------------
Total assets $776,240 $705,979
================ ================
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing $ 84,025 $ 80,265
Interest bearing 529,427 479,155
---------------- ----------------
Total deposits 613,452 559,420
Repurchase agreements with customers 44,184 38,879
Other borrowings 44,625 37,625
Other liabilities 7,172 6,130
---------------- ----------------
Total liabilities $709,433 $642,054
---------------- ----------------
Stockholders' Equity:
Common stock ($4 par value; authorized 6,000,000 shares;
issued 3,603,737 shares in 2002 and 3,546,060 shares in 2001) $14,415 $14,184
Additional paid-in-capital 14,450 13,288
Retained earnings 45,896 39,500
Deferred compensation 1,589 1,392
Accumulated other comprehensive income 2,373 740
Treasury stock at cost, 414,562 shares in 2002 and 174,216 shares in 2001 (11,916) (5,179)
---------------- ----------------
Total stockholders' equity 66,807 63,925
---------------- ----------------
Total liabilities and stockholders' equity $776,240 $705,979
================ ================
Condensed Consolidated Statements of Income
(In thousands) (unaudited)
For the year ended December 31, 2002 2001
Interest income:
Interest and fees on loans $33,726 $ 36,877
Interest on investment securities 7,325 8,294
Interest on federal funds sold and other 336 335
----------- -----------
Total interest income 41,387 45,506
Interest expense:
Interest on deposits 12,253 18,773
Interest on repurchase agreements with customers 345 915
Interest on other borrowings 2,063 1,902
----------- -----------
Total interest expense 14,661 21,590
----------- -----------
Net interest income 26,726 23,916
----------- -----------
Provision for loan losses 1,075 600
----------- -----------
Net interest income after provision for loan losses 25,651 23,316
Non-interest income:
Trust revenues 1,855 1,924
Brokerage commissions 265 234
Insurance commissions 1,182 122
Service charges 3,799 3,122
Securities gains, net 223 208
Mortgage banking revenues 1,514 1,156
Other 1,994 1,906
----------- -----------
Total non-interest income 10,832 8,672
Non-interest expense:
Salaries and employee benefits 12,732 11,116
Net occupancy and equipment expense 4,055 3,909
Amortization of goodwill -- 704
Amortization of intangible assets 676 524
Other 6,981 6,179
----------- -----------
Total non-interest expense 24,444 22,432
----------- -----------
Income before income taxes 12,039 9,556
----------- -----------
Income taxes 4,005 3,040
----------- -----------
Net income $ 8,034 $ 6,516
=========== ===========
Condensed Consolidated Statements of Changes in Stockholders' Equity
(In thousands) (unaudited)
For the year ended December 31, 2002 2001
Balance at beginning of year $ 63,925 $ 57,727
Net income 8,034 6,516
Dividends on stock (1,640) (1,460)
Issuance of stock 1,394 1,151
Purchase of treasury stock (6,540) (1,037)
Change in accumulated other comprehensive income 1,634 1,028
------------ ------------
Balance at end of year $ 66,807 $ 63,925
============ ============
Per Share Information
(unaudited)
For the year ended December 31, 2002 2001
Basic earnings per share $ 2.39 $ 1.93
Diluted earnings per share $ 2.38 $ 1.92
Book value per share $ 20.95 $ 18.96
First Mid-Illinois Bancshares, Inc.
1515 Charleston Avenue
Mattoon, Illinois 61938
(217) 234-7454
www.firstmid.com