On July 23, 2024, First Busey Corp (BUSE, Financial) released its 8-K filing for the second quarter of 2024, reporting a net income of $27.4 million and diluted earnings per share (EPS) of $0.47. This performance surpassed the analyst estimate of $0.44 EPS. The company also reported a quarterly revenue of $116.35 million, aligning with market expectations.
First Busey Corporation is a financial holding company, whose subsidiaries provide retail and commercial banking services, remittance processing, and offer financial products and services with banking centers in Illinois, Missouri, Florida, and Indiana. The company's operations are managed through three operating segments: Banking, FirsTech, and Wealth Management, with the banking segment generating the majority of its revenue.
Performance and Challenges
First Busey Corp (BUSE, Financial) reported a net income of $27.4 million for Q2 2024, a slight increase from $26.2 million in Q1 2024 but a decrease from $29.4 million in Q2 2023. The diluted EPS of $0.47 also showed a marginal improvement from $0.46 in the previous quarter. Adjusted net income, which excludes acquisition and restructuring expenses, was $29.0 million, or $0.50 per diluted share.
Despite the positive earnings, the company faced challenges, including a one-time deferred tax valuation adjustment of $1.4 million due to changes in Illinois apportionment rates. This adjustment increased the effective tax rate to 28.8% for the quarter, compared to an adjusted rate of 25.0% without the adjustment.
Financial Achievements
First Busey Corp (BUSE, Financial) achieved several financial milestones in Q2 2024:
- Net interest margin increased by 24 basis points to 3.03% from 2.79% in the prior quarter.
- Record high quarterly revenue for both the Wealth Management and FirsTech operating segments.
- Completion of the acquisition and integration of Merchants & Manufacturers Bank Corporation (M&M).
- Tangible book value per common share increased to $16.97, an 11.3% year-over-year increase.
Income Statement Highlights
Key details from the income statement include:
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $27.4 million | $26.2 million | $29.4 million |
| Diluted EPS | $0.47 | $0.46 | $0.52 |
| Net Interest Margin | 3.03% | 2.79% | 2.86% |
Balance Sheet and Cash Flow
First Busey Corp (BUSE, Financial) reported total assets of $11.97 billion as of June 30, 2024, compared to $11.89 billion as of March 31, 2024. Portfolio loans totaled $8.00 billion, up from $7.59 billion in the previous quarter, primarily due to the M&M acquisition. Total deposits were $9.98 billion, slightly up from $9.96 billion in Q1 2024.
Commentary and Analysis
"Our fee-based businesses continue to add revenue diversification. Total noninterest income was $33.8 million for the second quarter of 2024, compared to $35.0 million for the first quarter of 2024 and $28.0 million for the second quarter of 2023."
First Busey Corp (BUSE, Financial) has demonstrated resilience and strategic growth through its acquisitions and diversified revenue streams. The increase in net interest margin and the successful integration of M&M Bank are significant achievements that position the company well for future growth. However, the one-time tax adjustment and increased noninterest expenses highlight areas that require careful management.
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Explore the complete 8-K earnings release (here) from First Busey Corp for further details.
