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First Busey Announces 2015 Second Quarter Earnings

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CHAMPAIGN, Ill., July 21, 2015 (GLOBE NEWSWIRE) -- (Nasdaq: BUSE)

Message from our President & CEO

Significant progress made from the quarter ended June 30, 2014:

• Net income available to common stockholders of $9.8 million, up 21.9%• Return on average assets of 1.0%, up from 0.9%
• Total net interest income of $27.4 million, up 9.3%• Total average gross loans of $2.494 billion, up 10.9%
• Total non-interest income of $16.6 million, up 10.7%• Non-interest bearing deposits of $705.2 million, up 16.5%

First Busey Corporation's net income for the second quarter of 2015 was $9.9 million and net income available to common stockholders was $9.8 million, or $0.11 per fully diluted common share.  The Company reported net income of $7.8 million and net income available to common stockholders of $7.6 million, or $0.09 per fully-diluted common share, for the first quarter of 2015 and net income of $8.2 million and net income available to common stockholders of $8.0 million, or $0.09 per fully-diluted common share for the second quarter of 2014.

The Company's year-to-date net income through June 30, 2015 was $17.7 million and net income available to common stockholders was $17.3 million, or $0.20 per fully-diluted common share, compared to net income of $16.1 million and net income available to common stockholders of $15.7 million, or $0.18 per fully-diluted common share, for the comparable period of 2014.  On January 8, 2015, First Busey Corporation completed its acquisition of Herget Financial Corp. ("Herget"), headquartered in Pekin, Illinois.  The Company's year-to-date net income was impacted by $1.0 million of one-time expenses, which occurred primarily in the first quarter of 2015, related to its acquisition of Herget.  In addition, during the first quarter of 2015, the Company undertook initiatives to refine its branch network and restructure various internal teams to improve efficiency going forward, which will result in three branch closings on July 30, 2015.  These initiatives resulted in $0.7 million of fixed asset impairments and $0.3 million in other corporate restructuring costs, all of which were one-time, non-recurring items in the first quarter of 2015. 

Gross loans at June 30, 2015 increased $29.7 million from March 31, 2015, including an increase in loans held for sale of $5.1 million during the period.  Gross loans increased to $2.515 billion at June 30, 2015 from $2.485 billion at March 31, 2015 and $2.324 billion at June 30, 2014, impacted by the addition of loans obtained as part of the Herget acquisition as well as organic growth.  The linked quarter increase in gross loans was led by organic commercial growth as commercial loans grew $32.3 million in the second quarter of 2015 compared to March 31, 2015, even while experiencing significant pay downs with some of our larger credits during that period.  Commercial loans grew $109.8 million at June 30, 2015 compared to June 30, 2014. 

Overall deposit levels declined seasonally during the second quarter of 2015, totaling $3.136 billion at June 30, 2015 compared to $3.184 billion at March 31, 2015, but increased from $2.862 billion at June 30, 2014.  The seasonal drop in deposit levels of $48.1 million between the first and second quarter of 2015 was less than the $65.6 million decline in deposit levels between first and second quarter 2014.  Overall deposit levels grew $274.2 million in the second quarter 2015 compared to the same period of 2014, primarily due to deposits acquired from the Herget acquisition and organic growth.  Average deposit balances for the three months ended June 30, 2015 grew $29.3 million compared to the three months ended March 31, 2015 and $287.1 million compared to the three months ended June 30, 2014.   

Non-interest bearing deposits of $705.2 million at June 30, 2015 decreased from $718.7 million at March 31, 2015, but increased from $605.3 million at June 30, 2014.  Non-interest bearing deposits as of June 30, 2015 represented 22.5% of total deposits.  The Company remained strongly core deposit funded at 76.5% of total assets as of June 30, 2015, with solid liquidity and significant market share in the communities it serves.

Capital Strength:  At the end of the second quarter of 2015, Busey Bank continued to exceed the capital adequacy requirements necessary to be considered "well-capitalized" under applicable regulatory guidelines.  Further, First Busey Corporation's Tangible Common Equity ("TCE") increased to $339.0 million at June 30, 2015 compared to $335.7 million at March 31, 2015 and $328.7 million at June 30, 2014.  TCE represented 8.79% of tangible assets at June 30, 2015, compared to 8.60% at March 31, 2015 and 9.44% at June 30, 2014.1  

The Company's strong capital levels have supported a steady return to its stockholders through dividends.  The Company will pay a cash dividend on July 31, 2015 of $0.05 per common share to stockholders of record as of July 24, 2015. First Busey Corporation has an uninterrupted history of paying dividends to its common stockholders since the bank holding company was organized in 1980.

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 continues to be evident by strong performance across a range of credit indicators.  The June 30, 2015 asset metrics reflect the post combination results of acquiring Herget.  As of June 30, 2015, the Company reported non-performing loans of $8.4 million compared to $10.4 million as of March 31, 2015 and $11.5 million as of June 30, 2014. 

The Company recorded net recoveries of $0.1 million for the second quarter of 2015 compared to net charge-offs of $0.3 million for first quarter of 2015 and net charge-offs of $1.0 million for the second quarter of 2014.  Net charge-offs for the first six months of 2015 were $0.2 million compared to $2.1 million for the same period of 2014.  Due to favorable net charge-off activity, the Company did not record a provision for loan loss in the second quarter of 2015, compared to a provision of $0.5 million in the first quarter of 2015 and $1.0 million in the second quarter of 2014.  For the first six months of 2015, the provision for loan loss was $0.5 million, compared to $2.0 million for the same period of 2014, as the Company's dedication to improving asset quality and building balance sheet strength continues to yield positive results. 

The allowance for loan losses as a percentage of loans decreased to 1.90% at June 30, 2015 compared to 1.92% at March 31, 2015 and 2.04% at June 30, 2014.  During the current year, the Company held acquired loans with uncollected principal balances from the Herget acquisition.  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.

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 which are primarily generated through Busey Wealth Management and FirsTech - represented 53.9% of the Company's non-interest income for the quarter ended June 30, 2015, providing a balance to revenue from traditional banking activities.  Furthermore, the Company believes the boutique services offered to ultra-high net worth clients by Trevett Capital Partners within its suite of wealth services broadens the Company's business base and enhances its ability to further develop revenue sources.  In addition, our professional farm management and brokerage services are entrusted to care and maximize value for landowners of prime farmland in Illinois.

Trust fees and commissions and brokers' fees decreased to $6.0 million for the second quarter of 2015 compared to $6.5 million for the first quarter of 2015 due to seasonal farm management fees, but increased from $5.8 million for the second quarter of 2014.  Trust fees and commission and brokers' fees increased to $12.4 million for the six months ended June 30, 2015 compared to $12.0 million for the six months ended June 30, 2014. 

FirsTech's remittance processing revenue increased to $3.0 million for the second quarter of 2015, compared to $2.5 million for the first quarter of 2015, and $2.4 million for the second quarter of 2014.  Remittance processing revenue increased to $5.5 million for the six months ended June 30, 2015 compared to $4.7 million, up 15.8%, for the six months ended June 30, 2014.

Operating Performance:  The Company continues to prioritize strengthening its balance sheet, diversifying 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.  Specific areas of operating performance are detailed as follows:

  • Net interest income before provision for loan losses of $27.4 million in the second quarter of 2015 increased from $26.7 million in the first quarter of 2015 and $25.0 million in the second quarter of 2014.  Net interest income for the first six months of 2015 was $54.0 million compared to $49.6 million for the same period of 2014.  The second quarter of 2015 was positively impacted by an additional day compared to the first quarter of 2015 and by redeployment of cash into higher-yielding investment securities and loans.
     
  • The net interest margin increased to 3.05% for the second quarter of 2015, compared to 3.03% for the first quarter of 2015, but decreased from 3.13% for the second quarter of 2014.  Average earning assets for the three months ended June 30, 2015 grew $23.5 million compared to the three months ended March 31, 2015 and $400.5 million compared to the three months ended June 30, 2014.  The net interest margin for the first six months of 2015 decreased to 3.04% compared to 3.13% for the same period of 2014, influenced by growth in average cash and due from bank balances of $385.3 million for the six months ended June 30, 2015 compared to $261.2 million for the six months ended June 30, 2014.  By the end of the second quarter of 2015, the cash and due from bank balance declined to $289.4 million, primarily as a result of positive changes in asset mix and fluctuations in funding.
     
  • Gain on sales of loans increased to $1.9 million for the second quarter of 2015, based on strong mortgage loan production which generated $1.7 million of gain, with an additional $0.2 million generated from sales of commercial loans.  By comparison, total gain on sales of loans were $1.4 million for the first quarter of 2015 and $1.2 million in the second quarter of 2014, predominantly based on mortgage activity.  In the first six months of 2015, gain on sales of loans increased to $3.3 million from $2.2 million in the comparable period of 2014.  Mortgage production in the second quarter of 2015 reached the highest level since the third quarter of 2013, primarily driven by strong loan activity related to the purchase of new homes.
     
  • Salaries and wages and employee benefits decreased to $15.8 million in the second quarter of 2015 compared to $16.8 million in the first quarter of 2015, but increased from $15.0 million in the second quarter of 2014.  In the first six months of 2015, salaries and wages and employee benefits increased to $32.7 million compared to $30.1 million for the same period of 2014, due to higher commissions related to mortgage production, first quarter restructuring expenses, and an initial increase in the number of employees in connection with the Herget acquisition.  By the end of the second quarter, full-time equivalent employees had decreased to 804 from 828 at March 31, 2015 and from 813 at June 30, 2014. 
     
  • Data processing expense in the second quarter of 2015 decreased to $3.2 million compared to $3.5 million in the first quarter of 2015, but increased from $2.7 million in the second quarter of 2014.  Data processing expense totaled $6.8 million for the first six months of 2015, compared to $5.5 million for the same period of 2014. The increase was primarily due to non-recurring software conversion expenses related to the acquisition of Herget, as discussed above.  As the Company manages data processing expense, it continues to enhance its mobile and internet banking services and prioritize strategies to mitigate the risk from cybercriminals through the use of new technology, industry best practices and customer education.  A portion of the increase in data processing expense was also related to supporting new sources of revenue growth at FirsTech.
     
  • Other operating expenses in the second quarter of 2015 decreased to $4.6 million compared to $5.3 million in the first quarter of 2015 and $4.7 million in the second quarter of 2014.  In the first six months of 2015, other operating expenses increased to $9.9 million compared to $8.6 million for the same period of 2014, due to restructuring initiatives discussed above which includes $0.7 million in fixed asset impairments and Herget acquisition-related expenses of $0.2 million.

Overview and Strategy:

Our financial performance was strong in the first six months of 2015, as we grew our balance sheet and multiple revenue streams through organic means, supplemented by the Herget acquisition.  Various actions were undertaken to help shape our franchise for the future, trimming certain areas where sensible and adding in others with a continuing commitment to deliver optimal value to our Pillars.

Busey customers are increasingly seeking innovative mobile options to flexibly manage their finances.  Digital channels are currently accessed by nearly 75% of customers with over 30% using mobile devices and over 20% enrolled in mobile deposit programs.  Following an extensive analysis of both customer needs and stockholder value, we announced our plans to close three full service branches effective on July 30, 2015.  As we are able to successfully service many emerging customer preferences through enhanced digital and telephone support, we have also modified hours where appropriate in our remaining thirty-six branch network to better match patterns of customer usage.

Later this year, the Company plans to launch Busey's Bank by Appointment.  The new online tool will allow customers to schedule a branch appointment with a banker when it's convenient for them.  Customers simply find a time that works for their schedule, provide a few basic details about the reason for their visit, and meet with a banker at the location of their choice.  The process of understanding and optimizing best avenues for service distribution is an ongoing exercise across our Company.  Our streamlined retail network will continue as a dynamic funding source with a relationship-driven focus to help our clients and communities flourish.

The Company remains committed to our communities and culture of integrity.  We received a 5-Star Superior rating by one of the nation's leading bank rating and research firms – BauerFinancial.  The 5-Star rating is the highest designation by the agency and was awarded based on our financial condition, as reported on March 31, 2015.  Our superior rating denotes the highest level of strength and performance as measured by BauerFinancial.  In addition, in June Busey was honored to be named "2015 Best of Gulfshore" by Gulfshore Life magazine for best in banking in Southwest Florida. 

We are pleased by the successful integration of Herget into the Busey family of companies during the first quarter of 2015 and are excited about the prospects for the future.  We believe the merger with Herget will allow us to further increase our presence in the Peoria MSA.  By acquiring organizations with a similar philosophy in markets which complement our existing customer base, we intend to expand our franchise through balanced, integrated growth strategies that generate value for our stockholders.

As we move forward in 2015, we feel confident that we are well positioned to explore potential external growth opportunities to enhance and complement our mission to achieve positive organic growth.  We take pride in our past and look confidently towards our future, gratefully acknowledging the efforts of our associates, the business of our customers, and the continued support of Busey by you, our stockholders.

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


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,
  2015  2015  2014  2014  2015  2014 
EARNINGS & PER SHARE DATA      
Net income$  9,936  $  7,761 $  7,593 $  8,185 $  17,697  $  16,072 
Income available to common stockholders2 9,755    7,579    7,411    8,004    17,334     15,709 
Revenue3   43,996     42,634    40,090    40,036    86,630     79,536 
Fully-diluted earnings per share 0.11     0.09    0.08    0.09  0.20     0.18 
Cash dividends paid per share 0.05     0.05    0.05    0.05   0.10   0.09 
       
Net income by operating segment      
  Busey Bank$   8,815  $  7,278 $  7,854 $  7,436 $  16,093 $  14,715 
  Busey Wealth Management  1,425    963   1,102   1,401   2,388     2,403 
  FirsTech 492     358    270    326    850    635 
       
AVERAGE BALANCES      
Cash and due from banks$ 378,422 $  392,330 $  283,411 $  239,372 $  385,337 $  261,244 
Investment securities 889,035    861,934    789,620  870,818  875,560  846,648 
Gross loans 2,494,200   2,486,569  2,372,617    2,249,786  2,490,405   2,242,590 
Earning assets 3,670,857   3,647,340   3,365,335    3,270,335  3,659,163   3,257,628 
Total assets 3,919,381   3,901,198  3,597,157    3,523,428  3,910,340  3,515,613 
Non-interest bearing deposits 725,261    703,505    622,152  592,066  714,443  580,171 
Interest-bearing deposits 2,449,140   2,441,604  2,249,295    2,295,196  2,445,392   2,301,631 
Securities sold under agreements to repurchase 172,930    186,663    181,176  134,237  179,759  132,948 
Interest-bearing liabilities 2,727,070   2,733,634  2,517,428    2,484,433  2,730,333   2,489,579 
Stockholders' equity-common 367,201    363,369    358,885  349,410  365,296  347,262 
Tangible stockholders' equity-common4 332,138    328,087    331,130  320,186  330,124  317,658 
       
PERFORMANCE RATIOS      
Return on average assets5 1.00% 0.79% 0.82% 0.91% 0.89 % 0.90%
Return on average common equity5 10.66% 8.46% 8.19% 9.19% 9.57 % 9.12%
Return on average tangible common equity5 11.78% 9.37% 8.88% 10.03% 10.59 % 9.97%
Net interest margin5, 6 3.05% 3.03% 3.13% 3.13% 3.04% 3.13%
Efficiency ratio7 62.07% 68.98% 68.43% 64.35% 65.47% 64.50%
Non-interest revenue as a % of total revenues3 37.83% 37.44% 34.93% 37.50% 37.64% 37.67%
       
1  Results are unaudited      
Net income available to common stockholders, net of preferred dividend
Revenues consist of interest income plus non-interest income, net of interest expense and security gains and losses
Tangible stockholders' equity-common, a non-GAAP metric, is defined as average common equity less average goodwill and intangibles
Annualized and calculated on net income available to common stockholders
On a tax-equivalent basis, assuming a federal income tax rate of 35%
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,
   2015  2015  2014  2014 
 Assets    
 Cash and due from banks$  289,385   $  428,936 $  339,438 $  182,032 
 Investment securities 924,207  866,651  761,438  841,962 
      
 Commercial loans 1,847,521  1,815,183  1,812.965  1,737,751 
 Held for sale loans 23,816  18,685  10,400  20,286 
 Retail real estate and retail other loans 643,239  650,983  592,325  566,031 
 Gross loans$  2,514,576 $  2,484,851 $  2,415,690 $  2,324,068 
      
 Allowance for loan losses (47,720) (47,652) (47,453) (47,428)
 Premises and equipment 64,834  64,996  63,974  64,562 
 Goodwill and other intangibles 34,558  35,366  27,373  28,778 
 Other assets 105,434  104,036  105,147  113,475 
 Total assets$  3,885,274 $  3,937,184 $  3,665,607 $  3,507,449 
      
 Liabilities & Stockholders' Equity    
 Non-interest bearing deposits$  705,231 $  718,738 $  666,607 $  605,346 
 Interest checking, savings, and money market deposits 1,930,185  1,939,164  1,738,170  1,718,057 
 Time deposits 500,324  525,983  496,071  538,125 
 Total deposits$  3,135,740 $  3,183,885 $  2,900,848 $  2,861,528 
      
 Securities sold under agreements to repurchase 174,352  183,675  198,893  140,563 
 Long-term debt 50,000  50,000  50,000  -   
 Junior subordinated debt owed to unconsolidated trusts 55,000  55,000  55,000  55,000 
 Other liabilities 27,594  24,824  27,227  23,591 
 Total liabilities$  3,442,686 $  3,497,384 $  3,231,968 $  3,080,682 
 Total stockholders' equity$  442,588 $  439,800 $  433,639 $  426,767 
 Total liabilities & stockholders' equity$  3,885,274 $  3,937,184 $  3,665,607 $  3,507,449 
      
 Share Data    
 Book value per common share$   4.26   $  4.22 $  4.16 $  4.08 
 Tangible book value per common share2$  3.86   $  3.82 $  3.84 $  3.75 
 Ending number of common shares outstanding 86,905  86,896  86,861  86,831 
    
 Asset Quality1As of and for the Three Months Ended
 (dollars in thousands)June 30,March 31,December 31,  June 30,
   2015  2015  2014  2014 
      
 Gross loans$  2,514,576 $  2,484,851 $  2,415,690 $  2,324,068 
 Non-performing loans    
   Non-accrual loans 8,377  10,202  9,000  11,232 
   Loans 90+ days past due 64  189  10  235 
 Non-performing loans, segregated by geography    
   Illinois/ Indiana 7,105  7,688  5,309  8,273 
   Florida 1,336  2,703  3,701  3,194 
 Loans 30-89 days past due 4,112  3,716  1,819  1,766 
 Other non-performing assets 310  315  216  1,622 
 Non-performing assets to total loans and non-performing assets 0.35% 0.43% 0.38% 0.56%
 Allowance as a percentage of non-performing loans 565.34% 458.59% 526.67% 413.60%
 Allowance for loan losses to loans 1.90% 1.92% 1.96% 2.04%
 Net (recoveries) charge-offs (68) 301  (439) 998 
 Provision expense -  500  -  1,000 
      
 1 Results are unaudited except for amounts reported as of December 31, 2014
 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,
  2015  2014   2015  2014 
      
Interest and fees on loans$  24,586  $   22,437  $  48,752  $  44,970 
Interest on investment securities 4,324   4,219     8,421     7,937 
Total interest income$  28,910  $   26,656  $  57,173  $  52,907 
      
Interest on deposits 1,210   1,306     2,449     2,668 
Interest on short-term borrowings   37     35    88    74 
Interest on long-term debt   11     -     21     - 
Junior subordinated debt owed to unconsolidated trusts   301     294   594     587 
Total interest expense$  1,559  $    1,635  $  3,152  $  3,329 
      
Net interest income$  27,351  $   25,021  $  54,021  $  49,578 
Provision for loan losses -    1,000     500     2,000 
Net interest income after provision for loan losses$  27,351  $   24,021  $  53,521  $  47,578 
      
Trust fees 5,146   5,080    10,843     10,697 
Commissions and brokers' fees   819     676     1,603     1,347 
Fees for customer services 4,781  4,729     9,249     8,912 
Remittance processing 2,988   2,376     5,475     4,726 
Gain on sales of loans 1,868   1,234     3,294     2,215 
Net security (losses) gains   (22) (3)   (21 )   40 
Other   1,043   920     2,145     2,061 
Total non-interest income$  16,623  $   15,012  $  32,588  $  29,998 
      
Salaries and wages   13,310     12,578    27,816   24,827 
Employee benefits 2,520   2,386     4,863     5,279 
Net occupancy expense 2,161   2,055     4,406     4,298 
Furniture and equipment expense 1,283   1,153     2,474     2,357 
Data processing expense 3,212   2,687     6,761     5,499 
Amortization expense   808     733     1,577     1,480 
Regulatory expense   560     501     1,203     1,056 
Other operating expenses 4,591   4,730     9,892     8,645 
Total non-interest expense$  28,445  $   26,823  $  58,992  $  53,441 
      
Income before income taxes$  15,529  $   12,210  $  27,117  $  24,135 
Income taxes 5,593   4,025     9,420     8,063 
Net income$  9,936  $   8,185  $  17,697  $  16,072 
Preferred stock dividends$  181  $   181  $  363  $   363 
Income available for common stockholders$  9,755  $  8,004  $  17,334  $  15,709 
      
Per Share Data     
Basic earnings per common share$  0.11  $   0.09  $  0.20  $  0.18 
Fully-diluted earnings per common share$  0.11  $   0.09  $  0.20  $  0.18 
Diluted average common shares outstanding   87,563    87,263    87,528   87,245 

Corporate Profile

As of June 30, 2015, First Busey Corporation (Nasdaq: BUSE) was a $3.9 billion financial holding company headquartered in Champaign, Illinois. Busey Bank, First Busey Corporation's wholly-owned bank subsidiary, is also headquartered in Champaign, Illinois and has thirty-one banking centers serving Illinois, a banking center in Indianapolis, Indiana, and seven 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 $3.8 billion as of June 30, 2015. 

In addition, First Busey Corporation owns a retail payment processing subsidiary, FirsTech, Inc., through Busey Bank, which processes over 23 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, 2015, Busey Wealth Management's assets under care were approximately $5.3 billion.

Busey Bank and Busey Wealth Management deliver financial services through busey.com.

Special Note Concerning Forward-Looking Statements

This document may contain 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 ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements.  These factors include, among others, the following: (i) the strength of the local and national economy; (ii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business (including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the extensive regulations to be promulgated thereunder, as well as the rules adopted by the federal bank regulatory agencies to implement Basel III); (iii) changes in interest rates and prepayment rates of the Company's assets; (iv) increased competition in the financial services sector and the inability to attract new customers; (v) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vi) the loss of key executives or employees; (vii) changes in consumer spending; (viii) unexpected results of acquisitions, including the acquisition of Herget; (ix) unexpected outcomes of existing or new litigation involving the Company; (x) the economic impact of any future terrorist threats or attacks; (xi) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, and blizzards; and (xii) changes in accounting policies and practices.  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 the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission.

Contact: Robin N. Elliott, CFO 217-365-4120
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