First Busey (BUSE) Q1 2025 earnings summary

Executive summary

• Completed the TBV-accretive acquisition of CrossFirst Bankshares, expanding assets to $19.5B and presence to 10 states, with 78 locations and entry into high-growth markets like Dallas, Denver, and Phoenix.

• Q1 2025 reported net loss of $30.0M, driven by $29.2M in non-recurring acquisition and integration expenses, but adjusted net income was $39.9M ($0.57 per share), reflecting strong core performance.

• Integration of CrossFirst expected to deliver 18%+ EPS accretion in 2026, with $25M in annual pre-tax cost saves targeted and 50% realization in 2025.

• Maintained robust capital and liquidity, with a focus on expense control and no dilutive capital raise for the acquisition.

• CrossFirst acquisition exceeded initial projections for tangible book value earn-back period.

Financial highlights

• Total assets grew to $19.5B, loans to $13.9B, and deposits to $16.5B as of March 31, 2025, driven by the CrossFirst acquisition.

• Net interest income rose to $103.7M, up 36.6% year-over-year, with net interest margin expanding to 3.16% from 2.79% in Q1 2024.

• Adjusted pre-provision net revenue reached $54.7M, up from $42.0M in Q4 2024.

• Noninterest income (excluding securities losses) was $37.0M, 26.3% of operating revenue; noninterest expense increased 62.7% to $115.17M due to acquisition costs.

• Allowance for credit losses at 1.41% of loans, with $42.4M Day 2 provision for CrossFirst.

Outlook and guidance

• Projected net interest margin expansion in Q2 2025 as excess cash is deployed and non-core funding is reduced.

• Annual pre-tax expense synergies from CrossFirst estimated at $25M, with 50% expected in 2025 and full realization in 2026.

• Growth in higher-yielding assets expected to offset funding cost pressures; focus on integration and realizing merger benefits.