CHAMPAIGN, Ill., Oct. 22, 2019 (GLOBE NEWSWIRE) -- (BUSE)
Message from our President & CEO
Positive advances in the third quarter of 2019 compared to the second quarter of 2019
- Net income and adjusted net income1 increased to $24.8 million and $30.5 million, respectively
- Earnings per share of $0.45 and adjusted earnings per share1 of $0.55 compared to $0.43 and $0.53, respectively
- Portfolio loans of $6.67 billion as compared to $6.53 billion, an annualized increase of 8.3%
- Tangible book value per common share of $15.12 as compared to $14.95
First Busey Corporation’s (“First Busey” or the “Company”) net income for the third quarter of 2019 was $24.8 million, or $0.45 per diluted common share, as compared to $24.1 million, or $0.43 per diluted common share, for the second quarter of 2019 and $26.9 million, or $0.55 per diluted common share, for the third quarter of 2018. Adjusted net income1 for the third quarter of 2019 was $30.5 million, or $0.55 per diluted common share, as compared to $29.5 million, or $0.53 per diluted common share, for the second quarter of 2019 and $27.0 million, or $0.55 per diluted common share, for the third quarter 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 third quarter of 2019 were $7.0 million of expenses related to acquisitions and $0.7 million of expenses related to other restructuring costs. 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.
Year-to-date net income through September 30, 2019 was $74.4 million, or $1.35 per diluted common share, compared to net income of $73.6 million, or $1.50 per diluted common share, for the comparable period of 2018. Year-to-date adjusted net income1 for the first nine months of 2019 was $86.6 million, or $1.57 per diluted common share, compared to $77.5 million or $1.58 per diluted common share for the first nine months of 2018.
For the third quarter of 2019, annualized return on average assets and annualized return on average tangible common equity were 1.02% and 11.79%, respectively. Based on adjusted net income1, annualized return on average assets was 1.25% and annualized return on average tangible common equity was 14.50% for the third quarter of 2019. For the nine months ended September 30, 2019, annualized return on average assets and annualized return on average tangible common equity were 1.06% and 12.37%, respectively. Based on adjusted net income1, annualized return on average assets was 1.24% and annualized return on average tangible common equity was 14.41% for the nine months ended September 30, 2019.
On January 31, 2019, the Company completed its acquisition of The Banc Ed Corp. (“Banc Ed”), the holding company for TheBANK of Edwardsville (“TheBANK”). First Busey operated TheBANK as a separate subsidiary from the completion of the acquisition until October 4, 2019, when it was merged with and into Busey Bank. At that time, TheBANK’s banking centers became banking centers of Busey Bank. When we completed the Banc Ed acquisition, we reset the baseline for the future financial performance of First Busey in a multitude of positive ways. With TheBANK now merged and integrated, we expect to see the full contribution and synergies of TheBANK reflected in the Company’s financial performance in the quarters ahead.
1 A Non-GAAP financial measure. See “Non-GAAP Financial Information” below for reconciliation.
On October 4, 2019, in addition to TheBANK being merged into Busey Bank, the Company partnered with a new core provider. The core conversion positions the combined organization for future growth. Strategic process improvements and investments in technology platforms will allow the Company to serve customers more efficiently and effectively for years to come.
On August 31, 2019, the Company completed the previously announced merger of Busey Bank with Investors’ Security Trust Company (“IST”), a Fort Myers, Florida wealth management firm, which had $471.1 million assets under care. Through this transaction, Busey Bank and IST broaden the expertise and raise the 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.
In addition to the successful integration of these acquisitions, we are pleased to report net organic loan growth of $137.3 million in the third quarter, with total portfolio loans increasing to $6.67 billion at September 30, 2019 from $6.53 billion at June 30, 2019. This is the result of focused initiatives and effort on the part of our associates across our markets and was accomplished while maintaining our conservative credit principles. As of September 30, 2019, the ratio of non-performing loans to total loans declined to 0.50%, while the ratio of allowance to non-performing loans increased to 160.00%.
Our goal of being a strong community bank for the communities we serve begins with outstanding associates. The Company is honored to be named among the 2019 Best Banks to Work For by American Banker, the 2019 Best-In-State Banks for Illinois by Forbes and Statista, the 2019 Best Places to Work in Illinois by Best Companies Group and Daily Herald Business Ledger, the 2019 Best Companies to Work For in Florida by Florida Trend magazine, the 2019 Best Place to Work in Indiana by Best Companies Group and the Indiana Chamber of Commerce and the 2019 Best Places to Work in St. Louis by Quantum Workplace and St. Louis Business Journal.
We are pleased with our third quarter 2019 operating results and feel confident that we are well positioned for growth as we move into the final quarter of 2019 and into 2020.
/s/ Van A. Dukeman
President & Chief Executive Officer
First Busey Corporation
SELECTED FINANCIAL HIGHLIGHTS1
|(dollars in thousands, except per share data)||As of and for the||As of and for the|
|Three Months Ended||Nine Months Ended|
|September 30,||June 30,||December 31,||September 30,||September 30,||September 30,|
|EARNINGS & PER SHARE DATA|
|Diluted earnings per share||0.45||0.43||0.51||0.55||1.35||1.50|
|Cash dividends paid per share||0.21||0.21||0.20||0.20||0.63||0.60|
|Net income by operating segment|
|Cash and cash equivalents||$||515,965||$||328,414||$||272,811||$||238,000||$||391,029||$||227,806|
|Loans held for sale||42,418||25,143||23,380||28,661||28,326||31,785|
|Non-interest bearing deposits||1,780,645||1,747,746||1,486,977||1,492,709||1,715,701||1,494,016|
|Securities sold under agreements to repurchase||184,637||193,621||210,416||234,729||194,189||242,268|
|Stockholders' common equity||1,212,833||1,195,802||979,502||961,824||1,173,213||946,675|
|Tangible stockholders' common |
|Return on average assets4||1.02||%||1.01||%||1.28||%||1.37||%||1.06||%||1.28|
|Return on average common equity4||8.12||%||8.08||%||10.24||%||11.08||%||8.48||%||10.40|
|Return on average tangible common |
|Net interest margin4,5||3.35||%||3.43||%||3.38||%||3.41||%||3.42||%||3.47|
|Non-interest revenue as a % of total revenues2||29.38||%||28.26||%||27.27||%||26.45||%||28.40||%||27.02|
|Adjusted net income6||$||30,535||$||29,498||$||25,958||$||27,006||$||86,647||$||77,518|
|Adjusted diluted earnings per share6||0.55||0.53||0.53||0.55||1.57||1.58|
|Adjusted return on average assets4||1.25||%||1.24||%||1.31||%||1.37||%||1.24||%||1.34|
|Adjusted return on average tangible |
|Adjusted net interest margin4,5||3.22||%||3.27||%||3.27||%||3.29||%||3.27||%||3.31|
|Adjusted efficiency ratio6||55.42||%||56.55||%||55.49||%||53.26||%||56.12||%||54.16|
|1 Results are unaudited.|
|2 Revenues consist of net interest income plus non-interest income, excluding security gains and losses.|
|3 Average tangible stockholders’ common equity is defined as average common equity less average goodwill and intangibles. See “Non-GAAP |
Financial Information” below for reconciliation.
|4 Annualized, see “Non-GAAP Financial Information” below for reconciliation.|
|5 On a tax-equivalent basis, assuming a federal income tax rate of 21%.|
|6 See “Non-GAAP Financial Information” below for reconciliation.|
Condensed Consolidated Balance Sheets1
|(dollars in thousands, except per share data)||September 30,||June 30,||March 31,||December 31,||September 30,|
|Cash and cash equivalents||$||525,457||$||420,207||$||330,407||$||239,973||$||160,652|
|Loans held for sale||70,345||39,607||20,291||25,895||32,617|
|Retail real estate and retail other loans||1,768,985||1,772,797||1,770,945||1,508,302||1,481,925|
|Allowance for loan losses||(52,965||)||(51,375||)||(50,915||)||(50,648||)||(52,743||)|
|Premises and equipment||153,641||149,726||147,958||117,672||119,162|
|Goodwill and other intangibles||381,323||375,327||377,739||300,558||301,963|
|Right of use asset||9,979||10,426||10,898||-||-|
|Liabilities & Stockholders' Equity|
|Non-interest bearing deposits||$||1,779,490||$||1,766,681||$||1,791,339||$||1,464,700||$||1,438,054|
|Interest-bearing checking, savings, and money |
|Securities sold under agreements to |
|Junior subordinated debt owed to |
|Total stockholders' equity||$||1,215,981||$||1,203,608||$||1,186,141||$||994,964||$||972,140|
|Total liabilities & stockholders' equity||$||9,753,760||$||9,612,667||$||9,537,334||$||7,702,357||$||7,889,385|
|Book value per common share||$||22.03||$||21.73||$||21.32||$||20.36||$||19.90|
|Tangible book value per common share2||$||15.12||$||14.95||$||14.53||$||14.21||$||13.72|
|Ending number of common shares outstanding||55,197,277||55,386,636||55,624,627||48,874,836||48,860,309|
|1 Results are unaudited except for amounts reported as of December 31, 2018.|
|2 See “Non-GAAP Financial Information” below for reconciliation, excludes tax effect of other intangible assets.|
Condensed Consolidated Statements of Income1
|(dollars in thousands, except per share data)|
|For the||For the|
|Three Months Ended September 30,||Nine Months Ended September 30,|
|Interest and fees on loans||$||78,083||$||63,589||$||227,903||$||186,839|
|Interest on investment securities||11,427||8,523||35,039||23,300|
|Other interest income||2,181||649||4,496||1,580|
|Total interest income||$||91,691||$||72,761||$||267,438||$||211,719|
|Interest on deposits||14,753||8,946||41,407||21,837|
|Interest on securities sold under agreements to |
|Interest on short-term borrowings||200||324||885||1,265|
|Interest on long-term debt||1,831||1,437||5,412||4,200|
|Interest on junior subordinated debt owed to unconsolidated trusts||852||854||2,658||2,383|
|Total interest expense||$||18,215||$||11,987||$||52,151||$||30,816|
|Net interest income||$||73,476||$||60,774||$||215,287||$||180,903|
|Provision for loan losses||3,411||758||8,039||4,024|
|Net interest income after provision for loan losses||$||70,065||$||60,016||$||207,248||$||176,879|
|Commissions and brokers' fees, net||1,132||881||3,216||2,860|
|Fees for customer services||9,842||7,340||27,635||21,576|