CHAMPAIGN, Ill., Jan. 24, 2012 (GLOBE NEWSWIRE) --
Message from our President & CEO
First Busey Corporation's (Nasdaq:BUSE) net income for the year ended December 31, 2011 was $29.9 million and net income available to common stockholders was $24.5 million, or $0.29 per fully-diluted common share, as compared to net income of $23.2 million and net income available to common stockholders of $18.1 million, or $0.27 per fully-diluted common share, for the year ended December 31, 2010. Growth in earnings for the year was driven by improved asset quality which allowed us to reduce the Company's loan loss provision expense by $22.0 million from 2010.
We made great strides in 2011; we strengthened our balance sheet and increased our net income. On August 25, 2011, the Company announced that it had exited the Troubled Asset Relief Program and issued approximately $72.6 million in preferred stock to the U.S. Department of the Treasury through the Small Business Lending Fund. As a participant in the Small Business Lending Fund, we will strive to further enhance our business lending efforts, especially to qualifying small businesses. At the end of the fourth quarter of 2011, the bank continued to exceed the capital adequacy requirements to be considered "well-capitalized" under the regulatory guidance.
Tangible Common Equity (TCE) strengthened to $306.5 million at December 31, 2011 from $304.2 million at September 30, 2011 and $256.2 million at December 31, 2010. As a percentage of Tangible Assets, TCE expanded upward to 9.09% at December 31, 2011 from 9.05% at September 30, 2011 and 7.17% at December 31, 2010.
Net income for the fourth quarter of 2011 was $5.7 million and net income available to common stockholders was $4.5 million, or $0.05 per fully-diluted common share, as compared to net income of $7.3 million and net income available to common stockholders of $6.0 million, or $0.09 per fully-diluted common share, for the comparable period in 2010. This decrease in net income resulted in part from increased spending on salaries and wages during the quarter. We expect this trend of increased spending to continue in 2012, as we begin our efforts to spur organic growth by investing in our existing employees and adding new talent to our organization. Earnings per fully-diluted common share in comparison to the prior year were also impacted by an increase of $7.5 million in common stock related to a December 2010 capital raise, and the subsequent conversion of preferred stock to common in March 2011.
On January 27, 2012, we will pay a cash dividend of $0.04 per common share to stockholders of record as of January 20, 2012.
Asset Quality: Our non-performing loans at December 31, 2011 demonstrated consistent improvement for the eighth consecutive quarter. In addition, they are down significantly from the peak at September 30, 2009, when non-performing loans totaled $172.5 million and the allowance for loan losses to non-performing loans ratio was 69.58%. We take great pride in the past and continued efforts to move these metrics toward optimal levels. We expect continued gradual improvement in our overall asset quality during 2012; however, this continues to be dependent upon market specific economic conditions. The key metrics are as follows:
- Illinois non-performing loans decreased to $23.0 million at December 31, 2011 from $25.3 million at September 30, 2011 and $38.3 million at December 31, 2010.
- Florida non-performing loans decreased to $10.8 million at December 31, 2011 from $13.2 million at September 30, 2011 and $23.8 million at December 31, 2010.
- Indiana non-performing loans slightly increased to $4.7 million at December 31, 2011 from $4.4 million at September 30, 2011, but decreased from $6.0 million at December 31, 2010.
Operating Performance: Our net income decreased to $5.7 million in the fourth quarter of 2011 as compared to $7.6 million in the third quarter of 2011 and $7.3 million in the fourth quarter of 2010. The decline in net income was primarily related to declines in net interest income and in the gain on sales of residential mortgage loans, increased salary and wages and employee benefits, and increased other operating expenses which are summarized below:
Other significant operating performance items were:
Balance sheet strength, profitability and growth – in that order.
As indicated by our fourth quarter results, we have begun execution on our promise to invest in associates with the goal of achieving meaningful organic growth while maintaining our priorities of balance sheet strength and profitability. Supported by new tools and techniques derived from our B5 initiative which was launched at the beginning of this year, front line associates have improved opportunities to deepen our relationship value while listening to our customers and providing appropriate solutions to their financial needs. Traction from this initiative is evident in growth for the current year in core non-interest bearing deposits and fees for customer services.
Through the continued application of B5 concepts and expansion of our talent base, we plan to improve penetration in our current markets and widen our sphere of influence to surrounding areas in the coming year. We also continue to be well positioned to explore external growth opportunities.
Capital strength, consistent delivery of positive earnings over the past eight quarters, and excellent progress in asset quality provides a solid foundation to embrace bold changes for the future. We are diligently formulating plans to initiate significant investment in our commercial banking and cash management businesses, as well as in Busey Wealth Management and FirsTech, to support a diversified revenue stream. In addition, credit and data processing support will be expanded in a consistent theme of maintaining high-quality standards to support continued balance sheet strength, while seeking efficient technology solutions to drive better business decisions.
We believe our history of successfully serving mid-sized communities, alongside the addition of new concepts and competencies, will provide a unique advantage to 'out-big the small' and 'out-small the big' financial industry competitors by offering customers outstanding service via the Busey Promise. Our track record for doing what we say we're going to do is well documented through prior period earnings reports. We believe the combined power of investment in our people and cutting edge client support processes will lead us to build quality earning assets, and provide a solid basis for long term strength, profitability, and growth in the years ahead.
We thank our associates for their efforts, our customers for their business and you, our stockholders, for your continued support of Busey.
\s\ Van A. Dukeman
President & Chief Executive Officer
First Busey Corporation
|SELECTED FINANCIAL HIGHLIGHTS|
|(dollars in thousands, except per share data)|
|Three Months Ended||Year Ended|
|December 31,||September 30,||December 31,||December 31,||December 31,|
|EARNINGS & PER SHARE DATA|
|Income available to common stockholders1||4,512||6,521||5,984||24,531||18,060|
|Fully-diluted earnings per share||0.05||0.08||0.09||0.29||0.27|
|Cash dividends paid per share||0.04||0.04||0.04||0.16||0.16|
|Net income by operating segment|
|Busey Wealth Management||678||749||710||3,095||3,283|
|Stockholders' equity – common||334,179||331,387||237,485||320,315||233,152|
|Tangible stockholders' equity – common||296,924||293,243||196,616||281,740||190,744|
|Return on average assets3||0.53%||0.76%||0.67%||0.71%||0.49%|
|Return on average common equity3||5.36%||7.81%||10.00%||7.66%||7.75%|
|Return on average tangible common equity3||6.03%||8.82%||12.07%||8.71%||9.47%|
|Net interest margin3||3.44%||3.57%||3.68%||3.52%||3.58%|
|Non-interest revenue as a % of total revenues2||35.92%||34.68%||36.92%||34.77%||34.51%|
|Allowance for loan losses||58,506||63,915||76,038|
|Allowance for loan losses to loans||2.85%||3.04%||3.21%|
|Allowance as a percentage of non-performing loans||151.91%||148.73%||111.64%|
|Loans 90+ days past due||173||986||2,618|
|Downstate Illinois/ Indiana||27,748||29,733||44,281|
|Loans 30-89 days past due||4,712||8,247||23,477|
|Other non-performing assets||8,452||11,577||9,160|
|1 Net income available to common stockholders, net of preferred dividend and TARP discount accretion|
|2 Net of interest expense, excludes security gains|
|3 Quarterly ratios annualized and calculated on net income available to common stockholders|
|4 Net of security gains and intangible charges|
|Condensed Consolidated Balance Sheets|
|(Unaudited, in thousands, except per share data)||December 31,||September 30,||December 31,|
|Cash and due from banks||$315,053||$289,144||$418,965|
|Net loans, including loans held for sale||1,992,838||2,035,399||2,292,739|
|Premises and equipment||69,398||70,179||73,218|
|Goodwill and other intangibles||36,704||37,589||40,242|
|Liabilities & Stockholders' Equity|
|Non-interest bearing deposits||$503,118||$467,775||$460,661|
|Securities sold under agreements to repurchase||127,867||129,905||138,982|
|Junior subordinated debt owed to unconsolidated trusts||55,000||55,000||55,000|
|Total stockholders' equity||$409,267||$407,466||$420,505|
|Total liabilities & stockholders' equity||$3,402,122||$3,392,885||$3,605,003|
|Per Share Data|
|Book value per common share||$3.89||$3.87||$3.65|
|Tangible book value per common share1||$3.46||$3.43||$3.14|
|Ending number of common shares outstanding||86,617||86,597||79,100|
|1 Total common equity less goodwill and other intangibles divided by shares outstanding as of period end.|
|Condensed Consolidated Statements of Operations|
|(Unaudited, in thousands, except per share data)||Three Months Ended December 31,||Year Ended December 31,|
|Interest and fees on loans||$26,867||$32,954||$114,791||$138,860|
|Interest on investment securities||4,362||4,085||18,028||17,323|
|Total interest income||$31,229||$37,039||$132,819||$156,183|
|Interest on deposits||4,124||6,170||18,660||32,714|
|Interest on short-term borrowings||78||156||405||640|
|Interest on long-term debt||230||617||1,442||2,930|
|Junior subordinated debt owed to unconsolidated trusts||319||685||1,919||2,748|
|Total interest expense||$4,751||$7,628||$22,426||$39,032|
|Net interest income||$26,478||$29,411||$110,393||$117,151|
|Provision for loan losses||5,000||10,300||20,000||42,000|
|Net interest income after provision for loan losses||$21,478||$19,111||$90,393||$75,151|
|Commissions and brokers' fees||443||447||1,858||1,756|
|Fees for customer services||4,438||4,466||17,914||16,592|
|Gain on sales of loans||3,501||6,146||10,945||16,130|
|Net security gains (losses)||172||(7)||170||1,018|
|Total non-interest income||$15,012||$17,205||$59,015||$62,753|
|Salaries and wages||12,666||10,948||43,344||41,219|
|Net occupancy expense||2,135||2,188||8,897||9,135|
|Furniture and equipment expense||1,319||1,360||5,277||5,962|
|Data processing expense||2,210||2,122||8,635||7,977|
|Other operating expenses||5,449||3,520||19,677||18,286|
|Total non-interest expense||$27,991||$25,288||$104,565||$105,210|
|Income before income taxes||$8,499||$11,028||$44,843||$32,694|
|Preferred stock dividends and discount accretion||$1,234||$1,322||$5,342||$5,170|
|Income available to common stockholders||$4,512||$5,984||$24,531||$18,060|
|Per Share Data|
|Basic earnings per common share||$0.05||$0.09||$0.29||$0.27|
|Fully-diluted earnings per common share||$0.05||$0.09||$0.29||$0.27|
|Diluted average common shares outstanding||86,610||66,503||85,312||66,397|
First Busey Corporation is a $3.4 billion financial holding company headquartered in Champaign, Illinois. Busey Bank, First Busey Corporation's wholly-owned bank subsidiary, is headquartered in Champaign, Illinois and has thirty-three banking centers serving downstate Illinois, a banking center in Indianapolis, Indiana, and seven banking centers serving southwest Florida. Busey Bank had total assets of $3.3 billion as of December 31, 2011.
Busey Wealth Management is a wholly-owned subsidiary of First Busey Corporation. Through Busey Trust Company, Busey Wealth Management delivers trust, asset management, retail brokerage and insurance products and services. As of December 31, 2011, Busey Wealth Management managed approximately $3.8 billion in assets.
First Busey Corporation owns a retail payment processing subsidiary, FirsTech, Inc., which processes over 22 million transactions per year through online bill payments, lockbox processing and walk-in payments through its 3,100 agent locations in 38 states.
Busey Bank provides electronic delivery of financial services through its website, www.busey.com.
Special Note Concerning Forward-Looking Statements
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "plan," "intend," "estimate," "may," "will," "would," "could," "should" or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local and national economy; (ii) the economic impact of any future terrorist threats or attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business; (iv) changes in interest rates and prepayment rates of the Company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the loss of key executives or employees; (viii) changes in consumer spending; (ix) unexpected results of acquisitions; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission.
David B. White, CFO 217-365-4047
First Busey Corporation
Urbana, Illinois, UNITED STATES
David B. White, CFO 217-365-4047
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