================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 18, 2006
FIRST BUSEY CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Nevada 0-15959 37-1078406
- ------------------------------ ------------ -------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
201 West Main Street, Urbana, IL 61801
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (217) 365-4513
--------------------------------------------------------------
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13a-4(c))
================================================================================
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
On Tuesday, July 18, 2006, the Registrant issued a press release disclosing
financial results for the quarter ended June 30, 2006. The press release is made
part of this Form and is attached as Exhibit 99.1.
The press release made a part of this Form includes forward looking statements
that are intended to be covered by the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward looking statements
include but are not limited to comments with respect to the objectives and
strategies, financial condition, results of operations and business of the
Registrant.
These forward looking statements involve numerous assumptions, inherent risks
and uncertainties, both general and specific, and the risk that predictions and
other forward looking statements will not be achieved. The Registrant cautions
you not to place undue reliance on these forward looking statements as a number
of important factors could cause actual future results to differ materially from
the plans, objectives, expectations, estimates and intentions expressed in such
forward looking statements.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d) Exhibits:
99.1 Press Release, dated July 18, 2006.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: July 18, 2006 FIRST BUSEY CORPORATION
By: /s/ Barbara J. Harrington
--------------------------
Name: Barbara J. Harrington
Title: Chief Financial Officer
EXHIBIT INDEX
99.1 Press Release, dated July 18, 2006.
Exhibit 99.1
FIRST BUSEY CORPORATION EARNINGS RELEASE FOR QUARTER ENDING JUNE 30, 2006
URBANA, Ill., July 18 /PRNewswire-FirstCall/ --
FINANCIAL HIGHLIGHTS
Net income increased $759,000 or 12.1% to $7,035,000 for the quarter ending
June 30, 2006, as compared to $6,276,000 for the comparable period in 2005. For
the quarter ending June 30, 2006, earnings per share on a fully- diluted basis
were $0.33, an increase of $0.02 or 6.5% from $0.31 for the comparable period in
2005. On a year-to-date basis, net income increased $1,090,000 or 8.5% to
$13,902,000 as compared to $12,812,000 for the comparable period in 2005. For
the six-month period ending June 30, 2006, earnings per share on a fully-diluted
basis were $0.65, an increase of $0.03 or 4.8% from $0.62 for the comparable
period in 2005.
Net interest income increased $2,102,000 or 12.3% to $19,251,000 in the
second quarter of 2006 compared to $17,149,000 in the comparable quarter in
2005. Interest income increased $8,206,000 during the second quarter of 2006
compared to the same period in 2005 due primarily to loan growth combined with
higher yields on investment securities and outstanding loans. Interest expense
increased $6,104,000 during the second quarter of 2006 compared to the same
period in 2005. The increase in interest expense reflects the combination of
growth in deposits and long-term debt and a market driven increase in deposit
and borrowing rates. The increase in long-term debt is primarily associated with
the July 2005, acquisition of Tarpon Coast National Bank.
Provision for loan losses was $300,000 during the second quarter of 2006
compared to $1,425,000 in the comparable period of 2005. As a percentage of
total outstanding loans, the allowance for loan losses was 1.27% as of June 30,
2006 and 1.34% as of June 30, 2005.
Non-interest income increased $940,000 or 15.8% to $6,904,000 during the
second quarter of 2006. Growth in non-interest income is due primarily to growth
in customer service fees, trust fees, and net security gains.
Non-interest expense increased $2,635,000 or 21.7% to $14,787,000 during
the quarter ended June 30, 2006, due primarily to increased operating costs and
amortization expense associated with growth in the Florida market.
First Busey Statutory Trust IV issued $30,000,000 trust preferred
securities on June 15, 2006, for the primary purpose of redeeming outstanding
trust preferred securities under First Busey Capital Trust I in the amount of
$25,000,000. The annual interest rate under the new securities is fixed for five
years at 6.94% versus 9.00% on the redeemed securities. The offering and
associated lower interest rate provides an additional $5,000,000 in liquidity
with an approximate annual after-tax interest expense reduction of $90,500.
FINANCIAL SUMMARY
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
(in thousands, except per share data)
Earnings & Per Share Data
Net income $ 7,035 $ 6,276 $ 13,902 $ 12,812
Basic earnings per share 0.33 0.31 0.65 0.63
Fully diluted earnings per share 0.33 0.31 0.65 0.62
Dividends per share 0.16 0.14 0.32 0.28
Average Balances
Assets $ 2,297,781 $ 2,014,470 $ 2,276,421 $ 2,000,229
Investment securities 324,806 310,795 328,351 319,349
Loans 1,791,837 1,553,819 1,770,244 1,522,930
Earning assets 2,122,695 1,880,471 2,104,425 1,865,819
Deposits 1,820,999 1,603,725 1,807,986 1,590,417
Stockholders' equity 171,943 140,684 171,088 139,587
Performance Ratios
Return on average assets 1.23% 1.25% 1.23% 1.29%
Return on average equity 16.41% 17.89% 16.39% 18.51%
Net interest margin 3.74% 3.74% 3.72% 3.69%
Efficiency ratio 55.90% 51.45% 55.58% 50.87%
Loan Performance
Net credit losses $ 402 $ 87 $ 498 $ 213
Accruing loans 90+ days past due 1,347 1,270 1,347 1,270
Non-accrual loans 4,656 1,880 4,656 1,880
Foreclosed assets 561 3,811 561 3,811
BUSE Stock Performance
First Busey Corporation began trading on the Nasdaq Stock Market on October
1, 1998. Below is information for BUSE representing the annualized total return
as compared to other indices for the 5 year period ending June 30, 2006.
As of June 30, 2006:
Closing Price $ 20.47
Price/earnings ratio 14.83x
Price/book ratio 252%
52-week price range $ 18.03 - $ 21.25
Book value per share $ 8.11
YTD dividend per share $ 0.32
Annualized total return for the 5 year period ending June 30, 2006:
BUSE 13.66%
S&P 500 Index 2.49%
NASDAQ Composite 0.86%
CONSOLIDATED BALANCE SHEETS (unaudited)
June 30,
----------------------------
2006 2005
------------ ------------
(in thousands, except per
share data)
Assets
Cash and due from banks $ 61,099 $ 55,611
Federal funds sold - 1,600
Investment securities 319,984 305,991
Loans 1,839,443 1,575,742
Less allowance for loan losses (23,392) (21,119)
Net loans $ 1,816,051 $ 1,554,623
Premises and equipment, net 40,799 27,635
Goodwill and other intangibles 58,804 35,247
Other assets 45,638 47,155
Total assets $ 2,342,375 $ 2,027,862
Liabilities & Stockholders' Equity
Non-interest bearing deposits $ 251,544 $ 205,212
Interest-bearing deposits 1,610,657 1,427,502
Total deposits $ 1,862,201 $ 1,632,714
Federal funds purchased & securities
sold under agreements to repurchase 68,497 37,532
Short-term borrowings - 1,000
Long-term debt 168,863 151,801
Junior subordinated debt owed to
unconsolidated trusts 55,000 50,000
Other liabilities 13,907 10,941
Total liabilities $ 2,168,468 $ 1,883,988
Common stock $ 22 $ 21
Common stock to be issued 292 -
Surplus 45,103 28,147
Retained earnings 136,820 121,453
Other comprehensive income 5,459 7,744
Treasury stock (11,729) (11,026)
Unearned ESOP shares (2,058) (2,456)
Deferred compensation for stock grants (2) (9)
Total stockholders' equity $ 173,907 $ 143,874
Total liabilities & stockholders' equity $ 2,342,375 $ 2,027,862
Per Share Data
Book value per share $ 8.11 $ 6.99
Tangible book value per share $ 5.37 $ 5.28
Ending number of shares outstanding 21,444,766 20,592,251
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
2006 2005 2006 2005
------------ ------------ ------------ ------------
(in thousands, except per share data)
Interest and fees on
loans $ 32,465 $ 24,921 $ 62,447 $ 47,783
Interest on investment securities 3,157 2,501 6,282 5,042
Other interest income 69 63 122 223
Total interest income $ 35,691 $ 27,485 $ 68,851 $ 53,048
Interest on deposits $ 12,713 $ 7,671 $ 24,044 $ 14,446
Interest on short-term borrowings 817 352 1,305 581
Interest on long-term debt 1,864 1,511 3,714 3,052
Junior subordinated debt
owed to unconsolidated
trusts 1,046 802 2,039 1,559
Total interest expense $ 16,440 $ 10,336 $ 31,102 $ 19,638
Net interest income $ 19,251 $ 17,149 $ 37,749 $ 33,410
Provision for loans
losses 300 1,425 700 2,115
Net interest income
after provision $ 18,951 $ 15,724 $ 37,049 $ 31,295
Trust fees $ 1,642 $ 1,471 $ 3,158 $ 2,911
Commissions and brokers'
fees 710 525 1,379 1,051
Fees for customer
services 2,802 2,519 5,338 4,852
Gain on sale of loans 538 589 1,072 1,012
Net security gains 862 250 1,086 412
Other 350 610 1,044 1,281
Total non-interest
income $ 6,904 $ 5,964 $ 13,077 $ 11,519
Salaries and wages $ 6,772 $ 5,438 $ 13,269 $ 10,635
Employee benefits 1,445 1,175 2,948 2,379
Net occupancy expense 1,257 1,121 2,504 2,068
Furniture and equipment
expense 948 743 1,748 1,426
Data processing expense 490 578 894 1,067
Amortization expense 352 195 704 390
Other operating expenses 3,523 2,902 6,863 5,436
Total non-interest
expense $ 14,787 $ 12,152 $ 28,930 $ 23,401
Income before income
taxes $ 11,068 $ 9,536 $ 21,196 $ 19,413
Income taxes 4,033 3,260 7,294 6,601
Net Income $ 7,035 $ 6,276 $ 13,902 $ 12,812
Per Share Data
Basic earnings per share $ 0.33 $ 0.31 $ 0.65 $ 0.63
Fully-diluted earnings per share $ 0.33 $ 0.31 $ 0.65 $ 0.62
Diluted average shares
outstanding 21,433,249 20,514,271 21,446,704 20,549,358
CORPORATE PROFILE
First Busey Corporation (Nasdaq: BUSE) is a financial holding company
headquartered in Urbana, Illinois. First Busey Corporation has two wholly- owned
banking subsidiaries with locations in three states. Busey Bank is headquartered
in Urbana, Illinois and has twenty-two banking centers serving Champaign,
McLean, Ford, Peoria, and Tazewell Counties in Illinois. Busey Bank also has a
banking center in Indianapolis, Indiana, and a loan production office in Ft.
Myers, Florida. On June 30, 2006, Busey Bank had total assets of $1.9 billion.
On July 29, 2005, First Busey Corporation acquired Tarpon Coast Bancorp, Inc.
and its primary subsidiary, Tarpon Coast National Bank, Port Charlotte, Florida.
Busey Bank Florida and Tarpon Coast National Bank merged at the close of
business on February 17, 2006, and the resultant bank is Busey Bank, N.A. Busey
Bank N.A. is a federally-chartered bank headquartered in Port Charlotte,
Florida, with eight banking centers serving Lee, Charlotte, and Sarasota
Counties in Southwest Florida. Busey Bank N.A. had total assets of $432 million
as of June 30, 2006. Busey provides electronic delivery of financial services
through Busey e-bank, http://www.busey.com .
Busey Investment Group is a wholly-owned subsidiary of First Busey
Corporation and owns three subsidiaries. First Busey Trust & Investment Co.
specializes in asset management and trust services. First Busey Securities, Inc.
(member NASD/SIPC) is a full-service broker/dealer subsidiary. Busey Insurance
Services, Inc. is a provider of personal insurance products. Busey Investment
Group has approximately $2.3 billion in assets under care.
First Busey Corporation's common stock is traded on the Nasdaq Stock
Exchange under the symbol "BUSE." First Busey Corporation has a repurchase
program in effect under which it is authorized to purchase up to 750,000 shares
of stock.
SOURCE First Busey Corporation
-0- 07/18/2006
/CONTACT: Barbara Harrington, Chief Financial Officer of First Busey
Corporation, +1-217-365-4302/
/Web site: http://www.busey.com /
(BUSE)