UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-15950
FIRST BUSEY CORPORATION
(Exact name of registrant as specified in its Charter)
Nevada 37-1078406
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification No.)
201 West Main Street
Urbana, Illinois 61801
------------------------------- -------------------
(Address of principal (Zip Code)
executive offices)
(217) 365-4513
--------------
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
Class A Common Stock, without par value
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 Regulation S-K is not contained herein, and will not be contained to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ ]
As of March 3, 2000, the aggregate market value of the Common Stock held by
non-affiliates was $150,997,815. The market value of the Class A Common Stock
is based on the closing price for such stock as reported on the Nasdaq National
Market on that date. Affiliates include all directors, executive officers and
beneficial holders owning 5% or more of the shares.
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date.
<TABLE>
<CAPTION>
Class Outstanding at March 3, 2000
----- ----------------------------
<S> <C>
Common Stock, without par value 13,486,344
</TABLE>
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement dated March 20, 2000 for First Busey
Corporation's Annual Meeting of Stockholders to be held April 25, 2000, (the
"1999 Proxy Statement") are incorporated by reference into Part III.
<PAGE> 1 of 50
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
<TABLE>
<CAPTION>
EXHIBITS
Exhibit Description of Exhibit Sequentially
Number Numbered Page
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
3.1 Certificate of Incorporation of First Busey Corporation (filed as Appendix B to
First Busey's definitive proxy statement filed with the Commission on April 5,
1993 (Commission File No. 0-15950), and incorporated herein by reference)
3.2 By-Laws of First Busey Corporation (filed as Appendix C to First Busey's
definitive proxy statement filed with the Commission on April 5, 1993
(Commission File No. 0-15950), and incorporated herein by reference)
10.1 First Busey Corporation 1993 Restricted Stock Award Plan (filed as Appendix E to
First Busey's definitive proxy statement filed with the Commission on April 5,
1993 (Commission File No. 0-15950), and incorporated herein by reference)
10.3 First Busey Corporation Profit Sharing Plan and Trust (filed as Exhibit 10.3 to First
Busey's Registration Statement on Form S-1 (Registration No. 33-13973), and
incorporated herein by reference)
10.4 Mortgage on County Plaza Building (filed as Exhibit 10.4 to First Busey's
Registration Statement on Form S-1 (Registration No. 33-13973), and incorporated
herein by reference)
10.7 First Busey Corporation Employee Stock Ownership Plan (filed as Exhibit 10.7 to
First Busey's Annual Report on Form 10-K for the fiscal year ended December 31,
1988 (Registration No. 2-66201), and incorporated herein by reference)
10.8 First Busey Corporation 1988 Stock Option Plan (filed as Exhibit 10.8 to First
Busey's Annual Report on Form 10-K for the fiscal year ended December 31, 1988
(Registration No. 2-66201), and incorporated herein by reference)
10.9 First Busey Corporation 1999 Stock Option Plan (filed as Appendix B to First Busey's
definitive proxy statement filed with the Commission on March 25, 1999 (Commission
File No. 0-15950), and incorporated herein by reference)
21.1 List of Subsidiaries of First Busey Corporation
23.1 Consent of Independent Public Accountants
99.1 Form 11-K Annual Report for First Busey Corporation Profit Sharing Plan and Trust
(Registration No. 33-30095) for the fiscal year ended December 31, 1999
99.2 Form 11-K Annual Report for First Busey Corporation Employee Stock Ownership Plan
(Registration No. 33-60402) for the fiscal year ended December 31, 1999
</TABLE>
<PAGE> 2 of 50
FINANCIAL STATEMENT SCHEDULES
Financial statement schedules not included in this Form 10-K have been omitted
because they are not applicable for the required information shown in the
financial statements or notes thereto.
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION INDEX TO FINANCIAL STATEMENTS
Page
-----
<S> <C>
Independent Auditor's Report 36
Consolidated Balance Sheets 37
Consolidated Statements of Income 38
Consolidated Statements of Stockholders' Equity 39-41
Consolidated Statements of Cash Flows 42-44
Notes to Consolidated Financial Statements 45-73
Management Report 74
Independent Accountant's Report 75
</TABLE>
REPORTS ON FORM 8-K
No reports on Form 8-K have been filed for or on behalf of First Busey
Corporation during the last quarter or the period covered by this Form 10-K.
FORM S-8 UNDERTAKING
For the purposes of complying with the amendments to the rules governing
Form S-8 (effective July 13, 1990) under the Securities Act of 1933, the
undersigned registrant hereby undertakes as follows, which undertaking shall be
incorporated by reference into the registrant's Registration Statement on Form
S-8 File No. 33-30095.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Securities Act
of 1933 and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
registrant of the expenses incurred or paid by a director, officer or
controlling person of the registrant in the successful defense of any action,
suit or proceeding) is asserted by such director, officer, or controlling person
in connection with the securities being registered, the registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of Urbana,
Illinois on March 25, 1999.
FIRST BUSEY CORPORATION
BY //DOUGLAS C. MILLS//
---------------------------------
Douglas C. Mills
Chairman of the Board, President,
Chief Executive Officer
<PAGE> 3 of 50
EXHIBIT 99.1
FORM 11 - K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1999
Commission File No. 0-15950 (First Busey Corporation)
Commission File No. 33-30095 (the Plan)
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
(the "Plan")
B. Name of issuer of the securities held pursuant to the
plan and the address of its principle executive office:
FIRST BUSEY CORPORATION
201 WEST MAIN STREET
URBANA, ILLINOIS 61801
<PAGE> 4 of 50
FIRST BUSEY CORPORATION
PROFIT SHARING PLAN AND TRUST
FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
<PAGE> 5 of 50
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
----------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT
ON THE FINANCIAL STATEMENTS 1
----------------------------------------------------------------------------
FINANCIAL STATEMENTS
Statements of net assets available for benefits 2
Statements of changes in net assets available for benefits 3
Notes to financial statements 4 - 18
----------------------------------------------------------------------------
SUPPLEMENTAL SCHEDULES
Schedule of assets held for investment purposes at end of year 19 - 25
Schedule of reportable transactions 26
Party in interest transactions 27
----------------------------------------------------------------------------
</TABLE>
<PAGE> 6 of 50
INDEPENDENT AUDITOR'S REPORT
To the Profit Sharing Committee and Participants
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
Urbana, Illinois
We have audited the accompanying statements of net assets available for benefits
of FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST as of December 31, 1999
and 1998, and the related statements of changes in net assets available for
benefits for each of the years in the three-year period ended December 31, 1999.
These financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of FIRST BUSEY
CORPORATION PROFIT SHARING PLAN AND TRUST as of December 31, 1999 and 1998, and
the changes in net assets available for benefits for each of the years in the
three-year period ended December 31, 1999, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary schedules of assets
held for investment purposes, reportable transactions and party in interest
transactions are presented for purposes of additional analysis and are not a
required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. These supplemental schedules are the responsibility of the Plan's
management. The supplemental schedules have been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
Champaign, Illinois
April 24, 2000
1
<PAGE> 7 of 50
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1999 AND 1998
1999 1998
----------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments at fair value:
Common stock $14,690,799 $13,686,365
Preferred stock 41,700 56,125
Shares of registered investment companies 14,398,224 8,382,379
Corporate bonds, notes and commercial paper 1,561,937 1,681,210
Short-term investments 1,765,269 1,690,755
Notes receivable, participants 191,500 171,914
Taxable municipal bonds 99,336 102,030
U. S. Treasury and federal agency securities 80,025 81,000
Notes receivable, other - 66,594
Other 4,363 4,105
------------------------
32,833,153 25,922,477
------------------------
Receivables:
Accrued interest and dividends 26,173 157,915
Participants' contributions - 29,099
Other - 362
------------------------
26,173 187,376
------------------------
Cash 33,315 -
------------------------
TOTAL ASSETS 32,892,641 26,109,853
------------------------
LIABILITIES
Cash overdraft - 65
------------------------
TOTAL LIABILITIES - 65
------------------------
NET ASSETS AVAILABLE FOR BENEFITS $32,892,641 $26,109,788
========================
<FN>
See Notes to Financial Statements.
</TABLE>
2
<PAGE> 8 of 50
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
1999 1998 1997
------------------------------------------------------------------------------------
<S> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments $ 5,753,286 $ 4,480,757 $ 3,130,723
Interest and dividends 578,091 476,598 520,750
-------------------------------------
6,331,377 4,957,355 3,651,473
-------------------------------------
Contributions:
Employers' 679,750 622,590 603,301
Employees' 783,823 792,785 702,638
Employee contribution rollovers 114,296 427,494 2,846
-------------------------------------
1,577,869 1,842,869 1,308,785
-------------------------------------
TOTAL ADDITIONS 7,909,246 6,800,224 4,960,258
-------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants 944,297 581,684 892,555
Administrative expenses 182,096 160,641 103,582
-------------------------------------
TOTAL DEDUCTIONS 1,126,393 742,325 996,137
-------------------------------------
NET INCREASE 6,782,853 6,057,899 3,964,121
Net assets available for benefits:
Beginning of year 26,109,788 20,051,889 16,087,768
-------------------------------------
End of year $32,892,641 $26,109,788 $20,051,889
=====================================
<FN>
See Notes to Financial Statements.
</TABLE>
3
<PAGE> 9 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
PLAN DESCRIPTION
The following description of the Plan provides only general information.
Participants should refer to the Plan agreement for a more complete description
of the Plan's provisions.
General:
First Busey Corporation Profit Sharing Plan and Trust (the Plan) is a
multiple-employer profit sharing plan and 401(k) plan. Participating
employers are First Busey Corporation and its subsidiaries (the Employers).
The Plan is a profit sharing plan that was amended effective January 1,
1987, to include a 401(k) plan. The Plan covers all full-time employees
of the Employers who have completed 1 year of service. It is subject to
the provisions of the Employee Retirement Income Security Act of 1974
(ERISA).
Contributions:
Each participant is permitted to make voluntary contributions to their
profit sharing account up to 10% of the participant's total compensation,
subject to certain limits as provided in the plan document and in income
tax regulations. Participants may also contribute amounts representing
distributions from other qualified plans.
The Employers' contributions to the profit sharing portion of the Plan
are determined by the Board of Directors. The Employers also make matching
contributions to the 401(k) portion of the Plan equal to a percentage of
the first 6% of total compensation that a participant contributes to the
Plan. The Employers' matching contribution is dependent upon the earnings
per share attained by First Busey Corporation. The Board of Directors
approves the level of matching contributions each year.
Participant accounts:
Each participant's profit sharing account is credited with the
participant's contributions and an allocation of (a) the Employers'
contribution, (b) Plan earnings, (c) forfeitures of terminated
participants' non-vested accounts, and (d) administrative expenses.
Allocations are based on participant earnings or account balances, as
defined. The benefit to which a participant is entitled is the benefit
that can be provided from the participant's vested account.
Each participant's 401(k) account is credited with the participant's
voluntary contributions and an allocation of (a) the Employers'
contribution, (b) Plan earnings, and (c) administrative expenses. The
benefit to which a participant is entitled is the benefit that can be
provided from the participant's vested account.
Vesting:
Participants in the 401(k) plan are immediately vested in their
voluntary contributions, the Company's contribution and the respective Plan
earnings on those contributions.
4
<PAGE> 10 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
Participants in the profit sharing plan are immediately vested in their
voluntary contributions plus earnings thereon. Vesting in the remainder of
their accounts is based on years of continuous service. A participant is
100 percent vested after seven years of credited service.
Investment options:
Upon enrollment in the 401(k) plan, a participant may direct
contributions in any of eight investment options as follows:
Balanced Fund - Funds are invested primarily in shares of registered
investment companies and corporate bonds.
Equity Growth Fund - Funds are invested in shares of registered
investment companies.
FBC Stock Fund - Funds are invested in common stock of First Busey
Corporation.
CD Fund - Funds are invested in a certificate of deposit with Busey
Bank, a subsidiary of First Busey Corporation.
International Fund - Funds are invested in international equity mutual
funds.
S & P 500 Index Fund - Funds are invested in the 500 largest companies
domiciled in the United States.
Small Cap Fund - Funds are invested in equity securities of companies
with market capitalization.
Intermediate Bond Fund - Funds are invested in a broad range of bonds
and other fixed income securities.
Self-Directed Accounts - Funds are invested in any type of investment
as chosen by the participant.
Participants may change their investment options quarterly.
Notes receivable, participants:
Participants may borrow from their fund accounts a minimum of $1,000
up to a maximum equal to the lesser of $50,000 or 50 percent of their
vested account balance. Loan transactions are treated as a transfer to
(from) the investment fund from (to) the Participant Notes fund. Loan
terms range from 3 years or up to 10 years for the purchase of a primary
residence. The loans are secured by the balance in the participant's
account and bear interest at the prime rate as set by American National
Bank. Interest rates range from 7.5 percent to 8.5 percent and are fixed
over the term of the loan. Principal and interest is paid ratably through
monthly payroll deductions.
5
<PAGE> 11 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
Payment of benefits:
Upon termination of service, a participant may elect to receive either
a lump-sum amount equal to the value of his or her account, or an annuity
payable to the participant for his or her life with an annuity payable to
the participant's surviving spouse equal to 50% of the participant's
annuity. The participant may elect to receive a smaller annuity benefit
with continuation of payments to the spouse at a rate of 75% or 100% of the
participants' annuity.
SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting:
The financial statements of the Plan are prepared under the accrual method
of accounting.
Use of estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Investment valuation and income recognition:
The Plan's investments are stated at fair value. Shares of registered
investment companies are valued at quoted market prices which represent the
net asset value of shares held by the Plan at year-end. Securities traded
on any recognized stock exchange are valued at the last reported sales
price at the valuation date. Securities not listed on an exchange and
securities for which no sale has been reported on that day are valued at
the closing bid price, or at fair value as determined by the Trustee.
Certificates of deposit and participant and other notes receivable are
valued at cost which approximates fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are recorded
on the ex-dividend date.
Payment of benefits:
Benefits are recorded when paid.
6
<PAGE> 12 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
INVESTMENTS
The following table presents the fair values of investments as of December 31,
1999 and 1998. Investments that represent 5 percent or more of the Plan's net
assets as of December 31, 1999 are separately identified.
<TABLE>
<CAPTION>
1999 1998
----------------------------------------------------
Number of Number of
Shares or Shares or
Principal Principal
Amount Fair Value Amount Fair Value
----------------------------------------------------
<S> <C> <C> <C> <C>
Investments at fair value:
Common and preferred stock:
First Busey Corporation, Common 527,269 $11,929,461 544,937 $ 9,945,100
Other 56,673 2,803,038 113,040 3,797,390
Shares of registered investment companies:
Federated Max-Cap Fund #39 138,086.671 4,138,457 101,964.960 2,587,871
Other 371,794.136 10,259,767 228,046.166 5,794,508
Corporate bonds, notes and commercial
paper $ 1,625,000 1,561,937 $ 1,650,000 1,681,210
Short-term investments $ 1,765,269 1,765,269 $ 1,690,755 1,690,755
Notes receivable, participants $ 191,500 191,500 $ 171,914 171,914
Taxable municipal bonds $ 100,000 99,336 $ 100,119 102,030
U. S. Treasury and Federal Agency
Securities $ 80,000 80,025 $ 80,000 81,000
Notes receivable, other - - $ 66,594 66,594
Other 1 4,363 1 4,105
----------- -----------
$32,833,153 $25,922,477
=========== ===========
</TABLE>
During the years ended December 31, 1999, 1998 and 1997 the Plan's investments
(including investments bought, sold and held during the year) appreciated
(depreciated) in value by $5,753,286, $4,480,757 and $3,130,723 respectively, as
follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------------------------------
<S> <C> <C> <C>
Investments at fair value:
Common stocks $2,764,993 $3,030,470 $1,965,208
Preferred stock 5,575 6,125 -
Shares of registered investment companies 3,078,052 1,426,388 1,149,336
Corporate bonds, notes and commercial paper (91,665) 15,970 5,557
Taxable municipal bonds (2,694) 1,392 (4,753)
U. S. Treasury and federal agency securities (975) 412 15,375
------------------------------------
$5,753,286 $4,480,757 $3,130,723
====================================
</TABLE>
7
<PAGE> 13 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
PARTY IN INTEREST TRANSACTIONS
Parties in interest include fiduciaries or employees of the plan, any person who
provides services to the plan, an employer whose employees are covered by the
plan, an employee organization whose members are covered by the plan, a person
who owns 50 percent or more of such an employer or employee association, or
relatives of such persons just listed.
Fees paid to First Busey Trust & Investment Co., the Plan's trustee, for
investment management services amounted to $142,939, $116,206 and $61,110 for
the three years ended December 31, 1999, 1998 and 1997, respectively.
The Plan invests in certificates of deposit with Busey Bank, a subsidiary of
First Busey Corporation. Purchases and maturities of certificates of deposit
from Busey Bank also qualify as party in interest transactions.
INCOME TAX STATUS
The Internal Revenue Service has determined and informed First Busey Corporation
by a letter dated May 25, 1995, that the Plan and related trust are designed in
accordance with applicable sections of the Internal Revenue Code. The Plan has
been amended since receiving the determination letter. However, the Plan
administrator believes that the Plan is designed and is currently being operated
in compliance with the applicable requirements of the IRC.
PLAN TERMINATION
In the event of the termination of the Plan, or upon the complete discontinuance
of contributions, the Plan shall be used to provide benefits under the Plan for
participants and their beneficiaries in the order of decreasing priority as
described in the Employee Retirement Income Security Act of 1974. In the event
of Plan termination, participants will become 100 percent vested in their
accounts.
Presently, there is no intention on the part of the Employers to terminate the
Plan or to discontinue contributions to the Plan.
8
<PAGE> 14 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, BY FUND
December 31, 1999
Participant Directed Profit Sharing & 401(k)
--------------------------------------------------------
Equity FBC
Balanced Growth Stock CD Loan
Fund Fund Fund Fund Account
--------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Common stock $2,585,228 $ - $11,920,411 $ - $ -
Preferred stock 41,700 - - - -
Shares of registered
investment companies 522,524 6,042,343 - - -
Corporate bonds, notes and
commercial paper 1,546,537 - - - -
Short-term investments 169,776 154,006 322,129 881,640
Notes receivable, participants - - - - 191,500
Taxable municipal bonds 99,336 - - - -
U.S. Treasury and federal
agency securities 80,025 - - - -
Notes receivable, other - - - - -
Other - - - - -
--------------------------------------------------------
5,045,126 6,196,349 12,242,540 881,640 191,500
--------------------------------------------------------
Receivables:
Interfund (payable)/receivable 3,376 (2,290) 1,937 2,426 -
Accrued interest and dividends 23,370 477 419 6 -
--------------------------------------------------------
26,746 (1,813) 2,356 2,432 -
--------------------------------------------------------
Cash 4,545 6,704 12,888 646 -
--------------------------------------------------------
TOTAL ASSETS 5,076,417 6,201,240 12,257,784 884,718 191,500
--------------------------------------------------------
LIABILITIES
Cash overdraft - - - - -
--------------------------------------------------------
TOTAL LIABILITIES - - - - -
--------------------------------------------------------
NET ASSETS AVAILABLE
FOR BENEFITS $5,076,417 $6,201,240 $12,257,784 $884,718 $191,500
========================================================
9
<PAGE> 15 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
<CAPTION>
December 31, 1999
Participant Directed Profit Sharing & 401(k)
---------------------------------------------------------------------------------------------------
S&P 500 Financial Intermediate Self-
International Index Institution Small Bond Directed Holding
Fund Fund Fund Cap Fund Accounts Account Total
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Common stock $ - $ - $ - $ - $ - $ 185,160 $ - $14,690,799
Preferred stock - - - - - - - 41,700
Shares of registered
investment companies 2,478,332 4,138,457 - 943,251 273,317 - - 14,398,224
Corporate bonds, notes and
commercial paper - - - - - 15,400 - 1,561,937
Short-term investments 89,498 106,264 - 22,943 8,275 8,863 1,875 1,765,269
Notes receivable, participants - - - - - - - 191,500
Taxable municipal bonds - - - - - - - 99,336
U.S. Treasury and federal
agency securities - - - - - - - 80,025
Notes receivable, other - - - - - - - -
Other - - - - - 4,363 - 4,363
---------------------------------------------------------------------------------------------------
2,567,830 4,244,721 - 966,194 281,592 213,786 1,875 32,833,153
---------------------------------------------------------------------------------------------------
Receivables:
Interfund (payable)/receivable (104) 215 (330) (696) (913) - (3,621) -
Accrued interest and dividends 62 48 - 63 12 40 1,676 26,173
---------------------------------------------------------------------------------------------------
(42) 263 (330) (633) (901) 40 (1,945) 26,173
---------------------------------------------------------------------------------------------------
Cash 2,028 4,867 330 972 265 - 70 33,315
---------------------------------------------------------------------------------------------------
TOTAL ASSETS 2,569,816 4,249,851 - 966,533 280,956 213,826 - 32,892,641
---------------------------------------------------------------------------------------------------
LIABILITIES
Cash overdraft - - - - - - - -
---------------------------------------------------------------------------------------------------
TOTAL LIABILITIES - - - - - - - -
---------------------------------------------------------------------------------------------------
NET ASSETS AVAILABLE
FOR BENEFITS $2,569,816 $4,249,851 $ - $966,533 $ 280,956 $ 213,826 $ - $32,892,641
===================================================================================================
</TABLE>
10
<PAGE> 16 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NOTE 7. STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS, BY FUND (CONTINUED)
December 31, 1998
Participant Directed Profit Sharing & 401(k)
-------------------------------------------------------
Equity FBC
Balanced Growth Stock CD Loan
Fund Fund Fund Fund Account
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Common stock $2,387,514 $ - $ 9,937,800 $ - $ -
Preferred stock 33,675 - - - -
Shares of registered
investment companies 560,386 4,287,782 - - -
Corporate bonds, notes and
commercial paper 1,631,210 - - - -
Short-term investments 227,146 87,846 30,306 696,206 -
Notes receivable, participants - - - - 171,914
Taxable municipal bonds 102,030 - - - -
U.S. Treasury and federal
agency securities 81,000 - - - -
Notes receivable, other 66,594 - - - -
Other - - - - -
-------------------------------------------------------
5,089,555 4,375,628 9,968,106 696,206 171,914
-------------------------------------------------------
Receivables:
Interfund (payable)/receivable 87,175 149,191 251,781 13,788 -
Accrued interest and dividends 31,415 46,582 126 27,037 -
Participants' contribution 3,985 6,823 11,768 719 -
Other - 57 34 - -
-------------------------------------------------------
122,575 202,653 263,709 41,544 -
-------------------------------------------------------
TOTAL ASSETS 5,212,130 4,578,281 10,231,815 737,750 171,914
-------------------------------------------------------
LIABILITIES
Cash overdraft - - - 65 -
-------------------------------------------------------
TOTAL LIABILITIES - - - 65 -
-------------------------------------------------------
NET ASSETS AVAILABLE
FOR BENEFITS $5,212,130 $4,578,281 $10,231,815 $737,685 $171,914
=======================================================
11
<PAGE> 17 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
<CAPTION>
December 31, 1998
Participant Directed Profit Sharing & 401(k)
-----------------------------------------------------------------------------
S&P 500 Financial Self-
International Index Institution Directed Holding
Fund Fund Fund Accounts Account Total
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
Common stock $ - $ - $ 1,167,091 $ 193,960 $ - $13,686,365
Preferred stock - - 22,450 - - 56,125
Shares of registered
investment companies 946,340 2,587,871 - - - 8,382,379
Corporate bonds, notes and
commercial paper - - 30,000 20,000 - 1,681,210
Short-term investments 1,919 8,541 15,578 3,110 620,103 1,690,755
Notes receivable, participants - - - - - 171,914
Taxable municipal bonds - - - - - 102,030
U.S. Treasury and federal
agency securities - - - - - 81,000
Notes receivable, other - - - - - 66,594
Other - - - 4,105 - 4,105
-----------------------------------------------------------------------------
948,259 2,596,412 1,235,119 221,175 620,103 25,922,477
-----------------------------------------------------------------------------
Receivables:
Interfund (payable)/receivable 29,056 57,215 34,631 - (622,837) -
Accrued interest and dividends 50,341 17 53 10 2,334 157,915
Participants' contribution 1,396 2,795 1,613 - - 29,099
Other (56) (23) - (50) 400 362
-----------------------------------------------------------------------------
80,737 60,004 36,297 (40) (620,103) 187,376
-----------------------------------------------------------------------------
TOTAL ASSETS 1,028,996 2,656,416 1,271,416 221,135 - 26,109,853
-----------------------------------------------------------------------------
LIABILITIES
Cash overdraft - - - - - 65
-----------------------------------------------------------------------------
TOTAL LIABILITIES - - - - - 65
-----------------------------------------------------------------------------
NET ASSETS AVAILABLE
FOR BENEFITS $ 1,028,996 $2,656,416 $ 1,271,416 $ 221,135 $ - $26,109,788
=============================================================================
</TABLE>
12
<PAGE> 18 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, BY FUND
Year Ended December 31, 1999
Participant Directed Profit Sharing & 401(k)
---------------------------------------------------------
Equity FBC
Balanced Growth Stock CD Loan
Fund Fund Fund Fund Account
---------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 439,360 $1,411,789 $ 2,427,896 $ - $ -
Interest and dividends 157,697 29,468 243,848 44,934 16,379
---------------------------------------------------------
597,057 1,441,257 2,671,744 44,934 16,379
---------------------------------------------------------
Contributions:
Employers 78,593 134,569 269,383 18,769 -
Employees 92,408 154,488 319,627 22,820 -
Employee contributions representing
transfers from another qualified
retirement trust 1,439 3,781 103,689 - -
---------------------------------------------------------
172,440 292,838 692,699 41,589 -
---------------------------------------------------------
TOTAL ADDITIONS 769,497 1,734,095 3,364,443 86,523 16,379
---------------------------------------------------------
Deductions from net assets
attributed to:
Benefits paid to participants 190,859 92,656 397,082 186,179 12,135
Administrative expenses 32,047 29,516 73,724 5,580 -
---------------------------------------------------------
TOTAL DEDUCTIONS 222,906 122,172 470,806 191,759 12,135
---------------------------------------------------------
Net participants' transfers
between funds (674,544) 9,323 (870,507) 251,723 15,342
Net forfeitures (7,760) 1,713 2,839 546 -
---------------------------------------------------------
(682,304) 11,036 (867,668) 252,269 15,342
---------------------------------------------------------
NET INCREASE (DECREASE) (135,713) 1,622,959 2,025,969 147,033 19,586
Net assets available for benefits:
Beginning of year 5,212,130 4,578,281 10,231,815 737,685 171,914
---------------------------------------------------------
End of year $5,076,417 $6,201,240 $12,257,784 $884,718 $191,500
=========================================================
13
<PAGE> 19 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
<CAPTION>
Year Ended December 31, 1999
Participant Directed Profit Sharing & 401(k)
-----------------------------------------------------------------------------------------------
S&P 500 Financial Intermediate Self-
International Index Institution Small Bond Directed Holding
Fund Fund Fund Cap Fund Accounts Account Total
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 712,229 $ 676,640 $ (28,323) $128,321 $ (3,683) $(10,943) $ - $ 5,753,286
Interest and dividends 10,652 44,288 13,377 8,539 4,597 4,312 - 578,091
-----------------------------------------------------------------------------------------------
722,881 720,928 (14,946) 136,860 914 (6,631) - 6,331,377
-----------------------------------------------------------------------------------------------
Contributions:
Employers 45,817 104,020 - 21,608 6,991 - - 679,750
Employees 46,111 126,349 12,455 7,078 2,487 - - 783,823
Employee contributions representing
transfers from another qualified
retirement trust 443 1,914 - 1,310 1,720 - - 114,296
-----------------------------------------------------------------------------------------------
92,371 232,283 12,455 29,996 11,198 - - 1,577,869
-----------------------------------------------------------------------------------------------
TOTAL ADDITIONS 815,252 953,211 (2,491) 166,856 12,112 (6,631) - 7,909,246
-----------------------------------------------------------------------------------------------
Deductions from net assets
attributed to:
Benefits paid to participants 17,538 42,071 5,777 - - - - 944,297
Administrative expenses 9,948 24,841 4,646 843 273 678 - 182,096
-----------------------------------------------------------------------------------------------
TOTAL DEDUCTIONS 27,486 66,912 10,346 843 273 678 - 1,126,316
-----------------------------------------------------------------------------------------------
Net participants' transfers
between funds 752,287 706,140 (1,258,502) 799,835 268,903 - - -
Net forfeitures 767 996 - 685 214 - - -
-----------------------------------------------------------------------------------------------
753,054 707,136 (1,258,579) 800,520 269,117 - - -
-----------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) 1,540,820 1,593,435 (1,271,416) 966,533 280,956 (7,309) - 6,782,853
Net assets available for benefits:
Beginning of year 1,028,996 2,656,416 1,271,416 - - 221,135 - 26,109,788
-----------------------------------------------------------------------------------------------
End of year $ 2,569,816 $4,249,851 $ - $966,533 $ 280,956 $213,826 $ - $32,892,641
===============================================================================================
</TABLE>
14
<PAGE> 20 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NOTE 8. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, BY FUND (CONTINUED)
Year Ended December 31, 1998
Participant Directed Profit Sharing & 401(k)
-----------------------------------------------------------
Equity FBC
Balanced Growth Stock CD Loan
Fund Fund Fund Fund Account
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 729,132 $ 670,819 $ 2,557,305 $ - $ -
Interest and dividends 109,324 26,536 230,545 27,812 18,507
-----------------------------------------------------------
838,456 697,355 2,787,850 27,812 18,507
-----------------------------------------------------------
Contributions:
Employers 92,844 144,884 252,088 13,378 -
Employees 103,199 208,823 324,391 12,109 -
Employee contributions representing
transfers from another qualified
retirement trust 130,807 133,738 55,217 - -
-----------------------------------------------------------
326,850 487,445 631,696 25,487 -
-----------------------------------------------------------
TOTAL ADDITIONS 1,165,306 1,184,800 3,419,546 53,299 18,507
-----------------------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants 163,555 119,693 230,980 2,427 1,695
Administrative expenses 30,768 28,998 65,974 3,098 -
-----------------------------------------------------------
TOTAL DEDUCTIONS 194,323 148,691 296,954 5,525 1,695
-----------------------------------------------------------
Net participants' transfers between funds 75,417 (168,219) (497,238) 345,144 (54,628)
Net forfeitures (6,073) 2,038 2,690 336 -
-----------------------------------------------------------
69,344 (166,181) (494,548) 345,480 (54,628)
-----------------------------------------------------------
NET INCREASE (DECREASE) 1,040,327 869,928 2,628,044 393,254 (37,816)
Net assets available for benefits:
Beginning of year 4,171,803 3,708,353 7,603,771 344,431 209,730
-----------------------------------------------------------
End of year $5,212,130 $4,578,281 $10,231,815 $737,685 $171,914
===========================================================
15
<PAGE> 21 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
<CAPTION>
Year Ended December 31, 1998
Participant Directed Profit Sharing & 401(k)
----------------------------------------------------------------------------
S&P 500 Financial Self-
International Index Institution Directed Holding
Fund Fund Fund Accounts Account Total
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 170,758 $ 486,008 $ (106,145) $ (27,120) $ - $ 4,480,757
Interest and dividends 7,839 23,016 29,317 3,677 25 476,598
----------------------------------------------------------------------------
178,597 509,024 (76,828) (23,443) 25 4,957,355
----------------------------------------------------------------------------
Contributions:
Employers 28,777 56,228 34,391 - - 622,590
Employees 33,953 61,818 48,492 - - 792,785
Employee contributions representing
transfers from another qualified
retirement trust 6,476 64,279 33,101 3,876 - 427,494
----------------------------------------------------------------------------
69,206 182,325 115,984 3,876 - 1,842,869
----------------------------------------------------------------------------
TOTAL ADDITIONS 247,803 691,349 39,156 (19,567) 25 6,800,224
----------------------------------------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants 37,960 19,945 5,429 - - 581,684
Administrative expenses 6,110 11,458 13,538 697 - 160,641
----------------------------------------------------------------------------
TOTAL DEDUCTIONS 44,070 31,403 18,967 697 - 742,325
----------------------------------------------------------------------------
Net participants' transfers between funds (271,455) 374,516 199,407 - (2,944) -
Net forfeitures 251 655 103 - - -
----------------------------------------------------------------------------
(271,204) 375,171 199,510 - (2,944) -
----------------------------------------------------------------------------
NET INCREASE (DECREASE) (67,471) 1,035,117 219,699 (20,264) (2,919) 6,057,899
Net assets available for benefits:
Beginning of year 1,096,467 1,621,299 1,051,717 241,399 2,919 20,051,889
----------------------------------------------------------------------------
End of year $ 1,028,996 $2,656,416 $ 1,271,416 $ 221,135 $ - $26,109,788
=============================================================================
</TABLE>
16
<PAGE> 22 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NOTE 8. STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS, BY FUND (CONTINUED)
Year Ended December 31, 1997
Participant Directed Profit Sharing & 401(k)
-------------------------------------------------------
Equity FBC
Balanced Growth Stock CD Loan
Fund Fund Fund Fund Account
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 68,057 $ 441,664 $1,115,294 $ - $ -
Interest and dividends 59,402 33,980 151,576 9,464 12,865
-------------------------------------------------------
127,459 475,644 1,266,870 9,464 12,865
-------------------------------------------------------
Contributions:
Employers 96,515 134,832 222,339 8,690 -
Employees 68,890 180,634 400,681 9,287 -
Employee contributions representing
transfers from another qualified
retirement trust - - - - -
-------------------------------------------------------
165,405 315,466 623,020 17,977 -
-------------------------------------------------------
TOTAL ADDITIONS 292,864 791,110 1,889,890 27,441 12,865
-------------------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants 123,210 35,994 105,223 14,870 -
Administrative expenses 5,973 7,851 16,234 2,363 -
-------------------------------------------------------
TOTAL DEDUCTIONS 129,183 43,845 121,457 17,233 -
-------------------------------------------------------
Net participants' transfers between funds 3,038,678 1,369,790 1,474,778 205,428 196,865
Net forfeitures (10,364) 3,438 1,179 239 -
-------------------------------------------------------
3,028,314 1,373,228 1,475,957 205,667 196,865
-------------------------------------------------------
NET INCREASE (DECREASE) 3,191,995 2,120,493 3,244,390 215,875 209,730
Net assets available for benefits:
Beginning of year 979,808 1,587,860 4,359,381 128,556 -
-------------------------------------------------------
End of year $4,171,803 $3,708,353 $7,603,771 $344,431 $209,730
=======================================================
17
<PAGE> 23 of 50
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
<CAPTION>
Year Ended December 31, 1997
Participant Directed Profit Sharing & 401(k)
-----------------------------------------------------------------------------
S&P 500 Financial Self-
International Index Institution Directed Holding
Fund Fund Fund Accounts Account Total
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ (3,198) $ 29,491 $ 106,676 $ 74,966 $ 1,297,773 $ 3,130,723
Interest and dividends 9,312 7,802 4,278 6,209 225,862 520,750
-----------------------------------------------------------------------------
6,114 37,293 110,954 81,175 1,523,635 3,651,473
-----------------------------------------------------------------------------
Contributions:
Employers 54,035 61,719 25,171 - - 603,301
Employees 43,146 - - - - 702,638
Employee contributions representing
transfers from another qualified
retirement trust - - - - 2,846 2,846
-----------------------------------------------------------------------------
97,181 61,719 25,171 - 2,846 1,308,785
-----------------------------------------------------------------------------
TOTAL ADDITIONS 103,295 99,012 136,125 81,175 1,526,481 4,960,258
-----------------------------------------------------------------------------
Deductions from net assets attributed to:
Benefits paid to participants 1,039 810 - - 611,409 892,555
Administrative expenses 2,649 1,858 1,815 499 64,340 103,582
-----------------------------------------------------------------------------
TOTAL DEDUCTIONS 3,688 2,668 1,815 499 675,749 996,137
-----------------------------------------------------------------------------
Net participants' transfers between funds 995,879 1,521,727 916,108 160,723 (9,879,976) -
Net forfeitures 981 3,228 1,299 - - -
-----------------------------------------------------------------------------
996,860 1,524,955 917,407 160,723 (9,879,976) -
-----------------------------------------------------------------------------
NET INCREASE (DECREASE) 1,096,467 1,621,299 1,051,717 241,399 (9,029,244) 3,964,121
Net assets available for benefits:
Beginning of year - - - - 9,032,163 16,087,768
-----------------------------------------------------------------------------
End of year $ 1,096,467 $1,621,299 $ 1,051,717 $ 241,399 $ 2,919 $20,051,889
=============================================================================
</TABLE>
18
<PAGE> 24 of 50
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR
DECEMBER 31, 1999
Number of
Shares or
Principal Current
Description Amount Cost Value
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS
Abbott Laboratories 1,068 $ 33,827 $ 38,782
American International Group 1,002 54,438 108,341
Associates First Capital Corp. CL A 1,250 50,359 34,297
Bank of America Corporation 708 47,779 35,533
Bank One Corp. 900 50,152 28,800
BankIllinois Financial Corp. 115 1,341 2,602
BankIllinois Financial Corp. 463 5,399 10,475
Boeing Co. 1,032 47,982 42,763
Bristol Myers Squibb Co. 1,360 59,275 87,295
Cisco Systems, Inc. 1,440 27,367 154,260
Citizens First Financial Corp. 1,750 17,500 21,000
Colorado Business Bankshares, Inc. 600 9,033 7,650
Commercial Net Lease Realty Inc. 500 6,103 4,969
Disney (Walt) Co. 1,896 52,836 55,458
Du Pont (E.I.) De Nemours & Co. 868 49,751 57,179
Earthlink Network, Inc. 100 6,048 4,250
Emerson Electric Co. 960 52,476 55,080
Exxon Mobil Corp. 1,177 65,190 94,822
F.N.B. Corporation 483 4,897 10,747
Federal National Mortgage Association 672 33,939 41,958
* First Busey Corporation 526,869 6,385,003 11,920,411
* First Busey Corporation 400 4,588 9,050
First Data Corp. 1,850 53,372 91,228
First Union Corp. 100 4,616 3,294
Fleet Boston Financial Corp. 1,047 37,055 36,449
General Electric Co. 832 55,484 128,752
Gillette Co. 1,328 60,195 54,697
Harbor Florida Bancshares Inc. 803 1,781 10,389
Hartford Life Class A 1,000 54,100 44,000
Home Depot Inc. 1,432 39,995 147,675
-----------------------
COMMON STOCKS SUBTOTAL $7,371,881 $13,342,206
-----------------------
Continued
<FN>
* Represents party-in-interest transaction.
</FN>
19
<PAGE> 25 of 50
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR, CONTINUED
DECEMBER 31, 1999
Number of
Shares or
Principal Current
Description Amount Cost Value
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
COMMON STOCKS BROUGHT FORWARD $ 7,371,881 $13,342,206
Intel Corp. 904 34,006 74,410
Intervest Bancshares Corp. 2,000 20,000 12,500
Intervest Bancshares Corp. Warrants (Exp. 12/31/02) 2,000 - -
Kohl's Corp. 1,712 56,663 123,585
May Department Stores Co. 1,440 52,476 46,440
McDonald's Corp. 2,092 48,735 84,334
MCI Worldcom Inc. 163 11,909 12,974
Microsoft Corporation 1,560 52,059 182,130
National City Corp. 1,724 51,507 40,837
Pepsico 1,474 53,949 51,958
Pitney Bowes Inc. 956 51,122 46,187
Procter & Gamble 684 46,941 74,941
Raytheon Co. Class B (New) 451 13,237 11,980
Republic Security Financial Corp. 419 1,881 2,998
Royal Dutch Petroleum 1.25 Guilder Shares 960 51,516 58,140
Schering-Plough Corp. 800 23,906 33,900
Staples, Inc. 2,565 52,003 53,224
State Street Corp. 1,053 59,398 76,935
Sun Microsytems, Inc. 2,080 51,267 161,070
Vodafone Airtouch PLC 500 4,114 24,750
Wal-Mart Stores, Inc. 1,600 52,880 110,600
Wells Fargo & Co. New 1,600 52,110 64,700
------------------------
TOTAL COMMON STOCKS $ 8,213,560 $14,690,799
========================
PREFERRED STOCKS
CNB CAP TR I GTD CONV. PFD 1,200 $ 30,000 $ 41,700
------------------------
TOTAL PREFERRED STOCKS $ 30,000 $ 41,700
========================
Continued
20
<PAGE> 26 of 50
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR, CONTINUED
DECEMBER 31, 1999
Number of
Shares or
Principal Current
Description Amount Cost Value
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHARES OF REGISTERED INVESTMENT COMPANIES
Federated Max-Cap Fund #39 138,086.671 $ 3,238,209 $ 4,138,457
Fidelity Advisor Equity Growth Class I 1,067.524 39,026 77,951
Fidelity Advisor Equity Growth Class I 14,194.489 777,959 1,036,482
Fidelity Advisor Small Cap - Class I 4,444.445 50,000 101,778
Invesco Dynamics 3,540.139 58,200 91,548
Invesco Dynamics 50,599.928 746,541 1,308,514
Janus Fund 1,817.249 41,633 80,050
Janus Fund 24,288.455 718,277 1,069,906
MFS Capital Opportunities Fund - CL I 2,886.115 55,500 60,695
MFS Capital Opportunities Fund - CL I 44,243.447 859,849 930,440
Mutual Shares Fund 2,864.997 50,591 58,532
Mutual Shares Fund 42,879.575 928,015 876,030
Nicholas Fund, Inc. 640.425 38,272 51,970
Nicholas Fund, Inc. 10,116.713 862,532 820,971
Northern Institutional Intermediate Bond A 14,522.687 277,000 273,317
Northern Institutional Small Company Index A 73,749.088 914,300 943,251
Scudder International Fund 18,508.911 966,881 1,309,320
T. Rowe Price International Stock Fund 61,429.949 930,661 1,169,012
------------------------
TOTAL SHARES OF MUTUAL FUNDS $11,553,446 $14,398,224
========================
CORPORATE BONDS, NOTES AND
COMMERCIAL PAPER
Abbey Natl PLC Medium Term, 6.690%
due October 17, 2005 $ 50,000 $ 49,292 $ 47,906
American General Corp., 6.250%, due
March 15, 2003 100,000 95,916 97,094
Associates Corp. NA, 6.000%, due
December 1, 2002 50,000 51,010 48,625
BankAmerica Corp., 6.625%, due May 30, 2001 125,000 126,656 124,375
Bear Stearns Co., Inc., 6.700%, due August 1, 2003 100,000 101,164 97,437
------------------------
CORPORATE BONDS, NOTES AND
COMMERCIAL PAPER SUBTOTAL $ 424,038 $ 415,437
------------------------
Continued
21
<PAGE> 27 of 50
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR, CONTINUED
DECEMBER 31, 1999
Number of
Shares or
Principal Current
Description Amount Cost Value
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
CORPORATE BONDS, NOTES AND
COMMERCIAL PAPER BROUGHT FORWARD $ 424,038 $ 415,437
Bears Stearns Co., Inc., 6.125%,
due February 1, 2003 100,000 100,509 96,500
Bear Stearns Co., Inc., 6.500%, due June 15, 2000 50,000 50,495 50,000
BellSouth Telecommunications Inc., 6.500%,
due February 1, 2000 25,000 25,047 25,007
Chemical Bank, 6.625%, due August 15, 2005 50,000 51,271 48,281
CIT Group Holdings, Inc., 5.625%, due
February 1, 2001 25,000 23,741 24,664
Citicorp, 6.375%, due January 15, 2006 100,000 103,606 94,563
Ford Motor Credit Corp., 6.125%, due
January 9, 2006 50,000 50,334 46,781
Household Finance Corp., 5.875%, due
September 25, 2004 50,000 50,157 47,016
Intervest Bancshares Corp., 8.000%, due July 1, 2008 30,000 23,100 23,100
Intervest Bancshares Corp., 8.000%, due July 1, 2008 20,000 20,000 15,400
Loews Corp., 6.750%, due December 15, 2006 150,000 153,088 141,797
Merrill Lynch & Co. Inc., 6.000%, due
July 15, 2005 50,000 50,163 46,875
Merrill Lynch & Co. Inc., 6.000%, due
November 15, 2004 50,000 50,725 47,391
Merrill Lynch & Co. Inc., 6.550%, due
August 1, 2004 100,000 100,706 97,063
Morgan Stanley Dean Witter, 6.875%, due
March 1, 2007 50,000 48,857 48,125
NationsBank Corp., 6.125%, due July 15, 2004 50,000 50,670 47,969
NationsBank Corp., 6.375%, May 15, 2005 100,000 100,868 96,063
Norwest Corp., 6.800%, due May 15, 2002 25,000 24,880 24,898
St. Paul Companies, Inc., 6.170%, due
January 15, 2001 50,000 50,485 49,625
St. Paul Companies, Inc., 7.970%, due May 20, 2002 25,000 25,371 25,437
Tele-Communications Inc., 7.250%, due
August 1, 2005 50,000 50,781 49,945
------------------------
TOTAL CORPORATE BONDS, NOTES
AND COMMERCIAL PAPER $ 1,628,892 $ 1,561,937
========================
Continued
22
<PAGE> 28 of 50
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR, CONTINUED
DECEMBER 31, 1999
Number of
Shares or
Principal Current
Description Amount Cost Value
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENTS
* Certificate of Deposit, Busey Bank,
6.000%, due December 31, 1999 $ 865,161 $ 865,161 $ 865,161
Northern Institutional Government Select Portfolio 322,129 322,129 322,129
Northern Institutional Government Select Portfolio 16,479 16,479 16,479
Northern Institutional Government Select Portfolio 169,776 169,776 169,776
Northern Institutional Government Select Portfolio 1,875 1,875 1,875
Northern Institutional Government Select Portfolio 154,006 154,006 154,006
Northern Institutional Government Select Portfolio 7,361 7,361 7,361
Northern Institutional Government Select Portfolio 1,502 1,502 1,502
Northern Institutional Government Select Portfolio 89,498 89,498 89,498
Northern Institutional Government Select Portfolio 106,264 106,264 106,264
Northern Institutional Government Select Portfolio 22,943 22,943 22,943
Northern Institutional Government Select Portfolio 8,275 8,275 8,275
------------------------
TOTAL SHORT-TERM INVESTMENTS $ 1,765,269 $ 1,765,269
========================
NOTES RECEIVABLE, Participants
Participant, 8.500%, due September 15, 2001 $ 2,053 $ 2,053 $ 2,053
Participant, 8.500%, due September 15, 2003 4,729 4,729 4,729
Participant, 8.500%, due September 15, 2003 13,399 13,399 13,399
Participant, 8.500%, due September 15, 2003 1,077 1,077 1,077
Participant, 8.000%, due October 15, 2003 4,005 4,005 4,005
Participant, 8.000%, due October 15, 2003 1,198 1,198 1,198
Participant, 7.750%, due April 15, 2004 17,470 17,470 17,470
Participant, 7.750%, due April 15, 2004 7,458 7,458 7,458
Participant, 7.750%, due April 15, 2002 1,235 1,235 1,235
Participant, 7.750%, due June 15, 2002 2,058 2,058 2,058
Participant, 7.750%, due June 15, 2002 2,123 2,123 2,123
Participant, 7.750%, due June 15, 2002 2,547 2,547 2,547
Participant, 8.000%, due July 15, 2004 4,860 4,860 4,860
Participant, 8.000%, due July 15, 2004 4,655 4,655 4,655
Participant, 8.250%, due September 15, 2004 23,634 23,634 23,634
Participant, 8.250%, due September 15, 2002 926 926 926
------------------------
NOTES RECEIVABLE, PARTICIPANTS,
SUBTOTAL 93,427 93,427
------------------------
Continued
<FN>
* Represents party-in-interest transaction.
</FN>
23
<PAGE> 29 of 50
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR, CONTINUED
DECEMBER 31, 1999
Number of
Shares or
Principal Current
Description Amount Cost Value
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
NOTES RECEIVABLE, PARTICIPANT,
BROUGHT FORWARD $ 93,427 $ 93,427
Participant, 8.250%, due October 15, 2002 3,803 3,803 3,803
Participant, 8.250%, due October 15, 2002 951 951 951
Participant, 8.250%, due November 15, 2002 951 951 951
Participant, 8.500%, due November 15, 2004 10,852 10,852 10,852
Participant, 8.500%, due December 15, 2002 1,650 1,650 1,650
Participant, 8.500%, due January 15, 2002 2,400 2,400 2,400
Participant, 7.500%, due September 15, 2001 2,107 2,107 2,107
Participant, 8.500%, due January 15, 2001 735 735 735
Participant, 8.250%, due July 15, 2001 6,784 6,784 6,784
Participant, 8.250%, due October 15, 2001 2,851 2,851 2,851
Participant, 8.250%, due February 15, 2000 156 156 156
Participant, 8.500%, due May 15, 2000 385 385 385
Participant, 8.500%, due May 15, 2000 186 186 186
Participant, 8.500%, due May 15, 2002 3,116 3,116 3,116
Participant, 8.500%, due September 15, 2007 18,309 18,309 18,309
Participant, 8.500%, due November 15, 2000 607 607 607
Participant, 8.500%, due December 15, 2002 3,677 3,677 3,677
Participant, 8.500%, due February 15, 2001 1,485 1,485 1,485
Participant, 8.500%, due January 15, 2001 703 703 703
Participant, 8.500%, due February 15, 2001 664 664 664
Participant, 8.500%, due March 15, 2003 4,391 4,391 4,391
Participant, 8.500%, due March 15, 2001 470 470 470
Participant, 8.500%, due March 15, 2001 1,119 1,119 1,119
Participant, 8.500%, due April 15, 2008 4,401 4,401 4,401
Participant, 8.500%, due June 15, 2001 1,915 1,915 1,915
Participant, 8.500%, due June 15, 2001 1,595 1,595 1,595
Participant, 8.500%, due July 15, 2003 3,861 3,861 3,861
Participant, 8.500%, due July 15, 2008 7,135 7,135 7,135
Participant, 8.500%, due July 15, 2001 1,958 1,958 1,958
Participant, 8.500%, due August 15, 2003 8,856 8,856 8,856
------------------------
TOTAL, NOTES RECEIVABLE, PARTICIPANTS $ 191,500 $ 191,500
========================
Continued
24
<PAGE> 30 of 50
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR, CONTINUED
DECEMBER 31, 1999
Number of
Shares or
Principal Current
Description Amount Cost Value
--------------------------------------------------------------------------------------------
<S> <C> <C> <C>
TAXABLE MUNICIPAL BONDS
Beaver Dam, WI prom nts, 6.300%, due
September 1, 2000 $ 100,000 $ 100,119 $ 99,336
========================
U.S. TREASURY AND FEDERAL AGENCY SECURITIES
Federal Farm Credit Union Bank Bond
6.190%, due February 3, 2000 80,000 $ 80,795 $ 80,025
========================
OTHER
New England Life Insurance policy 1 $ 2,763 $ 4,363
========================
</TABLE>
25
<PAGE> 31 of 50
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1999
Current
Expense Value of
Identity Incurred Asset on
of Party Description Purchase Selling Lease with Cost of Transaction Net Gain
Involved of Asset Price Price Rental Transaction Asset Date or Loss
---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
There were no reportable transactions for the period. All assets are participant directed.
</TABLE>
26
<PAGE> 32 of 50
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION PROFIT SHARING PLAN AND TRUST
PARTY IN INTEREST TRANSACTIONS
YEAR ENDED DECEMBER 31, 1999
Transaction
Description of Transaction Amount
-----------------------------------------------------------------------------
<S> <C>
Management fees paid to First Busey Trust & Investment Co. $ 142,939
Purchases of Busey Bank certificates of deposit 341,010
Maturities of Busey Bank certificates of deposit 226,678
Purchases of First Busey Corporation common stock 1,173,610
Sales of First Busey Corporation common stock 1,703,983
</TABLE>
27
<PAGE> 33 of 50
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Registration Statement on
Form S-8 (File No. 33-30095) under the Securities Act of 1933 of First Busey
Corporation of our report dated April 24, 2000 on our audits of the financial
statements of First Busey Corporation Profit Sharing Plan and Trust as of
December 31, 1999 and 1998, and for each of the years in the three-year period
ended December 31, 1999 and supporting schedules as of December 31, 1999, which
is included in the Annual Report on Form 11-K for the year ended December 31,
1999.
McGLADREY & PULLEN, LLP
Champaign, Illinois
June 26, 2000
<PAGE> 34 of 50
EXHIBIT 99.2
FORM 11 - K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
For the fiscal year ended December 31, 1999
Commission File No. 0-15950 (First Busey Corporation)
Commission File No. 33-60402 (the Plan)
A. Full title of the plan and the address of the plan, if
different from that of the issuer named below:
FIRST BUSEY CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN
AND TRUST
(the "Plan")
B. Name of issuer of the securities held pursuant to the
plan and the address of its principle executive office:
FIRST BUSEY CORPORATION
201 WEST MAIN STREET
URBANA, ILLINOIS 61801
<PAGE> 35 of 50
FIRST BUSEY CORPORATION
EMPLOYEES' STOCK OWNERSHIP PLAN
FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
<PAGE> 36 of 50
<TABLE>
<CAPTION>
CONTENTS
<S> <C>
----------------------------------------------------------------------------
INDEPENDENT AUDITOR'S REPORT
ON THE FINANCIAL STATEMENTS 1
----------------------------------------------------------------------------
FINANCIAL STATEMENTS
Statements of net assets available for benefits 2
Statements of changes in net assets available for benefits 3 and 4
Notes to financial statements 5 - 9
----------------------------------------------------------------------------
SUPPLEMENTARY INFORMATION
Schedule of assets held for investment purposes at end of year 10
Schedule of reportable transactions 11
Party in interest transactions 12
----------------------------------------------------------------------------
</TABLE>
<PAGE> 37 of 50
INDEPENDENT AUDITOR'S REPORT
To the Administrative Committee and Participants
FIRST BUSEY CORPORATION EMPLOYEES'
STOCK OWNERSHIP PLAN
Urbana, Illinois
We have audited the accompanying statements of net assets available for benefits
of FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN as of December 31,
1999 and 1998, and the related statements of changes in net assets available for
benefits for each of the years in the three-year period ended December 31, 1999.
These financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of FIRST BUSEY
CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN as of December 31, 1999 and 1998,
and the changes in net assets available for benefits for each of the years in
the three-year period ended December 31, 1999, in conformity with generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary schedules of assets
held for investment purposes, reportable transactions and party in interest
transactions are presented for purposes of additional analysis and are not a
required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
Champaign, Illinois
April 25, 2000
1
<PAGE> 38 of 50
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1999 AND 1998
-------------------------------------------------------------------------------
1999 1998
------------------------------------------------------------------------------
ALLOCATED UNALLOCATED TOTAL Allocated Unallocated Total
------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash $ - $ - $ - $ 3,383 $ - $ 3,383
Money market
fund 36,684 - 36,684 26,501 - 26,501
Accounts
receivable 107 - 107 91 - 91
Investments in
First Busey
Corporation
common
stock, at
fair value 18,803,434 2,715,000 21,518,434 14,566,688 1,173,207 15,739,895
------------------------------------------------------------------------------
TOTAL ASSETS 18,840,225 2,715,000 21,555,225 14,596,663 1,173,207 15,769,870
------------------------------------------------------------------------------
LIABILITIES
Notes payable - 2,620,000 2,620,000 - 400,000 400,000
------------------------------------------------------------------------------
TOTAL LIABILITIES - 2,620,000 2,620,000 - 400,000 400,000
------------------------------------------------------------------------------
NET ASSETS
AVAILABLE
FOR PLAN
BENEFITS $18,840,225 $ 95,000 $18,935,225 $14,596,663 $ 773,207 $15,369,870
==============================================================================
<FN>
See Notes to Financial Statements.
</TABLE>
2
<PAGE> 39 of 50
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEARS ENDED DECEMBER 31, 1999, 1998 AND 1997
-------------------------------------------------------------------------------
1999
---------------------------------------
Allocated Unallocated Total
---------------------------------------
<S> <C> <C> <C>
Investment income:
Net change in unrealized appreciation in fair
value of investments $ 3,443,525 $ 173,748 $ 3,617,273
Interest 1,669 - 1,669
Dividends 376,297 - 376,297
Employer contributions 80,000 150,000 230,000
Allocation of First Busey Corporation
common stock, at fair value
1999 - 44,285 shares 1,001,955 - 1,001,955
1998 - 44,286 shares - - -
1997 - 59,048 shares - - -
---------------------------------------
TOTAL ADDITIONS 4,903,446 323,748 5,227,194
---------------------------------------
Interest expense 50,417 - 50,417
Administrative expenses 54,000 - 54,000
Distributions to participants
Cash 590 - 590
Stock 1999 - 11,369 shares 207,484 - 207,484
Stock 1998 - 17,816 shares - - -
Stock 1997 - 21,264 shares - - -
Dividend distributions to participants 347,393 - 347,393
Allocation of First Busey Corporation
common stock, at market value
1999 - 44,285 shares - 1,001,955 1,001,955
1998 - 44,286 shares - - -
1997 - 59,048 shares - - -
---------------------------------------
TOTAL DEDUCTIONS 659,884 1,001,955 1,661,839
---------------------------------------
NET INCREASE (DECREASE) 4,243,562 (678,207) 3,565,355
Net assets available for benefits:
Beginning of year 14,596,663 773,207 15,369,870
---------------------------------------
End of year $18,840,225 $ 95,000 $18,935,225
=======================================
<FN>
See Notes to Financial Statements.
</FN>
3
<PAGE> 40 of 50
<CAPTION>
-------------------------------------------------------------------------------
1998 1997
--------------------------------------------------------------------------------
Allocated Unallocated Total Allocated Unallocated Total
<S> --------------------------------------------------------------------------------
Investment income: <C> <C> <C> <C> <C> <C>
Net change in unrealized appreciation in fair
value of investments $ 3,392,511 $ 488,559 $ 3,881,070 $ 1,870,721 $ 412,503 $ 2,283,224
Interest 554 - 554 986 - 986
Dividends 338,572 - 338,572 305,307 - 305,307
Employer contributions 96,000 150,000 246,000 48,515 200,000 248,515
Allocation of First Busey Corporation
common stock, at fair value
1999 - 44,285 shares - - - - - -
1998 - 44,286 shares 808,220 - 808,220 - - -
1997 - 59,048 shares - - - 811,910 - 811,910
--------------------------------------------------------------------------------
TOTAL ADDITIONS 4,635,857 638,559 5,274,416 3,037,439 612,503 3,649,942
--------------------------------------------------------------------------------
Interest expense 39,561 - 39,561 42,389 - 42,389
Administrative expenses 75,829 - 75,829 58,521 - 58,521
Distributions to participants
Cash 878 - 878 531 - 531
Stock 1999 - 11,369 shares - - - - - -
Stock 1998 - 17,816 shares 244,970 - 244,970 - - -
Stock 1997 - 21,264 shares - - - 236,562 - 236,562
Dividend distributions to participants 293,959 - 293,959 248,889 - 248,889
Allocation of First Busey Corporation
common stock, at market value
1999 - 44,285 shares - - - - - -
1998 - 44,286 shares - 808,220 808,220 - - -
1997 - 59,048 shares - - - - 811,910 811,910
--------------------------------------------------------------------------------
TOTAL DEDUCTIONS 655,197 808,220 1,463,417 586,892 811,910 1,398,802
--------------------------------------------------------------------------------
NET INCREASE (DECREASE) 3,980,660 (169,661) 3,810,999 2,450,547 (199,407) 2,251,140
Net assets available for benefits:
Beginning of year 10,616,003 942,868 11,558,871 8,165,456 1,142,275 9,307,731
--------------------------------------------------------------------------------
End of year $14,596,663 $ 773,207 $15,369,870 $10,616,003 $ 942,868 $11,558,871
================================================================================
</TABLE>
4
<PAGE> 41 of 50
FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
PLAN DESCRIPTION AND BASIS OF PRESENTATION
The following description of the Plan provides only general information.
Participants should refer to the Plan agreement for a more complete description
of the Plan's provisions.
General:
First Busey Corporation (the Company) established the First Busey
Corporation Employees' Stock Ownership Plan (the Plan) effective as of
January 1, 1984. The Plan operates as a leveraged employee stock ownership
plan (ESOP), and is designed to comply with Section 4975(e)(7) and the
regulations thereunder of the Internal Revenue Code of 1986, as amended
(the Code), and is subject to the applicable provisions of the Employee
Retirement Income Security Act of 1974, as amended (ERISA). The Plan is a
multiple-employer stock ownership plan and is administered by the Company.
First Busey Trust & Investment Co., a subsidiary of the Company, is the
Plan's Trustee.
The Plan purchased Company common shares using the proceeds of bank
borrowings guaranteed by the Company, and holds the stock in a trust
established under the Plan. The borrowings are to be repaid by fully
deductible Company contributions to the trust fund. As the Plan makes each
payment of principal, an appropriate percentage of stock will be allocated
to eligible employees' accounts in accordance with applicable regulations
under the Code.
The bank borrowings are collateralized by the unallocated shares of
stock and are guaranteed by the Company. The lender has no rights against
shares once they are allocated under the ESOP. Accordingly, the financial
statements of the Plan for the years 1999 and 1998 present separately the
assets and liabilities and changes therein pertaining to:
(a) the accounts of employees with vested rights in allocated
stock (Allocated) and
(b) stock not yet allocated to employees (Unallocated).
The Plan covers all full-time employees of the Company and its
participating subsidiaries who have completed one year of service.
Participants who do not work full-time or are not employed on the last
working day of a Plan year are not eligible for an allocation of Company
contributions for such year.
No distributions from the Plan will be made until a participant retires,
dies (in which case, payment shall be made to his or her beneficiary or, if
none, his or her legal representatives), or otherwise terminates employment
with the Company. Distributions are made in cash or, if a participant
elects, in the form of Company common stock plus cash for any fractional
share.
Each participant is entitled to exercise voting rights attributable to
the shares allocated to his or her account and is notified by the Trustee
prior to the time that such rights are to be exercised. The Trustee is not
permitted to vote any share for which instructions have not been given by a
participant.
5
<PAGE> 42 of 50
FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
THE COMPANY RESERVES THE RIGHT TO TERMINATE THE PLAN AT ANY TIME, SUBJECT
TO PLAN PROVISIONS. UPON SUCH TERMINATION OF THE PLAN, THE INTEREST OF EACH
PARTICIPANT IN THE TRUST FUND WILL BE DISTRIBUTED TO SUCH PARTICIPANT OR HIS OR
HER BENEFICIARY AT THE TIME PRESCRIBED BY THE PLAN TERMS AND THE CODE. UPON
TERMINATION OF THE PLAN, THE EMPLOYEE BENEFITS COMMITTEE SHALL DIRECT THE
TRUSTEE TO PAY ALL LIABILITIES AND EXPENSES OF THE TRUST FUND AND TO SELL SHARES
OF FINANCED STOCK HELD IN THE LOAN SUSPENSE ACCOUNT TO THE EXTENT IT DETERMINES
SUCH SALE TO BE NECESSARY IN ORDER TO REPAY THE LOAN.
Participants' accounts:
Each participant's account is credited with an allocation of (a) the
employer contributions, (b) the Plan's net earnings and (c) forfeitures of
terminated participant's non-vested accounts.
Allocations of common stock released and forfeitures are based on the
eligible compensation of each participant. Allocations of the Plan's net
earnings are based on participant account balances. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's account.
Vesting:
Vesting in the participants' accounts is based on years of continuous
service. A participant is 100 percent vested after seven years of credited
service.
Payment of benefits:
Upon termination of service, a participant may elect to receive either
a lump-sum amount equal to the value of his or her account, or in
installments over a period not longer than the life expectancy of the
participant.
Dividends:
Dividends on common stock allocated to participants' accounts are
distributed directly to the participant so that the dividends result in
income tax deductions for First Busey Corporation.
Dividends on common stock not allocated to participants' accounts are
distributed directly to the Plan to offset interest and administrative
expenses.
Stock split:
The Board of Directors of First Busey Corporation approved a two-for-one
stock split for stockholders of record on August 3, 1998. All share
amounts in the financial statements have been restated to reflect the stock
split.
6
<PAGE> 43 of 50
FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
Plan termination:
Although it has not expressed any intent to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan subject to the provisions of ERISA. In the event of
plan termination, participants would become 100 percent vested in their
accounts. Presently, there is no intention on the part of the Company to
terminate the Plan or to discontinue contributions to the Trust.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of accounting:
The financial statements of the Plan are prepared under the accrual method
of accounting.
Use of estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
Investment valuation and income recognition:
The common stock of the Company is valued at fair value. Prior to October,
1998, the Company's common stock was traded in the over-the-counter (OTC)
market. Fair value was determined by the last reported sales price at the
valuation date. Since October, 1998, the Company's common stock is traded
on the NASDAQ. Fair value of the common stock is determined by quoted
market prices.
Dividend income is accrued on the ex-dividend date.
Purchases and sales of securities are recorded on a trade-date basis.
Realized gains and losses from security transactions are reported on the
specific identification cost method.
EMPLOYER CONTRIBUTIONS
The Company is obligated to make contributions in cash to the Plan equal to the
amount necessary to enable the Plan to make its regularly scheduled payments of
principal and interest due on its debt discussed in Note 6.
The Company may also make discretionary contributions in cash to the Plan. The
Company made a discretionary contribution of $80,000, $96,000 and $48,515 for
the Plan years ended December 31, 1999, 1998 and 1997, respectively.
7
<PAGE> 44 of 50
FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
ADMINISTRATION OF PLAN ASSETS
The Plan's assets, which consist principally of First Busey Corporation common
stock, are held by the Trustee of the Plan.
Company contributions are held and managed by the Trustee, which invests cash
received, interest, and dividend income and makes distributions to participants.
The Trustee also administers the payment of interest and principal on the loan,
which is reimbursed to the Trustee through contributions as determined by the
Company.
Certain administrative functions are performed by officers or employees of the
Company or its subsidiaries. No such officer or employee receives compensation
from the Plan. Administrative expenses for the Trustee's fees are paid directly
by the Plan.
INVESTMENT
The Plan's investment consists solely of First Busey Corporation common stock as
follows:
<TABLE>
<CAPTION>
December 31,
----------------------------------------------------
1999 1998
----------------------------------------------------
Allocated Unallocated Allocated Unallocated
----------------------------------------------------
<S> <C> <C> <C> <C>
Number of shares 831,091 120,000 798,175 64,285
====================================================
Cost $ 4,532,604 $ 654,456 $ 2,643,073 $ 212,877
====================================================
Fair value $18,803,434 $ 2,715,000 $14,566,688 $ 1,173,207
====================================================
</TABLE>
In November 1999, the Plan purchased 100,000 shares of First Busey Corporation
common stock from an employee/stockholder. The purchase of the stock was
financed from the proceeds of a note from American National Bank of Chicago.
8
<PAGE> 45 of 50
FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN
NOTES TO FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
NOTES PAYABLE
Notes payable consist of:
<TABLE>
<CAPTION>
<S> <C> <C>
1999 1998
--------------------
American National Bank of Chicago, due January 21, 2000 $2,370,000 $250,000
American National Bank of Chicago, due January 21, 2000 250,000 -
American National Bank of Chicago, due January 22, 1999 - 75,000
American National Bank of Chicago, due January 22, 1999 - 75,000
--------------------
$2,620,000 $400,000
====================
Shares of First Busey Corporation common stock
secured as collateral 120,000 64,285
====================
</TABLE>
As of December 31, 1999, the above notes payable had stated interest rates of
7.86% on the $2,370,000 note and 6.54% on the $250,000 note. The notes payable
were renewed on January 21, 2000, carry interest rates of LIBOR plus 140 basis
points, adjusted quarterly (7.86% at renewal), and have maturity dates of
January 21, 2001.
TAX STATUS
The Internal Revenue Service has determined and informed the Company by a letter
dated March 28, 1996, that the Plan is qualified and the trust established under
the Plan is tax-exempt, under the appropriate sections of the Code. The Plan
has been amended since receiving the determination letter. However, the Plan
administrator believes that the Plan is designed and is currently being operated
in compliance with the applicable requirements of the Code.
PARTY IN INTEREST TRANSACTIONS
Parties in interest include fiduciaries or employees of the plan, any person who
provides services to the plan, an employer whose employees are covered by the
plan, an employee organization whose members are covered by the plan, a person
who owns 50 percent or more of such an employer or employee association, or
relatives of such persons just listed.
Fees paid to First Busey Trust & Investment Co., the Plan's trustee, for
investment management services amounted to $31,320, $56,609 and $37,768 for each
of the years in the three year period ended December 31, 1999.
FORFEITED ACCOUNTS
For the year ending December 31, 1999, forfeited non-vested accounts totaled
$52,787. These accounts have been allocated to participants' accounts.
9
<PAGE> 46 of 50
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN
SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES AT END OF YEAR
DECEMBER 31, 1999
Number Current
Description of Shares Cost Value
------------------------------------------------------------------------
<S> <C> <C> <C>
First Busey Corporation common stock 951,091 $5,187,060 $21,518,434
=======================
</TABLE>
10
<PAGE> 47 of 50
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1999
Current
Expenses Value of
Incurred Asset on
Identity of Description Purchase Selling Lease with Cost of Transaction Net Gain
Party Involved of Asset Price Price Rental Transaction Asset Date or Loss
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
First Busey Corporation 100,000
shares of
common
stock $2,368,750 $ - $ - $ 4,000 $2,372,750 $ 2,368,750 $ -
</TABLE>
11
<PAGE> 48 of 50
<TABLE>
<CAPTION>
FIRST BUSEY CORPORATION EMPLOYEES' STOCK OWNERSHIP PLAN
PARTY IN INTEREST TRANSACTIONS
YEAR ENDED DECEMBER 31, 1999
Transaction
Description of Transaction Amount
------------------------------------------------------------------------
<S> <C>
Management fees paid to First Busey Trust & Investment Co. $ 31,320
============
Purchase of shares from an employee/stockholder $ 2,368,750
============
</TABLE>
12
<PAGE> 49 of 50
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Registration Statement on
Form S-8 (File No. 33-60402) under the Securities Act of 1933 of First Busey
Corporation of our report dated April 25, 2000 on our audits of the financial
statements of First Busey Corporation Employee Stock Ownership Plan as of
December 31, 1999 and 1998, and for each of the years in the three-year period
ended December 31, 1999 and supporting schedules as of December 31, 1999, which
is included in the Annual Report on Form 11-K for the year ended December 31,
1999.
McGLADREY & PULLEN, LLP
Champaign, Illinois
June 26, 2000
13
<PAGE> 50 of 50
