NASDAQ$BUSE

First Busey Corporation · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Announced second quarter earnings, marked by strong core loan growth and a rise in net interest margin.

First Busey Corporation reported a net income of $29.8 million, or $0.53 per diluted common share, for the second quarter of 2022. The company experienced strong core loan growth and an increase in net interest margin, while maintaining strong credit quality and capital levels.

  • Net income for the second quarter of 2022 was $29.8 million, with a diluted EPS of $0.53.
  • Adjusted net income was $30.1 million, with an adjusted diluted EPS of $0.54.
  • Core loan growth reached $249.1 million, representing a 13.8% annualized growth rate.
  • Net interest margin increased by 23 basis points compared to the previous quarter.

Headline financials

Total Revenue

$107M

Previous: $97.6M+9.6%
EPS (adj)

$0.54

Previous: $0.57-5.3%
Net Interest Margin

2.7%

Previous: 2.5%+7.2%
Efficiency Ratio

60.6%

Previous: 61.7%-1.8%
Capital Expenditures

-$2.67M

Previous: -$3.09M+13.6%
Free Cash Flow

$27.2M

Previous: $26.7M+1.8%
Net Income

$29.8M

Previous: $29.8M+0.2%
Operating Income

$82.6M

Previous: $76.6M+7.9%
Gross Profit

$103M

Previous: $95.9M+7.6%
Cash & Equivalents

$231M

Previous: $921M-74.9%
Total Assets

$12.4B

Previous: $12.4B-0.5%
Stock-Based Comp

$2.34M

Previous: $2.44M-4.1%

Revenue & EPS history

First Busey · Revenue · Quarterly

$107M

Q2 2022+9.6%vs Q2 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

First Busey · $5.09M total across 1 segment · Q2 2022

  • Wealth Mgmt Fees
    $5.09M+4.2%

Forward guidance

Beginning on July 1, 2022, we became subject to the Durbin Amendment of the Dodd-Frank Act. We expect a $4.3 million to $4.5 million reduction in noninterest income in the second half of 2022 and a reduction of $8.5 million to $9.0 million for the full year 2023.

Headwinds

  • Rising rates have a positive impact on net interest margin, as assets, in particular commercial loans, reprice more quickly and to a greater extent than liabilities.
  • Future FOMC rate decisions are expected to continue to be a net positive to net interest margin.
  • Market competition for deposits has started to increase and deposits betas are likely to increase going forward, which is factored into our ALCO model.
  • The Durbin Amendment requires the Federal Reserve to establish a maximum permissible interchange fee for many types of debit transactions.
  • We expect a $4.3 million to $4.5 million reduction in noninterest income in the second half of 2022 and a reduction of $8.5 million to $9.0 million for the full year 2023.

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 Q2 2022

Historical avgQ2 2022

-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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