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LEAWOOD, Kan., Jan. 27, 2026 (GLOBE NEWSWIRE) -- First Busey Corporation (NASDAQ:BUSE) Announces 2025 Fourth Quarter Earnings.Net Income Diluted EPS Net Interest Margin1 ROAA1 ROATCE1 $60.8 million$65.2 million (adj)2 $0.63$0.68 (adj)2 3.71%3.59% (adj)2 1.32%1.41% (adj)2 12.59%13.58% (adj)2 MESSAGE FROM OUR CHAIRMAN, PRESIDENT, & CEOOur results this quarter represent a meaningful culmination to a year of strong performance and the completed merger and integration of CrossFirst. Profitability in the fourth quarter showed vast improvement from last year with adjusted return on average assets2 improving 39 basis points to 1.41% and net interest margin2 expanding 76 basis points to 3.71%, driven by continued strong deposit cost control. Wealth management fee income had a record quarter as assets under care were up 4.7% quarter-over-quarter to $15.66 billion driven by strong investment performance and positive net flows from new and legacy markets. Capital remained strong, and Common Equity Tier 1 Capital to Risk Weighted Assets3 grew to 12.44%, a 11 basis point increase from the prior quarter. Tangible common equity to tangible assets2 grew to 10.06% with tangible book value per common share2 increasing 13.1% over the prior year end, even as we repurchased $29.8 million of stock in the fourth quarter and $69.9 million for the full year. Loan balances were stable quarter-over-quarter and deposits were down $164.2 million due to the intentional runoff of $180.0 million as Busey continued its strategic, targeted reduction of brokered and high-cost, non-relationship funding. As we look forward to 2026, Busey is well positioned to navigate diverse macroeconomic scenarios given its robust capital and liquidity position and disciplined credit and risk management culture.Van A. DukemanChairman, President, and CEO of First Busey Corporation and Chairman and CEO of Busey BankORGANIZATIONAL UPDATEThe First Busey Corporation Board of Directors announced today that Michael J. Maddox has separated from the company, effective immediately. Current Chairman and CEO of First Busey Corporation, Van A. Dukeman, has agreed to serve the company for at least two more years and assume the roles of President of First Busey Corporation and CEO of Busey Bank. Further, the Board appointed T. Anthony (Tony) Hammond, Busey Bank's current President of Regional Banking, to serve as President of Busey Bank. Please see 8-K dated January 27, 2026, for additional information.FINANCIAL RESULTSFourth quarter 2025 net income for First Busey Corporation, together with its consolidated subsidiaries ("Busey," the "Company," "we," "us,", or "our") was $60.8 million, or $0.63 per diluted common share, compared to $57.1 million, or $0.58 per diluted common share, for the third quarter of 2025, and $28.1 million, or $0.49 per diluted common share, for the fourth quarter of 2024. Annualized return on average assets2 and annualized return on average tangible common equity2 were 1.32% and 12.59%, respectively, for the fourth quarter of 2025. Total noninterest expense and adjusted noninterest expense were impacted by a $3.8 million operating loss tied to one relationship.Taking into account our fourth quarter results, full year 2025 net income was $135.3 million, or $1.47 per diluted common share. Return on average assets and return on average tangible common equity2 were 0.76% and 7.48%, respectively. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three Months Ended Years Ended(dollars in thousands, except per share amounts)December 31,2025 September 30,2025 December 31,2024 December 31,2025 December 31,2024Total interest income$235,094 $244,505 $131,316 $893,860 $523,681 Total interest expense 77,536 89,368 49,738 324,251 201,070 Net interest income 157,558 155,137 81,578 569,609 322,611 Provision for credit losses(i) 2,435 (985) 818 52,743 7,495 Net interest income after provision for credit losses(i) 155,123 156,122 80,760 516,866 315,116 Total noninterest income 42,691 41,198 35,221 149,975 139,682 Total noninterest expense(i) 120,320 120,018 78,622 480,201 301,494 Income before income taxes 77,494 77,302 37,359 186,640 153,304 Income taxes 16,744 20,204 9,254 51,378 39,613 Net income 60,750 57,098 28,105 135,262 113,691 Dividends on preferred stock 4,590 5,131 — 9,876 — Net income available to common stockholders$56,160 $51,967 $28,105 $125,386 $113,691 Basic earnings per common share$0.63 $0.58 $0.49 $1.49 $2.01 Diluted earnings per common share$0.63 $0.58 $0.49 $1.47 $1.98 Effective income tax rate 21.61% 26.14% 24.77% 27.53% 25.84%___________________________________________(i)Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense. Dividends on preferred stock decreased in the fourth quarter of 2025 compared to the third quarter of 2025. Based on the Certificate of Designation, dividends on the Series B Preferred Stock are calculated on the basis of a 360-day year of twelve 30-day months. The first dividend on the Series B Preferred Stock was calculated from the issuance date of May 20, 2025; therefore, it included additional days that resulted in additional dividends of $0.5 million in the third quarter of 2025.Busey views certain non-operating items, including acquisition-related expenses, restructuring charges, and nonrecurring strategic events, as adjustments to net income reported under U.S. generally accepted accounting principles ("GAAP"). We also adjust for net securities gains and losses to align with industry and research analyst reporting. The objective of our presentation of adjusted earnings and adjusted earnings metrics is to allow investors and analysts to more clearly identify quarterly trends in core earnings performance. Pre-tax non-GAAP adjustments were as follows: Three Months Ended Years Ended(dollars in thousands)December 31,2025 September 30,2025 December 31,2024 December 31,2025 December 31,2024Pre-tax non-GAAP adjusting items Realized net (gains) losses on the sale of mortgage servicing rights$— $— $— $— $(7,724)Net securities (gains) losses 667 288 196 10,726 6,102 Other noninterest income — 44 — 44 — Provision for credit losses — — — 49,602 — Salaries, wages, and employee benefits 4,027 5,610 247 37,072 1,580 Data processing 294 424 14 6,984 548 Net occupancy expense of premises 4 9 41 13 46 Furniture and equipment expenses — 66 — 67 88 Professional fees 131 358 2,983 8,100 4,891 Other noninterest expense 360 740 300 2,413 987 Total pre-tax non-GAAP adjustments$5,483 $7,539 $3,781 $115,021 $6,518 For more information and a reconciliation of non-GAAP measures—which are identified with the End Note labeled as 2—in tabular form, see "Non-GAAP Financial Information."Adjusted net income available to common stockholders,2 which excludes the impact of non-GAAP adjustments, was $60.6 million, or $0.68 per diluted common share, for the fourth quarter of 2025, compared to $57.4 million, or $0.64 per diluted common share, for the third quarter of 2025 and $30.9 million, or $0.53 per diluted common share, for the fourth quarter of 2024. Annualized adjusted return on average assets2 and annualized adjusted return on average tangible common equity2 were 1.41% and 13.58%, respectively, for the fourth quarter of 2025.Full-year 2025 adjusted net income available to common stockholders2 was $215.1 million, or $2.53 per diluted common share. Adjusted return on average assets2 and adjusted return on average tangible common equity2 were 1.27% and 12.83%, respectively.Pre-Provision Net Revenue2Pre-provision net revenue2 was $80.6 million for the fourth quarter of 2025, compared to $76.6 million for the third quarter of 2025 and $38.4 million for the fourth quarter of 2024. Pre-provision net revenue to average assets2 was 1.75% for the fourth quarter of 2025, compared to 1.63% for the third quarter of 2025, and 1.26% for the fourth quarter of 2024.Adjusted pre-provision net revenue2 was $85.4 million for the fourth quarter of 2025, compared to $83.9 million for the third quarter of 2025 and $42.0 million for the fourth quarter of 2024. Adjusted pre-provision net revenue to average assets2 was 1.85% for the fourth quarter of 2025, compared to 1.78% for the third quarter of 2025 and 1.38% for the fourth quarter of 2024.Taking into account our fourth quarter results, full year 2025 pre-provision net revenue2 was $250.1 million and adjusted pre-provision net revenue2 was $304.8 million. Pre-provision net revenue to average assets2 and adjusted pre-provision net revenue to average assets2 were 1.41% and 1.72%, respectively.Net Interest Income and Net Interest Margin2Busey's average balances, annualized yield rates, and net interest margins are presented in the tables below: Three Months Ended December 31, 2025 September 30, 2025(dollars in thousands)AverageBalance Income/Expense Yield/Rate(vi) AverageBalance Income/Expense Yield/Rate(vi)Assets Interest-bearing bank deposits and federal funds sold$417,451 $4,101 3.90% $489,730 $5,487 4.45%Investment securities(i)(ii) 2,872,518 22,527 3.11% 2,963,467 24,228 3.24%Restricted bank stock 77,006 783 4.03% 77,041 871 4.49%Loans held for sale 8,705 128 5.83% 9,895 155 6.21%Portfolio loans(i)(iii) 13,565,320 208,415 6.10% 13,732,229 214,552 6.20%Total interest-earning assets(i) 16,941,000 $235,954 5.53% 17,272,362 $245,293 5.63%Noninterest-earning assets 1,368,250 1,390,087 Total assets$18,309,250 $18,662,449 Liabilities and stockholders' equity Interest-bearing transaction deposits$3,207,478 $13,809 1.71% $3,256,326 $16,208 1.97%Savings and money market deposits 5,906,577 36,565 2.46% 6,199,404 44,361 2.84%Time deposits 2,401,447 22,545 3.72% 2,545,749 24,042 3.75%Federal funds purchased and repurchase agreements 162,391 970 2.37% 150,260 976 2.58%Borrowings(iv) 278,050 3,647 5.20% 266,643 3,781 5.63%Total interest-bearing liabilities 11,955,943 $77,536 2.57% 12,418,382 $89,368 2.86%Noninterest-bearing deposits 3,636,001 3,578,164 Other liabilities 248,499 239,995 Stockholders' equity 2,468,807 2,425,908 Total liabilities and stockholders' equity$18,309,250 $18,662,449 Net interest margin(i)(v) $158,418 3.71% $155,925 3.58%___________________________________________(i)On a tax-equivalent basis and assuming a federal income tax rate of 21.0%.(ii)Investment securities include debt securities available for sale, debt securities held to maturity, and equity securities.(iii)Non-accrual loans have been included in average portfolio loans.(iv)Includes, as applicable, short-term borrowings, long-term borrowings, subordinated notes, and junior subordinated debt owed to unconsolidated trusts.(v)For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see "Non-GAAP Financial Information."(vi)Annualized. Years Ended December 31, 2025 2024 (dollars in thousands)AverageBalance Income/Expense Yield/Rate AverageBalance Income/Expense Yield/RateAssets Interest-bearing bank deposits and federal funds sold$575,781 $24,633 4.28% $445,881 $22,441 5.03%Investment securities(i)(ii) 2,925,777 91,333 3.12% 2,726,488 74,282 2.72%Restricted bank stock 65,988 2,956 4.48% 14,414 848 5.88%Loans held for sale 7,257 440 6.06% 8,012 503 6.28%Portfolio loans(i)(iii) 12,756,937 777,474 6.09% 7,804,629 427,300 5.47%Total interest-earning assets(i) 16,331,740 $896,836 5.49% 10,999,424 $525,374 4.78%Noninterest-earning assets 1,398,147 1,052,447 Total assets$17,729,887 $12,051,871 Liabilities and stockholders' equity Interest-bearing transaction deposits$3,076,961 $56,233 1.83% $2,469,664 $42,925 1.74%Savings and money market deposits 5,738,073 154,300 2.69% 3,246,507 74,536 2.30%Time deposits 2,471,023 92,456 3.74% 1,584,953 61,002 3.85%Federal funds purchased and repurchase agreements 149,916 3,708 2.47% 147,786 4,308 2.92%Borrowings(iv) 319,041 17,554 5.50% 314,174 18,299 5.82%Total interest-bearing liabilities 11,755,014 $324,251 2.76% 7,763,084 $201,070 2.59%Noninterest-bearing deposits 3,450,226 2,738,892 Other liabilities 244,188 207,471 Stockholders' equity 2,280,459 1,342,424 Total liabilities and stockholders' equity$17,729,887 $12,051,871 Net interest margin(i)(v) $572,585 3.51% $324,304 2.95%___________________________________________(i)On a tax-equivalent basis and assuming a federal income tax rate of 21.0%.(ii)Investment securities include debt securities available for sale, debt securities held to maturity, and equity securities.(iii)Non-accrual loans have been included in average portfolio loans.(iv)Includes, as applicable, short-term borrowings, long-term borrowings, subordinated notes, and junior subordinated debt owed to unconsolidated trusts.(v)For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see "Non-GAAP Financial Information." Net interest income increased by $2.4 million in the fourth quarter of 2025, compared to the third quarter of 2025, primarily due to applying measured rate cutting initiatives to optimize funding costs. Deposit funding cost reduction during the quarter of 24 basis points represents a 53% beta relative to the quarterly move in the fed funds target average rate.Based on our most recent Asset Liability Management Committee model, a -100 basis point parallel rate shock is expected to decrease net interest income by 1.8% (relative to a current base rate scenario) over the subsequent twelve-month period. Busey continues to evaluate and execute off-balance sheet hedging and balance sheet strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Stability in core deposit balances as well as retail time deposit and savings specials have continued to provide sufficient funding flows to allow intentional runoff of brokered and high-cost, non-relationship funding with no incremental short-term borrowing at quarter-end. Continued targeted reduction of $180.0 million deposits bearing a weighted average cost of 4.16% included $55.0 million of brokered deposits. At December 31, 2025, Busey Bank had $70.1 million of remaining brokered funding, comprising 0.5% of total deposits. Total deposit cost of funds decreased from 2.15% during the third quarter of 2025 to 1.91% during the fourth quarter of 2025. At December 31, 2025, our spot rate on total deposits costs was 1.80%, compared to 2.01% at September 30, 2025.Noninterest Income Three Months Ended Years Ended(dollars in thousands)December 31,2025 September 30,2025 December 31,2024 December 31,2025 December 31,2024NONINTEREST INCOME Wealth management fees$18,101 $17,184 $16,786 $69,426 $63,630 Payment technology solutions 4,879 5,092 5,094 20,000 21,983 Treasury management services 4,726 4,598 2,130 17,322 8,377 Card services and ATM fees 4,660 4,799 3,477 18,048 13,424 Other service charges on deposit accounts 1,618 1,617 2,381 6,281 9,440 Mortgage revenue 803 657 496 2,565 2,075 Income on bank owned life insuranceFull story available on Benzinga.com
