First Busey(US:BUSE)2026-01-27 22:01Financial Performance - Fourth quarter 2025 net income was $60.8 million, or $0.63 per diluted common share, compared to $57.1 million, or $0.58 per diluted common share, in Q3 2025, and $28.1 million, or $0.49 per diluted common share, in Q4 2024[7] - Adjusted net income for Q4 2025 was $65.2 million, or $0.68 per diluted common share, up from $57.4 million, or $0.64 per diluted common share, in Q3 2025, and $30.9 million, or $0.53 per diluted common share, in Q4 2024[13] - Full year 2025 net income totaled $135.3 million, or $1.47 per diluted common share, with a return on average assets of 0.76%[7] - Pre-provision net revenue for Q4 2025 was $80.6 million, compared to $76.6 million in Q3 2025 and $38.4 million in Q4 2024[14] - Net interest income for Q4 2025 was $157,558,000, up from $155,137,000 in Q3 2025, and significantly higher than $81,578,000 in Q4 2024[62] - Total noninterest income reached $42,691,000 in Q4 2025, compared to $41,198,000 in Q3 2025 and $35,221,000 in Q4 2024[62] - Adjusted net income (Non-GAAP) for Q4 2025 was $65,186,000, compared to $62,496,000 in Q3 2025 and $30,872,000 in Q4 2024[66] - Diluted earnings per common share (GAAP) for Q4 2025 was $0.63, up from $0.58 in Q3 2025 and $0.49 in Q4 2024[66] Interest Income and Margin - Net interest margin expanded by 76 basis points to 3.71% in Q4 2025, driven by strong deposit cost control[4] - Total interest income for Q4 2025 was $235.1 million, compared to $244.5 million in Q3 2025 and $131.3 million in Q4 2024[8] - Net interest income increased by $2.4 million in Q4 2025 compared to Q3 2025, primarily due to funding cost optimization initiatives[19] - Total interest-earning assets for Q4 2025 were $16,941 million, with a net interest margin of 3.71%[18] - Total deposits cost of funds decreased from 2.15% in Q3 2025 to 1.91% in Q4 2025, with a spot rate of 1.80% at the end of Q4 2025[20] - Tax-equivalent net interest income (Non-GAAP) reached $158,418,000 in Q4 2025, compared to $155,925,000 in Q3 2025 and $82,024,000 in Q4 2024[71] Noninterest Income and Expenses - Total noninterest expense for Q4 2025 was $120.3 million, compared to $120.0 million in Q3 2025 and $78.6 million in Q4 2024[8] - Total noninterest income for Q4 2025 was $42,691 thousand, a 3.6% increase from Q3 2025 and a 21.2% increase from Q4 2024[21] - Adjusted noninterest income (Non-GAAP) for Q4 2025 was $43,358,000, compared to $41,530,000 in Q3 2025 and $35,417,000 in Q4 2024[71] - Total noninterest expense increased by 0.3% compared to Q3 2025, primarily due to increases in other noninterest expenses[25] - Compared to Q4 2024, total noninterest expense increased by 53.0%, mainly due to nonrecurring acquisition expenses related to the CrossFirst acquisition[25] - Adjusted noninterest expense for Q4 2025 was $111.072 million, a 2.3% increase from Q3 2025 and a 52.8% increase from Q4 2024[26] Asset and Deposit Management - Total assets as of December 31, 2025, were $18,309 million, compared to $18,662 million at September 30, 2025[18] - Total deposits were $14.906 billion as of December 31, 2025, compared to $15.070 billion as of September 30, 2025, and $9.982 billion as of December 31, 2024[31] - Loan balances remained stable quarter-over-quarter, while deposits decreased by $164.2 million due to a strategic reduction of brokered and high-cost funding[4] - Core deposits accounted for 93.7% of total deposits as of December 31, 2025, with 37% estimated to be uninsured and uncollateralized[43] - Total portfolio loans were $13.568 billion as of December 31, 2025, a slight decrease from $13.598 billion as of September 30, 2025, and an increase from $7.697 billion as of December 31, 2024[33] Risk Management and Economic Conditions - Busey faces various risks that could materially affect its financial results, including economic conditions, regulatory changes, and competition in the financial services sector[77] - The company is particularly concerned about the impact of elevated interest rates on its assets and the potential for increased competition from non-bank entities such as fintech companies[77] - Busey has highlighted the importance of managing liquidity risk, which may increase reliance on non-core funding sources and affect its cost of funds[77] - The company is also focused on maintaining an adequate level of allowance for credit losses on loans to mitigate credit risk[77] - Busey is monitoring the economic impact of external events such as climate change and natural disasters on its operations and customer base[77] Capital and Efficiency Ratios - Capital position remained strong, with Common Equity Tier 1 Capital to Risk Weighted Assets at 12.44%, a 11 basis point increase from the prior quarter[4] - Busey's efficiency ratio was 57.4% for Q4 2025, an improvement from 58.5% in Q3 2025 and 64.8% in Q4 2024[27] - The efficiency ratio (Non-GAAP) improved to 57.43% in Q4 2025 from 58.51% in Q3 2025 and 64.84% in Q4 2024[71] - The tangible common equity to tangible assets ratio (Non-GAAP) was 10.06% as of December 31, 2025, up from 9.88% as of September 30, 2025[73] Stock and Dividends - Busey executed stock repurchases of 1,251,100 shares at an average price of $23.84 per share for a total of $29.8 million in Q4 2025[48] - Busey paid a cash dividend of $0.25 per share in Q4 2025, with a planned increase to $0.26 per share in January 2026[46][47]