First Busey Corporation Announces 2025 Second Quarter Earnings

Core Insights - First Busey Corporation reported a net income of $47.4 million for the second quarter of 2025, a significant recovery from a net loss of $30.0 million in the first quarter of 2025, and an increase from $27.4 million in the second quarter of 2024 [6][8][48] - The acquisition of CrossFirst Bank has been a transformative event, contributing positively to the financial results and expanding the bank's service offerings [3][6] Financial Performance - Net interest income for the second quarter of 2025 was $153.2 million, up from $103.7 million in the first quarter of 2025 and $82.5 million in the second quarter of 2024 [11][12] - The net interest margin increased to 3.49% in the second quarter of 2025, compared to 3.16% in the first quarter of 2025 and 3.03% in the second quarter of 2024 [12][13] - Adjusted net income, excluding non-GAAP adjustments, was $57.4 million, or $0.63 per diluted common share, for the second quarter of 2025, compared to $39.9 million in the first quarter of 2025 [8][21] Noninterest Income - Total noninterest income increased by 111.4% compared to the first quarter of 2025 and by 33.1% compared to the second quarter of 2024, primarily due to net securities gains and the contribution from the CrossFirst acquisition [15][16] - Adjusted noninterest income, excluding net securities gains and losses, increased by 5.1% to $38.9 million in the second quarter of 2025 [16][17] Noninterest Expense - Total noninterest expense rose by 14.1% compared to the first quarter of 2025 and by 68.4% compared to the second quarter of 2024, largely due to acquisition-related costs and increased operational expenses [21][22] - Adjusted noninterest expense, excluding acquisition and restructuring expenses, was $106.6 million in the second quarter of 2025, a 28.6% increase from the first quarter of 2025 [22] Asset Quality - The allowance for credit losses was $183.3 million as of June 30, 2025, representing 1.33% of total portfolio loans, with a coverage ratio of 3.36 times non-performing loans [43][41] - Non-performing loans were 0.40% of portfolio loans as of June 30, 2025, reflecting a slight increase from the previous quarter [41][42] Balance Sheet Strength - Total assets were $18.92 billion as of June 30, 2025, down from $19.46 billion as of March 31, 2025, but up from $11.97 billion a year earlier [32][26] - Total deposits were $15.80 billion at June 30, 2025, compared to $16.46 billion at March 31, 2025, with a deliberate run-off of higher-cost brokered deposits contributing to the decrease [48][49]