First Busey Corp.'s third-quarter net income rose sharply from a year ago, the company announced Tuesday.
CHAMPAIGN — First Busey Corp.'s third-quarter net income rose sharply from a year ago, the company announced Tuesday.
Net income for the third quarter of 2013 totaled $7.9 million, up from $4.9 million for the same quarter in 2012.
For shareholders, that translated to diluted earnings of 8 cents a share, up from 5 cents a share a year earlier.
For the first nine months of 2013, net income for the parent company of Busey Bank totaled $21.8 million. That compares with $17.4 million for the same period in 2012.
In a release, company CEO Van A. Dukeman said First Busey's market areas "show signs of strengthening" and credit quality continued to improve.
Expense reductions made earlier this year improved the quarterly results and "are expected to continue positively affecting future earnings," Dukeman said.
He added that the company has seen six consecutive quarters of growth in commercial loan balances.
Dukeman said loan growth has pushed the company's Small Business Lending Fund credits above required thresholds, and that is expected to reduce the costs of First Busey's preferred stock dividend.
Achieving the targets would lower the rate on the fund's preferred stock dividend from 5 percent to 1 percent throughout 2014 and 2015 and would increase income available to First Busey's common stockholders "significantly," he said.
On Nov. 1, the company will pay a cash dividend of 4 cents a share to stockholders of record as of Oct. 25.
Dukeman said several sources of non-interest income — including trust fees, commissions and brokers' fees, and fees for customer services — have increased from a year earlier.
Busey Bank, a wholly owned subsidiary of First Busey, has 28 banking centers in Illinois, seven in southwest Florida and one in Indianapolis. Other First Busey subsidiaries include Busey Wealth Management and FirsTech Inc., a retail payment processing subsidiary.
Other banks' results
Here's how other publicly traded banking companies performed during the third quarter of 2013:
— JPMorganChase, the New York-based parent of Chase, had a net loss of $400 million in the third quarter, compared with net income of $5.7 billion in the same quarter of 2012. That translated to a loss of 17 cents per diluted share, compared with diluted earnings of $1.40 a share a year earlier.
— PNC Financial Services Group, the Pittsburgh-based parent of PNC Bank, had net income of $1 billion, up from $925 million in 2012. Diluted earnings were $1.79 a share, up from $1.64 a share.
— Regions Financial, the Birmingham, Ala.-based parent of Regions Bank, had net income of $293 million, down from $301 million in 2012. Diluted earnings were 20 cents a share, down from 21 cents a share.
— Commerce Bancshares, the Kansas City, Mo.-based parent of Commerce Bank, had net income of $68.2 million, up from $66 million in 2012. Diluted earnings were 75 cents a share, up from 72 cents a share.
— Old National Bancorp, the Evansville, Ind.-based parent of Old National Bank, had net income of $23.95 million, up from $19.7 million in 2012. Diluted earnings were 23 cents a share, up from 20 cents a share.
— First Midwest Bancorp, the Itasca-based parent of First Midwest Bank, had net income of $29.3 million, compared with a $48.5 million net loss in 2012. Diluted earnings were 39 cents a share, compared with a loss of 65 cents per diluted share last year.
— First Financial Corp., the Terre Haute, Ind.-based parent of First Financial Bank, had net income of $8.5 million, up from $8.1 million in 2012. Diluted earnings were 64 cents a share, up from 61 cents a share.
— MainSource Financial Group, the Greensburg, Ind.-based parent of MainSource Bank, had net income of $7.6 million, up from $7 million in 2012. Diluted earnings were 36 cents a share, up from 32 cents a share.
— First Mid-Illinois Bancshares, the Mattoon-based parent of First Mid-Illinois Bank & Trust, had net income of $3.9 million, up from $3.65 million in 2012. Diluted earnings were 47 cents a share, up from 42 cents a share.