SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20579 ----------------------------- 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 16, 2003 FIRST BUSEY CORPORATION --------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Nevada 0-15950 37-1078406 -------------------- -------------------- -------------------- (State of other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 201 West Main Street, Urbana, Illinois 61801 - ---------------------------------------------- ------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (217) 365-4513
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS 99.1 Press Release, dated April 16, 2003. ITEM 12. DISCLOSURE OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On Wednesday, April 16, 2003, the Registrant issued a press release disclosing financial results for the quarter ended March 31, 2003. 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. -2-
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 thereunto duly authorized. FIRST BUSEY CORPORATION Date: April 16, 2003 By: //Barbara J. Jones/ -------------------- Name: Barbara J. Jones Title: Chief Financial Officer -3-
EXHIBIT INDEX 99.1 Press Release, dated April 16, 2003. -4-
[PHOTO] [FIRST BUSEY CORPORATION LOGO] First Busey Corporation(R) Earnings Release for Quarter Ending March 31, 2003 FINANCIAL HIGHLIGHTS (unaudited) APRIL 16, 2003: Douglas C. Mills, Chairman of the Board and Chief Executive Officer, announced today that First Busey Corporation recorded net income of $4.842 million, or $.35 per diluted share, for the first quarter of 2003, an increase of $152,000 and $.01, respectively, from $4.690 million, or $.34 per diluted share, in the first quarter of 2002. These results represent a return on average assets of 1.38% and a return on average stockholder equity of 16.73% for the first quarter of 2003 compared to 1.48% and 17.85% for the first quarter of 2002. First Busey Corporation's net interest margin declined 17 basis points to 3.70% for the first quarter of 2003 from 3.87% for the first quarter of 2002. Net interest income was $11.825 million for the three months ending March 31, 2003, which represents an increase of $684,000 or 6.14% over net interest income of $11.141 million for the same period in 2002. Total interest income decreased $95,000 due to the decline in the average yields earned on loans and investments which was virtually offset by growth in the average balance of loans outstanding. The average balance of loans outstanding increased $98 million or 10.03% from $985 million for the first quarter of 2002 to $1.083 billion for the first quarter of 2003. Interest expense decreased $779,000 or 10.22% to $6.843 million for the first quarter of 2003 compared to $7.622 million for the first quarter of 2002. This decrease is due to declines in the average rate paid on all categories of interest-bearing liabilities, which was partially offset by growth in the average balance of interest-bearing liabilities. Non-interest income was $6.475 million in the first quarter of 2003 compared to $5.464 million during the first quarter of 2002, an increase of $1.011 million or 18.50%. The increase in non-interest income is due primarily to the growth in gains on the sale of mortgage loans and was partially offset by decreases in revenue from trust and brokerage activities. Non-interest expense was $10.382 million for the first quarter of 2003 compared to $8.995 million for the first quarter of 2002, an increase of $1.387 million or 15.42%. The increase is due primarily to increases in ORE expenses and valuation adjustments, higher salaries and wages due to higher commissions on mortgage originations, and an increase in data processing expenses. Three Month Ended March 31 2003 2002 % Change - ------------------------------------------------------------------------------------ (in thousands except per share data) EARNINGS & PER SHARE DATA Net Income $ 4,842 $ 4,690 3.2% Basic earnings per share 0.36 0.35 2.9% Diluted earnings per share 0.35 0.34 2.9% Dividends per share 0.17 0.15 13.3% - ------------------------------------------------------------------------------------ AVERAGE BALANCES Assets $ 1,423,030 $ 1,286,736 10.6% Investment securities 237,035 201,773 17.5% Loans 1,083,380 984,610 10.0% Earnings assets 1,332,042 1,201,484 10.9% Deposits 1,190,706 1,086,082 9.6% Stockholders' equity 117,400 106,525 10.2% - ------------------------------------------------------------------------------------ PERFORMANCE RATIOS Return on average assets 1.38% 1.48% Return on average equity 16.73% 17.85% Net interest margin 3.70% 3.87% Efficiency ratio 55.74% 53.34% - ------------------------------------------------------------------------------------ LOAN PERFORMANCE Net credit losses $ 12 $ 372 Accruing loans 90+ days past due 4,499 1,267 Nonaccrual loans 990 4,886 Foreclosed assets 5,443 1,597
CONSOLIDATED BALANCE SHEETS (unaudited) March 31, 2003 2002 - -------------------------------------------------------------------------------- (in thousands) ASSETS Cash and due from banks $ 48,233 $ 30,309 Federal funds sold 18,500 -- Investment securities 233,498 208,125 Loans 1,099,735 985,959 Less allowance for loan losses 16,048 13,881 Net loans $ 1,083,687 $ 972,078 Premises and equipment, net 26,846 28,511 Goodwill and other intangibles 9,741 10,392 Other assets 33,637 27,303 - -------------------------------------------------------------------------------- TOTAL ASSETS $ 1,454,142 $ 1,276,718 - -------------------------------------------------------------------------------- LIABILITIES & STOCKHOLDERS' EQUITY Non-interest bearing deposits $ 154,386 $ 127,621 Interest bearing deposits 1,058,526 946,370 Total deposits $ 1,212,912 $ 1,073,991 Fed funds purchased & securities sold under agreements to repurchase 9,005 7,400 Short-term borrowings -- 1,000 Long-term debt 77,759 53,021 Company obligated mandatorily redeemable preferred securities 25,000 25,000 Other liabilities 10,142 8,683 - -------------------------------------------------------------------------------- TOTAL LIABILITIES $ 1,334,818 $ 1,169,095 - -------------------------------------------------------------------------------- Common stock $ 6,291 $ 6,291 Surplus 20,977 20,947 Retained earnings 94,176 84,511 Other comprehensive income 10,267 7,880 Treasury stock (10,546) (9,811) Unearned ESOP shares (1,759) (2,021) Deferred compensation for stock grants (82) (174) - -------------------------------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY $ 119,324 $ 107,623 - -------------------------------------------------------------------------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 1,454,142 $ 1,276,718 - -------------------------------------------------------------------------------- CONDENSED CONSOLIDATED Three Months Ended STATEMENTS OF INCOME (unaudited) March 31, 2003 2002 - -------------------------------------------------------------------------------- (in thousands, except per share data) Interest and fees on loans $16,485 $16,404 Interest on investment securities 2,150 2,301 Other interest income 33 58 - -------------------------------------------------------------------------------- TOTAL INTEREST INCOME $18,668 $18,763 Interest on deposits $ 5,424 $ 6,265 Interest on short-term borrowings 45 139 Interest on long-term debt 1,374 1,218 - -------------------------------------------------------------------------------- TOTAL INTEREST EXPENSE $ 6,843 $ 7,622 Provision for loans losses 600 565 - -------------------------------------------------------------------------------- NET INTEREST INCOME AFTER PROVISION $11,225 $10,576 Trust fees $ 1,107 $ 1,250 Commissions and brokers' fees 465 541 Fees for customer services 2,143 1,978 Security gains, net 183 274 Other 2,577 1,421 - -------------------------------------------------------------------------------- TOTAL NON-INTEREST INCOME $ 6,475 $ 5,464 Salaries and employee benefits $ 5,651 $ 5,229 Net occupancy expense of bank premises 815 775 Furniture and equipment expenses 682 832 Other operating expenses 3,234 2,159 - -------------------------------------------------------------------------------- TOTAL NON-INTEREST EXPENSE $10,382 $ 8,995 Income before income taxes $ 7,318 $ 7,045 Income taxes 2,476 2,355 - -------------------------------------------------------------------------------- NET INCOME $ 4,842 $ 4,690 - -------------------------------------------------------------------------------- COMMON SHARE DATA Book value $ 8.75 $ 7.87 Tangible book value $ 8.03 $ 7.11 Average number of shares outstanding 13,665 13,657 Endings number of shares outstanding 13,640 13,669 CORPORATE PROFILE First Busey Corporation is a financial holding company headquartered in Urbana, Illinois. First Busey Corporation has two wholly owned banking subsidiaries with locations in three states. Busey Bank is headquartered in Urbana, Illinois and has eighteen banking centers serving Champaign, McLean and Ford Counties in Illinois. Busey Bank also has a banking center in Indianapolis, Indiana and a loan production office in Ft. Myers, Florida. Total assets of Busey Bank were $1.4 billion as of March 31, 2003. Busey Bank Florida is a federal thrift charter headquartered in Ft. Myers, Florida with a second banking center located in Cape Coral, Florida. Total assets of Busey Bank Florida were $85 million as of March 31, 2003. Busey provides electronic delivery of financial services through Busey e-bank, www.busey.com. Busey Investment Group is a wholly owned subsidiary of First Busey Corporation and owns three subsidiaries. First Busey Trust & Investment Co. specializes in asset management and trust services with approximately $1 billion in assets under care. First Busey Securities, Inc. (member NASD/SIPC) is a full-service broker/dealer subsidiary with more than $500 million in assets under care. Busey Insurance Services, Inc. provides personal insurance products and specializes in long-term healthcare insurance. First Busey Corporation Common Stock is traded on the Nasdaq National Market under the symbol "BUSE." First Busey Corporation has a Repurchase Program in effect under which it is authorized to purchase up to 500,000 shares of stock, of which 276,212 shares have already been purchased. BUSE closed on March 31, 2003 at $23.40, an increase of 1.47% from the closing price of $23.06 on December 31, 2002.