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Mar 31, 2024
First Busey Q1 2024 Earnings Report
First Busey's financial performance remained stable in the first quarter of 2024, with a slight increase in net income and strategic balance sheet repositioning.
Key Takeaways
First Busey Corporation reported a net income of $26.2 million, with diluted EPS of $0.46. The company executed a balance sheet repositioning expected to be both capital and earnings accretive. Adjusted noninterest income was $33.9 million, representing 30.9% of operating revenue. The acquisition of Merchants & Manufacturers Bank Corporation was finalized on April 1, 2024.
Net income was $26.2 million, with diluted EPS at $0.46.
Net interest margin increased by 5 basis points to 2.79%.
Adjusted noninterest income reached $33.9 million, 30.9% of operating revenue.
Merchants & Manufacturers Bank Corporation acquisition was completed on April 1, 2024.
First Busey
First Busey
First Busey Revenue by Segment
Revenue by Segment
Wealth management fees Revenue
CapyFin.comPayment technology solutions Revenue
CapyFin.comMortgage Revenue
CapyFin.comIncome on bank owned life insurance Revenue
CapyFin.comOther noninterest income Revenue
CapyFin.com Forward Guidance
Busey anticipates reinvesting proceeds into higher yielding organic growth opportunities. Increased net interest spread is expected to increase net interest income by approximately $3.3 million on an annualized basis and improve the net interest margin run rate by 3 basis points.
Positive Outlook
- Expected increase in net interest income by approximately $3.3 million on an annualized basis.
- Anticipated improvement in the net interest margin run rate by 3 basis points.
- Bolstered liquidity position and balance sheet flexibility.
- Strengthened capital position.
- Positive impact on consolidated stockholders’ equity and book value per share.
Challenges Ahead
- Market competition for deposits continues.
- Deposit betas are likely to rise marginally during the first half of 2024.
- Rising rates initially have a positive impact on net interest margin, as assets, in particular commercial loans, reprice more quickly and to a greater extent than liabilities.
- As deposit and funding costs increase in response to the tightening rate cycle, and we experience deposit migration into higher cost offerings and funding alternatives, some of the net interest margin expansion is reversed, which we began to experience in the first quarter of 2023.
- The ratios of tangible common equity to tangible assets and tangible book value per common share have been impacted by the fair market valuation adjustment of Busey’s securities portfolio as a result of the current rate environment, which is reflected in the accumulated other comprehensive income (loss) component of shareholder’s equity.