0000314489-14-000030.txt : 20141021 0000314489-14-000030.hdr.sgml : 20141021 20141021170842 ACCESSION NUMBER: 0000314489-14-000030 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20141021 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20141021 DATE AS OF CHANGE: 20141021 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST BUSEY CORP /NV/ CENTRAL INDEX KEY: 0000314489 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 371078406 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15950 FILM NUMBER: 141166292 BUSINESS ADDRESS: STREET 1: 201 W MAIN STREET CITY: URBANA STATE: IL ZIP: 61801 BUSINESS PHONE: 2173844513 MAIL ADDRESS: STREET 1: 201 W MAIN STREET STREET 2: PO BOX 123 CITY: URBANA STATE: IL ZIP: 61801 8-K 1 form8k_fbc.htm FORM 8K FBC



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):  October 21, 2014
First Busey Corporation
(Exact name of registrant as specified in its charter)
Nevada
              0-15950
37-1078406
(State or other jurisdiction of incorporation)
               (Commission File Number)
(I.R.S. Employer Identification No.)
100 W. University Ave.
Champaign, Illinois  61820
(Address of principal executive offices) (Zip code)
(217) 365-4544
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report.)
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 (see General Instruction A.2. below):
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


 



Item 2.02.                          Results of Operations and Financial Condition.
On Tuesday, October 21, 2014, First Busey Corporation ("First Busey") issued a press release disclosing financial results for the quarter ended September 30, 2014.  The press release is made part of this Form 8-K and is attached as Exhibit 99.1.
The press release made a part of this Current Report on Form 8-K includes forward looking statements that are intended to be covered by the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.  These forward looking statements include but are not limited to comments with respect to the objectives and strategies, financial condition, results of operations and business of the Registrant.
These forward looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward looking statements will not be achieved.  First Busey cautions you not to place undue reliance on these forward looking statements as a number of important factors could cause actual future results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward looking statements.
Item 9.01.                          Financial Statements and Exhibits.
(d)            Exhibits.
99.1 Press Release issued by the Company, dated October 21, 2014.
 



Signature
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.
Date:  October 21, 2014 First Busey Corporation
By:            /s/ Robin N. Elliott
Name:            Robin N. Elliott
Title:            Chief Financial Officer
EX-99.1 2 exhibit99_1.htm EXHIBIT 99.1
 
October 21, 2014
 
First Busey Announces 2014 Third Quarter Earnings
Champaign, IL – (Nasdaq: BUSE)


Message from our President & CEO
 
 
Significant progress from the third quarter of 2013:

·Net income available to common stockholders of $8.9 million, up 27.1%
·Announced expected acquisition of Herget Financial Corp.
·Fully-diluted earnings per common share of $0.10, up 25.0%
·Total average loans of $2.346 billion, up 8.5%
·Dividend per share of $0.05, up 25.0%
·Total non-interest expense of $26.3 million, down 3.9%
·Non-performing loans of $8.7 million, down 53.2% year-over year
·Return on average assets of 1.0%, up from 0.8%

 
First Busey Corporation's net income for the third quarter of 2014 was $9.1 million and net income available to common stockholders was $8.9 million, or $0.10 per fully-diluted common share.  Net income increased from the third quarter of 2013, when the Company reported net income of $7.9 million and net income available to common stockholders of $7.0 million, or $0.08 per fully-diluted common share.  Net income available to common stockholders also grew 12% on a linked-quarter basis.  For the second quarter of 2014, the Company reported net income of $8.2 million and net income available to common stockholders of $8.0 million, or $0.09 per fully-diluted common share.

The Company's year-to-date net income through September 30, 2014 was $25.2 million and net income available to common stockholders was $24.6 million, or $0.28 per fully-diluted common share, compared to net income of $21.8 million and net income available to common stockholders of $19.1 million, or $0.22 per fully-diluted common share, for the comparable period of 2013.

Net interest income of $25.9 million in the third quarter of 2014 increased from $25.0 million in the second quarter of 2014, and $25.2 million recorded in the third quarter of 2013.  Net interest income for the first nine months of 2014 was $75.5 million compared to $75.1 million for the same period of 2013.  Gross loans at September 30, 2014 increased $55.8 million from June 30, 2014, despite a drop in held for sale loans of $8.2 million during the period.  Gross loans increased to $2.380 billion at September 30, 2014 from $2.324 billion at June 30, 2014 and $2.251 billion at September 30, 2013, led by growth in commercial loans.

Robust loan growth during 2013 pushed Small Business Lending Fund qualified credits above certain thresholds required to meaningfully reduce costs of the Company's preferred stock dividend beginning in 2014.  Dividends paid on the preferred stock totaled $0.5 million for the first nine months of 2014 compared to $2.7 million for the comparable period of 2013.  In addition, credit quality and related costs continued to improve.  As net charge-offs and non-performing loans trended significantly lower, the provision for loan loss fell to zero in the third quarter of 2014, a decrease from $1.0 million in the second quarter of 2014 and $2.0 million in the third quarter of 2013.  For the first nine months of 2014, the provision for loan loss was $2.0 million, compared to $6.0 million for the same period of 2013.  With a continued commitment to the quality of assets and the strength of our balance sheet, near-term losses are expected to remain at notable lows.


Overall deposit levels have continued a relatively steady course totaling $2.825 billion at September 30, 2014 compared to $2.862 billion at June 30, 2014 and $2.880 billion at September 30, 2013.  For the three months ended September 30, 2014, average total deposits were $2.867 billion compared to $2.869 billion for the three months ended September 30, 2013, moderating by less than 0.1% or $0.002 billion over the prior year.  Average deposit costs decreased to 17 basis points for the three months ended September 30, 2014 compared to 18 basis points for the three months ended June 30, 2014 and 23 basis points for the three months ended September 30, 2013.  Non-interest bearing deposits of $579.6 million at September 30, 2014 decreased from $605.3 million at June 30, 2014 but rose from $543.7 million at September 30, 2013.  The Company remained strongly core deposit funded at 76.1% of total assets as of September 30, 2014, with solid liquidity and significant market share in the communities it serves.

During the third quarter of 2014, as part of ongoing balance sheet strategy, the Company undertook a modest level of long-term debt due to low interest rates and attractive funding options available in the market.  The Company executed $30.0 million in FHLB overnight discount note indexed advances with an average cost of 8 basis points for the three months ended September 30, 2014.  The variable rate notes range in maturity from seven to ten years with options to prepay at par prior to maturity.
 
Capital Strength:  At the end of the third quarter of 2014, Busey Bank continued to exceed the capital adequacy requirements necessary to be considered "well-capitalized" under regulatory guidance.  Further, First Busey Corporation's Tangible Common Equity (TCE) increased to $332.3 million at September 30, 2014 from $328.7 million at June 30, 2014 and from $314.9 million at September 30, 2013.  TCE represented 9.51% of tangible assets at September 30, 2014 compared to 9.44% at June 30, 2014 and 8.98% at September 30, 2013.1
The Company's strong capital levels have allowed it to provide a steady return to its shareholders through dividends, and also allowed it to raise its quarterly dividend earlier this year.  The Company will pay a cash dividend on October 24, 2014 of $0.05 per common share to stockholders of record as of October 17, 2014, which represents a 25% increase from the quarterly dividend of $0.04 per common share paid in October 2013. First Busey Corporation has consistently paid dividends to its common stockholders since the bank holding company was originally organized in 1980.

Asset Quality:  While much internal focus has been directed toward organic growth, the Company's commitment to credit quality remains strong, as evidenced by another quarter of meaningful progress across a range of credit indicators.  As of September 30, 2014, the Company reported non-performing loans of $8.7 million, which reflected the lowest level in over six years.  Net charge-offs for the third quarter of 2014 also reflected yet another low at $0.4 million for the quarter, compared to $1.0 million for second quarter of 2014 and $2.5 million for the third quarter of 2013.  Net charge-offs for the first nine months of 2014 were $2.6 million, compared to $6.0 million for the same period of 2013.  In addition, the Company recorded a $2.0 million recovery early in the fourth quarter of 2014 that was considered when determining whether to record a third quarter provision expense, along with other standard GAAP measures.  While these improvements are encouraging, many asset quality metrics remain dependent upon market-specific economic conditions, and specific measures may fluctuate from quarter to quarter.

Fee-based Businesses:  Busey Wealth Management's net income of $1.2 million for the third quarter of 2014 seasonally declined from $1.4 million for the second quarter of 2014 but was comparable to the third quarter of 2013.  Busey Wealth Management's net income for the first nine months of 2014 was $3.6 million as compared to $3.1 million for the first nine months of 2013.  Assets under care increased to $5.0 billion as of September 30, 2014 compared to $4.7 billion at September 30, 2013.  FirsTech's net income of $0.3 million for the third quarter of 2014 was comparable to the second quarter of 2014 and increased from the third quarter of 2013 by 24.3%.  FirsTech's year-to-date net income of $1.0 million increased from $0.8 million for the comparable period of 2013, primarily on growth in electronic processing revenues, including online and mobile services.

Revenues from trust, brokerage and commissions and remittance processing activities - which are primarily generated through Busey Wealth Management and FirsTech - represented 54.3% of the Company's non-interest income for the first nine months of 2014, providing a balance to traditional banking activities.  Furthermore, the Company believes the boutique services offered to ultra-high net worth clients by Trevett Capital Partners within its suite of wealth services broadens its business base and enhances its ability to further develop revenue sources.
 
1Tangible Common Equity, a non-GAAP metric, is defined as common equity less tax-effected goodwill and intangibles at the end of the reporting period. Tangible assets, a non-GAAP metric, is defined as total assets less tax-effected goodwill and intangibles at the end of the reporting period.

Trust fees decreased to $4.2 million for the third quarter of 2014 compared to $5.1 million for the second quarter of 2014, but increased from $4.0 million for the third quarter of 2013. The decline from the second quarter of 2014 was due to seasonal farm management and tax preparation fees realized in the second quarter; however, farm income is expected to seasonally increase in the fourth quarter of 2014. Trust fees for the first nine months of 2014 were $14.9 million compared to $14.0 million in the same period of 2013.
 
Operating Performance:  The Company continues to prioritize strengthening its balance sheet, diversifying revenue streams and developing appropriate platforms to sustain profitable organic growth.  An active business outreach across the Company's footprint continues to support ongoing business expansion, while further improvement in operating expenses reflects the important focus on cost control and productivity.  Specific areas of operating performance are detailed as follows:

·Net interest margin increased to 3.19% for the third quarter of 2014 compared to 3.13% for the second quarter of 2014 and held relatively steady from 3.20% for the third quarter of 2013.  The net interest margin for the first nine months of 2014 was also relatively stable at 3.15% compared to 3.16% for the same period of 2013.  Average loan balances for the three months ended September 30, 2014 grew 4.3% compared to the three months ended June 30, 2014 and 8.5% compared to the three months ended September 30, 2013, and also grew 8.7% for the nine month period ended September 30, 2014 compared to the same period in 2013, positively influencing net interest margin, while a highly competitive loan environment and a prolonged period of low interest rates continued to put downward pressure on yields and margins.
·Gain on sales of loans increased to $1.3 million for the third quarter of 2014, an 8.5% increase from the $1.2 million reported for the second quarter of 2014, but decreased from $2.7 million in the third quarter of 2013.  Year-to-date gain on sales of loans through September 30, 2014 was $3.6 million compared to $8.9 million in the same period of 2013 due to lower refinance volume as a result of market-based influences and higher interest rates.  Retail real estate portfolio balances grew by $47.4 million to $575.1 million on September 30, 2014 from $527.7 million on September 30, 2013, excluding held for sale loans.  Total mortgage production is reflected in both the gain on loans sold and the balances of loans retained in the retail real estate portfolio, and the mix of sales versus retention may vary over time.
·Salaries and wages and employee benefits decreased to $14.9 million in the third quarter of 2014 as compared to $15.0 million in the second quarter of 2014 and $15.6 million in the third quarter of 2013.  In the first nine months of 2014, salaries and wages and employee benefits decreased to $45.0 million as compared to $48.1 million for the same period of 2013.  An ongoing commitment to seek sensible opportunities to reduce cost and enhance productivity resulted in personnel reductions and other cost containment efforts that have contributed to positive expense trends.
·Data processing expense in the third quarter of 2014 decreased to $2.6 million compared to $2.7 million in the second quarter of 2014 and is consistent with the third quarter of 2013.  Data processing expense totaled $8.1 million for the first nine months of 2014, compared to $7.8 million for the same period of 2013.  As the Company manages data processing expense, it continues to enhance its mobile and internet banking services and prioritize strategies to mitigate the risk from cybercriminals through the use of new technology, industry best practices and customer education.  A portion of the increase in data processing expense was also related to supporting new sources of revenue growth at FirsTech.

Overview and Strategy:

During the third quarter of 2014, First Busey announced the signing of a definitive agreement to acquire Herget Financial Corp. ("Herget"), headquartered in Pekin, Illinois, with the completion of the transaction subject to customary closing conditions and regulatory approval.  We believe the merger with Herget will allow us to further increase our presence through a proven organization that has a one-hundred year history of providing premier customer service to diverse industry sectors.  By acquiring organizations with a similar philosophy in markets which complement our existing customer base, we intend to expand our franchise through balanced, integrated growth strategies that generate value.  Please reference our Form 8-K, filed on September 26, 2014 for additional information regarding our pending acquisition of Herget.

We are pleased with the sustained earnings momentum and strong performances across a broad spectrum of our businesses.  Net income in each of our operating segments was up by over 14% from the prior year-to-date period.  Comprehensive expense discipline continues to drive improvement in operating costs and efficiency ratios.  Sound asset quality management supported further balance sheet strength, and credit cost reductions benefited our bottom line.

 
For the second consecutive year, First Busey Corporation was named by Forbes as one of America's most trustworthy companies.  Our associates take great pride in the Company being selected by Forbes as one of America's 50 Most Trustworthy Financial Companies2  for 2014.  This ratings process suggests that its 50 Most Trustworthy Financial Companies have consistently demonstrated clear and conservative accounting practices and solid corporate governance, management and board supervision.  Also in August 2014, Busey was recognized with the StormReady accreditation by the National Weather Service, which recognizes organizations that excel in communication, local warning dissemination, community preparedness, and administration in regards to severe weather.

Our emphasis on maximizing stockholder value is evidenced by the continued growth in earnings per share and our increased quarterly dividend earlier this year.  With our strong capital position, a stable core funding base, and a sound credit foundation, we are actively engaged in growing our Company through both organic and external measures.  As we take pride in our past and look confidently towards our future, we thank our associates for their efforts, our customers for their business and you, our shareholders, for your continued support.

/s/ Van A. Dukeman
President & Chief Executive Officer
First Busey Corporation

2 ©2014, Forbes Media LLC.  Used with Permission.



SELECTED FINANCIAL HIGHLIGHTS1
 
(dollars in thousands, except per share data)
 
 
 
   
   
   
   
   
 
 
 
As of and for the
   
As of and for the
 
 
 
Three Months Ended
   
Nine Months Ended
 
 
 
September 30,
   
June 30,
   
December 31,
   
September 30,
   
September 30,
   
September 30,
 
 
 
2014
   
2014
   
2013
   
2013
   
2014
   
2013
 
EARNINGS & PER SHARE DATA
 
   
   
   
   
   
 
Net income
 
$
9,109
   
$
8,185
   
$
6,920
   
$
7,933
   
$
25,181
   
$
21,806
 
Income available to common stockholders2
   
8,927
     
8,004
     
6,012
     
7,024
     
24,636
     
19,081
 
Revenue3
   
40,115
     
40,036
     
39,062
     
40,781
     
119,651
     
123,033
 
Fully-diluted earnings per share
   
0.10
     
0.09
     
0.07
     
0.08
     
0.28
     
0.22
 
Cash dividends paid per share4
   
0.05
     
0.05
     
0.04
     
0.04
     
0.14
     
0.08
 
 
                                               
Net income by operating segment
                                               
   Busey Bank
 
$
8,195
   
$
7,436
   
$
6,173
   
$
6,963
   
$
22,910
   
$
19,243
 
   Busey Wealth Management
   
1,176
     
1,401
     
1,116
     
1,173
     
3,579
     
3,126
 
   FirsTech
   
322
     
326
     
193
     
259
     
957
     
807
 
 
                                               
AVERAGE BALANCES
                                               
Cash and due from banks
 
$
189,836
   
$
239,372
   
$
250,573
   
$
225,180
   
$
237,180
   
$
299,140
 
Investment securities
   
830,504
     
870,818
     
883,120
     
924,633
     
841,208
     
950,095
 
Gross loans
   
2,345,718
     
2,249,786
     
2,221,183
     
2,162,138
     
2,277,343
     
2,094,640
 
Earning assets
   
3,280,380
     
3,270,335
     
3,257,957
     
3,200,783
     
3,265,295
     
3,253,010
 
Total assets
   
3,525,124
     
3,523,428
     
3,529,936
     
3,492,360
     
3,518,818
     
3,531,690
 
Non-interest bearing deposits
   
601,220
     
592,066
     
541,242
     
529,480
     
587,265
     
528,544
 
Interest-bearing deposits
   
2,265,378
     
2,295,196
     
2,332,765
     
2,339,504
     
2,289,414
     
2,374,512
 
Securities sold under agreements to repurchase
   
146,230
     
134,237
     
157,610
     
129,485
     
137,424
     
131,093
 
Interest-bearing liabilities
   
2,472,820
     
2,484,433
     
2,545,375
     
2,523,989
     
2,483,930
     
2,563,667
 
Stockholders' equity-common
   
353,695
     
349,410
     
342,912
     
336,928
     
349,430
     
338,253
 
Tangible stockholders' equity-common5
   
325,177
     
320,186
     
312,169
     
305,401
     
320,192
     
305,950
 
 
                                               
PERFORMANCE RATIOS
                                               
Return on average assets6
   
1.00
%
   
0.91
%
   
0.68
%
   
0.80
%
   
0.94
%
   
0.72
%
Return on average common equity6
   
10.01
%
   
9.19
%
   
6.96
%
   
8.27
%
   
9.43
%
   
7.54
%
Return on average tangible common equity6
   
10.89
%
   
10.03
%
   
7.64
%
   
9.12
%
   
10.29
%
   
8.34
%
Net interest margin6, 7
   
3.19
%
   
3.13
%
   
3.12
%
   
3.20
%
   
3.15
%
   
3.16
%
Efficiency ratio8
   
63.01
%
   
64.35
%
   
67.61
%
   
64.23
%
   
64.00
%
   
66.00
%
Non-interest revenue as a % of revenues3
   
35.41
%
   
37.50
%
   
35.99
%
   
38.13
%
   
36.91
%
   
38.99
%
 
                                               
1  Results are unaudited
                                               
2 Net income available to common stockholders, net of preferred dividend
 
3 Revenues consist of interest income plus non-interest income, net of interest expense and security gains/losses
 
4 The Company accelerated payment of its first quarter 2013 dividend of $0.04 to December 2012 to provide stockholders with certainty as to the tax treatment of such dividend
 
5 Tangible stockholders' equity-common, a non-GAAP metric, is defined as average common equity less average goodwill and intangibles
 
6 Annualized and calculated on net income available to common stockholders
 
7 On a tax-equivalent basis, assuming a federal income tax rate of 35%
 
8 Net of security gains and losses and intangible charges
 



Condensed Consolidated Balance Sheets1
 
As of
 
(in thousands, except per share data)
 
September 30,
   
June 30,
   
December 31,
   
September 30,
 
 
 
2014
   
2014
   
2013
   
2013
 
Assets
 
   
   
   
 
Cash and due from banks
 
$
179,724
   
$
182,032
   
$
231,603
   
$
198,668
 
Investment securities
   
805,449
     
841,962
     
842,144
     
908,260
 
 
                               
Commercial loans
   
1,782,126
     
1,737,751
     
1,751,740
     
1,695,583
 
Held for sale loans
   
12,090
     
20,286
     
13,840
     
17,500
 
Other loans
   
585,699
     
566,031
     
529,720
     
537,522
 
Gross loans
 
$
2,379,915
   
$
2,324,068
   
$
2,295,300
   
$
2,250,605
 
 
                               
Allowance for loan loss
   
(47,014
)
   
(47,428
)
   
(47,567
)
   
(47,964
)
Premises and equipment
   
64,369
     
64,562
     
65,827
     
67,148
 
Goodwill and other intangibles
   
28,076
     
28,778
     
30,257
     
31,040
 
Other assets
   
110,398
     
113,475
     
122,011
     
124,267
 
Total assets
 
$
3,520,917
   
$
3,507,449
   
$
3,539,575
   
$
3,532,024
 
 
                               
Liabilities & Stockholders' Equity
                               
Non-interest-bearing deposits
 
$
579,550
   
$
605,346
   
$
547,531
   
$
543,746
 
Interest checking, savings, and money market deposits
   
1,729,164
     
1,718,057
     
1,739,236
     
1,727,851
 
Time deposits
   
516,680
     
538,125
     
582,371
     
608,255
 
Total deposits
 
$
2,825,394
   
$
2,861,528
   
$
2,869,138
   
$
2,879,852
 
 
                               
Securities sold under agreements to repurchase
   
157,282
     
140,563
     
172,348
     
156,510
 
Long-term debt
   
30,000
     
-
     
-
     
-
 
Junior subordinated debt owed to unconsolidated trusts
   
55,000
     
55,000
     
55,000
     
55,000
 
Other liabilities
   
23,213
     
23,591
     
27,725
     
26,283
 
Total liabilities
 
$
3,090,889
   
$
3,080,682
   
$
3,124,211
   
$
3,117,645
 
Total stockholders' equity
 
$
430,028
   
$
426,767
   
$
415,364
   
$
414,379
 
Total liabilities & stockholders' equity
 
$
3,520,917
   
$
3,507,449
   
$
3,539,575
   
$
3,532,024
 
 
                               
Share Data
                               
Book value per common share
 
$
4.11
   
$
4.08
   
$
3.95
   
$
3.94
 
Tangible book value per common share2
 
$
3.79
   
$
3.75
   
$
3.60
   
$
3.58
 
Ending number of common shares outstanding
   
86,845
     
86,831
     
86,804
     
86,764
 
         
 
 
Asset Quality1
 
As of and for the Three Months Ended
 
(dollars in thousands)
 
September 30,
   
June 30,
   
December 31,
   
September 30,
 
 
   
2014
     
2014
     
2013
     
2013
 
 
                               
Gross loans
 
$
2,379,915
   
$
2,324,068
   
$
2,295,300
   
$
2,250,605
 
Non-performing loans
                               
     Non-accrual loans
   
8,681
     
11,232
     
17,164
     
18,489
 
     Loans 90+ days past due
   
65
     
235
     
195
     
199
 
Non-performing loans, segregated by geography
                               
     Illinois/ Indiana
   
5,285
     
8,273
     
13,565
     
14,451
 
     Florida
   
3,461
     
3,194
     
3,794
     
4,237
 
Loans 30-89 days past due
   
6,350
     
1,766
     
6,114
     
2,283
 
Other non-performing assets
   
216
     
1,622
     
2,133
     
2,156
 
Non-performing assets to total loans and non-performing assets
   
0.38
%
   
0.56
%
   
0.85
%
   
0.93
%
Allowance as a percentage of non-performing loans
   
537.55
%
   
413.60
%
   
274.02
%
   
256.66
%
Allowance for loan losses to loans
   
1.98
%
   
2.04
%
   
2.07
%
   
2.13
%
Net charge-offs
   
414
     
998
     
1,897
     
2,527
 
Provision expense
   
-
     
1,000
     
1,500
     
2,000
 
 
                               
1 Results are unaudited except for amounts reported as of December 31, 2013
         
2 Total common equity less goodwill and intangibles divided by shares outstanding as of period end
 

 


 
Condensed Consolidated Statements of Operations
   
   
   
 
(Unaudited, in thousands, except per share data)
   
 
 
 
For the
   
For the
 
 
 
Three Months Ended September 30,
   
Nine Months Ended September 30,
 
 
 
2014
   
2013
   
2014
   
2013
 
 
 
   
   
   
 
Interest and fees on loans
 
$
23,553
   
$
23,096
   
$
68,523
   
$
69,257
 
Interest on investment securities
   
3,958
     
4,140
     
11,895
     
12,554
 
Total interest income
 
$
27,511
   
$
27,236
   
$
80,418
   
$
81,811
 
 
                               
Interest on deposits
   
1,260
     
1,656
     
3,928
     
5,577
 
Interest on short-term borrowings
   
41
     
44
     
115
     
143
 
Interest on long-term debt
   
1
     
-
     
1
     
125
 
Junior subordinated debt owed to unconsolidated trusts
   
298
     
303
     
885
     
905
 
Total interest expense
 
$
1,600
   
$
2,003
   
$
4,929
   
$
6,750
 
 
                               
Net interest income
 
$
25,911
   
$
25,233
   
$
75,489
   
$
75,061
 
Provision for loan losses
   
-
     
2,000
     
2,000
     
6,000
 
Net interest income after provision for loan losses
 
$
25,911
   
$
23,233
   
$
73,489
   
$
69,061
 
 
                               
Trust fees
   
4,182
     
4,035
     
14,879
     
13,956
 
Commissions and brokers' fees
   
676
     
710
     
2,023
     
1,819
 
Fees for customer services
   
4,750
     
4,612
     
13,662
     
13,328
 
Remittance processing
   
2,394
     
2,105
     
7,120
     
6,288
 
Gain on sales of loans
   
1,339
     
2,684
     
3,554
     
8,944
 
Net security gains
   
-
     
82
     
40
     
82
 
Other
   
863
     
1,402
     
2,924
     
3,637
 
Total non-interest income
 
$
14,204
   
$
15,630
   
$
44,202
   
$
48,054
 
 
                               
Salaries and wages
   
12,591
     
13,001
     
37,418
     
39,342
 
Employee benefits
   
2,263
     
2,580
     
7,542
     
8,754
 
Net occupancy expense
   
2,086
     
2,055
     
6,384
     
6,340
 
Furniture and equipment expense
   
1,250
     
1,211
     
3,607
     
3,687
 
Data processing expense
   
2,600
     
2,606
     
8,099
     
7,813
 
Amortization expense
   
702
     
783
     
2,182
     
2,349
 
Regulatory expense
   
503
     
545
     
1,559
     
1,808
 
OREO expense
   
16
     
(207
)
   
87
     
394
 
Other operating expenses
   
4,287
     
4,784
     
12,861
     
14,239
 
Total non-interest expense
 
$
26,298
   
$
27,358
   
$
79,739
   
$
84,726
 
 
                               
Income before income taxes
 
$
13,817
   
$
11,505
   
$
37,952
   
$
32,389
 
Income taxes
   
4,708
     
3,572
     
12,771
     
10,583
 
Net income
 
$
9,109
   
$
7,933
   
$
25,181
   
$
21,806
 
Preferred stock dividends
 
$
182
   
$
909
   
$
545
   
$
2,725
 
Income available for common stockholders
 
$
8,927
   
$
7,024
   
$
24,636
   
$
19,081
 
 
                               
Per Share Data
                               
Basic earnings per common share
 
$
0.10
   
$
0.08
   
$
0.28
   
$
0.22
 
Fully-diluted earnings per common share
 
$
0.10
   
$
0.08
   
$
0.28
   
$
0.22
 
Diluted average common shares outstanding
   
87,339
     
87,076
     
87,262
     
87,044
 


Corporate Profile

First Busey Corporation (Nasdaq: BUSE) is a $3.5 billion financial holding company headquartered in Champaign, Illinois. Busey Bank, First Busey Corporation's wholly-owned bank subsidiary, is also headquartered in Champaign, Illinois and has twenty-eight banking centers serving Illinois, a banking center in Indianapolis, Indiana, and seven banking centers serving southwest Florida.  Trevett Capital Partners, a wealth management division of Busey Bank, provides asset management, investment and fiduciary services to high net worth clients in southwest Florida.  The wealth management professionals of Trevett Capital Partners can be reached through trevettcapitalpartners.com.  Busey Bank had total assets of $3.5 billion as of September 30, 2014.

In addition, First Busey Corporation owns a retail payment processing subsidiary, FirsTech, Inc., through Busey Bank, which processes over 22 million transactions per year using online bill payment, lockbox processing and walk-in payments at its 3,000 agent locations in 36 states.  More information about FirsTech, Inc. can be found at firstechinc.com.

Busey Wealth Management is a wholly-owned subsidiary of First Busey Corporation.  Through Busey Trust Company, Busey Wealth Management provides asset management, investment and fiduciary services to individuals, businesses and foundations.  As of September 30, 2014, Busey Wealth Management's assets under care were approximately $5.0 billion.

Busey Bank and Busey Wealth Management deliver financial services through busey.com.

Contact:
Robin N. Elliott, CFO
217-365-4120


Special Note Concerning Forward-Looking Statements
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company.  Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions.  Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements.  These factors include, among others, the following: (i) the strength of the local and national economy; (ii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the extensive regulations to be promulgated thereunder, as well as the rules adopted by the federal bank regulatory agencies to implement Basel III); (iii) changes in interest rates and prepayment rates of the Company's assets; (iv) increased competition in the financial services sector and the inability to attract new customers; (v) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vi) the loss of key executives or employees; (vii) changes in consumer spending; (viii) unexpected results of acquisitions; (ix) unexpected outcomes of existing or new litigation involving the Company; (x) the economic impact of any future terrorist threats or attacks; (xi) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, and blizzards; and (xii) changes in accounting policies and practices.  These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission.


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