NASDAQ$BUSE

First Busey Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

First Busey Corporation reported net income for Q4 2023, entered into an agreement to acquire Merchants & Manufacturers Bank Corporation, and executed a balance sheet repositioning.

First Busey Corporation reported a net income of $25.7 million, or $0.46 per diluted common share, for the fourth quarter of 2023. The company entered into a definitive agreement to acquire Merchants & Manufacturers Bank Corporation and executed a two-part balance sheet repositioning related to the securities portfolio. Non-performing assets declined 34.4% during the quarter, and the tangible book value per common share increased to $16.62.

  • Net income for the fourth quarter of 2023 was $25.7 million, or $0.46 per diluted common share.
  • Adjusted net income was $29.1 million, or $0.52 per diluted common share.
  • Entered into a definitive agreement to acquire Merchants & Manufacturers Bank Corporation.
  • Non-performing assets decreased by 34.4% during the fourth quarter of 2023.

Headline financials

Total Revenue

$108M

Previous: $120M-10.3%
EPS (adj)

$0.52

Previous: $0.65-20.0%
Net Interest Margin

2.7%

Previous: 3.2%-15.4%
ROAA

0.8%

No prior period
ROATCE

12.1%

No prior period
Efficiency Ratio

66.9%

No prior period
Capital Expenditures

$2.78M

Previous: $983K+183.1%
Net Income

$25.7M

Previous: $34.4M-25.1%
Operating Income

$33.2M

Previous: $45.7M-27.3%
Stock-Based Comp

-$333K

Previous: $2.25M-114.8%

Revenue & EPS history

First Busey · Revenue · Quarterly

$108M

Q4 2023-10.3%vs Q4 2022
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 loan and investment security opportunities over time, prudently managing expenses, and attracting term funding and savings accounts at a lower rate.

Tailwinds

  • Increased net interest spread expected to increase net interest income by approximately $4.3 million on an annualized basis.
  • Transactions are expected to be accretive to capital and earnings per share in future periods.
  • Deposit base has grown by $490.0 million since March 31, 2023.
  • New certificate of deposit production in the fourth quarter of 2023 had a weighted average term of 9.3 months at a rate of 4.34%.
  • Anticipates reinvesting the proceeds into loan and investment security opportunities over time.

Headwinds

  • Results were negatively impacted by an increase in income tax expense as a result of adjusting estimated annual effective tax rate.
  • The decline in pre-provision net revenue in the fourth quarter was the result of a $0.7 million decrease in net interest income.
  • Market competition for deposits continues and 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.
  • Components of the 6 basis point decrease in net interest margin during the fourth quarter of 2023 include increases in the cash and securities portfolio yield contributed +15 basis points.

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 Q4 2023

Historical avgQ4 2023

-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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