First Busey Announces Second Quarter 2009 Loss, Pre-Provision Profit and Dividend Payment

Message From Our President & CEO

• Press Release
• Source: First Busey Corporation
• On 5:00 pm EDT, Tuesday July 21, 2009

URBANA, Ill., July 21, 2009 (GLOBE NEWSWIRE) -- First Busey Corporation's (Nasdaq:BUSE - News) consolidated net loss for the quarter ended June 30, 2009 was $20.5 million, or $0.57 per fully-diluted common share, compared to net income of $4.6 million, or $0.13 per fully-diluted common share, for the quarter ended June 30, 2008. On a year-to-date basis, consolidated net loss was $15.0 million, or $0.42 per fully-diluted share in 2009 as compared to net income of $14.6 million, or $0.41 per fully-diluted share in 2008.

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Symbol	Price	Change
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{"s" : "buse","k" : "c10,l10,p20,t10","o" : "","j" : ""}

The decline in net income was primarily due to increased provision for loan losses. We recorded $47.5 million in provision for loan losses in the second quarter of 2009 as compared to $12.3 million in the same period of 2008. Year-to-date, our provision for loan losses was $57.5 million, as compared to $14.5 million in 2008. Additionally, downward pressure on the net interest margin primarily attributable to lost interest income on non-accrual loans and loans charged-off, and increased FDIC insurance have negatively affected our earnings.

Our Illinois markets continue to perform remarkably well. Our credit challenges are primarily within our Indianapolis and Florida markets. In Illinois, the non-performing loans/ loans ratio is 1.1% ($25.5 million/$2.31 billion), whereas the ratio is 6.1% ($11.2 million/$182.1 million) in Indiana and 13.6% ($90.4 million/$0.67 billion) in Florida. Additionally, more than half of our Illinois non-performing loans consist of two relationships that we believe to have fully provided for the potential losses.

Our core market is performing very well and we are executing the operational discipline necessary to return to solid profitability levels once we emerge from our credit issues. A review of our core operating results (pre-tax, pre-provision operating profit), follows:

 * Net interest income increased to $28.4 million in the second
   quarter of 2009 as compared to $27.6 million in the first quarter
   of 2009, our first quarterly increase since the second quarter of
   2008.  The increase in net interest income is attributable to lower
   funding costs as income from earning assets declined by
   $0.7 million, whereas interest expense from interest-bearing
   liabilities declined by $1.5 million.
 * Non-interest income increased $1.4 million in the second quarter of
   2009 as compared to the first quarter of 2009, primarily due to
   income from the sale of mortgage loans and increased remittance
   processing revenue.
 * Non-interest expense increased $4.3 million to $30.1 million in the
   second quarter of 2009 as compared to $25.8 million in the first
   quarter of 2009.  This increase was due primarily to increased FDIC
   insurance of $2.6 million, increased commissions from mortgage
   loans of $1.6 million and losses from foreclosed real estate of
   $0.8 million.  After accounting for these increases, our
   non-interest expense decreased $0.7 million from the first quarter
   of 2009.

As noted in our first quarter earnings release, we are committed to the priorities of Balance Sheet Strength, Profitability and Growth-- in that order. While significant provisioning certainly impacts our current earnings position, our priority is to emerge from these challenging economic times equipped to capitalize on profitable growth opportunities. While we believe to have adequately provided for our loan losses to date, as noted in our past releases and discussed at our 2008 and 2009 shareholder meetings, we expected to experience larger than normal levels of nonperforming assets in 2008 and throughout 2009. We are not finished with the issues within our loan portfolio; you can expect additional provisioning in the future.

Despite the earnings challenges, our banks are well-capitalized. Our holding company and our banks exceed the regulatory definition of well-capitalized, the highest regulatory standard. In addition to working to maintain our strong capital position, we have remained focused on liquidity. We have reduced our non-deposit funding by $90.9 million since December 31, 2008, including paying down of $32 million of debt at our holding company. Our non-interest bearing deposits have increased $80.6 million over the same period. Although our cash position has declined by $99.3 million, interest-bearing deposits were reduced by $243.3 million since December 31, 2008, most of which were higher cost certificates-of-deposit.

On July 24, 2009, we will pay a dividend of $0.08 per common share to shareholders of record on July 21, 2009. We analyzed this dividend payment decision very carefully to ensure it was consistent with our capital plan and our earnings. Although we recorded a net loss for the quarter, our core operating results and current capital position supported the dividend payment. We will continue to review the dividend payment in subsequent quarters.

The Busey Strategy is built upon fulfilling The Busey Promise to our four pillars -- customers, associates, communities and shareholders. We will grow by successfully executing our mission of exceeding the service needs of our customers, investing in our associates and communities and delivering long-term value to you, our shareholders. Busey associates not only possess significant financial expertise, but positive attitudes and commitment to an extra-ordinary service philosophy. This combination allows us to remain customer-focused and retain market share despite challenging economic times. We thank our associates for their efforts, our customers for their business and our shareholders for their continued support of Busey.

As always, your input and questions are welcome.

\s\ Van A. Dukeman

Corporate Profile

First Busey Corporation is a $4.3 billion financial holding company headquartered in Urbana, Illinois. First Busey Corporation has two wholly-owned banks with locations in three states. Busey Bank is headquartered in Champaign, Illinois and has thirty-four banking centers serving downstate Illinois. Busey Bank has a banking center in Indianapolis, Indiana, and a loan production office in Fort Myers, Florida. As of June 30, 2009, Busey Bank had total assets of $3.8 billion. Busey Bank, N.A. is headquartered in Fort Myers, Florida, with eight banking centers serving southwest Florida. Busey Bank, N.A. had total assets of $420.1 million as of June 30, 2009.

Busey Wealth Management is a wholly-owned subsidiary of First Busey Corporation. Through Busey Trust Company, Busey Wealth Management delivers trust, asset management, retail brokerage and insurance products and services. As of June 30, 2009, Busey Wealth Management had approximately $3.1 billion in assets under care.

First Busey Corporation owns a retail payment processing subsidiary, FirsTech, Inc., which processes over 32 million transactions per year through online bill payments, lockbox processing and walk-in payments through its 4,700 agent locations in 40 states.

Busey provides electronic delivery of financial services through our website, www.busey.com.

                    SELECTED FINANCIAL HIGHLIGHTS
                    -----------------------------
            (dollars in thousands, except per share data)

                      Three Months Ended           Six Months Ended
              --------------------------------- ----------------------
               June 30,    March 31,  June 30,   June 30,    June 30,
                 2009        2009       2008       2009        2008
 ---------------------------------------------- ----------------------
 EARNINGS &
  PER SHARE
  DATA
  Net income/
   (loss)(1)  $  (20,472) $    5,506 $    4,591 $  (14,966) $   14,595
  Revenue(2)      45,872      43,641     45,266     89,480      90,320
  Fully-
   diluted
   earnings
   per share       (0.57)       0.15       0.13      (0.42)       0.41
  Cash
   dividends
   paid per
   share            0.08        0.20       0.20       0.28        0.40

  Net income
   (loss) by
   operating
   segment
   Busey Bank $  (14,074) $    6,584 $    6,395 $   (7,490) $   17,997
   Busey Bank,
    N.A           (6,061)       (714)    (2,002)    (6,775)     (3,049)
   Busey
    Wealth
    Management       717         562        871      1,279       1,317
   FirsTech          847         822        703      1,669       1,322

 ---------------------------------------------------------------------
 AVERAGE
  BALANCES
  Assets      $4,419,839  $4,410,790 $4,235,000 $4,412,282  $4,214,780
  Earning
   assets      3,971,923   3,966,968  3,733,761  3,969,384   3,713,522
  Deposits     3,436,870   3,488,527  3,200,098  3,462,467   3,215,248
  Interest-
   bearing
   liabilities 3,372,323   3,455,020  3,289,370  3,416,464   3,271,299
  Stock-
   holders'
   equity -
   common        446,600     452,327    517,936    449,146     519,418

 ---------------------------------------------------------------------
 PERFORMANCE
  RATIOS
  Return on
   average
   assets(3)       (1.86%)      0.51%      0.44%     (0.68%)      0.70%
  Return on
   average
   common
   equity(3)      (18.39%)      4.94%      3.56%     (6.72%)      5.65%
  Net interest
   margin(3)        2.92%       2.88%      3.46%      2.90%       3.47%
  Efficiency
   ratio(4)        62.61%      56.26%     56.26%     59.40%      57.75%
  Non-interest
   revenue as
   a % of
   total
   revenues(2)     38.09%      36.77%     30.35%     37.42%      30.48%

 ---------------------------------------------------------------------
 ASSET QUALITY
  Gross loans $3,162,007  $3,261,440 $3,166,705
  Allowance
   for loan
   losses         88,549      88,498     48,579
  Net
   charge-offs    47,449      20,173      6,645     67,622       8,431
  Allowance
   for loan
   losses to
   loans            2.80%       2.71%      1.53%
  Allowance
   as a
   percentage
   of non-
   performing
   loans           69.65%      73.03%     82.84%
  Non-
   performing
   loans
   Non-accrual
    loans        122,595     105,424     53,155
   Loans 90+
    days past
    due            4,540      15,752      5,486
   Geographically
    Downstate
     Illinois/
     Indiana      36,714      36,653     18,639
    Florida       90,421      84,523     40,002
  Other non-
   performing
   assets         14,787      16,957      3,095

 ---------------------------------------------------------------------
 (1) Available to common stockholders, net of preferred dividend and
     TARP warrant accretion.
 (2) Net of interest expense, excludes security gains.
 (3) Quarterly ratios annualized and calculated on net income (loss)
     available to common stockholders.
 (4) Net of security gains and intangible charges.

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) the economic impact of any future terrorist threats or attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business; (iv) changes in interest rates and prepayment rates of the Company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the loss of key executives or employees; (viii) changes in consumer spending; (ix) unexpected results of acquisitions; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) 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.

 Condensed Consolidated Balance Sheets
 (Unaudited, in thousands, except per share data)

                         June 30,    March 31,   Dec. 31,    June 30,
                           2009        2009        2008        2008
                        ----------------------------------------------
 Assets
 Cash and due from
  banks                 $   90,797  $  138,413  $  190,113  $  124,639
 Investment securities     648,891     708,112     654,130     580,891
 Net loans               3,073,458   3,172,942   3,158,910   3,118,126
 Premises and equipment     80,082      80,890      81,732      82,198
 Goodwill and other
  intangibles              254,675     255,765     256,868     278,835
 Other assets              128,611     114,353     118,340      80,742
 ---------------------------------------------------------------------
 Total assets           $4,276,514  $4,470,475  $4,460,093  $4,265,431
 =====================================================================

 Liabilities &
  Stockholders' Equity
 Non-interest bearing
  deposits              $  458,647  $  458,332  $  378,007  $  376,452
 Interest-bearing
  deposits               2,885,426   3,031,869   3,128,686   2,797,511
 ---------------------------------------------------------------------
 Total deposits         $3,344,073  $3,490,201  $3,506,693  $3,173,963

 Federal funds purchased
  & securities sold
  under agreements to
  repurchase               154,099     143,635     182,980     217,734
 Short-term borrowings      30,000      58,000      83,000     117,000
 Long-term debt            125,493     132,743     134,493     151,910
 Junior subordinated
  debt owed to
  unconsolidated trusts     55,000      55,000      55,000      55,000
 Other liabilities          38,893      39,208      43,110      36,301
 ---------------------------------------------------------------------
 Total liabilities      $3,747,558  $3,918,787  $4,005,276  $3,751,908
 ---------------------------------------------------------------------
 Total stockholders'
  equity                $  528,956  $  551,688  $  454,817  $  513,523
 ---------------------------------------------------------------------
 Total liabilities &
  stockholders' equity  $4,276,514  $4,470,475  $4,460,093  $4,265,431
 =====================================================================

 Per Share Data
 ---------------------------------------------------------------------
 Book value per share   $    11.98  $    12.65  $    12.70  $    14.35
 Tangible book value
  per share             $     4.87  $     5.51  $     5.53  $     6.56
 Ending number of
  shares outstanding        35,816      35,816      35,815      35,787


 Condensed Consolidated Statements of Operations
 (Unaudited, in thousands, except per share data)

                                Three Months Ended   Six Months Ended
                                     June 30,            June 30,
                                --------------------------------------
                                  2009      2008      2009      2008
                                --------------------------------------

 Interest and fees on loans     $ 41,607  $ 48,611  $ 83,747  $100,262
 Interest on investment
  securities                       6,021     6,079    12,188    12,880
 Other interest income                --         3        --       108
 ---------------------------------------------------------------------
 Total interest income          $ 47,628  $ 54,693  $ 95,935  $113,250
 ---------------------------------------------------------------------

 Interest on deposits             16,498    19,174    34,315    42,021
 Interest on short-term
  borrowings                         683     1,756     1,526     3,515
 Interest on long-term debt        1,306     1,391     2,580     3,121
 Junior subordinated debt owed
  to unconsolidated trusts           742       846     1,519     1,805
 ---------------------------------------------------------------------
 Total interest expense         $ 19,229  $ 23,167  $ 39,940  $ 50,462
 ---------------------------------------------------------------------

 Net interest income            $ 28,399  $ 31,526  $ 55,995  $ 62,788
 Provision for loan losses        47,500    12,300    57,500    14,450
 ---------------------------------------------------------------------
 Net interest income (loss)
  after provision for loan
  losses                        $(19,101) $ 19,226  $ (1,505) $ 48,338
 ---------------------------------------------------------------------

 Fees for customer services        4,292     3,994     8,289     7,845
 Trust fees                        3,348     3,698     6,553     6,771
 Remittance processing             3,381     3,028     6,635     5,975
 Commissions and brokers' fees       428       686       947     1,388
 Gain on sales of loans            3,715     1,206     6,133     2,366
 Net security gains                   54        30        75       502
 Other                             2,309     1,128     4,928     3,187
 ---------------------------------------------------------------------
 Total non-interest income      $ 17,527  $ 13,770  $ 33,560  $ 28,034
 ---------------------------------------------------------------------

 Salaries and wages               10,792    11,851    21,421    23,363
 Employee benefits                 2,754     2,586     5,571     5,722
 Net occupancy expense             2,396     2,325     4,971     4,789
 Furniture and equipment expense   1,823     2,350     3,759     4,267
 Data processing expense           1,930     1,628     3,662     3,316
 Amortization expense              1,090     1,130     2,180     2,259
 Other operating expenses          9,371     5,067    14,415    11,394
 ---------------------------------------------------------------------
 Total non-interest expense     $ 30,156  $ 26,937  $ 55,979  $ 55,110
 ---------------------------------------------------------------------

 Income (loss) before income
  taxes                         $(31,730) $  6,059  $(23,924) $ 21,262
 Income taxes                    (12,601)    1,468   (10,688)    6,667
 ---------------------------------------------------------------------
 Net income (loss)              $(19,129) $  4,591  $(13,236) $ 14,595
 ---------------------------------------------------------------------
 Preferred stock dividends and
  TARP warrant accretion        $  1,343  $     --  $  1,730  $     --
 ---------------------------------------------------------------------
 Income (loss) available for
  common stockholders           $(20,472) $  4,591  $(14,966) $ 14,595
 =====================================================================

 Per Share Data
 ---------------------------------------------------------------------
 Basic earnings (loss) per
  share                         $  (0.57) $   0.13  $  (0.42) $   0.41
 Fully-diluted earnings (loss)
  per share                     $  (0.57) $   0.13  $  (0.42) $   0.41
 Diluted average shares
  outstanding                     35,816    35,931    35,816    36,031

First Busey Corporation
Barbara J. Harrington, CFO
217-365-4516