First Busey Corporation(R) Earnings Release for Quarter Ending March 31, 2003
URBANA, Ill., April 16 /PRNewswire-FirstCall/ -- Douglas C. Mills, Chairman of the Board and Chief Executive Officer, announced today that First Busey Corporation (Nasdaq: BUSE) recorded net income of $4.842 million, or $.35 per diluted share, for the first quarter of 2003, an increase of $152,000 and $.01, respectively, from $4.690 million, or $.34 per diluted share, in the first quarter of 2002. These results represent a return on average assets of 1.38% and a return on average stockholder equity of 16.73% for the first quarter of 2003 compared to 1.48% and 17.85% for the first quarter of 2002.
First Busey Corporation's net interest margin declined 17 basis points to 3.70% for the first quarter of 2003 from 3.87% for the first quarter of 2002. Net interest income was $11.825 million for the three months ending March 31, 2003, which represents an increase of $684,000 or 6.14% over net interest income of $11.141 million for the same period in 2002. Total interest income decreased $95,000 due to the decline in the average yields earned on loans and investments which was virtually offset by growth in the average balance of loans outstanding. The average balance of loans outstanding increased $98 million or 10.03% from $985 million for the first quarter of 2002 to $1.083 billion for the first quarter of 2003.
Interest expense decreased $779,000 or 10.22% to $6.843 million for the first quarter of 2003 compared to $7.622 million for the first quarter of 2002. This decrease is due to declines in the average rate paid on all categories of interest-bearing liabilities, which was partially offset by growth in the average balance of interest-bearing liabilities.
Non-interest income was $6.475 million in the first quarter of 2003 compared to $5.464 million during the first quarter of 2002, an increase of $1.011 million or 18.50%. The increase in non-interest income is due primarily to the growth in gains on the sale of mortgage loans and was partially offset by decreases in revenue from trust and brokerage activities.
Non-interest expense was $10.382 million for the first quarter of 2003 compared to $8.995 million for the first quarter of 2002, an increase of $1.387 million or 15.42%. The increase is due primarily to increases in ORE expenses and valuation adjustments, higher salaries and wages due to higher commissions on mortgage originations, and an increase in data processing expenses.
FINANCIAL HIGHLIGHTS (unaudited)
Three Months Ended
March 31
2003 2002 % Change
(in thousands except per share data)
EARNINGS & PER SHARE DATA
Net Income $4,842 $4,690 3.2%
Basic earnings per share 0.36 0.35 2.9%
Diluted earnings per share 0.35 0.34 2.9%
Dividends per share 0.17 0.15 13.3%
AVERAGE BALANCES
Assets $1,423,030 $1,286,736 10.6%
Investment securities 237,035 201,773 17.5%
Loans 1,083,380 984,610 10.0%
Earnings assets 1,332,042 1,201,484 10.9%
Deposits 1,190,706 1,086,082 9.6%
Stockholders' equity 117,400 106,525 10.2%
PERFORMANCE RATIOS
Return on average assets 1.38% 1.48%
Return on average equity 16.73% 17.85%
Net interest margin 3.70% 3.87%
Efficiency ratio 55.74% 53.34%
LOAN PERFORMANCE
Net credit losses $12 $372
Accruing loans 90+ days past due 4,499 1,267
Nonaccrual loans 990 4,886
Foreclosed assets 5,443 1,597
CONSOLIDATED
BALANCE SHEETS (unaudited)
March 31,
2003 2002
(in thousands)
ASSETS
Cash and due from banks $48,233 $30,309
Federal funds sold 18,500 -
Investment securities 233,498 208,125
Loans 1,099,735 985,959
Less allowance for loan losses 16,048 13,881
Net loans $1,083,687 $972,078
Premises and equipment, net 26,846 28,511
Goodwill and other intangibles 9,741 10,392
Other assets 33,637 27,303
Total assets $1,454,142 $1,276,718
LIABILITIES & STOCKHOLDERS' EQUITY
Non-interest bearing deposits $154,386 $127,621
Interest bearing deposits 1,058,526 946,370
Total deposits $1,212,912 $1,073,991
Fed funds purchased & securities sold
under agreements to repurchase 9,005 7,400
Short-term borrowings - 1,000
Long-term debt 77,759 53,021
Company obligated mandatorily redeemable
preferred securities 25,000 25,000
Other liabilities 10,142 8,683
Total liabilities $1,334,818 $1,169,095
Common stock $6,291 $6,291
Surplus 20,977 20,947
Retained earnings 94,176 84,511
Other comprehensive income 10,267 7,880
Treasury stock (10,546) (9,811)
Unearned ESOP shares (1,759) (2,021)
Deferred compensation for stock grants (82) (174)
Total stockholders' equity $119,324 $107,623
Total liabilities & Stockholders' Equity $1,454,142 $1,276,718
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (unaudited)
Three Months Ended
March 31,
2003 2002
(in thousands, except per share data)
Interest and fees on loans $16,485 $16,404
Interest on investment securities 2,150 2,301
Other interest income 33 58
Total interest income $18,668 $18,763
Interest on deposits $5,424 $6,265
Interest on short-term borrowings 45 139
Interest on long-term debt 1,374 1,218
Total interest expense $6,843 $7,622
Provision for loans losses 600 565
Net interest income after provision $11,225 $10,576
Trust fees $1,107 $1,250
Commissions and brokers' fees 465 541
Fees for customer services 2,143 1,978
Security gains, net 183 274
Other 2,577 1,421
Total non-interest income $6,475 $5,464
Salaries and employee benefits $5,651 $5,229
Net occupancy expense of bank premises 815 775
Furniture and equipment expenses 682 832
Other operating expenses 3,234 2,159
Total non-interest expense $10,382 $8,995
Income before income taxes $7,318 $7,045
Income taxes 2,476 2,355
Net income $4,842 $4,690
COMMON SHARE DATA
Book value $8.75 $7.87
Tangible book value $8.03 $7.11
Average number of shares outstanding 13,665 13,657
Endings number of shares outstanding 13,640 13,669
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 March 31, 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 $85 million as of March 31, 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 276,212 shares have already been purchased. BUSE closed on March 31, 2003 at $23.40, an increase of 1.47% from the closing price of $23.06 on December 31, 2002.
SOURCE First Busey Corporation
/CONTACT: Barbara J. Kuhl, President & COO of First Busey Corporation,
+1-217-365-4513/
/Web site: http://www.busey.com /
(BUSE)
CO: First Busey Corporation
ST: Illinois
IN: FIN
SU: ERN
04/16/200318:41 EDThttp://www.prnewswire.com