Financial Performance - First Busey Corporation's total assets were $119 billion as of March 31, 2024 [3] - The company's Assets Under Care (AUC) reached $128 billion [3] - Last Twelve Months (LTM) revenue totaled $3727 million [4] - FirsTech, a segment of First Busey, processed $11 billion in payments LTM [3] and generated $231 million in revenue LTM [4] - Wealth Management segment revenue LTM was $586 million [4] Balance Sheet & Capital - As of March 31, 2024, the CET1 ratio was 135% and the Total Capital Ratio was 179% [20] - Core deposits represented 967% of total deposits [20] - The loan-to-deposit ratio stood at 762% [26] Wealth Management - Wealth Management's Assets Under Care (AUC) reached $128 billion as of March 31, 2024, a year-over-year increase of 139% [3, 49] - Wealth segment revenue for 1Q24 was $157 million, a year-over-year increase of 53% [49] FirsTech - FirsTech's revenue for 1Q24 reached $60 million, marking the highest quarterly revenue in the company's history [52] - FirsTech is focused on achieving double-digit annual growth and reaching $50 million in annual revenue [54] Strategic Initiatives - On April 1, 2024, First Busey completed the acquisition of M&M Bank Corp [3, 12]

Group 1 - The article focuses on newly listed fixed-income IPOs at the exchange, specifically highlighting First Busey Corporation [1] - It invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] Group 2 - The article does not provide specific financial data or performance metrics related to First Busey Corporation or other companies [2]

Company Overview - First Busey (BUSE) is headquartered in Leawood and operates in the Finance sector. The stock has experienced a price change of -5.69% since the beginning of the year [3]. Dividend Information - First Busey currently pays a dividend of $0.25 per share, resulting in a dividend yield of 4.5%. This yield is significantly higher than the Banks - Midwest industry's yield of 3.17% and the S&P 500's yield of 1.56% [3]. - The company's annualized dividend of $1 has increased by 4.2% from the previous year. Over the last five years, First Busey has raised its dividend three times, averaging an annual increase of 2.21% [4]. - The current payout ratio for First Busey is 46%, indicating that it distributes 46% of its trailing 12-month earnings per share as dividends [4]. Earnings Growth - The Zacks Consensus Estimate for First Busey's earnings in 2025 is projected at $2.54 per share, reflecting a year-over-year earnings growth rate of 22.12% [5]. Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages. However, not all companies offer quarterly payouts [6]. - High-growth firms or tech start-ups typically do not provide dividends, while larger, established companies are often viewed as better dividend options. Income investors should be aware that high-yielding stocks may face challenges during periods of rising interest rates [7]. - First Busey is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7].

Core Viewpoint - First Busey Corporation successfully closed a public offering of 8,600,000 depositary shares, raising approximately $207.48 million, which will enhance its capital structure and support future growth initiatives [1]. Group 1: Offering Details - The public offering included 8,600,000 depositary shares, with each share representing a 1/40th ownership interest in a share of 8.25% Fixed Rate Series B Non-Cumulative Perpetual Preferred Stock [1]. - The liquidation preference for each share is $1,000, equivalent to $25.00 per depositary share [1]. - The offering was managed by Piper Sandler & Co., Morgan Stanley & Co. LLC, and Keefe, Bruyette & Woods, Inc. as joint bookrunning managers [2]. Group 2: Financial Profile - As of March 31, 2025, First Busey Corporation had total assets of $19.46 billion [4]. - Busey Bank, a wholly-owned subsidiary, reported total assets of $11.98 billion [5]. - CrossFirst Bank, another subsidiary, had total assets of $7.45 billion and is set to merge with Busey Bank on June 20, 2025 [6]. Group 3: Wealth Management and Technology Services - Busey Bank's Wealth Management division manages assets totaling $13.68 billion, offering a range of services including asset management and tax preparation [7]. - FirsTech, a subsidiary of Busey Bank, specializes in financial technology solutions for small and medium-sized businesses, providing various payment technology services [8]. Group 4: Recognition and Awards - Busey was ranked 88th among America's Best Banks by Forbes in 2025 and received multiple accolades for being a great workplace [9].

Core Viewpoint - First Busey Corporation is conducting a public offering of 8,000,000 depositary shares representing a 1/40th ownership interest in its 8.25% Fixed Rate Series B Non-Cumulative Perpetual Preferred Stock, with a liquidation preference of $1,000 per share [1][2] Group 1: Offering Details - The Series B preferred stock will pay dividends at a rate of 8.25% per annum, payable quarterly starting September 1, 2025 [2] - The net proceeds from the offering are expected to be used to redeem Busey's 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 and for general corporate purposes [3] - The offering is expected to close on or about May 20, 2025, subject to customary conditions [4] Group 2: Corporate Profile - As of March 31, 2025, First Busey Corporation is a $19.46 billion financial holding company headquartered in Leawood, Kansas [7] - Busey Bank, a wholly-owned subsidiary, had total assets of $11.98 billion and operates 62 banking centers [8] - CrossFirst Bank, another wholly-owned subsidiary, had total assets of $7.45 billion and is expected to merge with Busey Bank on June 20, 2025 [9] Group 3: Wealth Management and Technology Services - Busey's Wealth Management division manages assets totaling $13.68 billion as of March 31, 2025, offering a range of financial services [10] - FirsTech, a subsidiary of Busey Bank, specializes in financial technology solutions for small and medium-sized businesses, providing various payment technology services [11] Group 4: Recognition and Awards - Busey was named among 2025's America's Best Banks by Forbes, ranking 88th overall, and received multiple accolades for being a great workplace [12]

Part I Financial Information [Financial Statements](index=6&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) First Busey Corporation reported a net loss in Q1 2025, driven by acquisition expenses, alongside significant balance sheet growth | (dollars in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | $ 19,464,252 | $ 12,046,722 | | Portfolio loans, net | $ 13,673,147 | $ 7,613,683 | | Goodwill | $ 385,139 | $ 333,695 | | Total deposits | $ 16,459,470 | $ 9,982,490 | | Total liabilities | $ 17,284,646 | $ 10,663,453 | | Total stockholders' equity | $ 2,179,606 | $ 1,383,269 | | (dollars in thousands, except per share) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net interest income | $ 103,731 | $ 75,854 | | Provision for credit losses | $ 42,452 | $ 5,038 | | Total noninterest income | $ 21,223 | $ 34,913 | | Total noninterest expense | $ 115,171 | $ 70,769 | | Net income (loss) | $ (29,990) | $ 26,225 | | Diluted earnings (loss) per common share | $ (0.44) | $ 0.46 | [Note 1. Significant Accounting Policies](index=13&type=section&id=Note%201.%20Significant%20Accounting%20Policies) First Busey Corporation prepares financial statements under U.S. GAAP, operating through Banking, Wealth Management, and FirsTech segments - First Busey Corporation operates and reports its business in three segments: - **Banking:** Provides a full range of banking services across Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas through Busey Bank and CrossFirst Bank - **Wealth Management:** Offers asset management, investment, brokerage, and fiduciary services - **FirsTech:** Provides payment technology solutions including online, mobile, and voice-recognition bill payments[26](index=26&type=chunk)[31](index=31&type=chunk) - On April 30, 2025, Busey issued a conditional notice to redeem its 5.25% fixed-to-floating rate subordinated notes, with an aggregate principal and interest amount of **$128.3 million**, on June 1, 2025[45](index=45&type=chunk) [Note 2. Mergers and Acquisitions](index=15&type=section&id=Note%202.%20Mergers%20and%20Acquisitions) Busey completed the CrossFirst Bankshares acquisition on March 1, 2025, significantly expanding its operations and recording goodwill - Effective March 1, 2025, Busey acquired CrossFirst Bankshares, Inc. (CrossFirst), expanding its presence to **10 states**; CrossFirst Bank will operate as a separate subsidiary until its planned merger into Busey Bank on June 20, 2025[46](index=46&type=chunk)[48](index=48&type=chunk) Acquisition Date Fair Values (in thousands) | | March 1, 2025 CrossFirst (provisional) | April 1, 2024 M&M (final) | |:---|:---:|:---:| | Total assets acquired | $ 7,497,526 | $ 477,745 | | Total liabilities assumed | $ 6,739,915 | $ 444,067 | | Net assets acquired | $ 757,611 | $ 33,678 | | Total consideration paid | $ 808,980 | $ 49,575 | | **Goodwill** | **$ 51,369** | **$ 15,897** | - Busey incurred pre-tax acquisition expenses of **$71.6 million** in Q1 2025, primarily related to the CrossFirst deal, including a **$42.4 million** initial provision for credit losses on non-PCD loans and **$7.1 million** in legal and professional fees[70](index=70&type=chunk)[71](index=71&type=chunk) Unaudited Pro Forma Results (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | |:---|:---:|:---:| | Revenue (Net Interest Income + Noninterest Income) | $ 179,594 | $ 197,213 | | Net income | $ 20,164 | $ 11,054 | [Note 3. Debt Securities](index=20&type=section&id=Note%203.%20Debt%20Securities) Busey's debt securities portfolio totaled $3.09 billion, with $330.2 million in unrealized losses, primarily from interest rate changes Debt Securities Summary (As of March 31, 2025, in thousands) | Category | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | | :--- | :--- | :--- | :--- | :--- | | **Available for Sale** | $ 2,464,241 | $ 2,930 | $ (193,297) | $ 2,273,874 | | **Held to Maturity** | $ 815,402 | $ — | $ (136,932) | $ 678,470 | - In Q1 2025, Busey sold available-for-sale debt securities with a book value of approximately **$205.6 million**, realizing a pre-tax loss of **$15.5 million** as part of a balance sheet repositioning strategy, compared to a **$6.8 million** loss on sales of **$108.2 million** in securities in Q1 2024[80](index=80&type=chunk) - As of March 31, 2025, the company had 591 debt securities in a continuous unrealized loss position, with total unrealized losses of **$330.2 million**; management does not believe these losses are credit-related and expects full collection of contractual amounts[88](index=88&type=chunk) [Note 4. Portfolio Loans](index=26&type=section&id=Note%204.%20Portfolio%20Loans) The loan portfolio grew to $13.87 billion due to the CrossFirst acquisition, with the Allowance for Credit Losses increasing to $195.2 million Portfolio Loans Composition (in thousands) | Loan Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial loans | $ 11,138,488 | $ 5,552,288 | | Retail loans | $ 2,729,869 | $ 2,144,799 | | **Total portfolio loans** | **$ 13,868,357** | **$ 7,697,087** | | ACL | $ (195,210) | $ (83,404) | | **Portfolio loans, net** | **$ 13,673,147** | **$ 7,613,683** | Allowance for Credit Losses (ACL) Activity - Q1 2025 (in thousands) | | Amount | | :--- | :--- | | Balance, December 31, 2024 | $ 83,404 | | Day 1 PCD (CrossFirst) | $ 100,783 | | Day 2 Provision (CrossFirst non-PCD) | $ 42,433 | | Other Provision | $ 19 | | Charged-off | $ (31,835) | | Recoveries | $ 406 | | **Balance, March 31, 2025** | **$ 195,210** | - Net charge-offs in Q1 2025 included **$29.6 million** related to PCD loans acquired from CrossFirst, which were fully reserved at acquisition and did not require additional provision expense[120](index=120&type=chunk) - Non-accrual loans increased to **$48.6 million** at March 31, 2025, from **$22.1 million** at December 31, 2024; total non-performing loans stood at **$54.7 million**, or **0.39%** of portfolio loans[105](index=105&type=chunk)[343](index=343&type=chunk) [Note 6. Deposits](index=37&type=section&id=Note%206.%20Deposits) Total deposits significantly increased to $16.46 billion due to the CrossFirst acquisition, with uninsured deposits at $5.26 billion Deposit Composition (in thousands) | Deposit Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Noninterest-bearing demand | $ 3,693,070 | $ 2,719,907 | | Interest-bearing transaction | $ 3,200,137 | $ 2,423,237 | | Savings and money market | $ 6,475,187 | $ 3,348,711 | | Time deposits | $ 3,091,076 | $ 1,490,635 | | **Total deposits** | **$ 16,459,470** | **$ 9,982,490** | - Estimated uninsured and not otherwise collateralized deposits were **$5.26 billion**, or **32.0%** of total deposits, as of March 31, 2025, an increase from **$2.96 billion**, or **29.6%** of total deposits, at December 31, 2024[351](index=351&type=chunk) [Note 8. Regulatory Capital](index=40&type=section&id=Note%208.%20Regulatory%20Capital) First Busey and its subsidiary banks remained well-capitalized as of March 31, 2025, with all capital ratios exceeding regulatory minimums First Busey Corporation Capital Ratios (As of March 31, 2025) | Ratio | Actual | Minimum Requirement | To Be Well Capitalized | | :--- | :--- | :--- | :--- | | Common equity Tier 1 capital | 12.00 % | 4.50 % | 6.50 % | | Tier 1 capital | 12.05 % | 6.00 % | 8.00 % | | Total capital | 14.88 % | 8.00 % | 10.00 % | | Leverage ratio | 12.95 % | 4.00 % | N/A | - The company exceeded the capital conservation buffer requirements, with its Common Equity Tier 1 ratio of **12.00%** being **500 bps** above the **7.0%** minimum required to avoid restrictions on dividends and buybacks[151](index=151&type=chunk) [Note 16. Operating Segments and Related Information](index=62&type=section&id=Note%2016.%20Operating%20Segments%20and%20Related%20Information) Busey operates through Banking, Wealth Management, and FirsTech segments, with Banking reporting a net loss in Q1 2025 due to acquisition expenses Segment Financial Results - Q1 2025 (in thousands) | Segment | Revenue (Net Interest Income + Noninterest Income) | Income (Loss) Before Taxes | Net Income (Loss) | | :--- | :--- | :--- | :--- | | Banking | $ 107,036 | $ (20,563) | $ (19,693) | | Wealth Management | $ 17,566 | $ 8,183 | $ 6,219 | | FirsTech | $ 5,429 | $ (318) | $ (239) | | Other/Eliminations | $ (5,077) | $ (19,971) | $ (16,277) | | **Total** | **$ 124,954** | **$ (32,669)** | **$ (29,990)** | - The Banking segment's results for Q1 2025 include one month of operations from the newly acquired CrossFirst Bank[255](index=255&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=67&type=section&id=Item%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management highlights the transformative CrossFirst acquisition, which impacted Q1 2025 results, while noting strong underlying performance and robust capital - The acquisition of CrossFirst on March 1, 2025, is described as transformative, significantly impacting Q1 2025 results and resetting the baseline for future performance[284](index=284&type=chunk) GAAP vs. Non-GAAP Performance Metrics - Q1 2025 | Metric | GAAP | Adjusted (Non-GAAP) | | :--- | :--- | :--- | | Net Income (Loss) | ($29.99 M) | $39.90 M | | Diluted EPS | ($0.44) | $0.57 | | Return on Average Assets | (0.82)% | 1.09% | | Return on Average Tangible Common Equity | (7.99)% | 10.64% | | Efficiency Ratio | 79.4% | 58.7% | - Net interest margin (tax-equivalent) increased to **3.16%** in Q1 2025 from **2.79%** in Q1 2024, driven by higher yields on earning assets[295](index=295&type=chunk)[299](index=299&type=chunk) - Noninterest expense increased **62.7%** to **$115.2 million**, but excluding **$29.2 million** in non-operating acquisition and restructuring costs, the increase was **22.2%** year-over-year[310](index=310&type=chunk) - The company maintains a strong liquidity position with **$2.86 billion** in cash and unencumbered securities and an additional **$4.19 billion** in available borrowing capacity as of March 31, 2025[354](index=354&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=97&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's most significant market risk is interest rate risk, managed by an asset-liability committee, with simulation analysis indicating balance sheet benefits from rising rates Interest Rate Sensitivity Analysis (% Change in Net Interest Income) | Basis Point Change | Year-One (March 31, 2025) | Year-Two (March 31, 2025) | | :--- | :--- | :--- | | +400 | 7.47 % | 10.57 % | | +200 | 3.58 % | 5.16 % | | +100 | 1.77 % | 2.58 % | | -100 | (1.70)% | (3.20)% | | -200 | (2.92)% | (6.24)% | | -400 | (3.87)% | (10.87)% | - The asset-liability committee meets at least quarterly to review market conditions and structure the balance sheet to optimize stability in net interest income[399](index=399&type=chunk) [Controls and Procedures](index=98&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that Busey's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal controls - The Chief Executive Officer and Interim Chief Financial Officer concluded that as of March 31, 2025, Busey's disclosure controls and procedures were effective[404](index=404&type=chunk) - No changes occurred in Busey's internal control over financial reporting during Q1 2025 that materially affected, or are reasonably likely to materially affect, these controls[405](index=405&type=chunk) Part II Other Information [Legal Proceedings](index=99&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company is involved in ordinary, routine litigation incidental to its business, with no material impact expected on financial position - There is no material pending litigation, other than ordinary routine litigation incidental to its business, in which First Busey Corporation or any of its subsidiaries is involved[409](index=409&type=chunk) [Risk Factors](index=99&type=section&id=Item%201A.%20RISK%20FACTORS) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - There have been no material changes to the factors discussed in Part II—Item 1A of Busey's 2024 Annual Report[411](index=411&type=chunk) [Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=99&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%2C%20USE%20OF%20PROCEEDS%2C%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) During Q1 2025, Busey repurchased 220,000 shares of common stock at a weighted average price of $21.98 per share Issuer Purchases of Equity Securities - Q1 2025 | Period | Total Shares Purchased | Weighted Average Price Paid per Share | Shares Remaining Under Plan | | :--- | :--- | :--- | :--- | | January 2025 | — | $ — | 1,919,275 | | February 2025 | — | $ — | 1,919,275 | | March 2025 | 220,000 | $ 21.98 | 1,699,275 | | **Total Q1 2025** | **220,000** | **$ 21.98** | **1,699,275** |

First Busey (BUSE) reported $124.95 million in revenue for the quarter ended March 2025, representing a year-over-year increase of 12.8%. EPS of $0.57 for the same period compares to $0.47 a year ago.The reported revenue represents a surprise of -9.55% over the Zacks Consensus Estimate of $138.14 million. With the consensus EPS estimate being $0.53, the EPS surprise was +7.55%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

Group 1 - First Busey reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.53 per share, and up from $0.47 per share a year ago, representing an earnings surprise of 7.55% [1] - The company posted revenues of $124.95 million for the quarter ended March 2025, which missed the Zacks Consensus Estimate by 9.55%, compared to year-ago revenues of $110.77 million [2] - First Busey shares have declined approximately 15.6% since the beginning of the year, while the S&P 500 has decreased by 12.3% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.62 on revenues of $193.68 million, and for the current fiscal year, it is $2.54 on revenues of $730.02 million [7] - The Zacks Industry Rank for Banks - Midwest is in the top 13% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - Independent Bank, another company in the same industry, is expected to report quarterly earnings of $0.70 per share, reflecting a year-over-year change of -7.9% [9]

Financial Performance - First Busey Corporation reported a net loss of $30.0 million, or $(0.44) per diluted common share, for Q1 2025, compared to net income of $28.1 million, or $0.49 per diluted common share, in Q4 2024[11]. - Adjusted net income for Q1 2025 was $39.9 million, or $0.57 per diluted common share, up from $30.9 million, or $0.53 per diluted common share, in Q4 2024[11]. - Adjusted pre-provision net revenue was $54.7 million for Q1 2025, compared to $42.0 million in Q4 2024[12]. - The effective income tax rate for Q1 2025 was 8.20%, significantly lower than 24.77% in Q4 2024[11]. - Adjusted net income for Q1 2025 was $39,898 thousand, up from $30,872 thousand in Q4 2024 and $25,713 thousand in Q1 2024, showing increases of 29.5% and 55.2% respectively[63]. - The diluted earnings per share (GAAP) for Q1 2025 was $(0.44), compared to $0.49 in Q4 2024 and $0.46 in Q1 2024[63]. Revenue and Income Sources - Net interest income increased to $103.7 million in Q1 2025, compared to $81.6 million in Q4 2024 and $75.9 million in Q1 2024[13]. - The net interest margin improved to 3.16% in Q1 2025, up from 2.95% in Q4 2024 and 2.79% in Q1 2024[14]. - Total noninterest income decreased by 39.7% compared to Q4 2024, primarily due to net securities losses related to a strategic balance sheet repositioning[15]. - Wealth management fees increased by 3.4% quarter-over-quarter and 11.7% year-over-year, with $13.68 billion in assets under care[18]. - Payment technology solutions revenue decreased by 11.1% year-over-year, primarily due to declines in electronic and online payment income[18]. - Customer service fees increased by 15.2% year-over-year, driven by higher analysis charges and ATM fees[18]. Expenses and Efficiency - Total noninterest expense rose by 47.3% quarter-over-quarter and 62.7% year-over-year, largely due to one-time acquisition expenses from the CrossFirst acquisition[19]. - Adjusted noninterest expense was $82.9 million, up from $72.6 million in the previous quarter and $68.6 million a year ago[20]. - Busey's efficiency ratio was 79.3% for Q1 2025, compared to 64.5% in Q4 2024 and 58.1% in Q1 2024[21]. - Total noninterest expense for Q1 2025 was $115,171 thousand, significantly higher than $78,167 thousand in Q4 2024 and $70,769 thousand in Q1 2024, reflecting increases of 47.4% and 62.8% respectively[71]. - The efficiency ratio (Non-GAAP) for Q1 2025 was 79.35%, compared to 64.45% in Q4 2024 and 58.13% in Q1 2024, indicating a decline in efficiency[71]. Assets and Loans - Total assets reached $19.46 billion as of March 31, 2025, up from $12.05 billion at the end of Q4 2024[27]. - Portfolio loans totaled $13.87 billion, an increase from $7.70 billion at the end of Q4 2024[28]. - Average interest-earning assets were $13.36 billion for Q1 2025, compared to $11.05 billion in Q4 2024[27]. - Total assets increased to $19,464,252 thousand as of March 31, 2025, up from $12,046,722 thousand as of December 31, 2024, representing a growth of 61.5%[75]. - Core deposits reached $14,769,899 thousand, a significant increase from $9,634,897 thousand as of December 31, 2024, reflecting a growth of 53.5%[77]. Credit Quality and Losses - Non-performing loans rose to $54.72 million, a $31.5 million increase from December 31, 2024, representing 0.39% of portfolio loans[34]. - Non-performing assets increased to $59.48 million, a $36.2 million increase from December 31, 2024, accounting for 0.31% of total assets[35]. - The allowance for credit losses was $195.2 million, representing 1.41% of total portfolio loans, with a coverage ratio of 3.57 times non-performing loans[37]. - Net charge-offs for the first quarter of 2025 were $31.43 million, an increase of $28.6 million from the previous quarter[38]. Acquisition and Integration - The acquisition of CrossFirst Bankshares, completed on March 1, 2025, is expected to enhance financial performance and create a premier commercial bank across multiple states[6]. - The combined company will operate 78 full-service locations across 10 states, with Busey common stock continuing to trade under the "BUSE" ticker symbol[6]. - The acquisition was accretive to tangible book value, exceeding initial projections of a six-month earn back period[9]. - Busey anticipates $25 million in annual pre-tax expense synergies from the CrossFirst acquisition, with a 50% realization rate expected in 2025[19]. - The company anticipates merging CrossFirst Bank into Busey Bank on June 20, 2025, following the acquisition[51]. - The provision for unfunded commitments included a Day 2 provision expense of $3,139 thousand related to the CrossFirst acquisition[72]. Market Position and Outlook - Busey is actively monitoring economic factors that could impact financial performance, including inflation and competition from non-bank entities[79]. - The acquisition of CrossFirst is expected to enhance Busey's market position, although integration costs may exceed initial estimates[79]. - Forward-looking statements indicate a cautious outlook due to potential economic uncertainties and regulatory changes[78].

Core Insights - Busey completed the acquisition of CrossFirst Bankshares on March 1, 2025, which significantly impacted its financial performance and set a new baseline for future quarters [1][4][7] Financial Performance - Busey reported a net loss of $30.0 million, or $(0.44) per diluted share, for Q1 2025, compared to net income of $28.1 million, or $0.49 per diluted share, in Q4 2024 [2][9] - Adjusted net income for Q1 2025 was $39.9 million, or $0.57 per diluted share, up from $30.9 million, or $0.53 per diluted share, in Q4 2024 [10] - Net interest income increased to $103.7 million in Q1 2025 from $81.6 million in Q4 2024 [14] - Total noninterest income decreased by 39.7% compared to Q4 2024, primarily due to net securities losses [17] Acquisition Impact - The acquisition was accretive to tangible book value, exceeding initial projections of a six-month earn-back period [7] - Busey will operate CrossFirst Bank as a separate subsidiary until its merger with Busey Bank, expected on June 20, 2025 [6] Balance Sheet Strength - Total assets reached $19.46 billion as of March 31, 2025, compared to $12.05 billion at the end of 2024 [34] - Portfolio loans increased to $13.87 billion as of March 31, 2025, from $7.70 billion at the end of 2024 [35] Asset Quality - Non-performing loans increased to $54.7 million as of March 31, 2025, compared to $23.2 million at the end of 2024 [42] - The allowance for credit losses was $195.2 million, representing 1.41% of total portfolio loans [45] Capital Strength - Busey's Common Equity Tier 1 ratio was estimated at 11.99% as of March 31, 2025, down from 14.10% at the end of 2024 [56] - Tangible common equity increased to $1.68 billion as of March 31, 2025, compared to $1.02 billion at the end of 2024 [57] Dividend and Stock Repurchase - The company paid a dividend of $0.25 per share in Q1 2025, a 4.2% increase from the previous quarter [59] - Busey resumed stock repurchases, buying back 220,000 shares at an average price of $21.98 per share [60]