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