First Busey Announces 2021 First Quarter Earnings
First Busey Corporation (BUSE) reported a strong performance in Q1 2021, with net income of $37.8 million and diluted EPS of $0.69, up from $15.4 million and $0.28 in Q1 2020. Adjusted net income also increased to $38.1 million compared to $34.3 million in the prior quarter. Wealth management assets rose to $10.69 billion. However, net interest income fell to $64.9 million due to lower PPP loan income and a declining net interest margin of 2.72%. The company is finalizing the acquisition of Cummins-American Corp., enhancing its market presence.
- Net income of $37.8 million in Q1 2021, compared to $15.4 million in Q1 2020.
- Diluted EPS increased to $0.69 from $0.28 year-over-year.
- Wealth management assets grew to $10.69 billion.
- Adjusted net income of $38.1 million signals strong financial health.
- Improved efficiency ratio to 54.33% from 59.54% year-over-year.
- Net interest income declined to $64.9 million from $72.9 million in Q4 2020.
- Net interest margin reduced to 2.72% from 3.06% in Q4 2020, indicating margin pressures.
- Decreased PPP recognition revenue contributing to lower net interest income.
CHAMPAIGN, Ill., April 27, 2021 (GLOBE NEWSWIRE) -- First Busey Corporation (Nasdaq: BUSE)
Message from our Chairman & CEO
First Quarter 2021 Highlights:
- First quarter 2021 net income of
$37.8 million and diluted EPS of$0.69 - First quarter 2021 adjusted net income1 of
$38.1 million and adjusted diluted EPS1 of$0.69 , an increase from$34.3 million and$0.62 , respectively in the fourth quarter of 2020, and$15.5 million and$0.28 , respectively in the first quarter of 2020 - Tangible book value per common share1 of
$16.65 at March 31, 2021, as compared to$16.66 at December 31, 2020, and$15.57 at March 31, 2020, an increase of6.9% year-over-year - Wealth management assets under care of
$10.69 billion at March 31, 2021, up from$10.23 billion at December 31, 2020, and$8.93 billion at March 31, 2020 - Entry into definitive agreement to acquire Cummins-American Corp., the holding company for Glenview State Bank
- For additional information, please refer to the 1Q21 Quarterly Earnings Supplement
First Quarter Financial Results
Net income for First Busey Corporation (“First Busey” or the “Company”) for the first quarter of 2021 was
Pre-provision net revenue1 for the first quarter of 2021 was
We continue to see strong performance and contribution from our fee-based businesses. In the first quarter of 2021, wealth management fees were
We experienced further pressure on our net interest margin in the quarter. The Company reported net interest income of
The Company remains focused on managing expenses and driving efficiency. Total adjusted non-interest expense, excluding intangible amortization and one-time non-operating items1, was
Continued disciplined credit management resulted in non-performing loans as a percentage of total loans of
The Company views certain non-operating items, including acquisition-related and other restructuring charges, as adjustments to net income reported under U.S. generally accepted accounting principles (“GAAP”). Non-operating pretax adjustments for the first quarter of 2021 included
Acquisition of Cummins-American Corp.
On January 19, 2021, the Company and Cummins-American Corp. (“CAC”), the holding company for Glenview State Bank (“GSB”), jointly announced the signing of a definitive agreement pursuant to which the Company will acquire CAC and GSB through a merger transaction. The partnership will enhance the Company’s existing deposit, commercial banking, and wealth management presence in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area.
Under the terms of the merger agreement, CAC’s shareholders will have the right to receive 444.4783 shares of First Busey’s common stock and
The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions and approval by CAC’s shareholders. Required regulatory approvals for the acquisition have been obtained. It is anticipated GSB will be merged with and into Busey Bank in the third quarter of 2021. At the time of the bank merger, GSB banking centers will become banking centers of Busey Bank.
COVID-19 Update
The Company continues to navigate the economic environment caused by COVID-19 effectively and prudently and remains resolute in its focus on serving its customers, communities, and associates while protecting its balance sheet. The Company remains vigilant, given that negative impacts of COVID-19, such as further margin compression and a deterioration in asset quality, could impact future quarters.
To alleviate some of the financial hardships faced as a result of COVID-19, First Busey offered an internal Financial Relief Program to qualifying customers. The program included options for short-term loan payment deferrals and certain fee waivers. As of March 31, 2021, the Company had 72 commercial loans remaining on payment deferrals representing
First Busey served as a bridge for the PPP, actively helping existing and new business clients sign up for this important financial resource. The Company originated a total of
On December 27, 2020, the Economic Aid Act extended the authority to make PPP loans through March 31, 2021, and revised certain PPP requirements. On March 30, 2021, the President signed the PPP Extension Act of 2021, which extended the PPP application deadline to May 31, 2021. As of March 31, 2021, the Company originated a total of
At March 31, 2021, First Busey had
Community Banking
First Busey’s goal of being a strong community bank for the communities it serves begins with outstanding associates. The Company is honored to be named among the 2020 Best Banks to Work For by American Banker, the 2021 Best Places to Work in Illinois by Daily Herald Business Ledger, the 2020 Best Companies to Work For in Florida by Florida Trend magazine, the 2021 Best Place to Work in Indiana by the Indiana Chamber of Commerce, and the 2020 Best Places to Work in Money Management by Pensions and Investments.
In today’s fluid, ever-evolving landscape, the Company remains steadfast in our commitment to the customers and communities we serve. We take pride in our culture and all the work completed by our associates in response to COVID-19. As we continue growing forward, we are excited to welcome our CAC colleagues into the First Busey family and feel confident that the transaction and our continued efforts will lead to attractive financial returns in future periods.
/s/ Van A. Dukeman
Chairman, President & Chief Executive Officer
First Busey Corporation
_____________________
1 A Non-GAAP financial measure. See “Non-GAAP Financial Information” for reconciliation.
| SELECTED FINANCIAL HIGHLIGHTS (Unaudited) | |||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| As of and for the | |||||||||||||||
| Three Months Ended | |||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||
| EARNINGS & PER SHARE DATA | |||||||||||||||
| Net income | $ | 37,816 | $ | 28,345 | $ | 30,829 | $ | 25,806 | $ | 15,364 | |||||
| Diluted earnings per share | 0.69 | 0.52 | 0.56 | 0.47 | 0.28 | ||||||||||
| Cash dividends paid per share | 0.23 | 0.22 | 0.22 | 0.22 | 0.22 | ||||||||||
| Pre-provision net revenue1,2 | 40,198 | 38,507 | 45,922 | 45,394 | 35,849 | ||||||||||
| Revenue3 | 94,697 | 102,580 | 102,464 | 98,462 | 96,363 | ||||||||||
| Net income by operating segments: | |||||||||||||||
| Banking | 35,528 | 28,573 | 31,744 | 25,985 | 14,924 | ||||||||||
| Remittance Processing | 429 | 406 | 578 | 528 | 860 | ||||||||||
| Wealth Management | 4,682 | 3,334 | 3,166 | 3,082 | 3,599 | ||||||||||
| AVERAGE BALANCES | |||||||||||||||
| Cash and cash equivalents | $ | 536,457 | $ | 551,844 | $ | 836,097 | $ | 563,022 | $ | 477,242 | |||||
| Investment securities | 2,561,680 | 2,077,284 | 1,824,327 | 1,717,790 | 1,738,564 | ||||||||||
| Loans held for sale | 31,373 | 52,745 | 104,965 | 108,821 | 61,963 | ||||||||||
| Portfolio loans | 6,736,664 | 6,990,414 | 7,160,757 | 7,216,825 | 6,658,277 | ||||||||||
| Interest-earning assets | 9,752,294 | 9,557,265 | 9,805,948 | 9,485,200 | 8,817,544 | ||||||||||
| Total assets | 10,594,245 | 10,419,364 | 10,680,995 | 10,374,820 | 9,688,177 | ||||||||||
| Non-interest bearing deposits | 2,688,845 | 2,545,830 | 2,592,130 | 2,472,568 | 1,842,743 | ||||||||||
| Interest-bearing deposits | 6,033,613 | 5,985,020 | 6,169,377 | 6,073,795 | 6,081,972 | ||||||||||
| Total deposits | 8,722,458 | 8,530,850 | 8,761,507 | 8,546,363 | 7,924,715 | ||||||||||
| Securities sold under agreements to repurchase | 184,694 | 194,610 | 190,046 | 184,208 | 182,280 | ||||||||||
| Interest-bearing liabilities | 6,521,195 | 6,482,475 | 6,694,561 | 6,527,709 | 6,512,217 | ||||||||||
| Total liabilities | 9,318,551 | 9,158,066 | 9,432,547 | 9,141,550 | 8,470,017 | ||||||||||
| Stockholders' equity - common | 1,275,694 | 1,261,298 | 1,248,448 | 1,233,270 | 1,218,160 | ||||||||||
| Tangible stockholders' equity - common2 | 913,001 | 896,178 | 880,958 | 863,571 | 845,920 | ||||||||||
| PERFORMANCE RATIOS | |||||||||||||||
| Pre-provision net revenue to average assets1,2 | 1.54 | % | 1.47 | % | 1.71 | % | 1.76 | % | 1.49 | % | |||||
| Return on average assets | 1.45 | % | 1.08 | % | 1.15 | % | 1.00 | % | 0.64 | % | |||||
| Return on average common equity | 12.02 | % | 8.94 | % | 9.82 | % | 8.42 | % | 5.07 | % | |||||
| Return on average tangible common equity2 | 16.80 | % | 12.58 | % | 13.92 | % | 12.02 | % | 7.30 | % | |||||
| Net interest margin2,4 | 2.72 | % | 3.06 | % | 2.86 | % | 3.03 | % | 3.20 | % | |||||
| Efficiency ratio2 | 54.67 | % | 59.70 | % | 52.42 | % | 50.97 | % | 59.69 | % | |||||
| Non-interest revenue as a % of total revenues3 | 31.47 | % | 28.90 | % | 31.92 | % | 28.08 | % | 27.95 | % | |||||
| NON-GAAP FINANCIAL INFORMATION | |||||||||||||||
| Adjusted pre-provision net revenue1,2 | $ | 42,753 | $ | 47,156 | $ | 48,701 | $ | 46,448 | $ | 38,211 | |||||
| Adjusted net income2 | 38,065 | 34,255 | 32,803 | 26,191 | 15,479 | ||||||||||
| Adjusted diluted earnings per share2 | 0.69 | 0.62 | 0.60 | 0.48 | 0.28 | ||||||||||
| Adjusted pre-provision net revenue to average assets2 | 1.64 | % | 1.80 | % | 1.81 | % | 1.80 | % | 1.59 | % | |||||
| Adjusted return on average assets2 | 1.46 | % | 1.31 | % | 1.22 | % | 1.02 | % | 0.64 | % | |||||
| Adjusted return on average tangible common equity2 | 16.91 | % | 15.21 | % | 14.81 | % | 12.20 | % | 7.36 | % | |||||
| Adjusted net interest margin2,4 | 2.63 | % | 2.96 | % | 2.75 | % | 2.93 | % | 3.07 | % | |||||
| Adjusted efficiency ratio2 | 54.33 | % | 52.39 | % | 49.97 | % | 50.48 | % | 59.54 | % | |||||
| 1 Net interest income plus non-interest income, excluding security gains and losses, less non-interest expense. | |||||||||||||||
| 2 See “Non-GAAP Financial Information” for reconciliation. | |||||||||||||||
| 3 Revenue consists of net interest income plus non-interest income, excluding security gains and losses. | |||||||||||||||
| 4 On a tax-equivalent basis, assuming a federal income tax rate of | |||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and cash equivalents | $ | 404,802 | $ | 688,537 | $ | 479,721 | $ | 1,050,072 | $ | 342,848 | |||||||||
| Investment securities | 2,804,101 | 2,266,717 | 2,098,657 | 1,701,992 | 1,770,881 | ||||||||||||||
| Loans held for sale | 38,272 | 42,813 | 87,772 | 108,140 | 89,943 | ||||||||||||||
| Commercial loans | 5,402,970 | 5,368,897 | 5,600,705 | 5,637,999 | 5,040,507 | ||||||||||||||
| Retail real estate and retail other loans | 1,376,330 | 1,445,280 | 1,520,606 | 1,591,021 | 1,704,992 | ||||||||||||||
| Portfolio loans | 6,779,300 | 6,814,177 | 7,121,311 | 7,229,020 | 6,745,499 | ||||||||||||||
| Allowance | (93,943 | ) | (101,048 | ) | (98,841 | ) | (96,046 | ) | (84,384 | ) | |||||||||
| Premises and equipment | 132,669 | 135,191 | 144,001 | 146,951 | 149,772 | ||||||||||||||
| Goodwill and other intangibles | 361,120 | 363,521 | 365,960 | 368,053 | 370,572 | ||||||||||||||
| Right of use asset | 7,333 | 7,714 | 7,251 | 8,511 | 9,074 | ||||||||||||||
| Other assets | 325,909 | 326,425 | 333,796 | 319,272 | 327,200 | ||||||||||||||
| Total assets | $ | 10,759,563 | $ | 10,544,047 | $ | 10,539,628 | $ | 10,835,965 | $ | 9,721,405 | |||||||||
| LIABILITIES & STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Non-interest bearing deposits | $ | 2,859,492 | $ | 2,552,039 | $ | 2,595,075 | $ | 2,764,408 | $ | 1,910,673 | |||||||||
| Interest checking, savings, and money market deposits | 4,991,887 | 5,006,462 | 4,819,859 | 4,781,761 | 4,580,547 | ||||||||||||||
| Time deposits | 1,022,468 | 1,119,348 | 1,227,767 | 1,363,497 | 1,482,013 | ||||||||||||||
| Total deposits | $ | 8,873,847 | $ | 8,677,849 | $ | 8,642,701 | $ | 8,909,666 | $ | 7,973,233 | |||||||||
| Securities sold under agreements to repurchase | $ | 210,132 | $ | 175,614 | $ | 201,641 | $ | 194,249 | $ | 167,250 | |||||||||
| Short-term borrowings | 4,663 | 4,658 | 4,651 | 24,648 | 21,358 | ||||||||||||||
| Long-term debt | 226,797 | 226,792 | 226,801 | 256,837 | 134,576 | ||||||||||||||
| Junior subordinated debt owed to unconsolidated trusts | 71,509 | 71,468 | 71,427 | 71,387 | 71,347 | ||||||||||||||
| Lease liability | 7,380 | 7,757 | 7,342 | 8,601 | 9,150 | ||||||||||||||
| Other liabilities | 99,413 | 109,840 | 129,360 | 134,493 | 126,906 | ||||||||||||||
| Total liabilities | $ | 9,493,741 | $ | 9,273,978 | $ | 9,283,923 | $ | 9,599,881 | $ | 8,503,820 | |||||||||
| Total stockholders' equity | $ | 1,265,822 | $ | 1,270,069 | $ | 1,255,705 | $ | 1,236,084 | $ | 1,217,585 | |||||||||
| Total liabilities & stockholders' equity | $ | 10,759,563 | $ | 10,544,047 | $ | 10,539,628 | $ | 10,835,965 | $ | 9,721,405 | |||||||||
| SHARE DATA | |||||||||||||||||||
| Book value per common share | $ | 23.29 | $ | 23.34 | $ | 23.03 | $ | 22.67 | $ | 22.38 | |||||||||
| Tangible book value per common share1 | $ | 16.65 | $ | 16.66 | $ | 16.32 | $ | 15.92 | $ | 15.57 | |||||||||
| Ending number of common shares outstanding | 54,345,379 | 54,404,379 | 54,522,231 | 54,516,000 | 54,401,208 | ||||||||||||||
| 1See "Non-GAAP Financial Information" for reconciliation, excludes tax effect of other intangible assets. | |||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) | |||||||
| (dollars in thousands, except per share data) | |||||||
| For the Three Months Ended March 31, | |||||||
| 2021 | 2020 | ||||||
| Interest and fees on loans held for sale and portfolio | $ | 62,565 | $ | 72,536 | |||
| Interest on investment securities | 9,616 | 10,659 | |||||
| Other interest income | 150 | 1,238 | |||||
| Total interest income | $ | 72,331 | $ | 84,433 | |||
| Interest on deposits | $ | 3,732 | $ | 12,227 | |||
| Interest on securities sold under agreements to repurchase | 57 | 408 | |||||
| Interest on short-term borrowings | 19 | 67 | |||||
| Interest on long-term debt | 2,905 | 1,554 | |||||
| Junior subordinated debt owed to unconsolidated trusts | 725 | 744 | |||||
| Total interest expense | $ | 7,438 | $ | 15,000 | |||
| Net interest income | $ | 64,893 | $ | 69,433 | |||
| Provision for loan losses | (6,796 | ) | 17,216 | ||||
| Net interest income after provision for loan losses | $ | 71,689 | $ | 52,217 | |||
| Wealth management fees | $ | 12,584 | $ | 11,555 | |||
| Fees for customer services | 8,037 | 8,361 | |||||
| Remittance processing | 4,418 | 3,753 | |||||
| Mortgage revenue | 2,666 | 1,381 | |||||
| Income on bank owned life insurance | 964 | 1,057 | |||||
| Net security gains (losses) | 1,641 | 587 | |||||
| Other | 1,135 | 823 | |||||
| Total non-interest income | $ | 31,445 | $ | 27,517 | |||
| Salaries, wages, and employee benefits | $ | 30,384 | $ | 34,003 | |||
| Data processing expense | 4,280 | 4,395 | |||||
| Net occupancy expense | 4,563 | 4,715 | |||||
| Furniture and equipment expense | 2,026 | 2,449 | |||||
| Professional fees | 1,945 | 1,824 | |||||
| Amortization expense | 2,401 | 2,557 | |||||
| Interchange expense | 1,484 | 1,169 | |||||
| Other operating expenses | 7,416 | 9,402 | |||||
| Total non-interest expense | $ | 54,499 | $ | 60,514 | |||
| Income before income taxes | $ | 48,635 | $ | 19,220 | |||
| Income taxes | 10,819 | 3,856 | |||||
| Net income | $ | 37,816 | $ | 15,364 | |||
| SHARE DATA | |||||||
| Basic earnings per common share | $ | 0.69 | $ | 0.28 | |||
| Fully-diluted earnings per common share | $ | 0.69 | $ | 0.28 | |||
| Average common shares outstanding | 54,471,860 | 54,661,787 | |||||
| Diluted average common shares outstanding | 55,035,806 | 54,913,329 | |||||
Balance Sheet Growth
Total assets were
Average portfolio loans were
Total deposits were
Net Interest Margin and Net Interest Income
Net interest margin for the first quarter of 2021 was
The Federal Open Market Committee rate cuts during the first quarter of 2020 have contributed to the decline in net interest margin over the past year, as assets, in particular commercial loans, repriced more quickly and to a greater extent than liabilities. The net interest margin has also been negatively impacted by the sizeable balance of lower-yielding PPP loans, significant growth in the Company’s liquidity position, and the issuance of subordinated debt completed during the second quarter of 2020. Those impacts were partially offset by the Company’s efforts to lower deposit funding costs as well as the fees recognized related to the PPP loans. That being said, variability in the timing and amount of net fee recognition tied to forgiveness of PPP loans has had a disparate impact on net interest margin from quarter to quarter. For example, during the first quarter of 2021, PPP loan interest and net fees contributed
Asset Quality
The Company continues to see strong and stable asset quality metrics. Loans 30-89 days past due were
Net charge-offs totaled
As a matter of policy and practice, the Company limits the level of concentration exposure in any particular loan segment and maintains a well-diversified loan portfolio.
| ASSET QUALITY (Unaudited) | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| As of and for the Three Months Ended | ||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||
| 2021 | 2020 | 2020 | 2020 | 2020 | ||||||||||||
| ASSET QUALITY | ||||||||||||||||
| Portfolio loans | $ | 6,779,300 | $ | 6,814,177 | $ | 7,121,311 | $ | 7,229,020 | $ | 6,745,499 | ||||||
| Portfolio loans excluding amortized cost of PPP loans | 6,257,196 | $ | 6,367,774 | $ | 6,384,916 | $ | 6,499,734 | $ | 6,745,499 | |||||||
| Loans 30-89 days past due | 9,929 | 7,578 | 6,708 | 5,166 | 10,150 | |||||||||||
| Non-performing loans: | ||||||||||||||||
| Non-accrual loans | 21,706 | 22,930 | 23,898 | 25,095 | 25,672 | |||||||||||
| Loans 90+ days past due | 1,149 | 1,371 | 279 | 285 | 1,540 | |||||||||||
| Total non-performing loans | $ | 22,855 | $ | 24,301 | $ | 24,177 | $ | 25,380 | $ | 27,212 | ||||||
| Total non-performing loans, segregated by geography: | ||||||||||||||||
| Illinois / Indiana | $ | 15,457 | $ | 16,234 | $ | 15,097 | $ | 16,285 | $ | 17,761 | ||||||
| Missouri | 6,170 | 6,764 | 6,867 | 5,327 | 5,711 | |||||||||||
| Florida | 1,228 | 1,303 | 2,213 | 3,768 | 3,740 | |||||||||||
| Other non-performing assets | 4,292 | 4,571 | 4,978 | 3,755 | 3,553 | |||||||||||
| Total non-performing assets | $ | 27,147 | $ | 28,872 | $ | 29,155 | $ | 29,135 | $ | 30,765 | ||||||
| Total non-performing assets to total assets | 0.25 | % | 0.27 | % | 0.28 | % | 0.27 | % | 0.32 | % | ||||||
| Total non-performing assets to portfolio loans and non-performing assets | 0.40 | % | 0.42 | % | 0.41 | % | 0.40 | % | 0.46 | % | ||||||
| Allowance to portfolio loans | 1.39 | % | 1.48 | % | 1.39 | % | 1.33 | % | 1.25 | % | ||||||
| Allowance to portfolio loans, excluding PPP | 1.50 | % | 1.59 | % | 1.55 | % | 1.48 | % | 1.25 | % | ||||||
| Allowance as a percentage of non-performing loans | 411.04 | % | 415.82 | % | 408.82 | % | 378.43 | % | 310.10 | % | ||||||
| Net charge-offs (recoveries) | $ | 309 | $ | 934 | $ | 2,754 | $ | 1,229 | $ | 3,413 | ||||||
| Provision | $ | (6,796 | ) | $ | 3,141 | $ | 5,549 | $ | 12,891 | $ | 17,216 | |||||
Non-Interest Income
Total non-interest income of
Wealth management fees were
Remittance processing revenue from the Company’s subsidiary, FirsTech, Inc., increased to
Fees for customer services were
Mortgage revenue was
Operating Efficiency
Total non-interest expense was
The efficiency ratio1 was
Noteworthy components of non-interest expense are as follows:
- Salaries, wages, and employee benefits were
$30.4 million in the first quarter of 2021, a decrease from$31.3 million in the fourth quarter of 2020 and$34.0 million from the first quarter of 2020. Total full-time equivalents at March 31, 2021, numbered 1,332 compared to 1,346 at December 31, 2020, and 1,507 at March 31, 2020, a decline of11.6% year-over-year. Further, the deferral of PPP loan origination costs of$1.8 million contributed to the lower salaries, wages, and benefits expense in the first quarter of 2021. - Other expense in the first quarter of 2021 of
$7.4 million decreased, as compared to$15.7 million in the fourth quarter of 2020 and$9.4 million in the first quarter of 2020. The deferral of PPP loan origination costs of$0.5 million reduced other expense in the first quarter of 2021. Provision for unfunded commitments of$0.4 million was recorded in the first quarter of 2021. Non-operating pretax acquisition expenses and other restructuring costs recorded in the fourth quarter of 2020 included$6.9 million of fixed asset impairments related to the October 2020 banking centers closure’s and further impairment on a banking center that had been closed related to a past acquisition.
Capital Strength
The Company's strong capital levels, coupled with its earnings, have allowed First Busey to provide a steady return to its stockholders through dividends. The Company will pay a cash dividend on April 30, 2021, of
As of March 31, 2021, the Company continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines. The Company’s tangible common equity1 (“TCE”) was
1Q21 Quarterly Earnings Supplement
For additional information on the Company’s response to COVID-19, financial condition, and operating results, please refer to the 1Q21 Quarterly Earnings Supplement presentation furnished via Form 8-K on April 27, 2021, in conjunction with this earnings release.
_____________________
1 A Non-GAAP financial measure. See “Non-GAAP Financial Information” for reconciliation.
Corporate Profile
As of March 31, 2021, First Busey Corporation (Nasdaq: BUSE) was a
Busey Bank, the wholly-owned bank subsidiary of First Busey Corporation, had total assets of
Busey Bank owns a retail payment processing subsidiary, FirsTech, Inc., which processes approximately 28 million transactions for a total of
First Busey has been named a Best Place to Work across the company footprint since 2016 by Best Companies Group. We are honored to be consistently recognized by national and local organizations for our engaged culture of integrity and commitment to community development.
For more information about us, visit busey.com.
Category: Financial
Source: First Busey Corporation
Contacts:
Jeffrey D. Jones, Chief Financial Officer
217-365-4130
Non-GAAP Financial Information
This earnings release contains certain financial information determined by methods other than GAAP. These measures include adjusted pre-provision net revenue, adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, adjusted net interest margin, efficiency ratio, adjusted efficiency ratio, tangible common equity, tangible common equity to tangible assets, tangible book value per share, and return on average tangible 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, specifically total net interest income in the case of adjusted pre-provision net revenue; net income in the case of adjusted net income, adjusted diluted earnings per share, and adjusted return on average assets; total net interest income in the case of adjusted net interest margin; total non-interest income and total non-interest expense in the case of efficiency ratio and adjusted efficiency ratio; and total stockholders’ equity in the case of tangible common equity, tangible common equity to tangible assets, tangible book value per share, and return on average tangible common equity, appears below. The Company believes the adjusted measures are useful for investors and management to understand the effects of certain non-recurring non-interest items and provide 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 or effective rates as appropriate.
| Reconciliation of Non-GAAP Financial Measures – Adjusted Pre-Provision Net Revenue (Unaudited) | |||||||||||
| (dollars in thousands) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| Net interest income | $ | 64,893 | $ | 72,936 | $ | 69,433 | |||||
| Non-interest income | 31,445 | 30,499 | 27,517 | ||||||||
| Less securities (gains) and losses, net | (1,641 | ) | (855 | ) | (587 | ) | |||||
| Non-interest expense | (54,499 | ) | (64,073 | ) | (60,514 | ) | |||||
| Reported: Pre-provision net revenue | 40,198 | 38,507 | 35,849 | ||||||||
| Acquisition and other restructuring expenses | 320 | 7,550 | 145 | ||||||||
| Provision for unfunded commitments | 406 | (12 | ) | 1,017 | |||||||
| New Market Tax Credit amortization | 1,829 | 1,111 | 1,200 | ||||||||
| Adjusted: Pre-provision net revenue | $ | 42,753 | $ | 47,156 | $ | 38,211 | |||||
| Average total assets | 10,594,245 | 10,419,364 | 9,688,177 | ||||||||
| Reported: Pre-provision net revenue to average assets1 | 1.54 | % | 1.47 | % | 1.49 | % | |||||
| Adjusted: Pre-provision net revenue to average assets1 | 1.64 | % | 1.80 | % | 1.59 | % | |||||
| 1 Annualized measure. | |||||||||||
| Reconciliation of Non-GAAP Financial Measures – Adjusted Net Income, Adjusted Diluted Earnings Per Share and Adjusted Return on Average Assets (Unaudited) | |||||||||||
| (dollars in thousands, except per share data) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| Reported: Net income | $ | 37,816 | $ | 28,345 | $ | 15,364 | |||||
| Acquisition expenses: | |||||||||||
| Salaries, wages, and employee benefits | — | — | — | ||||||||
| Data processing | 7 | 56 | — | ||||||||
| Lease or fixed asset impairment | — | 245 | — | ||||||||
| Professional fees and other | 313 | 479 | 145 | ||||||||
| Other restructuring costs: | |||||||||||
| Salaries, wages, and employee benefits | — | 113 | — | ||||||||
| Data processing | — | — | — | ||||||||
| Lease or fixed asset impairment | — | 6,657 | — | ||||||||
| Professional fees and other | — | — | — | ||||||||
| Related tax benefit | (71 | ) | (1,640 | ) | (30 | ) | |||||
| Adjusted: Net income | $ | 38,065 | $ | 34,255 | $ | 15,479 | |||||
| Diluted average common shares outstanding | 55,035,806 | 54,911,458 | 54,913,329 | ||||||||
| Reported: Diluted earnings per share | $ | 0.69 | $ | 0.52 | $ | 0.28 | |||||
| Adjusted: Diluted earnings per share | $ | 0.69 | $ | 0.62 | $ | 0.28 | |||||
| Average total assets | $ | 10,594,245 | $ | 10,419,364 | $ | 9,688,177 | |||||
| Reported: Return on average assets1 | 1.45 | % | 1.08 | % | 0.64 | % | |||||
| Adjusted: Return on average assets1 | 1.46 | % | 1.31 | % | 0.64 | % | |||||
| 1Annualized measure. | |||||||||||
| Reconciliation of Non-GAAP Financial Measures – Adjusted Net Interest Margin (Unaudited) | |||||||||||
| (dollars in thousands) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| Reported: Net interest income | $ | 64,893 | $ | 72,936 | $ | 69,433 | |||||
| Tax-equivalent adjustment | 601 | 655 | 730 | ||||||||
| Purchase accounting accretion related to business combinations | (2,157 | ) | (2,469 | ) | (2,827 | ) | |||||
| Adjusted: Net interest income | $ | 63,337 | $ | 71,122 | $ | 67,336 | |||||
| Average interest earning assets | 9,752,294 | 9,557,265 | 8,817,544 | ||||||||
| Reported: Net interest margin1 | 2.72 | % | 3.06 | % | 3.20 | % | |||||
| Adjusted: Net interest margin1 | 2.63 | % | 2.96 | % | 3.07 | % | |||||
| 1Annualized measure. | |||||||||||
| Reconciliation of Non-GAAP Financial Measures – Adjusted Efficiency Ratio (Unaudited) | |||||||||||
| (dollars in thousands) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| Reported: Net interest income | $ | 64,893 | $ | 72,936 | $ | 69,433 | |||||
| Tax-equivalent adjustment | 601 | 655 | 730 | ||||||||
| Tax equivalent interest income | $ | 65,494 | $ | 73,591 | $ | 70,163 | |||||
| Reported: Non-interest income | $ | 31,445 | $ | 30,499 | $ | 27,517 | |||||
| Less security (gains) and losses, net | (1,641 | ) | (855 | ) | (587 | ) | |||||
| Adjusted: Non-interest income | $ | 29,804 | $ | 29,644 | $ | 26,930 | |||||
| Reported: Non-interest expense | $ | 54,499 | $ | 64,073 | $ | 60,514 | |||||
| Amortization of intangible assets | (2,401 | ) | (2,439 | ) | (2,557 | ) | |||||
| Non-operating adjustments: | |||||||||||
| Salaries, wages, and employee benefits | — | (113 | ) | — | |||||||
| Data processing | (7 | ) | (56 | ) | — | ||||||
| Impairment, professional fees, and other | (313 | ) | (7,381 | ) | (145 | ) | |||||
| Adjusted: Non-interest expense | $ | 51,778 | $ | 54,084 | $ | 57,812 | |||||
| Reported: Efficiency ratio | 54.67 | % | 59.70 | % | 59.69 | % | |||||
| Adjusted: Efficiency ratio | 54.33 | % | 52.39 | % | 59.54 | % | |||||
| Reconciliation of Non-GAAP Financial Measures – Tangible common equity, Tangible common equity to tangible assets, Tangible book value per share, Return on average tangible common equity (Unaudited) | |||||||||||
| (dollars in thousands, except per share data) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2021 | 2020 | 2020 | |||||||||
| Total assets | $ | 10,759,563 | $ | 10,544,047 | $ | 9,721,405 | |||||
| Goodwill and other intangible assets, net | (361,120 | ) | (363,521 | ) | (370,572 | ) | |||||
| Tax effect of other intangible assets, net | 13,883 | 14,556 | 16,530 | ||||||||
| Tangible assets | $ | 10,412,326 | $ | 10,195,082 | $ | 9,367,363 | |||||
| Total stockholders’ equity | $ | 1,265,822 | $ | 1,270,069 | $ | 1,217,585 | |||||
| Goodwill and other intangible assets, net | (361,120 | ) | (363,521 | ) | (370,572 | ) | |||||
| Tax effect of other intangible assets, net | 13,883 | 14,556 | 16,530 | ||||||||
| Tangible common equity | $ | 918,585 | $ | 921,104 | $ | 863,543 | |||||
| Ending number of common shares outstanding | 54,345,379 | 54,404,379 | 54,401,208 | ||||||||
| Tangible common equity to tangible assets1 | 8.82 | % | 9.03 | % | 9.22 | % | |||||
| Tangible book value per share | $ | 16.65 | $ | 16.66 | $ | 15.57 | |||||
| Average common equity | $ | 1,275,694 | $ | 1,261,298 | $ | 1,218,160 | |||||
| Average goodwill and other intangible assets, net | (362,693 | ) | (365,120 | ) | (372,240 | ) | |||||
| Average tangible common equity | $ | 913,001 | $ | 896,178 | $ | 845,920 | |||||
| Reported: Return on average tangible common equity2 | 16.80 | % | 12.58 | % | 7.30 | % | |||||
| Adjusted: Return on average tangible common equity2,3 | 16.91 | % | 15.21 | % | 7.36 | % | |||||
| 1Tax-effected measure, | |||||||||||
| 2Annualized measure. | |||||||||||
| 3Calculated using adjusted net income. | |||||||||||
Special Note Concerning Forward-Looking Statements
Statements made in this document, 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 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 Company’s ability to control or predict, could cause actual results to differ materially from those in the Company’s forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national, and international economy (including the impact of the new presidential administration); (ii) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics (including the COVID-19 pandemic), or other adverse external events that could cause economic deterioration or instability in credit markets; (iii) changes in state and federal laws, regulations, and governmental policies concerning the Company’s general business; (iv) changes in accounting policies and practices, including FASB’s CECL impairment standards; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of The London Inter-bank Offered Rate phase-out); (vi) increased competition in the financial services sector and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) the loss of key executives or associates; (ix) changes in consumer spending; (x) unexpected results of current and/or future acquisitions, which may include failure to realize the anticipated benefits of any acquisition and the possibility that the transaction costs may be greater than anticipated; (xi) unexpected outcomes of existing or new litigation involving the Company; 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 the Company and its business, including additional factors that could materially affect its financial results, is included in the Company’s filings with the Securities and Exchange Commission.
FAQ
What was First Busey Corporation's net income in Q1 2021?
How did First Busey's diluted EPS change in Q1 2021?
What are the recent financial highlights for BUSE?
What impact did the acquisition of Cummins-American Corp. have on BUSE?
What challenges did First Busey face regarding net interest income?
