OREANDA-NEWS. July 29, 2016. First Busey Corporation’s (the “Company”) net income and net income available to common stockholders for the second quarter of 2016 was \\$12.4 million, or \\$0.35 per fully diluted common share, which was inclusive of the acquisition and operations of Pulaski Financial Corp. (“Pulaski”), and its banking subsidiary Pulaski Bank, since the transaction closed on April 30, 2016.  The Company reported net income and net income available to common stockholders of \\$10.4 million, or \\$0.36 per fully-diluted common share, for the first quarter of 2016 and net income of \\$9.9 million and net income available to common stockholders of \\$9.8 million, or \\$0.33 per fully-diluted common share for the second quarter of 2015. 

The Company’s year-to-date net income and net income available to common stockholders through June 30, 2016 was \\$22.8 million, or \\$0.71 per fully-diluted common share, compared to net income of \\$17.7 million and net income available to common stockholders of \\$17.3 million, or \\$0.59 per fully-diluted common share, for the comparable period of 2015.  Year-to-date net income available for common stockholders through June 30, 2016 increased 31.6% over the comparable period of 2015.

During the second quarter of 2016, the Company incurred \\$2.0 million of expenses related to the acquisition, comprised primarily of data processing, legal and consulting costs.  During the six months ended June 30, 2016, acquisition related expenses totaled \\$2.3 million.  Additional non-recurring activity during the quarter included \\$0.6 million in losses in private equity investments.  Excluding these acquisition and non-recurring expenses, the Company’s net income available to common stockholders for the second quarter of 2016 would have been \\$14.0 million or \\$0.40 per fully-diluted common share. 

On April 30, 2016, the Company completed its acquisition of Pulaski, a Missouri corporation headquartered in St. Louis, under which each share of Pulaski common stock issued and outstanding was converted into 0.79 shares of the Company’s common stock.  The market value of the 9.4 million shares of the Company’s common stock issued at the effective time of the merger was approximately \\$193.0 million based on the closing stock price of \\$20.44 on April 29, 2016. The purchase price also included cash paid in lieu of fractional shares and the fair value of outstanding Pulaski stock options that were converted into options to purchase common shares of First Busey.

Financial results for the second quarter of 2016 were significantly impacted by the Pulaski acquisition, resetting the baseline for financial performance in future quarters in a multiple of positive ways.  At the date of the merger, the fair value of Pulaski’s total assets was \\$1.6 billion, including \\$1.4 billion in loans and \\$1.2 billion in deposits.    Net income before taxes was positively impacted by \\$1.3 million due to Pulaski purchase accounting amortization for the second quarter of 2016, including amortization expense of intangibles.  Additionally, provision expense of \\$0.6 million was recorded on new and renewed Pulaski loan production for the second quarter of 2016, with further details provided under the Asset Quality discussion below.  A table provided below summarizes the assets acquired and liabilities assumed of Pulaski as of April 30, 2016.

Strong residential loan demand drove an increase in loans held for sale at June 30, 2016 to \\$278.1 million from \\$12.9 million on March 31, 2016 and \\$23.8 million on June 30, 2015, with Pulaski contributing \\$261.3 million of the change.  The increased loans held for sale balance adds positive momentum going into the third quarter by generating net interest income until loans are delivered to investors, at which point gains on sale of loans are recognized.

Capital Strength:  Due to continued strong financial performance, the Company will pay a cash dividend on July 29, 2016 of \\$0.17 per common share to stockholders of record as of July 22, 2016.  The Company has an uninterrupted history of paying dividends to its common stockholders since the bank holding company was organized in 1980.

At the end of the second quarter of 2016, Busey Bank and Pulaski Bank continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines.  Further, the Company’s Tangible Common Equity (“TCE”) increased to \\$473.3 million at June 30, 2016 compared to \\$353.8 million at March 31, 2016 and \\$339.0 million at June 30, 2015.  TCE represented 8.77% of tangible assets at June 30, 2016, compared to 9.16% at March 31, 2016 and 8.79% at June 30, 2015.1  

1Tangible Common Equity, a non-GAAP metric, is defined as common equity less tax-effected goodwill and intangibles at the end of the reporting period.   Tangible assets, a non-GAAP metric, is defined as total assets less tax-effected goodwill and intangibles at the end of the reporting period.

Asset Quality:  While much internal focus has been directed toward growth, the Company’s commitment to credit quality remains strong.  The June 30, 2016 asset metrics reflect the post combination results of acquiring Pulaski.  As of June 30, 2016, the Company reported non-performing loans of \\$22.8 million, of which \\$10.9 million were Pulaski Bank loans, compared to \\$17.8 million as of March 31, 2016 and \\$8.4 million as of June 30, 2015.

The Company recorded net charge-offs of \\$0.9 million for the second quarter of 2016, a decrease from \\$3.3 million for first quarter of 2016 and an increase from net recoveries of \\$0.1 million for the second quarter of 2015.  The Company recorded a provision for loan loss of \\$1.1 million in the second quarter of 2016, compared to a provision of \\$1.0 million in the first quarter of 2016 and zero in the second quarter of 2015.  For the first six months of 2016, the provision for loan loss was \\$2.1 million, compared to \\$0.5 million for the same period of 2015. 

The allowance for loan losses as a percentage of loans decreased to 1.12% at June 30, 2016, compared to 1.75% at March 31, 2016 and 1.90% at June 30, 2015.  The decrease was primarily driven by the Pulaski acquisition and accompanying acquisition accounting which does not allow for the carryover of an allowance for loan losses.  Instead, these loans are carried net of a fair value adjustment for credit and interest rate and are only included in the allowance calculation to the extent that the reserve requirement exceeds their credit fair value adjustment.  However, as the acquired loans renew and as Pulaski Bank originates new loan production, it is necessary to establish an allowance which represents an amount that, in management’s opinion, will be adequate to absorb additional credit losses.  Pulaski Bank recorded \\$0.6 million in provision expense in the second quarter of 2016 related to new and renewed production.

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

Fee-based Businesses:  Revenues from trust fees, commissions and brokers’ fees, and remittance processing activities represented 46.1% of the Company’s non-interest income for the quarter ended June 30, 2016, providing a balance to revenue from traditional banking activities.  As Pulaski had no legacy fee income in these businesses, the addition of these service offerings in their markets should provide attractive growth opportunities.

Trust fees and commissions and brokers’ fees decreased seasonally to \\$5.7 million for the second quarter of 2016 compared to \\$6.2 million for the first quarter of 2016, but were also down from \\$6.0 million for the second quarter of 2015 due in part to market influences.  Trust fees and commission and brokers’ fees decreased to \\$11.9 million for the six months ended June 30, 2016 compared to \\$12.4 million for the six months ended June 30, 2015.  Net income from the wealth management segment was stable at \\$1.3 million for both the second and first quarters of 2016 compared to \\$1.1 million for the second quarter of 2015.  Net income was \\$2.6 million for the six months ended June 30, 2016 compared to \\$2.7 million for the six months ended June 30, 2015. 

Remittance processing revenue decreased slightly to \\$2.8 million for the second quarter of 2016, compared to \\$2.9 million for the first quarter of 2016, and \\$3.0 million for the second quarter of 2015.  Remittance processing revenue increased to \\$5.8 million, up 5.1%, for the six months ended June 30, 2016 compared to \\$5.5 million for the six months ended June 30, 2015.  Net income from the remittance processing segment was \\$0.5 million for the second quarter of 2016, unchanged from the first quarter of 2016 and the second quarter of 2015.  Net income was \\$0.9 million for the six months ended June 30, 2016, which represented an increase of 6.8% from the six months ended June 30, 2015.

Operating Performance:  The Company continues to prioritize a strong balance sheet, diversified revenue streams and developing appropriate platforms to sustain profitable growth.  An active business outreach across the Company’s footprint continues to support ongoing business expansion and will facilitate the full integration of Pulaski’s operations with First Busey’s.  Specific areas of operating performance are detailed as follows:

  • Net interest income of \\$38.0 million in the second quarter of 2016 increased from \\$27.9 million in the first quarter of 2016 and \\$27.4 million in the second quarter of 2015.  Pulaski contributed \\$10.4 million to the second quarter of 2016 inclusive of purchase accounting accretion and amortization of \\$1.7 million.  Net interest income for the first six months of 2016 was \\$65.9 million compared to \\$54.0 million for the same period of 2015.

    The net interest margin increased to 3.32% for the second quarter of 2016, compared to 3.10% for the first quarter of 2016, and 3.05% for the second quarter of 2015.  Average earning assets for the three months ended June 30, 2016 grew \\$987.2 million compared to the three months ended March 31, 2016, and \\$1.01 billion compared to the three months ended June 30, 2015.  The net interest margin for the first six months of 2016 increased to 3.23% compared to 3.04% for the same period of 2015.  Net of purchase accounting accretion and amortization, the net interest margin for the second quarter of 2016 was 3.18% and 3.15% for the first six months of 2016. 

  • The Company has historically held a leading residential loan market position in its primary markets in Central Illinois, while Pulaski has been ranked among the top residential mortgage loan producers in the St. Louis and Kansas City markets.  These positions, combined with strong loan demand fueled by the improved housing market and continued low interest rates, resulted in gain on sales of loans totaling \\$3.2 million for the second quarter of 2016.  By comparison, total gain on sales of loans were \\$0.4 million for the first quarter of 2016 and \\$1.9 million in the second quarter of 2015, with the increases predominantly resulting from the additional mortgage activity contributed by Pulaski.

    In the first six months of 2016, gain on sales of loans increased to \\$3.6 million from \\$3.3 million in the comparable period of 2015.  Beginning on January 1, 2016, the Company adopted a conforming approach to the accounting for loan fees and costs for mortgage loans held for sale, which reclassifies related compensation expense from salary and wages to gain on sales of loans.  On a comparative basis to prior year, this reduced gains by \\$0.9 million for the first six months of 2016 with a related reduction in non-interest expense, primarily in salaries and wages and employee benefits.

  • Salaries and wages and employee benefits increased to \\$18.5 million in the second quarter of 2016 compared to \\$15.4 million in the first quarter of 2016, and \\$15.8 million in the second quarter of 2015.  In the first six months of 2016, salaries and wages and employee benefits increased to \\$33.9 million compared to \\$32.7 million for the same period of 2015.  The June 30, 2016 total includes \\$3.6 million of expenses related to the Pulaski acquisition, which were offset by accounting changes noted above and other efficiencies in the legacy First Busey franchise.  By the end of the second quarter of 2016, full-time equivalent employees (“FTE”) had increased to 1,326, which included 533 FTE from Pulaski, from 788 at March 31, 2016 and from 804 at June 30, 2015. 
     
  • Data processing expense in the second quarter of 2016 increased to \\$5.0 million, compared to \\$3.2 million in the first quarter of 2016 and second quarter of 2015.  Data processing expense totaled \\$8.2 million for the first six months of 2016, compared to \\$6.8 million for the same period of 2015. The increase was primarily due to additional Pulaski operating data processing expense and non-recurring software conversion expenses related to the acquisition. 
     
  • Other operating expenses in the second quarter of 2016 increased to \\$6.5 million, compared to \\$4.5 million in the first quarter of 2016 and \\$4.6 million in the second quarter of 2015.  In the first six months of 2016, other operating expenses increased to \\$11.0 million compared to \\$9.9 million for the same period of 2015, due to Pulaski acquisition related expenses of \\$1.1 million, primarily consisting of legal and consulting costs.

Overview and Strategy:

We are pleased to have completed the acquisition of Pulaski during the second quarter of 2016 as this transaction was strategically compelling and financially attractive.  This acquisition creates a Midwest community bank with greater scale and operating efficiency, along with geographic and balance sheet diversification.  Pulaski has an experienced and deep management team to assist in post-merger integration and market expansion, and a similar culture to the Company which has facilitated a successful, ongoing integration process.  It is anticipated that Pulaski Bank will be merged with and into Busey Bank in the fourth quarter of 2016, as approved by the bank’s primary regulator.

We expect an immediate and significant accretion to core earnings as a result of this transaction.  During the second quarter of 2016, the addition of Pulaski rapidly accelerated growth in nearly every financial measure.  At the same time, our financial performance was strong in the first six months of 2016, as we grew our balance sheet and multiple revenue streams through organic means.  The significant mortgage business under Pulaski produced origination activity in the second quarter at the highest levels in over five years, while new system implementation and recently undertaken pricing improvements will continue to elevate performance in this area of the Company. 

In 2015, we effected meaningful change in our capital, through the redemption of preferred stock and the execution of the reverse stock split.  These events will continue to provide benefits to our common stockholders in 2016, while supporting the continued strength of our Company.  As we better align our services to meet customer needs and deliver optimal value to our Pillars, the Company continues to evaluate its branch network and exercise active expense discipline.

Our priorities continue around balance sheet strength, profitability and growth, in that order.  Our balance sheet is grounded in a strong capital position, an attractive core funding base and a sound credit foundation, while our commitment to our Pillars – customers, associates, communities and stockholders – lights the path to profitable growth.  We feel confident that we are well positioned for the future and gratefully acknowledge the loyal support of our stockholders.

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

Assets acquired and liabilities of Pulaski assumed as of April 30, 2016 and their initial fair value estimates1(dollars in thousands):

  

As Recorded by
Pulaski

 Initial Fair
Value
Adjustments1		  

As Recorded by
First Busey

Assets acquired     
Cash and due from banks\\$25,580  \\$-  \\$25,580
Securities 47,895   105   48,000
Loans held for sale 184,856   -   184,856
Loans 2 1,243,913   (14,452)  1,229,461
Premises and equipment 17,236   95   17,331
OREO 5,000   (2,512)  2,488
Goodwill 3,939   (3,939)  -
Other intangible assets -   15,468   15,468
Other assets 70,387   (414)  69,973
Total assets acquired 1,598,806   (5,649)  1,593,157
      
Liabilities assumed     
Deposits 1,226,906   1,102   1,228,008
Other borrowings 205,840   906   206,746
Trust preferred securities 19,589   (3,805)  15,784
Other liabilities 24,594   (753)  23,841
Total liabilities assumed 1,476,929   (2,550)  1,474,379
      
Net assets acquired\\$  121,877  \\$  (3,099) \\$  118,778
      
Consideration paid:     
Cash    \\$    5
Common stock     192,990
Fair value of stock options assumed     2,454
Total consideration paid     195,449
      
Goodwill    \\$     76,671
   
1 Fair values are subject to refinement for up to one year after the closing date as additional information regarding the closing date fair values becomes available
2 Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired loan portfolio, write-off of net deferred loan costs and elimination of the allowance for loan losses recorded by Pulaski. \\$16.9 million is expected to be accreted over an estimated 4 year remaining life of the respective loans in a manner that approximates the level yield method.
   
SELECTED  FINANCIAL HIGHLIGHTS1
(dollars in thousands, except per share data)
       
 As of and for theAs of and for the
 Three Months EndedSix Months Ended
 June 30,March 31,December 31,June 30,June 30,June 30,
  2016  2016  2015  2015  2016  2015 
EARNINGS & PER SHARE DATA      
Net income\\$  12,383  \\$10,434 \\$10,683 \\$9,936 \\$  22,817 \\$17,697 
Income available to common stockholders2 12,383  10,434  10,528  9,755  22,817  17,334 
Revenue3   56,377   43,721  45,513  43,996  100,098  86,630 
Fully-diluted earnings per share 0.35   0.36  0.36  0.33  0.71  0.59 
Cash dividends paid per share 0.17   0.17  0.17  0.15  0.34  0.30 
       
Net income by operating segment      
Banking\\$  12,422  \\$9,703 \\$10,508 \\$9,140 \\$  22,125 \\$15,785 
Remittance Processing  451   457  380  492  908  850 
Wealth Management 1,296   1,322  1,131  1,101  2,618  2,696 
       
AVERAGE BALANCES      
Cash and due from banks\\$  388,087 \\$300,670 \\$245,721 \\$378,422 \\$  344,378 \\$385,337 
Investment securities 850,791  860,349  926,658  889,035  855,569  875,560 
Gross loans 3,511,115  2,589,830  2,602,736  2,494,200  3,050,473  2,490,405 
Earning assets 4,678,632  3,691,429  3,703,078  3,670,857  4,185,030  3,659,163 
Total assets 5,021,325  3,906,839  3,930,571  3,919,381  4,464,082  3,910,340 
       
Non-interest bearing deposits 942,553  768,271  730,715  725,261  855,412  714,443 
Interest-bearing deposits 3,069,158  2,434,837  2,440,128  2,449,140  2,751,998  2,445,392 
Total deposits 4,011,711  3,203,108  3,170,843  3,174,401  3,607,410  3,159,835 
Securities sold under agreements to repurchase 178,826  163,328  184,782  172,930  171,077  179,759 
Interest-bearing liabilities 3,527,059  2,733,551  2,738,116  2,727,070  3,130,305  2,730,333 
Total liabilities 4,508,452  3,530,128  3,497,742  3,479,516  4,019,291  3,472,380 
Stockholders' equity-common 512,873  376,711  371,223  367,201  444,791  365,296 
Tangible stockholders' equity-common4 419,954  344,049  337,779  332,138  382,001  330,124 
       
PERFORMANCE RATIOS      
Return on average assets5 0.99% 1.07% 1.08% 1.00% 1.03% 0.89%
Return on average common equity5 9.71% 11.14% 11.25% 10.66% 10.32% 9.57%
Return on average tangible common equity5 11.86% 12.20% 12.36% 11.78% 12.01% 10.59%
Net interest margin5, 6 3.32% 3.10% 3.23% 3.05% 3.23% 3.04%
Efficiency ratio7 61.72% 60.83% 59.81% 62.07% 61.33% 65.47%
Non-interest revenue as a % of total revenues3 32.68% 36.09% 34.97% 37.83% 34.17% 37.64%
       
1  Results are unaudited      
2  Net income available to common stockholders, net of preferred dividend
3  Revenues consist of interest income plus non-interest income, net of interest expense and security gains and losses
4  Tangible stockholders’ equity-common, a non-GAAP metric, is defined as average common equity less average goodwill and intangibles
5  Annualized and calculated on net income available to common stockholders
6  On a tax-equivalent basis, assuming a federal income tax rate of 35%
7  Net of security gains and losses and intangible charges
  
Condensed Consolidated Balance Sheets1As of
(in thousands, except per share data)June 30,March 31,December 31,June 30,
  2016  2016  2015  2015 
Assets    
Cash and due from banks\\$  264,841   \\$320,960 \\$319,280 \\$  289,385 
Federal funds sold 2,231  -  -  - 
Investment securities 852,380  827,852  884,670  924,207 
     
Commercial loans 2,685,933  1,920,953  1,961,573  1,847,521 
Held for sale loans 278,125  12,943  9,351  23,816 
Retail real estate and retail other loans 1,095,033  651,616  666,166  643,239 
Gross loans\\$  4,059,091 \\$2,585,512 \\$2,637,090 \\$2,514,576 
     
Allowance for loan losses (45,358) (45,171) (47,487) (47,720)
Premises and equipment 81,009  62,911  63,088  64,834 
Goodwill and other intangibles 123,206  32,177  32,942  34,558 
Other assets 172,799  106,389  109,393  105,434 
Total assets\\$  5,510,199 \\$3,890,630 \\$3,998,976 \\$3,885,274 
     
Liabilities & Stockholders' Equity    
Non-interest bearing deposits\\$  1,045,180 \\$759,752 \\$881,685 \\$705,231 
Interest checking, savings, and money market deposits 2,450,316  1,980,642  1,949,370  1,930,185 
Time deposits 889,013  441,334  458,051  500,324 
Total deposits\\$  4,384,509 \\$3,181,728 \\$3,289,106 \\$3,135,740 
     
Securities sold under agreements to repurchase 173,726  166,141  172,972  174,352 
Short-term borrowings
 166,200  -  -  - 
Long-term debt
 80,000  80,000  80,000  50,000 
Junior subordinated debt owed to unconsolidated trusts 70,801  55,000  55,000  55,000 
Other liabilities 46,846  24,497  28,712  27,594 
Total liabilities\\$  4,922,082 \\$3,507,366 \\$3,625,790 \\$3,442,686 
Total stockholders' equity\\$  588,117 \\$383,264 \\$373,186 \\$442,588 
Total liabilities & stockholders' equity\\$  5,510,199 \\$3,890,630 \\$3,998,976 \\$3,885,274 
     
Share Data    
Book value per common share\\$  15.41 \\$13.35 \\$13.01 \\$12.77 
Tangible book value per common share2\\$12.18 \\$12.23 \\$11.86 \\$11.58 
Ending number of common shares outstanding 38,162  28,704  28,695  28,968 
   
Asset Quality1As of and for the Three Months Ended
(dollars in thousands)June 30,March 31,December 31,June 30,
  2016  2016  2015  2015 
     
Gross loans\\$  4,059,091 \\$2,585,512 \\$2,637,090 \\$2,514,576 
Non-performing loans    
Non-accrual loans 22,443  17,368  12,748  8,377 
Loans 90+ days past due 334  452  15  64 
Non-performing loans, segregated by geography    
Illinois/ Indiana 10,860  16,932  11,732  7,105 
Missouri 10,944  -  -  - 
Florida 973  888  1,031  1,336 
Loans 30-89 days past due 9,754  2,436  3,282  4,112 
Other non-performing assets 3,267  463  783  310 
Non-performing assets to total loans and non-performing assets 0.64% 0.71% 0.51% 0.35%
Allowance as a percentage of non-performing loans 199.14% 253.48% 372.07% 565.34%
Allowance for loan losses to loans 1.12% 1.75% 1.80% 1.90%
Net charge-offs (recoveries) 913  3,316  725  (68)
Provision expense 1,100  1,000  1,000  - 
     
1 Results are unaudited except for amounts reported as of December 31, 2015
2 Total common equity less goodwill and intangibles divided by shares outstanding as of period end
     
Condensed Consolidated Statements of Operations    
(Unaudited, in thousands, except per share data)  
 For the  For the
 Three Months Ended June 30, Six Months Ended June 30,
 2016
  2015  2016
  2015 
        
Interest and fees on loans\\$  36,187  \\$  24,586  \\$  61,331  \\$48,752 
Interest on investment securities 4,351   4,324     8,731   8,421 
Total interest income\\$  40,538  \\$  28,910  \\$  70,062  \\$57,173 
        
Interest on deposits 1,792   1,210     2,899   2,449 
Interest on short-term borrowings   275   37    370   88 
Interest on long-term debt   57   11     100   21 
Junior subordinated debt owed to unconsolidated trusts   462   301   799   594 
Total interest expense\\$  2,586  \\$   1,559  \\$  4,168  \\$3,152 
        
Net interest income\\$  37,952  \\$  27,351  \\$  65,894  \\$54,021 
Provision for loan losses 1,100    -     2,100   500 
Net interest income after provision for loan losses\\$  36,852  \\$  27,351  \\$  63,794  \\$53,521 
        
Trust fees 5,045   5,146    10,592   10,843 
Commissions and brokers' fees   687   819     1,355   1,603 
Fees for customer services 5,873  4,781     10,579   9,249 
Remittance processing 2,830   2,988     5,755   5,475 
Gain on sales of loans 3,205   1,868     3,604   3,294 
Net security (losses) gains   152  (22)   1,219   (21)
Other   785   1,043     2,319   2,145 
Total non-interest income\\$  18,577  \\$  16,623  \\$  35,423  \\$32,588 
        
Salaries and wages   14,507   13,310    26,906   27,816 
Employee benefits 3,986   2,520     6,953   4,863 
Net occupancy expense 2,732   2,161     4,899   4,406 
Furniture and equipment expense 1,644   1,283     2,728   2,474 
Data processing expense 5,015   3,212     8,247   6,761 
Amortization expense   1,109   808     1,875   1,577 
Regulatory expense   884   560     1,472   1,203 
Other operating expenses 6,471   4,591     10,956   9,892 
Total non-interest expense\\$  36,348  \\$  28,445  \\$  64,036  \\$58,992 
        
Income before income taxes\\$  19,081  \\$  15,529  \\$  35,181  \\$27,117 
Income taxes 6,698   5,593     12,364   9,420 
Net income\\$  12,383  \\$  9,936  \\$  22,817  \\$17,697 
Preferred stock dividends\\$  -   \\$181  \\$  -    \\$363 
Income available for common stockholders\\$  12,383  \\$9,755  \\$  22,817  \\$17,334 
        
Per Share Data 
      
Basic earnings per common share\\$  0.35  \\$  0.34  \\$  0.72  \\$0.60 
Fully-diluted earnings per common share\\$  0.35  \\$  0.33  \\$  0.71  \\$0.59 
Diluted average common shares outstanding   35,292  29,188    32,102  29,176 
              

Corporate Profile

As of June 30, 2016, First Busey Corporation (Nasdaq: BUSE) was a \\$5.5 billion financial holding company headquartered in Champaign, Illinois. Busey Bank, a wholly-owned bank subsidiary, is headquartered in Champaign, Illinois and has twenty-eight banking centers serving Illinois, a banking center in Indianapolis, Indiana, and six banking centers serving southwest Florida.  Trevett Capital Partners, a wealth management division of Busey Bank, provides asset management, investment and fiduciary services to high net worth clients in southwest Florida.  The wealth management professionals of Trevett Capital Partners can be reached through trevettcapitalpartners.com.  Busey Bank had total assets of \\$3.9 billion as of June 30, 2016. 

Pulaski Bank, National Association, First Busey Corporation’s other wholly-owned bank subsidiary, offers a full line of quality retail and commercial banking products through thirteen full-service banking centers in the St. Louis metropolitan area.  The Bank also offers mortgage loan products through loan production offices in the St. Louis, Kansas City, Chicago and Omaha-Council Bluffs metropolitan areas and other locations across the Midwest.  Pulaski Bank had total assets of \\$1.6 billion as of June 30, 2016.

In addition, First Busey Corporation owns a retail payment processing subsidiary, FirsTech, Inc., through Busey Bank, which processes over 27 million transactions per year using online bill payment, lockbox processing and walk-in payments at its 3,000 agent locations in 36 states.  More information about FirsTech, Inc. can be found at firstechpayments.com.

Busey Wealth Management is a wholly-owned subsidiary of First Busey Corporation.  Through Busey Trust Company, Busey Wealth Management provides asset management, investment and fiduciary services to individuals, businesses and foundations.  As of June 30, 2016, Busey Wealth Management’s assets under care were approximately \\$5.0 billion.

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

Special Note Concerning Forward-Looking Statements
Statements made in this report, other than those concerning historical financial information, may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of First Busey.  Forward-looking statements, which may be based upon beliefs, expectations and assumptions of First Busey’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions.  Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and we undertake no obligation to update any statement in light of new information or future events.  A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements.  These factors include, among others, the following: (i) the strength of the local, national, and international economy; (ii) the economic impact of any future terrorist threats or attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning First Busey’s general business (including the impact of the Dodd-Frank Act and the extensive regulations to be promulgated thereunder, as well as the Basel III Rules); (iv) changes in interest rates and prepayment rates of First Busey’s assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the loss of key executives or employees; (viii) changes in consumer spending; (ix) unexpected results of acquisitions (including the acquisition of Pulaski), which may include failure to realize the anticipated benefits of the acquisition and the possibility that the transaction costs may be greater than anticipated; (x) unexpected outcomes of existing or new litigation involving First Busey;  (xi) changes in accounting policies and practices; and (xii) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, and blizzards.  These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  Additional information concerning First Busey and its business, including additional factors that could materially affect its financial results, is included in First Busey’s filings with the Securities and Exchange Commission.