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Busey First Busey Announces 2021 Second Quarter Earnings Jul 27 , 2021 CHAMPAIGN , III . , July 27 , 2021 ( GLOBE NEWSWIRE ) -- First Busey Corporation ( Nasdaq : BUSE ) Message from our Chairman & CEO Second Quarter 2021 Highlights : • Second quarter 2021 net income of $ 29.8 million and diluted EPS of $ 0.53 , compared to $ 25.8 million and $ 0.47 , respectively , in the second quarter of 2020 • Second quarter 2021 adjusted net income 1 of $ 31.9 million and adjusted diluted EPS 1 of $ 0.57 , compared to $ 26.2 million and $ 0.48 , respectively in the second quarter of 2020 • Finalized our acquisition of Cummins - American Corp. ( " CAC " ) , the holding company for Glenview State Bank ( " GSB " ) • Core organic loan growth ( excluding GSB loans acquired and PPP loans ) of $ 142.0 million , or 2.3 % , in the second quarter • Wealth management assets under care of $ 12.30 billion at June 30 , 2021 , up from $ 10.69 billion at March 31 , 2021 , and $ 9.02 billion at June 30 , 2020 . • Non - interest income ( excluding security gains ) accounted for 33.2 % of total revenue • Tangible book value per common share 1 of $ 17.11 at June 30 , 2021 , compared to $ 16.65 at March 31 , 2021 , and $ 15.92 at June 30 , 2020 , an increase of 7.5 % year - over - year • For additional information , please refer to the 2Q21 Quarterly Earnings Supplement Second Quarter Financial Results Net income for First Busey Corporation ( " First Busey " or the " Company " ) for the second quarter of 2021 was $ 29.8 million , or $ 0.53 per diluted common share , as compared to $ 37.8 million , or $ 0.69 per diluted common share , for the first quarter of 2021 and $ 25.8 million , or $ 0.47 per diluted common share , for the second quarter of 2020. Adjusted net income 1 for the second quarter of 2021 was $ 31.9 million , or $ 0.57 per diluted common share , as compared to $ 38.1 million , or $ 0.69 per diluted common share , for the first quarter of 2021 and $ 26.2 million , or $ 0.48 per diluted common share , for the second quarter of 2020. For the second quarter of 2021 , annualized return on average assets and annualized return on average tangible common equity were 1.05 % and 12.26 % , respectively . Based on adjusted net income1 , annualized return on average assets was 1.12 % and annualized return on average tangible common equity 1 was 13.14 % for the second quarter of 2021. Second quarter results include GSB's performance for one month of post - acquisition activity . Pre - provision net revenue 1 for the second quarter of 2021 was $ 34.0 million , compared to $ 40.2 million for the first quarter of 2021 and $ 45.4 million for the second quarter of 2020. Adjusted pre - provision net revenue 1 for the second quarter of 2021 was $ 37.5 million , as compared to $ 42.8 million for the first quarter of 2021 and $ 46.4 million for the second quarter of 2020. Pre - provision net revenue to average assets 1 for the second quarter of 2021 was 1.20 % , as compared to 1.54 % for the first quarter of 2021 and 1.76 % for the second quarter of 2020. Adjusted pre - provision net revenue to average assets for the second quarter of 2021 was 1.32 % , as compared to 1.64 % for the first quarter of 2021 and 1.80 % for the second quarter of 2020 . Our fee - based businesses continue to add dynamic revenue diversification and growing contributions . In the second quarter of 2021 , wealth management fees were $ 13.0 million , an increase of 27.6 % from the second quarter of 2020 , while remittance processing revenue was $ 4.3 million , an increase of 17.0 % from the same period last year . Fees for customer services were $ 8.6 million in the second quarter of 2021 , a 22.6 % increase from $ 7.0 million in the second quarter of 2020. Mortgage revenue was $ 1.7 million in the second quarter of 2021 , compared to $ 2.7 million in the second quarter of 2020. Total non - interest income , excluding net security gains , accounted for 33.2 % of our total revenue in the second quarter of 2021 , compared to 28.1 % in second quarter of 2020 . The continued challenge of low interest rates , coupled with high levels of excess liquidity , resulted in further pressure on our net interest margin during the second quarter . The Company reported net interest income of $ 64.5 million in the second quarter of 2021 , down from $ 64.9 million in the first quarter of 2021 , and $ 70.8 million in the second quarter of 2020. A $ 0.5 million decrease in net fee recognition on Paycheck Protection Program ( " PPP " ) loans contributed to the quarter - over - quarter decline in reported net interest income . Our reported net interest margin was 2.50 % in the second quarter of 2021 , as compared to 2.72 % in the first quarter of 2021. The impact of the GSB acquisition reflected in our results for one month of the quarter accounted for five basis points of the decline in net interest margin . Second 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 , Busey Bank recorded a $ 5.5 million negative provision for credit losses and a $ 0.6 million negative provision for unfunded commitments amid improved US economic outlooks . As a result of the acquisition , GSB recorded a Day 1 allowance of $ 4.2 million for loans purchased with credit deterioration ( " PCD " ) , provision for credit losses of $ 3.8 million , and a provision for unfunded commitments of $ 0.2 million . The total allowance for credit losses was $ 95.4 million at June 30 , 2021 , representing 1.33 % of total portfolio loans outstanding and 1.40 % of portfolio loans excluding PPP loans . The Company views certain non - operating items , including acquisition - related and other restructuring charges , as adjustments to net income reported under U.S. generally accepted accounting principles ( " GAAP " ) . Non - operating pretax adjustments for the second quarter of 2021 included $ 2.7 million of expenses related to acquisitions . The Company believes that non - GAAP measures ( including adjusted pre - provision net revenue , adjusted net income , adjusted diluted earnings per share , adjusted return on average assets , adjusted net interest margin , efficiency ratio , adjusted efficiency ratio , tangible common equity , tangible common equity to tangible assets , tangible book value per share , and return on average tangible common equity ) facilitate the assessment of its financial results and peer comparability . A reconciliation of these non - GAAP measures is included in tabular form at the end of this release .