MATTOON, Ill., Jan. 24, 2019 (GLOBE NEWSWIRE) — First Mid-Illinois Bancshares, Inc. (NASDAQ: FMBH) (the “Company”) today announced its financial results for the quarter and full year ended December 31, 2018.
Highlights
- Net income of $9.9 million and $36.6 million for the fourth quarter and full year, respectively
- Successfully completed the acquisition of SCB Bancorp, Inc. (“Soy Capital”) on November 15th
- Ended 2018 with $3.8 billion in total assets, an increase of approximately 36% for the year
- Wealth Management division ended the year with $3.9 billion in assets under management
“The fourth quarter was a solid ending to what was an outstanding year,” said Joe Dively, Chairman and Chief Executive Officer. “Our 2018 accomplishments were extensive and continued to support our strategic initiatives to deliver meaningful value and results for customers and shareholders.
“The quarter included one and a half months of results related to the closing of the acquisition of Soy Capital. We delivered solid net income for the period, despite an elevated loan loss provision that was primarily tied to one credit. In addition, loan growth was muted by a few payoffs and the delay in the closing of certain new loans that are still expected to close. Overall loan growth, excluding 2018 acquired loans, was 5.5% for the year and we see solid loan growth opportunities for 2019.
“With respect to Soy Capital, I am extremely pleased with how the employees have come together to deliver expanded products and services to our customers. We have already had some success in expanding and cross-selling customer relationships between the bank, insurance and wealth management business units. The fast start validates the projected acquisition value and increases my confidence in the great things we can achieve together,” Dively concluded.
Net Interest Income
Net interest income for the fourth quarter of 2018 increased by $0.9 million, or 3.0% compared to the third quarter of 2018. The increase was primarily driven by the inclusion of Soy Capital for one and a half months during the quarter, partially offset by lower accretion income. The fourth quarter included $2.1 million in total loan accretion income compared to $2.5 million in the third quarter of 2018.
In comparison to the fourth quarter of 2017, net interest income increased by $7.5 million, or 32.1%. The increase was primarily attributable to the additional revenue from our acquisition of Soy Capital and our acquisition of First BancTrust Corporation (“First Bank”) on May 1, 2018. In addition, growth in the loan portfolio and higher yields were partially offset by higher funding costs.
Net Interest Margin
Net interest margin, on a tax equivalent basis, was 3.75% for the fourth quarter compared to 3.89% in the prior quarter. The combination of adding Soy Capital to the mix, which carried a lower net interest margin, and lower accretion income were the primary drivers to the decrease from the prior quarter.
In comparison to the fourth quarter last year, the net interest margin increased slightly. The average yields on investment securities and loans increased at a greater pace than the average cost of funds.
Loan Portfolio
Total loans increased by $244.4 million, or 10.2%, during the quarter. When excluding the acquired loans from Soy Capital, total loans decreased by $7.7 million. The fourth quarter was negatively impacted by approximately $26.0 million of loans where the borrowers unexpectedly delayed the scheduled closings, which have or are expected to close in the first quarter of 2019. In addition, the quarter included an increase in payoffs. Loan yields for the quarter were 4.83%. Excluding accretion income, loan yields increased by eight basis points in the quarter.
Loans increased by $705.0 million when compared to fourth quarter last year. The increase was a combination of strong organic growth over the last twelve months and the addition of loans from Soy Capital and First Bank. Excluding acquired loans, growth in loans was 5.5% for the year.
Asset Quality
Asset quality measures were generally consistent with the prior quarter when excluding the impact of purchase accounting tied to the Soy Capital acquisition. At December 31, 2018, nonperforming loans were 1.51% of total loans. The allowance for loan losses at quarter end was 0.99% of total loans, and the allowance for loan losses to non-performing loans was 65.7%. Excluding approximately $786.5 million of outstanding acquired loans, the allowance for loan losses to total loans was approximately 1.41% at year-end. The increase in non-performing loans for the quarter to $39.8 million from $27.9 million in the prior quarter was primarily tied to the addition of Soy Capital’s loans. Excluding Soy Capital, non-performing loans were consistent with the prior quarter.
Net charge-offs were consistent with the prior quarter at $0.8 million. The Company recorded a provision for loan losses of $3.2 million during the fourth quarter compared to $2.6 million in the third quarter and $2.4 million in the fourth quarter of last year. The increase in the current quarter was primarily tied to an impairment recorded on a single credit in the amount of $1.2 million.
Deposits
Total deposits ended the period at $2.99 billion, representing an increase of $337.3 million in the quarter, including approximately $314.0 million from Soy Capital. The Company’s average rate on cost of funds was 0.60% for the quarter compared to 0.46% in the third quarter. The fourth quarter includes the impact of Soy Capital, which had a higher cost of funds.
Deposits increased by $714.0 million when compared to the fourth quarter last year. The increase was driven by a combination of organic growth and the acquisitions of Soy Capital and First Bank completed in the year.
Noninterest Income
Noninterest income for the fourth quarter of 2018 was $11.6 million compared to $7.9 million in the third quarter. The increase in the period was primarily attributable to both organic growth and the addition of Soy Capital for one and a half months.
In comparison to the fourth quarter of 2017, noninterest income increased by $4.4 million. The increase from last year was attributable to organic growth as well as the Soy Capital and First Bank acquisitions completed in the year.
Noninterest Expenses
Noninterest expense for the fourth quarter totaled $26.3 million compared to $24.5 million in the third quarter. The increase in the period was primarily attributable to the addition of Soy Capital, partially offset by a decrease in overall acquisition and merger related costs. Acquisition related costs totaled $1.1 million in the current quarter compared to $4.0 million in the third quarter. The Company’s efficiency ratio, on a tax equivalent basis, for the fourth quarter 2018 was 57.7%, which includes acquisition related costs.
In comparison to the fourth quarter of 2017, noninterest expenses increased $7.2 million. The increase was primarily attributable to the operating expenses from the Soy Capital and First Bank acquisitions in the year as well as higher acquisition related non-recurring costs.
Regulatory Capital Levels
The Company’s capital levels remained comfortably above the “well capitalized” levels and ended the period as follows:
| Total capital to risk-weighted assets | 13.63% |
| Tier 1 capital to risk-weighted assets | 12.77% |
| Common equity tier 1 capital to risk-weighted assets | 11.81% |
| Leverage ratio | 11.14% |
Capital
During the fourth quarter, the company did not sell any shares under the previously announced ‘at-the-market’ equity offering.
About First Mid-Illinois Bancshares, Inc.: First Mid-Illinois Bancshares, Inc. is the parent company of First Mid Bank & Trust, N.A., First Mid Insurance Group, First Mid Wealth Management, and Soy Capital Bank & Trust. First Mid Bank & Trust was first chartered in 1865 and has since grown into a $3.8 billion community-focused organization that provides financial services through a network of 67 banking centers in Illinois and Missouri and a loan production office in Indiana. More information about the Company is available on our website at www.firstmid.com. Our stock is traded in The NASDAQ Stock Market LLC under the ticker symbol “FMBH”.
Non-GAAP Measures: In addition to reports presented in accordance with generally accepted accounting principles (“GAAP”), this release contains certain non-GAAP financial measures. The Company believes that such non-GAAP financial measures provide investors with information useful in understanding the Company’s financial performance. Readers of this release, however, are urged to review these non-GAAP financial measures in conjunction with the GAAP results as reported. These non-GAAP financial measures are detailed as supplemental tables and include “Net Interest Margin, tax equivalent,” “Tangible Book Value per Common Share,” and “Common Equity Tier 1 Capital to Risk Weighted Assets”. While the Company believes these non-GAAP financial measures provide investors with a broader understanding of the capital adequacy, funding profile and financial trends of the Company, this information should be considered as supplemental in nature and not as a substitute to the related financial information prepared in accordance with GAAP. These non-GAAP financial measures may also differ from the similar measures presented by other companies.
Forward Looking Statements: This document may contain certain forward-looking statements about First Mid, such as discussions of First Mid’s pricing and fee trends, credit quality and outlook, liquidity, new business results, expansion plans, anticipated expenses and planned schedules. First Mid intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1955. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of First Mid, are identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. Actual results could differ materially from the results indicated by these statements because the realization of those results is subject to many risks and uncertainties, including, among other things, the possibility that any of the anticipated benefits of the acquisition of Soy Capital will not be realized or will not be realized within the expected time period; the risk that integration of the operations of Soy Capital with First Mid will be materially delayed or will be more costly or difficult than expected; changes in interest rates; general economic conditions and those in the market areas of First Mid; legislative/regulatory changes; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of First Mid’s loan or investment portfolios and the valuation of those investment portfolios; demand for loan products; deposit flows; competition, demand for financial services in the market areas of First Mid; and accounting principles, policies and guidelines. Additional information concerning First Mid, including additional factors and risks that could materially affect First Mid’s financial results, are included in First Mid’s filings with the Securities and Exchange Commission (the “SEC”), including its Annual Reports on Form 10-K. Forward-looking statements speak only as of the date they are made. Except as required under the federal securities laws or the rules and regulations of the SEC, we do not undertake any obligation to update or review any forward-looking information, whether as a result of new information, future events or otherwise.
Investor Contact: Aaron Holt
VP, Shareholder Relations
217-258-0463
[email protected]
– Tables Follow –
| FIRST MID-ILLINOIS BANCSHARES, INC. | |||||||||||
| Condensed Consolidated Balance Sheets | |||||||||||
| (In thousands, unaudited) | |||||||||||
| As of | |||||||||||
| December 31, | September 30, | December 31, | |||||||||
| 2018 | 2018 | 2017 | |||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 141,400 | $ | 64,485 | $ | 88,879 | |||||
| Investment securities | 769,279 | 670,672 | 649,596 | ||||||||
| Loans (including loans held for sale) | 2,644,519 | 2,400,160 | 1,939,501 | ||||||||
| Less allowance for loan losses | (26,189 | ) | (23,839 | ) | (19,977 | ) | |||||
| Net loans | 2,618,330 | 2,376,321 | 1,919,524 | ||||||||
| Premises and equipment, net | 59,117 | 47,327 | 38,266 | ||||||||
| Goodwill and intangibles, net | 139,097 | 102,014 | 70,829 | ||||||||
| Bank owned life insurance | 65,484 | 51,443 | 41,883 | ||||||||
| Other assets | 47,027 | 43,215 | 32,562 | ||||||||
| Total assets | $ | 3,839,734 | $ | 3,355,477 | $ | 2,841,539 | |||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Deposits: | |||||||||||
| Non-interest bearing | $ | 575,784 | $ | 493,935 | $ | 480,283 | |||||
| Interest bearing | 2,412,902 | 2,157,462 | 1,794,356 | ||||||||
| Total deposits | 2,988,686 | 2,651,397 | 2,274,639 | ||||||||
| Repurchase agreement with customers | 192,330 | 98,875 | 155,388 | ||||||||
| Other borrowings | 127,469 | 150,236 | 70,351 | ||||||||
| Junior subordinated debentures | 29,000 | 28,958 | 24,000 | ||||||||
| Other liabilities | 26,385 | 9,178 | 9,197 | ||||||||
| Total liabilities | 3,363,870 | 2,938,644 | 2,533,575 | ||||||||
| Total stockholders’ equity | 475,864 | 416,833 | 307,964 | ||||||||
| Total liabilities and stockholders’ equity | $ | 3,839,734 | $ | 3,355,477 | $ | 2,841,539 | |||||
| FIRST MID-ILLINOIS BANCSHARES, INC. | |||||||||||
| Condensed Consolidated Statements of Income | |||||||||||
| (In thousands, except per share data, unaudited) | |||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||
| December 31, | December 31, | ||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||
| Interest income: | |||||||||||
| Interest and fees on loans | $ | 30,553 | $ | 21,333 | $ | 105,772 | $ | 82,670 | |||
| Interest on investment securities | 4,966 | 3,897 | 18,237 | 16,482 | |||||||
| Interest on federal funds sold & other deposits | 269 | 83 | 556 | 403 | |||||||
| Total interest income | 35,788 | 25,313 | 124,565 | 99,555 | |||||||
| Interest expense: | |||||||||||
| Interest on deposits | 3,422 | 1,155 | 8,571 | 3,995 | |||||||
| Interest on securities sold under agreements to repurchase | 134 | 44 | 330 | 181 | |||||||
| Interest on other borrowings | 834 | 392 | 2,517 | 1,379 | |||||||
| Interest on subordinated debt | 396 | 247 | 1,409 | 927 | |||||||
| Total interest expense | 4,786 | 1,838 | 12,827 | 6,482 | |||||||
| Net interest income | 31,002 | 23,475 | 111,738 | 93,073 | |||||||
| Provision for loan losses | 3,184 | 2,411 | 8,667 | 7,462 | |||||||
| Net interest income after provision for loan | 27,818 | 21,064 | 103,071 | 85,611 | |||||||
| Non-interest income: | |||||||||||
| Trust revenues | 2,852 | 1,048 | 5,786 | 3,744 | |||||||
| Brokerage commissions | 688 | 611 | 2,674 | 2,161 | |||||||
| Insurance commissions | 2,390 | 724 | 5,592 | 3,872 | |||||||
| Service charges | 1,988 | 1,760 | 7,435 | 6,920 | |||||||
| Securities gains, net | 0 | 27 | 901 | 616 | |||||||
| Mortgage banking revenues | 266 | 309 | 1,205 | 1,184 | |||||||
| ATM/debit card revenue | 2,044 | 1,667 | 7,487 | 6,495 | |||||||
| Other | 1,419 | 1,064 | 4,334 | 5,344 | |||||||
| Total non-interest income | 11,647 | 7,210 | 35,414 | 30,336 | |||||||
| Non-interest expense: | |||||||||||
| Salaries and employee benefits | 13,952 | 10,071 | 46,803 | 39,756 | |||||||
| Net occupancy and equipment expense | 4,225 | 3,218 | 14,533 | 12,596 | |||||||
| Net other real estate owned (income) expense | 260 | 30 | 282 | 560 | |||||||
| FDIC insurance | 319 | 226 | 1,059 | 905 | |||||||
| Amortization of intangible assets | 1,156 | 502 | 3,215 | 2,153 | |||||||
| Stationary and supplies | 238 | 185 | 963 | 724 | |||||||
| Legal and professional expense | 1,318 | 1,291 | 5,243 | 3,887 | |||||||
| Marketing and donations | 541 | 447 | 1,794 | 1,356 | |||||||
| Other | 4,311 | 3,182 | 16,088 | 12,284 | |||||||
| Total non-interest expense | 26,320 | 19,152 | 89,980 | 74,221 | |||||||
| Income before income taxes | 13,145 | 9,122 | 48,505 | 41,726 | |||||||
| Income taxes | 3,206 | 4,497 | 11,905 | 15,042 | |||||||
| Net income | $ | 9,939 | $ | 4,625 | $ | 36,600 | $ | 26,684 | |||
| Per Share Information | |||||||||||
| Basic earnings per common share | $ | 0.62 | $ | 0.37 | $ | 2.53 | $ | 2.13 | |||
| Diluted earnings per common share | 0.62 | 0.37 | 2.52 | 2.13 | |||||||
| Weighted average shares outstanding | 15,985,021 | 12,628,828 | 14,487,126 | 12,531,659 | |||||||
| Diluted weighted average shares outstanding | 15,998,551 | 12,634,560 | 14,500,585 | 12,536,534 | |||||||
| FIRST MID-ILLINOIS BANCSHARES, INC. | |||||||||||||||
| Condensed Consolidated Statements of Income | |||||||||||||||
| (In thousands, except per share data, unaudited) | |||||||||||||||
| For the Quarter Ended | |||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||
| 2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||
| Interest income: | |||||||||||||||
| Interest and fees on loans | $ | 30,553 | $ | 28,850 | $ | 25,362 | $ | 21,007 | $ | 21,333 | |||||
| Interest on investment securities | 4,966 | 4,511 | 4,679 | 4,081 | 3,897 | ||||||||||
| Interest on federal funds sold & other deposits | 269 | 127 | 90 | 70 | 83 | ||||||||||
| Total interest income | 35,788 | 33,488 | 30,131 | 25,158 | 25,313 | ||||||||||
| Interest expense: | |||||||||||||||
| Interest on deposits | 3,422 | 2,217 | 1,670 | 1,262 | 1,155 | ||||||||||
| Interest on securities sold under agreements to repurchase | 134 | 72 | 65 | 59 | 44 | ||||||||||
| Interest on other borrowings | 834 | 707 | 593 | 383 | 392 | ||||||||||
| Interest on subordinated debt | 396 | 405 | 349 | 259 | 247 | ||||||||||
| Total interest expense | 4,786 | 3,401 | 2,677 | 1,963 | 1,838 | ||||||||||
| Net interest income | 31,002 | 30,087 | 27,454 | 23,195 | 23,475 | ||||||||||
| Provision for loan losses | 3,184 | 2,551 | 1,877 | 1,055 | 2,411 | ||||||||||
| Net interest income after provision for loan | 27,818 | 27,536 | 25,577 | 22,140 | 21,064 | ||||||||||
| Non-interest income: | |||||||||||||||
| Trust revenues | 2,852 | 919 | 938 | 1,077 | 1,048 | ||||||||||
| Brokerage commissions | 688 | 660 | 661 | 665 | 611 | ||||||||||
| Insurance commissions | 2,390 | 877 | 838 | 1,487 | 724 | ||||||||||
| Service charges | 1,988 | 2,009 | 1,803 | 1,635 | 1,760 | ||||||||||
| Securities gains, net | 0 | 0 | 881 | 20 | 27 | ||||||||||
| Mortgage banking revenues | 266 | 368 | 410 | 161 | 309 | ||||||||||
| ATM/debit card revenue | 2,044 | 1,979 | 1,860 | 1,604 | 1,667 | ||||||||||
| Other | 1,419 | 1,107 | 970 | 838 | 1,064 | ||||||||||
| Total non-interest income | 11,647 | 7,919 | 8,361 | 7,487 | 7,210 | ||||||||||
| Non-interest expense: | |||||||||||||||
| Salaries and employee benefits | 13,952 | 11,600 | 11,057 | 10,194 | 10,071 | ||||||||||
| Net occupancy and equipment expense | 4,225 | 3,530 | 3,505 | 3,273 | 3,218 | ||||||||||
| Net other real estate owned (income) expense | 260 | (61 | ) | 7 | 76 | 30 | |||||||||
| FDIC insurance | 319 | 174 | 285 | 281 | 226 | ||||||||||
| Amortization of intangible assets | 1,156 | 838 | 716 | 505 | 502 | ||||||||||
| Stationary and supplies | 238 | 328 | 186 | 211 | 185 | ||||||||||
| Legal and professional expense | 1,318 | 1,071 | 1,717 | 1,137 | 1,291 | ||||||||||
| Marketing and donations | 541 | 468 | 431 | 354 | 447 | ||||||||||
| Other | 4,311 | 6,542 | 2,892 | 2,343 | 3,182 | ||||||||||
| Total non-interest expense | 26,320 | 24,490 | 20,796 | 18,374 | 19,152 | ||||||||||
| Income before income taxes | 13,145 | 10,965 | 13,142 | 11,253 | 9,122 | ||||||||||
| Income taxes | 3,206 | 2,731 | 3,105 | 2,863 | 4,497 | ||||||||||
| Net income | $ | 9,939 | $ | 8,234 | $ | 10,037 | $ | 8,390 | $ | 4,625 | |||||
| FIRST MID-ILLINOIS BANCSHARES, INC. | |||||||||||||||||||
| Consolidated Financial Highlights and Ratios | |||||||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||||||
| (Unaudited) | |||||||||||||||||||
| As of and for the Quarter Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||||||
| Loan Portfolio | |||||||||||||||||||
| Construction and land development | $ | 50,618 | $ | 91,355 | $ | 88,481 | $ | 109,076 | $ | 107,594 | |||||||||
| Farm loans | 231,700 | 191,724 | 184,887 | 122,564 | 127,183 | ||||||||||||||
| 1-4 Family residential properties | 373,518 | 367,343 | 378,573 | 289,899 | 293,667 | ||||||||||||||
| Multifamily residential properties | 184,051 | 100,368 | 105,948 | 60,881 | 61,798 | ||||||||||||||
| Commercial real estate | 906,850 | 814,574 | 803,362 | 699,142 | 681,757 | ||||||||||||||
| Loans secured by real estate | 1,746,737 | 1,565,364 | 1,561,251 | 1,281,562 | 1,271,999 | ||||||||||||||
| Agricultural loans | 135,877 | 120,770 | 113,533 | 74,336 | 86,631 | ||||||||||||||
| Commercial and industrial loans | 557,011 | 540,387 | 502,211 | 458,697 | 444,263 | ||||||||||||||
| Consumer loans | 91,517 | 57,248 | 59,090 | 28,784 | 29,749 | ||||||||||||||
| All other loans | 113,377 | 116,391 | 140,598 | 134,318 | 106,859 | ||||||||||||||
| Total loans | 2,644,519 | 2,400,160 | 2,376,683 | 1,977,697 | 1,939,501 | ||||||||||||||
| Deposit Portfolio | |||||||||||||||||||
| Non-interest bearing demand deposits | $ | 575,784 | $ | 493,935 | $ | 526,117 | $ | 478,303 | $ | 480,283 | |||||||||
| Interest bearing demand deposits | 903,426 | 749,396 | 781,360 | 707,759 | 700,376 | ||||||||||||||
| Savings deposits | 432,319 | 397,910 | 405,287 | 374,594 | 359,065 | ||||||||||||||
| Money Market | 485,388 | 481,799 | 434,559 | 389,020 | 390,880 | ||||||||||||||
| Time deposits | 591,769 | 528,357 | 523,541 | 342,215 | 344,035 | ||||||||||||||
| Total deposits | 2,988,686 | 2,651,397 | 2,670,864 | 2,291,891 | 2,274,639 | ||||||||||||||
| Asset Quality | |||||||||||||||||||
| Non-performing loans | $ | 39,839 | $ | 27,924 | $ | 24,729 | $ | 17,869 | $ | 17,513 | |||||||||
| Non-performing assets | 42,434 | 30,065 | 27,237 | 19,849 | 20,347 | ||||||||||||||
| Net charge-offs | 834 | 757 | 603 | 261 | 1,022 | ||||||||||||||
| Allowance for loan losses to non-performing loans | 65.74 | % | 85.37 | % | 89.15 | % | 116.24 | % | 114.07 | % | |||||||||
| Allowance for loan losses to total loans outstanding | 0.99 | % | 0.99 | % | 0.93 | % | 1.05 | % | 1.03 | % | |||||||||
| Nonperforming loans to total loans | 1.51 | % | 1.16 | % | 1.04 | % | 0.90 | % | 0.90 | % | |||||||||
| Nonperforming assets to total assets | 1.11 | % | 0.90 | % | 0.81 | % | 0.70 | % | 0.72 | % | |||||||||
| Common Share Data | |||||||||||||||||||
| Common shares outstanding | 16,644,635 | 15,294,925 | 15,285,146 | 12,677,846 | 12,660,748 | ||||||||||||||
| Book value per common share | $ | 28.57 | $ | 27.25 | $ | 26.91 | $ | 24.50 | $ | 24.32 | |||||||||
| Tangible book value per common share | $ | 20.22 | $ | 20.58 | $ | 20.20 | $ | 18.95 | $ | 18.73 | |||||||||
| Market price of stock | $ | 31.92 | $ | 40.33 | $ | 39.30 | $ | 36.45 | $ | 38.54 | |||||||||
| Key Performance Ratios and Metrics | |||||||||||||||||||
| End of period earning assets | $ | 3,491,606 | $ | 3,081,929 | $ | 3,103,956 | $ | 2,634,223 | $ | 2,602,578 | |||||||||
| Average earning assets | 3,307,437 | 3,090,835 | 2,949,144 | 2,625,684 | 2,581,277 | ||||||||||||||
| Average rate on average earning assets (tax equivalent) | 4.35 | % | 4.35 | % | 4.16 | % | 3.95 | % | 4.01 | % | |||||||||
| Average rate on cost of funds | 0.60 | % | 0.46 | % | 0.38 | % | 0.32 | % | 0.29 | % | |||||||||
| Net interest margin (tax equivalent) | 3.75 | % | 3.89 | % | 3.79 | % | 3.65 | % | 3.72 | % | |||||||||
| Return on average assets | 1.10 | % | 0.98 | % | 1.27 | % | 1.18 | % | 0.66 | % | |||||||||
| Return on average common equity | 8.99 | % | 7.92 | % | 11.23 | % | 10.86 | % | 5.95 | % | |||||||||
| Efficiency ratio (tax equivalent) 1 | 57.66 | % | 61.56 | % | 56.65 | % | 57.16 | % | 59.08 | % | |||||||||
| Full-time equivalent employees | 818 | 686 | 711 | 591 | 592 | ||||||||||||||
| 1 Represents non-interest expense divided by the sum of fully tax equivalent net interest income and non-interest income. Non-interest expense adjustments exclude foreclosed property expense | |||||||||||||||||||
| and amortization of intangibles. Non-interest income includes tax equivalent adjustments and non-interest income excludes gains and losses on the sale of investment securities. | |||||||||||||||||||
| FIRST MID-ILLINOIS BANCSHARES, INC. | |||||||||
| Net Interest Margin | |||||||||
| For the Quarter Ended December 2018 | |||||||||
| QTD Average | Average | ||||||||
| Balance | Interest | Rate | |||||||
| INTEREST EARNING ASSETS | |||||||||
| Interest bearing deposits | 54,768 | 234 | 1.70 | % | |||||
| Federal funds sold | 663 | 3 | 1.80 | % | |||||
| Certificates of deposits investments | 5208 | 32 | 2.44 | % | |||||
| Investment Securities: | |||||||||
| Taxable (total less Municipals) | 541,393 | 3,574 | 2.64 | % | |||||
| Tax-exempt (Municipals) | 182,812 | 1,762 | 3.86 | % | |||||
| Loans (Net of Unearned Income) | 2,522,593 | 30,727 | 4.83 | % | |||||
| Total Interest Earning Assets | 3,307,437 | 36,332 | 4.35 | % | |||||
| NONEARNING ASSETS | |||||||||
| Cash and Due From Banks | 52,519 | ||||||||
| Premises and Equipment | 53,041 | ||||||||
| Other Nonearning Assets | 213,637 | ||||||||
| Allowance for Loan Losses | (24,731 | ) | |||||||
| Total Assets | $ | 3,601,903 | |||||||
| INTEREST BEARING LIABILITIES | |||||||||
| Demand Deposits | 1,307,643 | 1,256 | 0.38 | % | |||||
| Savings Deposits | 415,224 | 150 | 0.14 | % | |||||
| Time Deposits | 574,446 | 2,016 | 1.39 | % | |||||
| Repurchase Agreements | 131,469 | 134 | 0.40 | % | |||||
| FHLB Advances | 121,954 | 762 | 2.48 | % | |||||
| Federal Funds Purchased | 563 | 4 | 2.82 | % | |||||
| Subordinated Debt | 28,972 | 396 | 5.42 | % | |||||
| Other Debt | 10,108 | 68 | 2.67 | % | |||||
| Total Interest Bearing Deposits | 2,590,379 | 4,786 | 0.73 | % | |||||
| NONINTEREST BEARING LIABILITIES | |||||||||
| Demand Deposits | 548,710 | Average cost of funds | 0.60 | % | |||||
| Other Liabilities | 20,448 | ||||||||
| Stockholders’ Equity | 442,366 | ||||||||
| Total Liabilities & Equity | $ | 3,601,903 | |||||||
| Net Interest Earnings / Spread | $ | 31,546 | 3.62 | % | |||||
| Impact of Non-Interest Bearing Funds | 0.13 | % | |||||||
| Net Interest Earnings as a % of Interest | |||||||||
| Earnings Assets | 3.75 | % | |||||||
| FIRST MID-ILLINOIS BANCSHARES, INC. | |||||||||||||||||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||
| (In thousands, unaudited) | |||||||||||||||||||
| As of and for the Quarter Ended | |||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
| 2018 | 2018 | 2018 | 2018 | 2017 | |||||||||||||||
| Net interest income as reported | $ | 31,002 | $ | 30,087 | $ | 27,454 | $ | 23,195 | $ | 23,475 | |||||||||
| Net interest income, (tax equivalent) | 31,546 | 30,604 | 27,951 | 23,660 | 24,332 | ||||||||||||||
| Average earning assets | 3,307,437 | 3,090,835 | 2,949,144 | 2,625,685 | 2,581,277 | ||||||||||||||
| Net interest margin (tax equivalent) 1 | 3.75 | % | 3.89 | % | 3.79 | % | 3.65 | % | 3.72 | % | |||||||||
| Common stockholder’s equity | $ | 475,864 | $ | 416,833 | $ | 411,326 | $ | 310,587 | $ | 307,964 | |||||||||
| Goodwill and intangibles, net | 139,097 | 102,014 | 102,618 | 70,324 | 70,829 | ||||||||||||||
| Common shares outstanding | 16,645 | 15,295 | 15,285 | 12,678 | 12,661 | ||||||||||||||
| Tangible Book Value per common share | $ | 20.22 | $ | 20.58 | $ | 20.20 | $ | 18.95 | $ | 18.73 | |||||||||
| Common equity tier 1 capital | $ | 357,952 | $ | 335,552 | $ | 325,572 | $ | 254,487 | $ | 246,798 | |||||||||
| Risk weighted assets | 3,030,259 | 2,662,706 | 2,678,691 | 2,289,235 | 2,290,253 | ||||||||||||||
| Common equity tier 1 capital to risk weighted assets 2 | 11.81 | % | 12.60 | % | 12.15 | % | 11.12 | % | 10.78 | % | |||||||||
| 1 Annualized and calculated on a tax equivalent basis where interest earned on tax-exempt securities and loans is adjusted to an amount comparable to interest subject | |||||||||||||||||||
| to normal income taxes assuming a federal tax rate of 21% during 2018 and 35% during 2017 and includes the impact of non-interest bearing funds. | |||||||||||||||||||
| 2 Defined as total common equity adjusted for gains/(losses) less goodwill and intangibles divided by risk weighted assets as of period end. | |||||||||||||||||||
