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First Busey Announces 2019 Second Quarter Earnings

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First Busey Announces 2019 Second Quarter Earnings

CHAMPAIGN, Ill., July 23, 2019 (GLOBE NEWSWIRE) -- (BUSE)

Message from our President & CEO

Positive advances in the second quarter of 2019 from the comparable quarter of the prior year:

  • Total assets of $9.61 billion, an increase of 23.6%

  • Net interest income of $73.4 million, an increase of 21.6%

  • Portfolio loans of $6.53 billion, an increase of 17.6%

  • Non-interest bearing deposits of $1.77 billion, an increase of 18.0%

    • Tangible book value per common share of $14.95, as compared to $13.40

First Busey Corporation’s (“First Busey” or the “Company”) net income for the second quarter of 2019 was $24.1 million, or $0.43 per diluted common share, as compared to $25.5 million, or $0.48 per diluted common share, for the first quarter of 2019 and $24.9 million, or $0.51 per diluted common share, for the second quarter of 2018. Adjusted net income1 for the second quarter of 2019 was $29.5 million, or $0.53 per diluted common share, as compared to $26.6 million, or $0.50 per diluted common share, for the first quarter of 2019 and $25.6 million, or $0.52 per diluted common share, for the second quarter of 2018.

Year-to-date net income through June 30, 2019 was $49.6 million, or $0.90 per diluted common share, compared to net income of $46.8 million, or $0.95 per diluted common share, for the comparable period of 2018. Year-to-date adjusted net income1 for the first six months of 2019 was $56.1 million, or $1.02 per diluted common share, compared to $50.5 million or $1.03 per diluted common share for the first six months of 2018.

The Company views certain non-operating items, including acquisition-related and restructuring charges, as adjustments to net income reported under generally accepted accounting principles (“GAAP”). Non-operating pretax adjustments for the second quarter of 2019 were $4.1 million of expenses related to acquisitions, $1.4 million of expenses related to other restructuring costs and $1.8 million related to mortgage servicing rights impairment from TheBANK of Edwardsville (“TheBANK”) asset. The reconciliation of non-GAAP measures (including adjusted net income, adjusted return on average assets, adjusted net interest margin, adjusted efficiency ratio, tangible book value, tangible book value per share and return on average tangible common equity), which the Company believes facilitates the assessment of its financial results and peer comparability, is included in tabular form at the end of this release.

For the second quarter of 2019, annualized return on average assets and annualized return on average tangible common equity were 1.01% and 11.80%, respectively. Based on adjusted net income1, return on average assets was 1.24% and return on average tangible common equity was 14.45% for the second quarter of 2019.

For the six months ended June 30, 2019, annualized return on average assets and annualized return on average tangible common equity were 1.09% and 12.68%, respectively. Based on adjusted net income1, return on average assets was 1.23% and return on average tangible common equity was 14.35% for the six months ended June 30, 2019.

On January 31, 2019, the Company completed its acquisition of The Banc Ed Corp. (“Banc Ed”), the holding company for TheBANK. TheBANK, founded in 1868, is a privately held commercial bank headquartered in Edwardsville, Illinois. It is anticipated that TheBANK will be merged with and into First Busey’s bank subsidiary, Busey Bank, in the fourth quarter of 2019. Financial results for 2019 were impacted by the Banc Ed acquisition, resetting the baseline for financial performance in future quarters in a multitude of positive ways.

1 A Non-GAAP financial measure. See “Non-GAAP Financial Information” below for reconciliation.

On May 13, 2019, the Company announced the execution of an Agreement and Plan of Merger in connection with the proposed acquisition by Busey Bank of Investors’ Security Trust Company (“IST”), a Fort Myers, Florida wealth management firm. While the proposed acquisition is expected to add to the Company’s wealth management offerings, it is not expected to have any immediate, material impact to the Company’s earnings or overall business. Through this transaction, Busey Bank and IST broaden the expertise and level of service available to clients—from individuals and families to institutions and foundations—and remain committed to their founding principles of being active community stewards and providing the highest level of personal service to clients delivered by experienced, local professionals. It is anticipated that IST will be merged with and into the wealth management division of Busey Bank in 2019, subject to customary closing conditions and required approvals.

Busey recently received its fourth consecutive honor as one of the 2019 Best Places to Work in Illinois. This awards program—voted by associates and hosted by Best Companies Group and Daily Herald Business Ledger—identifies and recognizes the best places of employment in Illinois, benefiting the state’s economy, workforce and businesses. In addition, for the first time Busey was honored as a 2019 Best Place to Work in Indiana by Best Companies Group and the Indiana Chamber of Commerce and in Missouri as one of the 2019 Best Places to Work in St. Louis by Quantum Workplace and St. Louis Business Journal. Further, Busey was named among the 2019 Best-In-State Banks for Illinois by Forbes and Statista and recognized with the 2019 BEST Award in talent development for the third year by the Association for Talent Development.

Busey takes pride in its culture and its commitment to the communities we serve. As we acknowledge our accomplishments and the positive forward momentum of the Company, we are grateful to you for allowing us the opportunity to serve you and your community.

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

SELECTED FINANCIAL HIGHLIGHTS1

(dollars in thousands, except per share data)

As of and for the

As of and for the

Three Months Ended

Six Months Ended

June 30,

March 31,

December 31,

June 30,

June 30,

June 30,

2019

2019

2018

2018

2019

2018

EARNINGS & PER SHARE DATA

Net income

$

24,085

$

25,469

$

25,290

$

24,862

$

49,554

$

46,779

Revenue2

102,350

94,286

83,184

83,014

196,636

165,257

Diluted earnings per share

0.43

0.48

0.51

0.51

0.90

0.95

Cash dividends paid per share

0.21

0.21

0.20

0.20

0.42

0.40

Net income by operating segment

Banking

$

24,441

$

26,665

$

24,134

$

24,904

$

51,106

$

46,749

Remittance Processing

1,105

1,025

814

986

2,130

1,939

Wealth Management

2,845

2,641

2,040

2,288

5,486

5,052

AVERAGE BALANCES

Cash and cash equivalents

$

328,414

$

220,471

$

272,811

$

218,239

$

327,525

$

222,623

Investment securities

1,897,486

1,722,015

1,443,054

1,308,203

1,810,237

1,309,545

Loans held for sale

25,143

17,249

23,380

27,516

21,218

33,372

Portfolio loans

6,528,326

6,128,661

5,540,852

5,533,168

6,329,596

5,520,584

Interest-earning assets

8,666,136

8,088,396

7,174,755

6,984,486

8,378,862

6,980,457

Total assets

9,522,678

8,865,642

7,846,154

7,653,541

9,198,975

7,658,691

Non-interest bearing deposits

1,747,746

1,616,913

1,486,977

1,492,251

1,682,691

1,494,680

Interest-bearing deposits

5,970,408

5,592,495

4,852,649

4,619,710

5,782,495

4,594,078

Total deposits

7,718,154

7,209,408

6,339,626

6,111,961

7,465,186

6,088,758

Securities sold under agreements to repurchase

193,621

204,529

210,416

234,282

199,045

246,100

Interest-bearing liabilities

6,493,885

6,064,091

5,329,898

5,176,986

6,280,175

5,176,113

Total liabilities

8,326,876

7,755,770

6,866,652

6,709,410

8,042,900

6,719,716

Stockholders' common equity

1,195,802

1,109,872

979,502

944,131

1,153,075

938,975

Tangible stockholders' common equity3

818,951

757,285

678,023

639,752

788,289

633,309

PERFORMANCE RATIOS

Return on average assets4

1.01%

1.17%

1.28%

1.30%

1.09%

1.23%

Return on average common equity4

8.08%

9.31%

10.24%

10.56%

8.67%

10.05%

Return on average tangible common equity3,4

11.80%

13.64%

14.80%

15.59%

12.68%

14.90%

Net interest margin4,5

3.43%

3.46%

3.38%

3.50%

3.45%

3.50%

Efficiency ratio6

63.62%

57.99%

56.57%

54.82%

60.92%

57.30%

Non-interest revenue as a % of total revenues2

28.26%

27.47%

27.27%

27.27%

27.88%

27.31%

1 Results are unaudited.

2 Revenues consist of net interest income plus non-interest income, excluding security gains and losses.

3 Average tangible stockholders’ common equity is defined as average common equity less average goodwill and intangibles. See “Non-GAAP Financial Information” below for reconciliation.

4 Annualized, see “Non-GAAP Financial Information” below for reconciliation.

5 On a tax-equivalent basis, assuming a federal income tax rate of 21%.

6 See “Non-GAAP Financial Information” below for reconciliation.


Condensed Consolidated Balance Sheets1

As of

(dollars in thousands, except per share data)

June 30,

March 31,

December 31,

September 30,

June 30,

2019

2019

2018

2018

2018

Assets

Cash and cash equivalents

$

420,207

$

330,407

$

239,973

$

160,652

$

230,730

Investment securities

1,869,143

1,940,519

1,312,514

1,496,948

1,384,807

Loans held for sale

39,607

20,291

25,895

32,617

33,974

Commercial loans

4,759,329

4,744,136

4,060,126

4,141,816

4,076,253

Retail real estate and retail other loans

1,772,797

1,770,945

1,508,302

1,481,925

1,479,034

Portfolio loans

$

6,532,126

$

6,515,081

$

5,568,428

$

5,623,741

$

5,555,287

Allowance for loan losses

(51,375)

(50,915)

(50,648)

(52,743)

(53,305)

Premises and equipment

149,726

147,958

117,672

119,162

119,835

Goodwill and other intangibles

375,327

377,739

300,558

301,963

303,407

Right of use asset

10,426

10,898

-

-

-

Other assets

267,480

245,356

187,965

207,045

200,809

Total assets

$

9,612,667

$

9,537,334

$

7,702,357

$

7,889,385

$

7,775,544

Liabilities & Stockholders' Equity

Non-interest bearing deposits

$

1,766,681

$

1,791,339

$

1,464,700

$

1,438,054

$

1,496,671

Interest-bearing checking, savings, and money market deposits

4,316,730

4,214,809

3,287,618

3,205,232

3,192,735

Time deposits

1,749,811

1,757,078

1,497,003

1,552,283

1,474,506

Total deposits

$

7,833,222

$

7,763,226

$

6,249,321

$

6,195,569

$

6,163,912

Securities sold under agreements to repurchase

190,846

217,077

185,796

255,906

240,109

Short-term borrowings

30,761

30,739

-

200,000

150,000

Long-term debt

185,576

188,221

148,686

148,626

154,125

Junior subordinated debt owed to unconsolidated trusts

71,230

71,192

71,155

71,118

71,081

Lease liability

10,531

10,982

-

-

-

Other liabilities

86,893

69,756

52,435

46,026

39,135

Total liabilities

$

8,409,059

$

8,351,193

$

6,707,393

$

6,917,245

$

6,818,362

Total stockholders' equity

$

1,203,608

$

1,186,141

$

994,964

$

972,140

$

957,182

Total liabilities & stockholders' equity

$

9,612,667

$

9,537,334

$

7,702,357

$

7,889,385

$

7,775,544

Share Data

Book value per common share

$

21.73

$

21.32

$

20.36

$

19.90

$

19.62

Tangible book value per common share2

$

14.95

$

14.53

$

14.21

$

13.72

$

13.40

Ending number of common shares outstanding

55,386,636

55,624,627

48,874,836

48,860,309

48,776,404

1 Results are unaudited except for amounts reported as of December 31, 2018.

2 See “Non-GAAP Financial Information” below for reconciliation, excludes tax effect of other intangible assets.


Condensed Consolidated Statements of Income1

(dollars in thousands, except per share data)

For the

For the

Three Months Ended June 30,

Six Months Ended June 30,

2019

2018

2019

2018

Interest and fees on loans

$

78,031

$

62,290

$

149,820

$

123,250

Interest on investment securities

12,352

7,527

23,612

14,777

Other interest income

1,083

508

2,315

931

Total interest income

$

91,466

$

70,325

$

175,747

$

138,958

Interest on deposits

14,154

6,904

26,654

12,891

Interest on securities sold under agreements to repurchase

627

364

1,210

705

Interest on short-term borrowings

494

465

685

941

Interest on long-term debt

1,871

1,406

3,581

2,763

Interest on junior subordinated debt owed to unconsolidated trusts

892

814

1,806

1,529

Total interest expense

$

18,038

$

9,953

$

33,936

$

18,829

Net interest income

$

73,428

$

60,372

$

141,811

$

120,129

Provision for loan losses

2,517

2,258

4,628

3,266

Net interest income after provision for loan losses

$

70,911

$

58,114

$

137,183

$

116,863

Trust fees

8,318

6,735

16,433

14,249

Commissions and brokers' fees, net

1,170

883

2,084

1,979

Fees for customer services

9,696

7,290

17,793

14,236

Remittance processing

3,717

3,566

7,497

6,958

Mortgage revenue

2,851

1,573

4,796

3,216

Security gains (losses), net

(1,026

)

160

(984

)

160

Other

3,170

2,595

6,222

4,490

Total non-interest income

$

27,896

$

22,802

$

53,841

$

45,288

Salaries, wages and employee benefits

34,268

25,472

66,609

54,291

Net occupancy expense of premises

4,511

3,689

8,713

7,510

Furniture and equipment expense

2,352

1,790

4,447

3,703

Data processing

5,616

4,030

10,017

8,375

Amortization of intangible assets

2,412

1,490

4,506

3,005

Other

18,861

10,834

30,891

21,461

Total non-interest expense

$

68,020

$

47,305

$

125,183

$