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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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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