First Busey(US:BUSE)2025-11-06 21:08Financial Performance - Net income for the three months ended September 30, 2025, was reported at $81 million, compared to $50 million for the same period in 2024, reflecting a year-over-year increase of 62%[16] - Net income for Q3 2025 was $57,098,000, compared to $32,004,000 in Q3 2024, marking a 78.5% increase[19] - Net income for the three months ended September 30, 2025, was $57,098 thousand, compared to $32,004 thousand for the same period in 2024, representing a 78.4% increase[22] - Total comprehensive income for the nine months ended September 30, 2025, was $144,750,000, compared to $133,476,000 in 2024, showing an 8.5% increase[19] - Net income for the nine months ended September 30, 2024, was $85,586,000, compared to $74,512,000 for the same period in 2025, reflecting a decrease of approximately 12.9%[28] Asset Growth - Total assets increased to $18.19 billion as of September 30, 2025, up from $12.05 billion at December 31, 2024, representing a growth of 51.5%[15] - Portfolio loans net of allowance for credit losses (ACL) rose to $13.42 billion, up from $7.61 billion at the end of 2024, marking a 76.5% increase[15] - Total deposits reached $15.07 billion, a significant increase from $9.98 billion at December 31, 2024, indicating a growth of 50.5%[15] - Total stockholders' equity rose to $2.45 billion, up from $1.38 billion at December 31, 2024, representing an increase of 77%[15] Income and Expenses - Total interest income for Q3 2025 was $244,505,000, a 81.6% increase from $134,606,000 in Q3 2024[17] - Noninterest income for the quarter was $89 million, showing an increase from $72 million in the previous year, which is a growth of 23.6%[16] - The company reported a noninterest expense of $92 million for the quarter, compared to $80 million in the same period last year, reflecting a rise of 15%[16] - Total noninterest expense for the nine months ended September 30, 2025, was $359,881,000, compared to $222,872,000 in 2024, indicating a 61.5% increase[17] Credit Losses and Allowance - The allowance for credit losses (ACL) was $174 million as of September 30, 2025, compared to $83 million at December 31, 2024, representing a significant increase of 109.6%[15] - The provision for credit losses for Q3 2025 was $(985,000), a decrease from $409,000 in Q3 2024, indicating improved credit quality[17] - The provision for credit losses increased significantly to $50,308,000 in 2025 from $6,677,000 in 2024, indicating a substantial rise in expected credit losses[28] Stock and Equity - The company’s common stock increased from 59.55 million shares issued at the end of 2024 to 92.69 million shares as of September 30, 2025, reflecting a growth of 55.6%[15] - Total stockholders' equity as of September 30, 2025, was $2,448,835 thousand, up from $1,402,884 thousand as of September 30, 2024, indicating a growth of 74.6%[23] - Cash dividends on common stock for the nine months ended September 30, 2025, amounted to $58,973 thousand, with a dividend rate of $0.75 per share[23] Acquisitions - Busey completed the acquisition of CrossFirst Bankshares on March 1, 2025, creating a commercial bank with 79 locations across 10 states[72] - The total consideration paid for the CrossFirst acquisition was approximately $808.98 million, resulting in goodwill of $49.6 million[89] - Busey acquired M&M Bank on April 1, 2024, enhancing its service offerings with M&M's Life Equity Loan products and expanding its presence in suburban Chicago[80] - The total consideration for the M&M acquisition was approximately $49.58 million, leading to goodwill of $15.9 million[86] Debt and Liabilities - Long-term borrowings as of September 30, 2025, totaled $92,431,000, with FHLB borrowings at $79,174,000 and a weighted average interest rate of 2.22%[172] - Total lease liabilities rose to $37.858 million as of September 30, 2025, from $11.040 million as of December 31, 2024[160] - The company incurred pre-tax costs to consummate the merger with CrossFirst of $7,531 thousand for the nine months ended September 30, 2025, compared to $1,463 thousand for M&M during the same period[98] Securities and Investments - The fair value of debt securities available for sale as of September 30, 2025, was $2,099,259 thousand, down from an amortized cost of $2,251,731 thousand, resulting in unrealized losses of $162,225 thousand[100] - The total debt securities held to maturity as of September 30, 2025, had a fair value of $659,471 thousand, with an amortized cost of $784,821 thousand, reflecting unrealized losses of $125,350 thousand[100] - Realized net losses on debt securities for the nine months ended September 30, 2025, were $15,549 thousand, compared to $6,817 thousand for the same period in 2024, indicating increased losses from repositioning strategies[107] Loan Portfolio - Total portfolio loans amounted to $7,697,087 thousand, reflecting a significant increase in lending activities[126] - The total commercial real estate (CRE) loans reached $5,424,095 thousand as of September 30, 2025, up from $3,269,564 thousand as of December 31, 2024[118] - The overall risk assessment indicates a healthy loan portfolio with a majority classified as Pass across various segments[128] Lease and Rental Income - Total lease costs for the three months ended September 30, 2025, were $1,897,000, compared to $635,000 for the same period in 2024, representing a 198% increase[162] - Operating cash flows from operating leases for the nine months ended September 30, 2025, were $7,212,000, up from $2,915,000 in 2024, indicating a 147% increase[162] - Rental income for the three months ended September 30, 2025, was $214,000, slightly up from $206,000 in 2024, showing a 4% increase[165] Regulatory and Compliance - Busey does not expect the adoption of ASU 2024-04 regarding convertible debt to impact its financial position as it currently has no convertible debt[65] - Busey is currently evaluating the impact of recently issued accounting standards on its financial position and results of operations[62] - The new federal tax legislation enacted on July 4, 2025, did not have a material impact on Busey's results of operations[51]