First Busey Corporation (Nasdaq: BUSE) reported 2025 fourth quarter earnings, with net income of $60.8 million and diluted EPS of $0.63. Return on average assets and return on average tangible common equity were 1.32% and 12.59%, respectively. The company saw improvements in profitability, net interest margin, and wealth management fee income.

Chairman, President, and CEO Van A. Dukeman highlighted strong performance and the successful merger with CrossFirst. Loan balances remained stable, deposits decreased due to strategic reduction of non-relationship funding. Capital and liquidity positions are robust for 2026. Michael J. Maddox has separated from the company, with Dukeman taking on additional roles.

Fourth quarter net income for First Busey Corporation was $60.8 million, or $0.63 per diluted common share, compared to $57.1 million in the previous quarter and $28.1 million in the same period last year. Full-year 2025 net income was $135.3 million, or $1.47 per diluted common share, with return on average assets at 0.76% and return on average tangible common equity at 7.48%.

Adjusted net income available to common stockholders for the fourth quarter of 2025 was $60.6 million, or $0.68 per diluted common share. Annualized adjusted return on average assets and return on average tangible common equity were 1.41% and 13.58%, respectively. Full-year 2025 adjusted net income was $215.1 million, or $2.53 per diluted common share. Busey’s adjusted return on average assets was 1.27%, and adjusted return on average tangible common equity was 12.83% in the fourth quarter of 2025. Pre-provision net revenue was $80.6 million, with a 1.75% return on average assets. Adjusted pre-provision net revenue was $85.4 million, with a 1.85% return on average assets.

Net interest income increased by $2.4 million in Q4 2025 due to rate cutting initiatives. Busey’s Asset Liability Management model predicts a 1.8% decrease in net interest income with a -100 basis point rate shock. Core deposit balances remained stable, and deposit cost of funds decreased from 2.15% to 1.91%.

Total noninterest income grew by 3.6% in Q4 2025, driven by wealth management fees and other income. For the full year, noninterest income increased by 7.4%, benefiting from the CrossFirst acquisition. Wealth management and other services contributed 66.9% of noninterest income in Q4 2025 and 69.3% for the full year.

Wealth management fees rose by 5.3% in Q4 2025 due to higher trust and farm management fees. Busey’s Wealth Management division managed $15.66 billion in assets at the end of Q4 2025. Overall, Busey’s diverse product offerings have led to steady growth in noninterest income. Busey’s portfolio management team has outperformed its benchmark over the last three and five years, focusing on long-term returns and risk management despite volatile markets. Noninterest income increased by $0.9 million in the third quarter of 2025, primarily from swap origination fees and loan fee income, partially offset by fluctuations in gains on private equity investments.

Total noninterest expense increased by 0.3% compared to the third quarter of 2025, with increases in other noninterest expenses. Noteworthy changes included a decline in salaries, wages, and employee benefits, while other noninterest expenses rose. The efficiency ratio for the fourth quarter of 2025 was 57.4%, showcasing Busey’s focus on managing expenses efficiently.

Busey’s effective tax rate decreased to 21.6% in the fourth quarter of 2025 from 26.1% in the third quarter. The full-year 2025 effective tax rate was 27.5%. The bank’s financial strength is underpinned by a conservative operating approach, guiding their future strategy.

The bank’s loan portfolio remains conservative, with a well-diversified mix of commercial and retail loans. Asset quality continues to be strong, with non-performing assets increasing slightly. The ratios for non-performing loans and assets remain healthy, showcasing Busey Bank’s prudent risk management practices. Busey reported non-performing assets at 0.32% of total assets as of December 31, 2025, a 13 basis point increase from the previous year. Classified assets rose by $13.5 million compared to September 30, 2025, and $89.2 million compared to December 31, 2024, largely due to PCD loans from the CrossFirst acquisition.

The allowance for credit losses stood at $174.0 million as of December 31, 2025, 3.25 times the non-performing loans balance, representing 1.28% of total portfolio loans outstanding. Busey’s net charge-offs and provisions for credit losses showed fluctuations over the years, with $55,910 million in net charge-offs for the year ended December 31, 2025.

Net charge-offs saw a slight decrease in the fourth quarter of 2025 compared to the previous quarter, but an increase from the same period in 2024. The provision expense in the fourth quarter included $4.5 million for PCD loans, with specific allocations for individual reserves.

Busey’s deposits as of December 31, 2025, totaled $14,905,958, with core deposits accounting for 93.7% of the total. The bank strategically reduced high-cost, non-relationship deposits in the fourth quarter by $180.0 million, excluding which deposits actually grew by $15.8 million.

Busey’s liquidity profile as of December 31, 2025, showed available sources of on- and off-balance sheet liquidity totaling $7.68 billion. The balance sheet liquidity was further supported by cash flows from short-duration securities, with an expected cash flow of $347.1 million for 2026.

Busey’s capital strength remained solid, with estimated regulatory capital ratios providing a buffer of over $830 million above required levels. Common equity Tier 1 capital to risk-weighted assets stood at 12.44% as of December 31, 2025, demonstrating strong capital foundations.

Busey paid dividends during the fourth quarter of 2025, with a cash dividend of $0.25 per common share and $20.00 per Series A Non-Cumulative Perpetual Preferred Stock. On January 30, 2026, the company will pay a cash dividend of $0.26 per common share, representing a 4% increase from the previous quarter.

Under its stock repurchase plan, Busey purchased 1,251,100 shares of its common stock in the fourth quarter of 2025 at a weighted average price of $23.84 per share. For the full year 2025, the company bought 3,063,100 shares at a weighted average price of $22.81 per share for a total of $69.9 million. As of December 31, 2025, Busey had 4,856,175 shares available for repurchase. First Busey Corporation, a $18.10 billion financial holding company, is headquartered in Leawood, Kansas. Busey Bank, a subsidiary, has $18.05 billion in assets and operates 79 banking centers in various markets.

Furthermore, Busey offers wealth management services with assets under care totaling $15.66 billion. FirsTech, a Busey Bank subsidiary, provides innovative payment technology solutions for businesses. Busey was named among Forbes’ America’s Best Banks and recognized for its financial services and community commitment.

Busey utilizes non-GAAP financial measures to assess its performance and make business decisions. The company provides reconciliations between non-GAAP and GAAP financial measures for clarity. Adjusted net income, average tangible common equity, and related ratios for the fourth quarter of 2025 are detailed in the financial information provided. Busey’s 2025 financials included a write-off of deferred tax assets and adjustments to net income calculations. Tax-equivalent net interest income for the year was $572,585, with a margin of 3.51%. Adjusted noninterest income was $160,745, leading to operating revenue of $730,354 and an efficiency ratio of 55.76%. Tangible common equity stood at $1,773,056.

Core deposits at Busey reached $13,959,611 in December 2025, representing 93.65% of total deposits. Forward-looking statements caution that actual results may differ due to factors beyond Busey’s control. Statements are based on management’s beliefs and information available at the time and are subject to change. Busey’s financial outlook is influenced by various factors such as economic strength, regulatory changes, geopolitical events, acquisitions, and technological advancements. Risks include interest rate fluctuations, competition, cybersecurity threats, climate change impacts, and liquidity management challenges. Investors should consider these factors when evaluating Busey’s performance. Additional details can be found in SEC filings.

Key financial metrics for Busey include annualized measures, non-GAAP financial data, and capital ratios as of December 31, 2025, which are subject to change. The blended benchmark consists of MSCI All Country World Index and Bloomberg Intermediate US Government/Credit Total Return Index. Estimated uninsured deposits exceed FDIC insurance limits. Liquidity includes various assets and borrowing sources.

For more information on Busey’s financial performance and risk factors, investors can contact Chief Financial Officer Christopher H.M. Chan at 913-647-9825. Stay informed about Busey’s market position and strategic initiatives by monitoring SEC filings and updates on financial metrics. Understanding these details is crucial for making informed investment decisions.

Read more at GlobeNewswire.: First Busey Corporation Announces 2025 Fourth Quarter