On April 22, 2025, First Busey Corp (BUSE, Financial) released its 8-K filing detailing the financial results for the first quarter of 2025. The company, a financial holding entity with subsidiaries offering retail and commercial banking services, reported a net loss of $30.0 million, or $(0.44) per diluted share, missing the analyst estimate of $(0.04) per share. However, revenue reached $140.77 million, meeting expectations.
Company Overview and Strategic Acquisition
First Busey Corporation operates through three segments: Banking, FirsTech, and Wealth Management, with the banking segment being the primary revenue generator. The recent acquisition of CrossFirst Bankshares, Inc., completed on March 1, 2025, significantly influenced the quarter's results, expanding Busey's footprint across 10 states and enhancing its commercial banking capabilities.
Financial Performance and Challenges
The acquisition of CrossFirst Bankshares was transformative, yet it contributed to a challenging quarter for First Busey Corp. The company reported a net loss, contrasting with a net income of $28.1 million in the previous quarter. The loss was primarily due to acquisition-related expenses and strategic balance sheet repositioning, which included a $42.4 million provision for credit losses and $15.8 million in net securities losses.
Financial Achievements and Industry Context
Despite the net loss, First Busey Corp achieved an adjusted net income of $39.9 million, or $0.57 per diluted share, surpassing the previous quarter's adjusted earnings. This adjustment reflects the exclusion of non-operating items, providing a clearer view of core earnings performance. The adjusted return on average assets was 1.09%, and the adjusted return on average tangible common equity was 10.64%, indicating strong operational performance when excluding one-time expenses.
Key Financial Metrics and Statements
Net interest income rose to $103.7 million, up from $81.6 million in the previous quarter, driven by increased loan yields and the acquisition's impact. The net interest margin improved to 3.16%. CrossFirst contributed 12 basis points to this increase. However, noninterest income decreased by 39.7% due to strategic repositioning losses.
| Metric | Q1 2025 | Q4 2024 | Q1 2024 |
|---|---|---|---|
| Net Interest Income | $103.7 million | $81.6 million | $75.9 million |
| Net Interest Margin | 3.16% | 2.95% | 2.79% |
| Adjusted Net Income | $39.9 million | $30.9 million | $25.7 million |
Analysis and Future Outlook
The acquisition of CrossFirst Bankshares is expected to be accretive to tangible book value, with a projected six-month earn-back period. The integration of CrossFirst's operations is anticipated to enhance Busey's market presence and operational efficiency. However, the immediate financial impact includes increased expenses and strategic repositioning costs, which have temporarily affected profitability.
The transformative partnership between Busey and CrossFirst takes our organization to new heights, combining our growing commercial bank with the power of Busey's core deposit franchise, wealth management platform, and payment technology solutions at FirsTech, Inc." - Van A. Dukeman, Chairman and CEO
First Busey Corp's strategic focus on expanding its commercial banking capabilities and enhancing its financial technology solutions positions it well for future growth. However, the company must navigate the challenges of integrating CrossFirst's operations and managing increased expenses to realize the full benefits of the acquisition.
Explore the complete 8-K earnings release (here) from First Busey Corp for further details.
