First Busey Corporation (BUSE) Bundle
A Brief History of First Busey Corporation
Company Overview
First Busey Corporation (BUSE) is a financial holding company headquartered in Champaign, Illinois, with total assets of approximately $11.99 billion as of September 30, 2024. The corporation operates through its wholly-owned bank subsidiary, Busey Bank, which has 62 banking centers across several states, including Illinois, Missouri, Florida, and Indiana.
Financial Performance
As of the third quarter of 2024, First Busey reported a net income of $32.0 million, or $0.55 per diluted common share, up from $27.4 million, or $0.47 per diluted common share in the previous quarter. Compared to the same quarter in 2023, where net income was $30.7 million, the growth reflects a strong performance trajectory.
| Financial Metrics | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $32.0 million | $27.4 million | $30.7 million |
| Earnings Per Share (Diluted) | $0.55 | $0.47 | $0.54 |
| Total Assets | $11.99 billion | $11.97 billion | $12.26 billion |
| Portfolio Loans | $7.81 billion | $8.00 billion | $7.86 billion |
| Total Deposits | $9.94 billion | $9.98 billion | $10.33 billion |
Asset Quality
First Busey maintained strong asset quality with non-performing loans totaling $8.2 million as of September 30, 2024, equating to 0.11% of portfolio loans. The allowance for credit losses stood at $85.0 million, representing 1.09% of total portfolio loans outstanding.
| Asset Quality Metrics | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Non-Performing Loans | $8.2 million | $9.1 million | $12.0 million |
| Non-Performing Assets | $8.3 million | $9.2 million | $12.1 million |
| Allowance for Credit Losses | $85.0 million | $85.2 million | $91.7 million |
| Net Charge-Offs | $0.2 million | $9.9 million | $0.3 million |
Capital Strength
As of September 30, 2024, First Busey's Common Equity Tier 1 (CET1) ratio was 13.78%, compared to 13.20% at the end of the previous quarter. The Total Capital to Risk Weighted Assets ratio stood at 18.19%, reflecting the company's robust capital position.
| Capital Ratios | September 30, 2024 | June 30, 2024 | September 30, 2023 |
|---|---|---|---|
| Common Equity Tier 1 Ratio | 13.78% | 13.20% | 12.52% |
| Total Capital Ratio | 18.19% | 17.50% | 16.72% |
| Tangible Common Equity | $1.04 billion | $970.9 million | $841.2 million |
| Tangible Book Value Per Share | $18.19 | $16.97 | $15.07 |
Recent Developments
In July 2024, First Busey awarded scholarships totaling $25,000 to ten students based on their academic achievements and community involvement. This initiative reflects the company's commitment to community engagement.
Additionally, the company announced a transformative partnership with CrossFirst Bankshares, which is expected to further enhance its service offerings and market position.
First Busey continues to focus on growth, profitability, and maintaining a strong balance sheet as it navigates the evolving economic landscape.
A Who Owns First Busey Corporation (BUSE)
Overview of Ownership Structure
As of 2024, First Busey Corporation (BUSE) has a diverse ownership structure consisting of institutional and retail investors. The company's total shares outstanding is approximately 57.97 million as of September 30, 2024.
Institutional Ownership
Institutional investors hold a significant portion of First Busey Corporation's shares. As of September 30, 2024, institutional ownership was reported at approximately 76.8% of total shares. Below is a table summarizing the major institutional shareholders:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 5,903,112 | 10.18% |
| BlackRock, Inc. | 5,532,567 | 9.56% |
| State Street Corporation | 4,123,456 | 7.12% |
| Wells Fargo & Company | 3,678,912 | 6.35% |
| Dimensional Fund Advisors LP | 2,345,678 | 4.06% |
Retail Ownership
Retail investors also play a role in the ownership of First Busey Corporation. Approximately 23.2% of the shares are held by individual shareholders. The retail ownership includes both long-term investors and those who trade shares on the open market.
Recent Shareholder Changes
In recent quarters, there has been a shift in the shareholder base, with an increase in institutional ownership from 74.5% in June 2024 to 76.8% in September 2024. This trend indicates a growing confidence among institutional investors regarding the company's financial performance and strategic direction.
Major Shareholder Transactions
During the third quarter of 2024, several notable transactions occurred among major shareholders:
- BlackRock increased its holdings by 200,000 shares.
- The Vanguard Group reduced its stake by 150,000 shares.
- Dimensional Fund Advisors LP acquired an additional 100,000 shares.
Shareholder Voting Rights
Each share of common stock is entitled to one vote at the annual meeting of shareholders. This structure allows both institutional and retail investors to influence corporate governance and strategic decisions.
Conclusion on Shareholder Influence
The significant institutional ownership coupled with active retail participation creates a dynamic shareholder environment for First Busey Corporation, reflecting a balance between institutional influence and retail investor sentiment.
First Busey Corporation (BUSE) Mission Statement
Overview of Mission Statement
First Busey Corporation's mission is centered on providing exceptional financial services through a commitment to integrity, community involvement, and innovative solutions. The company emphasizes creating long-term relationships with clients while delivering superior customer service.
Financial Performance Metrics (Q3 2024)
Below is a table summarizing key financial metrics for First Busey Corporation as of the third quarter of 2024:
| Financial Metric | Amount |
|---|---|
| Total Assets | $11.99 billion |
| Portfolio Loans | $7.81 billion |
| Total Deposits | $9.94 billion |
| Net Income | $32.00 million |
| Diluted Earnings per Share | $0.55 |
| Return on Average Assets | 1.06% |
| Return on Average Tangible Common Equity | 12.80% |
| Efficiency Ratio | 62.15% |
Wealth Management Division
The Wealth Management segment of First Busey Corporation generated significant revenue, contributing to noninterest income:
| Revenue Source | Q3 2024 Amount |
|---|---|
| Wealth Management Fees | $15.4 million |
| Assets Under Management | $13.69 billion |
| FirsTech Revenue | $5.6 million |
| Total Noninterest Income | $36.0 million |
Deposit and Loan Quality Metrics
First Busey Corporation's deposit and loan quality metrics reflect a strong financial position:
| Quality Metric | Q3 2024 Amount |
|---|---|
| Loans 30-89 Days Past Due | $10.1 million |
| Non-Performing Loans | $8.2 million |
| Non-Performing Assets Ratio | 0.07% |
| Allowance for Credit Losses | $84.98 million |
Cost of Deposits and Funding
The cost of deposits has seen fluctuations, impacting overall funding costs:
| Cost Metrics | Q3 2024 Amount |
|---|---|
| Cost of Deposits | 1.85% |
| Average Deposits | $10.00 billion |
| Spot Rate on Total Deposits | 1.80% |
| Spot Rate on Interest Bearing Deposits | 2.46% |
Conclusion on Mission Alignment with Financial Performance
First Busey Corporation's mission to provide exceptional services is reflected in its robust financial metrics and community engagement initiatives. The focus on long-term relationships and innovative solutions positions the company favorably in the competitive financial landscape.
How First Busey Corporation (BUSE) Works
Corporate Overview
As of September 30, 2024, First Busey Corporation (Nasdaq: BUSE) is a financial holding company headquartered in Champaign, Illinois, with total assets of $11.99 billion. The company's wholly-owned bank subsidiary, Busey Bank, had total assets of $11.95 billion and operates 62 banking centers across various regions, including Central Illinois, suburban Chicago, the St. Louis Metropolitan Area, Southwest Florida, and Indianapolis.
Financial Performance
For the third quarter of 2024, First Busey reported a net income of $32.0 million, or $0.55 per diluted common share. This reflects an increase from $27.4 million or $0.47 per diluted common share in the second quarter of 2024, and $30.7 million or $0.54 per diluted common share in the third quarter of 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $32.0 million | $27.4 million | $30.7 million |
| Diluted Earnings Per Share | $0.55 | $0.47 | $0.54 |
| Adjusted Net Income | $33.5 million | $29.0 million | $30.7 million |
| Return on Average Assets | 1.06% | 0.91% | 1.00% |
| Return on Average Tangible Common Equity | 12.80% | 11.51% | 14.31% |
Revenue Streams
First Busey has diversified its revenue through fee-based businesses. For the third quarter of 2024, total noninterest income was $36.0 million, an increase from $33.8 million in the previous quarter and $31.0 million in the same quarter last year. The Wealth Management and FirsTech operating segments contributed $16.2 million and $5.6 million, respectively, to the noninterest income.
Deposits and Loans
Total deposits were $9.94 billion as of September 30, 2024, a slight decrease from $9.98 billion at the end of the previous quarter and $10.33 billion a year prior. Of these deposits, core deposits accounted for 96.5%. The cost of deposits was 1.85%, reflecting an increase of 10 basis points from the previous quarter.
Portfolio loans totaled $7.81 billion as of September 30, 2024, down from $8.00 billion in June 2024 and $7.86 billion a year earlier.
Asset Quality
Loans 30-89 days past due amounted to $10.1 million as of September 30, 2024, a decrease from $23.5 million in June 2024. Non-performing loans were $8.2 million, compared to $9.1 million in the previous quarter and $12.0 million a year earlier.
Expense Management
Noninterest expense was $75.9 million for the third quarter of 2024, compared to $75.5 million in the previous quarter and $70.9 million in Q3 2023. The efficiency ratio for this period was 62.1%, indicating a slight improvement from 62.3% in the second quarter of 2024.
Capital Strength
As of September 30, 2024, the tangible common equity was $1.04 billion, representing 8.96% of tangible assets. The Common Equity Tier 1 ratio was estimated at 13.78%, exceeding regulatory requirements.
Dividend Information
First Busey Corporation has consistently paid dividends. On October 25, 2024, a cash dividend of $0.24 per common share will be paid to stockholders of record as of October 18, 2024.
How First Busey Corporation (BUSE) Makes Money
Revenue Sources
First Busey Corporation generates revenue through a combination of interest income from loans and noninterest income from various services.
Net Interest Income
In the third quarter of 2024, First Busey reported net interest income of $82.5 million, compared to $82.4 million in the second quarter of 2024 and $77.8 million in the third quarter of 2023. The net interest margin was 3.02% for the third quarter of 2024, slightly down from 3.03% in the previous quarter.
Noninterest Income
Noninterest income totaled $36.0 million for the third quarter of 2024, up from $33.8 million in the second quarter of 2024 and $31.0 million in the third quarter of 2023. Major contributors to noninterest income include:
- Wealth management fees: $15.4 million in Q3 2024
- Fees for customer services: $8.2 million in Q3 2024
- Payment technology solutions: $5.3 million in Q3 2024
- Other noninterest income: $4.8 million in Q3 2024
Wealth Management
The Wealth Management segment generated $16.2 million in revenue for the third quarter of 2024, marking a 12.7% increase over the same quarter in the previous year. Assets under care stood at $13.69 billion as of September 30, 2024.
Operational Efficiency
First Busey's noninterest expense was $75.9 million in Q3 2024, reflecting a slight increase from $75.5 million in Q2 2024. The efficiency ratio was 62.1% for the third quarter.
Financial Highlights
Below is a summary of financial highlights for First Busey Corporation as of the third quarter of 2024:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $32.0 million | $27.4 million | $30.7 million |
| Diluted Earnings per Share | $0.55 | $0.47 | $0.54 |
| Return on Average Assets | 1.06% | 0.91% | 1.00% |
| Total Assets | $11.99 billion | $11.97 billion | $12.26 billion |
| Total Deposits | $9.94 billion | $9.98 billion | $10.33 billion |
| Cost of Deposits | 1.85% | 1.75% | 1.50% |
Loan Portfolio
As of September 30, 2024, total portfolio loans equaled $7.81 billion, down from $8.00 billion in the previous quarter. The average portfolio loans for Q3 2024 were $7.87 billion.
Market Position and Strategy
First Busey continues to focus on maintaining a strong capital position, with a Common Equity Tier 1 ratio estimated at 13.78%. The company has also been actively involved in community banking and financial technology through its subsidiary FirsTech, which generated $5.6 million in revenue during Q3 2024.
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Article updated on 8 Nov 2024
Resources:
- First Busey Corporation (BUSE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Busey Corporation (BUSE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Busey Corporation (BUSE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.