First Mid Bancshares (FMBH) 8-K Results of Operations and Financial Condition

Exhibit 99

[GRAPHIC OMITTED][GRAPHIC OMITTED]

The financial performance of First Mid-Illinois Bancshares, Inc. was good during the first six months of 2007 with diluted earnings per share increasing 4% to $.77 per share compared to $.74 per share during the same period in 2006. Net income increased to $5,001,000 for the first half of 2007 compared to $4,926,000 for the first half of 2006. As a result of this performance, the Board of Directors elected to increase the dividend to $.19 per share for the first half of 2007 from $.17 per share for the first half of 2006. The dividend was paid on June 15, 2007 to shareholders of record as of June 1, 2007. The Board also declared a three-for-two stock split in the form of a 50 percent stock dividend. This stock dividend was declared on May 23, 2007 and paid on June 29, 2007 to shareholders of record as of June 18, 2007. As a result of this stock dividend, all share and per share information for current and prior periods presented in this report have been adjusted to reflect the stock split. This is our fourth stock split since 1997 and is reflective of our long-term commitment to shareholder value.

Growth in both non-interest income and net interest income were the primary contributors to the increase in earnings. It is important to note for year-to-year comparisons that the consolidated financial statements include the results of Peoples State Bank of Mansfield since acquisition date of May 1, 2006. Non-interest income increased to $7,378,000 for the first half of 2007 as compared to $6,548,000 for the same period in 2006. Growth in deposit account balances led to an increase in service charge income. In addition, trust revenues increased as a result of growth in agency and employee benefit accounts and mortgage banking revenues increased by $93,000. We added experienced loan personnel in Maryville and Champaign in the past few years and we are pleased with the increased activity in these markets. Also, we sold securities that resulted in a gain of $156,000 during the first half of 2007 as market opportunities and investment portfolio liquidity factored in the decision to sell.

Net interest income increased to $15,337,000 as compared to $14,905,000 for the first half of 2006. This was the result of growth in loans. Loan balances on June 30, 2007 were $732 million as compared to $718 million on June 30, 2006 with the majority of the growth in commercial real estate loans. Deposit balances actually decreased to $766 million from $780 million last June. However, $42 million in brokered deposits were allowed to mature during that time and were the reason for the decrease. These brokered deposits were allowed to mature in light of the deposits acquired in the Peoples acquisition and growth in customer deposits from the remainder of our markets. The growth in loans has offset a decline in the Company’s net interest margin. The Company’s year-to-date net interest margin was 3.46% on a tax-equivalent basis as compared to 3.62% for the first half of last year as short-term interest rates remain higher than longer-term rates and intense competition for loans and deposits has led to reduced margins.

Non-interest expense increased to $14,885,000 compared with $13,666,000 for the first half of 2007. This increase is primarily attributed to costs associated with the three locations in Mansfield, Mahomet, and Weldon acquired in the Peoples acquisition.

Credit quality remains an area of importance to us and one to which we devote significant resources. Our net charge-offs for the first half of 2007 were low at only $113,000, but we have seen an increase in the level of non-performing loans. Non-performing loans were $7.6 million on June 30, 2007 as compared to $3.6 million on June 30, 2006. This increase was primarily due to insufficient cash flow on four commercial real estate loans to one borrower which totaled $3.9 million. We believe we are adequately collateralized on these credits and are actively working with the borrower on repayment plans.

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. In February 2007, 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 LeeAnn Perry, Manager of Shareholder Services at (217) 258-0493.

I would also like to extend a sincere thank you to Christie Wright for her years of dedicated service to First Mid. Christie has announced that she will be retiring at the end of this month to spend more time with family and friends. She has been with our organization for twenty-two years, has led our shareholder services activities for the past twelve years, and has always displayed a high degree of professionalism. We wish her well.

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

July 26, 2007

First Mid-Illinois Bancshares, Inc.

1515 Charleston Avenue

Mattoon, Illinois 61938

217-234-7454

www.firstmid.com

CONDENSED CONSOLIDATED BALANCE SHEETS
		(unaudited)
(in thousands, except share data)		Jun 30			Dec 31
		2007			2006
Assets
Cash and due from banks	$	18,964		$	20,266
Federal funds sold and other interest-bearing deposits		370			1,570
Investment securities:
Available-for-sale, at fair value		185,366			184,266
Held-to-maturity, at amortized cost (estimated fair value of $1,212 and
$1,346 at June 30, 2007 and December 31, 2006, respectively		1,198			1,323
Loans		731,803			723,568
Less allowance for loan losses		(6,158	)		(5,876	)
Net loans		725,645			717,692
Premises and equipment, net		15,904			16,293
Goodwill, net		17,363			17,363
Intangible assets, net		4,715			5,148
Other assets		15,971			16,638
Total assets	$	985,496		$	980,559
Liabilities and Stockholders’ Equity
Deposits:
Non-interest bearing	$	110,415		$	121,405
Interest bearing		655,759			649,190
Total deposits		766,174			770,595
Repurchase agreements with customers		45,520			66,693
Other borrowings		68,000			37,800
Junior subordinated debentures		20,620			20,620
Other liabilities		8,015			9,065
Total liabilities		908,329			904,773
Stockholders’ Equity:
Common stock ($4 par value; authorized18,000,000 shares; issued
7,120,368 shares in 2007 and 8,552,886 shares in 2006)		28,481			22,808
Additional paid-in capital		23,045			21,261
Retained earnings		51,282			68,625
Deferred compensation		2,496			2,629
Accumulated other comprehensive income (loss)		(900	)		19
Treasury stock at cost, 746,874 shares in 2007 and 2,121,269
in 2006		(27,237	)		(39,556	)
Total stockholders’ equity		77,167			75,786
Total liabilities and stockholders’ equity	$	985,496		$	980,559

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands) (unaudited)
For the six months ended June 30,		2007		2006
Interest income:
Interest and fees on loans	$	24,594	$	21,800
Interest on investment securities		4,481		3,584
Interest on federal funds sold & other deposits		151		126
Total interest income		29,226		25,510
Interest expense:
Interest on deposits		10,692		7,830
Interest on repurchase agreements with customers		1,169		1,011
Interest on other borrowings		1,245		494
Interest on subordinated debt		783		1,270
Total interest expense		13,889		10,605
Net interest income		15,337		14,905
Provision for loan losses		395		404
Net interest income after provision for loan losses		14,942		14,501
Non-interest income:
Trust revenues		1,335		1,209
Brokerage commissions		252		296
Insurance commissions		1,126		1,074
Services charges		2,714		2,484
Securities gains (losses), net		156		(1	)
Mortgage banking revenues		254		161
Other		1,541		1,325
Total non-interest income		7,378		6,548
Non-interest expense:
Salaries and employee benefits		8,084		7,447
Net occupancy and equipment expense		2,414		2,334
Amortization of intangible assets		433		329
Other		3,954		3,556
Total non-interest expense		14,885		13,666
Income before income taxes		7,435		7,383
Income taxes		2,434		2,457
Net income	$	5,001	$	4,926
Per Share Information (unaudited)
For the six months ended June 30,		2007		2006
Basic earnings per share	$	0.78	$	0.75
Diluted earnings per share		0.77		0.74
Book value per share at June 30		12.11		11.16
Market price of stock at June 30		26.33		27.50

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(In thousands) (unaudited)
For the six months ended June 30,		2007			2006
Balance at beginning of period	$	75,786		$	72,326
Net income		5,001			4,926
Dividends on stock		(1,182	)		(1,128	)
Issuance of stock		1,383			1,232
Purchase of treasury stock		(3,484	)		(4,239	)
Deferred compensation and other adjustments		582			239
Changes in accumulated other comprehensive income (loss)		(919	)		(864	)
Balance at end of period	$	77,167		$	72,492