FIRST BUSEY CORPORATION(R)
EARNINGS RELEASE FOR QUARTER ENDING JUNE 30, 2003
SECOND QUARTER HIGHLIGHTS
- - NET INCOME for the second quarter is $5,356,000 or $.40 per share as
compared to $4,287,000 or $.32 per share for the same period in 2002. On a
year-to-date basis, net income was $10,198,000 or $.75 per share through
the first six months of 2003 compared to $8,977,000 or $.66 per share for
the same period in 2002. For the second quarter, net income increased 24.9%
and earnings per share increased 25.0%.
- - NET INTEREST INCOME increased $736,000 or 6.6% to $11,854,000 in the second
quarter of 2003 compared to $11,118,000 in the second quarter of 2002.
Interest income fell $153,000 during the second quarter of 2003 as compared
to the same period last year due to the decline in interest rates which was
offset by growth in the average volume of interest-earning assets. Interest
expense fell $889,000 during the second quarter of 2003 compared to the
same period last year, again due to the decline in interest rates.
- - PROVISION FOR LOAN LOSSES as of June 30, 2003 was $330,000 as compared to
$915,000 for the same quarter of 2002. The decrease in the provision is due
to a decrease in the net charged off loans from $986,000 for the second
quarter of 2002 to $51,000 for the second quarter of 2003.
- - NON-INTEREST INCOME increased $1,285,000 or 23.0% to $6,871,000 during the
second quarter of 2003 as compared to the $5,586,000 earned during 2002.
This increase is due to growth in gains on the sale of mortgage loans.
Gains have grown from $559,000 during the second quarter of 2002 to
$2,239,000 during the second quarter of this year due to the low
interest-rate environment. However, trust fees and brokerage fees and
commissions are lower during the second quarter of this year as compared to
last year due to market factors.
- - NON-INTEREST EXPENSE increased $584,000 or 6.2% to $9,984,000 during the
second quarter of 2003 as compared to the $9,400,000 during the same period
in 2002. Salaries and wage expenses have increased dramatically due
primarily to commissions associated with the increase in mortgage
production.
FINANCIAL SUMMARY
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
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(in thousands except per share data)
EARNINGS & PER SHARE DATA
Net Income $ 5,356 $ 4,287 $ 10,198 $ 8,977
Basic earnings per share 0.40 0.32 0.75 0.66
Diluted earnings per share 0.40 0.32 0.75 0.66
Dividends per share 0.17 0.15 0.34 0.30
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AVERAGE BALANCES
Assets $ 1,450,356 $ 1,304,083 $ 1,436,786 $ 1,295,457
Investment securities 245,152 219,582 241,122 210,726
Loans 1,099,101 989,895 1,091,288 987,258
Earning assets 1,359,539 1,216,179 1,345,941 1,208,862
Deposits 1,202,463 1,085,714 1,196,566 1,085,847
Stockholders' equity 121,288 108,707 119,347 107,615
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PERFORMANCE RATIOS
Return on average assets 1.48% 1.32% 1.43% 1.40%
Return on average equity 17.71% 15.82% 17.23% 16.82%
Net interest margin 3.59% 3.77% 3.64% 3.82%
Efficiency ratio 52.20% 55.22% 53.95% 54.29%
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LOAN PERFORMANCE
Net credit losses $ 51 $ 986 $ 63 $ 1,358
Accruing loans 90+ days
past due 1,180 484 1,180 484
Non-accrual loans 1,145 1,169 1,145 1,169
Foreclosed assets 5,293 5,282 5,293 5,282
CORPORATE PROFILE
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, Indiana and a
loan production office in Ft. Myers, Florida. Total assets of Busey Bank were
$1.4 billion as of June 30, 2003. Busey Bank Florida is a federal thrift charter
headquartered in Ft. Myers, Florida with a second banking center located in Cape
Coral, Florida. Total assets of Busey Bank Florida were $88 million as of June
30, 2003. Busey provides 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. (member NASD/SIPC) is a full-service
broker/dealer subsidiary with more than $500 million in assets under care. Busey
Insurance Services, Inc. provides personal insurance products and specializes in
long-term healthcare insurance.
First Busey Corporation Common Stock is traded on the Nasdaq National Market
under the symbol "BUSE." First Busey Corporation has a Repurchase Program in
effect under which it is authorized to purchase up to 500,000 shares of stock,
of which 281,212 shares have already been purchased. BUSE closed on June 30,
2003 at $24.15, an increase of 4.7% from the closing price of $23.06 on December
31, 2002.
CONSOLIDATED BALANCE SHEETS
(unaudited)
June 30,
2003 2002
--------------------------------
(in thousands)
ASSETS
Cash and due from banks $ 45,871 $ 43,893
Federal funds sold 33,300 27,700
Investment securities 248,829 218,482
Loans 1,114,804 1,009,151
Less allowance for loan losses (16,327) (13,810)
Net loans 1,098,477 995,341
Premises and equipment, net 25,389 28,258
Goodwill and other intangibles 9,638 10,280
Other assets 38,708 32,611
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TOTAL ASSETS $ 1,500,212 $ 1,356,565
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LIABILITIES & STOCKHOLDERS' EQUITY
Non-interest bearing deposits $ 161,122 $ 134,671
Interest bearing deposits 1,096,160 1,001,141
Total deposits $ 1,257,282 $ 1,135,812
Federal funds purchased & securities sold
under agreements to repurchase 8,162 5,021
Long-term debt 77,759 70,021
Company obligated mandatorily
redeemable preferred securities 25,000 25,000
Other liabilities 8,486 9,940
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TOTAL LIABILITIES $ 1,376,689 $ 1,245,794
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Common stock $ 6,291 $ 6,291
Surplus 21,004 20,906
Retained earnings 97,225 86,764
Other comprehensive income 11,142 9,182
Treasury stock (10,312) (10,205)
Unearned ESOP shares (1,759) (2,021)
Deferred compensation for stock grants (68) (146)
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TOTAL STOCKHOLDERS' EQUITY $ 123,523 $ 110,771
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,500,212 $ 1,356,565
CONDENSED CONSOLIDATED STATEMENTS
OF INCOME (unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
-----------------------------------------------------------
(in thousands, except per share data)
Interest and fees on loans $ 16,354 $ 16,233 $ 32,839 $ 32,637
Interest on investment securities 2,106 2,396 4,256 4,697
Other interest income 44 28 77 86
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TOTAL INTEREST INCOME $ 18,504 $ 18,657 $ 37,172 $ 37,420
Interest on deposits $ 5,176 $ 6,101 $ 10,600 $ 12,366
Interest on short-term borrowings 52 126 97 265
Interest on long-term debt 1,422 1,312 2,796 2,530
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TOTAL INTEREST EXPENSE $ 6,650 $ 7,539 $ 13,493 $ 15,161
Net interest income $ 11,854 $ 11,118 $ 23,679 $ 22,259
Provision for loans losses 330 915 930 1,480
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NET INTEREST INCOME AFTER PROVISION $ 11,524 $ 10,203 $ 22,749 $ 20,779
Trust fees $ 1,184 $ 1,361 $ 2,291 $ 2,611
Commissions and brokers' fees 511 554 976 1,095
Fees for customer services 2,341 2,295 4,484 4,273
Gain on sale of loans 2,239 559 4,474 1,356
Security gains, net 116 199 299 473
Other 480 618 822 1,242
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TOTAL NON-INTEREST INCOME $ 6,871 $ 5,586 $ 13,346 $ 11,050
Salaries and employee benefits $ 5,869 $ 5,234 $ 11,520 $ 10,463
Net occupancy expense 714 782 1,529 1,557
Furniture and equipment expenses 628 752 1,310 1,481
Other operating expenses 2,773 2,632 6,007 4,894
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TOTAL NON-INTEREST EXPENSE $ 9,984 $ 9,400 $ 20,366 $ 18,395
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Income before income taxes $ 8,411 $ 6,389 $ 15,729 $ 13,434
Income taxes 3,055 2,102 5,531 4,457
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NET INCOME $ 5,356 $ 4,287 $ 10,198 $ 8,977
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COMMON SHARE DATA
Book value $ 9.05 $ 8.11
Tangible book value $ 8.34 7.36
Average number of shares 13,692,957 13,642,718 13,678,784 13,649,604
outstanding
Ending number of shares 13,652,220 13,650,920
outstanding
WHY BUSEY? HERE'S WHY...
Celebrating 15 years of
First Busey Corporation
Stock Performance
June 30, 2003
1988 1993 1998 2003
$3.67 $6.67 $16.75 $24.15
[BUSEY LOGO]
Fifteen year Annualized Total Rate of Return 16.96%