First Busey Earnings 2020-03-31

Balance Sheet	Income Statement	Cash Flow

Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q


☑	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended 3/31/2020


☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File No. 0-15950

FIRST BUSEY CORPORATION

(Exact name of registrant as specified in its charter)


Nevada		37-1078406
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

100 W. University Ave. Champaign, Illinois		61820
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code: (217) 365-4544

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer ☐
Non-accelerated filer	☐	Smaller reporting company ☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol (s)	Name of each exchange on which registered
Common Stock, $.001 par value	BUSE	The Nasdaq Stock Market LLC

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.


Class		Outstanding at May 7, 2020
Common Stock, $.001 par value		54,401,208

Table of Contents

FIRST BUSEY CORPORATION

FORM 10-Q

March 31, 2020

Table of Contents


Part I	FINANCIAL INFORMATION

Item 1.	FINANCIAL STATEMENTS (UNAUDITED)	3
	CONSOLIDATED BALANCE SHEETS	4
	CONSOLIDATED STATEMENTS OF INCOME	5
	CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	6
	CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY	7
	CONSOLIDATED STATEMENTS OF CASH FLOWS	8
	NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS	10
Item 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	39
Item 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	58
Item 4.	CONTROLS AND PROCEDURES	59

Part II	OTHER INFORMATION

Item 1.	LEGAL PROCEEDINGS	59
Item 1A.	RISK FACTORS	60
Item 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	61
Item 3.	DEFAULTS UPON SENIOR SECURITIES	62
Item 4.	MINE SAFETY DISCLOSURES	62
Item 5.	OTHER INFORMATION	62
Item 6.	EXHIBITS	62
	SIGNATURES	63

Table of Contents

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Table of Contents

FIRST BUSEY CORPORATION and Subsidiaries

CONSOLIDATED BALANCE SHEETS

(Unaudited)


	March 31, 2020		December 31, 2019
	(dollars in thousands)
Assets
Cash and due from banks	$	133,695	$	136,546
Interest-bearing deposits		209,153		392,742
Total cash and cash equivalents		342,848		529,288

Debt securities available for sale		1,765,945		1,648,257
Equity securities		4,936		5,952
Loans held for sale, at fair value		89,943		68,699
Portfolio loans (net of allowance 2020 $84,384; 2019 $53,748)		6,661,115		6,633,501
Premises and equipment, net		149,772		151,267
Right of use asset		9,074		9,490
Goodwill		311,536		311,536
Other intangible assets, net		59,036		61,593
Cash surrender value of bank owned life insurance		174,495		173,595
Other assets		152,705		102,551
Total assets	$	9,721,405	$	9,695,729
Liabilities and Stockholders’ Equity
Liabilities
Deposits:
Noninterest-bearing	$	1,910,673	$	1,832,619
Interest-bearing		6,062,560		6,069,777
Total deposits		7,973,233		7,902,396

Securities sold under agreements to repurchase		167,250		205,491
Short-term borrowings		21,358		8,551
Long-term debt		35,595		83,600
Senior notes, net of unamortized issuance costs		39,708		39,674
Subordinated notes, net of unamortized issuance costs		59,273		59,248
Junior subordinated debt owed to unconsolidated trusts		71,347		71,308
Lease liability		9,150		9,552
Other liabilities		126,906		95,475
Total liabilities		8,503,820		8,475,295

Outstanding commitments and contingent liabilities (see Notes 10 and 15)

Stockholders’ Equity
Common stock, $.001 par value, authorized 66,666,667 shares; 55,910,733 shares issued		56		56
Additional paid-in capital		1,249,301		1,248,216
Accumulated deficit		(27,599)		(14,813)
Accumulated other comprehensive income (loss)		33,101		14,960
Total stockholders’ equity before treasury stock		1,254,859		1,248,419

Treasury stock at cost, 1,509,525 and 1,121,961 shares, respectively		(37,274)		(27,985)
Total stockholders’ equity		1,217,585		1,220,434
Total liabilities and stockholders’ equity	$	9,721,405	$	9,695,729

Common shares outstanding at period end		54,401,208		54,788,772

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

FIRST BUSEY CORPORATION and Subsidiaries

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


		Three Months Ended March 31,
		2020		2019
		(dollars in thousands)
Interest income:
Interest and fees on loans	$	72,536	$	71,789
Interest and dividends on investment securities:
Taxable interest income		9,508		10,184
Non-taxable interest income		1,151		1,076
Other interest income		1,238		1,232
Total interest income		84,433		84,281
Interest expense:
Deposits		12,227		12,500
Federal funds purchased and securities sold under agreements to repurchase		408		583
Short-term borrowings		67		191
Long-term debt		423		579
Senior notes		400		400
Subordinated notes		731		731
Junior subordinated debt owed to unconsolidated trusts		744		914
Total interest expense		15,000		15,898
Net interest income		69,433		68,383
Provision for credit losses		17,216		2,111
Net interest income after provision for credit losses		52,217		66,272
Non-interest income:
Wealth management fees		11,555		9,029
Fees for customer services		8,361		8,097
Remittance processing		3,753		3,780
Mortgage revenue		1,381		1,945
Income on bank owned life insurance		1,057		978
Net gains (losses) on sales of securities		1,574		(174)
Unrealized (losses) gains recognized on equity securities		(987)		216
Other income		823		2,074
Total non-interest income		27,517		25,945
Non-interest expense:
Salaries, wages and employee benefits		34,003		32,341
Data processing		4,395		4,401
Net occupancy expense of premises		4,715		4,202
Furniture and equipment expenses		2,449		2,095
Professional fees		1,824		3,187
Amortization of intangible assets		2,557		2,094
Other expense		10,571		8,843
Total non-interest expense		60,514		57,163
Income before income taxes		19,220		35,054
Income taxes		3,856		9,585
Net income	$	15,364	$	25,469

Basic earnings per common share	$	0.28	$	0.48
Diluted earnings per common share	$	0.28	$	0.48
Dividends declared per share of common stock	$	0.22	$	0.21

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

FIRST BUSEY CORPORATION and Subsidiaries

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended March 31,
	2020		2019
	(dollars in thousands)
Net income	$	15,364	$	25,469
Other comprehensive income:
Unrealized gains (losses) on debt securities available for sale:
Net unrealized holding gains (losses) on debt securities available for sale, net of taxes of $(8,589) and $(1,940), respectively		21,497		4,859
Net unrealized losses on debt securities transferred from held to maturity to available for sale, net of taxes of $- and $(1,364), respectively		—		3,416
Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income, net of taxes of $448 and $(52), respectively		(1,108)		132
Net change in unrealized gains (losses) on debt securities available for sale		20,389		8,407

Unrealized gains (losses) on cash flow hedges:
Net unrealized holding (losses) gains on cash flow hedges, net of taxes of $892 and $-, respectively		(2,237)		—
Reclassification adjustment for realized losses (gains) on cash flow hedges included in net income, net of taxes of $4 and $-, respectively		(11)		—
Net change in unrealized gains (losses) on derivative instruments		(2,248)		—
Net change in accumulated other comprehensive income (loss)		18,141		8,407
Total comprehensive income	$	33,505	$	33,876

See accompanying notes to unaudited consolidated financial statements.

Table of Contents

FIRST BUSEY CORPORATION and Subsidiaries

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(dollars in thousands, except per share amounts)


								Accumulated
				Additional				Other
		Common		Paid-in		Accumulated		Comprehensive		Treasury
	Shares	Stock		Capital		(Deficit)		Income (loss)		Stock		Total
For the Three Months Ended March 31, 2020
Balance, December 31, 2019	54,788,772	$	56	$	1,248,216	$	(14,813)	$	14,960	$	(27,985)	$	1,220,434
Cumulative effect of change in accounting principle	—		—		—		(15,922)		—		—		(15,922)
Net income	—		—		—		15,364		—		—		15,364
Other comprehensive income	—		—		—		—		18,141		—		18,141
Repurchase of stock	(407,850)		—		—		—		—		(9,672)		(9,672)
Issuance of treasury stock for employee stock purchase plan	14,236		—		(38)		—		—		269		231
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax	5,509		—		(179)		—		—		104		(75)
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax	541		—		(10)		—		—		10		—
Cash dividends common stock at $0.22 per share	—		—		—		(12,055)		—		—		(12,055)
Stock dividend equivalents restricted stock units at $0.22 per share	—		—		173		(173)		—		—		—
Stock-based compensation	—		—		1,139		—		—		—		1,139
Balance, March 31, 2020	54,401,208	$	56	$	1,249,301	$	(27,599)	$	33,101	$	(37,274)	$	1,217,585

For the Three Months Ended March 31, 2019
Balance, December 31, 2018	48,874,836	$	49	$	1,080,084	$	(72,167)	$	(6,812)	$	(6,190)	$	994,964
Net income	—		—		—		25,469		—		—		25,469
Other comprehensive income	—		—		—		—		8,407		—		8,407
Stock issued in acquisition of Banc Ed, net of stock issuance costs	6,725,152		7		166,274		—		—		—		166,281
Issuance of treasury stock for employee stock purchase plan	11,731		—		50		—		—		222		272
Net issuance of treasury stock for restricted/deferred stock unit vesting and related tax	9,070		—		(171)		—		—		171		—
Net issuance of treasury stock for stock options exercised, net of shares redeemed and related tax	3,838		—		(72)		—		—		72		—
Cash dividends common stock at $0.21 per share	—		—		—		(10,266)		—		—		(10,266)
Stock dividend equivalents restricted stock units at $0.21 per share	—		—		161		(161)

Price	25.82	EPS	2
Shares	56	P/E	14
MCap	1,437	P/FCF	27
Net Debt	-525	EBIT	199
TEV	911	TEV/EBIT	5
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-03-31	Filed 2020-05-07
10-K	2019-12-31	Filed 2020-02-27
10-Q	2019-09-30	Filed 2019-11-07
10-Q	2019-06-30	Filed 2019-08-07
10-Q	2019-03-31	Filed 2019-05-08
10-K	2018-12-31	Filed 2019-02-27
10-Q	2018-09-30	Filed 2018-11-07
10-Q	2018-06-30	Filed 2018-08-07
10-Q	2018-03-31	Filed 2018-05-08
10-K	2017-12-31	Filed 2018-02-28
10-Q	2017-09-30	Filed 2017-11-08
10-Q	2017-06-30	Filed 2017-08-08
10-Q	2017-03-31	Filed 2017-05-09
10-K	2016-12-31	Filed 2017-02-28
10-Q	2016-09-30	Filed 2016-11-08
10-Q	2016-06-30	Filed 2016-08-09
10-Q	2016-03-31	Filed 2016-05-09
10-K	2015-12-31	Filed 2016-03-08
10-Q	2015-09-30	Filed 2015-11-06
10-Q	2015-06-30	Filed 2015-08-06
10-Q	2015-03-31	Filed 2015-05-08
10-K	2014-12-31	Filed 2015-03-10
10-Q	2014-09-30	Filed 2014-11-06
10-Q	2014-06-30	Filed 2014-08-07
10-Q	2014-03-31	Filed 2014-05-08
10-K	2013-12-31	Filed 2014-03-11
10-Q	2013-09-30	Filed 2013-11-07
10-Q	2013-06-30	Filed 2013-08-06
10-Q	2013-03-31	Filed 2013-05-09
10-K	2012-12-31	Filed 2013-03-14
10-Q	2012-09-30	Filed 2012-11-08
10-Q	2012-06-30	Filed 2012-08-07
10-Q	2012-03-31	Filed 2012-05-08
10-K	2011-12-31	Filed 2012-03-09
10-Q	2011-09-30	Filed 2011-11-04
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-05-06
10-K	2010-12-31	Filed 2011-03-11
10-Q	2010-09-30	Filed 2010-11-05
10-Q	2010-06-30	Filed 2010-08-06
10-Q	2010-03-31	Filed 2010-05-13
10-K	2009-12-31	Filed 2010-03-16

8-K	2020-05-28
8-K	2020-05-26
8-K	2020-05-20
8-K	2020-05-20
8-K	2020-05-04
8-K	2020-04-28
8-K	2020-04-14
8-K	2020-03-31
8-K	2020-03-25
8-K	2020-02-05
8-K	2020-01-28
8-K	2020-01-14
8-K	2019-12-05
8-K	2019-11-25
8-K	2019-10-22
8-K	2019-10-08
8-K	2019-09-25
8-K	2019-09-03
8-K	2019-07-26
8-K	2019-07-23
8-K	2019-07-09
8-K	2019-05-22
8-K	2019-05-13
8-K	2019-04-22
8-K	2019-04-09
8-K	2019-03-14
8-K	2019-01-30
8-K	2019-01-29
8-K	2019-01-29
8-K	2019-01-15
8-K	2019-01-10
8-K	2019-01-04
8-K	2018-10-23
8-K	2018-10-09
8-K	2018-08-21
8-K	2018-07-24
8-K	2018-07-10
8-K	2018-05-23
8-K	2018-04-30
8-K	2018-04-24
8-K	2018-04-10
8-K	2018-03-28
8-K	2018-01-30
8-K	2018-01-16

EX-31.1	buse-20200331xex31d1.htm
EX-31.2	buse-20200331xex31d2.htm
EX-32.1	buse-20200331xex32d1.htm
EX-32.2	buse-20200331xex32d2.htm

BUSE 10Q Quarterly Report

First Busey Earnings 2020-03-31