From GlobeNewswire: 2025-01-28 17:00:00

First Busey Corporation reported a net income of $28.1 million and diluted EPS of $0.49 for the fourth quarter of 2024. Adjusted net income was $30.7 million, with record high revenue of $17.0 million for the Wealth Management segment. Tangible book value per common share increased by 7.6% year-over-year.

For the full year 2024, net income and adjusted net income were $113.7 million and $119.8 million, respectively. Pre-provision net revenue was $38.8 million for the fourth quarter, and noninterest income was $35.2 million. Wealth management fees contributed significantly to noninterest income.

Busey views non-operating items like acquisition-related expenses as adjustments to net income. Noninterest expense was $78.2 million in the fourth quarter of 2024. The company believes its non-GAAP measures provide a clearer assessment of financial results. The focus remains on managing expenses and operating efficiency. Busey’s adjusted core expenses rose to $72.6 million in Q4 2024 due to the M&M acquisition and inflation. Quarterly pre-tax savings from the merger are expected to reach $1.6-1.7 million when fully realized, with 86% already achieved. A partnership with CrossFirst will create a bank with $20 billion in assets across 10 states.

CrossFirst will merge with Busey, resulting in shareholders owning 63.5% of the combined company. Regulatory approval has been obtained, with the merger set to close on March 1, 2025. The merger will incur one-time expenses of $2.4 million in Q4 2024. Busey’s conservative banking strategy remains unchanged.

Busey’s deposit franchise is strong, with core deposits making up 96.5% of total deposits. Non-performing assets increased to $23.3 million in Q4 2024, with a $1.3 million provision for credit losses. The bank’s capital ratios remain robust, providing a buffer of over $610 million above required levels for well-capitalized designation. Busey’s tangible book value per common share was $17.88 at December 31, 2024, up 7.6% from the previous year. They paid a $0.24 dividend per common share in Q4. Offering small businesses up to $10,000 in Express Microloans at a 4.99% interest rate, Busey originated over 100 loans in 60 days to support small business needs.

As Busey looks forward to 2025, they anticipate strong growth and profitability. The pending CrossFirst transaction aligns with their acquisition strategy. They credit their success to their talented team, loyal customers, and supportive stockholders. Key financial figures include net income of $28,105 in Q4 and a return on average assets of 0.93%.

Busey’s balance sheet strength remains solid, with total assets at $12.05 billion as of December 31, 2024. Portfolio loans were $7.70 billion, impacting loan growth as they maintain a conservative underwriting approach. Total deposits were $9.98 billion, with core deposits accounting for 96.5% of the total. Average interest-earning assets were $11.05 billion in Q4. In the fourth quarter of 2024, Busey Bank’s cost of deposits decreased to 1.75%, with a 1.38% cost excluding time deposits. Spot rates on total deposit costs also decreased to 1.67%. The bank had no short term borrowings, with $6.19 billion in available liquidity. Savings account specials are being offered to attract customers.

Credit quality remains strong for Busey Bank, with loans 30-89 days past due at $8.1 million in December 2024. Non-performing loans increased to $23.2 million, impacting non-performing assets and classified assets. Net charge-offs were $2.9 million for the quarter. The bank maintains a diversified loan portfolio and limits concentration exposure.

Busey Bank’s net interest margin was 2.95% in Q4 2024, with net interest income at $81.6 million. The Federal Open Market Committee lowered rates by 100 basis points in September 2024, prompting the bank to adjust its funding structures. The bank intentionally priced savings specials to transition maturing CD balances. Busey began lowering rates on special priced deposit accounts in September to benefit from FOMC rate cuts. Approximately 7% of deposit portfolio is immediately repriced with rate cuts. CD balances make up 15% of total deposit funding. Non-maturity deposits at rack rates with average rate of 0.01%. Net interest margin decreased by 7 basis points in Q4 2024.

Busey expects a +100 basis point rate shock to increase net interest income by 2.0% over the next twelve months. The bank is evaluating off-balance sheet hedging and balance sheet restructuring strategies to stabilize net interest income in lower rate environments. Interest-bearing non-maturity deposit cost of funds has decreased by 18 basis points during the current easing cycle.

Noninterest income for Busey in Q4 2024 was $35.2 million, with wealth management fees totaling $16.8 million. Wealth Management segment saw a 22.7% increase in revenue compared to Q4 2023, marking a new record high. Portfolio management team focuses on long-term returns and risk management in volatile markets.

Payment technology solutions revenue was $5.1 million in Q4 2024, with FirsTech segment generating $5.4 million in revenue. Wealth management fees, wealth management referral income, and payment technology solutions represented 62.3% of noninterest income for the quarter. Fees for customer services totaled $7.9 million.

Noninterest expense for Busey was $78.2 million in Q4 2024, compared to $75.9 million in Q3 2024 and $75.0 million in Q4 2023. Operating efficiency is a key focus for the bank as it navigates changing interest rate environments and market conditions. Busey’s efficiency ratio for Q4 2024 was 64.5%, with adjusted core expenses at $72.6 million. Noteworthy components of noninterest expenses include salaries, wages, and employee benefits, professional fees, and data processing expenses. The effective tax rate for Q4 2024 was 24.8%, lower than the statutory rate due to tax-exempt interest income. Busey’s strong capital levels led to a 4.2% increase in quarterly dividends.

Busey exceeded capital adequacy requirements, with a Common Equity Tier 1 ratio of 14.10% and Total Capital to Risk Weighted Assets ratio of 18.53% as of December 31, 2024. Tangible common equity was $1.02 billion, representing 8.76% of tangible assets. Tangible book value per common share was $17.88, reflecting a 7.6% year-over-year increase. First Busey Corporation’s financial ratios were impacted by fair value adjustments to the securities portfolio, reflected in accumulated other comprehensive income. The Q4 2024 Earnings Investor Presentation offers more information on the company’s financial condition. As of December 31, 2024, Busey Bank, a subsidiary, had total assets of $12.01 billion.

Busey Bank, headquartered in Champaign, Illinois, operates 62 banking centers across different markets. Through its Wealth Management division, the company offers various asset management and investment services, with assets under care totaling $13.83 billion. The bank’s subsidiary, FirsTech, specializes in payment technology solutions for businesses and financial institutions.

Forbes recognized Busey as one of the World’s Best Banks for 2024 and among America’s Best Banks. The bank has also been named one of the Best Banks to Work For by various publications. Busey prioritizes integrity, community development, and employee engagement. Non-GAAP financial information is provided to aid in understanding Busey’s performance compared to peers. The non-GAAP financial measures for net revenue show strong performance for the three months ended December 31, 2024, with adjusted pre-provision net revenue at $41,958. Adjusted net income for the same period was $30,725, resulting in adjusted diluted earnings per common share of $0.53. The bank’s return on average tangible common equity was reported at 10.86%.

Further adjustments to net income and earnings were made, resulting in further adjusted net income of $30,872 for the three months ended December 31, 2024. Adjusted diluted earnings per common share, excluding one-time deferred tax valuation adjustment, was $0.53. Adjusted return on average tangible common equity stood at 11.87%.

Tax-equivalent net interest income for the three months ended December 31, 2024, was $82,024, with an adjusted net interest margin of 2.92%. Adjusted noninterest income was $35,417, leading to an adjusted efficiency ratio of 61.40%. Operating revenue was reported at $116,995 for the same period.

Tangible book value as of December 31, 2024, was $1,017,294, resulting in a tangible book value per common share of $17.88. The bank’s tangible common equity to tangible assets ratio stood at 8.76% for the same period.

Core deposits for the bank as of December 31, 2024, totaled $9,634,897, with core deposits accounting for 96.52% of total deposits. The ratio of portfolio loans to core deposits was reported at 79.89%. The bank’s forward-looking statements indicate a positive outlook for future performance and business operations. Busey’s management makes forward-looking statements using expressions like “believe” and “expect.” Factors beyond Busey’s control could impact actual results, including the proposed CrossFirst transaction. Risks include potential failure to close, economic factors, regulatory changes, and cybersecurity threats. Investors should consider these risks when evaluating Busey’s financial statements.

Additional information about Busey, including factors that could affect financial results, can be found in filings with the Securities and Exchange Commission. Non-GAAP financial measures, estimated uninsured deposits, central business district areas, and on- and off-balance sheet liquidity are important considerations. Capital amounts for the fourth quarter of 2024 are subject to change, and the blended benchmark includes MSCI and Bloomberg indices.



Read more at GlobeNewswire:: First Busey Corporation Announces 2024 Fourth Quarter