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Jun 30, 2022
First Busey Q2 2022 Earnings Report
Announced second quarter earnings, marked by strong core loan growth and a rise in net interest margin.
Key Takeaways
First Busey Corporation reported a net income of $29.8 million, or $0.53 per diluted common share, for the second quarter of 2022. The company experienced strong core loan growth and an increase in net interest margin, while maintaining strong credit quality and capital levels.
Net income for the second quarter of 2022 was $29.8 million, with a diluted EPS of $0.53.
Adjusted net income was $30.1 million, with an adjusted diluted EPS of $0.54.
Core loan growth reached $249.1 million, representing a 13.8% annualized growth rate.
Net interest margin increased by 23 basis points compared to the previous quarter.
Revenue by Segment
Forward Guidance
Beginning on July 1, 2022, we became subject to the Durbin Amendment of the Dodd-Frank Act. We expect a $4.3 million to $4.5 million reduction in noninterest income in the second half of 2022 and a reduction of $8.5 million to $9.0 million for the full year 2023.
Challenges Ahead
- Rising rates have a positive impact on net interest margin, as assets, in particular commercial loans, reprice more quickly and to a greater extent than liabilities.
- Future FOMC rate decisions are expected to continue to be a net positive to net interest margin.
- Market competition for deposits has started to increase and deposits betas are likely to increase going forward, which is factored into our ALCO model.
- The Durbin Amendment requires the Federal Reserve to establish a maximum permissible interchange fee for many types of debit transactions.
- We expect a $4.3 million to $4.5 million reduction in noninterest income in the second half of 2022 and a reduction of $8.5 million to $9.0 million for the full year 2023.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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