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
APRIL 21, 2000
COMMISSION FILE NUMBER: 0-13368
FIRST MID-ILLINOIS BANCSHARES, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
37-1103704
(I.R.S. employer identification No.)
1515 CHARLESTON AVENUE / PO BOX 499, MATTOON, ILLINOIS 61938
(Address and Zip Code of Principal Executive Offices)
(217) 234-7454
(Registrant's telephone number, including area code)
<PAGE>
ITEM 5: OTHER EVENTS
On April 21, 2000, First Mid-Illinois Bancshares, Inc. issued its
Quarterly Report to Owners for the first quarter of 2000. The Quarterly Report
to Owners is attached hereto as Exhibit 99.1 and is incorporated by reference.
On April 21, 2000, First Mid-Illinois Bancshares, Inc. issued a press
release pertaining to its first quarter 2000 results. The text of the press
release is attached hereto as Exhibit 99.2 and is incorporated by reference.
<PAGE>
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 hereunto duly authorized.
FIRST MID-ILLINOIS BANCSHARES, INC.
By: /S/ WILLIAM S. ROWLAND
William S. Rowland
President and Chief Executive Officer
Date: APRIL 21, 2000
<PAGE>
EXHIBIT INDEX
Exhibit 99.1 Quarterly Report to Owners for the first quarter of 2000
issued by First Mid-Illinois Bancshares, Inc. dated April 21,
2000
Exhibit 99.2 Press release for the first quarter of 2000 issued by First
Mid-Illinois Bancshares, Inc. dated April 21, 2000
<PAGE>
EXHIBIT 99.1
April 19, 2000
Quarterly Report to the Owners,
First Mid-Illinois Bancshares, Inc.
First Mid-Illinois Bancshares had a successful first quarter with net
income increasing to $1,430,000 as compared to $1,356,000 in the first quarter
of 1999. Diluted earnings per share increased to $.63 as compared to $.60 in
the first quarter of 1999 and $.57 in the fourth quarter of 1999. Cash
earnings per share (computed before charges for amortization of goodwill and
other intangibles) increased to $.73 per share in the first quarter of 2000 as
compared to $.66 in the first quarter of 1999 and $.64 in the fourth quarter of
1999. Earnings were driven largely by loan growth with total loans amounting
to $397,542,000 on March 31, 2000 as compared to $388,319,000 at December 31,
1999.
Trust, brokerage and deposit-based service charge revenues all increased
from 1999 levels. Mortgage banking revenue declined significantly however -
$62,000 in 2000 as compared with $329,000 in 1999. Last year's mortgage
banking revenue was driven in large part by customer refinancings - a trend
that began in early 1998. With the increase in mortgage interest rates which
began in mid 1999, these refinancings dropped significantly. We continue to
experience strong residential loan demand in 2000, but it is generally for the
purchase of new or existing homes rather than for refinancings of the owners'
current homes.
Expenses in the first quarter of 2000 are approximately $500,000 higher
than in the first quarter of last year, largely as a result of expansion of our
branch network. In May 1999, we acquired branches in Monticello, Taylorville
and De Land from Bank One and our Decatur de novo branch opened for business on
April 17, 2000. We look forward to the opportunities these communities
provide. Decatur is an especially good market where a number of mergers and
acquisitions have recently taken place. We believe this presents us with an
opportunity to grow and increase our overall regional presence. I think it is
especially noteworthy that the Decatur branch opened 135 years to the day from
when our original banking charter was granted on April 17, 1865. This is a
reflection of our long-term support of the region's economic interests and of
our long-standing commitment to customer service.
We emphasized our stock-buy-back program during 2000 and have acquired
23,647 shares for the treasury to date this year. This program provides
liquidity for our shareholders and is an excellent way for us to effectively
deploy and leverage our capital resources. In March, the Board of Directors
authorized the repurchase of an additional 5% of our outstanding shares and any
shareholder who wishes to sell their shares to the Company should contact Ms.
Christie L. Burich at 217-258-0493.
Our 2000 annual meeting of shareholders will be held at 4:00 PM on May
17, 2000 in the main lobby of First Mid-Illinois Bank & Trust, N.A., 1515
Charleston Avenue, Mattoon, Illinois. All shareholders are invited to attend.
On behalf of the Board, management and entire staff of the Company, I thank
you for your continued support and look forward to meeting as many of you as
possible at the annual meeting.
William S. Rowland
Chairman and Chief Executive Officer
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<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) March 31, December 31,
2000 1999
<S> <C> <C>
ASSETS
Cash and due from banks $ 16,125 $ 21,132
Federal funds sold 516 710
Investment securities:
Available-for-sale, at fair value 148,366 150,157
Held-to-maturity, at amortized cost (estimated fair
value of $3,083 and $ 2,077 at March 31,2000
and December 31, 1999 respectively) 3,132 2,132
Loans 397,542 388,319
Less allowance for loan losses (3,069) (2,939)
Net loans 394,473 385,380
Premises and equipment, net 16,049 16,153
Intangible assets, net 13,038 13,340
Other assets 10,866 12,099
TOTAL ASSETS $602,565 $601,103
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 63,609 $ 60,555
Interest bearing 420,153 424,456
Total deposits 483,762 485,011
Other borrowings 57,183 54,983
Long-term debt 4,325 4,325
Other liabilities 4,702 5,266
TOTAL LIABILITIES 549,972 549,585
Stockholders' Equity
Common stock ($4 par value; authorized
6,000,000 shares; issued 2,312,901
shares in 2000 and 2,302,022 shares in 1999) 9,252 9,208
Additional paid-in-capital 11,940 11,608
Retained earnings 36,264 34,835
Deferred compensation 1,179 1,123
Accumulated other comprehensive income (3,317) (3,265)
Less: Treasury stock at cost, 45,858 shares in 2000 (2,725) (1,991)
TOTAL STOCKHOLDERS' EQUITY 52,593 51,518
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $602,565 $601,103
</TABLE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
For the quarters ended March 31, 2000 1999
<S> <C> <C>
(In thousands, except per share data)
INTEREST INCOME:
Interest and fees on loans $ 8,165 $ 6,869
Interest on investment securities 2,288 2,054
Interest on excess funds sold 38 57
Total interest income 10,491 8,980
INTEREST EXPENSE:
Interest on deposits 4,233 3,700
Interest on other borrowings 684 461
Interest on long-term debt 75 70
Total interest expense 4,992 4,231
NET INTEREST INCOME 5,499 4,749
Provision for loan losses 150 150
Net interest income after provision for loan losses 5,349 4,599
OTHER INCOME:
Trust revenues 513 481
Brokerage revenues 137 120
Service charges 592 500
Mortgage banking income 62 329
Other 306 338
Total other income 1,610 1,768
OTHER EXPENSE:
Salaries and employee benefits 2,510 2,253
Net occupancy and equipment expense 878 769
Federal deposit insurance premiums 26 26
Amortization of intangible assets 302 191
Other 1,180 1,129
Total other expense 4,896 4,368
Income before income taxes 2,063 1,999
Income taxes 633 643
NET INCOME $ 1,430 $ 1,356
</TABLE>
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(in thousands)
For the quarters ended March 31, 2000 1999
Balance at beginning of period $ 51,518 $ 50,480
Net income 1,430 1,356
Dividends on preferred stock -- ( 71)
Issuance of common stock 374 397
Purchase of treasury stock (677) ( 80)
Change in accumulated other comprehensive income ( 52) (559)
Balance at end of period $ 52,593 $ 51,523
PER SHARE INFORMATION
March 31, March 31,
2000 1999
Cash earnings per common share $ .73 $ .66
Diluted earnings per common share $ .63 $ .60
Book value per common share $ 23.20 $ 24.03
FIRST MID-ILLINOIS BANCSHARES, INC.
1515 Charleston Avenue
Mattoon, Illinois 61938
(217) 234-7454
www.firstmid.com
<PAGE>
EXHIBIT 99.2
FOR IMMEDIATE RELEASE:
First Mid-Illinois Bancshares, Inc. announced that its net income for the
first quarter of 2000 amounted to $1,430,000, a 5.5% improvement from 1999's
first quarter net income of $1,356,000. Diluted earnings per share increased
to $.63 compared to $.60 in the first quarter of 1999 and $.57 in the fourth
quarter of 1999. Cash earnings per share (computed before charges for
amortization of goodwill and other intangible assets) increased to $.73 in the
first quarter of 2000 as compared to $.66 in the first quarter of 1999 and $.64
in 1999's fourth quarter. Total assets of the Company amounted to $602 million
at March 31, 2000 with another $330 million of customer assets under management
in the Trust Department of First Mid-Illinois Bank & Trust.
William S. Rowland, Chairman and Chief Executive Officer said, "I am
pleased with our performance to date in 2000. We have experienced significant
loan growth during the past year and this is having a positive impact on our
financial performance. At March 31, 2000, our loans totaled $397 million, a
20% increase from March 31, 1999. We see this as both a reflection of the
economic vitality of central Illinois, as well as of our ability to serve the
region and share in its growth."
Rowland added, "On April 17, 2000, our Decatur banking center officially
opened for business at 111 E. Main. We have a great opportunity for growth in
Decatur and it is a natural extension of our central Illinois community banking
franchise. It is especially noteworthy that this location opened exactly 135
years to the day from when our original banking charter was granted on April
17, 1865. This is a reflection of our long-term support of the region's
economic interests and of our long-standing commitment to customer service."
First Mid-Illinois Bancshares, Inc. is a central Illinois based financial
services organization and is the parent company for First Mid-Illinois Bank &
Trust, N.A., First Mid-Illinois Insurance Services, Inc. and Mid-Illinois Data
Services, Inc. The company operates 19 banking centers in 13 communities,
including: Mattoon, Charleston, Decatur, Effingham, Neoga, Sullivan, Altamont,
Arcola, Tuscola, Taylorville, Monticello, De Land and Urbana.
