First Busey Corp (BUSE) 10-Q Quarterly Report Thu Nov 04 2021

●Core organic loan growth, excluding Paycheck Protection Program (“PPP”) loans, of $177.1 million, or 2.6%, in the third quarter. At September 30, 2021, and consistent with the second quarter, our loan pipeline is more than double what it was at the beginning of the year.

●Wealth management assets under care of $12.36 billion at September 30, 2021, up from $12.30 billion at June 30, 2021, and $9.50 billion at September 30, 2020, which represents 30.1% year-over-year growth

●Wealth management segment revenue growth of 5.7% in the third quarter, and 20.4% year-over-year growth on a YTD basis

●FirsTech, our remittance processing segment, revenue growth of 4.5% in the third quarter, and 19.3% year-over-year growth on a YTD basis

●Noninterest income, excluding security gains, accounted for 31.9% of total revenue in the third quarter of 2021 supported by continued growth in wealth management, customer service fees, and remittance processing

●Tangible book value per common share¹ of $17.09 at September 30, 2021, compared to $17.11 at June 30, 2021, and $16.32 at September 30, 2020, an increase of 4.7% year-over-year

●Successfully merged Glenview State Bank into Busey Bank on August 14, 2021

●For additional information, please refer to the 3Q21 Quarterly Earnings Supplement

Third Quarter Financial Results

Net income for First Busey Corporation (“First Busey” or the “Company”) for the third quarter of 2021 was $25.9 million, or $0.46 per diluted common share, as compared to $29.8 million, or $0.53 per diluted common share, for the second quarter of 2021 and $30.8 million, or $0.56 per diluted common share, for the third quarter of 2020. Adjusted net income¹ for the third quarter of 2021 was $32.8 million, or $0.58 per diluted common share, as compared to $31.9 million, or $0.57 per diluted common share, for the second quarter of 2021 and $32.8 million, or $0.60 per diluted common share, for the third quarter of 2020. For the third quarter of 2021, annualized return on average assets and annualized return on average tangible common equity¹ were 0.81% and 10.60%, respectively. Based on adjusted net income¹, annualized return on average assets was 1.03% and annualized return on average tangible common equity¹ was 13.43% for the third quarter of 2021.

Pre-provision net revenue¹ for the third quarter of 2021 was $30.5 million, compared to $34.0 million for the second quarter of 2021 and $45.9 million for the third quarter of 2020. Adjusted pre-provision net revenue¹ for the third quarter of 2021 was $39.4 million, as compared to $37.5 million for the second quarter of 2021 and $48.7 million for the third quarter of 2020. Pre-provision net revenue to average assets¹ for the third quarter of 2021 was 0.95%, as compared to 1.20% for the second quarter of 2021 and 1.71% for the third quarter of 2020. Adjusted pre-provision net revenue to average assets¹ for the third quarter of 2021 was 1.23%, as compared to 1.32% for the second quarter of 2021 and 1.81% for the third quarter of 2020.

The Company experienced its second consecutive quarter of solid core organic loan growth, principally in commercial lending segments. The Company reported net interest income of $70.8 million in the third quarter of 2021, up from $64.5 million in the second quarter of 2021, and $69.8 million in the third quarter of 2020. While our net interest income increased, our reported net interest margin declined to 2.41% from 2.50% in the second quarter and 2.86% in the third quarter of 2020. The decline is attributable to the persistent dual pressures of loan interest rates and continued growth in excess liquidity, as well as the impact of the consolidation of our most recent acquisition into our financial results for a full quarter.

Third quarter 2021 results reflect a provision release, as compared to a reserve build at the onset of the coronavirus disease 2019 (“COVID-19”) pandemic. Specifically, the Company recorded a $1.9 million negative provision for credit losses and a $1.0 million negative provision for unfunded commitments amid continued improvements in the economic environment. The total allowance for credit losses

¹ See “Non-GAAP Financial Information” for reconciliation.

The following information was filed by First Busey Corp (BUSE) on Tuesday, October 26, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside First Busey Corp's 10-Q Quarterly Report:

Financial - Expense Highlight
Provision for credit loss expense decreased due to a reserve release of $1.9 million for the three months ended September 30, 2021, compared to a $5.5 million provision expense for the same period in 2020.

Financial - Expense Highlight
Provision for credit loss expense decreased due to a reserve release of $10.4 million for the nine months ended September 30, 2021, compared to a $35.7 million provision expense for the same period in 2020.
Revenue - Product Highlight
A reconciliation to what management believes to be the most directly comparable GAAP financial measures-specifically net revenue 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 noninterest income and total noninterest 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.
Revenue - Product Highlight
A reconciliation of non-GAAP measures-including adjusted pre-provision net revenue, adjusted net income, adjusted earnings per share, adjusted return on average assets, adjusted net interest margin, adjusted efficiency 46 ratio, tangible common equity, tangible common equity to tangible assets, tangible book value per share, and return on average tangible common equity-which the Company believes facilitates the assessment of its financial results and peer comparability, is included in tabular form in this Quarterly Report.
Financial - Expense Highlight
Provision expense for unfunded commitments decreased due to a reserve release of $1.0 million and $1.1 million for the three and nine months ended September 30, 2021, respectively, compared to an expense of $0.3 million and $1.8 million for the three and nine months ended September 30, 2020.
Revenue - Product
These measures include adjusted pre-provision...Read more
Financial - Expense
Those impacts were partially offset...Read more
Financial - Earnings
The Company remains vigilant, given...Read more
Financial - Expense
The Company considers the following...Read more
Financial - Expense
When a loan is classified...Read more
Financial - Expense
To determine the appropriate accounting,...Read more
Financial - Expense
If the Company does not...Read more
Financial - Earnings
Annualized net interest margins for...Read more
Financial - Debt
66 Debt securities available for...Read more
Revenue - Product
Mortgage revenue was $1.7 million...Read more
Other - Other
Further, changes in accounting standards...Read more
Revenue - Product
The Company is currently making...Read more
M & A - Other
Non-operating acquisition and other restructuring...Read more
Financial - Debt
A debt security available for...Read more
Other - Other
As a result of continued...Read more
Financial - Earnings
A tax-equivalent analysis is performed...Read more
Other - Other
Fees for customer services have...Read more
Financial - Expense
Noninterest Expense Changes in noninterest...Read more
Other - Other
Tax effected numbers included in...Read more
Other - Other
The adjusted efficiency ratios were...Read more
Revenue - Product
On a combined basis, revenue...Read more
M & A - Other
The ACL for PCD loans...Read more
Revenue - Product
Fluctuations in remittance processing revenue...Read more
Other - Other
First Busey's Wealth Management division...Read more
Financial - Expense
Salaries, wages, and employee benefit...Read more
Financial - Income
Income on bank owned life...Read more
Financial - Income
Income Taxes The effective income...Read more
Financial - Income
Impairment related to noncredit factors...Read more
Financial - Earnings
After factoring in the tax...Read more
Financial - Earnings
Net interest spread, which represents...Read more
Revenue - Product
Remittance processing revenue was $4.4...Read more
Other - Other
However, additional losses may be...Read more
Other - Other
The measurement of expected credit...Read more
Other - Other
Tax favorable assets generally have...Read more
M & A - Other
The increase in assets under...Read more
Financial - Expense
If either of those selling...Read more
Other - Other
We anticipate we will have...Read more
Financial - Debt
The following policies could be...Read more
M & A - Other
Regulatory actions taken during 2021...Read more
Other - Other
The ACL is recorded in...Read more
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They should not be considered...Read more
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Those organizations, coupled with large...Read more
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The increase primarily related to...Read more
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53 (1) For a reconciliation...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

First Busey Corp provided additional information to their SEC Filing as exhibits

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Exhibit 32.2: Section 1350 Certification

Ticker: BUSE
CIK: 314489
Form Type: 10-Q Quarterly Report
Accession Number: 0001558370-21-014576
Submitted to the SEC: Thu Nov 04 2021 4:04:09 PM EST
Accepted by the SEC: Thu Nov 04 2021
Period: Thursday, September 30, 2021
Industry: State Commercial Banks