First Busey Corp. (BUSE, Financial) filed Quarterly Report for the period ended 2009-09-30.
First Busey Corporation is a financial holding company located in Urbana, Illinois. First Busey is engaged primarily in commercial, retail and correspondent banking and provides trust services, insurance services, and travel services. First Busey Corp. has a market cap of $202.9 million; its shares were traded at around $3.77 with and P/S ratio of 0.7. The dividend yield of First Busey Corp. stocks is 4.2%. First Busey Corp. had an annual average earning growth of 10.5% over the past 10 years. GuruFocus rated First Busey Corp. the business predictability rank of 3.5-star.
The goodwill impairment charge of $208.2 million, which is the full amount of goodwill attributable to our banking operations, is a reflection of the reduction in the market capitalization of the Company. The goodwill impairment charge does not affect tangible capital, regulatory capital, cash flows or liquidity. The net loss excluding the goodwill impairment charge was $75.5 million and $90.5 million for the quarter and year-to-date periods ended September 30, 2009, respectively.
We recorded $140.0 million in provision for loan losses in the third quarter of 2009 as compared to $8.0 million in the same period of 2008. The $140.0 million provision for loan losses was $15.0 million higher than initially anticipated once the quarter ending allowance estimate was finalized. Our year-to-date provision for loan losses was $197.5 million, as compared to $22.5 million in 2008. Following the increased provision for loan losses, our allowance for loan losses to loans ratio was 4.0% at September 30, 2009, as compared to 2.8% at June 30, 2009 and 1.5% at September 30, 2008. The allowance as a percentage of nonperforming loans has remained stable at 69.6% at September 30, 2009, as compared to 69.7% and 68.4% at June 30, 2009 and September 30, 2008, respectively. Additional discussion of our loan portfolio is located under Asset Quality.
In August 2009, we merged our Florida based bank, Busey Bank, N.A., into Busey Bank, an Illinois state chartered bank. We merged the two banks to provide a more consistent infrastructure that not only benefits Busey operations, but makes it easier for our customers to conduct their business. Our aggregate southwest Florida loan portfolio totals $549.7 million, or 18.3% of our loan portfolio, down from 21.1% at June 30, 2009 and 22.7% at December 31, 2008. The remainder of our loan portfolio is primarily in the downstate Illinois market with the exception of our branch in the Indianapolis, Indiana market with loans of $182.6 million at September 30, 2009.
Quarterly net interest margin increased again to 3.03% in the third quarter of 2009 from 2.92% in the second quarter of 2009, representing our second straight quarterly net interest margin increase. Additionally, our expense reduction efforts associated with the continued integration following the merger had a positive impact during 2009. Excluding goodwill impairment, non-interest expense increased $2.2 million to $29.6 million in the third quarter of 2009 as compared to $27.9 million in the third quarter of 2008, this increase was due primarily to increased FDIC insurance, increased commissions from mortgage loans, employee severance and other real estate expenses.
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First Busey Corporation is a financial holding company located in Urbana, Illinois. First Busey is engaged primarily in commercial, retail and correspondent banking and provides trust services, insurance services, and travel services. First Busey Corp. has a market cap of $202.9 million; its shares were traded at around $3.77 with and P/S ratio of 0.7. The dividend yield of First Busey Corp. stocks is 4.2%. First Busey Corp. had an annual average earning growth of 10.5% over the past 10 years. GuruFocus rated First Busey Corp. the business predictability rank of 3.5-star.
Highlight of Business Operations:
Net interest income increased to $28.5 million in the third quarter of 2009 as compared to $28.4 million in the second quarter of 2009 and $27.6 million in the first quarter of 2009, our second straight quarterly increase. The increase in net interest income occurred despite reversing over $0.8 million in interest income due to placing loans on nonaccrual status.The goodwill impairment charge of $208.2 million, which is the full amount of goodwill attributable to our banking operations, is a reflection of the reduction in the market capitalization of the Company. The goodwill impairment charge does not affect tangible capital, regulatory capital, cash flows or liquidity. The net loss excluding the goodwill impairment charge was $75.5 million and $90.5 million for the quarter and year-to-date periods ended September 30, 2009, respectively.
We recorded $140.0 million in provision for loan losses in the third quarter of 2009 as compared to $8.0 million in the same period of 2008. The $140.0 million provision for loan losses was $15.0 million higher than initially anticipated once the quarter ending allowance estimate was finalized. Our year-to-date provision for loan losses was $197.5 million, as compared to $22.5 million in 2008. Following the increased provision for loan losses, our allowance for loan losses to loans ratio was 4.0% at September 30, 2009, as compared to 2.8% at June 30, 2009 and 1.5% at September 30, 2008. The allowance as a percentage of nonperforming loans has remained stable at 69.6% at September 30, 2009, as compared to 69.7% and 68.4% at June 30, 2009 and September 30, 2008, respectively. Additional discussion of our loan portfolio is located under Asset Quality.
In August 2009, we merged our Florida based bank, Busey Bank, N.A., into Busey Bank, an Illinois state chartered bank. We merged the two banks to provide a more consistent infrastructure that not only benefits Busey operations, but makes it easier for our customers to conduct their business. Our aggregate southwest Florida loan portfolio totals $549.7 million, or 18.3% of our loan portfolio, down from 21.1% at June 30, 2009 and 22.7% at December 31, 2008. The remainder of our loan portfolio is primarily in the downstate Illinois market with the exception of our branch in the Indianapolis, Indiana market with loans of $182.6 million at September 30, 2009.
Quarterly net interest margin increased again to 3.03% in the third quarter of 2009 from 2.92% in the second quarter of 2009, representing our second straight quarterly net interest margin increase. Additionally, our expense reduction efforts associated with the continued integration following the merger had a positive impact during 2009. Excluding goodwill impairment, non-interest expense increased $2.2 million to $29.6 million in the third quarter of 2009 as compared to $27.9 million in the third quarter of 2008, this increase was due primarily to increased FDIC insurance, increased commissions from mortgage loans, employee severance and other real estate expenses.
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