First Busey Q4 Adjusted EPS Rises to $0.68 as NIM Widens 76 bps
First Busey delivered Q4 adjusted EPS of $0.68, beating estimates by $0.07, as net interest margin widened 76 bps to 3.71% and adjusted ROAA improved 39 bps to 1.41%. Tangible book value per share rose 13.1% year-over-year, and the bank repurchased $29.8 M in Q4.
1. Q4 Earnings Outperform Estimates
First Busey reported fourth-quarter net income of $60.8 million, or $0.63 per diluted share, compared with $28.1 million, or $0.49 per diluted share, in the year-ago quarter. On an adjusted basis, which excludes certain one-time items and non-operating gains and losses, diluted EPS was $0.68, topping the Zacks Consensus Estimate of $0.61 and up from $0.53 a year earlier. Annualized adjusted return on average assets rose to 1.41%, and adjusted return on average tangible common equity climbed to 13.58%, underscoring improved profitability following the CrossFirst merger integration.
2. Net Interest Margin and Fee Income Strength
Busey’s net interest margin expanded by 76 basis points sequentially to 3.71% on an adjusted basis, driven by disciplined deposit cost control. Portfolio loans averaged $13.6 billion, generating $208.4 million in interest income at a 6.10% yield. Wealth management fee income set a quarterly record as assets under care increased 4.7% from the prior quarter to $15.66 billion, fueled by strong investment performance and positive net flows from both new and legacy markets.
3. Capital Position and Balance Sheet Highlights
Capital ratios remained robust, with Common Equity Tier 1 capital to risk-weighted assets at 12.44%, up 11 basis points sequentially, and tangible common equity to tangible assets rising to 10.06%. Tangible book value per common share increased 13.1% year-over-year, even after repurchasing $29.8 million of stock in the quarter and $69.9 million for the full year. Loan balances held steady, while deposits declined by $164.2 million due to the targeted runoff of $180.0 million of brokered and high-cost non-relationship funding, reflecting the company’s strategic funding optimization.
4. Executive Leadership Updates
The Board announced the immediate separation of Michael J. Maddox and extended Van A. Dukeman’s tenure by at least two years, consolidating his roles as Chairman, President of First Busey Corporation and CEO of Busey Bank. T. Anthony Hammond was appointed President of Busey Bank. These leadership adjustments aim to ensure continuity through the current phase of strategic integration and to support growth initiatives across Busey’s markets.