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Dec 31, 2020
First Busey Q4 2020 Earnings Report
First Busey's financial performance remained stable with slight decrease in net income and earnings per share compared to the previous quarter, but adjusted net income and adjusted earnings per share increased. The company focused on optimizing operating efficiency through banking center closures and navigating the economic environment caused by COVID-19 effectively.
Key Takeaways
First Busey Corporation reported a net income of $28.3 million, or $0.52 per diluted common share, for Q4 2020. Adjusted net income was $34.3 million, or $0.62 per diluted common share. The company closed 12 banking centers, generating cost savings, and managed the economic impacts of COVID-19, including originating $749.4 million in PPP loans.
Net income for the fourth quarter of 2020 was $28.3 million, or $0.52 per diluted common share.
Adjusted net income for the fourth quarter of 2020 was $34.3 million, or $0.62 per diluted common share.
The company closed 12 banking centers on October 23, 2020, as part of efforts to optimize operating efficiency and balance physical and digital banking services.
First Busey originated a total of $749.4 million in PPP loans, assisting new and existing business clients.
Revenue by Segment
Forward Guidance
The Company expects negative impacts of COVID-19 to continue in future quarters as the course of the economic recovery remains unclear. The Company expects the CAC transaction and continued efforts to lead to attractive financial returns in future periods.
Positive Outlook
- The company is actively assisting customers under the extended PPP programs.
- First Busey's goal of being a strong community bank for the communities it serves begins with outstanding associates.
- The pending CAC transaction fits with our acquisition strategy as the addition of GSB will grow the Company’s current geographic footprint, allowing the Company to serve customers by expanding in the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area and significantly adding to the Company’s wealth management business.
- We are excited to welcome our CAC colleagues into the Busey family and feel confident that this transaction and our continued efforts will lead to attractive financial returns in future periods.
- The Company will be provided relief under this rule with respect to the interchange revenue impacts of the Durbin Amendment.
Challenges Ahead
- These negative impacts may include further margin compression.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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