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 21, 2009
FIRST BUSEY CORPORATION
(Exact Name of Registrant as Specified in Charter)
|
Nevada |
0-15959 |
37-1078406 | |
|
(State or Other |
(Commission |
(I.R.S. Employer | |
|
201 West Main Street, Urbana, IL |
61801 | ||
|
(Address of Principal Executive Offices) |
(Zip Code) | ||
Registrant’s telephone number, including area code: (217) 365-4516
|
N/A |
|
(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 (see General Instruction A.2. below):
|
|
[ ] |
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 240.13e-4(c)) |
|
ITEM 2.02 |
RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
On Tuesday, April 21, 2009, the Registrant issued a press release disclosing financial results for the quarter ended March 31, 2009. 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.
ITEM 8.01 OTHER EVENTS
The Registrant also announced it will pay a dividend of $0.08 per common share on May 1, 2009 to shareholders of record as of Tuesday, April 28, 2009.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
|
|
(d) |
Exhibits: |
|
|
99.1 |
Press Release, dated April 21, 2009. |
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.
|
Dated: April 22, 2009 |
FIRST BUSEY CORPORATION |
By: /s/ Barbara J. Harrington
|
|
Name: Barbara J. Harrington |
|
|
Title: Chief Financial Officer |
First Busey Announces First Quarter 2009 Results and Change in Dividend
Message from our President & CEO
Urbana, IL - First Busey Corporation’s (Nasdaq: BUSE) consolidated net income for the quarter ended March 31, 2009 was $5.5 million, or $0.15 per fully-diluted common share, compared to net income of $10.0 million, or $0.28 per fully-diluted common share, for the quarter ended March 31, 2008. The decline in net income was primarily due to increased provision for loan losses. We recorded $10.0 million in provision for loan losses in the first quarter of 2009 as compared to $2.2 million in the same period of 2008. Additionally, downward pressure on the net interest margin led to a $3.7 million, pre-tax, decline in net interest income, before provision for loan losses, in the first quarter of 2009 as compared to the same period in 2008. The decrease in net interest income was partially due to the overall decline in asset yields as compared to deposit rates, and interest income lost due to non-accrual loans and loans charged-off.
We implemented a number of cost saving efforts that partially offset the decline in our net interest income. Non-interest expense declined $2.2 million, or 7.9%, in the first quarter of 2009 as compared to the same period in 2008. Many of our cost saving efforts were implemented in the middle of the first quarter of 2009 and are expected to have greater impact going forward. Additionally, we recorded a one-time gain of $2.0 million in other income related to bank owned life insurance in March 2009.
During the first quarter of 2009, net charge-offs were $20.2 million, which resulted in an allowance for loan losses of $88.5 million, or 2.7% of loans at March 31, 2009 compared to $98.7 million, or 3.0% of loans at December 31, 2008. Non-performing loans at March 31, 2009 totaled $121.2 million compared to $84.2 million at December 31, 2008, of which $84.5 million and $61.2 million were in Florida, respectively. Our allowance coverage of non-performing loans was 73% at March 31, 2009 compared to 117% and 68% at December 31, 2008 and September 30, 2008, respectively.
Our banks continue to experience challenges in our loan portfolios brought about by the difficult economic conditions in our markets, primarily in the southwest Florida market. Our Indiana and Illinois markets are also showing signs of economic softening. We expect to see elevated non-performing loans and charge-offs throughout 2009, and expect to continue at least this level of provision expense throughout 2009.
On March 6, 2009, we closed on the sale of $100.0 million of preferred stock to the U.S. Department of the Treasury under the Capital Purchase Program. The Treasury capital allows us to maintain our commitment to our communities through continued lending, while maintaining our capital strength. However, it is a high priority for the company to redeem the Treasury capital as soon as practical.
Given our desire to build capital and the expectation of continued elevated provisions for loan losses, we have taken a careful look at our dividend payout. In January 2009, we paid a dividend of $0.20 per common share. As noted above, we made $0.15 per common share in the first quarter of 2009. As you can deduce, we will not build capital if
we continue to pay out more than we earn. We are therefore reducing our dividend to $0.08 per common share for our May 1, 2009 dividend payment. As we continue, we will review our dividend payout to ensure it is consistent with our capital plan and our earnings. The reduction in our dividend is consistent with our goal of building and maintaining a conservative balance sheet. As we move forward, our priorities are balance sheet strength, profitability and growth . . . in that order.
In the next month, we will unveil The Busey Strategy. The Busey Strategy is built upon fulfilling the Busey Promise to our four pillars -- customers, associates, communities and shareholders. Busey will grow by successfully executing our mission of exceeding the service needs of our customers, investing in our associates and communities and delivering long-term value to you, our shareholders.
In closing, I would like to acknowledge all of our associates for their hard work and dedication over the past 18 months. Our Company is fortunate to have a talented group of associates who are committed to fulfilling the Busey Promise - everyday. While we have been confronted with the serious challenges of the Florida economy during this period, our associates in Florida maintain a positive attitude and tremendous work ethic that enable us to work through these difficult times.
As always, your input and questions are welcome. Thank you for your continued support.
\s\ Van A. Dukeman
Corporate Profile
First Busey Corporation is a $4.5 billion financial holding company headquartered in Urbana, Illinois. First Busey Corporation has two wholly-owned banks with locations in three states. Busey Bank is headquartered in Champaign, Illinois and has forty-five banking centers serving downstate Illinois. Busey Bank has a banking center in Indianapolis, Indiana, and a loan production office in Fort Myers, Florida. As of March 31, 2009, Busey Bank had total assets of $4.0 billion. Busey Bank, N.A. is headquartered in Fort Myers, Florida, with eight banking centers serving southwest Florida. Busey Bank, N.A. had total assets of $422.7 million as of March 31, 2009.
Busey Wealth Management is a wholly-owned subsidiary of First Busey Corporation. Through Busey Trust Company, Busey Wealth Management delivers trust, asset management, retail brokerage and insurance products and services. As of March 31, 2009, Busey Wealth Management had approximately $3.1 billion in assets under care.
First Busey Corporation owns a retail payment processing subsidiary, FirsTech, Inc., which processes over 32 million transactions per year through online bill payments, lockbox processing and walk-in payments through its 4,700 agent locations in 40 states.
Busey provides electronic delivery of financial services through our website, www.busey.com.
Contact:
Barbara J. Harrington, CFO
217-365-4516
|
SELECTED FINANCIAL HIGHLIGHTS |
| ||||||||||||
|
(dollars in thousands, except per share data) |
| ||||||||||||
|
|
|
|
|
Three Months Ended |
|
|
| ||||||
|
|
|
March 31, |
|
December 31, |
|
September 30, |
|
March 31, |
| ||||
|
|
|
2009 |
|
2008 |
|
2008 |
|
2008 |
| ||||
|
EARNINGS & PER SHARE DATA |
|
|
|
|
|
|
|
|
| ||||
|
Net income/(loss)1 |
|
$ |
5,506 |
|
$ |
(61,359 |
) |
$ |
8,817 |
|
$ |
10,004 |
|
|
Revenue2 |
|
|
43,636 |
|
|
41,385 |
|
|
47,311 |
|
|
44,974 |
|
|
Fully—diluted earnings per share |
|
|
0.15 |
|
|
(1.71 |
) |
|
0.25 |
|
|
0.28 |
|
|
Cash dividends paid per share |
|
|
0.20 |
|
|
0.20 |
|
|
0.20 |
|
|
0.20 |
|
|
Net income (loss) by operating segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Busey Bank |
|
$ |
6,584 |
|
$ |
(24,747 |
) |
$ |
8,064 |
|
$ |
11,602 |
|
|
Busey Bank, N.A. |
|
|
(714 |
) |
|
(35,891 |
) |
|
(1,393 |
) |
|
(1,047 |
) |
|
Busey Wealth Management |
|
|
562 |
|
|
457 |
|
|
766 |
|
|
629 |
|
|
FirsTech |
|
|
822 |
|
|
490 |
|
|
705 |
|
|
446 |
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
$ |
4,410,790 |
|
$ |
4,399,387 |
|
$ |
4,301,126 |
|
$ |
4,196,079 |
|
|
Earning assets |
|
|
3,966,968 |
|
|
3,892,209 |
|
|
3,804,205 |
|
|
3,693,418 |
|
|
Deposits |
|
|
3,488,527 |
|
|
3,376,011 |
|
|
3,312,634 |
|
|
3,230,782 |
|
|
Interest—bearing liabilities |
|
|
3,455,020 |
|
|
3,485,063 |
|
|
3,375,151 |
|
|
3,253,477 |
|
|
Stockholders' equity |
|
|
477,327 |
|
|
504,329 |
|
|
513,385 |
|
|
521,701 |
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets3 |
|
|
0.51 |
% |
|
(5.55 |
%) |
|
0.81 |
% |
|
0.96 |
% |
|
Return on average equity3 |
|
|
4.68 |
% |
|
(48.40 |
%) |
|
6.81 |
% |
|
7.71 |
% |
|
Net interest margin3 |
|
|
2.88 |
% |
|
3.04 |
% |
|
3.34 |
% |
|
3.47 |
% |
|
Efficiency ratio4 |
|
|
56.07 |
% |
|
68.31 |
% |
|
54.83 |
% |
|
59.17 |
% |
|
Non—interest revenue as a % of total revenues2 |
|
|
29.67 |
% |
|
33.54 |
% |
|
30.49 |
% |
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross loans |
|
$ |
3,261,440 |
|
$ |
3,257,581 |
|
$ |
3,229,394 |
|
$ |
3,131,878 |
|
|
Allowance for loan losses |
|
|
88,498 |
|
|
98,671 |
|
|
48,674 |
|
|
42,924 |
|
|
Net charge—offs |
|
|
20,173 |
|
|
25,803 |
|
|
7,905 |
|
|
1,786 |
|
|
Allowance for loan losses to loans |
|
|
2.71 |
% |
|
3.03 |
% |
|
1.51 |
% |
|
1.37 |
% |
|
Allowance as a percentage of non—performing loans |
|
|
73.03 |
% |
|
117.20 |
% |
|
68.37 |
% |
|
134.29 |
% |
|
Non—performing loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non—accrual loans |
|
|
105,424 |
|
|
68,347 |
|
|
59,347 |
|
|
26,651 |
|
|
Loans 90+ days past due |
|
|
15,752 |
|
|
15,845 |
|
|
11,847 |
|
|
5,313 |
|
|
Geographically |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Downstate Illinois/ Indiana |
|
|
36,653 |
|
|
22,986 |
|
|
16,041 |
|
|
16,156 |
|
|
Florida |
|
|
84,523 |
|
|
61,206 |
|
|
55,153 |
|
|
15,808 |
|
|
Other non-performing assets
|
|
|
16,956 |
|
|
15,794 |
|
|
4,846 |
|
|
2,476 |
|
|
1 |
Available to common shareholders, net of preferred dividend |
|
2 |
Net of interest expense, excludes security gains. |
|
3 |
Quarterly ratios annualized and calculated on net income available to common stockholders. |
|
4 |
Net of security gains and intangible charges. |
|
Condensed Consolidated Balance Sheets |
|
|
|
|
|
|
| |||
|
(Unaudited, in thousands, except per share data) |
|
March 31, |
|
December 31, |
|
March 31, |
| |||
|
|
|
2009 |
|
2008 |
|
2008 |
| |||
|
Assets |
|
|
|
|
|
|
| |||
|
Cash and due from banks |
|
$ |
138,413 |
|
$ |
190,113 |
|
$ |
123,068 |
|
|
Investment securities |
|
|
708,112 |
|
|
654,130 |
|
|
600,953 |
|
|
Net loans |
|
|
3,172,942 |
|
|
3,158,910 |
|
|
3,088,954 |
|
|
Premises and equipment |
|
|
80,890 |
|
|
81,732 |
|
|
81,269 |
|
|
Goodwill and other intangibles |
|
|
255,765 |
|
|
256,868 |
|
|
279,982 |
|
|
Other assets |
|
|
114,353 |
|
|
118,340 |
|
|
77,596 |
|
|
Total assets |
|
$ |
4,470,475 |
|
$ |
4,460,093 |
|
$ |
4,251,822 |
|
|
Liabilities & Stockholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
Non—interest bearing deposits |
|
$ |
458,332 |
|
$ |
378,007 |
|
$ |
395,115 |
|
|
Interest—bearing deposits |
|
|
3,031,869 |
|
|
3,128,686 |
|
|
2,853,193 |
|
|
Total deposits |
|
$ |
3,490,201 |
|
$ |
3,506,693 |
|
$ |
3,248,308 |
|
|
Federal funds purchased & securities |
|
|
|
|
|
|
|
|
|
|
|
sold under agreements to repurchase |
|
|
143,635 |
|
|
182,980 |
|
|
142,496 |
|
|
Short—term borrowings |
|
|
58,000 |
|
|
83,000 |
|
|
116,000 |
|
|
Long—term debt |
|
|
132,743 |
|
|
134,493 |
|
|
127,910 |
|
|
Junior subordinated debt owed to unconsolidated trusts |
|
|
55,000 |
|
|
55,000 |
|
|
55,000 |
|
|
Other liabilities |
|
|
39,208 |
|
|
43,110 |
|
|
39,487 |
|
|
Total liabilities |
|
$ |
3,918,787 |
|
$ |
4,005,276 |
|
$ |
3,729,201 |
|
|
Total stockholders' equity |
|
$ |
551,688 |
|
$ |
454,817 |
|
$ |
522,621 |
|
|
Total liabilities & stockholders' equity |
|
$ |
4,470,475 |
|
$ |
4,460,093 |
|
$ |
4,251,822 |
|
|
Per Share Data |
|
|
|
|
|
|
|
|
|
|
|
Book value per common share |
|
$ |
12.65 |
|
$ |
12.70 |
|
$ |
14.57 |
|
|
Tangible book value per common share |
|
$ |
5.51 |
|
$ |
5.53 |
|
$ |
6.77 |
|
|
Ending number of common shares outstanding |
|
|
35,816 |
|
|
35,815 |
|
|
35,858 |
|
|
Condensed Consolidated Statements of Income |
|
|
|
|
|
|
| ||
|
(Unaudited, in thousands, except per share data) |
|
|
|
Three Months Ended March 31, |
| ||||
|
|
|
|
|
2009 |
|
2008 |
| ||
|
Interest and fees on loans |
|
|
|
$ |
42,140 |
|
$ |
51,651 |
|
|
Interest on investment securities |
|
|
|
|
6,167 |
|
|
6,801 |
|
|
Other interest income |
|
|
|
|
— |
|
|
105 |
|
|
Total interest income |
|
|
|
$ |
48,307 |
|
$ |
58,557 |
|
|
Interest on deposits |
|
|
|
|
17,817 |
|
|
22,847 |
|
|
Interest on short—term borrowings |
|
|
|
|
843 |
|
|
1,759 |
|
|
Interest on long—term debt |
|
|
|
|
1,274 |
|
|
1,730 |
|
|
Junior subordinated debt owed to unconsolidated trusts |
|
|
|
|
777 |
|
|
959 |
|
|
Total interest expense |
|
|
|
$ |
20,711 |
|
$ |
27,295 |
|
|
Net interest income |
|
|
|
$ |
27,596 |
|
$ |
31,262 |
|
|
Provision for loan losses |
|
|
|
|
10,000 |
|
|
2,150 |
|
|
Net interest income after provision for loan losses |
|
|
|
$ |
17,596 |
|
$ |
29,112 |
|
|
Fees for customer services |
|
|
|
|
3,997 |
|
|
3,851 |
|
|
Trust fees |
|
|
|
|
3,205 |
|
|
3,073 |
|
|
Remittance processing |
|
|
|
|
3,254 |
|
|
2,947 |
|
|
Commissions and brokers' fees |
|
|
|
|
519 |
|
|
702 |
|
|
Gain on sales of loans |
|
|
|
|
2,418 |
|
|
1,160 |
|
|
Net security gains |
|
|
|
|
21 |
|
|
472 |
|
|
Other |
|
|
|
|
2,647 |
|
|
1,979 |
|
|
Total non—interest income |
|
|
|
$ |
16,061 |
|
$ |
14,184 |
|
|
Salaries and wages |
|
|
|
|
10,629 |
|
|
11,512 |
|
|
Employee benefits |
|
|
|
|
2,817 |
|
|
3,136 |
|
|
Net occupancy expense |
|
|
|
|
2,575 |
|
|
2,464 |
|
|
Furniture and equipment expense |
|
|
|
|
1,936 |
|
|
1,917 |
|
|
Data processing expense |
|
|
|
|
1,732 |
|
|
1,688 |
|
|
Amortization expense |
|
|
|
|
1,090 |
|
|
1,129 |
|
|
Other operating expenses |
|
|
|
|
5,072 |
|
|
6,247 |
|
|
Total non—interest expense |
|
|
|
$ |
25,851 |
|
$ |
28,093 |
|
|
Income before income taxes |
|
|
|
$ |
7,806 |
|
$ |
15,203 |
|
|
Income taxes |
|
|
|
|
1,913 |
|
|
5,199 |
|
|
Net income |
|
|
|
$ |
5,893 |
|
$ |
10,004 |
|
|
Preferred stock dividends and TARP warrant accretion |
|
|
|
$ |
387 |
|
$ |
— |
|
|
Income available for common shareholders |
|
|
|
$ |
5,506 |
|
$ |
10,004 |
|
|
Per Share Data |
|
|
|
|
|
|
|
|
|
|
Basic earnings common per share |
|
|
|
$ |
0.15 |
|
$ |
0.28 |
|
|
Fully—diluted earnings common per share |
|
|
|
$ |
0.15 |
|
$ |
0.28 |
|
|
Diluted average common shares outstanding |
|
|
|
|
35,816 |
|
|
36,130 |
|