CONTACT: BARBARA J. KUHL 201 W. Main Street [FIRST BUSEY CORPORATION LOGO]
President Urbana, IL 61801
Phone: 217-365-4513
Fax: 217-365-4592
REVISED PRESS RELEASE
FIRST BUSEY CORPORATION ANNOUNCES EARNINGS
July 17, 2002
Chairman of the Board and Chief Executive Officer, Douglas C. Mills, announced
today that First Busey Corporation's earnings for the second quarter of 2002
were $4.3 million, a 6.5% increase over earnings of $4.0 million in the second
quarter of 2001. Diluted earnings per share increased 6.7% to $.32 as compared
to $.30 in 2001. Cash basis diluted earnings per share reached $.32 for the
second quarter of 2002 as compared to $.31 for the quarter ending June 30, 2001.
First Busey Corporation common stock (Nasdaq:BUSE) ended the quarter at $22.45,
an increase of 4.9% over the closing price on March 31, 2002 of $21.40.
Total assets as of June 30, 2002 were $1.4 billion with total loans reaching
$1.0 billion. Net income for the first six months of 2002 reached $9.0 million
as compared to $8.1 million for the first six months of 2001. This represents an
increase of 10.5%. Diluted earnings per share for the six months ended June 30,
2002 were $.66, a 10.0% increase over the $.60 diluted earnings per share for
the six months ended June 30, 2001. Return on average assets was 1.4% and return
on average equity was 16.8% for the six months ending June 30, 2002.
During the second quarter of 2002, Busey Bank had net charge-offs of $986,000.
This primarily represented two credits, one in the Indianapolis market and one
in the Bloomington, Illinois market. The remaining indebtedness of the
Bloomington credit was moved to Other Real Estate Owned in the amount of $4.0
million. First Busey Corporation also recognized a loss of $393,000 in a venture
capital investment. At the quarter-end, the Allowance for Loan Losses as a
percent of total loans was 1.37%.
Chairman Mills indicated that, "First Busey Corporation has experienced
excellent earnings growth during the first six months of 2002 in spite of the
uncertainty in the economy. Though our Midwest bank is located in fairly stable
communities, we are not immune to the current economic situation. Although
Management currently believes the three significant charge offs taken in this
quarter are isolated cases, we are realistic of the impact the current economic
environment has placed on our customers."
First Busey Corporation is a financial holding company headquartered in Urbana,
Illinois. First Busey Corporation has two wholly-owned banking subsidiaries with
locations in three states. Busey Bank is headquartered in Urbana, Illinois and
has eighteen banking centers serving Champaign, McLean and Ford Counties in
Illinois. Busey Bank also has a banking center in Indianapolis and a loan
production office in Ft. Myers, Florida. Total assets of Busey Bank were $1.3
billion as of June 30, 2002. Busey Bank Florida is a federal thrift charter
headquartered in Ft. Myers, Florida. Busey Bank Florida ended the second quarter
of 2002 with total assets of $56.1 million. Busey also provided electronic
delivery of financial services through Busey e-bank, www.busey.com.
Busey Investment Group is a wholly owned subsidiary of First Busey Corporation
and owns three subsidiaries. First Busey Trust & Investment Co., specializes in
asset management and trust services with approximately $1 billion in assets
under care. First Busey Securities, Inc., is a full service broker/dealer
subsidiary, which has in excess of $525 million in assets under care and is a
member of NASD/SIPC. Busey Insurance Services, Inc. provides personal insurance
products and specializes in long-term healthcare insurance.
FIRST BUSEY CORPORATION
Financial Highlights (Unaudited)
(Dollars in Thousands except Per Share Data)
Quarter Ended June 30, Six Months Ended June 30,
--------------------------------------------------------------
2002 2001 2002 2001
Income Statement
Net interest income $ 11,118 $ 10,864 $ 22,259 $ 21,632
Provision for loan losses 915 495 1,480 895
Securities gains (losses) 199 221 473 872
Noninterest income 5,387 5,491 10,577 10,232
Noninterest expense 9,400 9,802 18,395 19,130
Income taxes 2,102 2,252 4,457 4,586
Net income 4,287 4,027 8,977 8,125
END OF PERIOD BALANCES
Loans, net of unearned income $ 1,009,151 $ 969,784
Deposits 1,135,812 1,134,815
Stockholders' equity 110,771 98,599
Total earning assets 1,255,400 1,243,928
Total assets 1,356,565 1,334,547
AVERAGE BALANCES
Loans, net of unearned income $ 989,895 $ 978,028 $ 987,258 $ 976,506
Deposits 1,085,713 1,116,825 1,085,847 1,121,518
Stockholders' equity 108,706 96,634 107,615 95,262
Total earning assets 1,216,179 1,237,856 1,208,862 1,244,626
Total assets 1,304,083 1,314,140 1,295,457 1,322,575
PER SHARE DATA
Basic earnings per share $ 0.32 $ 0.30 $ 0.66 $ 0.60
Diluted earnings per share $ 0.32 $ 0.30 $ 0.66 $ 0.60
Dividends declared $ 0.15 $ 0.13 $ 0.30 $ 0.26
Book value per share $ 8.11 $ 7.28 $ 8.11 $ 7.28
Tangible book value per share $ 7.36 $ 6.43 $ 7.36 $ 6.43
Average number of shares outstanding 13,642,719 13,551,942 13,649,604 13,597,040
Ending number of shares outstanding 13,650,920 13,546,813 13,650,920 13,546,813
PROFITABILITY RATIOS
Return on average assets 1.32% 1.23% 1.40% 1.24%
Return on average equity 15.82% 16.71% 16.82% 17.20%
Net interest margin (tax equivalent) 3.77% 3.63% 3.82% 3.67%
LOAN PERFORMANCE
Net credit losses $ 986 $ 75 $ 1,358 $ 166
Accruing loans 90+ past due 484 1,447 484 1,447
Nonaccrual loans 1,169 1,206 1,169 1,206
Foreclosed assets 5,281 254 5,281 254
FIRST BUSEY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, June 30,
2002 2001
------------ ------------
ASSETS (Dollars in thousands)
Cash and due from banks $ 43,893 $ 53,398
-- --
Federal funds sold 27,700 42,500
-- --
Investment securities 218,482 222,143
Loans (net of unearned interest) 1,009,151 969,784
Allowance for loan losses (13,810) (12,997)
------------ ------------
Net loans $ 995,341 $ 956,787
Premises and equipment 28,258 30,075
Goodwill and other intangibles 10,280 11,540
Other assets 32,611 18,104
------------ ------------
Total assets $ 1,356,565 $ 1,334,547
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Non-interest bearing $ 134,671 $ 121,920
Interest bearing 1,001,141 1,012,895
------------ ------------
Total deposits $ 1,135,812 $ 1,134,815
Fed Funds purchased and securities sold
under agreements to repurchase 5,021 16,402
Short-term borrowings -- 5,000
Long-term debt 70,021 45,283
Company obligated mandatorily redeemable
preferred securities of subsidiary trust
holding solely subordinated debentures 25,000 25,000
Other liabilities 9,940 9,448
------------ ------------
Total liabilities $ 1,245,794 $ 1,235,948
------------ ------------
STOCKHOLDERS' EQUITY
Common stock $ 6,291 $ 6,291
Surplus 20,906 21,746
Retained earnings 86,764 77,846
Other comprehensive income 9,182 7,125
------------ ------------
Total stockholders' equity before treasury stock,
unearned ESOP shares and deferred compensation for
stock grants $ 123,143 $ 113,008
Treasury stock (10,205) (12,123)
Unearned ESOP shares (2,021) (2,283)
Deferred compensation for stock grants (146) (3)
------------ ------------
Total stockholders' equity $ 110,771 $ 98,599
------------ ------------
Total liabilities and stockholders' equity $ 1,356,565 $ 1,334,547
============ ============
Common shares outstanding at period end 13,650,920 13,546,813
============ ============
FIRST BUSEY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2002 2001
------------ ------------
ASSETS (Dollars in thousands)
Cash and due from banks $ 43,893 $ 41,580
-- --
Federal funds sold 27,700 20,000
-- --
Investment securities 218,482 210,869
Loans (net of unearned interest) 1,009,151 978,106
Allowance for loan losses (13,810) (13,688)
------------ ------------
Net loans $ 995,341 $ 964,418
Premises and equipment 28,258 29,081
Goodwill and other intangibles 10,280 10,504
Other assets 32,611 24,237
------------ ------------
Total assets $ 1,356,565 $ 1,300,689
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Non-interest bearing $ 134,671 $ 138,685
Interest bearing 1,001,141 967,314
------------ ------------
Total deposits $ 1,135,812 $ 1,105,999
Fed Funds purchased and securities sold
under agreements to repurchase 5,021 9,767
Short-term borrowings -- 2,000
Long-term debt 70,021 47,021
Company obligated mandatorily redeemable
preferred securities of subsidiary trust
holding solely subordinated debentures 25,000 25,000
Other liabilities 9,940 5,112
------------ ------------
Total liabilities $ 1,245,794 $ 1,194,899
------------ ------------
STOCKHOLDERS' EQUITY
Common stock $ 6,291 $ 6,291
Surplus 20,906 21,170
Retained earnings 86,764 81,861
Other comprehensive income 9,182 8,128
------------ ------------
Total stockholders' equity before treasury
stock, unearned ESOP shares and deferred
compensation for stock grants $ 123,143 $ 117,450
Treasury stock (10,205) (9,639)
Unearned ESOP shares (2,021) (2,021)
Deferred compensation for stock grants (146) --
------------ ------------
Total stockholders' equity $ 110,771 $ 105,790
------------ ------------
Total liabilities and stockholders' equity $ 1,356,565 $ 1,300,689
============ ============
Common shares outstanding at period end 13,650,920 13,677,688
============ ============
FIRST BUSEY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
2002 2001
--------- -------
(Dollars in thousands,
INTEREST INCOME: except per share amounts)
Interest and fees on loans $32,637 $40,513
Interest and dividends on investment securities:
Taxable interest income 3,659 5,278
Non-taxable interest income 977 1,038
Dividends 61 59
Interest on federal funds sold 86 749
------- -------
Total interest income $37,420 $47,637
------- -------
INTEREST EXPENSE:
Deposits $12,366 $23,083
Short-term borrowings 265 1,484
Long-term debt 2,530 1,438
------- -------
Total interest expense $15,161 $26,005
------- -------
Net interest income $22,259 $21,632
Provision for loan losses 1,480 895
------- -------
Net interest income after provision for loan losses $20,779 $20,737
------- -------
NON-INTEREST INCOME:
Trust $ 2,499 $ 2,406
Commissions and brokers fees, net 1,095 1,164
Service charges on deposit accounts 3,411 2,907
Other service charges and fees 862 815
Security gains (losses), net 473 872
Gain on sales of pooled loans 1,356 966
Net commissions from travel services -- 526
Other operating income 1,354 1,448
------- -------
Total non-interest income $11,050 $11,104
------- -------
NON-INTEREST EXPENSE:
Salaries and wages $ 8,640 $ 8,641
Employee benefits 1,823 1,803
Net occupancy expense of bank premises 1,557 1,533
Furniture and equipment expenses 1,672 1,968
Data processing 417 391
Stationery, supplies and printing 490 541
Amortization expense 224 715
Other operating expenses 3,572 3,538
------- -------
Total non-interest expense $18,395 $19,130
------- -------
Income before income taxes $13,434 $12,711
Income taxes 4,457 4,586
------- -------
Net income $ 8,977 $ 8,125
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BASIC EARNINGS PER SHARE: $ 0.66 $ 0.60
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DILUTED EARNINGS PER SHARE: $ 0.66 $ 0.60
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DIVIDENDS DECLARED PER SHARE OF COMMON STOCK $ 0.30 $ 0.26
======= =======
FIRST BUSEY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
FOR THE QUARTERS ENDED JUNE 30, 2002 AND 2001
2002 2001
--------- -------
(Dollars in thousands,
INTEREST INCOME: except per share amounts)
Interest and fees on loans $16,233 $19,945
Interest and dividends on investment securities:
Taxable interest income 1,873 2,554
Non-taxable interest income 493 520
Dividends 30 29
Interest on federal funds sold 28 240
------- -------
Total interest income $18,657 $23,288
------- -------
INTEREST EXPENSE:
Deposits $ 6,101 $11,056
Short-term borrowings 126 691
Long-term debt 1,312 677
------- -------
Total interest expense $ 7,539 $12,424
------- -------
Net interest income $11,118 $10,864
Provision for loan losses 915 495
------- -------
Net interest income after provision for loan losses $10,203 $10,369
------- -------
NON-INTEREST INCOME:
Trust $ 1,249 $ 1,255
Commissions and brokers fees, net 554 567
Service charges on deposit accounts 1,855 1,528
Other service charges and fees 440 418
Security gains (losses), net 199 221
Gain on sales of pooled loans 559 533
Net commissions from travel services -- 254
Other operating income 730 936
------- -------
Total non-interest income $ 5,586 $ 5,712
------- -------
NON-INTEREST EXPENSE:
Salaries and wages $ 4,342 $ 4,377
Employee benefits 892 835
Net occupancy expense of bank premises 782 731
Furniture and equipment expenses 840 997
Data processing 222 201
Stationery, supplies and printing 257 284
Amortization expense 112 357
Other operating expenses 1,953 2,020
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Total non-interest expense $ 9,400 $ 9,802
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Income before income taxes $ 6,389 $ 6,279
Income taxes 2,102 2,252
------- -------
Net income $ 4,287 $ 4,027
======= =======
BASIC EARNINGS PER SHARE: $ 0.32 $ 0.30
======= =======
DILUTED EARNINGS PER SHARE: $ 0.32 $ 0.30
======= =======
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK $ 0.15 $ 0.13
======= =======
FIRST BUSEY CORPORATION
EARNINGS PER SHARE
1996 1997 1998 1999 2000 2001 2002
- -------------------------------------------------------------------------
1st QTR $0.16 $0.17 $0.20 $0.21 $0.26 $0.30 $0.34
2nd QTR $0.18 $0.19 $0.21 $0.24 $0.29 $0.30 $0.32
3rd QTR $0.16 $0.19 $0.21 $0.25 $0.26 $0.28
4th QTR $0.175 $0.19 $0.19 $0.20 $0.22 $0.27
- -------------------------------------------------------------------------
$0.67 $0.74 $0.81 $0.90 $1.03 $1.15 $0.66