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First Busey Q1 2025 Earnings Report
First Busey Corporation reported a net loss in the first quarter of 2025, significantly impacted by the CrossFirst Bankshares acquisition, which reset the baseline for financial performance.
Key Takeaways
First Busey Corporation reported a net loss of $30.0 million, or $(0.44) per diluted common share, for the first quarter of 2025. This was primarily due to the transformative acquisition of CrossFirst Bankshares, Inc. on March 1, 2025, which included significant one-time acquisition-related expenses and provision for credit losses on acquired loans. Despite the net loss, adjusted net income, excluding non-GAAP adjustments, was $39.9 million, or $0.57 per diluted common share, indicating underlying operational strength.
The CrossFirst Bankshares, Inc. acquisition on March 1, 2025, significantly impacted first quarter results, leading to a reported net loss.
Net interest income increased to $103.7 million in Q1 2025, up from $81.6 million in Q4 2024 and $75.9 million in Q1 2024.
Total assets grew to $19.46 billion as of March 31, 2025, compared to $12.05 billion at December 31, 2024.
Adjusted diluted EPS was $0.57, reflecting a positive performance when excluding acquisition-related and other non-GAAP adjustments.
Revenue by Segment
Forward Guidance
Busey anticipates further net interest margin expansion in the second quarter of 2025, driven by growth in higher yielding earning assets and a reduction in non-core funding. Annual pre-tax expense synergy estimates from the CrossFirst acquisition remain on track at $25.0 million, with 50% realization in 2025 and 100% in 2026.
Positive Outlook
- Net interest income is expected to increase by 1.8% over the subsequent twelve-month period with a +100 basis point parallel rate shock.
- Further net interest margin expansion is projected for the second quarter of 2025.
- Growth in higher yielding earning assets is expected to offset increased cost of funds pressure.
- Annual pre-tax expense synergy estimates from the CrossFirst acquisition remain on track at $25.0 million.
- Busey anticipates a 50% rate of synergy realization in 2025 and 100% in 2026.
Challenges Ahead
- Total deposit cost of funds is projected to increase during the second quarter of 2025.
- Deposit betas increased with the higher mix of acquired indexed and wholesale deposits.
Historical Earnings Impact
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