First Busey Announces 2022 Second Quarter Earnings
First Busey Corporation (Nasdaq: BUSE) reported second quarter 2022 net income of $29.8 million, or $0.53 per diluted share, reflecting a strong core loan growth of $249.1 million and a 13.8% annualized growth rate. Adjusted net income stood at $30.1 million, with adjusted EPS of $0.54. The company completed a $100 million subordinated debt issuance to enhance its capital position and maintain a net interest margin of 2.68%. Non-performing assets were low at 0.15% of total assets, indicating robust asset quality.
- Core loan growth of $249.1 million, 13.8% annualized growth.
- Net interest margin increased to 2.68%, up 23 basis points from previous quarter.
- Successful completion of $100 million subordinated debt issuance.
- Net security losses of $1.7 million reported.
- Wealth management fees decreased from $15.8 million to $14.1 million quarter-over-quarter.
CHAMPAIGN, Ill., July 26, 2022 (GLOBE NEWSWIRE) -- CHAMPAIGN, IL – (GLOBE NEWSWIRE) – First Busey Corporation (Nasdaq: BUSE)
Message from our Chairman & CEO
Second Quarter 2022 Highlights:
- Second quarter 2022 net income of
$29.8 million and diluted EPS of$0.53 - Second quarter 2022 adjusted net income1 of
$30.1 million and adjusted diluted EPS1 of$0.54 - Second quarter 2022 net income and adjusted net income include the impact of net security losses of
$1.7 million - Core loan1 growth of
$249.1 million in the second quarter of 2022, representing a13.8% annualized growth rate - Second quarter 2022 net interest margin reflects a 23 basis point increase over last quarter
- Non-performing assets of
0.15% of total assets and annualized net charge-off ratio of0.06% in the second quarter - Busey Wealth Management revenue of
$14.1 million in the second quarter of 2022 - FirsTech revenue2 of
$5.4 million for the second quarter of 2022, up from$4.8 million for the second quarter of 2021, representing10.8% year-over-year growth - Completed
$100 million subordinated debt issuance to enhance capital and liquidity positions - For additional information, please refer to the 2Q22 Quarterly Earnings Supplement
Second Quarter Financial Results
Net income for First Busey Corporation (“First Busey” or the “Company”) for the second quarter of 2022 was
Pre-provision net revenue1 for the second quarter of 2022 was
The Company experienced its fifth consecutive quarter of strong core loan1 growth. Core loan1 growth of
The Company’s second quarter 2022 results include provision expense of
Our fee-based businesses continue to add revenue diversification. In the second quarter of 2022, wealth management fees were
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 second quarter of 2022 included
Subordinated debt issuance
To further enhance the Company’s strong capital and liquidity positions, during the second quarter of 2022 First Busey completed a successful public offering of
Community Banking
First Busey’s goal of being a strong community bank begins with outstanding associates. The Company is humbled to be named among the 2021 Best Banks to Work For by American Banker, the 2021 Best Places to Work in Money Management by Pensions and Investments, the 2022 Best Places to Work in Illinois by Daily Herald Business Ledger and the 2022 Best Companies to Work For in Florida by Florida Trend magazine.
As we enter the second half of 2022, we are cognizant of the evolving economic outlook and remain focused on protecting our fortress balance sheet. We are grateful for the opportunities to earn the business of our customers, based on the contributions of our talented associates and the continued support of our loyal shareholders.
/s/ Van A. Dukeman
Chairman, President & Chief Executive Officer
First Busey Corporation
| SELECTED FINANCIAL HIGHLIGHTS (unaudited) | ||||||||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||
| EARNINGS & PER SHARE AMOUNTS | ||||||||||||||||
| Net income | $ | 29,824 | $ | 28,439 | $ | 29,766 | $ | 58,263 | $ | 67,582 | ||||||
| Diluted earnings per share | 0.53 | 0.51 | 0.53 | 1.04 | 1.22 | |||||||||||
| Cash dividends paid per share | 0.23 | 0.23 | 0.23 | 0.46 | 0.46 | |||||||||||
| Pre-provision net revenue 1, 2 | 39,569 | 36,066 | 34,030 | 75,635 | 74,228 | |||||||||||
| Revenue 3 | 108,661 | 106,442 | 96,655 | 215,103 | 191,352 | |||||||||||
| Net income by operating segments: | ||||||||||||||||
| Banking | 30,499 | 26,451 | 29,237 | 56,950 | 64,765 | |||||||||||
| FirsTech | 397 | 550 | 401 | 947 | 830 | |||||||||||
| Wealth Management | 5,092 | 5,840 | 4,885 | 10,932 | 9,567 | |||||||||||
| AVERAGE BALANCES | ||||||||||||||||
| Cash and cash equivalents | $ | 351,697 | $ | 687,455 | $ | 647,465 | $ | 518,647 | $ | 592,267 | ||||||
| Investment securities | 3,841,011 | 3,970,356 | 3,031,250 | 3,905,326 | 2,797,762 | |||||||||||
| Loans held for sale | 3,089 | 11,930 | 22,393 | 7,485 | 26,858 | |||||||||||
| Portfolio loans | 7,378,969 | 7,160,837 | 6,889,551 | 7,270,506 | 6,813,530 | |||||||||||
| Interest-earning assets | 11,453,198 | 11,703,947 | 10,448,417 | 11,577,879 | 10,102,278 | |||||||||||
| Total assets | 12,452,070 | 12,660,939 | 11,398,655 | 12,555,928 | 10,998,672 | |||||||||||
| Noninterest bearing deposits | 3,535,110 | 3,589,952 | 2,970,890 | 3,562,380 | 2,830,646 | |||||||||||
| Interest-bearing deposits | 6,971,083 | 7,027,486 | 6,432,336 | 6,999,129 | 6,234,076 | |||||||||||
| Total deposits | 10,506,193 | 10,617,438 | 9,403,226 | 10,561,509 | 9,064,722 | |||||||||||
| Securities sold under agreements to repurchase and federal funds purchased | 235,733 | 271,095 | 204,417 | 253,316 | 194,610 | |||||||||||
| Interest-bearing liabilities | 7,574,677 | 7,654,661 | 6,966,046 | 7,614,448 | 6,744,850 | |||||||||||
| Total liabilities | 11,255,018 | 11,379,404 | 10,055,884 | 11,316,868 | 9,689,254 | |||||||||||
| Stockholders' equity - common | 1,197,052 | 1,281,535 | 1,342,771 | 1,239,060 | 1,309,418 | |||||||||||
| Average tangible common equity 2 | 825,162 | 906,724 | 974,062 | 865,718 | 943,700 | |||||||||||
| PERFORMANCE RATIOS | ||||||||||||||||
| Pre-provision net revenue to average assets 1, 2 | 1.27 | % | 1.16 | % | 1.20 | % | 1.21 | % | 1.36 | % | ||||||
| Return on average assets | 0.96 | % | 0.91 | % | 1.05 | % | 0.94 | % | 1.24 | % | ||||||
| Return on average common equity | 9.99 | % | 9.00 | % | 8.89 | % | 9.48 | % | 10.41 | % | ||||||
| Return on average tangible common equity 2 | 14.50 | % | 12.72 | % | 12.26 | % | 13.57 | % | 14.44 | % | ||||||
| Net interest margin 2, 4 | 2.68 | % | 2.45 | % | 2.50 | % | 2.56 | % | 2.61 | % | ||||||
| Efficiency ratio 2 | 60.56 | % | 62.97 | % | 61.68 | % | 61.75 | % | 58.21 | % | ||||||
| Noninterest revenue as a % of total revenues 3 | 30.12 | % | 34.18 | % | 33.22 | % | 32.13 | % | 32.36 | % | ||||||
| NON-GAAP FINANCIAL INFORMATION | ||||||||||||||||
| Adjusted pre-provision net revenue 1, 2 | $ | 41,267 | $ | 39,354 | $ | 37,486 | $ | 80,621 | $ | 80,239 | ||||||
| Adjusted net income 2 | 30,081 | 29,104 | 31,921 | 59,185 | 69,986 | |||||||||||
| Adjusted diluted earnings per share 2 | 0.54 | 0.52 | 0.57 | 1.05 | 1.26 | |||||||||||
| Adjusted pre-provision net revenue to average assets 2 | 1.33 | % | 1.26 | % | 1.32 | % | 1.29 | % | 1.47 | % | ||||||
| Adjusted return on average assets 2 | 0.97 | % | 0.93 | % | 1.12 | % | 0.95 | % | 1.28 | % | ||||||
| Adjusted return on average tangible common equity 2 | 14.62 | % | 13.02 | % | 13.14 | % | 13.79 | % | 14.96 | % | ||||||
| Adjusted net interest margin 2, 4 | 2.66 | % | 2.41 | % | 2.43 | % | 2.53 | % | 2.53 | % | ||||||
| Adjusted efficiency ratio 2 | 60.29 | % | 62.18 | % | 58.89 | % | 61.23 | % | 56.63 | % | ||||||
| 1 Net interest income plus noninterest income, excluding securities gains and losses, less noninterest expense. | ||||||||||||||||
| 2 See “Non-GAAP Financial Information” for reconciliation. | ||||||||||||||||
| 3 Revenue consists of net interest income plus noninterest income, excluding securities 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 amounts) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||
| 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Cash and cash equivalents | $ | 230,852 | $ | 479,228 | $ | 836,095 | $ | 883,845 | $ | 920,810 | ||||||||||
| Investment securities | 3,708,922 | 3,941,656 | 3,994,822 | 4,010,256 | 3,478,467 | |||||||||||||||
| Loans held for sale | 4,813 | 6,765 | 23,875 | 20,225 | 17,834 | |||||||||||||||
| Commercial loans | 5,613,955 | 5,486,817 | 5,449,689 | 5,431,342 | 5,475,461 | |||||||||||||||
| Retail real estate and retail other loans | 1,883,823 | 1,786,056 | 1,739,309 | 1,719,293 | 1,710,189 | |||||||||||||||
| Portfolio loans | 7,497,778 | 7,272,873 | 7,188,998 | 7,150,635 | 7,185,650 | |||||||||||||||
| Allowance for credit losses | (88,757 | ) | (88,213 | ) | (87,887 | ) | (92,802 | ) | (95,410 | ) | ||||||||||
| Premises and equipment | 130,892 | 133,658 | 136,147 | 142,031 | 145,437 | |||||||||||||||
| Goodwill and other intangibles | 369,962 | 372,913 | 375,924 | 378,891 | 381,795 | |||||||||||||||
| Right of use asset | 8,615 | 9,014 | 10,533 | 11,068 | 8,228 | |||||||||||||||
| Other assets | 493,356 | 439,615 | 381,182 | 395,181 | 372,638 | |||||||||||||||
| Total assets | $ | 12,356,433 | $ | 12,567,509 | $ | 12,859,689 | $ | 12,899,330 | $ | 12,415,449 | ||||||||||
| LIABILITIES & STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Noninterest bearing deposits | $ | 3,505,299 | $ | 3,568,651 | $ | 3,670,267 | $ | 3,453,906 | $ | 3,186,650 | ||||||||||
| Interest checking, savings, and money market deposits | 6,074,108 | 6,132,355 | 6,162,661 | 6,337,026 | 6,034,871 | |||||||||||||||
| Time deposits | 817,821 | 890,830 | 935,649 | 1,026,935 | 1,115,596 | |||||||||||||||
| Total deposits | $ | 10,397,228 | $ | 10,591,836 | $ | 10,768,577 | $ | 10,817,867 | $ | 10,337,117 | ||||||||||
| Securities sold under agreements to repurchase | $ | 228,383 | $ | 255,668 | $ | 270,139 | $ | 241,242 | $ | 207,266 | ||||||||||
| Short-term borrowings | 16,396 | 17,683 | 17,678 | 17,673 | 30,168 | |||||||||||||||
| Long-term debt | 317,304 | 265,769 | 268,773 | 271,780 | 274,788 | |||||||||||||||
| Junior subordinated debt owed to unconsolidated trusts | 71,721 | 71,678 | 71,635 | 71,593 | 71,551 | |||||||||||||||
| Lease liability | 8,655 | 9,067 | 10,591 | 11,120 | 8,280 | |||||||||||||||
| Other liabilities | 154,789 | 137,783 | 133,184 | 134,979 | 140,588 | |||||||||||||||
| Total liabilities | $ | 11,194,476 | $ | 11,349,484 | $ | 11,540,577 | $ | 11,566,254 | $ | 11,069,758 | ||||||||||
| Total stockholders' equity | $ | 1,161,957 | $ | 1,218,025 | $ | 1,319,112 | $ | 1,333,076 | $ | 1,345,691 | ||||||||||
| Total liabilities & stockholders' equity | $ | 12,356,433 | $ | 12,567,509 | $ | 12,859,689 | $ | 12,899,330 | $ | 12,415,449 | ||||||||||
| SHARE AND PER SHARE AMOUNTS | ||||||||||||||||||||
| Book value per common share | $ | 21.00 | $ | 22.03 | $ | 23.80 | $ | 23.88 | $ | 23.89 | ||||||||||
| Tangible book value per common share 1 | $ | 14.31 | $ | 15.29 | $ | 17.01 | $ | 17.09 | $ | 17.11 | ||||||||||
| Ending number of common shares outstanding | 55,335,703 | 55,278,785 | 55,434,910 | 55,826,984 | 56,330,616 | |||||||||||||||
| 1 See "Non-GAAP Financial Information" for reconciliation. | ||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) | |||||||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||
| INTEREST INCOME | |||||||||||||||||||||
| Interest and fees on loans held for sale and portfolio | $ | 65,567 | $ | 60,882 | $ | 61,404 | $ | 126,449 | $ | 123,969 | |||||||||||
| Interest on investment securities | 16,671 | 14,932 | 10,039 | 31,603 | 19,655 | ||||||||||||||||
| Other interest income | 358 | 277 | 245 | 635 | 395 | ||||||||||||||||
| Total interest income | $ | 82,596 | $ | 76,091 | $ | 71,688 | $ | 158,687 | $ | 144,019 | |||||||||||
| INTEREST EXPENSE | |||||||||||||||||||||
| Interest on deposits | $ | 2,146 | $ | 2,124 | $ | 3,295 | $ | 4,270 | $ | 7,027 | |||||||||||
| Interest on securities sold under agreements to repurchase and federal funds purchased | 147 | 59 | 60 | 206 | 117 | ||||||||||||||||
| Interest on short-term borrowings | 147 | 89 | 64 | 236 | 83 | ||||||||||||||||
| Interest on long-term debt | 3,520 | 3,109 | 2,995 | 6,629 | 5,900 | ||||||||||||||||
| Junior subordinated debt owed to unconsolidated trusts | 708 | 654 | 732 | 1,362 | 1,457 | ||||||||||||||||
| Total interest expense | $ | 6,668 | $ | 6,035 | $ | 7,146 | $ | 12,703 | $ | 14,584 | |||||||||||
| Net interest income | $ | 75,928 | $ | 70,056 | $ | 64,542 | $ | 145,984 | $ | 129,435 | |||||||||||
| Provision for credit losses | 1,653 | (253 | ) | (1,700 | ) | 1,400 | (8,496 | ) | |||||||||||||
| Net interest income after provision for credit losses | $ | 74,275 | $ | 70,309 | $ | 66,242 | $ | 144,584 | $ | 137,931 | |||||||||||
| NONINTEREST INCOME | |||||||||||||||||||||
| Wealth management fees | $ | 14,135 | $ | 15,779 | $ | 13,002 | $ | 29,914 | $ | 25,586 | |||||||||||
| Fees for customer services | 9,588 | 8,907 | 8,611 | 18,495 | 16,648 | ||||||||||||||||
| Payment technology solutions | 4,888 | 5,077 | 4,530 | 9,965 | 9,151 | ||||||||||||||||
| Mortgage revenue | 284 | 975 | 1,747 | 1,259 | 4,413 | ||||||||||||||||
| Income on bank owned life insurance | 874 | 884 | 1,476 | 1,758 | 2,440 | ||||||||||||||||
| Net securities gains (losses) | (1,714 | ) | (614 | ) | 898 | (2,328 | ) | 2,539 | |||||||||||||
| Other noninterest income | 2,964 | 4,764 | 2,747 | 7,728 | 3,679 | ||||||||||||||||
| Total noninterest income | $ | 31,019 | $ | 35,772 | $ | 33,011 | $ | 66,791 | $ | 64,456 | |||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||||
| Salaries, wages, and employee benefits | $ | 38,110 | $ | 39,354 | $ | 34,889 | $ | 77,464 | $ | 65,273 | |||||||||||
| Data processing expense | 5,375 | 4,978 | 4,819 | 10,353 | 9,099 | ||||||||||||||||
| Net occupancy expense | 4,720 | 5,067 | 4,246 | 9,787 | 8,809 | ||||||||||||||||
| Furniture and equipment expense | 2,045 | 2,030 | 2,066 | 4,075 | 4,092 | ||||||||||||||||
| Professional fees | 1,607 | 1,507 | 2,311 | 3,114 | 4,256 | ||||||||||||||||
| Amortization of intangible assets | 2,951 | 3,011 | 2,650 | 5,962 | 5,051 | ||||||||||||||||
| Interchange expense | 1,487 | 1,545 | 1,442 | 3,032 | 2,926 | ||||||||||||||||
| Other operating expenses | 12,797 | 12,884 | 10,202 | 25,681 | 17,618 | ||||||||||||||||
| Total noninterest expense | $ | 69,092 | $ | 70,376 | $ | 62,625 | $ | 139,468 | $ | 117,124 | |||||||||||
| Income before income taxes | $ | 36,202 | $ | 35,705 | $ | 36,628 | $ | 71,907 | $ | 85,263 | |||||||||||
| Income taxes | 6,378 | 7,266 | 6,862 | 13,644 | 17,681 | ||||||||||||||||
| Net income | $ | 29,824 | $ | 28,439 | $ | 29,766 | $ | 58,263 | $ | 67,582 | |||||||||||
| SHARE AND PER SHARE AMOUNTS | |||||||||||||||||||||
| Basic earnings per common share | $ | 0.54 | $ | 0.51 | $ | 0.54 | $ | 1.05 | $ | 1.23 | |||||||||||
| Fully-diluted earnings per common share | $ | 0.53 | $ | 0.51 | $ | 0.53 | $ | 1.04 | $ | 1.22 | |||||||||||
| Average common shares outstanding | 55,421,887 | 55,427,696 | 55,050,071 | 55,424,776 | 54,762,563 | ||||||||||||||||
| Diluted average common shares outstanding | 56,104,017 | 56,194,946 | 55,730,883 | 56,149,466 | 55,384,942 | ||||||||||||||||
Balance Sheet Growth
Our balance sheet remains a source of strength. Total assets were
Average portfolio loans were
Total deposits were
During the second quarter of 2022, we redeemed
Net Interest Margin1 and Net Interest Income
Net interest margin1 for the second quarter of 2022 was
The Federal Open Market Committee (FOMC) raised rates during the first quarter of 2022, for the first time in three years, and again in both May and June 2022. Rising rates have a positive impact on net interest margin1, as assets, in particular commercial loans, reprice more quickly and to a greater extent than liabilities. Given the timing of the FOMC meetings in May and June, the full benefit of the associated movement in rates to our net interest margin will be largely realized in subsequent quarters. In general, net interest margins1 have been impacted over the last two years by PPP loans, significant growth in the Company’s liquidity position, and the issuance of debt. Factors contributing to the 23 basis point increase in net interest margin during the second quarter of 2022 include:
- Loan growth and higher new volume and repricing rates which contributed +23 basis points
- Increases in the cash and securities portfolio yield which contributed +7 basis points
- Reduced volume of PPP loan forgiveness which contributed -3 basis points
- Reduced recognition of purchase accounting accretion which contributed -2 basis points
- Increase in borrowing costs contributed -2 basis points
Future FOMC rate decisions are expected to continue to be a net positive to net interest margin. Based on our most recent Asset Liability Management Committee (ALCO) model, a 100 basis point parallel rate shock is expected to increase net interest income by
Asset Quality
Despite a small uptick in non-performing assets in the second quarter of 2022 over the first quarter of 2022, credit quality continues to be exceptionally strong. Loans 30-89 days past due increased to
Net charge-offs totaled
The Company maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment.
| ASSET QUALITY (unaudited) | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||
| As of | ||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||
| 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||
| Total assets | $ | 12,356,433 | $ | 12,567,509 | $ | 12,859,689 | $ | 12,899,330 | $ | 12,415,449 | ||||||
| Portfolio loans | 7,497,778 | 7,272,873 | 7,188,998 | 7,150,635 | 7,185,650 | |||||||||||
| Portfolio loans excluding amortized cost of PPP loans | 7,490,162 | 7,241,104 | 7,114,040 | 6,972,404 | 6,795,255 | |||||||||||
| Loans 30 – 89 days past due | 5,157 | 3,916 | 6,261 | 6,446 | 3,888 | |||||||||||
| Non-performing loans: | ||||||||||||||||
| Non-accrual loans | 15,840 | 12,488 | 15,946 | 25,369 | 27,725 | |||||||||||
| Loans 90+ days past due and still accruing | 1,654 | 197 | 906 | 491 | 590 | |||||||||||
| Non-performing loans | $ | 17,494 | $ | 12,685 | $ | 16,852 | $ | 25,860 | $ | 28,315 | ||||||
| Non-performing loans, segregated by geography: | ||||||||||||||||
| Illinois / Indiana | $ | 11,261 | $ | 6,467 | $ | 10,450 | $ | 17,824 | $ | 21,398 | ||||||
| Missouri | 5,259 | 5,263 | 5,349 | 6,736 | 5,645 | |||||||||||
| Florida | 974 | 955 | 1,053 | 1,300 | 1,272 | |||||||||||
| Other non-performing assets | 1,429 | 3,606 | 4,416 | 3,184 | 3,137 | |||||||||||
| Non-performing assets | $ | 18,923 | $ | 16,291 | $ | 21,268 | $ | 29,044 | $ | 31,452 | ||||||
| Allowance for credit losses | $ | 88,757 | $ | 88,213 | $ | 87,887 | $ | 92,802 | $ | 95,410 | ||||||
| RATIOS | ||||||||||||||||
| Non-performing loans to portfolio loans | 0.23 | % | 0.17 | % | 0.23 | % | 0.36 | % | 0.39 | % | ||||||
| Non-performing loans to portfolio loans, excluding PPP loans | 0.23 | % | 0.18 | % | 0.24 | % | 0.37 | % | 0.42 | % | ||||||
| Non-performing assets to total assets | 0.15 | % | 0.13 | % | 0.17 | % | 0.23 | % | 0.25 | % | ||||||
| Non-performing assets to portfolio loans and other non-performing assets | 0.25 | % | 0.22 | % | 0.30 | % | 0.41 | % | 0.44 | % | ||||||
| Allowance for credit losses to portfolio loans | 1.18 | % | 1.21 | % | 1.22 | % | 1.30 | % | 1.33 | % | ||||||
| Allowance for credit losses to portfolio loans, excluding PPP | 1.18 | % | 1.22 | % | 1.24 | % | 1.33 | % | 1.40 | % | ||||||
| Allowance for credit losses as a percentage of non-performing loans | 507.36 | % | 695.41 | % | 521.52 | % | 358.86 | % | 336.96 | % | ||||||
| NET CHARGE OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) (unaudited) | ||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Net charge-offs (recoveries) | $ | 1,109 | $ | (579 | ) | $ | 1,011 | $ | 530 | $ | 1,320 | |||||||
| Provision expense (release) | 1,653 | (253 | ) | (1,700 | ) | 1,400 | (8,496 | ) | ||||||||||
Noninterest Income
Noninterest income declined to
Wealth management fees were
Payment technology solutions revenue from FirsTech was
Fees for customer services were
Mortgage revenue was
Other noninterest income was
Beginning on July 1, 2022, we became subject to the Durbin Amendment of the Dodd-Frank Act. The Durbin Amendment requires the Federal Reserve to establish a maximum permissible interchange fee for many types of debit transactions. We expect a
Operating Efficiency
Noninterest expense was
Noteworthy components of noninterest expense are as follows:
- Salaries, wages, and employee benefits were
$38.1 million in the second quarter of 2022, a decrease from$39.4 million in the first quarter of 2022, and an increase from$34.9 million in the second quarter of 2021. Total full-time equivalents numbered 1,493 at June 30, 2022, compared to 1,465 at March 31, 2022, and 1,503 at June 30, 2021. The Company did not record any non-operating expense for salaries, wages, and employee benefit expenses in the second quarter of 2022, compared to$0.6 million in the first quarter of 2022 and$1.1 million in the second quarter of 2021.
- Data processing expense was
$5.4 million in the second quarter of 2022, compared to$5.0 million in the first quarter of 2022 and$4.8 million in the second quarter of 2021. The Company did not record any non-operating data processing expenses in the second quarter of 2022, compared to$0.2 million in the first quarter of 2022 and$0.4 million in the second quarter of 2021.
- Professional fees were
$1.6 million in the second quarter of 2022, an increase from$1.5 million in the first quarter of 2022 and a decrease from$2.3 million in the second quarter of 2021. The Company recorded$0.2 million of non-operating professional fees in the second quarter of 2022, compared to an immaterial amount in the first quarter of 2022 and$0.9 million in the second quarter of 2021.
- Amortization expense was
$3.0 million in the second quarter of 2022, holding steady with the first quarter of 2022 and an increase from$2.7 million in the second quarter of 2021. We completed the acquisition of Glenview State Bank (GSB) on May 31, 2021, and as a result, the second quarter of 2021 reflects only one month of amortization expense related to the acquisition of GSB.
- Other operating expenses were
$12.8 million for the second quarter of 2022, a decrease from$12.9 million in the first quarter of 2022, and an increase from$10.2 million in the second quarter of 2021. The Company recorded$0.1 million of non-operating expenses within the other operating expense line in the second quarter of 2022, compared to an immaterial amount in the first quarter of 2022 and$0.2 million in the second quarter of 2021. There was an additional$0.2 million of lease termination expenses related to the exit of two properties during the second quarter. Other operating expense fluctuations primarily relate to a decrease in the provision for unfunded commitments of$1.4 million from the first quarter to the second quarter, a$1.0 million increase in business development and marketing expenses from the first quarter to the second quarter, a decline in losses on OREO sales from$0.6 million in the first quarter to an immaterial amount in the second, an increase of$0.3 million in the amortization of New Markets Tax Credits from the first quarter to the second quarter, and higher regulatory costs.
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 July 29, 2022, of
As of June 30, 2022, the Company continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines. The Company’s Common Equity Tier 1 ratio is estimated to be
During the second quarter of 2022, the Company purchased 70,000 shares of its common stock at a weighted average price of
2Q22 Quarterly Earnings Supplement
For additional information on the Company’s financial condition and operating results, please refer to the 2Q22 Quarterly Earnings Supplement presentation furnished via Form 8-K on July 26, 2022, in connection with this earnings release.
Corporate Profile
As of June 30, 2022, First Busey Corporation (Nasdaq: BUSE) was a
Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of
Busey Bank’s wholly-owned subsidiary, FirsTech, is a payments platform specializing in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. With associates across the United States, FirsTech provides comprehensive and innovative payment technology solutions that enable businesses to connect with their customers in a multitude of ways on a single, highly configurable, secure platform. Fast, secure payment modes include, but are not limited to, text-based payments; electronic payments concentration delivered to Automated Clearing House networks; internet voice recognition (IVR); credit cards; in-store payments for customers at retail pay agents; direct debit services; and lockbox remittance processing for customers to make payments by mail. Once these payments are processed through integration with our customers’ financial systems, FirsTech provides its customers with reconciliation and settlement services to ensure payment confirmation. Additionally, FirsTech provides consulting and technology services through its Professional Services Division, assisting clients in identifying and implementing payment technologies to meet their evolving needs. FirsTech launched its innovative BaaS platform at the beginning of 2022, helping community banks and their commercial customers build modernized payment solutions, which include online payment technologies and automated file transfers. More information about FirsTech can be found at firstechpayments.com.
Through the Company’s Wealth Management division, the Company provides asset management, investment, and fiduciary services to individuals, businesses, and foundations. As of June 30, 2022, assets under care were
Busey Bank has been named among America’s Best Banks for 2022, a first-ever recognition by Forbes magazine. Ranked 52nd overall, Busey was the top-ranked bank headquartered in Illinois; only three other Illinois-based banks were included on the list. We are honored to be consistently recognized nationally and locally 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
Ted Rosinus, EVP Investor Relations & Corporate Development
847-832-0392
Non-GAAP Financial Information
This earnings release contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of the Company’s performance and in making business decisions, as well as for comparison to the Company’s peers. The Company believes the adjusted measures are useful for investors and management to understand the effects of certain non-recurring noninterest items and provide additional perspective on the Company’s performance over time.
A reconciliation to what management believes to be the most directly comparable GAAP financial measures—specifically, net interest income, total noninterest income, net security gains and losses, and total noninterest expense in the case of pre-provision net revenue, adjusted pre-provision net revenue, pre-provision net revenue to average assets, and adjusted pre-provision net revenue to average assets; net income in the case of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, return on average tangible common equity, and adjusted return on average tangible common equity; net interest income in the case of adjusted net interest income and adjusted net interest margin; net interest income, total noninterest income, and total noninterest expense in the case of adjusted noninterest expense, adjusted core expense, efficiency ratio, adjusted efficiency ratio, and adjusted core efficiency ratio; total stockholders’ equity in the case of tangible book value per common share; total assets and total stockholders’ equity in the case of tangible common equity and tangible common equity to tangible assets; portfolio loans in the case of core loans and core loans to portfolio loans; total deposits in the case of core deposits and core deposits to total deposits; and portfolio loans and total deposits in the case of core loans to core deposits—appears below.
These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating 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.
| Pre-Provision Net Revenue, Adjusted Pre-Provision Net Revenue, Pre-Provision Net Revenue to Average Assets, and Adjusted Pre-Provision Net Revenue to Average Assets | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
| PRE-PROVISION NET REVENUE | ||||||||||||||||||||||
| Net interest income | $ | 75,928 | $ | 70,056 | $ | 64,542 | $ | 145,984 | $ | 129,435 | ||||||||||||
| Total noninterest income | 31,019 | 35,772 | 33,011 | 66,791 | 64,456 | |||||||||||||||||
| Net security (gains) losses | 1,714 | 614 | (898 | ) | 2,328 | (2,539 | ) | |||||||||||||||
| Total noninterest expense | (69,092 | ) | (70,376 | ) | (62,625 | ) | (139,468 | ) | (117,124 | ) | ||||||||||||
| Pre-provision net revenue | 39,569 | 36,066 | 34,030 | 75,635 | 74,228 | |||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Acquisition and other restructuring expenses | 303 | 835 | 2,713 | 1,138 | 3,033 | |||||||||||||||||
| Provision for unfunded commitments | (267 | ) | 1,112 | (496 | ) | 845 | (90 | ) | ||||||||||||||
| Amortization of New Markets Tax Credits | 1,662 | 1,341 | 1,239 | 3,003 | 3,068 | |||||||||||||||||
| Adjusted pre-provision net revenue | $ | 41,267 | $ | 39,354 | $ | 37,486 | $ | 80,621 | $ | 80,239 | ||||||||||||
| Pre-provision net revenue, annualized | [a] | $ | 158,711 | $ | 146,268 | $ | 136,494 | $ | 152,524 | $ | 149,686 | |||||||||||
| Adjusted pre-provision net revenue, annualized | [b] | 165,521 | 159,602 | 150,356 | 162,578 | 161,808 | ||||||||||||||||
| Average total assets | [c] | 12,452,070 | 12,660,939 | 11,398,655 | 12,555,928 | 10,998,672 | ||||||||||||||||
| Reported: Pre-provision net revenue to average assets 1 | [a÷c] | 1.27 | % | 1.16 | % | 1.20 | % | 1.21 | % | 1.36 | % | |||||||||||
| Adjusted: Pre-provision net revenue to average assets 1 | [b÷c] | 1.33 | % | 1.26 | % | 1.32 | % | 1.29 | % | 1.47 | % | |||||||||||
| 1 Annualized measure. | ||||||||||||||||||||||
| Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets, Return on Average Tangible Common Equity, and Adjusted Return on Average Tangible Common Equity | ||||||||||||||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
| NET INCOME ADJUSTED FOR NON-OPERATING ITEMS | ||||||||||||||||||||||
| Net income | [a] | $ | 29,824 | $ | 28,439 | $ | 29,766 | $ | 58,263 | $ | 67,582 | |||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Acquisition expenses: | ||||||||||||||||||||||
| Salaries, wages, and employee benefits | — | 587 | 1,125 | 587 | 1,125 | |||||||||||||||||
| Data processing | — | 214 | 368 | 214 | 375 | |||||||||||||||||
| Professional fees, occupancy, and other | 204 | 34 | 1,220 | 238 | 1,533 | |||||||||||||||||
| Other restructuring expenses: | ||||||||||||||||||||||
| Lease or fixed asset impairment | 99 | — | — | 99 | — | |||||||||||||||||
| Professional fees, occupancy, and other | — | — | — | — | — | |||||||||||||||||
| MSR valuation impairment | — | — | — | — | — | |||||||||||||||||
| Related tax benefit | (46 | ) | (170 | ) | (558 | ) | (216 | ) | (629 | ) | ||||||||||||
| Adjusted net income | [b] | $ | 30,081 | $ | 29,104 | $ | 31,921 | $ | 59,185 | $ | 69,986 | |||||||||||
| DILUTED EARNINGS PER SHARE | ||||||||||||||||||||||
| Dilutive average common shares outstanding | [c] | 56,104,017 | 56,194,946 | 55,730,883 | 56,149,466 | 55,384,942 | ||||||||||||||||
| Reported: Diluted earnings per share | [a÷c] | $ | 0.53 | $ | 0.51 | $ | 0.53 | $ | 1.04 | $ | 1.22 | |||||||||||
| Adjusted: Diluted earnings per share | [b÷c] | $ | 0.54 | $ | 0.52 | $ | 0.57 | $ | 1.05 | $ | 1.26 | |||||||||||
| RETURN ON AVERAGE ASSETS | ||||||||||||||||||||||
| Net income, annualized | [d] | $ | 119,624 | $ | 115,336 | $ | 119,391 | $ | 117,492 | $ | 136,284 | |||||||||||
| Adjusted net income, annualized | [e] | 120,655 | 118,033 | 128,035 | 119,351 | 141,132 | ||||||||||||||||
| Average total assets | [f] | 12,452,070 | 12,660,939 | 11,398,655 | 12,555,928 | 10,998,672 | ||||||||||||||||
| Reported: Return on average assets 1 | [d÷f] | 0.96 | % | 0.91 | % | 1.05 | % | 0.94 | % | 1.24 | % | |||||||||||
| Adjusted: Return on average assets 1 | [e÷f] | 0.97 | % | 0.93 | % | 1.12 | % | 0.95 | % | 1.28 | % | |||||||||||
| RETURN ON AVERAGE TANGIBLE COMMON EQUITY | ||||||||||||||||||||||
| Average common equity | $ | 1,197,052 | $ | 1,281,535 | $ | 1,342,771 | $ | 1,239,060 | $ | 1,309,418 | ||||||||||||
| Average goodwill and other intangible assets, net | (371,890 | ) | (374,811 | ) | (368,709 | ) | (373,342 | ) | (365,718 | ) | ||||||||||||
| Average tangible common equity | [g] | $ | 825,162 | $ | 906,724 | $ | 974,062 | $ | 865,718 | $ | 943,700 | |||||||||||
| Reported: Return on average tangible common equity 1 | [d÷g] | 14.50 | % | 12.72 | % | 12.26 | % | 13.57 | % | 14.44 | % | |||||||||||
| Adjusted: Return on average tangible common equity 1 | [e÷g] | 14.62 | % | 13.02 | % | 13.14 | % | 13.79 | % | 14.96 | % | |||||||||||
| 1 Annualized measure. | ||||||||||||||||||||||
| Adjusted Net Interest Margin | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
| Net interest income | $ | 75,928 | $ | 70,056 | $ | 64,542 | $ | 145,984 | $ | 129,435 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Tax-equivalent adjustment | 546 | 546 | 579 | 1,092 | 1,180 | |||||||||||||||||
| Tax-equivalent net interest income | 76,474 | 70,602 | 65,121 | 147,076 | 130,615 | |||||||||||||||||
| Purchase accounting accretion related to business combinations | (599 | ) | (1,159 | ) | (1,726 | ) | (1,758 | ) | (3,883 | ) | ||||||||||||
| Adjusted net interest income | $ | 75,875 | $ | 69,443 | $ | 63,395 | $ | 145,318 | $ | 126,732 | ||||||||||||
| Tax-equivalent net interest income, annualized | [a] | $ | 306,736 | $ | 286,330 | $ | 261,200 | $ | 296,590 | $ | 263,395 | |||||||||||
| Adjusted net interest income, annualized | [b] | 304,334 | 281,630 | 254,277 | 293,045 | 255,565 | ||||||||||||||||
| Average interest-earning assets | [c] | 11,453,198 | 11,703,947 | 10,448,417 | 11,577,879 | 10,102,278 | ||||||||||||||||
| Reported: Net interest margin 1 | [a÷c] | 2.68 | % | 2.45 | % | 2.50 | % | 2.56 | % | 2.61 | % | |||||||||||
| Adjusted: Net interest margin 1 | [b÷c] | 2.66 | % | 2.41 | % | 2.43 | % | 2.53 | % | 2.53 | % | |||||||||||
| 1 Annualized measure. | ||||||||||||||||||||||
| Adjusted Noninterest Expense, Adjusted Core Expense, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||||||||
| 2022 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
| Net interest income | $ | 75,928 | $ | 70,056 | $ | 64,542 | $ | 145,984 | $ | 129,435 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Tax-equivalent adjustment | 546 | 546 | 579 | 1,092 | 1,180 | |||||||||||||||||
| Tax-equivalent net interest income | 76,474 | 70,602 | 65,121 | 147,076 | 130,615 | |||||||||||||||||
| Total noninterest income | 31,019 | 35,772 | 33,011 | 66,791 | 64,456 | |||||||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Net security (gains) losses | 1,714 | 614 | (898 | ) | 2,328 | (2,539 | ) | |||||||||||||||
| Noninterest income excluding net securities gains and losses | 32,733 | 36,386 | 32,113 | 69,119 | 61,917 | |||||||||||||||||
| Tax-equivalent net interest income plus noninterest income excluding net securities gains and losses | [a] | $ | 109,207 | $ | 106,988 | $ | 97,234 | $ | 216,195 | $ | 192,532 | |||||||||||
| Total noninterest expense | $ | 69,092 | $ | 70,376 | $ | 62,625 | $ | 139,468 | $ | 117,124 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Amortization of intangible assets | [b] | (2,951 | ) | (3,011 | ) | (2,650 | ) | (5,962 | ) | (5,051 | ) | |||||||||||
| Non-interest expense excluding amortization of intangible assets | [c] | 66,141 | 67,365 | 59,975 | 133,506 | 112,073 | ||||||||||||||||
| Non-operating adjustments: | ||||||||||||||||||||||
| Salaries, wages, and employee benefits | — | (587 | ) | (1,125 | ) | (587 | ) | (1,125 | ) | |||||||||||||
| Data processing | — | (214 | ) | (368 | ) | (214 | ) | (375 | ) | |||||||||||||
| Impairment, professional fees, occupancy, and other | (303 | ) | (34 | ) | (1,220 | ) | (337 | ) | (1,533 | ) | ||||||||||||
| Adjusted noninterest expense | [d] | 65,838 | 66,530 | 57,262 | 132,368 | 109,040 | ||||||||||||||||
| Provision for unfunded commitments | 267 | (1,112 | ) | 496 | (845 | ) | 90 | |||||||||||||||
| Amortization of New Markets Tax Credit | (1,662 | ) | (1,341 | ) | (1,239 | ) | (3,003 | ) | (3,068 | ) | ||||||||||||
| Adjusted core expense | [e] | $ | 64,443 | $ | 64,077 | $ | 56,519 | $ | 128,520 | $ | 106,062 | |||||||||||
| Noninterest expense, excluding non-operating adjustments | [d-b] | $ | 68,789 | $ | 69,541 | $ | 59,912 | $ | 138,330 | $ | 114,091 | |||||||||||
| Reported: Efficiency ratio | [c÷a] | 60.56 | % | 62.97 | % | 61.68 | % | 61.75 | % | 58.21 | % | |||||||||||
| Adjusted: Efficiency ratio | [d÷a] | 60.29 | % | 62.18 | % | 58.89 | % | 61.23 | % | 56.63 | % | |||||||||||
| Adjusted: Core efficiency ratio | [e÷a] | 59.01 | % | 59.89 | % | 58.13 | % | 59.45 | % | 55.09 | % | |||||||||||
| Tangible Book Value Per Common Share | |||||||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||
| As of | |||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||||
| 2022 | 2022 | 2021 | 2021 | 2021 | |||||||||||||||||
| Total stockholders’ equity | $ | 1,161,957 | $ | 1,218,025 | $ | 1,319,112 | $ | 1,333,076 | $ | 1,345,691 | |||||||||||
| Goodwill and other intangible assets, net | (369,962 | ) | (372,913 | ) | (375,924 | ) | (378,891 | ) | (381,795 | ) | |||||||||||
| Tangible book value | [a] | $ | 791,995 | $ | 845,112 | $ | 943,188 | $ | 954,185 | $ | 963,896 | ||||||||||
| Ending number of common shares outstanding | [b] | 55,335,703 | 55,278,785 | 55,434,910 | 55,826,984 | 56,330,616 | |||||||||||||||
| Tangible book value per common share | [a÷b] | $ | 14.31 | $ | 15.29 | $ | 17.01 | $ | 17.09 | $ | 17.11 | ||||||||||
| Tangible Common Equity and Tangible Common Equity to Tangible Assets | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| As of | ||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||
| 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||||
| Total assets | $ | 12,356,433 | $ | 12,567,509 | $ | 12,859,689 | $ | 12,899,330 | $ | 12,415,449 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Goodwill and other intangible assets, net | (369,962 | ) | (372,913 | ) | (375,924 | ) | (378,891 | ) | (381,795 | ) | ||||||||||||
| Tax effect of other intangible assets 1 | 9,905 | 10,456 | 16,254 | 17,115 | 17,997 | |||||||||||||||||
| Tangible assets | [a] | $ | 11,996,376 | $ | 12,205,052 | $ | 12,500,019 | $ | 12,537,554 | $ | 12,051,651 | |||||||||||
| Total stockholders’ equity | $ | 1,161,957 | $ | 1,218,025 | $ | 1,319,112 | $ | 1,333,076 | $ | 1,345,691 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Goodwill and other intangible assets, net | (369,962 | ) | (372,913 | ) | (375,924 | ) | (378,891 | ) | (381,795 | ) | ||||||||||||
| Tax effect of other intangible assets 1 | 9,905 | 10,456 | 16,254 | 17,115 | 17,997 | |||||||||||||||||
| Tangible common equity | [b] | $ | 801,900 | $ | 855,568 | $ | 959,442 | $ | 971,300 | $ | 981,893 | |||||||||||
| Tangible common equity to tangible assets 2 | [b÷a] | 6.68 | % | 7.01 | % | 7.68 | % | 7.75 | % | 8.15 | % | |||||||||||
| 1 Net of estimated deferred tax liability. | ||||||||||||||||||||||
| 2 Tax-effected measure. | ||||||||||||||||||||||
| Core Loans, Core Loans to Portfolio Loans, Core Deposits, Core Deposits to Total Deposits, and Core Loans to Core Deposits | ||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||
| As of | ||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||
| 2022 | 2022 | 2021 | 2021 | 2021 | ||||||||||||||||||
| Portfolio loans | [a] | $ | 7,497,778 | $ | 7,272,873 | $ | 7,188,998 | $ | 7,150,635 | $ | 7,185,650 | |||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| PPP Loans amortized cost | (7,616 | ) | (31,769 | ) | (74,958 | ) | (178,231 | ) | (390,395 | ) | ||||||||||||
| Core loans | [b] | $ | 7,490,162 | $ | 7,241,104 | $ | 7,114,040 | $ | 6,972,404 | $ | 6,795,255 | |||||||||||
| Total deposits | [c] | $ | 10,397,228 | $ | 10,591,836 | $ | 10,768,577 | $ | 10,817,867 | $ | 10,337,117 | |||||||||||
| Non-GAAP adjustments: | ||||||||||||||||||||||
| Brokered transaction accounts | (2,002 | ) | (2,002 | ) | (2,248 | ) | (2,002 | ) | (2,002 | ) | ||||||||||||
| Time deposits of | (117,957 | ) | (139,245 | ) | (137,449 | ) | (156,419 | ) | (129,187 | ) | ||||||||||||
| Core deposits | [d] | $ | 10,277,269 | $ | 10,450,589 | $ | 10,628,880 | $ | 10,659,446 | $ | 10,205,928 | |||||||||||
| RATIOS | ||||||||||||||||||||||
| Core loans to portfolio loans | [b÷a] | 99.90 | % | 99.56 | % | 98.96 | % | 97.51 | % | 94.57 | % | |||||||||||
| Core deposits to total deposits | [d÷c] | 98.85 | % | 98.67 | % | 98.70 | % | 98.54 | % | 98.73 | % | |||||||||||
| Core loans to core deposits | [b÷d] | 72.88 | % | 69.29 | % | 66.93 | % | 65.41 | % | 66.58 | % | |||||||||||
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 effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics (including the Coronavirus Disease 2019 pandemic), or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine); (iii) changes in state and federal laws, regulations, and governmental policies concerning the Company’s general business; (iv) changes in accounting policies and practices; (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 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.
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1 See “Non-GAAP Financial Information” for reconciliation.
2 Revenue from the Company’s subsidiary, FirsTech, Inc. (FirsTech), excluding consolidations and eliminations.
3 Commercial balances include commercial, commercial real estate, and real estate construction loans.
4 The Common Equity Tier 1 Capital ratio is not yet finalized for the first quarter of 2022, and is subject to change.
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