NASDAQ$BUSE

First Busey Corporation · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

First Busey's financial performance remained stable in the first quarter of 2024, with a slight increase in net income and strategic balance sheet repositioning.

First Busey Corporation reported a net income of $26.2 million, with diluted EPS of $0.46. The company executed a balance sheet repositioning expected to be both capital and earnings accretive. Adjusted noninterest income was $33.9 million, representing 30.9% of operating revenue. The acquisition of Merchants & Manufacturers Bank Corporation was finalized on April 1, 2024.

  • Net income was $26.2 million, with diluted EPS at $0.46.
  • Net interest margin increased by 5 basis points to 2.79%.
  • Adjusted noninterest income reached $33.9 million, 30.9% of operating revenue.
  • Merchants & Manufacturers Bank Corporation acquisition was completed on April 1, 2024.

Headline financials

Total Revenue

$111M

Previous: $118M-5.9%
EPS

$0.46

Previous: $0.65-29.2%
Net Interest Margin

2.8%

Previous: 3.1%-10.9%
ROAA

0.9%

Previous: 1.2%-27.9%
ROATCE

11.4%

Previous: 18.5%-38.1%
Efficiency Ratio

58.1%

Previous: 56.9%+2.1%
Adjusted Efficiency Ratio

62.3%

No prior period
TCE to Tangible Assets

8.1%

No prior period
Non-performing Loans %

0.2%

No prior period
NPA to Total Assets

0.1%

No prior period
NPA to Loans + Other NPA

0.2%

No prior period
Allowance for Loan Loss %

1.2%

No prior period
Coverage Ratio ACL/NPL

5.22

No prior period
Classified Assets/T1 Cap+Res

7.2%

No prior period
Core to Total Deposits

96.7%

No prior period
Capital Expenditures

-$1.37M

Previous: -$2.38M+42.6%
Free Cash Flow

$24.9M

Previous: $34.4M-27.7%
Net Income

$26.2M

Previous: $36.8M-28.7%
Operating Income

$40.4M

Previous: $77.6M-48.0%
Gross Profit

$105M

Previous: $116M-9.3%
Cash & Equivalents

$591M

Previous: $276M+114.5%
Total Assets

$11.9B

Previous: $12.3B-3.7%
Stock-Based Comp

$2.4M

Previous: $1.67M+44.0%

Revenue & EPS history

First Busey · Revenue · Quarterly

$111M

Q1 2024-5.9%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

First Busey · $14.4M total across 1 segment · Q3 2023

  • Wealth Mgmt Fees
    $14.4M+283.4%

Forward guidance

Busey anticipates reinvesting proceeds into higher yielding organic growth opportunities. Increased net interest spread is expected to increase net interest income by approximately $3.3 million on an annualized basis and improve the net interest margin run rate by 3 basis points.

Tailwinds

  • Expected increase in net interest income by approximately $3.3 million on an annualized basis.
  • Anticipated improvement in the net interest margin run rate by 3 basis points.
  • Bolstered liquidity position and balance sheet flexibility.
  • Strengthened capital position.
  • Positive impact on consolidated stockholders’ equity and book value per share.

Headwinds

  • Market competition for deposits continues.
  • Deposit betas are likely to rise marginally during the first half of 2024.
  • 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.
  • The ratios of tangible common equity to tangible assets and tangible book value per common share have been impacted by the fair market valuation adjustment of Busey’s securities portfolio as a result of the current rate environment, which is reflected in the accumulated other comprehensive income (loss) component of shareholder’s equity.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.7%

Avg return

Earnings day

-0.6%

Avg return

5 days after

+1.8%

Avg return

30 days after

37%

24 / 65 earnings

Positive

+10.7%

Q1 2020

Best reaction

-8.3%

Q2 2010

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-1.1%+3.2%
Q4 2025-2.5%+1.6%+1.2%
Q3 2025-3.1%-2.3%+1.3%
Q1 2025+3.3%+1.7%+5.0%
Q4 2024+1.9%+1.3%+2.3%
Q3 2024-0.4%-2.4%+8.4%
Q2 2024+0.0%+3.8%-5.2%
Q1 2024+1.0%-0.4%-0.3%
Q4 2023+0.5%+1.0%-4.5%
Q3 2023-2.9%+0.6%+11.4%
Q2 2023-0.7%-2.3%-7.5%
Q1 2023-4.4%-3.7%+1.3%
Q4 2022-6.0%-5.2%+1.9%
Q3 2022+3.0%+6.9%+8.5%
Q2 2022-1.5%-0.7%-3.9%
Q1 2022-4.5%-5.4%-3.0%
Q4 2021-1.2%-2.5%-4.3%
Q3 2021-5.5%-3.2%+7.1%
Q2 2021+1.8%+2.6%+2.1%
Q1 2021-1.3%-1.1%+5.3%
Q4 2020-7.4%-9.6%+2.8%
Q3 2020-5.3%-2.8%+15.1%
Q2 2020+5.4%+1.0%+6.5%
Q1 2020+10.7%+2.3%+6.4%
Q4 2019-2.6%-4.4%-14.8%
Q3 2019+2.8%+2.5%+4.4%
Q2 2019+3.1%+4.5%-4.3%
Q1 2019+3.3%+4.1%+1.1%
Q4 2018-1.8%-2.1%+4.2%
Q3 2018-4.6%-1.9%-0.1%
Q2 2018-2.6%-2.7%-1.4%
Q1 2018+0.0%-1.4%+4.2%
Q4 2017-0.5%+0.1%-4.4%
Q3 2017-0.6%+0.1%-3.2%
Q2 2017+2.2%+1.7%+0.1%
Q1 2017+4.3%-1.2%-4.9%
Q4 2016-1.4%-4.7%+2.1%
Q3 2016+0.9%+0.3%+21.9%
Q2 2016-0.4%-0.3%+4.3%
Q1 2016-0.0%
Q4 2015-2.6%
Q3 2015+4.8%
Q2 2015+0.8%
Q1 2015-1.5%
Q4 2014-4.3%
Q3 2014+0.0%
Q2 2014-0.4%
Q1 2014-1.1%
Q4 2013-2.7%
Q3 2013+1.3%
Q2 2013+1.6%
Q1 2013-2.6%
Q4 2012-2.9%
Q3 2012-1.0%
Q2 2012-0.6%
Q1 2011+0.9%
Q1 2012+3.4%
Q4 2009+2.2%
Q4 2010+2.2%
Q4 2011+2.2%
Q3 2011-3.3%
Q3 2010-3.3%
Q2 2011-8.3%
Q2 2010-8.3%
Q1 2010-6.8%

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