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 26, 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 January 26, 2005, attached as Exhibit 99, providing information
concerning the Registrant's financial statements as of December 31, 2004.
Item 9.01. Financial Statements and Exhibits
(a) None required
(b) None required
(c) Exhibits
Exhibit 99 - Quarterly shareholder report as of and for the period
ending December 31, 2004
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 26, 2005 By: /s/ William S. Rowland
William S. Rowland
President and Chief
Executive Officer
INDEX TO EXHIBITS
Exhibit
Number Description
--------------------------------------------------------------------------------
99 Quarterly shareholder report issued January 26, 2005
Exhibit 99
[GRAPHIC OMITTED][GRAPHIC OMITTED]
First Mid-Illinois Bancshares, Inc. experienced another successful year in 2004,
with diluted earnings per share increasing to $2.09 as compared with $1.88 per
share in 2003, an 11% increase. In 2004, net income increased to $9,604,000 as
compared with $9,093,000 in 2003. As a result, the Company increased its regular
annual dividend to $.45 per share in 2004 from $.38 per share in 2003. All share
and per share information for current and prior periods presented in this report
have been adjusted to reflect the three-for-two stock split in the form of a 50%
stock dividend completed in July 2004.
Net interest income, trust revenue, brokerage commissions and service charge
revenue all had meaningful increases in 2004, whereas revenue from our mortgage
banking activities declined significantly from $1.7 million in 2003 to $.5
million in 2004. We anticipated the 2004 decline because 2003 was an
uncharacteristically active year for home refinancings.
We continued to grow in 2004 with loan totals ending the year at $598 million,
an increase of $45 million from December 31, 2003. Deposits also grew, although
not as rapidly as loans. Year-end 2004 deposits amounted to $650 million
compared with $615 million last year. Competition for quality loans and
economically priced deposits is intense throughout our market area, so we are
pleased with our 2004 growth.
Credit quality is of high importance to banks and is an area where we invest
significant energies. Our 2004 experience was good with net loan losses of only
$393,000. While we would, of course, prefer to have no losses, this amount
compares well with peer banks and is reasonable given the size of our loan
portfolio.
At First Mid, we consider any loan which is past due 90 days or more to be
non-performing and immediately stop accruing interest on the loan. We follow
this policy regardless of our collateral position or whether we anticipate a
loss. Our non-performing loans totaled $3.1 million on December 31, 2004, a
slight decline from the 2003 year-end total of $3.3 million. Because loan losses
were not significant and non-performing loan totals were not excessive, we were
able to reduce our annual provision for loan losses to $588,000 in 2004 from
$1,000,000 in 2003.
Earlier, I mentioned that our trust revenues increased in 2004 as compared with
2003. The amount of the increase was $262,000, or 13%, and resulted from growth
in trust assets due to market value increases and from new customers. In total,
trust assets ended the year at $388 million as compared with $350 million at the
end of 2003. We consider our trust activities to be critical for our long-term
success. As the baby boom generation ages, the United States approaches an
enormous intergenerational transfer of wealth. Just as our banking operations
provide us with the opportunity to serve customers during their working years,
our trust department positions us to serve customers during their retirement
years, when personal wealth management becomes a key concern.
Beginning in 2003 and continuing through 2004, we increased our expense
management efforts to ensure that our overhead costs were directed towards those
activities which served the interests of our shareholders. In total,
non-interest expense increased $470,000, or 1.9%, in 2004 as compared with 2003.
Sarbanes-Oxley compliance costs accounted for most of this increase so we are
pleased with our expense management efforts.
During 2004, we repurchased 320,000 shares of our own stock in the open market
and through various privately-negotiated transactions. This program has proven
to be an effective way of increasing value for shareholders. Any shareholder who
wishes to use this service should contact Christie L. Wright at (217) 258-0493.
In April, our Company will celebrate 140 years of providing financial services
to the people of Illinois. Businesses do not survive 140 years without the trust
and confidence of those it does business with. At First Mid, we work hard to
obtain and retain the trust and confidence of our shareholders, our customers,
our communities, and our employees. Together, we have built an outstanding
organization--one in which we can all take a great deal of pride.
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
January 26, 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) December 31, December 31,
--------------------------------------------------------------------------------
2004 2003
Assets
Cash and due from banks $19,119 $20,659
Federal funds sold and other interest-bearing deposits 4,435 4,290
Investment securities:
Available-for-sale, at fair value 168,821 176,481
Held-to-maturity, at amortized cost (estimated fair
value of $1,598 and $1,687 at December 31, 2004
and December 31, 2003, respectively) 1,552 1,677
Loans 597,508 552,824
Less allowance for loan losses (4,621) (4,426)
--------------------------------------------------------------------------------
Net loans 592,887 548,398
Premises and equipment, net 15,227 16,059
Goodwill, net 9,034 9,034
Intangible assets, net 3,346 3,969
Other assets 12,117 13,078
--------------------------------------------------------------------------------
Total assets $826,538 $793,645
================================================================================
Liabilities and Stockholders' Equity
Deposits:
Non-interest bearing $85,524 $94,723
Interest bearing 564,716 520,269
--------------------------------------------------------------------------------
Total deposits 650,240 614,992
Repurchase agreements with customers 59,835 59,875
Junior subordinated debentures 10,310 -
Other borrowings 29,900 39,925
Other liabilities 7,189 8,258
--------------------------------------------------------------------------------
Total liabilities 757,474 723,050
--------------------------------------------------------------------------------
Stockholders' Equity:
Common stock ($4 par value; authorized
18,000,000 shares; issued 5,578,897 shares
in 2004 and 5,501,831 shares in 2003) 22,316 14,672
Additional paid-in capital 17,845 15,960
Retained earnings 53,113 52,942
Deferred compensation 2,260 1,881
Accumulated other comprehensive income 623 1,581
Treasury stock at cost, 1,121,546 shares in
2004 and 801,928 shares in 2003 (27,093) (16,441)
--------------------------------------------------------------------------------
Total stockholders' equity 69,064 70,595
--------------------------------------------------------------------------------
Total liabilities and stockholders' equity $826,538 $793,645
================================================================================
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands) (unaudited)
--------------------------------------------------------------------------------
For the year ended December 31, 2004 2003
Interest income:
Interest and fees on loans $33,841 $32,435
Interest on investment securities 6,053 6,227
Interest on federal funds sold and other 178 276
--------------------------------------------------------------------------------
Total interest income 40,072 38,938
Interest expense:
Interest on deposits 9,122 9,751
Interest on repurchase agreements with customers 455 272
Interest on subordinated debt 382 -
Interest on other borrowings 1,685 1,873
--------------------------------------------------------------------------------
Total interest expense 11,644 11,896
--------------------------------------------------------------------------------
Net interest income 28,428 27,042
Provision for loan losses 588 1,000
--------------------------------------------------------------------------------
Net interest income after provision for loan losses 27,840 26,042
Non-interest income:
Trust revenues 2,254 1,992
Brokerage commissions 428 283
Insurance commissions 1,447 1,476
Service charges 4,746 4,484
Securities gains, net 92 370
Mortgage banking revenues 522 1,672
Other 2,150 1,978
--------------------------------------------------------------------------------
Total non-interest income 11,639 12,255
Non-interest expense:
Salaries and employee benefits 13,487 13,232
Net occupancy and equipment expense 4,259 4,290
Amortization of intangible assets 623 774
Other 6,631 6,234
--------------------------------------------------------------------------------
Total non-interest expense 25,000 24,530
--------------------------------------------------------------------------------
Income before income taxes 14,479 13,767
Income taxes 4,875 4,674
--------------------------------------------------------------------------------
Net income $9,604 $9,093
================================================================================
Per Share Information
(unaudited)
--------------------------------------------------------------------------------
For the year ended December 31, 2004 2003
Basic earnings per share $2.13 $1.92
Diluted earnings per share $2.09 $1.88
Book value per share at December 31 $15.49 $15.02
Market price of stock at December 31 $38.00 $31.03
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(In thousands) (unaudited)
--------------------------------------------------------------------------------
For the year ended December 31, 2004 2003
Balance at beginning of period $70,595 $66,807
Net income 9,604 9,093
Dividends on stock (2,022) (2,047)
Issuance of stock 2,050 1,767
Purchase of treasury stock (10,365) (4,233)
Deferred compensation adjustment 160 -
Changes in accumulated other comprehensive
income (loss) (958) (792)
--------------------------------------------------------------------------------
Balance at end of period $69,064 $70,595
================================================================================