FIRST BUSEY CORP /NV/ SEC 10-Q Report

First Busey Corporation has released its Q3 2025 Form 10-Q report, highlighting a total interest income of $166.8 million and a net loss of $30 million. The report reflects significant developments, including the acquisition of CrossFirst Bank, which expanded its geographical presence and loan portfolio. The company plans to merge CrossFirst Bank with Busey Bank by June 2025, aiming for operational synergies. Despite challenges, First Busey remains committed to innovation in its FirsTech segment and managing credit risk effectively.

First Busey Corporation, a diversified financial services company, has released its Form 10-Q report for the third quarter of 2025. The report provides a comprehensive overview of the company's financial performance and operational highlights, reflecting significant developments and strategic initiatives undertaken during the period.

Financial Highlights

Total Interest Income: $166.8 million, reflecting a significant increase from the previous year due to higher interest and fees on loans.
Net Interest Income: $103.7 million, an increase driven by higher interest income despite a rise in interest expenses.
Provision for Credit Losses: $42.5 million, a substantial increase compared to the previous year, primarily due to the establishment of an ACL on acquired loans.
Total Noninterest Income: $21.2 million, a decrease from the previous year, impacted by realized net losses on securities.
Total Noninterest Expense: $115.2 million, an increase due to higher salaries, wages, and employee benefits, as well as professional fees.
Net Income (Loss): $(30.0) million, a decline from the previous year, influenced by increased provision for credit losses and noninterest expenses.
Basic Earnings (Loss) Per Common Share: $(0.44), reflecting the net loss for the period.
Diluted Earnings (Loss) Per Common Share: $(0.44), consistent with the basic earnings per share due to the net loss.

Business Highlights

Segment Performance: First Busey Corporation operates in three segments: Banking, Wealth Management, and FirsTech. The Banking segment provides a full range of banking services across multiple states, including Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas. The Wealth Management segment offers asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services. The FirsTech segment provides payment technology solutions, including online, mobile, and voice-recognition bill payments.
Geographical Expansion: The acquisition of CrossFirst Bank has expanded First Busey's presence in the Midwest, Southwest, and Florida, with 78 full-service locations across 10 states. This strategic move is expected to enhance the company's market reach and operational capabilities in these regions.
Operational Integration: Following the acquisition of CrossFirst Bank, its results of operations have been included in First Busey's consolidated results beginning March 1, 2025. The integration process is ongoing, with CrossFirst Bank expected to merge with Busey Bank by June 20, 2025, further consolidating operations.
Future Outlook: First Busey Corporation plans to continue operating CrossFirst Bank as a separate banking subsidiary until the merger with Busey Bank. This strategic integration is anticipated to create synergies and enhance service capabilities in the newly acquired markets.
Lease Commitments: The company has operating leases primarily for equipment and real estate, with lease terms extending through 2042. The acquisition of CrossFirst Bank added significant right of use assets, indicating an expansion in operational facilities.
Loan Portfolio Growth: The acquisition of CrossFirst Bank has significantly increased First Busey's loan portfolio, with notable growth in commercial loans, including C&I, CRE, and real estate construction loans. This expansion is expected to enhance the company's lending capabilities and market presence.
Risk Management: First Busey Corporation utilizes a comprehensive loan grading system to manage credit risk, with regular reviews of commercial loans to ensure credit quality. This system is crucial for maintaining the health of the loan portfolio amid expansion.
Commitment to Innovation: The FirsTech segment continues to provide innovative payment technology solutions, supporting the company's commitment to offering comprehensive financial services and enhancing customer experience.

SEC Filing: FIRST BUSEY CORP /NV/ [ BUSE ] - 10-Q - May. 09, 2025