Sign in

You're signed outSign in or to get full access.

FB

FIRST BUSEY CORP /NV/ (BUSE)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 was dominated by one-month consolidation of CrossFirst (closed Mar 1), resulting in GAAP net loss of $(30.0)M and diluted EPS of $(0.44), while core performance was strong with adjusted net income of $39.9M and adjusted diluted EPS of $0.57 .
  • Net interest margin expanded 21 bps to 3.16% (3.08% adj.), aided by higher loan yields and purchase accounting accretion; management projects further NIM expansion in Q2 2025 to 3.40%+ .
  • Wall Street EPS consensus for Q1 2025 was $0.53*, and BUSE delivered $0.57 adjusted EPS (beat +$0.04); revenue (operating revenue, non-GAAP) was $140.72M vs $140.77M* consensus, a slight beat (+$0.57M) [InternetSearch: https://www.marketbeat.com/earnings/reports/2025-4-22-first-busey-co-stock/].
  • Integration and balance sheet actions (securities repositioning, brokered deposit run-off) reset the baseline; management reiterated ~$25M annual noninterest expense synergies (50% realized in 2025; 100% in 2026) and guided total deposit cost to 2.00–2.15% for the remainder of 2025 .
  • Catalysts: positive estimate beat (adjusted metrics), projected NIM expansion in Q2, and accretive depositary share offering of $207.5M net in May supporting capital and preferred dividend obligations .

What Went Well and What Went Wrong

  • What Went Well

    • Adjusted earnings power strengthened: adjusted net income rose to $39.9M and adjusted PPNR to $54.7M, with adjusted ROAA at 1.09% and adjusted ROATCE at 10.64% .
    • NIM expansion and revenue mix: net interest margin increased to 3.16% with clear drivers (+36 bps from loan yields, +5 bps purchase accounting), while adjusted noninterest income grew 9.4% YoY to $36.99M; Wealth Management posted record quarterly revenue ($17.36M) on $13.68B AUC .
    • Liquidity and capital resilience: available on- and off-balance sheet liquidity totaled $8.55B; CET1 estimated 11.99% and TCE/TA 8.83% despite acquisition deployment; tangible book value per share rose to $18.62 .

  • What Went Wrong

    • GAAP loss from non-core items: $42.4M Day-2 ACL on non-PCD loans, $26.0M acquisition/restructuring, $15.8M securities losses, and a $4.6M one-time tax valuation adjustment drove GAAP net loss of $(29.99)M .
    • Credit metrics stepped up with CrossFirst consolidation: NPLs increased to $54.7M (0.39% of loans) and NPAs to $59.5M (0.31% of assets), largely from acquired credits; net charge-offs rose to $31.4M, including $29.6M in fully reserved PCD loan charge-offs .
    • Deposit cost pressure: total deposit cost rose to 1.91% (from 1.75%), with management expecting higher costs in Q2 before normalization as wholesale funding is reduced; non-maturity deposit costs 1.82% spot at 3/31/25 .

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Operating Revenue (Non-GAAP) ($USD Millions)$109.68 $116.99 $140.72
Net Interest Income (GAAP) ($USD Millions)$75.85 $81.58 $103.73
Total Noninterest Income (GAAP) ($USD Millions)$34.91 $35.22 $21.22
Provision for Credit Losses ($USD Millions)$5.04 $1.27 $42.45
Diluted EPS (GAAP) ($USD)$0.46 $0.49 $(0.44)
Adjusted Diluted EPS (Non-GAAP) ($USD)$0.46 $0.53 $0.57
Net Interest Margin (%)2.79% 2.95% 3.16%
Adjusted Net Interest Margin (%)2.78% 2.92% 3.08%
Efficiency Ratio (Non-GAAP) (%)58.13% 64.45% 79.35%
Adjusted Efficiency Ratio (%)62.32% 61.79% 58.70%
Pre-Provision Net Revenue (PPNR) ($USD Millions)$46.37 $38.83 $25.55
Adjusted PPNR ($USD Millions)$38.64 $41.96 $54.72
ROAA (GAAP, annualized) (%)0.88% 0.93% (0.82)%
Adjusted ROAA (annualized) (%)0.86% 1.02% 1.09%
ROATCE (GAAP, annualized) (%)11.43% 10.86% (7.99)%
Adjusted ROATCE (annualized) (%)11.21% 11.93% 10.64%

Segment/Noninterest Income Breakdown ($USD Thousands)

ComponentQ1 2024Q4 2024Q1 2025
Wealth Management Fees$15,549 $16,786 $17,364
Fees for Customer Services$7,056 $7,911 $8,128
Payment Technology Solutions$5,709 $5,094 $5,073
Mortgage Revenue$746 $496 $329
Income on BOLI$1,419 $1,080 $1,446
Other Noninterest Income$3,344 $4,050 $4,651
Net Securities Gains (Losses)$(6,375) $(196) $(15,768)
Total Noninterest Income (GAAP)$34,913 $35,221 $21,223

KPIs and Balance Sheet

KPIQ1 2024Q4 2024Q1 2025
Portfolio Loans ($USD Millions)$7,588 $7,697 $13,868
Total Deposits ($USD Millions)$9,960 $9,982 $16,459
Core Deposits (% of total)96.66% 96.52% 89.73%
Cost of Total Deposits (%)1.75% 1.75% 1.91%
AUC – Wealth ($USD Billions)$12.76 $13.83 $13.68
NPLs / Loans (%)0.23% 0.30% 0.39%
NPAs / Total Assets (%)0.15% 0.19% 0.31%
ACL / Loans (%)1.21% 1.08% 1.41%
CET1 ratio (est.) (%)13.45% 14.10% 11.99%
TCE / TA (%)8.07% 8.71% 8.83%
Liquidity (available) ($USD Billions)——$8.55

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Deposit Cost of FundsFY 2025 (remaining quarters)N/A2.00–2.15%New
Net Interest Margin (NIM)Q2 2025N/A3.40%+New
ALCO +100 bps Shock to NII (Year 1)Rolling 12 months+2.0% (Q4 2024) +1.8% (Q1 2025)Lowered
CrossFirst Synergies (pre-tax NIE)2025–2026~$25M annual; 50% 2025; 100% 2026MaintainedMaintained
Brokered CD Run-off2025N/A~60% 2Q, ~30% 3Q, ~10% 4QNew
Bank Merger & Core ConversionJun 20, 2025N/AOccurs Jun 20, 2025New
Quarterly Common DividendOngoing$0.24 (prior)$0.25Raised
Share Repurchase2025N/A220,000 shares; $4.8M at $21.98 avgNew

Earnings Call Themes & Trends

Note: A Q1 2025 earnings call transcript was not available in our document catalog or on the IR site; event materials included the press release and investor presentation [InternetSearch: https://ir.busey.com/news-events/event-calendar].

TopicPrevious Mentions (Q3 & Q4 2024)Current Period (Q1 2025)Trend
NIM trajectoryNIM at 2.95% in Q4; focus on asset mix and hedging NIM 3.16%; drivers quantified; guide to 3.40%+ in Q2 Improving
Deposit costs/betasCost ~1.75% in Q4; long-run beta ~50% Cost 1.91%; guide 2.00–2.15% near term; normalization to 45–50% betas Near-term higher, normalizing
Credit quality/CRELow NPAs; detailed CRE stress/metrics provided NPAs/NPLs up with CrossFirst; strong reserves; detailed CRE office exposure Mixed; reserves stronger
Fee diversification (Wealth/FirsTech)Wealth revenue momentum; FirsTech pipeline growth Record Wealth revenue/AUC; FirsTech steady with enterprise wins Positive
Capital actionsPrior securities repositioning in 4Q23/1Q24 Repositioned $203M legacy AFS; TBVPS $18.62; depositary shares in May Accretive rebalancing
M&A integrationM&M synergies near completion CrossFirst close; bank merger set; $25M synergies reaffirmed On track

Management Commentary

  • “The transformative partnership between Busey and CrossFirst takes our organization to new heights, combining our growing commercial bank with the power of Busey’s core deposit franchise, wealth management platform, and payment technology solutions at FirsTech, Inc.” — Van A. Dukeman, Chairman & CEO .
  • “Deposit betas increased… we project substantial NIM expansion during 2Q25.” .
  • “Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0 million. Busey anticipates a 50% rate of synergy realization in 2025 and 100% in 2026.” .

Q&A Highlights

  • Transcript was not available; no Q&A content provided by the company in accessible documents for Q1 2025 [InternetSearch: https://ir.busey.com/news-events/event-calendar].
  • Key areas likely addressed in discussion based on materials: deposit costs, NIM outlook, integration synergies/timeline, credit migration in acquired portfolios, and balance sheet repositioning plan .
  • Investor presentation provides clarity on NIM bridge, deposit run-off schedule, and ALCO shock sensitivities .

Estimates Context

  • EPS: Consensus mean $0.53* vs actual adjusted $0.57 (beat +$0.04) [InternetSearch: https://www.marketbeat.com/earnings/reports/2025-4-22-first-busey-co-stock/].
  • Revenue: Consensus mean $140.77M* vs operating revenue (non-GAAP) $140.72M (slight beat +$0.57M) [InternetSearch: https://www.marketbeat.com/earnings/reports/2025-4-22-first-busey-co-stock/].
  • Estimates table (S&P Global/Capital IQ):
MetricQ1 2025 ConsensusQ1 2025 Actual
Primary EPS Consensus Mean0.53*0.57
Revenue Consensus Mean ($USD Millions)140.77*140.72

Values marked with * were retrieved from S&P Global.

Key Takeaways for Investors

  • Core earnings power improved despite GAAP non-core charges: adjusted EPS and adjusted PPNR both up; NIM expansion and fee diversification underpin momentum .
  • Near-term headwind in deposit costs should moderate as brokered CDs run off and deposit betas normalize toward 45–50%; NIM guide to 3.40%+ is constructive for Q2 .
  • Credit metrics stepped up with acquired balances, but reserve coverage (ACL/NPLs 3.57x) and diversified CRE book with limited CBD office exposure provide buffers .
  • Integration milestones (bank merger 6/20/25) and ~$25M expense synergies are on track, with majority of savings out of the run-rate by year-end 2025 .
  • Capital/liquidity robust (CET1 ~12%, liquidity ~$8.6B) and TBVPS improved; May preferred depositary share offering adds capital flexibility .
  • Tactical repositioning of securities lifts NII by ~$7.1M annualized and adds ~4 bps to NIM, fully realized in Q2—supporting earnings trajectory .
  • Actionable: watch Q2 NIM delivery vs 3.40%+ guide, deposit cost trend vs 2.00–2.15% range, and progress on brokered run-off; monitor credit migration in acquired portfolios and CRE office exposures for further normalization .