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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.
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 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.
- The Company's funding base is projected to increase total deposit cost of funds during the second quarter of 2025.
- The effective blended state tax rate is expected to be lowered in future periods, but created a negative adjustment to deferred tax asset in the current period.
- The ability to successfully manage liquidity risk may increase dependence on non-core funding sources such as brokered deposits, potentially negatively impacting Busey's cost of funds.