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Sep 30, 2022
First Busey Q3 2022 Earnings Report
First Busey reported third quarter net income and diluted EPS.
Key Takeaways
First Busey Corporation reported a net income of $35.7 million, or $0.64 per diluted common share, for the third quarter of 2022. Adjusted net income was $36.4 million, or $0.65 per diluted common share. The company experienced strong core loan growth and deposit growth during the quarter, with non-performing assets remaining low.
Net income for the third quarter of 2022 was $35.7 million, or $0.64 per diluted common share.
Adjusted net income for the third quarter of 2022 was $36.4 million, or $0.65 per diluted common share.
Core loan growth was $178.5 million, representing a 9.50% annualized growth rate.
Total deposit growth of $204.2 million, representing a 7.8% annualized growth rate.
First Busey
First Busey
First Busey Revenue by Segment
Revenue by Segment
Wealth management fees Revenue
CapyFin.com Forward Guidance
First Busey implemented a targeted restructuring and efficiency optimization plan expected to generate annual salary and benefits savings of $4.0 million to $4.4 million. The company expects to incur one-time severance-related costs of $1.1 million to $1.3 million, with most of the savings reinvested to support ongoing growth initiatives.
Positive Outlook
- Expected annual salary and benefits savings of $4.0 million to $4.4 million.
- Reinvestment of savings to support ongoing growth initiatives.
- Focus on expense discipline.
- Strategic investments in FirsTech to enhance future growth.
- ALCO model predicts a 100 basis point parallel rate shock is expected to increase net interest income by 4.6% over the subsequent twelve-month period.
Challenges Ahead
- One-time severance-related costs of $1.1 million to $1.3 million.
- Market competition for deposits has started to increase and deposits betas are likely to increase going forward.
- The third quarter impact of the Durbin Amendment was a $2.4 million reduction in fee income.
- Wealth management fees decreased due to declines in market valuations.
- Decline in tangible book value per common share is primarily attributable to the fair market valuation adjustment of the Company’s securities portfolio as a result of the rapidly rising rate environment as reflected in the accumulated other comprehensive income (loss) (AOCI) component of shareholder’s equity, net of retained earnings and amortization of intangible assets over the same period.