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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) January 18, 2005
FIRST BUSEY CORPORATION
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(Exact name of registrant as specified in its charter)
Nevada 0-15959 37-1078406
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (217) 365-4513
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(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13a-4(c))
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ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On Tuesday, January 18, 2005, the Registrant issued a press release disclosing
financial results for the quarter ended December 31, 2004. The press release is
made part of this Form and is attached as Exhibit 99.1.
The press release made a part of this Form includes forward looking statements
that are intended to be covered by the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward looking statements
include but are not limited to comments with respect to the objectives and
strategies, financial condition, results of operations and business of the
Registrant.
These forward looking statements involve numerous assumptions, inherent risks
and uncertainties, both general and specific, and the risk that predictions and
other forward looking statements will not be achieved. The Registrant cautions
you not to place undue reliance on these forward looking statements as a number
of important factors could cause actual future results to differ materially from
the plans, objectives, expectations, estimates and intentions expressed in such
forward looking statements.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: January 18, 2005 FIRST BUSEY CORPORATION
By: /s/ Barbara J. Harrington
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Name: Barbara J. Harrington
Title: Chief Financial Officer
EXHIBIT INDEX
99.1 Press Release, dated January 18, 2005.
Exhibit 99.1
First Busey Corporation Fourth Quarter Earnings Release
URBANA, Ill., Jan. 18 /PRNewswire-FirstCall/ --
FINANCIAL HIGHLIGHTS
-- Douglas C. Mills, Chairman of the Board and CEO, announced that 2004
was a record year for First Busey Corporation. "I am extremely
pleased with the performance of "BUSE" stock which closed the year
at $20.87. This represents an increase of 15.9%. We also increased
the dividend 13.3% from $.45 to $.51. This results in a total return
for BUSE in 2004 of 18.8%." Below is a chart comparing the total
return of BUSE to the S&P 500 and the NASDAQ Bank Index.
NASDAQ
BUSE S&P 500 Bank Index
-------- -------- ----------
1 Year 18.8% 10.9% 11.2%
3 Year 16.3% 3.5% 14.7%
5 Year 9.3% -2.3% 13.8%
10 Year 17.4% 12.0% 16.5%
Other highlights for the fourth quarter and for the year are:
-- Net income increased $1,413,000 or 32.4% to $5,769,000 for the
quarter ended December 31, 2004, as compared to $4,356,000 for the
comparable period in 2003. For the quarter ending December 31, 2004,
earnings per share on a fully-diluted basis were $0.28, an increase
of $.07 or 33.3% from $0.21 for the comparable period in 2003. On a
year-to-date basis, net income increased $2,590,000 or 13.0% to
$22,454,000 for the year ended December 31, 2004 as compared to
$19,864,000 for the year ended December 31, 2003. For the year ended
December 31, 2004, earnings per share on a fully-diluted basis were
$1.09, an increase of $0.12 or 12.4% from $0.97 for the year ended
December 31, 2003.
-- During the fourth quarter of 2004, First Busey recognized $585,000
in provision for loan losses compared to the fourth quarter of 2003
when $1,680,000 in provision for loan losses was recognized. The
provision was higher during the fourth quarter of 2003 due to higher
net charge- offs activity and to establish a specific reserve for
one large commercial credit customer.
-- Net interest income increased $3,125,000 or 25.5% to $15,378,000 for
the quarter ended December 31, 2004, compared to $12,253,000 during
the fourth quarter of 2003. Interest income increased $6,210,000 or
34.0% during the fourth quarter of 2004 compared to the same period
in 2003 due primarily to loan growth. Interest expense increased
$3,085,000 or 51.4% due to growth in the average balances of
deposits and long-term debt. On June 1, 2004, First Busey completed
the acquisition of First Capital Bank in Peoria, IL. The increase in
net interest income is due to the addition of First Capital Bank
combined with additional growth from Busey Bank and Busey Bank
Florida.
-- Non-interest income increased $420,000 or 7.5% to $6,041,000 during
the fourth quarter of 2004 compared to $5,621,000 during the same
period in 2003. Increased trust fee revenue, service charge income,
and gains on the sale of real estate loans offset lower security
gains.
-- Non-interest expense increased $2,692,000 or 28.1% to $12,272,000
during the fourth quarter of 2004 compared to $9,580,000 during the
same period in 2003. Salary and benefit costs were higher in the
fourth quarter of 2004 compared to the same period of 2003 due to
the addition of First Capital Bank. Other operating expenses were
also higher in the fourth quarter of 2004 compared to the fourth
quarter of 2003 due to higher expenses related to property held in
other real estate owned. During the fourth quarter of 2004, First
Busey reduced the carrying value of a hotel property held in other
real estate owned by $700,000. During the fourth quarter of 2003,
First Busey recognized $294,000 in similar valuation adjustments.
FINANCIAL SUMMARY
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
(in thousands, except per share data)
Earnings &
Per Share Data
Net income $ 5,769 $ 4,356 $ 22,454 $ 19,864
Basic earnings per share 0.28 0.21 1.10 0.97
Fully-diluted earnings
per share 0.28 0.21 1.09 0.97
Dividends per share 0.13 0.11 0.51 0.45
Average Balances
Assets $ 1,986,325 $ 1,509,049 $ 1,756,846 $ 1,467,959
Investment
securities 345,444 236,855 265,514 242,238
Loans 1,459,995 1,160,352 1,355,487 1,118,667
Earning assets 1,850,868 1,414,246 1,640,204 1,376,195
Deposits 1,575,532 1,250,795 1,404,618 1,220,292
Stockholders' equity 136,062 125,150 130,356 121,600
Performance Ratios
Return on
average assets 1.15% 1.15% 1.28% 1.35%
Return on
average equity 16.82% 13.81% 17.23% 16.34%
Net interest margin 3.37% 3.52% 3.49% 3.60%
Efficiency ratio 56.20% 54.06% 53.33% 54.04%
Loan Performance
Net credit losses $ 71 $ 2,183 $ 1,986 $ 2,290
Accruing loans 90+
days past due 2,141 581
Non-accrual loans 1,523 2,638
Foreclosed assets 4,235 4,791
CONSOLIDATED BALANCE SHEETS
(unaudited)
December 31,
---------------------------
2004 2003
------------ ------------
(in thousands, except
per share data)
Assets
Cash and due from banks $ 47,991 $ 52,397
Federal funds sold 3,100 -
Investment securities 352,256 224,733
Loans 1,475,900 1,192,396
Less allowance for loan losses (19,217) (16,228)
Net loans 1,456,683 1,176,168
Premises and equipment, net 26,295 22,223
Goodwill and other intangibles 35,637 9,480
Other assets 42,479 37,083
Total assets $ 1,964,441 $ 1,522,084
Liabilities & Stockholders' Equity
Non-interest bearing deposits $ 213,921 $ 160,578
Interest-bearing deposits 1,344,901 1,096,017
Total deposits $ 1,558,822 $ 1,256,595
Federal funds purchased & securities
sold under agreements to repurchase 41,558 16,000
Short-term borrowings 11,250 -
Long-term debt 165,374 92,853
Junior subordinated debt owed to
unconsolidated trust 40,000 25,000
Other liabilities 8,565 6,459
Total liabilities $ 1,825,569 $ 1,396,907
Common stock $ 6,291 $ 6,291
Surplus 21,696 20,968
Retained earnings 114,359 102,288
Other comprehensive income 9,170 9,191
Treasury stock (10,173) (10,667)
Unearned ESOP shares (2,456) (2,853)
Deferred compensation for stock grants (15) (41)
Total stockholders' equity $ 138,872 $ 125,177
Total liabilities & stockholders' equity $ 1,964,441 $ 1,522,084
Per Share Data
Book value per share $ 6.74 $ 6.10
Tangible book value per share $ 5.01 $ 5.64
Ending number of shares outstanding 20,608,151 20,516,216
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
--------------------------- ---------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
(in thousands, except per share data)
Interest and fees
on loans $ 21,695 $ 16,378 $ 77,499 $ 65,603
Interest on
investment securities 2,596 1,847 8,148 8,097
Other interest income 179 35 272 149
Total interest income $ 24,470 $ 18,260 $ 85,919 $ 73,849
Interest on deposits $ 6,578 $ 4,452 $ 21,436 $ 19,644
Interest on short-term
borrowings 205 19 557 146
Interest on long-term
debt 1,569 974 5,372 3,578
Junior subordinated debt
owed to unconsolidated
trust 740 562 2,676 2,250
Total interest expense $ 9,092 $ 6,007 $ 30,041 $ 25,618
Net interest income $ 15,378 $ 12,253 $ 55,878 $ 48,231
Provision for loans
losses 585 1,680 2,905 3,058
Net interest income
after provision $ 14,793 $ 10,573 $ 52,973 $ 45,173
Trust fees $ 1,337 $ 1,148 $ 5,339 $ 4,615
Commissions and
brokers' fees 561 562 2,335 2,103
Fees for customer
services 2,523 2,295 9,876 9,155
Gain on sale of loans 705 350 2,689 6,183
Security gains, net 283 653 1,373 975
Other 632 613 2,178 1,654
Total non-interest
income $ 6,041 $ 5,621 $ 23,790 $ 24,685
Salaries and employee
benefits $ 6,313 $ 4,911 $ 23,826 $ 22,314
Net occupancy expense 1,023 832 3,921 3,158
Furniture and
equipment expenses 612 547 2,384 2,446
Other operating
expenses 4,324 3,290 12,954 12,051
Total non-interest
expense $ 12,272 $ 9,580 $ 43,085 $ 39,969
Income before income
taxes $ 8,562 $ 6,614 $ 33,678 $ 29,889
Income taxes 2,793 2,258 11,224 10,025
Net Income $ 5,769 $ 4,356 $ 22,454 $ 19,864
Per Share Data*
Basic earnings
per share $ 0.28 $ 0.21 $ 1.10 $ 0.97
Fully-diluted
earnings per share $ 0.28 $ 0.21 $ 1.09 $ 0.97
Average number of
shares
outstanding 20,564,049 20,549,905 20,511,423 20,534,340
* Share and per share data have been adjusted to effect a
three-for-two common stock split effective August 3, 2004, as if it
had occurred on January 1, 2003.
CORPORATE PROFILE
First Busey Corporation (Nasdaq: BUSE) is a financial holding company
headquartered in Urbana, Illinois. First Busey Corporation has three
wholly-owned banking subsidiaries with locations in three states. Busey Bank is
headquartered in Urbana, Illinois and has seventeen banking centers serving
Champaign, McLean and Ford Counties in Illinois. Busey Bank also has a banking
center in Indianapolis, Indiana and loan production offices in Ft. Myers and
Naples, Florida. Total assets of Busey Bank were $1.5 billion as of December 31,
2004. Busey Bank Florida is a federal thrift headquartered in Ft. Myers, Florida
with two additional banking centers in Cape Coral, Florida. Total assets of
Busey Bank Florida were $176 million as of December 31, 2004. On June 1, 2004,
First Busey Corporation completed its acquisition of First Capital Bank in
Peoria, Illinois. First Capital Bank has three banking centers in Peoria and one
in Pekin, Illinois. Total assets of First Capital Bank as of December 31, 2004
were $250 million. Busey provides electronic delivery of financial services
through Busey e-bank, http://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. First Busey Securities, Inc.
(member NASD/SIPC) is a full-service broker/dealer subsidiary. Busey Insurance
Services, Inc. provides personal insurance products and specializes in long-term
healthcare insurance. Busey Investment Group has approximately $2 billion in
assets under care.
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 750,000 shares of
stock. BUSE closed on December 31, 2004 at $20.87, an increase of 15.9% from the
closing price of $18.00* on December 31, 2003.
SOURCE First Busey Corporation
-0- 01/18/2005
/CONTACT: Barbara J. Kuhl, President & COO of First Busey Corporation,
+1-217-365-4513/
/First Call Analyst: /
/FCMN Contact: /
/Web site: http://www.busey.com /