1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 1O-K/A [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 1995 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-15950 FIRST BUSEY CORPORATION (Exact name of registrant as specified in its Charter) Nevada 37-1078406 (State or other jurisdiction of I.R.S. Employer incorporation or organization) Identification No.) 201 W. Main Street Urbana, Illinois 61801 (Address of principal executive offices) (Zip Code) (217) 384-4513 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Class A Common Stock, without par value Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes _X_ No __ Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X] As of February 29, 1996, the aggregate market value of the Class A Common Stock held by non-affiliates was $67,681,460. Class B Common Stock is held by affiliates. The market value of the Class A Common Stock is based on the "Bid" price for such stock as reported in the National Quotation Bureau's "Pink Sheets" on that date. Affiliates include all directors, executive officers and beneficial holders owning 5% or more of the shares. Indicate the number of shares outstanding of each of the Registrant's classes of common stock, as of the latest practicable date. Class Outstanding at February 29, 1996 - - ---------------------------------------- --------------------------------- Class A Common Stock, without par value 3,785,016 Class B Common Stock, without par value 750,000 DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive Proxy Statement dated March 18, 1996 for First Busey Corporation's Annual Meeting of Stockholders to be held on April 16, 1996 (the "1996 Proxy Statement") are incorporated by reference into Part III. Page 1 of 52 pages
2 Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned, thereunto duly authorized. FIRST BUSEY CORPORATION _______________________ (Registrant) By _______________________________ Barbara J. Kuhl Executive Vice President and Corporate Secretary Dated: April 26, 1996 2
3 Part IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K EXHIBITS Exhibit Description of Exhibit Sequentially Number Numbered Page - - ------- ---------------------------------------------------------------- ------------- 3.1 Certificate of Incorporation of First Busey Corporation (filed as Appendix B to First Busey's definitive proxy statement filed with the Commission on April 5, 1993 (Commission File No. 0-15950), and incorporated herein by reference) 3.2 By-Laws of First Busey Corporation (filed as Appendix C to First Busey's definitive proxy statement filed with the Commission on April 5, 1993 (Commission File No. 0-15950), and incorporated herein by reference) 10.1* First Busey Corporation 1993 Restricted Stock Award Plan (filed as Appendix E to First Busey's definitive proxy statement filed with the Commission on April 5, 1993 (Commission File No. 0-15950), and incorporated herein by reference) 10.2* First Busey Corporation 1986 Stock Option Plan (filed as Exhibit 10.2 to First Busey's Registration Statement on Form S-1 (Registration No. 33-13973), and incorporated herein by reference) 10.3* First Busey Corporation Profit Sharing Plan and Trust (filed as Exhibit 10.3 to First Busey's Registration Statement on Form S-1 (Registration No. 33-13973), and incorporated herein by reference) 10.4 Mortgage on County Plaza Building (filed as Exhibit 10.4 to First Busey's Registration Statement on Form S-1 (Registration No. 33-13973), and incorporated herein by reference 10.5 Affiliation Agreement dated October 13, 1988 between Community Bank of Mahomet and CBM Bank, Mahomet and joined in by First Busey Corporation (filed as Exhibit 2.1 to First Busey's Registration Statement on Form S-4 (Registration No. 33-25159), and incorporated herein by reference) 10.6 Merger Agreement dated October 13, 1988 between Community Bank of Mahomet and CBM Bank, Mahomet and joined in by First Busey Corporation (filed as Exhibit 2.2 to First Busey's Registration Statement on Form S-4 (Registration No. 33-25159), and incorporated herein by reference) 10.7* First Busey Corporation Employee Stock Ownership Plan (filed as Exhibit 10.7 to First Busey's Annual Report on Form 10-K for the fiscal year ended December 31, 1988 (Registration No. 2-66201), and incorporated herein by reference) 10.8* First Busey Corporation 1988 Stock Option Plan (filed as Exhibit 10.8 to First Busey's Annual Report on Form 10-K for the fiscal year ended December 31, 1988 (Registration No. 2-66201), and incorporated herein by reference) 10.9 Affiliation Agreement dated as of April 10, 1989 between First Busey Corporation and St. Joseph Bancorp, Inc. (filed as Exhibit 2.1 to First Busey's Corporation Statement on Form S4 (Registration No. 33-28926), and incorporated herein by reference) 10.1 Agreement and Plan of Merger dated April 10, 1989 between First Busey Corporation and St. Joseph Bancorp, Inc. (filed as Exhibit 2.2 to First Busey's Registration Statement on Form S-4 (Registration No 33-28926), and incorporated herein by reference)
4 Exhibit Description of Exhibit Sequentially Number Numbered Page - - ------- ---------------------------------------------------------------- ------------- 10.11 Affiliation Agreement dated as of October 2, 1992 between First Busey Corporation and Empire Capital Corporation (filed as Exhibit 2.1 to First Busey's Registration Statement on Form S-4 (Registration No. 33-54664), and incorporated herein by reference) 10.12 Agreement and Plan of Merger dated as of October 2, 1992 between First Busey Corporation and Empire Capital Corporation (filed as Exhibit 2.2 to First Busey's Registration Statement on Form 5-4 (Registration No. 33-54664), and incorporated herein by reference) 10.13* First Busey Corporation Executive Deferred Compensation Plan (filed as Exhibit 10.13 to First Busey's Annual Report on Form 10-K for the fiscal year ending December 31, 1993 and incorporated herein by reference) 10.14* First Busey Corporation Director Deferred Compensation Plan (filed as Exhibit 10.14 to First Busey's Annual Report on Form 10-K for the fiscal year ending December 31, 1993 and incorporated herein by reference) 10.15* Split-dollar Life Insurance Policy on Douglas C. Mills and Linda M. Mills (filed as Exhibit 10.15 to First Busey's Annual Report on Form 10-K for the fiscal year ending December 31, 1993 and incorporated herein by reference) 10.16* Split-dollar Life Insurance Policy on Edwin A. Scharlau (filed as Exhibit 10.16 to First Busey's Annual Report on Form 10-K for the fiscal year ending December 31, 1994 and incorporated herein by reference) 10.17* Split-dollar Life Insurance Policy on P. David Kuhl (filed as Exhibit 10.17 to First Busey's Annual Report on Form 10-K for the fiscal year ending December 31, 1994 and incorporated herein by reference) 21.1 List of Subsidiaries of First Busey Corporation 23.1 Consent of Independent Public Accountants 99.1 Form 11-K Annual Report for First Busey Corporation Profit Sharing Plan and Trust (Registration No. 33-30095) for the fiscal year ended December 31, 1995 99.2 Form 11-K Annual Report for First Busey Corporation Employee Stock Ownership Plan (Registration No. 33-60402) for the fiscal year ended December 31, 1995
* Indicates an employee benefit plan, management contract or compensatory plan or arrangement in which a named executive officer participates. FINANCIAL STATEMENT SCHEDULES Financial statement schedules not included in this Form 10-K have been omitted because they are not applicable for the required information shown in the financial statements or notes thereto. FIRST BUSEY CORPORATION INDEX TO FINANCIAL STATEMENTS Page ------------ Consolidated Balance Sheets F-2 Consolidated Statements of Income F-3 to F-4 Consolidated Statements of Stockholders' Equity F-5 to F-7 Consolidated Statements of Cash Flows F-8 to F-9 Notes to Consolidated Financial Statements F-10 to F-325 Management Report, Effectiveness of the Internal Control Structure F-34 Independent Auditor's Report F-35 REPORTS ON FORM 8-K No reports on Form 8-K have been filed for or on behalf of First Busey Corporation during the last quarter or the period covered by this Form 10-K. FORM S-8 UNDERTAKING For the purposes of complying with the amendments to the rules governing Form S-8 (effective July 13, 1990) under the Securities Act of 1933, the undersigned registrant hereby undertakes as follows, which undertaking shall be incorporated by reference into the registrant's Registration Statement on Form S-8 File No. 33-30095. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of the expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
6 EXHIBIT 99.1 FORM 11-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORT Pursuant to Section 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 1995 Commission File No. 0-15950 (First Busey Corporation) Commission File No. 33-30095 (the Plan) A. Full title of the plan and the address of the plan, if different from that of the issuer named below: FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST ("the Plan") B. Name of issuer of the securities held pursuant to the plan and the address of its principle executive office: FIRST BUSEY CORPORATION 201 WEST MAIN STREET URBANA, ILLINOIS 61801
7 Required Information Profit Sharing Plan and Trust Page ------------ Independent Auditor's Report on the Financial Statements F-1 Financial Statements 1) Statements of Net Assets Available for Plan Benefits F-2 2) Statements of Changes in Net Assets Available for Plan Benefits F-3 3) Notes to Financial Statements F-4 - F-15 4) Independent Auditor's Report on the F-16 Supplementary Information 5) Summary of Investments Owned and Investment Income F-17 - F-18 6) Assets Held for Investment F-19 - F-23 7) Reportable Transactions F-24 9) Consent of Independent Public Accountants F-25
8 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST FINANCIAL REPORT DECEMBER 31, 1995
9 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST C O N T E N T S - - --------------------------------------------------------------------------- INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS 3 - - --------------------------------------------------------------------------- FINANCIAL STATEMENTS Statements of net assets available for benefits 4 Statements of changes in net assets available for benefits 5 Notes to financial statements 6-17 INDEPENDENT AUDITOR'S REPORT ON THE SUPPLEMENTARY INFORMATION 18 SUPPLEMENTARY INFORMATION Summary of investments owned and investment income 19 and 20 Assets held for investment 21-25 Reportable transactions 26 - - ---------------------------------------------------------------------------
10 INDEPENDENT AUDITOR'S REPORT TO THE PROFIT SHARING COMMITTEE AND PARTICIPANTS FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST URBANA, ILLINOIS We have audited the accompanying statements of net assets available for benefits of FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST as of December 31, 1995 and 1994, and the related statements of changes in net assets available for benefits for each of the years in the three-year period ended December 31, 1995. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST as of December 31, 1995 and 1994, and the changes in net assets available for benefits for each of the years in the three-year period ended December 31, 1995, in conformity with generally accepted accounting principles. Champaign, Illinois April 8, 1996 - - ---------------------------------------------------------------------- F - 3
11 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 and 1994 - - ------------------------------------------------------------------------------- 1995 1994 ------------ ------------ ASSETS Investments at fair value: Common stock $ 3,587,884 $ 2,701,203 Mutual funds 3,310,665 2,891,216 Corporate bonds, notes and commercial paper 2,421,467 1,829,956 Short-term investments 1,200,432 892,180 Common trust fund 1,180,910 990,471 U. S. Treasury and federal agency securities 559,570 384,487 Taxable municipal bonds 340,970 255,015 Notes receivable, other 101,954 437,632 Notes receivable, participants 75,394 93,830 ------------ ------------ $ 12,779,246 $ 10,475,990 ------------ ------------ Receivables: Accrued interest and dividends $ 241,628 $ 134,393 Participants' contributions 21,294 18,390 Other 1,037 50,000 ------------ ------------ $ 263,959 $ 202,783 ------------ ------------ Total assets $ 13,043,205 $ 10,678,773 ------------ ------------ LIABILITIES Cash overdraft Cash overdraft $ - $ 42 Participants - 9,100 ------------ ------------ Total liabilities $ - $ 9,142 ------------ ------------ NET ASSETS AVAILABLE FOR BENEFITS $ 13,043,205 $ 10,669,631 ============ ============
See Notes to Financial Statements. - - ---------------------------------------------------------------------- F - 412 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Years Ended December 31, 1995, 1994 and 1993 - - ------------------------------------------------------------------------------- 1995 1994 1993 ------------ ------------ ------------ Investment income: Net (depreciation) appreciation in fair value of investments $ 1,650,641 $ (57,335) $ 500,049 Interest 276,102 248,570 230,007 Dividends 176,575 148,880 157,346 ------------ ------------ ------------ $ 2,103,318 $ 340,115 $ 887,402 ------------ ------------ ------------ Contributions: Employer $ 371,486 $ 304,385 $ 300,067 Employees 569,066 538,024 495,771 Employee contributions representing transfers from another qualified retirement trust 118,413 955,896 4,529 ------------ ------------ ------------ $ 1,058,965 $ 1,798,305 $ 800,367 ------------ ------------ ------------ Total additions $ 3,162,283 $ 2,138,420 $ 1,687,769 ------------ ------------ ------------ Benefits paid to participants $ 708,692 $ 439,829 $ 161,243 Administrative expenses 80,017 71,185 51,242 ------------ ------------ ------------ Total deductions $ 788,709 $ 511,014 $ 212,485 ------------ ------------ ------------ Net increase $ 2,373,574 $ 1,627,406 $ 1,475,284 Net assets available for benefits: Beginning of year 10,669,631 9,042,225 7,566,941 ------------ ------------ ------------ End of year $ 13,043,205 $ 10,669,631 $ 9,042,225 ============ ============ ============
See Notes to Financial Statements. - - ---------------------------------------------------------------------- F - 513 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 1. SIGNIFICANT ACCOUNTING POLICIES Valuation of investments: The Plan's investments are stated at fair value. Shares of registered investment companies are valued at quoted market prices which represent the net asset value of shares held by the Plan at year-end. Securities traded on any recognized stock exchange are valued at the last reported sales price at the valuation date. Securities not listed on an exchange and securities for which no sale has been reported on that day are valued at the closing bid price, or at fair value as determined by the Trustee. Certificates of deposit and participant and other notes receivable are valued at cost which approximates fair value. Purchases and sales of securities are recorded on a trade-date basis. Payment of benefits: Benefits are recorded when paid. NOTE 2. PLAN DESCRIPTION The following description of the Plan provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. General: First Busey Corporation Profit Sharing Plan and Trust (the Plan) is a multiple-employer profit sharing plan and 401(k) plan. Participating employers are First Busey Corporation and its subsidiaries (the Employers). The Plan is a profit sharing plan that was amended effective January 1, 1987, to include a 401(k) plan. The Plan covers all full-time employees of the Employers who have completed 6 months of service. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Contributions: Each profit sharing participant is permitted to make voluntary contributions to their profit sharing account up to 10% of the participant's total compensation, as defined in the Plan. Each 401(k) participant may make voluntary contributions subject to certain limits as provided in the plan document and in income tax regulations. Participants may also contribute amounts representing distributions from other qualified plans. - - ---------------------------------------------------------------------- F - 6
14 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- The Employers' contributions to the profit sharing portion of the Plan are determined by their Boards of Directors. The Employers make contributions to the 401(k) portion of the Plan equal to 25% of the first 6% of total compensation that a participant contributes to the Plan. The Employers may increase the match in any year if approved by their Boards of Directors. For the year ended December 31, 1995, 401(k) Plan matching totaled 29% of participant contributions. In recognition of Busey Bank's 125th anniversary, for the year ended December 31, 1993, the employers made an additional contribution to the 401(k) portion of the Plan equal to 12.5% of participant contributions. Participant accounts: Each participant's profit sharing account is credited with the participant's contributions and an allocation of (a) the Employers' contribution, (b) Trust earnings, (c) forfeitures of terminated participants' non-vested accounts, and (d) administrative expenses. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. Each participant's 401(k) account is credited with the participant's voluntary contributions and an allocation of (a) the Employers' contribution, (b) Trust earnings, and (c)administrative expenses. The benefit to which a participant is entitled is the benefit that can be provided from the participant's vested account. Vesting: Participants in the 401(k) plan are immediately vested in their voluntary contributions, the Company's contribution and the respective Trust earnings on those contributions. Participants in the profit sharing plan are immediately vested in their voluntary contributions plus earnings thereon. Vesting in the remainder of their accounts is based on years of continuous service. A participant is 100 percent vested after seven years of credited service. Investment options: Upon enrollment in the 401(k) plan, a participant may direct contributions in any of four investment options as follows: Balanced Fund - Funds are invested primarily in shares of registered investment companies and corporate bonds. Equity Growth Fund - Funds are invested in shares of registered investment companies. - - ---------------------------------------------------------------------- F - 7
15 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- FBC Stock Fund - Funds are invested in Class A common stock of First Busey Corporation. CD Fund - Funds are invested in a certificate of deposit with Busey Bank, a subsidiary of First Busey Corporation. Participants may change their investment options semi-annually. Payment of benefits: Upon termination of service, a participant may elect to receive either a lump-sum amount equal to the value of his or her account, or an annuity payable to the participant for his or her life with an annuity payable to the participant's surviving spouse equal to 50% of the participant's annuity. The participant may elect to receive a smaller annuity benefit with continuation of payments to the spouse at a rate of 75% or 100% of the participants' annuity. NOTE 3. PLAN TERMINATION In the event of the termination of the Plan, or upon the complete discontinuance of contributions, the Trust shall be used to provide benefits under the Plan for participants and their beneficiaries in the order of decreasing priority as described in the Employee Retirement Income Security Act of 1974. In the event of Plan termination, participants will become 100 percent vested in their accounts. Presently, there is no intention on the part of the Employers to terminate the Plan or to discontinue contributions to the Trust. - - ---------------------------------------------------------------------- F - 8
16 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 4. INVESTMENTS The following table presents the fair values of investments as of December 31, 1995 and 1994. Investments that represent 5 percent or more of the Trust's net assets are separately identified. DECEMBER 31, 1995 December 31, 1994 ----------------------------- ----------------------------- Number of Number of Shares or Shares or Principal Principal Amount Fair Value Amount Fair Value ------------ ------------ ------------ ------------ Investments at fair value as determined by quoted market price: U. S. Treasury Notes $ 175,000 $ 180,742 $ 175,000 $ 164,656 Federal Home Loan Bank Bonds $ 325,000 332,773 $ 200,000 201,375 Federal Farm Credit Bank Bonds $ 45,000 46,055 $ 20,000 18,456 Corporate bonds, notes and commercial paper $ 2,390,000 2,421,467 $ 1,925,000 1,829,956 Common stock, Class A, First Busey Corporation 121,747 3,287,169 100,047 2,426,140 Other common stocks 14,859 300,715 15,090 275,063 Mutual funds: Mutual Shares Fund 6,274.925 542,467 7,696.235 605,617 Nicholas Fund, Inc. 10,040.439 602,727 11,884.144 570,795 Other mutual funds 102,256.753 2,165,471 87,971.639 1,714,804 ------------ ------------ $ 9,879,586 $ 7,806,862 ------------ ------------ Investments at estimated fair value: Certificate of deposit $ 283,855 $ 283,855 $ 93,937 $ 93,937 Franklin IFT Money Market Portfolio $ 916,577 916,577 $ 798,243 798,243 Pension Common Trust Fund of First Busey Trust & Investment Co. 34,270 1,180,910 37,836 990,471 Notes receivable, partici- pants $ 75,394 75,394 $ 93,830 93,830 Notes receivable, other $ 101,954 101,954 $ 437,632 437,632 Taxable municipal bonds $ 340,000 340,970 $ 250,000 255,015 ------------ ------------ $ 2,899,660 $ 2,669,128 ------------ ------------ $ 12,779,246 $ 10,475,990 ============ ============ - - ---------------------------------------------------------------------- F - 9
17 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- During the years ended December 31, 1995, 1994 and 1993 the Trust's investments (including investments bought, sold and held during the year) appreciated (depreciated) in value by 1,650,641, $(57,335) and $500,049, respectively, as follows: 1995 1994 1993 ----------- ----------- ---------- Investments at fair value as determined by quoted market price: U. S. Treasury and federal agency securities $ 24,978 $ (42,179) $ (9,282) Corporate bonds, notes and commercial paper 122,318 (155,466) 10,219 Common stock 399,393 207,184 372,570 Mutual funds 813,560 (73,068) 53,460 ----------- ----------- ---------- $ 1,360,249 $ (63,529) $ 426,967 ----------- ----------- ---------- Investments at estimated fair value: Common trust fund $ 290,465 $ 6,194 $ 68,821 Taxable municipal bonds (73) - - Zero-coupon bonds - - 4,261 ----------- ----------- ---------- $ 290,392 $ 6,194 $ 73,082 ----------- ----------- ---------- $ 1,650,641 $ (57,335) $ 500,049 =========== =========== ========== NOTE 5. PARTY IN INTEREST TRANSACTIONS Parties in interest include fiduciaries or employees of the plan, any person who provides services to the plan, an employer whose employees are covered by the plan, an employee organization whose members are covered by the plan, a person who owns 50 percent or more of such an employer or employee association, or relatives of such persons just listed. Certain Plan investments are shares of a common trust fund managed by First Busey Trust & Investment Co. (FBTIC). FBTIC is the trustee as defined by the Plan thus, these transactions qualify as party in interest. Fees paid for investment management services amounted to $45,295, $41,555 and $33,827 for the three years ended December 31, 1995, 1994 and 1993, respectively. Another Plan investment is a certificate of deposit with Busey Bank, a subsidiary of First Busey Corporation. Purchases and maturities of certificates of deposit from Busey Bank also qualify as party in interest transactions. - - ---------------------------------------------------------------------- F - 10
18 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 6. RECONCILIATION OF DIFFERENCES BETWEEN THESE FINANCIAL STATEMENTS AND THE FINANCIAL INFORMATION REQUIRED ON FORM 5500 December 31, 1995 ------------- Net assets available for benefits as presented in these financial statements $ 13,043,205 Amounts allocated to withdrawing participants (353,646) ------------- Net assets available for benefits as presented on Form 5500 $ 12,689,559 ============= Year Ended December 31, 1995 ------------- Net increase in net assets available for benefits as presented in these financial statements $ 2,373,574 Less amounts allocated to withdrawing participants at the end of the year (353,646) ------------- Net increase in net assets available for benefits as presented in Form 5500 $ 2,019,928 ============= Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31 but not yet paid as of that date. NOTE 7. INCOME TAX STATUS The Internal Revenue Service has determined and informed First Busey Corporation by a letter dated May 25, 1995, that the Plan and related trust are designed in accordance with applicable sections of the Internal Revenue Code. The Plan has been amended since receiving the determination letter. However, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC. NOTE 8. FORFEITED ACCOUNTS At December 31, 1995, forfeited nonvested profit-sharing accounts totaled $7,469. These accounts will be allocated to profit sharing plan participants' accounts. - - ---------------------------------------------------------------------- F - 11
19 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- This page left intentionally blank. - - ---------------------------------------------------------------------- F - 12
20 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 8. STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, BY FUND DECEMBER 31, 1995 -------------------------------------------------------------------------------------------- Non- Participant Directed Participant Directed 401(k) ----------- --------------------------------------------------------- Equity FBC Profit Balanced Growth Stock CD Sharing Fund Fund Fund Fund Total ----------- ---------- ---------- ----------- --------- ------------ Investments at fair value: Common stock $ 300,715 $ - $ - $ 3,287,169 $ - $ 3,587,884 Mutual funds 2,335,631 264,741 710,293 - - 3,310,665 Corporate bonds, notes, and commercial paper 2,193,576 227,891 - - - 2,421,467 Short-term investments 831,236 65,566 2 19,773 283,855 1,200,432 Common trust fund 1,151,379 29,531 - - - 1,180,910 U.S. Treasury and federal agency securities 533,484 26,086 - - - 559,570 Taxable municipal bonds 340,970 - - - - 340,970 Notes receivable, other 101,954 - - - - 101,954 Notes receivable, participants 9,825 1,369 5,777 49,206 9,217 75,394 ----------- ---------- ---------- ----------- --------- ------------ $ 7,798,770 $ 615,184 $ 716,072 $ 3,356,148 $ 293,072 $ 12,779,246 ----------- ---------- ---------- ----------- --------- ------------ Receivables: Interfund (payable)/receivable $ (126,606) $ 14,552 $ 21,612 $ 82,272 $ 8,170 $ - Accrued interest and dividends 160,244 15,183 53,530 309 12,362 241,628 Participants' contributions - 2,463 3,580 13,952 1,299 21,294 Other 1,037 - - - - 1,037 ----------- ---------- ---------- ----------- --------- ------------ $ 34,675 $ 32,198 $ 78,722 $ 96,533 $ 21,831 $ 263,959 ----------- ---------- ---------- ----------- --------- ------------ Total assets $ 7,833,445 $ 647,382 $ 794,794 $ 3,452,681 $ 314,903 $ 13,043,205 ----------- ---------- ---------- ----------- --------- ------------ NET ASSETS AVAILABLE FOR BENEFITS $ 7,833,445 $ 647,382 $ 794,794 $ 3,452,681 $ 314,903 $ 13,043,205 =========== ========== ========== =========== ========= ============ - - ---------------------------------------------------------------------- F - 13
21 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 8. STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, BY FUND December 31, 1994 -------------------------------------------------------------------------------------------- Non- Participant Directed Participant Directed 401(k) ----------- -------------------------------------------------------- Equity FBC Profit Balanced Growth Stock CD Sharing Fund Fund Fund Fund Total ----------- ---------- ---------- ----------- --------- ------------- Investments at fair value: Common stock $ 275,063 $ - $ - $ 2,426,140 $ - $ 2,701,203 Mutual funds 1,949,519 195,369 746,328 - - 2,891,216 Corporate bonds, notes and commercial paper 1,617,164 212,792 - - - 1,829,956 Short term investments 705,976 55,714 5,472 31,081 93,937 892,180 Common trust fund 874,686 115,785 - - - 990,471 U.S. Treasury and federal agency securities 384,487 - - - - 384,487 Taxable municipal bonds 204,942 50,073 - - - 255,015 Notes receivable, other 408,043 29,589 - - - 437,632 Notes receivable, participants 93,830 - - - - 93,830 ----------- ---------- ---------- ----------- --------- ------------- $ 6,513,710 $ 659,322 $ 751,800 $ 2,457,221 $ 93,937 $ 10,475,990 ----------- ---------- ---------- ----------- --------- ------------- Receivables: Interfund (payable)/receivable $ (107,339) $ 18,986 $ 26,598 $ 59,053 $ 2,702 $ - Accrued interest and dividends 100,433 11,029 22,782 149 - 134,393 Participants' contributions - 3,267 4,198 10,418 507 18,390 Other 50,000 - - - - 50,000 ----------- ---------- ---------- ----------- --------- ------------- $ 43,094 $ 33,282 $ 53,578 $ 69,620 $ 3,209 $ 202,783 ----------- ---------- ---------- ----------- --------- ------------- Total assets $ 6,556,804 $ 692,604 $ 805,378 $ 2,526,841 $ 97,146 $ 10,678,773 ----------- ---------- ---------- ----------- --------- ------------- Cash overdraft $ (42) $ - $ - $ - $ - (42) Participants - (1,031) (1,814) (6,255) - (9,100) ----------- ---------- ---------- ----------- --------- ------------- Total liabilities $ (42) $ (1,031) $ (1,814) $ (6,255) $ - $ (9,142) ----------- ---------- ---------- ----------- --------- ------------- NET ASSETS AVAILABLE FOR BENEFITS $ 6,556,762 $ 691,573 $ 803,564 $ 2,520,586 $ 97,146 $ 10,669,631 =========== ========== ========== =========== ========= ============= - - ---------------------------------------------------------------------- F - 14
22 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 9. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, BY FUND DECEMBER 31, 1995 --------------------------------------------------------------------------------------- Non- Participant Directed Participant Directed 401(k) ----------- -------------------------------------------------------- Equity FBC Profit Balanced Growth Stock CD Sharing Fund Fund Fund Fund Total ----------- ---------- ---------- ----------- --------- ------------- Additions to net assets attributed to: Investment income: Net appreciation in fair value of investments $ 1,082,002 $ 83,169 $ 184,156 $ 301,314 $ - $ 1,650,641 Interest 233,262 13,765 212 10,226 18,637 276,102 Dividends 61,770 7,363 10,997 96,445 - 176,575 ----------- ---------- ---------- ----------- --------- ------------- $ 1,377,034 $ 104,297 $ 195,365 $ 407,985 $ 18,637 $ 2,103,318 ----------- ---------- ---------- ----------- --------- ------------- Contributions: Employer $ 244,880 $ 14,552 $ 21,612 $ 82,272 $ 8,170 $ 371,486 Employees - 68,384 99,191 366,760 34,731 569,066 Employee contributions representing transfers from another qualified retirement trust 118,413 - - - - 118,413 ----------- ---------- ---------- ----------- --------- ------------- $ 363,293 $ 82,936 $ 120,803 $ 449,032 $ 42,901 $ 1,058,965 ----------- ---------- ---------- ----------- --------- ------------- Total additions $ 1,740,327 $ 187,233 $ 316,168 $ 857,017 $ 61,538 $ 3,162,283 ----------- ---------- ---------- ----------- --------- ------------- Deductions from net assets attributed to: Benefits paid to participants $ (404,007) $ (33,731) $ (32,294) $ (192,055) $ (46,605) $ (708,692) Administrative expenses (59,637) (2,703) (3,443) (13,423) (811) (80,017) ----------- ---------- ---------- ----------- --------- ------------- Total deductions $ (463,644) $ (36,434) $ (35,737) $ (205,478) $ (47,416) $ (788,709) ----------- ---------- ---------- ----------- --------- ------------- Net participants' transfers between funds $ - $(194,990) $(289,201) $ 280,556 $ 203,635 $ - ----------- ---------- ---------- ----------- --------- ------------- Net increase (decrease) $ 1,276,683 $ (44,191) $ (8,770) $ 932,095 $ 217,757 $ 2,373,574 Net assets available for benefits: Beginning of year 6,556,762 691,573 803,564 2,520,586 97,146 10,669,631 ----------- ---------- ---------- ----------- --------- ------------- End of year $ 7,833,445 $ 647,382 $ 794,794 $ 3,452,681 $ 314,903 $ 13,043,205 =========== ========== ========== =========== ========= ============= - - ---------------------------------------------------------------------- F - 15
23 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 9. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, BY FUND December 31, 1994 --------------------------------------------------------------------------------------- Non- Participant Directed Participant Directed 401(k) ----------- -------------------------------------------------------- Equity FBC Profit Balanced Growth Stock CD Sharing Fund Fund Fund Fund Total ----------- ---------- ---------- ----------- --------- ------------- Additions to net assets attributed to: Investment income: Net (depreciation) appreciation in fair value of investments $ (262,306) $ (19,145) $ (14,201) $ 238,317 $ - $ (57,335) Interest 221,137 22,112 151 1,309 3,861 248,570 Dividends 58,968 5,626 11,548 72,738 - 148,880 ----------- ---------- ---------- ----------- --------- ------------- $ 17,799 $ 8,593 $ (2,502) $ 312,364 $ 3,861 $ 340,115 ----------- ---------- ---------- ----------- --------- ------------- Contributions: Employer $ 197,690 $ 18,253 $ 26,620 $ 59,120 $ 2,702 $ 304,385 Employees - 96,474 133,904 295,302 12,344 538,024 Employee contributions representing transfers from another qualified retirement trust 955,896 - - - - 955,896 ----------- ---------- ---------- ----------- --------- ------------- $ 1,153,586 $ 114,727 $ 160,524 $ 354,422 $ 15,046 $ 1,798,305 ----------- ---------- ---------- ----------- --------- ------------- Total additions $ 1,171,385 $ 123,320 $ 158,022 $ 666,786 $ 18,907 $ 2,138,420 ----------- ---------- ---------- ----------- --------- ------------- Deductions from net assets attributed to: Benefits paid to participants $ (189,107) $ (43,140) $ (31,769) $ (174,065) $ (1,748) $ (439,829) Administrative expenses (51,283) (4,136) (6,774) (8,331) (661) (71,185) ----------- ---------- ---------- ----------- --------- ------------- Total deductions $ (240,390) $ (47,276) $ (38,543) $ (182,396) $ (2,409) $ (511,014) ----------- ---------- ---------- ----------- --------- ------------- Net participants' transfers between funds $ - $(219,362) $ 141,936 $ 116,723 $ (39,297) $ - ----------- ---------- ---------- ----------- --------- ------------- Net increase (decrease) $ 930,995 $(143,318) $ 261,415 $ 601,113 $ (22,799) $ 1,627,406 Net assets available for benefits: Beginning of year 5,625,767 834,891 542,149 1,919,473 119,945 9,042,225 ----------- ---------- ---------- ----------- --------- ------------- End of year $ 6,556,762 $ 691,573 $ 803,564 $ 2,520,586 $ 97,146 $ 10,669,631 =========== ========== ========== =========== ========= ============= - - ---------------------------------------------------------------------- F - 16
24 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 9. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, BY FUND December 31, 1993 --------------------------------------------------------------------------------------- Non- Participant Directed Participant Directed 401(k) ----------- -------------------------------------------------------- Equity FBC Profit Balanced Growth Stock CD Sharing Fund Fund Fund Fund Total ----------- ---------- ---------- ----------- --------- ------------- Additions to net assets attributed to: Investment income: Net appreciation in fair value of investments $ 97,142 $ 11,299 $ 19,038 $ 72,570 $ - $ 500,049 Interest 198,429 24,864 214 842 5,658 230,007 Dividends 54,768 10,347 30,426 61,805 - 157,346 ----------- ---------- ---------- ----------- --------- ------------- $ 350,339 $ 46,510 $ 49,678 $ 435,217 $ 5,658 $ 887,402 ----------- ---------- ---------- ----------- --------- ------------- Contributions: Employer $ 136,311 $ 44,527 $ 32,455 $ 80,984 $ 5,790 $ 300,067 Employees - 143,000 98,378 235,790 18,603 495,771 Employee contributions representing transfers from another qualified retirement trust 4,529 - - - - 4,529 ----------- ---------- ---------- ----------- --------- ------------- $ 140,840 $ 187,527 $ 130,833 $ 316,774 $ 24,393 $ 800,367 ----------- ---------- ---------- ----------- --------- ------------- Total additions $ 491,179 $ 234,037 $ 180,511 $ 751,991 $ 30,051 $ 1,687,769 ----------- ---------- ---------- ----------- --------- ------------- Deductions from net assets attributed to: Benefits paid to participants $ (55,470) $ (10,756) $ (1,066) $ (74,994) $ (18,957) $ (161,243) Administrative expenses (51,862) (631) (819) 2,528 (458) (51,242) ----------- ---------- ---------- ----------- --------- ------------- Total deductions $ (107,332) $ (11,387) $ (1,885) $ (72,466) $ (19,415) $ (212,485) ----------- ---------- ---------- ----------- --------- ------------- Net participants' transfers between funds $ - $ (58,607) $ 363,523 $ (219,281) $ (85,635) $ - ----------- ---------- ---------- ----------- --------- ------------- Net increase (decrease) $ 383,847 $ 164,043 $ 542,149 $ 460,244 $ (74,999) $ 1,475,284 Net assets available for benefits: Beginning of year 5,241,920 670,848 - 1,459,229 194,944 7,566,941 ----------- ---------- ---------- ----------- --------- ------------- End of year $ 5,625,767 $ 834,891 $ 542,149 $ 1,919,473 $ 119,945 $ 9,042,225 =========== ========== ========== =========== ========= ============= - - ---------------------------------------------------------------------- F - 17
25 INDEPENDENT AUDITOR'S REPORT ON THE SUPPLEMENTARY INFORMATION TO THE PROFIT SHARING COMMITTEE AND PARTICIPANTS FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST URBANA, ILLINOIS Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information which follows is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Champaign, Illinois April 8, 1996 - - ---------------------------------------------------------------------- F - 18
26 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST SUMMARY OF INVESTMENTS OWNED AND INVESTMENT INCOME Years Ended December 31, 1995, 1994 and 1993 - - ------------------------------------------------------------------------------- Net Appreciation Fair Value of Interest (Depreciation) Investments Owned and in ----------------------------- Dividend Fair Value of Beginning Ending Income Investments ------------ ------------ ---------- ------------- Year ended December 31, 1995: Common stock $ 2,701,203 $ 3,587,884 $ 103,900 $ 399,393 Mutual funds 2,891,216 3,310,665 49,482 813,560 Corporate bonds, notes and commercial paper 1,829,956 2,421,467 132,786 122,318 Short-term investments 892,180 1,200,432 44,839 - Common trust fund 990,471 1,180,910 23,193 290,465 U.S. Treasury and federal agency securities 384,487 559,570 42,153 24,978 Taxable municipal bonds 255,015 340,970 16,617 (73) Notes receivable, other 437,632 101,954 33,630 - Notes receivable, participants 93,830 75,394 6,077 - ------------ ------------ ---------- ------------- $ 10,475,990 $ 12,779,246 $ 452,677 $ 1,650,641 ============ ============ ========== ============= Net Appreciation Fair Value of Interest (Depreciation) Investments Owned and in ----------------------------- Dividend Fair Value of Beginning Ending Income Investments ------------ ------------ ---------- ------------- Year ended December 31, 1994: Common stock $ 1,839,261 $ 2,701,203 $ 74,259 $ 207,184 Mutual funds 1,080,768 2,891,216 33,693 (73,068) Corporate bonds, notes and commercial paper 1,701,250 1,829,956 136,171 (155,466) Short-term investments 489,796 892,180 21,627 - Common trust fund 2,453,327 990,471 40,928 6,194 U. S. Treasury and federal agency securities 902,411 384,487 39,379 (42,179) Taxable municipal bonds 50,073 255,015 13,165 - Notes receivable, other 451,300 437,632 37,022 - Notes receivable, participants 6,377 93,830 1,206 - ------------ ------------ ---------- ------------- $ 8,974,563 $ 10,475,990 $ 397,450 $ (57,335) ============ ============ ========== ============= - - ---------------------------------------------------------------------- F - 19
27 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST SUMMARY OF INVESTMENTS OWNED AND INVESTMENT INCOME Years Ended December 31, 1995, 1994 and 1993 - - ------------------------------------------------------------------------------- Net Appreciation Fair Value of Interest (Depreciation) Investments Owned and in ----------------------------- Dividend Fair Value of Beginning Ending Income Investments ------------ ------------ ---------- ------------- Year ended December 31, 1993: Common stock $ 1,361,343 $ 1,839,261 $ 61,805 $ 372,570 Mutual funds - 1,080,768 43,790 53,460 Corporate bonds, notes and commercial paper 1,285,905 1,701,250 113,792 10,219 Short-term investments 903,052 489,796 11,937 - Common trust fund 2,384,475 2,453,327 51,751 68,821 U. S. Treasury and federal agency securities 1,415,102 902,411 91,126 (9,282) Taxable municipal bonds - 50,073 931 - Notes receivable, other - 451,300 11,730 - Notes receivable, participants 5,400 6,377 491 - Zero-coupon bonds 130,739 - - 4,261 ------------ ------------ ---------- ------------- $ 7,486,016 $ 8,974,563 $ 387,353 $ 500,049 ============ ============ ========== ============= - - ---------------------------------------------------------------------- F - 20
28 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST ASSETS HELD FOR INVESTMENT December 31, 1995 - - ------------------------------------------------------------------------------- Number of Shares or Principal Fair Description Amount Cost Value - - --------------------------------------------------- ---------- ----------- ----------- COMMON TRUST FUND Pension Common Trust Fund of First Busey Trust & Investment Co. 34,270 $ 976,918 $ 1,180,910 ======= =========== =========== COMMON STOCKS First Busey Corporation, Class A 121,747 $ 2,251,028 $ 3,287,169 Southwest Banks 1,040 9,996 14,820 Mahaska Investment Co. 800 12,000 12,150 Hinsdale Financial Corp. 62 1,172 1,333 Irwin Financial Corp. 400 11,132 15,950 Todays Bancorp Inc. 600 11,148 13,275 River Forest Bancorp 600 10,599 15,300 First Federal Capital Corp. 600 11,148 10,800 Greenpoint Financial Corp. 550 12,988 14,576 Calumet Bancorp Inc. 450 11,499 12,487 Westco Bancorp Inc. 500 10,540 13,500 MAF Bancorp, Inc. 495 10,386 12,375 Mid Am Inc. 605 7,540 10,285 Republic Bancorp 847 10,293 9,105 Harbor Federal Savings Bank 1,400 22,957 37,850 Commercial Net Lease Realty Inc. 500 6,102 6,563 Airtouch Communications 200 4,491 6,450 Barnett Banks Inc. 100 4,520 6,025 Brinker Int'l, Inc. 200 4,360 2,650 Long Island Bancorp 200 3,141 5,175 Pocahontas Federal Savings & Loan Assn., Arkansas 200 2,316 3,200 Fidelity Federal Savings Bank, Florida 220 2,966 3,245 Fidelity Bancorp Inc. 200 2,616 3,000 Eastern Bancorporation 100 2,358 2,550 First Palm Beach Bancorp 100 1,883 2,162 Pacific Gateway Properties 500 1,498 1,500 First Financial Corp. Wisconsin 790 10,573 18,114 First Mutual Bancorp, Inc. 2,000 20,000 26,000 Bell Bancorp, Inc. 400 10,632 14,300 Cole Taylor Financial Group 200 3,466 5,975 ------- ----------- ----------- 136,606 $ 2,485,348 $ 3,587,884 ======= =========== =========== - - ---------------------------------------------------------------------- F - 21
29 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST ASSETS HELD FOR INVESTMENT December 31, 1995 - - ------------------------------------------------------------------------------- Number of Shares or Principal Fair Description Amount Cost Value - - ------------------------------------------------------ ----------- ----------- ----------- CORPORATE BONDS, NOTES AND COMMERCIAL PAPER American Express Credit Corp., 7.375%, due February 1, 1999 25,000 $ 25,355 $ 26,227 American Express Credit Corp., 6.125%, due June 15, 2000 25,000 25,747 25,063 American Home Products Corp., 6.875%, due April 15, 1997 20,000 20,302 20,125 Associates Corp., N.A., 6.000%, due March 15, 2000 25,000 24,776 25,211 Associates Corp., N.A., 5.750%, due November 15, 1998 125,000 124,732 125,508 Bear Stearns Co., Inc., 7.625%, due April 15, 2000 50,000 51,112 53,062 Bear Stearns Co., Inc., 6.500%, due June 15, 2000 50,000 50,495 51,016 CIT Group Holdings Inc., 6.750%, due April 30, 1998 35,000 35,405 35,919 Dow Capital notes, 5.750%, due September 15, 1997 25,000 24,840 24,977 Duke Power Co., 5.875%, due June 1, 2001 100,000 99,500 98,750 GTE California, 6.250%, due January 15, 1998 150,000 150,947 152,062 GTE California Series A, 5.625%, due February 1, 2001 100,000 97,916 98,875 General Motors Acceptance Corp., 8.250%, due August 1, 1996 50,000 47,605 50,750 General Motors Acceptance Corp. MTN, 5.700%, due August 21, 1996 50,000 49,125 50,031 H. J. Heinz Co. note, 6.750%, due October 15, 1999 50,000 51,212 51,844 Illinois Power Company, 5.625%, due April 15, 2000 50,000 50,250 49,297 International Lease Finance Corp., 5.750%, due January 15, 1999 50,000 50,485 50,016 J. C. Penney, Inc., 5.375%, due November 15, 1998 50,000 50,005 49,672 Morgan Stanley Corp. notes, 7.320%, due January 15, 1997 80,000 80,000 81,375 New England Telephone, 6.250%, due December 15, 1997 150,000 151,092 151,500 --------- ----------- ----------- Corporate bonds, notes and commercial paper subtotal 1,260,000 $ 1,260,901 $ 1,271,280 --------- ----------- ----------- - - ---------------------------------------------------------------------- F - 22
30 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST ASSETS HELD FOR INVESTMENT December 31, 1995 - - ------------------------------------------------------------------------------- Number of Shares or Principal Fair Description Amount Cost Value - - ------------------------------------------------------ ----------- ----------- ----------- Corporate bonds, notes and commercial paper brought forward 1,260,000 $ 1,260,901 $ 1,271,280 Norwest Corp., 5.75%, due March 15, 1998 50,000 51,135 50,234 Norwest Financial Inc., 6.200%, due September 15, 1999 170,000 168,346 172,550 Ontario-Global Bond, 6.125%, due June 28, 2000 50,000 50,870 50,687 Pacific Gas & Electric, 5.375%, due August 1, 1998 55,000 54,931 54,450 Phillip Morris Companies, Inc., 8.750%, due June 15, 1997 55,000 55,550 57,423 Pitney Bowes Credit Services, 7.420%, due April 15, 1997 75,000 76,796 76,828 Republic New York Corp., 7.250%, due July 15, 2002 50,000 52,793 53,266 Rockwell International Corp., 6.750%, due September 15, 2002 25,000 25,598 25,656 Sears, Roebuck & Co., 9.000%, due September 15, 1996 125,000 123,758 127,929 Shearson Lehman Brothers MTN, 6.420%, due July 17, 1996 50,000 50,996 50,109 Shell Oil Co., 6.000%, due January 15, 1997 25,000 25,125 25,180 Southern California Edison notes, 6.500%, due June 1, 2001 50,000 49,682 51,187 St. Paul Companies, Inc. MTN, 6.170%, due January 15, 2001 50,000 50,485 50,578 St. Paul Companies, Inc., 7.970%, due May 20, 2002 25,000 25,371 27,469 Wal-Mart Stores, Inc., 6.125%, due October 1, 1999 125,000 126,178 126,797 Wal-Mart Stores, Inc., 5.500%, due September 15, 1997 125,000 121,022 125,078 Wisconsin Public Service Co., 5.250%, due July 1, 1998 25,000 24,927 24,766 --------- ----------- ----------- Total corporate bonds, notes and commercial paper 2,390,000 $ 2,394,464 $ 2,421,467 ========= =========== =========== - - ---------------------------------------------------------------------- F - 23
31 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST ASSETS HELD FOR INVESTMENT December 31, 1995 - - ------------------------------------------------------------------------------- Number of Shares or Principal Fair Description Amount Cost Value - - -------------------------------------------------- ------------- ----------- ----------- MUTUAL FUNDS Fidelity Magellan Fund 4,505.967 $ 307,721 $ 387,423 Janus Fund 15,767.262 305,249 363,278 Mutual Shares Fund 6,274.925 515,374 542,467 Nicholas Fund, Inc. 10,040.439 520,561 602,727 Scudder International Fund 4,252.277 181,419 185,910 T. Rowe Price International Stock Fund 15,462.952 181,561 189,112 Fidelity Advisor Institutional Equity Growth 11,490.601 338,398 435,494 Wm. Blair Growth Fund 50,777.694 613,502 604,254 ----------- ----------- ----------- Total mutual funds 118,572.117 $ 2,963,785 $ 3,310,665 =========== =========== =========== U. S. TREASURY NOTES 6.375%, due January 15, 1999 $ 50,000 $ 49,687 $ 51,531 6.000%, due October 15, 1999 25,000 25,266 25,586 6.375%, due January 15, 2000 100,000 102,375 103,625 ----------- ----------- ----------- Total U. S. Treasury notes $ 175,000 $ 177,328 $ 180,742 ----------- ----------- ----------- FEDERAL HOME LOAN BANK BONDS 7.575%, due February 6, 1998 $ 25,000 $ 25,258 $ 26,086 7.915%, due January 17, 1997 200,000 200,000 205,250 8.000%, due July 25, 1996 100,000 98,438 101,437 ----------- ----------- ----------- Total Federal Home Loan Bank bonds $ 325,000 $ 323,696 $ 332,773 ----------- ----------- ----------- FEDERAL FARM CREDIT BANK BOND 6.190%, due February 3, 2000 $ 45,000 $ 45,522 $ 46,055 ----------- ----------- ----------- Total U. S. Treasury and agency securities $ 545,000 $ 546,546 $ 559,570 =========== =========== =========== SHORT-TERM INVESTMENTS Franklin IFT Money Market Portfolio $ 916,577 $ 916,577 $ 916,577 Certificate of Deposit, Busey Bank, 6.240%, due December 31, 1995 283,855 283,855 283,855 ----------- ----------- ----------- Total short-term investments $ 1,200,432 $ 1,200,432 $ 1,200,432 =========== =========== =========== NOTES RECEIVABLE, OTHER DeAnda mortgage, 7.200%, due April 8, 2003 $ 101,954 $ 101,954 $ 101,954 =========== =========== =========== - - ---------------------------------------------------------------------- F - 24
32 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST ASSETS HELD FOR INVESTMENT December 31, 1995 - - ------------------------------------------------------------------------------- Number of Shares or Principal Fair Description Amount Cost Value - - -------------------------------------------------- ------------- ----------- ----------- TAXABLE MUNICIPAL BONDS Baltimore, MD, 6.05%, due October 15, 2000 $ 200,000 $ 204,942 $ 201,382 Lee Co., FL, capital improvement, 5.25%, due October 1, 1997 100,000 98,413 100,091 Mississippi St., UT, Series D, 5.90%, due December 1, 2002 40,000 40,000 39,497 ----------- ----------- ----------- Total taxable municipal bonds $ 340,000 $ 343,355 $ 340,970 =========== =========== =========== NOTES RECEIVABLE, Participants Participant, 8.50%, due January 15, 2001 $ 17,000 $ 17,000 $ 17,000 Participant, 8.75%, due September 15, 2000 13,056 13,056 13,056 Participant, 8.75%, due October 15, 2000 10,891 10,891 10,891 Participant, 8.75%, due August 15, 2000 6,246 6,246 6,246 Participant, 7.50%, due September 15, 2001 6,003 6,003 6,003 Participant, 9.00%, due June 15, 2000 5,498 5,498 5,498 Participant, 10.00%, due February 15, 1999 3,408 3,408 3,408 Participant, 9.00%, due May 15, 1999 2,401 2,401 2,401 Participant, 9.00%, due May 15, 1998 2,001 2,001 2,001 Participant, 8.75%, due December 15, 1998 1,951 1,951 1,951 Participant, 8.75%, due August 15, 1998 1,570 1,570 1,570 Participant, 9.00%, due July 15, 1998 1,426 1,426 1,426 Participant, 9.00%, due July 15, 1998 1,341 1,341 1,341 Participant, 8.75%, due August 15, 1998 1,227 1,227 1,227 Participant, 9.00%, due May 15, 1998 961 961 961 Participant, 9.00%, due August 15, 1998 414 414 414 ----------- ----------- ----------- Total notes receivable, participant $ 75,394 $ 75,394 $ 75,394 =========== =========== =========== - - ---------------------------------------------------------------------- F - 25
33 FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST ASSETS HELD FOR INVESTMENT December 31, 1995 - - ------------------------------------------------------------------------------- Total Total Number Total Total Realized Number of of Purchase Selling Gain Description of Asset Purchases Sales Price Price (Loss) - - ------------------------------ --------- --------- ----------- ----------- ---------- Franklin IFT Money Market Portfolio 358 178 $ 3,623,549 $ 3,505,215 $ - - - ---------------------------------------------------------------------- F - 26
34 [McGLADREY & PULLEN LOGO] McGLADREY & PULLEN, L.L.P. -------------------------------------------- Certified Public Accountants and Consultants CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the registration statement of First Busey Corporation on Form S-8 (File No. 33-30095) of our report dated April 8, 1996 on our audit of the financial statements of First Busey Corporation Profit Sharing Plan and Trust as of December 31, 1995 and 1994 and for the three years in the period ended December 31, 1995, which are included in the Annual Report on Form 11-K. /s/ McGladrey & Pullen, L.L.P. Champaign, Illinois April 26, 1996 - - ---------------------------------------------------------------------- F - 27
35 EXHIBIT 99.2 FORM 11-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ANNUAL REPORT Pursuant to Section 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 1995 Commission File No. 0-15950 (First Busey Corporation) Commission File No. 33-60402 (the Plan) A. Full title of the plan and the address of the plan, if different from that of the issuer named below: FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST ("the Plan") B. Name of issuer of the securities held pursuant to the plan and the address of its principle executive office: FIRST BUSEY CORPORATION 201 WEST MAIN STREET URBANA, ILLINOIS 61801
36 Required Information Employee Stock Ownership Plan Page ----------- Independent Auditor's Report on the Financial Statements F-1 Financial Statements 1) Statements of Net Assets Available for Plan Benefits F-2 2) Statements of Changes in Net Assets Available for Plan Benefits F-4 - F-5 3) Notes to Financial Statements F-6 - F-10 4) Independent Auditor's Report on the F-11 Supplementary Information 5) Reportable Transactions F-12 6) Party in Interest Transactions F-13 9) Consent of Independent Public Accountants F-14
37 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST FINANCIAL REPORT DECEMBER 31, 1995
38 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST C O N T E N T S - - --------------------------------------------------------------------------- INDEPENDENT AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS 3 - - --------------------------------------------------------------------------- FINANCIAL STATEMENTS Statements of net assets available for benefits 4 Statements of changes in net assets available for benefits 6 and 7 Notes to financial statements 8-12 - - --------------------------------------------------------------------------- INDEPENDENT AUDITOR'S REPORT ON THE SUPPLEMENTARY INFORMATION 13 - - --------------------------------------------------------------------------- SUPPLEMENTARY INFORMATION Reportable transactions 14 Party in interest transactions 15 - - ---------------------------------------------------------------------------
39 INDEPENDENT AUDITOR'S REPORT To the Administrative Committee and Participants First Busey Corporation Employees' Stock Ownership Plan and Trust Urbana, Illinois We have audited the accompanying statements of net assets available for benefits of FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST as of December 31, 1995 and 1994, and the related statements of changes in net assets available for benefits each of the years in the three-year period ended December 31, 1995. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST as of December 31, 1995 and 1994, and the changes in net assets available for benefits for each of the years in the three-year period ended December 31, 1995, in conformity with generally accepted accounting principles. Champaign, Illinois April 8, 1996 - - ---------------------------------------------------------------------- F - 3
40 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 and 1994 - - ------------------------------------------------------------------------------- 1995 1994 ------------------------------------------- ------------------------------------------- Allocated Unallocated Total Allocated Unallocated Total ----------- ----------- ----------- ----------- ----------- ----------- ASSETS: Money market fund $ 9,014 $ 54 $ 9,068 $ - $ 50,000 $ 50,000 Investment in First Busey Corporation Class A common stock, at fair value 6,192,890 1,992,889 8,185,779 5,197,220 2,386,554 7,583,774 ----------- ----------- ----------- ----------- ----------- ----------- Total assets $ 6,201,904 $ 1,992,943 $ 8,194,847 $ 5,197,220 $ 2,436,554 $ 7,633,774 ----------- ----------- ----------- ----------- ----------- ----------- LIABILITIES: Due to First Busey Corporation Profit Sharing Plan & Trust $ - $ - $ - $ - $ 50,000 $ 50,000 Accounts payable - - - 11,458 - 11,458 Interest payable - - - 22,801 - 22,801 Notes payable - 750,000 750,000 - 1,000,000 1,000,000 ----------- ----------- ----------- ----------- ----------- ----------- Total liabilities $ - $ 750,000 $ 750,000 $ 34,259 $ 1,050,000 $ 1,084,259 ----------- ----------- ----------- ----------- ----------- ----------- NET ASSETS AVAILABLE FOR PLAN BENEFITS $ 6,201,904 $ 1,242,943 $ 7,444,847 $ 5,162,961 $ 1,386,554 $ 6,549,515 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements. - - ---------------------------------------------------------------------- F - 441 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS December 31, 1995 and 1994 - - ------------------------------------------------------------------------------- This page left intentionally blank. - - ---------------------------------------------------------------------- F - 5
42 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Years Ended December 31, 1995, 1994 and 1993 - - ------------------------------------------------------------------------------- 1995 -------------------------------------------- Allocated Unallocated Total ----------- ----------- ----------- Investment income: Net change in unrealized appreciation in market value of investments $ 563,245 $ 270,641 $ 833,886 Interest 5,327 54 5,381 Dividends 270,970 - 270,970 Employer contribution 80,000 250,000 330,000 Allocation of First Busey Corporation Class A common stock, at market value 1995 - 24,604 shares 664,306 - 664,306 1994 - 39,367 shares - - - 1993 - 39,365 shares - - - Cash fund allocation - - - ----------- ----------- ----------- Total additions $ 1,583,848 $ 520,695 $ 2,104,543 ----------- ----------- ----------- Interest expense $ 74,683 $ - $ 74,683 Administrative expenses 56,834 - 56,834 Distributions to participants Cash 304 - 304 Stock 1995 - 9,502 shares 230,424 - 230,424 Stock 1994 - 12,539 shares - - - Stock 1993 - 3,847.5 shares - - - Dividend distributions to participants 182,660 - 182,660 Allocation of First Busey Corporation Class A common stock, at market value 1995 - 24,604 shares - 664,306 664,306 1994 - 39,367 shares - - - 1993 - 39,365 shares - - - Cash fund allocation - - - ----------- ----------- ----------- Total deductions $ 544,905 $ 664,306 $ 1,209,211 ----------- ----------- ----------- Net increase (decrease) $ 1,038,943 $ (143,611) $ 895,332 Net assets available for benefits: Beginning of year 5,162,961 1,386,554 6,549,515 ----------- ----------- ----------- End of year $ 6,201,904 $ 1,242,943 $ 7,444,847 =========== =========== ===========
See Notes to Financial Statements. - - ---------------------------------------------------------------------- F - 643 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS Years Ended December 31, 1995, 1994 and 1993 - - ------------------------------------------------------------------------------- 1994 1993 -------------------------------------------- -------------------------------------------- Allocated Unallocated Total Allocated Unallocated Total ----------- ----------- ----------- ----------- ----------- ----------- ALIGN WITH PREVIOUS $ 481,116 $ 378,900 $ 860,016 $ 767,906 $ 912,666 $ 1,680,572 PAGE 533 - 533 385 - 385 252,386 - 252,386 263,141 - 263,141 - 400,000 400,000 - 412,500 412,500 - - - - - - 954,651 - 954,651 - - - - - - 843,754 - 843,754 - 18,682 18,682 900 - 900 ----------- ----------- ----------- ----------- ----------- ----------- $ 1,688,686 $ 797,582 $ 2,486,268 $ 1,876,086 $ 1,325,166 $ 3,201,252 ----------- ----------- ----------- ----------- ----------- ----------- $ 95,432 $ - $ 95,432 $ 93,879 $ - $ 93,879 47,157 - 47,157 40,148 - 40,148 231 - 231 578 - 578 - - - - - - 269,589 - 269,589 - - - - - - 62,842 - 62,842 142,823 - 142,823 120,928 - 120,928 - - - - - - - 954,651 954,651 - - - - - - - 843,754 843,754 18,682 - 18,682 - 900 900 ----------- ----------- ----------- ----------- ----------- ----------- $ 573,914 $ 954,651 $ 1,528,565 $ 318,375 $ 844,654 $ 1,163,029 ----------- ----------- ----------- ----------- ----------- ----------- $ 1,114,772 $ (157,069) $ 957,703 $ 1,557,711 $ 480,512 $ 2,038,223 4,048,189 1,543,623 5,591,812 2,490,478 1,063,111 3,553,589 ----------- ----------- ----------- ----------- ----------- ----------- $ 5,162,961 $ 1,386,554 $ 6,549,515 $ 4,048,189 $ 1,543,623 $ 5,591,812 =========== =========== =========== =========== =========== ===========
See Notes to Financial Statements. - - ---------------------------------------------------------------------- F - 744 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 1. VALUATION OF INVESTMENTS AND INCOME RECOGNITION The common stock of the Company is valued at fair value. As the Company's common stock is traded in the over-the-counter (OTC) market, fair value is determined by the last reported sales price at the valuation date. Dividend income is accrued on the ex-dividend date. Purchases and sales of securities are recorded on a trade-date basis. Realized gains and losses from security transactions are reported on the specific identification cost method. NOTE 2. PLAN DESCRIPTION The following description of the Plan provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan's provisions. General: First Busey Corporation (the Company) established the First Busey Corporation Employees' Stock Ownership Plan and Trust (the Plan) effective as of January 1, 1984. The Plan operates, in relevant part, as a leveraged employee stock ownership plan (ESOP), and is designed to comply with Section 4975(e)(7) and the regulations thereunder of the Internal Revenue Code of 1986, as amended (the Code), and is subject to the applicable provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA). The Plan is a multiple-employer stock ownership plan and is administered by the Company. First Busey Trust & Investment Co., a subsidiary of the Company, is the Plan's Trustee. The Plan purchased Company common shares using the proceeds of bank borrowings guaranteed by the Company, and holds the stock in a trust established under the Plan. The borrowings are to be repaid by fully deductible Company contributions to the trust fund. As the Plan makes each payment of principal, an appropriate percentage of stock will be allocated to eligible employees' accounts in accordance with applicable regulations under the Code. The bank borrowings are collateralized by the unallocated shares of stock and is guaranteed by the Company. The lender has no rights against shares once they are allocated under the ESOP. Accordingly, the financial statements of the Plan for the years 1995 and 1994 present separately the assets and liabilities and changes therein pertaining to: (a) the accounts of employees with vested rights in allocated stock (Allocated) and (b) stock not yet allocated to employees (Unallocated). - - ---------------------------------------------------------------------- F - 8
45 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- The Plan covers all full-time employees of the Company and its participating subsidiaries who have completed six months of service. Participants who do not work full-time or are not employed on the last working day of a Plan year, are generally not eligible for an allocation of Company contributions for such year. No distributions from the Plan will be made until a participant retires, dies (in which case, payment shall be made to his or her beneficiary or, if none, his or her legal representatives), or otherwise terminates employment with the Company. Distributions are made in cash or, if a participant elects, in the form of Company common stock plus cash for any fractional share. Each participant is entitled to exercise voting rights attributable to the shares allocated to his or her account and is notified by the Trustee prior to the time that such rights are to be exercised. The Trustee is not permitted to vote any share for which instructions have not been given by a participant. The Company reserves the right to terminate the Plan at any time, subject to Plan provisions. Upon such termination of the Plan, the interest of each participant in the trust fund will be distributed to such participant or his or her beneficiary at the time prescribed by the Plan terms and the Code. Upon termination of the Plan, the Employee Benefits Committee shall direct the Trustee to pay all liabilities and expenses of the trust fund and to sell shares of financed stock held in the loan suspense account to the extent it determines such sale to be necessary in order to repay the loan. Participant accounts: Each participant's account is credited with an allocation of (a) the employer contributions, (b) Plan earnings and (c) forfeitures of terminated participant's non-vested accounts. Allocations of common stock released and forfeitures are based on the eligible compensation of each participant. Allocations of Plan earnings are based on participant account balances. The benefit to which a participant is entitled is the benefit that can be provided from the participant's account. Vesting: Vesting in the participants' accounts is based on years of continuous service. A participant is 100 percent vested after seven years of credited service. Payment of benefits: Upon termination of service, a participant may elect to receive either a lump-sum amount equal to the value of his or her account, or in installments over a period not longer than the life expectancy of the participant. - - ---------------------------------------------------------------------- F - 9
46 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- Dividends distributed to participants: Dividends on common stock, which are allocated to participants' accounts, are distributed directly to the participant so that the dividends result in income tax deductions for First Busey Corporation. Plan termination: Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of plan termination, participants would become 100 percent vested in their accounts. Presently, there is no intention on the part of the Company to terminate the Plan or discontinue contributions to the Trust. NOTE 3. EMPLOYER CONTRIBUTIONS The Company is obligated to make contributions in cash to the Plan which, when aggregated with the Plan's dividends and interest earnings, equal the amount necessary to enable the Plan to make its regularly scheduled payments of principal and interest due on its debt discussed in Note 6. NOTE 4. ADMINISTRATION OF PLAN ASSETS The Plan's assets, which consist principally of First Busey Corporation Class A common stock, are held by the Trustee of the Plan. Company contributions are held and managed by the Trustee, which invests cash received, interest, and dividend income and makes distributions to participants. The Trustee also administers the payment of interest and principal on the loan, which is reimbursed to the Trustee through contributions as determined by the Company. Certain administrative functions are performed by officers or employees of the Company or its subsidiaries. No such officer or employee receives compensation from the Plan. Administrative expenses for the Trustee's fees are paid directly by the Plan. NOTE 5. INVESTMENT The Plan's investment, at December 31, consists solely of First Busey Corporation Class A common stock as follows: 1995 1994 -------------------------------- -------------------------------- ALLOCATED UNALLOCATED Allocated Unallocated ----------- ----------- ----------- ----------- Number of shares 229,366 73,811 214,318 98,415 =========== =========== =========== =========== Cost $ 2,134,342 $ 686,841 $ 1,994,315 $ 915,791 =========== =========== =========== =========== Fair value $ 6,192,890 $ 1,992,889 $ 5,197,220 $ 2,386,554 =========== =========== =========== =========== - - ---------------------------------------------------------------------- F - 10
47 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 6. NOTES PAYABLE The Plan had the following notes payable as of December 31, 1995 and 1994, secured by 73,811 and 98,415 shares of First Busey Corporation Class A common stock, respectively: 1995 1994 ---------- ------------ American National Bank of Chicago, 7.225%, due January 31, 1996 $ 375,000 $ 500,000 American National Bank of Chicago, 7.4375%, due January 31, 1996 375,000 500,000 ---------- ------------ $ 750,000 $ 1,000,000 ========== ============ Both of the above notes payable were renewed on January 19, 1996, and carry interest rates of LIBOR plus 150 basis points, adjusted quarterly, and have maturity dates of January 31, 1997. NOTE 7. RECONCILIATION OF DIFFERENCES BETWEEN THESE FINANCIAL STATEMENTS AND THE FINANCIAL INFORMATION REQUIRED ON FORM 5500 December 31, 1995 ------------ Net assets available for benefits as presented in these financial statements $ 7,444,847 Amounts allocated to withdrawing participants (318,353) ------------ Net assets available for benefits as presented on Form 5500 $ 7,126,494 ============ Years Ended December 31, 1995 ------------ Net increase in net assets available for benefits as presented in these financial statements $ 895,332 Less amounts allocated to withdrawing participants at the end of the year (318,353) ------------ Net increase in net assets available for benefits as presented on Form 5500 $ 576,979 ============ Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31 but not yet paid as of that date. - - ---------------------------------------------------------------------- F - 11
48 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS - - ------------------------------------------------------------------------------- NOTE 8. INCOME TAX STATUS The Internal Revenue Service has determined and informed the Company by a letter dated March 28, 1996, that the Plan is qualified and the trust established under the Plan is tax-exempt, under the appropriate sections of the Code. NOTE 9. PARTY IN INTEREST TRANSACTIONS Parties in interest include fiduciaries or employees of the plan, any person who provides services to the plan, an employer whose employees are covered by the plan, an employee organization whose members are covered by the plan, a person who owns 50 percent or more of such an employer or employee association, or relatives of such persons just listed. NOTE 10. FORFEITED ACCOUNTS At December 31, 1995, forfeited nonvested accounts totaled $62,473. These accounts will be allocated to participants' accounts. - - ---------------------------------------------------------------------- F - 12
49 INDEPENDENT AUDITOR'S REPORT ON THE SUPPLEMENTARY INFORMATION TO THE ADMINISTRATIVE COMMITTEE AND PARTICIPANTS FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST URBANA, ILLINOIS Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information which follows is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Champaign, Illinois April 8, 1996 - - ---------------------------------------------------------------------- F - 13
50 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST REPORTABLE TRANSACTIONS Year Ended December 31, 1995 - - ------------------------------------------------------------------------------- Total Total Total Total Net Number of Number of Purchase Selling Gain Description Purchases Sales Price Price (Loss) - - --------------------- --------- --------- --------- --------- --------- Franklin IFT Money Market Portfolio 21 42 $ 445,383 $ 474,868 $ - - - ---------------------------------------------------------------------- F - 14
51 FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN AND TRUST PARTY IN INTEREST TRANSACTIONS Year Ended December 31, 1995 - - ------------------------------------------------------------------------------- Description of Transaction Transaction Amount - - --------------------------------------------- ------------------ Management fees paid to First Busey Trust & Investment Co. $ 25,896 Sale of 54 shares of First Busey Corporation Class A common stock to First Busey Corporation 1,458 - - ---------------------------------------------------------------------- F - 15
52 [McGLADREY & PULLEN LOGO] McGLADREY & PULLEN, L.L.P. -------------------------------------------- Certified Public Accountants and Consultants CONSENT OF INDEPENDENT ACCOUNTANTS We consent to the incorporation by reference in the registration statement of First Busey Corporation on Form S-8 (File No. 33-60402) of our report dated April 8, 1996 on our audits of the financial statements of First Busey Corporation Employee Stock Ownership Plan and Trust as of December 31, 1995 and 1994 and for the three years in the period ended December 31, 1995 which are included in the Annual Report on Form 11-K. /s/ McGladrey & Pullen, L.L.P. Champaign, Illinois April 26, 1996 - - ---------------------------------------------------------------------- F - 16