First Busey Corporation Announces 2025 Third Quarter Earnings

Core Insights - First Busey Corporation reported a net income of $57.1 million for Q3 2025, an increase from $47.4 million in Q2 2025 and $32.0 million in Q3 2024, with diluted EPS at $0.58 [3][4] - The adjusted net income available to common stockholders was $57.4 million, or $0.64 per diluted common share, reflecting a slight increase from $57.2 million in Q2 2025 [5][6] - The company optimized its balance sheet, resulting in an improved adjusted return on average assets of 1.33% and a net interest margin of 3.58%, up 9 basis points from the previous quarter [2][12] Financial Performance - Total interest income for Q3 2025 was $244.5 million, while total interest expense was $89.4 million, leading to a net interest income of $155.1 million [4][13] - Noninterest income decreased by 8.2% compared to Q2 2025, primarily due to a decline in net securities gains, but increased by 14.9% compared to Q3 2024 [13][15] - Total noninterest expense was $120.0 million, a decrease of 6.1% from Q2 2025, but an increase of 58.9% from Q3 2024, largely due to acquisition-related costs [16][17] Asset Quality - The allowance for credit losses was $174.2 million, representing 1.28% of total portfolio loans, with a coverage ratio of 3.67 times non-performing loans [30][31] - Non-performing assets decreased slightly to $57.7 million, accounting for 0.32% of total assets, while classified assets fell to $161.1 million [29][30] Deposits and Borrowings - Total deposits amounted to $15.1 billion, with a strategic reduction of high-cost, non-relationship deposits by $794.6 million during the quarter [35][36] - Core deposits represented 93.8% of total deposits, indicating a strong deposit franchise [36] - Total borrowings increased by 2.3% from Q2 2025, totaling $273.0 million, with no short-term borrowings reported [39] Balance Sheet Strength - Total assets as of September 30, 2025, were $18.2 billion, a decrease from $18.9 billion at the end of Q2 2025 [26][20] - Common Equity Tier 1 Capital grew to 12.33%, reflecting strong capital levels [2][3]