Questions? +1 (202) 335-3939 Login
Trusted News Since 1995
A service for global professionals · Thursday, March 28, 2024 · 699,427,153 Articles · 3+ Million Readers

First Busey Announces 2018 First Quarter Earnings

Message from our President & CEO

Positive advances in the first quarter of 2018 from the comparable quarter of the prior year:

  • End of quarter total assets of $7.779 billion, an increase of 43.0%
  • Net income of $21.9 million an increase of 44.5% and adjusted net income1 of $24.9 million an increase of 57.8%
  • Earnings per share of $0.45 per diluted common share and adjusted earnings of $0.51 per diluted common share
  • Net interest income of $59.8 million, an increase of 42.2%
  • End of period portfolio loans at $5.531 billion, an increase of 42.8%
  • End of period non-interest bearing deposits at $1.651 billion, an increase of 36.9%

CHAMPAIGN, Ill., April 24, 2018 (GLOBE NEWSWIRE) -- First Busey Corporation’s (Nasdaq:BUSE) (the “Company”) net income for the first quarter of 2018 was $21.9 million, or $0.45 per diluted common share. The Company reported net income of $12.3 million, or $0.25 per diluted common share for the fourth quarter of 2017 and net income of $15.2 million, or $0.39 per diluted common share for the first quarter of 2017.  Adjusted net income1 for the first quarter of 2018 was $24.9 million, or $0.51 per diluted common share compared to $22.5 million, or $0.46 per diluted common share, for the fourth quarter of 2017 and $15.8 million, or $0.41 per diluted common share, for the first quarter of 2017.

In addition to the Company’s organic growth, first quarter of 2018 results compared to the first quarter of 2017 benefitted from the acquisition of First Community Financial Partners, Inc. (“First Community”), since the closing of the transaction on July 2, 2017 and Mid Illinois Bancorp, Inc. (“Mid Illinois”), the holding company of South Side Trust & Savings Bank (“South Side”) of Peoria, since the closing of the transaction on October 1, 2017.

For the first quarter of 2018, return on average assets and return on average tangible common equity was 1.16% and 14.18%, respectively, on a basis in accordance with accounting principles generally accepted in the United States of America (“GAAP”).  Based on adjusted net income1, return on average assets was 1.32% and return on average tangible common equity was 16.13% for the same period. 

The Company views certain non-operating items including, but not limited to, acquisition and restructuring charges, as adjustments to net income.  Non-operating adjustments for the first quarter of 2018 include $1.7 million in compensation and severance and $2.3 million in legal, data processing conversion, and other expenses related to acquisitions.  The reconciliation of Non-GAAP measures (including adjusted net income, adjusted efficiency ratio, adjusted return on average assets (“ROA”), return on average tangible common equity, tangible book value and tangible book value per share), which the Company believes facilitates the assessment of its banking operations and peer comparability, is included in tabular form at the end of this release.

1 Adjusted net income, a Non-GAAP financial measure. See “Non-GAAP Financial Information” below for reconciliation

Overview and Strategy:

We continue to focus on our Company’s organic growth and to evaluate and execute on acquisitions which fit our strategy. We are pleased to have completed the merger of South Side at the close of business on March 16, 2018.  The addition of South Side has enhanced the Company’s deposit, commercial banking and trust and investment presence in the greater Peoria area. 

In the first quarter of 2018, we continued to emphasize our key priorities - balance sheet strength, profitability and growth -achieved within a framework of safety and soundness. Our capital position remains strong and we continue to focus on a sound credit foundation.  We believe our emphasis on commercial banking and wealth management, supplemented by our remittance processing activities will drive growth in 2018 and beyond.

Busey recently received its third consecutive honor as one of the best places to work voted on by associates. The 2018 Best Places to Work in Illinois award program, by Best Companies Group and Daily Herald Business Ledger, identifies, recognizes and honors the best places of employment in Illinois – benefiting the state’s economy, workforce and businesses.

Busey takes pride in its culture and its commitment to the communities we serve. We are grateful to you for allowing us the opportunity to serve you and your community.

/s/ Van A. Dukeman
President & Chief Executive Officer
First Busey Corporation



 
SELECTED  FINANCIAL HIGHLIGHTS1
(dollars in thousands, except per share data)
 
  As of and for the
  Three Months Ended
  March 31, December 31, September 30, March 31,
  2018 2017 2017 2017
EARNINGS & PER SHARE DATA        
Net income $   21,917   $   12,293   $   18,784   $   15,170  
Revenue2     82,243       86,607       76,488       61,170  
Diluted earnings per share   0.45     0.25     0.41       0.39  
Cash dividends paid per share   0.20     0.18     0.18       0.18  
         
Net income by operating segment        
  Banking $   21,845   $   16,158   $   18,942   $   14,749  
  Remittance Processing    953      440      505      554  
  Wealth Management   2,764     1,469     1,237       1,848  
         
AVERAGE BALANCES        
Cash and cash equivalents $   227,055   $   256,626   $   210,980   $   171,684  
Investment securities   1,310,902     1,223,103     1,009,355       810,248  
Loans held for sale   39,294     109,336     127,369     138,861  
Portfolio loans   5,507,860     5,457,077     5,035,025     3,861,937  
Interest-earning assets   6,976,383     6,932,750     6,282,725      4,903,639  
Total assets   7,663,899     7,632,019     6,861,377     5,289,980  
         
Non-interest bearing deposits   1,497,136     1,516,233     1,328,770       1,066,978  
Interest-bearing deposits   4,568,160     4,434,492     4,081,753     3,250,777  
Total deposits   6,065,296     5,950,725     5,410,523     4,317,755  
Securities sold under agreements to repurchase   258,049     294,389     215,776       165,785  
Interest-bearing liabilities   5,175,228     5,126,815     4,665,939     3,587,710  
Total liabilities   6,730,137     6,699,840     6,039,162     4,694,571  
Stockholders' common equity   933,762     932,179     822,215       595,410  
Tangible stockholders' common equity3   626,794     622,952     576,844       474,549  
         
PERFORMANCE RATIOS        
Return on average assets4   1.16 %   0.64 %   1.09 %   1.16 %
Return on average common equity4   9.52 %   5.23 %   9.06 %   10.33 %
Return on average tangible common equity3,4   14.18 %   7.83 %   12.92 %   12.96 %
Net interest margin4,5   3.52 %   3.68 %   3.60 %   3.53 %
Efficiency ratio6   59.66 %   58.69 %   58.92 %   58.84 %
Non-interest revenue as a % of total revenues2   27.34 %   27.20 %   26.86 %   31.32 %
         
1Results are unaudited
2Revenues consist of net interest income plus non-interest income, net of security gains and losses
3Average tangible stockholders’ common equity is defined as average common equity less average goodwill and intangibles, see “Non-GAAP Financial Information” below for reconciliation
4Annualized, see “Non-GAAP Financial Information” below for reconciliation
5On a tax-equivalent basis, assuming an income tax rate of 26% for 2018 and 35% for 2017
6 Net of security gains and losses and intangible expenses, see “Non-GAAP Financial Information” below for reconciliation
 


 
Condensed Consolidated Balance Sheets1 As of
(dollars in thousands, except per share data) March 31, December 31, September 30, March 31,
  2018 2017 2017 2017
Assets        
Cash and cash equivalents $   367,525   $   353,272   $   214,381   $   439,511  
Investment securities   1,286,136     1,321,610     990,222     743,876  
         
Loans held for sale   29,034     94,848     139,696     96,444  
         
Commercial loans   4,061,181     4,030,821     3,782,463     2,799,193  
Retail real estate and retail other loans   1,470,272     1,488,679     1,303,401     1,073,759  
Portfolio loans $   5,531,453   $   5,519,500   $   5,085,864   $   3,872,952  
         
Allowance for loan losses   (52,649 )   (53,582 )   (51,035 )   (48,442 )
Premises and equipment   118,985     116,913     100,642     77,967  
Goodwill and other intangibles   304,897     308,073     247,562     120,069  
Other assets   193,365     200,006     186,457     136,558  
Total assets $   7,778,746   $   7,860,640   $   6,913,789   $   5,438,935  
         
Liabilities & Stockholders' Equity        
Non-interest bearing deposits $   1,651,333   $   1,597,421   $   1,321,439   $   1,206,324  
Interest-bearing checking, savings, and money market deposits   3,270,963     3,192,382     3,049,651     2,516,741  
Time deposits   1,408,878     1,336,162     1,002,193     762,478  
Total deposits $   6,331,174   $   6,125,965   $   5,373,283   $   4,485,543  
         
Securities sold under agreements to repurchase   235,311     304,566     219,071     163,081  
Short-term borrowings   -     220,000     212,850     -  
Long-term debt   154,122     154,119     154,115     80,000  
Junior subordinated debt owed to unconsolidated trusts   71,044     71,008     70,973     70,903  
Other liabilities   44,949     49,979     47,429     37,061  
Total liabilities $   6,836,600   $   6,925,637   $   6,077,721   $   4,836,588  
Total stockholders' equity $   942,146   $   935,003   $   836,068   $   602,347  
Total liabilities & stockholders' equity $   7,778,746   $   7,860,640   $   6,913,789   $   5,438,935  
         
Share Data        
Book value per common share $   19.34   $   19.21   $   18.37   $   15.75  
Tangible book value per common share2 $   13.09   $   12.88   $   12.93   $   12.61  
Ending number of common shares outstanding   48,717     48,685     45,519     38,243  
 
1 Results are unaudited except for amounts reported as of December 31, 2017
2 Total common equity less goodwill and intangibles divided by shares outstanding as of period end, see “Non-GAAP Financial Information” below for reconciliation


   
Condensed Consolidated Statements of Operations1  
(dollars in thousands, except per share data)
  For the
  Three Months Ended March 31,
  2018 2017
     
Interest and fees on loans held for sale and portfolio loans $   60,960 $    40,597
Interest on investment securities   7,673   4,330
Total interest income $   68,633 $    44,927
     
Interest on deposits   5,987   2,044
Interest on short-term borrowings     817     170
Interest on long-term debt     1,357     113
Interest on junior subordinated debt owed to unconsolidated
   trusts
    715     587
Total interest expense $   8,876 $    2,914
     
Net interest income $   59,757 $    42,013
Provision for loan losses   1,008    500
Net interest income after provision for loan losses $   58,749 $    41,513
     
Trust fees   7,514   6,190
Commissions and brokers' fees, net     1,096     722
Fees for customer services   6,946   5,986
Remittance processing   3,392   2,845
Mortgage revenue   1,643   2,134
Security gains, net     -   857
Other     1,895   1,280
Total non-interest income $   22,486 $    20,014
     
Salaries, wages and employee benefits     28,819     21,890
Net occupancy expense of premises   3,821   3,185
Furniture and equipment expense   1,913   1,619
Data processing   5,231   3,598
Amortization of intangible assets     1,515     1,207
Other   9,741   6,120
Total non-interest expense $   51,040 $    37,619
     
Income before income taxes $   30,195 $    23,908
Income taxes   8,278   8,738
Net income $   21,917 $    15,170
     
Per Share Data    
Basic earnings per common share $   0.45 $    0.40
Diluted earnings per common share $   0.45 $    0.39
Diluted average common shares outstanding     49,179     38,754
         

1 Results are unaudited


Balance Sheet Growth:  At March 31, 2018, portfolio loans were $5.531 billion, an increase of $12.0 million from $5.520 billion as of December 31, 2017 and $1.658 billion from the $3.873 billion as of March 31, 2017.  First quarter 2018 commercial loan production of $30.4 million was driven by organic originations, particularly in the Missouri market, and was offset by a decline in retail loan balances of $18.4 million.  The balance of loans held for sale at March 31, 2018 was $29.0 million compared to $94.8 million at December 31, 2017.  Average portfolio loans increased to $5.508 billion for the first quarter of 2018 compared to $3.862 billion for the first quarter of 2017, an increase of 42.6%.   

Average interest-earning assets for the three months ended March 31, 2018 increased to $6.976 billion compared to $6.933 billion for the three months ended December 31, 2017 and 42.3% compared to $4.904 billion for the three months ended March 31, 2017.

Total deposits were $6.331 billion at March 31, 2018 an increase of 3.3% from $6.126 billion at December 31, 2017 and 41.1% from $4.486 billion at March 31, 2017.  The Company remains funded primarily through core deposits with solid liquidity and significant market share in core Illinois markets.

Net Interest Margin and Net Interest Income:  Net interest income of $59.8 million in the first quarter of 2018 decreased by 5.2% from $63.0 million in the fourth quarter of 2017 and increased by 42.2% from $42.0 million in the first quarter of 2017.  Net purchase accounting accretion and amortization included in interest income and interest expense was $3.4 million for the first quarter of 2018, a decrease from $5.8 million for the fourth quarter of 2017 and an increase from $1.9 million for the first quarter of 2017. 

The net interest margin decreased to 3.52% for the first quarter of 2018, compared to 3.68% for the fourth quarter of 2017 and 3.53% for the first quarter of 2017.  Net of purchase accounting accretion and amortization, the net interest margin for the first quarter of 2018 was 3.32%, a decrease from 3.34% for the fourth quarter of 2017 and 3.38% for the first quarter of 2017.  Changes in net interest margin were driven by the pricing on deposits obtained through the South Side acquisition.

Asset Quality:  As of March 31, 2018, non-performing loans increased to $33.6 million, compared to $27.4 million as of December 31, 2017, and $20.9 million as of March 31, 2017.  The increase in non-performing loans is driven by two large commercial relationships which the Company is actively working to resolve. Non-performing loans were 0.61% of total portfolio loans as of March 31, 2018, compared to 0.50% as of December 31, 2017 and 0.54% as of March 31, 2017.

The Company recorded net charge-offs of $1.9 million for the first quarter of 2018, an increase compared to $0.3 million for the fourth quarter of 2017, and net recoveries of $0.1 million for the first quarter of 2017.  Allowance for loan losses as a percentage of portfolio loans was 0.95% at March 31, 2018 as compared to 0.97% at December 31, 2017 and 1.25% at March 31, 2017.  As a result of acquisitions, the Company is holding acquired loans that are carried net of a fair value adjustment for credit and interest rate marks and are only included in the allowance calculation to the extent that the reserve requirement exceeds the fair value adjustment.  The Company recorded provision for loan losses of $1.0 million in the first quarter of 2018, as compared to $2.8 million in the fourth quarter of 2017 and $0.5 million in the first quarter of 2017.

With a continued commitment to asset quality and the strength of our balance sheet, near-term loan losses are expected to remain generally low.  While these results are encouraging, asset quality metrics can be generally influenced by market specific economic conditions and specific measures may fluctuate from period to period.

   
Asset Quality1 As of and for the Three Months Ended
(dollars in thousands) March 31, December 31, September 30, March 31,
  2018 2017 2017 2017
         
Portfolio loans $   5,531,453   $   5,519,500   $   5,085,864   $   3,872,952  
Non-performing loans        
  Non-accrual loans   32,588     24,624     27,430     20,544  
  Loans 90+ days past due   995     2,741     439     311  
Non-performing loans, segregated by geography        
  Illinois/ Indiana    28,743     23,093     23,680     16,778  
  Missouri   3,641     2,964     2,682     3,154  
  Florida   1,199     1,308     1,507     923  
Loans 30-89 days past due   9,506     12,897     11,556     9,804  
Other non-performing assets   1,001     1,283     1,172     739  
Non-performing assets to portfolio loans and non-performing assets   0.63 %   0.52 %   0.57 %   0.56 %
Allowance as a percentage of non-performing loans   156.77 %   195.80 %   183.13 %   232.28 %
Allowance for loan losses to portfolio loans   0.95 %   0.97 %   1.00 %   1.25 %
Net charge-offs (recoveries) $   1,941   $   262   $   (340 ) $   (147 )
Provision for loan losses   1,008     2,809     1,494     500  
         
1 Results are unaudited except for amounts reported as of December 31, 2017    
   

Fee-based Businesses:  Revenues from trust fees, commissions and brokers’ fees, and remittance processing activities represented 53.4% of the Company’s non-interest income for the quarter ended March 31, 2018, providing a balance to revenue from traditional banking activities. Two of the Company’s acquisitions, Pulaski Financial Corp. and First Community had no legacy fee income in these businesses; therefore, the addition of these fee-based service offerings in these acquired bank markets is expected to continue providing attractive growth opportunities in future periods.

Trust fees and commissions and brokers’ fees of $8.6 million for the first quarter of 2018 increased from $7.7 million for the fourth quarter of 2017 and $6.9 million for the first quarter of 2017.  Net income from the wealth management segment increased to $2.8 million for the first quarter of 2018, compared to $1.5 million or a notable 88.2% increase from the fourth quarter of 2017 and $1.8 million or 49.6% increase from the first quarter of 2017.  Market expansion resulting from the South Side acquisition and strong performance from Busey Ag Services, a wealth management division of Busey Bank, contributed to the positive results.  Busey Wealth Management ended the first quarter of 2018 with $6.910 billion in assets under care, a 15.9% increase from the fourth quarter of 2017 creating positive momentum going forward.

Remittance processing revenue of $3.4 million for the first quarter of 2018 increased from $2.8 million for the first and fourth quarters of 2017.  Net income from the remittance processing segment was $1.0 million for the first quarter of 2018, an increase from $0.4 million for the fourth quarter of 2017 and $0.6 million for the first quarter of 2017.  The positive 2018 results are a reflection of new customer activity and volume increases from existing customers.

Mortgage revenue decreased to $1.6 million in the first quarter of 2018 from $2.7 million in the fourth quarter of 2017 and $2.1 million for the first quarter of 2017, reflecting the realignment of mortgage origination resources to the Company’s current market through the sale of certain mortgage locations in the fourth quarter of 2017.

Operating Efficiency:  An active business outreach across the Company’s footprint continues to support ongoing business expansion and effectively underlies the combination of the operations acquired from recent acquisitions with that of the Company. The Company expects to see greater operating efficiencies from the South Side integration beginning in the second quarter of 2018.  The efficiency ratio, inclusive of acquisition and restructuring costs, of 59.7% for the quarter ended March 31, 2018 increased slightly from 58.8% for the same period of 2017.  The adjusted efficiency ratio2 was 55.4% for the quarter ended March 31, 2018 and 57.3% for the quarter ended March 31, 2017.  The Company remains consistently focused on expense discipline.

Specific areas of operating performance are detailed as follows:

  • Salaries, wages and employee benefits increased to $28.8 million in the first quarter of 2018, compared to $28.2 million in the fourth quarter of 2017 and $21.9 million in the first quarter of 2017.  The recent acquisitions added to the Company’s headcount and the Company recorded total restructuring costs of $1.7 million in 2018.
     
  • Data processing expense in the first quarter of 2018 decreased to $5.2 million, compared to $6.0 million in the fourth quarter of 2017, but increased compared to $3.6 million in the first quarter of 2017.  Variances are largely related to payment of deconversion expenses related to acquisitions.
     
  • Other operating expenses decreased to $9.7 million in the first quarter of 2018, compared to $11.6 million in the fourth quarter of 2017, but increased compared to $6.1 million in the first quarter of 2017 across multiple categories.

Capital Strength:  The Company's strong capital levels, coupled with its earnings, have allowed it to provide a steady return to its stockholders through dividends.  The Company will pay a cash dividend on April 27, 2018 of $0.20 per common share to stockholders of record as of April 20, 2018.  The Company has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980.

As of March 31, 2018, First Busey continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines.  The Company’s tangible stockholders’ common equity3 (“TCE”) increased to $646.9 million at March 31, 2018, compared to $638.0 million at December 31, 2017 and $489.2 million at March 31, 2017. TCE represented 8.64% of tangible assets at March 31, 2018, compared to 8.43% at December 31, 2017 and 9.19% at March 31, 2017.4  

2Adjusted efficiency ratio, a Non-GAAP financial measure, see “Non-GAAP Financial Information” below for reconciliation
3Tangible stockholders’ common equity, see “Non-GAAP Financial Information” below for reconciliation
4Tangible assets, see “Non-GAAP Financial Information” below for reconciliation

Corporate Profile

As of March 31, 2018, First Busey Corporation (Nasdaq:BUSE) was a $7.8 billion financial holding company headquartered in Champaign, Illinois. Busey Bank, a wholly-owned bank subsidiary, is headquartered in Champaign, Illinois and has forty-four banking centers serving Illinois, thirteen banking centers in the St. Louis, Missouri metropolitan area, five banking centers serving southwest Florida and a banking center in Indianapolis, Indiana.  Trevett Capital Partners, a wealth management division of Busey Bank, provides asset management, investment and fiduciary services to high net worth clients in southwest Florida.  The wealth management professionals of Trevett Capital Partners can be reached through trevettcapitalpartners.com.  Busey Bank had total assets of $7.8 billion as of March 31, 2018. 

In addition, Busey Bank owns a retail payment processing subsidiary, FirsTech, Inc., which processes approximately 28 million transactions per year using online bill payment, lockbox processing and walk-in payments at its 4,000 agent locations in 43 states.  More information about FirsTech, Inc. can be found at firstechpayments.com.

Busey Wealth Management is a wholly-owned subsidiary of First Busey Corporation.  Through Busey Trust Company, Busey Wealth Management provides asset management, investment and fiduciary services to individuals, businesses and foundations.  As of March 31, 2018, Busey Wealth Management’s assets under care were approximately $6.9 billion.

For more information about us, visit www.busey.com.

Contacts:

Robin N. Elliott, Chief Operating Officer & Chief Financial Officer, 217-365-4120

Jennifer L. Simons, Chief Accounting Officer, 217-365-4309


Non-GAAP Financial Information

This press release contains certain financial information determined by methods other than GAAP.  These measures include adjusted net income, adjusted ROA, adjusted net interest margin, adjusted efficiency ratio, tangible common equity, tangible common equity to tangible assets and return on average common equity.  Management uses these Non-GAAP measures, together with the related GAAP measures, in analysis of the Company’s performance and in making business decisions. Management also uses these measures for peer comparisons.

A reconciliation to what management believes to be the most direct compared GAAP financial measures – net income in the case of adjusted net income and adjusted ROA, total net interest income, total non-interest income and total non-interest expense in the case of adjusted efficiency ratio, total stockholders’ equity in the case of the tangible book value per share – appears below.  The Company believes each of the adjusted measures are useful for investors and management to understand the effects of certain non-interest items and provides additional perspective on the Company’s performance over time as well as comparison to the Company’s peers.

These Non-GAAP disclosures have inherent limitations and are not audited.  They should not be considered in isolation or as a substitute for the results reported in accordance with GAAP, nor are they necessarily comparable to Non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these Non-GAAP disclosures are based on estimated statutory rates.

 
Reconciliation of Non-GAAP Financial Measures – Adjusted Net Income and ROA
(dollars in thousands)
         
    Three Months Ended
    March 31, 2018 December 31, 2017 March 31, 2017
Net income   $   21,917   $   12,293   $   15,170  
Acquisition expenses        
  Salaries, wages and employee benefits     1,233     120     -  
  Data processing     372     1,268     -  
  Other (includes professional and legal)     1,950     1,569     756  
Other restructuring costs        
 Salaries, wages and employee benefits     417     496     -  
  Other     -     20     215  
Related tax benefit     (967 )   (1,330 )   (347 )
Tax Cuts and Jobs Act related adjustment     -     8,098     -  
Adjusted net income   $   24,922   $   22,534   $   15,794  
         
Average total assets   $   7,663,899   $   7,632,019   $   5,289,980  
         
Reported: ROA1     1.16 %   0.64 %   1.16 %
Adjusted: ROA1     1.32 %   1.17 %   1.21 %
                     

1 Annualized measure

 
Reconciliation of Non-GAAP Financial Measures – Adjusted Net Interest Margin
(dollars in thousands)
 
  Three Months Ended
  March 31, 2018 December 31, 2017 March 31, 2017
       
Reported: Net interest income $    59,757   $    63,046   $   42,013  
  Tax-equivalency adjustment   764     1,192     713  
  Less: Purchase accounting amortization   (3,410 )   (5,848 )   (1,851 )
Adjusted: Net interest income $   57,111   $   58,390   $   40,875  
       
Average interest-earning assets $   6,976,383   $   6,932,750   $   4,903,639  
       
Reported: Net interest margin1   3.52 %   3.68 %   3.53 %
Adjusted: Net Interest margin1   3.32 %   3.34 %   3.38 %
       

1 Annualized measure

 
Reconciliation of Non-GAAP Financial Measures – Adjusted Efficiency Ratio
(dollars in thousands)
         
    Three Months Ended
    March 31, 2018 December 31, 2017 March 31, 2017
Reported: Net Interest income   $   59,757   $   63,046   $   42,013  
  Tax-equivalency adjustment       764       1,192       713  
Tax equivalent interest income   $   60,521   $   64,238   $   42,726  
         
Reported: Non-interest income       22,486        23,561       20,014  
  Less: Security gains, net       -       -       (857 )
Adjusted: Non-interest income   $     22,486   $     23,561   $     19,157  
         
Reported: Non-interest expense       51,040       53,100       37,619  
  Less:        
  Amortization       (1,515 )     (1,570 )     (1,207 )
  Non-operating adjustments:        
  Salaries, wages and employee benefits       (1,650 )     (616 )     -  
  Data processing       (372 )     (1,268 )     -  
  Other       (1,505 )     (1,589 )     (971 )
Adjusted: Non-interest expense   $     45,998   $     48,057   $     35,441  
         
Reported: Efficiency ratio     59.66 %   58.69 %   58.84 %
Adjusted: Efficiency ratio     55.41 %   54.74 %   57.27 %
                     


 
Reconciliation of Non-GAAP Financial Measures – Tangible common equity to tangible assets, Tangible book value per share,
Return on average tangible common equity
(dollars in thousands, except per share data)
         
    Three Months Ended
    March 31, 2018 December 31, 2017 March 31, 2017
         
Total assets   $   7,778,746   $   7,860,640   $   5,438,935  
Less:        
  Goodwill and other intangible assets, net     (304,897 )   (308,073 )   (120,069 )
  Tax effect of goodwill and other intangible assets, net     9,675     11,039     6,909  
Tangible assets   $   7,483,524   $   7,563,606   $   5,325,775  
         
Total stockholders’ equity     942,146     935,003     602,347  
Less:        
  Goodwill and other intangible assets, net     (304,897 )   (308,073 )   (120,069 )
  Tax effect of goodwill and other intangible assets, net     9,675     11,039     6,909  
Tangible stockholders’ equity   $   646,924   $   637,969   $   489,187  
         
Tangible common equity to tangible assets1     8.64 %   8.43 %   9.19 %
Tangible book value per share   $   13.09   $   12.88   $   12.61  
         
         
Average stockholders' common equity   $   933,762   $   932,179   $   595,410  
  Less: Average goodwill and intangibles, net     (306,968 )   (309,227 )   (120,861 )
Average tangible stockholders' common equity   $   626,794   $   622,952   $   474,549  
         
Reported: Return on average tangible common equity2     14.18 %   7.83 %   12.96 %
Adjusted: Return on average tangible common equity2,3     16.13 %   14.35 %   13.50 %
         
Return on average common equity2     9.52 %   5.23 %   10.33 %
         
         
1 Tax-effected measure        
2 Annualized measure        
3 Calculated using adjusted net income        
         

Special Note Concerning Forward-Looking Statements

Statements made in this report, other than those concerning historical financial information, may be considered 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 First Busey.  Forward-looking statements, which may be based upon beliefs, expectations and assumptions of First Busey’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 we undertake no obligation to update any statement in light of new information or future events.  A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements.  These factors include, among others, the following: (i) the strength of the local, national and international economy; (ii) the economic impact of any future terrorist threats or attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning First Busey’s general business; (iv) changes in interest rates and prepayment rates of First Busey’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 current and/or future acquisitions, which may include, failure to realize the anticipated benefits of any acquisition and the possibility that transaction costs may be greater than anticipated; (x) unexpected outcomes of existing or new litigation involving First Busey; (xi) changes in accounting policies and practices; and (xii) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, and blizzards.  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 First Busey and its business, including additional factors that could materially affect its financial results, is included in First Busey’s filings with the Securities and Exchange Commission.

Primary Logo

Powered by EIN News


EIN Presswire does not exercise editorial control over third-party content provided, uploaded, published, or distributed by users of EIN Presswire. We are a distributor, not a publisher, of 3rd party content. Such content may contain the views, opinions, statements, offers, and other material of the respective users, suppliers, participants, or authors.

Submit your press release