Exhibit 99.1
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
The following unaudited pro forma condensed consolidated financial information is based on the historical financial statements of First Busey Corporation (“First Busey”) and Main Street Trust, Inc. (“Main Street”) and has been prepared to illustrate the effects of the merger of Main Street with and into First Busey, as described in the pro forma financial statements, under the purchase method of accounting and the adjustments as described in the accompanying notes to the unaudited pro forma combined condensed consolidated financial statements.
The unaudited pro forma consolidated balance sheet reflects the historical position of First Busey and Main Street at March 31, 2007 with pro forma adjustments based on the assumption that the merger was consummated on that date. The unaudited pro forma consolidated statement of income for March 31, 2007 assumes that the merger was completed on January 1, 2007; the unaudited pro forma consolidated statement of income for December 31, 2006 assumes that the merger was completed on January 1, 2006. Although the pro forma statements assume merger dates earlier than actual, wherever possible, amounts reflective of actual merger date events are utilized within these pro forma statements.
The unaudited pro forma financial statements are not necessarily indicative of either the results of operations or financial condition that would have been achieved had the merger in fact occurred on the dates indicated, nor do they purport to be indicative of results of operations or financial condition that may be achieved in the future by the combined company. The unaudited pro forma earnings amounts do not reflect any potential earnings enhancements or cost reductions that may result from the consolidation of First Busey’s and Main Street’s operations and are not necessarily indicative of the results expected of the future combined operations. We cannot give any assurances with respect to the ultimate level of earnings enhancements or cost reductions to be realized. Further, consistent with applicable accounting guidelines, all purchase accounting adjustments are subject to revision for a period of up to one-year from the date of the merger as additional information becomes available that would affect our original purchase price allocations.
The unaudited pro forma financial statements and related footnotes should be read in conjunction with, and are qualified in their entirety by, the consolidated financial statements and accompanying notes of each of First Busey’s Annual Report on Form 10-K for the year ended December 31, 2006 and Main Street’s Annual Report on Form 10-K for the year ended December 31, 2006.
| FIRST BUSEY CORPORATION UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET As of March 31, 2007 |
| (dollars in thousands, except per share data) |
| Historical | Pro Forma Before Entries | Purchase Accounting Adjustments | Pro Forma After Entries | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| First Busey | Main Street Trust | Debit | Credit | ||||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and cash equivalents | $ | 106,678 | $ | 48,830 | $ | 155,508 | 5,506 | c | $ | 150,002 | |||||||||
| Investment securities | 328,004 | 396,442 | 724,446 | 1,000 | a | 1,961 | d | 723,485 | |||||||||||
| Loans | 1,952,664 | 1,010,774 | 2,963,438 | 4,090 | d | 2,959,348 | |||||||||||||
| Allowance for loan losses | (23,658 | ) | (13,731 | ) | (37,389 | ) | (37,389 | ) | |||||||||||
| Net loans | 1,929,006 | 997,043 | 2,926,049 | 2,921,959 | |||||||||||||||
| Premises and equipment | 40,452 | 23,655 | 64,107 | 1,000 | d | 1,325 | c | 63,782 | |||||||||||
| Goodwill | 54,386 | 20,736 | 75,122 | 164,487 | b | 20,736 | a | 218,873 | |||||||||||
| Core deposit intangible | 3,491 | 3,481 | 6,972 | 20,700 | d | 3,481 | a | 24,191 | |||||||||||
| Other assets (includes deferred taxes) | 48,495 | 38,852 | 87,347 | 12,557 | d | 12,110 | c,d | 87,794 | |||||||||||
| Total assets | $ | 2,510,512 | $ | 1,529,039 | $ | 4,039,551 | $ | 4,190,086 | |||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing | $ | 246,124 | $ | 215,226 | 461,350 | $ | 461,350 | ||||||||||||
| Interest-bearing | 1,796,253 | 1,027,549 | 2,823,802 | 40 | d | 2,823,762 | |||||||||||||
| Total deposits | 2,042,377 | 1,242,775 | 3,285,152 | 3,285,112 | |||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 55,855 | 95,056 | 150,911 | 150,911 | |||||||||||||||
| Short-term borrowings | 1,000 | — | 1,000 | 1,000 | |||||||||||||||
| Long-term debt | 148,650 | 18,023 | 166,673 | 166,673 | |||||||||||||||
| Junior subordinated debt owed to unconsolidated trusts | 55,000 | — | 55,000 | 55,000 | |||||||||||||||
| Other liabilities | 20,022 | 19,678 | 39,700 | 39,700 | |||||||||||||||
| Total liabilities | 2,322,904 | 1,375,532 | 3,698,436 | 3,698,396 | |||||||||||||||
| Stockholders’ equity | |||||||||||||||||||
| Preferred stock | — | — | — | — | |||||||||||||||
| Common stock | 22 | 112 | 134 | 112 | a | 15 | b | 37 | |||||||||||
| Surplus | 46,784 | 56,294 | 103,078 | 56,674 | a,c | 305,660 | a,b,d | 352,064 | |||||||||||
| Retained earnings | 147,757 | 131,693 | 279,450 | 133,705 | a | 1,380 | b | 147,125 | |||||||||||
| Accumulated other comprehensive income | 4,781 | (842 | ) | 3,939 | 581 | d | 842 | a | 4,200 | ||||||||||
| Total stockholders’ equipty before treasury stock, unearned ESOP shares and deferred compensation for stock grants | 199,344 | 187,257 | 386,601 | 503,426 | |||||||||||||||
| Treasury stock | (11,736 | ) | (33,750 | ) | (45,486 | ) | 33,750 | a | (11,736 | ) | |||||||||
| Unearned ESOP shares and deferred compensation for stock grants | — | — | — | — | |||||||||||||||
| Total stockholders’ equity | 187,608 | 153,507 | 341,115 | 491,690 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 2,510,512 | $ | 1,529,039 | $ | 4,039,551 | $ | 4,190,086 | |||||||||||
| Number of common shares outstanding | 21,462,366 | �� | 10,022,369 | 31,484,735 | 10,022,369 | 15,433,751 | 36,896,117 | ||||||||||||
| Total book value per common share | $ | 8.74 | $ | 15.32 | $ | 10.83 | $ | 13.33 | |||||||||||
| Tangible book value per common share | $ | 6.04 | $ | 12.90 | $ | 8.23 | $ | 6.74 | |||||||||||
| See Notes to Unaudited Pro Forma Condensed Combined Financial Statements |
| a - To eliminate equity, investment mark-to-market and intangible accounts of Main Street Trust, Inc. |
| b - To record issuance of common stock in conjunction with the merger of First Busey Corporation and Main Street Trust, Inc. Each Main Street Trust Share is to be exchanged for 1.55 shares of First Busey Corporation per the merger agreement. |
| c - To record certain expenses associated with the merger to be undertaken prior to the merger. |
| d - To record the fair value of investments, loans, intangibles and deposits in conjunction with the merger. |
|
| FIRST BUSEY CORPORATION UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME for the Quarter Ended March 31, 2007 |
| (dollars in thousands, except per share amounts) |
| Historical | Pro Forma Before Entries | Mark-to-market Transaction Adjustments | Pro Forma After Entries | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| First Busey | Main Street Trust | Debit | Credit | |||||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans | $ | 132,861 | $ | 18,004 | $ | 150,865 | 676 | a | $ | 151,541 | ||||||||||
| Securities | 13,156 | 4,603 | 17,759 | 17,759 | ||||||||||||||||
| Federal funds sold and other | 349 | 248 | 597 | 597 | ||||||||||||||||
| Total interest income | 146,366 | 22,855 | 169,221 | 169,897 | ||||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | 55,046 | 9,262 | 64,308 | 101 | a | 64,409 | ||||||||||||||
| Federal funds purchased and repurchase agreements and short-term borrowings | 3,011 | 1,293 | 4,304 | 69 | b | 4,373 | ||||||||||||||
| Long-term debt | 7,734 | 287 | 8,021 | 8,021 | ||||||||||||||||
| Junior subordinated debt owed to unconsolidated Trusts | 4,060 | — | 4,060 | 4,060 | ||||||||||||||||
| Total interest expense | 69,851 | 10,842 | 80,693 | 80,863 | ||||||||||||||||
| Net interest income before provision for loan losses | 76,515 | 12,013 | 88,528 | 89,034 | ||||||||||||||||
| Provision for loan losses | 1,300 | 600 | 1,900 | 1,900 | ||||||||||||||||
| Net interest income after provision for loan losses | 75,215 | 11,413 | 86,628 | 87,134 | ||||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges | 11,088 | 564 | 11,652 | 11,652 | ||||||||||||||||
| Trust and brokerage fees | 8,673 | 2,158 | 10,831 | 10,831 | ||||||||||||||||
| Remittance processing | — | 2,279 | 2,279 | 2,279 | ||||||||||||||||
| Security gains, net | 3,547 | (231 | ) | 3,316 | 3,316 | |||||||||||||||
| Gain on sales of loans | 2,443 | 102 | 2,545 | 2,545 | ||||||||||||||||
| Other operating income | 2,710 | 771 | 3,481 | 3,481 | ||||||||||||||||
| Total noninterest income | 28,461 | 5,643 | 34,104 | 34,104 | ||||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and benefits | 34,611 | 5,995 | 40,606 | 40,606 | ||||||||||||||||
| Net occupancy expense of premises | 5,121 | 794 | 5,915 | 5,915 | ||||||||||||||||
| Furniture and equipment expenses | 3,438 | 681 | 4,119 | 4,119 | ||||||||||||||||
| Data processing | 1,753 | 909 | 2,662 | 2,662 | ||||||||||||||||
| Stationery, supplies and printing | 1,341 | 301 | 1,642 | 1,642 | ||||||||||||||||
| Amortization of intangible assets | 1,376 | 217 | 1,593 | 983 | c | 2,576 | ||||||||||||||
| Other operating expenses | 12,447 | 1,445 | 13,892 | 13,892 | ||||||||||||||||
| Total other expenses | 60,087 | 10,342 | 70,429 | 71,412 | ||||||||||||||||
| Income before taxes | 43,589 | 6,714 | 50,303 | 49,826 | ||||||||||||||||
| Income taxes | 14,701 | 1,940 | 16,641 | 190 | d | 16,451 | ||||||||||||||
| Net income | $ | 28,888 | $ | 4,774 | $ | 33,662 | 1,153 | 865 | $ | 33,374 | ||||||||||
| Net income for common stockholders | $ | 28,888 | $ | 4,774 | $ | 33,374 | ||||||||||||||
| Basic earnings per common share | $ | 1.35 | $ | 0.48 | $ | 0.86 | ||||||||||||||
| Diluted earnings per common share | $ | 1.35 | $ | 0.47 | $ | 0.85 | ||||||||||||||
| Basic weighted average common shares outstanding | 21,349,416 | 10,029,580 | 36,896,117 | |||||||||||||||||
| Diluted weighted average common shares outstanding | 21,406,070 | 10,191,282 | 37,096,117 | |||||||||||||||||
| See Notes to Unaudited Pro Forma Condensed Combined Financial Statements |
| a - To record interest accretion for fair market value adjustment to loans and deposits. See Note 3 for schedule. |
| b - To record interest expense at 5% for use of $5.5 million in balance sheet assumptions. |
| c - To record amortization for identifiable intangibles recorded. See Note 3 for schedule. |
| d - To record income tax benefit at 39.75% marginal rate |
|
| FIRST BUSEY CORPORATION UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME for the Quarter Ended December 31, 2006 |
| (dollars in thousands, except per share amounts) |
| Historical | Pro Forma Before Entries | Mark-to-market Transaction Adjustments | Pro Forma After Entries | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| First Busey | Main Street Trust | Debit | Credit | |||||||||||||||||
| Interest income | ||||||||||||||||||||
| Loans | $ | 132,861 | $ | 70,507 | $ | 203,368 | 2,703 | a | $ | 206,071 | ||||||||||
| Securities | 13,156 | 18,925 | 32,081 | 32,081 | ||||||||||||||||
| Federal funds sold and other | 349 | 1,327 | 1.676 | 1,676 | ||||||||||||||||
| Total interest income | 146,366 | 90,759 | 237,125 | 239,828 | ||||||||||||||||
| Interest expense | ||||||||||||||||||||
| Deposits | 55,046 | 33,555 | 88,601 | 40 | a | 88,641 | ||||||||||||||
| Federal funds purchased and repurchase agreements and short-term borrowings | 3,011 | 5,531 | 8,542 | 275 | b | 8,817 | ||||||||||||||
| Long-term debt | 7,734 | 2,126 | 9,860 | 9,860 | ||||||||||||||||
| Junior subordinated debt owed to unconsolidated Trusts | 4,060 | — | 4,060 | 4,060 | ||||||||||||||||
| Total interest expense | 69,851 | 41,212 | 111,063 | 111,378 | ||||||||||||||||
| Net interest income before provision for loan losses | 76,515 | 49,547 | 126,062 | 128,450 | ||||||||||||||||
| Provision for loan losses | 1,300 | 1,800 | 3,100 | 3,100 | ||||||||||||||||
| Net interest income after provision for loan losses | 75,215 | 47,747 | 122,962 | 125,350 | ||||||||||||||||
| Noninterest income | ||||||||||||||||||||
| Service charges | 11,088 | 2,719 | 13,807 | 13,807 | ||||||||||||||||
| Trust and brokerage fees | 8,673 | 8,235 | 16,908 | 16,908 | ||||||||||||||||
| Remittance processing | — | 7,306 | 7,306 | 7,306 | ||||||||||||||||
| Security gains, net | 3,547 | 456 | 4,003 | 4,003 | ||||||||||||||||
| Gain on sales of loans | 2,443 | 596 | 3,039 | 3,039 | ||||||||||||||||
| Other operating income | 2,710 | 3,271 | 5,981 | 5,981 | ||||||||||||||||
| Total noninterest income | 28,461 | 22,583 | 51,044 | 51,044 | ||||||||||||||||
| Noninterest expense | ||||||||||||||||||||
| Salaries and benefits | 34,611 | 23,572 | 58,183 | 58,183 | ||||||||||||||||
| Net occupancy expense of premises | 5,121 | 3,049 | 8,170 | 8,170 | ||||||||||||||||
| Furniture and equipment expenses | 3,438 | 2,513 | 5,951 | 5,951 | ||||||||||||||||
| Data processing | 1,753 | 3,170 | 4,923 | 4,923 | ||||||||||||||||
| Stationery, supplies and printing | 1,341 | 1,248 | 2,589 | 2,589 | ||||||||||||||||
| Amortization of intangible assets | 1,376 | 870 | 2,246 | 3,903 | c | 6,149 | ||||||||||||||
| Other operating expenses | 12,447 | 6,526 | 18,973 | 18,973 | ||||||||||||||||
| Total other expenses | 60,087 | 40,948 | 101,035 | 104,938 | ||||||||||||||||
| Income before taxes | 43,589 | 29,382 | 72,971 | 71,456 | ||||||||||||||||
| Income taxes | 14,701 | 10,145 | 24,846 | 615 | d | 24,231 | ||||||||||||||
| Net income | $ | 28,888 | $ | 19,237 | $ | 48,125 | 4,218 | 3,318 | $ | 47,225 | ||||||||||
| Net income for common stockholders | $ | 28,888 | $ | 19,237 | $ | 47,225 | ||||||||||||||
| Basic earnings per common share | $ | 1.35 | $ | 1.91 | $ | 1.25 | ||||||||||||||
| Diluted earnings per common share | $ | 1.35 | $ | 1.88 | $ | 1.24 | ||||||||||||||
| Basic weighted average common shares outstanding | 21,349,416 | 10,094,433 | 36,896,117 | |||||||||||||||||
| Diluted weighted average common shares outstanding | 21,406,070 | 10,222,543 | 37,096,117 | |||||||||||||||||
| See Notes to Unaudited Pro Forma Condensed Combined Financial Statements |
| a - To record interest accretion for fair market value adjustment to loans and deposits. See Note 3 for schedule. |
| b - To record interest expense at 5% for use of $5.5 million in balance sheet assumptions. |
| c - To record amortization for identifiable intangibles recorded. See Note 3 for schedule. |
| d - To record income tax benefit at 39.75% marginal rate |
|
| First Busey Corporation Unaudited Pro Forma Condensed Combined Financial Statements Note 1 - Purchase Price Calculation |
| Main Street shares outstanding | 10,022,369 | |||
| less shares held by First Busey | (65,110 | ) | ||
| Pro forma Main Street shares outstanding | 9,957,259 | |||
| Fixed exchange ratio per merger agreement | 1.55 | |||
| Total First Busey common shares to be issed | 15,433,751 | |||
| Fair value of First Busey stock | $ | 19.43 | ||
| Fair value of stock consideration | $ | 299,878 | ||
| Fair market value Main Street shares owned by First Busey | $ | 1,961 | ||
| Main Street stock options outstanding | 845,289 | |||
| Fixed exchange ratio per merger agreement | 1.55 | |||
| First Busey options to be granted | 1,310,198 | |||
| Estimtaed per share fair value of First Busey stock optons to be granted | $ | 3.84 | ||
| Fair value of stock option consideration | $ | 5,031 | ||
| Total Stock and Stock Option Consideration | $ | 306,870 | ||
| Par value of common stock to be issued | $ | 15 | ||
| Addition to surplus on common stock to be issued | 299,863 | |||
| Addition to surplus on fair value of stock options to be issued | 5,031 | |||
| Fair value of Main Street shares owned by First Busey (including previously unrealized gain of $1,480) | 1,961 | |||
| $ | 306,870 | |||
|
| First Busey Corporation Unaudited Pro Forma Condensed Combined Financial Statements Note 2 - Purchase Price Allocation |
| Total stock and stock option consideration | $ | 306,870 | |
| First Busey’s capitalized merger expenses | 2,150 | ||
| Total consideration | $ | 309,020 | |
| Main Street Equity prior to Transaction | 153,507 | ||
| Merger expenses | (3,939 | ) | |
| Acceleration of stock option vesting | 380 | ||
| Pre-existing goodwill | (20,736 | ) | |
| Pre-existing core deposit intangible | (3,481 | ) | |
| Adjusted Equity @ closing | 125,731 | ||
| Purchase price to be allocated | 183,289 | ||
| HTM Investment fair market value adjustment | 1,000 | ||
| Loans fair market value adjustment | (4,090 | ) | |
| Premises and equipment fair market value adj. | 1,000 | ||
| MSA fair market value adjustment | 500 | ||
| Time deposit fair market value adjustment | 40 | ||
| Core deposit intangible | 20,700 | ||
| Trust Customer List | 7,519 | ||
| First Tech Customer List | 4,538 | ||
| less Deferred Tax Asset/Liability on above | (12,405 | ) | |
| Purchase Accounting Adjustments | 18,802 | ||
| Goodwill | $ | 164,487 | |
|
| First Busey Corporation Unaudited Pro Forma Condensed Combined Financial Statements Note 3 - Amortization Tables |
| Schedule of amortization of identifiable intangibles |
| CDI | FirsTech | WM | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2007 | 1,035 | 227 | 377 | ||||||||
| 2008 | 2,452 | 538 | 891 | ||||||||
| 2009 | 2,374 | 520 | 862 | ||||||||
| 2010 | 2,297 | 503 | 834 | ||||||||
| 2011 | 2,219 | 487 | 805 | ||||||||
| 2012 | 2,088 | 458 | 758 | ||||||||
| 2013 | 1,935 | 424 | 702 | ||||||||
| 2014 | 1,857 | 407 | 673 | ||||||||
| 2015 | 1,779 | 390 | 646 | ||||||||
| 2016 | 1,702 | 373 | 617 | ||||||||
| 2017 | 962 | 212 | 354 | ||||||||
| 20,700 | 4,538 | 7,519 | |||||||||
| Schedule of amortization of fair value adjustments to loans and deposits |
| Loans | Deposits | |||||||
|---|---|---|---|---|---|---|---|---|
| 2007 | 1,126 | 168 | ||||||
| 2008 | 2,426 | (128 | ) | |||||
| 2009 | 429 | |||||||
| 2010 | 109 | |||||||
| 4,090 | 40 | |||||||
|