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]

Company Overview - First Busey (BUSE) is based in Champaign and operates in the Finance sector, with a year-to-date share price change of -15.15% [3] - The company currently pays a dividend of $0.25 per share, resulting in a dividend yield of 5%, which is significantly higher than the Banks - Midwest industry's yield of 3.6% and the S&P 500's yield of 1.68% [3] Dividend Analysis - First Busey's current annualized dividend of $1 represents a 4.2% increase from the previous year [4] - Over the past five years, the company has increased its dividend three times, averaging an annual increase of 2.21% [4] - The company's payout ratio stands at 46%, indicating that it distributes 46% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - 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 - First Busey is positioned as a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]

Company Overview - First Busey (BUSE) is expected to report quarterly earnings of $0.53 per share, reflecting a year-over-year increase of +12.8% [3] - Revenues are anticipated to reach $138.14 million, which is a 24.7% increase from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 0.54% higher in the last 30 days, indicating a positive reassessment by analysts [4] - The Most Accurate Estimate for First Busey matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10][11] Earnings Surprise History - In the last reported quarter, First Busey exceeded the expected earnings of $0.52 per share by delivering $0.53, resulting in a surprise of +1.92% [12] - Over the past four quarters, the company has beaten consensus EPS estimates three times [13] Industry Comparison - Huntington Bancshares (HBAN), another player in the Zacks Banks - Midwest industry, is expected to report earnings of $0.31 per share, a year-over-year increase of +10.7% [17] - Revenues for Huntington Bancshares are projected to be $1.9 billion, up 7.3% from the previous year [17] - The consensus EPS estimate for Huntington Bancshares has been revised down by 1.8% over the last 30 days, resulting in an Earnings ESP of -2.16% [18]

Company Overview - First Busey (BUSE) shares increased by 5.7% to close at $20.47, following a notable trading volume that exceeded typical levels, contrasting with an 8.9% loss over the past four weeks [1] - The stock surge was influenced by a broader market increase, particularly after President Trump's announcement of a 90-day tariff pause for non-retaliating nations, which positively impacted investor sentiment [2] Earnings Expectations - First Busey is projected to report quarterly earnings of $0.53 per share, reflecting a year-over-year increase of 12.8% [2] - Expected revenues for the upcoming report are $138.14 million, representing a 24.7% increase compared to the same quarter last year [2] Earnings Estimate Revisions - The consensus EPS estimate for First Busey has been revised 0.5% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [4] - Empirical research suggests that trends in earnings estimate revisions are strongly linked to near-term stock price movements, highlighting the importance of monitoring these revisions [3] Industry Context - First Busey operates within the Zacks Banks - Midwest industry, where Park National (PRK) also resides, having closed 7.4% higher at $153.62, despite a -6% return over the past month [4] - Park National's consensus EPS estimate remains unchanged at $2.20, indicating a year-over-year change of 2.3%, and it currently holds a Zacks Rank of 2 (Buy) [5]

Core Viewpoint - First Busey (BUSE) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Company Performance and Outlook - For the fiscal year ending December 2025, First Busey is projected to earn $2.55 per share, reflecting a 22.6% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for First Busey has risen by 2.9%, indicating a positive trend in earnings expectations [8]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for market-beating returns [9][10]. - The upgrade of First Busey to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for the stock's performance in the near term [10].

Core Viewpoint - First Busey Corporation has successfully completed its acquisition of CrossFirst Bankshares, enhancing its market presence and operational scale in the banking sector [1][2]. Transaction Details - The merger was effective on March 1, 2025, with CrossFirst shareholders receiving 0.6675 shares of Busey common stock for each share of CrossFirst [5]. - CrossFirst shareholders will own approximately 36.5% of the combined company on a fully-diluted basis [7]. - The combined entity will operate under the Busey brand, with a total of approximately $20 billion in assets, $17 billion in deposits, and $15 billion in loans [2]. Operational Strategy - Busey will maintain CrossFirst Bank as a separate subsidiary until its merger with Busey Bank, expected in June 2025 [2]. - The merger aims to extend Busey's regional operating model into high-growth metro markets, enhancing commercial banking relationships and wealth management opportunities [3]. Leadership and Governance - The Board of Directors will consist of 13 members, with eight from Busey and five from CrossFirst [5]. - Key leadership includes Van Dukeman as Chairman and CEO, and Mike Maddox as Vice Chairman and President [6]. Financial Position - Busey Bank had total assets of $12.01 billion as of December 31, 2024, while CrossFirst Bank had total assets of $7.7 billion [9]. - The combined company will leverage Busey's strong balance sheet, characterized by exceptional credit quality and diversified revenue streams [4]. Market Recognition - Busey Bank has been recognized among the World's Best Banks for 2024 by Forbes and has received multiple accolades for its workplace culture and community engagement [12].

Company Overview - First Busey Corporation is a financial holding company with total assets of $12.05 billion as of December 31, 2024[17]. - Busey Bank operates 50 banking centers in Illinois, eight in Missouri, three in southwest Florida, and one in Indianapolis, Indiana[18]. - As of December 31, 2024, Busey Bank managed $13.83 billion in assets under care through its Wealth Management business[21]. - Busey has a total of 1,509 full-time equivalents as of December 31, 2024, with the majority (1,202) located in Illinois[41]. Mergers and Acquisitions - The company completed the acquisition of Merchants and Manufacturers Bank Corporation on April 1, 2024, expanding its market presence[23]. - A merger agreement with CrossFirst Bankshares, Inc. is planned for March 1, 2025, which will create a combined entity with approximately $20 billion in assets[24]. - Following the merger, Busey stockholders will own approximately 63.5% of the combined company, while CrossFirst stockholders will own about 36.5%[26]. - Busey incurred one-time pretax acquisition-related expenses of $3.9 million in 2024 related to the CrossFirst merger[28]. - Busey completed the acquisition of Merchants and Manufacturers Bank Corporation on April 1, 2024, enhancing its service offerings and expanding its presence in the suburban Chicago market[29]. Market Position and Competition - As of June 30, 2024, Busey Bank ranked fourth in total deposits among 355 financial institutions in Illinois, with a market share ranking of 1 in Champaign and 2 in Macon and Madison counties[36]. - Busey Bank faces substantial competition for deposits from various financial institutions, influencing its strategies for attracting customers through competitive rates and quality service[35]. - Busey operates in a highly competitive environment, facing challenges from both traditional banks and fintech companies, which could impact its market share and profitability[185][186]. Financial Performance - Net interest income (GAAP) for 2024 was $322,611,000, slightly up from $320,621,000 in 2023[130]. - Total noninterest income (GAAP) increased to $139,682,000 in 2024 from $121,214,000 in 2023, representing a growth of approximately 15.2%[130]. - Adjusted net income (Non-GAAP) for 2024 was $119,805,000, compared to $126,012,000 in 2023, indicating a decrease of about 4.3%[132]. - Average total assets (GAAP) decreased to $12,051,871,000 in 2024 from $12,246,218,000 in 2023[132]. - Return on average assets (GAAP) for 2024 was 0.94%, down from 1.00% in 2023[132]. - Total noninterest expense (GAAP) rose to $300,399,000 in 2024 from $285,532,000 in 2023, an increase of approximately 5.0%[136]. Regulatory Compliance - Busey crossed the $10 billion asset threshold in 2020, which subjects it to additional regulatory requirements under the Dodd-Frank Act[51]. - The Durbin Amendment, applicable to Busey Bank since July 1, 2022, has reduced earnings on covered debit transactions due to maximum permissible interchange fees[51]. - Busey Bank is well-capitalized as of December 31, 2024, exceeding Federal Reserve requirements and meeting Basel III Rule standards[70]. - The Basel III Rule requires a Common Equity Tier 1 Capital ratio of 7% including a capital conservation buffer, with Busey Bank maintaining compliance[65]. - Busey Bank is under the oversight of the CFPB for consumer banking transactions, ensuring compliance with consumer laws[54]. - The Volcker Rule does not materially affect Busey's operations as it does not engage in prohibited activities[53]. Risk Management - The liquidity risk management framework is crucial for Busey Bank, especially in light of recent financial industry stress events[94]. - Busey Bank established a risk committee in 2018 to oversee risk matters in preparation for future growth, despite not being required to do so yet[56]. - The effectiveness of Busey's risk management framework is critical, especially in light of the planned CrossFirst merger, as new risks may emerge during integration[205]. - The company has established rigorous underwriting standards to mitigate credit risks, but elevated interest rates and inflation could lead to increased non-performing loans and higher provisions for credit losses[170][171]. Economic and Market Risks - Economic uncertainties, including inflation and geopolitical tensions, may adversely affect the company's financial condition and growth prospects[156]. - The company anticipates that prolonged elevated interest rates followed by easing cycles could create financial volatility impacting its operations[159]. - Busey is facing heightened regulatory scrutiny due to its growing asset size and complexity, particularly with the planned acquisition of CrossFirst, which may increase compliance burdens[165]. Technological and Operational Challenges - The company must continuously invest in technological innovations to remain competitive and meet evolving customer expectations, or risk losing market share[186][187]. - Ongoing technological investments enhance operational efficiency but also introduce cybersecurity risks, necessitating robust security protocols and incident response plans[207][210]. - Busey has implemented AI-powered tools for fraud detection, enhancing its ability to manage cybersecurity threats proactively[210]. Community and Social Responsibility - The Community Reinvestment Act (CRA) requires Busey Bank to meet the credit needs of the entire community, including low- and moderate-income neighborhoods, with regular assessments impacting its activities[111]. - Busey Bank's CRA ratings can significantly impact its ability to engage in acquisitions and maintain its financial holding company status[111].

Core Viewpoint - The article emphasizes the importance of value investing and highlights First Busey (BUSE) as a strong candidate for value investors due to its attractive valuation metrics and earnings outlook [2][4][7] Company Analysis - First Busey (BUSE) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for value investors [4][7] - The stock is currently trading at a P/E ratio of 9.37, significantly lower than the industry average of 11.98 [4] - BUSE's Forward P/E has fluctuated between 8.83 and 12.76 over the past 52 weeks, with a median of 10.59 [4] Valuation Metrics - BUSE has a P/B ratio of 1, which is attractive compared to the industry average P/B of 2.16 [5] - The P/B ratio for BUSE has ranged from 0.89 to 1.21 in the past year, with a median of 1.01 [5] - The P/CF ratio for BUSE stands at 9.33, well below the industry average of 15.65, indicating potential undervaluation [6] - Over the past 52 weeks, BUSE's P/CF has varied between 7.13 and 10.66, with a median of 9.20 [6] Investment Outlook - The combination of BUSE's favorable valuation metrics and strong earnings outlook positions it as one of the strongest value stocks in the market [7]