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Jun 30, 2024
First Busey Q2 2024 Earnings Report
First Busey reported net income of $27.4 million and diluted EPS of $0.47.
Key Takeaways
First Busey Corporation announced second quarter earnings with a net income of $27.4 million, or $0.47 per diluted common share. The quarter was marked by an increase in net interest margin, solid noninterest income, and the finalization of the acquisition and integration of Merchants & Manufacturers Bank Corporation.
Adjusted net income was $29.0 million, or $0.50 per diluted common share.
Net interest margin increased by 24 basis points to 3.03% from the prior quarter.
Noninterest income was $33.8 million, with adjusted noninterest income of $33.9 million, representing 29.1% of operating revenue.
The acquisition of Merchants & Manufacturers Bank Corporation was finalized and integrated.
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 expects to manage expenses prudently and realize increased rates of M&M acquisition synergies during the second half of 2024.
Positive Outlook
- Anticipated quarterly pre-tax expense synergies from the M&M acquisition of $1.6 million to $1.7 million when fully realized.
- Projected quarterly run-rate savings to be achieved by the first quarter of 2025.
- Approximately 30% of the full quarterly savings achieved during the second quarter of 2024.
- Expectation to continue prudently managing expenses.
- Expectation to realize increased rates of M&M acquisition synergies during the second half of 2024.
Challenges Ahead
- Market competition for deposits continues.
- Lower cost deposits continue to rotate into higher beta products.
- 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.
- Capital amounts and ratios for the second quarter of 2024 are not yet finalized and are subject to change.