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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) April 18, 2006
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.)
201 W. Main St., Urbana, IL 61801
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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, April 18, 2006, the Registrant issued a press release disclosing
financial results for the quarter ended March 31, 2006. 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: April 18, 2006 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 April 18, 2006.
Exhibit 99.1
FIRST BUSEY CORPORATION EARNINGS RELEASE FOR QUARTER ENDED MARCH 31, 2006
URBANA, ILL., APRIL 18 /PRNEWSWIRE-FIRSTCALL/ --
FINANCIAL HIGHLIGHTS
Net income increased $331,000 or 5.1% to $6,867,000 during the quarter
ended March 31, 2006, compared to $6,536,000 during the first quarter of 2005.
The growth in earnings is due to increases in net interest income and
non-interest income which were partially offset by an increase in non-interest
expenses. Earnings per share on a fully-diluted basis were $0.32 during the
first quarter of 2006, reflecting no change from earnings per share of $0.32
during the first quarter of 2005.
Net interest margin for the first quarter of 2006 was 3.70%, compared to
3.64% during the first quarter of 2005. Net interest income increased $2,237,000
or 13.8% to $18,498,000 during the first quarter of 2006, compared to
$16,261,000 in the comparable quarter in 2005. Interest income increased
$7,597,000 to $33,160,000 during the first quarter of 2006, compared to
$25,563,000 during the comparable period in 2005, due primarily to loan growth
combined with higher yields on investment securities and outstanding loans.
Interest expense increased $5,360,000 or 57.6% to $14,662,000 during the first
quarter of 2006, compared to $9,302,000 during the comparable period in 2005,
due primarily to increased deposit and borrowing costs combined with growth in
deposits and long-term debt. The increase in long-term debt is associated
primarily with the July, 2005, acquisition of Tarpon Coast.
Provision for loan losses was $400,000 during the first quarter of 2006
compared to $690,000 during the comparable period in 2005. As a percentage of
total outstanding loans, the allowance for loan losses was 1.33% as of March 31,
2006 and 1.31% as of March 31, 2005. The Corporation recognized $96,000 in net
credit losses during the first quarter of 2006 compared to $126,000 during the
comparable period in 2005.
Non-interest income increased $618,000 or 11.1% to $6,173,000 during the
first quarter of 2006 from $5,555,000 during the first quarter of 2005. Growth
in non-interest income is due primarily to growth in service charge income,
brokerage commissions, gains on the sale of real estate loans, and trust fees.
During the first quarter of 2006 the Corporation recognized net gains of
$224,000 from the sale of securities compared to $162,000 during the first
quarter in 2005.
Non-interest expense increased $2,894,000 or 25.7% to $14,143,000 during
the first quarter of 2006 compared to $11,249,000 during the first quarter of
2005, due primarily to increased operating costs and amortization expense
associated with growth in the Florida market. The Corporation adopted Statement
of Financial Accounting Standard 123R, Share Based Payment, on January 1, 2006.
Adoption of this standard did not have a material impact on the Corporation's
first quarter operating results.
FINANCIAL SUMMARY
Three Months Ended
March 31,
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2006 2005
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(in thousands, except
per share data)
Earnings & Per Share Data
Net income $ 6,867 $ 6,536
Basic earnings per share 0.32 0.32
Fully diluted earnings per share 0.32 0.32
Dividends per share 0.16 0.14
Average Balances
Assets $ 2,255,128 $ 1,982,410
Investment securities 331,980 328,204
Loans 1,748,415 1,491,894
Earning assets 2,086,000 1,847,684
Deposits 1,795,128 1,577,835
Stockholders' equity 170,350 138,305
Performance Ratios
Return on average assets 1.23% 1.34%
Return on average equity 16.35% 19.17%
Net interest margin 3.70% 3.64%
Efficiency ratio 55.25% 50.26%
Loan Performance
Net credit losses $ 96 $ 126
Accruing loans 90+ days past due 865 1,830
Non-accrual loans 4,769 1,974
Foreclosed assets 258 4,191
March 31, 2006
NASDAQ symbol BUSE
Closing price $21.10
Price/earnings ratio 14.86X
Price/book ratio 264%
52-week price range $18.07 - $21.25
Book value per share $7.99
YTD dividend per share $0.16
Common shares outstanding 21.5 million
CONSOLIDATED BALANCE SHEETS (unaudited)
March 31,
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2006 2005
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(in thousands except
per share data)
Asset
Cash and due from banks $ 48,983 $ 48,403
Federal funds sold 14,500 21,300
Investment securities 330,216 317,867
Loans 1,760,498 1,507,949
Less allowance for loan losses (23,494) (19,781)
Net loans $ 1,737,004 $ 1,488,168
Premises and equipment, net 39,863 27,245
Goodwill and other intangibles 58,969 35,442
Other assets 43,531 42,705
Total assets $ 2,273,066 $ 1,981,130
Liabilities & Stockholders' Equity
Non-interest bearing deposit $ 245,160 $ 197,371
Interest-bearing deposits 1,580,567 1,391,931
Total deposits $ 1,825,727 $ 1,589,302
Federal funds purchased & securities sold
under agreements to repurchase 49,724 43,075
Short-term borrowings - 10,000
Long-term debt 159,883 147,851
Junior subordinated debt owed to
unconsolidated trusts 50,000 40,000
Other liabilities 16,179 12,054
Total liabilities $ 2,101,513 $ 1,842,282
Common stock $ 22 $ 6,291
Common stock to be issued 326 -
Surplus 44,973 21,767
Retained earnings 133,175 118,030
Other comprehensive income 6,159 6,965
Treasury stock (11,041) (11,737)
Unearned ESOP shares (2,058) (2,456)
Deferred compensation for stock grants (3) (12)
Total stockholders' equity $ 171,553 $ 138,848
Total liabilities & stockholders' equity $ 2,273,066 $ 1,981,130
Per Share Data
Book value per share $ 7.99 $ 6.76
Tangible book value per share $ 5.24 $ 5.03
Ending number of shares outstanding 21,477,532 20,537,651
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three Months Ended
March 31,
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2006 2005
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(in thousands, except
common share data)
Interest and fees on loans $ 29,982 $ 22,862
Interest on investment securities 3,125 2,541
Other interest income 53 160
Total interest income $ 33,160 $ 25,563
Interest on deposits $ 11,331 $ 6,775
Interest on short-term borrowings 488 229
Interest on long-term debt 1,850 1,541
Junior subordinated debt owed to
unconsolidated trusts 993 757
Total interest expense $ 14,662 $ 9,302
Net interest income $ 18,498 $ 16,261
Provision for loans losses 400 690
Net interest income after provision $ 18,098 $ 15,571
Trust fees $ 1,516 $ 1,440
Commissions and brokers' fees 669 526
Fees for customer services 2,536 2,333
Gain on sale of loans 534 423
Net security gains 224 162
Other 694 671
Total non-interest income $ 6,173 $ 5,555
Salaries and wages $ 6,497 $ 5,197
Employee benefits 1,503 1,204
Net occupancy expense 1,247 947
Furniture and equipment expense 800 683
Data processing expense 404 489
Amortization expense 352 195
Other operating expenses 3,340 2,534
Total non-interest expense $ 14,143 $ 11,249
Income before income taxes $ 10,128 $ 9,877
Income taxes 3,261 3,341
Net Income $ 6,867 $ 6,536
Common Share Data
Basic earnings per share $ 0.32 $ 0.32
Fully-diluted earnings per share $ 0.32 $ 0.32
Average shares outstanding 21,460,308 20,584,835
CORPORATE PROFILE
First Busey Corporation (Nasdaq: BUSE) 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 twenty-one banking centers serving Champaign,
McLean, Ford, Peoria, and Tazewell Counties in Illinois. Busey Bank also has a
banking center in Indianapolis, Indiana, and a loan production office in Ft.
Myers, Florida. On March 31, 2006, Busey Bank had total assets of $1.8 billion.
On July 29, 2005, First Busey Corporation acquired Tarpon Coast Bancorp, Inc.
and its primary subsidiary, Tarpon Coast National Bank, Port Charlotte, Florida.
Busey Bank Florida and Tarpon Coast National Bank merged at the close of
business on February 17, 2006, and the resultant bank is Busey Bank, N.A. Busey
Bank N.A. is a federally-chartered bank headquartered in Port Charlotte,
Florida, with seven banking centers serving Lee, Charlotte, and Sarasota
Counties in Southwest Florida. Busey Bank N.A. had total assets of $422 million
as of March 31, 2006. 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. is a provider of personal insurance products. Busey Investment
Group has approximately $2.3 billion in assets under care.
First Busey Corporation's common stock is traded on the Nasdaq Stock
Exchange 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.
SOURCE First Busey Corporation
-0- 04/18/2006
/CONTACT: Barbara J. Kuhl, President & COO of First Busey Corporation,
+1-217-365-4513/
/Web site: http://www.busey.com/
(BUSE)