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FIRST BUSEY CORP NV

For the period ended Jun 30, 2024. Filed Aug 6, 2024.

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About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 6, 2024

BUSE$29.11-0.1%Stored close · as of Nov 10, 2026

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Contents

Consolidated Average Balance Sheets and Interest Rates (Unaudited)

The following tables show our unaudited Consolidated Average Balance Sheets (dollars in thousands), detailing the major categories of assets and liabilities, the interest income earned on interest-earning assets, the interest expense paid for interest-bearing liabilities, and the related interest yields for the periods shown. Average information is provided on a daily average basis.

Three Months Ended June 30,
2024 · 2023
AverageBalance · Income/Expense · Yield/Rate5 · AverageBalance · Income/Expense · Yield/Rate5
Assets
Interest-bearing bank deposits and federal funds sold$236,605$3,0275.15%$116,998$1,3114.49%
Investment securities:
U.S. Government obligations6,008533.55%84,9441480.70%
Obligations of states and political subdivisions1148,6471,0682.89%244,0801,7042.80%
Other securities2,582,65818,1302.82%2,926,71719,1212.62%
Loans held for sale9,3531586.79%1,941265.37%
Portfolio loans1, 28,010,636109,8075.51%7,755,61895,1504.92%
Total interest-earning assets1, 310,993,907$132,2434.84%11,130,298$117,4604.23%
Cash and due from banks109,776118,860
Premises and equipment122,958125,205
ACL(93,187)(92,970)
Other assets956,238928,472
Total assets$12,089,692$12,209,865
Liabilities and stockholders’ equity
Interest-bearing transaction deposits$2,393,016$10,0051.68%$2,651,083$9,5491.44%
Savings and money market deposits3,269,07518,7462.31%2,802,6757,7171.10%
Time deposits1,589,49114,9583.78%1,343,8309,5022.84%
Federal funds purchased and repurchase agreements144,3701,0402.90%201,0201,2232.44%
Borrowings4255,2483,5995.67%692,1509,2935.39%
Junior subordinated debt issued to unconsolidated trusts74,6321,0595.71%71,8709455.27%
Total interest-bearing liabilities7,725,832$49,4072.57%7,762,628$38,2291.98%
Net interest spread12.27%2.26%
Noninterest-bearing deposits2,816,2933,054,483
Other liabilities215,752184,819
Stockholders’ equity1,331,8151,207,935
Total liabilities and stockholders’ equity$12,089,692$12,209,865
Interest income / earning assets1, 3$10,993,907$132,2434.84%$11,130,298$117,4604.23%
Interest expense / earning assets10,993,90749,4071.81%11,130,29838,2291.38%
Net interest margin1$82,8363.03%$79,2312.86%
  1. On a tax-equivalent basis and assuming a federal income tax rate of 21.0%. For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see“Item 2. Management’s Discussion and Analysis—Non-GAAP Financial Information” included in this Quarterly Report.

  2. Non-accrual loans have been included in average portfolio loans.

  3. Interest income includes tax-equivalent adjustments of $0.4 million and $0.6 million for the three months ended June 30, 2024 and 2023, respectively.

  4. Includes short-term and long-term borrowings. Interest expense includes non-usage fees on a revolving loan.

  5. Annualized.

Six Months Ended June 30,
2024 · 2023
AverageBalance · Income/Expense · Yield/Rate5 · AverageBalance · Income/Expense · Yield/Rate5
Assets
Interest-bearing bank deposits and federal funds sold$362,608$9,4985.27%$112,550$2,2994.12%
Investment securities:
U.S. Government obligations9,2061152.51%104,9703430.66%
Obligations of states and political subdivisions1157,0472,2152.84%249,2133,4692.81%
Other securities2,655,97536,9492.80%2,953,39237,7002.57%
Loans held for sale7,0932306.52%1,796495.53%
Portfolio loans1, 27,804,976209,4185.40%7,733,370185,2634.83%
Total interest-earning assets1, 310,996,905$258,4254.73%11,155,291$229,1234.14%
Cash and due from banks107,679117,013
Premises and equipment122,625126,145
ACL(92,662)(92,832)
Other assets922,403931,026
Total assets$12,056,950$12,236,643
Liabilities and stockholders’ equity
Interest-bearing transaction deposits$2,458,886$20,8161.70%$2,708,973$16,4871.23%
Savings and money market deposits3,172,64035,1342.23%2,856,63511,6690.82%
Time deposits1,659,31831,7273.85%1,152,33113,3522.34%
Federal funds purchased and repurchase agreements161,5142,4123.00%215,6042,4452.29%
Borrowings4253,0657,2365.75%683,79617,6665.21%
Junior subordinated debt issued to unconsolidated trusts73,3212,0485.62%71,8481,8585.21%
Total interest-bearing liabilities7,778,744$99,3732.57%7,689,187$63,4771.66%
Net interest spread12.16%2.48%
Noninterest-bearing deposits2,762,4393,163,011
Other liabilities211,997194,966
Stockholders’ equity1,303,7701,189,479
Total liabilities and stockholders’ equity$12,056,950$12,236,643
Interest income / earning assets1, 3$10,996,905$258,4254.73%$11,155,291$229,1234.14%
Interest expense / earning assets10,996,90599,3731.82%11,155,29163,4771.15%
Net interest margin1$159,0522.91%$165,6462.99%
  1. On a tax-equivalent basis and assuming a federal income tax rate of 21.0%. For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see“Item 2. Management’s Discussion and Analysis—Non-GAAP Financial Information” included in this Quarterly Report.

  2. Non-accrual loans have been included in average portfolio loans.

  3. Interest income includes tax-equivalent adjustments of $0.9 million and $1.1 million for the six months ended June 30, 2024 and 2023, respectively.

  4. Includes short-term and long-term borrowings. Interest expense includes non-usage fees on a revolving loan.

  5. Annualized.

Notable changes in average assets and average liabilities are summarized as follows for the periods presented(dollars in thousands):

Three Months Ended June 30,
20242023Change% Change
Average interest-earning assets$10,993,907$11,130,298$(136,391)(1.2)%
Average interest-bearing liabilities7,725,8327,762,628(36,796)(0.5)%
Average noninterest-bearing deposits2,816,2933,054,483(238,190)(7.8)%
Total average deposits10,067,8759,852,071215,8042.2%
Total average liabilities10,757,87711,001,930(244,053)(2.2)%
Average noninterest-bearing deposits as a percent of total average deposits28.0%31.0%(300) bps
Total average deposits as a percent of total average liabilities93.6%89.5%410 bps
Six Months Ended June 30,
20242023Change% Change
Average interest-earning assets$10,996,905$11,155,291$(158,386)(1.4)%
Average interest-bearing liabilities7,778,7447,689,18789,5571.2%
Average noninterest-bearing deposits2,762,4393,163,011(400,572)(12.7)%
Total average deposits10,053,2839,880,950172,3331.7%
Total average liabilities10,753,18011,047,164(293,984)(2.7)%
Average noninterest-bearing deposits as a percent of total average deposits27.5%32.0%(450) bps
Total average deposits as a percent of total average liabilities93.5%89.4%410 bps

Changes in net interest income and net interest margin are summarized as follows for the periods presented(dollars in thousands):

Three Months Ended June 30,
20242023Change% Change
Net interest income
Interest income, on a tax-equivalent basis1$132,243$117,460$14,78312.6%
Interest expense(49,407)(38,229)(11,178)(29.2)%
Net interest income, on a tax-equivalent basis1$82,836$79,231$3,6054.5%
Net interest margin1, 23.03%2.86%17 bps
Six Months Ended June 30,
20242023Change% Change
Net interest income
Interest income, on a tax-equivalent basis1$258,425$229,123$29,30212.8%
Interest expense(99,373)(63,477)(35,896)(56.5)%
Net interest income, on a tax-equivalent basis1$159,052$165,646$(6,594)(4.0)%
Net interest margin1, 22.91%2.99%(8) bps
  1. Assuming a federal income tax rate of 21.0%. For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see“Item 2. Management’s Discussion and Analysis—Non-GAAP Financial Information” included in this Quarterly Report.

  2. Net interest income expressed as a percentage of average earning assets, stated on a tax-equivalent basis.

The FOMC raised rates by a total of 525 basis points between March 2022 and July 2023. Rising rates initially have a positive impact on net interest margin, as assets, in particular commercial loans, reprice more quickly and to a greater extent than liabilities. As deposit and funding costs increase in response to the tightening rate cycle, and we experience deposit migration into higher cost offerings and funding alternatives, some of the net interest margin expansion is reversed, which we began to experience in the first quarter of 2023. As lower yielding securities and loans continue to mature or renew at higher current market rates, expansion in asset yields has outpaced any remaining lagged pressure on funding costs. Our deposit cost of funds peaked in the beginning of the first quarter of 2024, and we have been able to remain below that peak funding cost each month during the second quarter. We continue to offer CD specials with shorter term structures as well as offering attractive premium savings rates to encourage rotation of maturing CD deposits into nimble pricing products as the expected easing cycle begins. During the second quarter of 2024 we also saw the full benefit of the March 2024 targeted balance sheet repositioning in our net interest margin.

Net interest spread represents the difference between the average rate earned on earning assets and the average rate paid on interest-bearing liabilities, and is presented in the table below for the periods indicated:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net interest spread12.27%2.26%2.16%2.48%
  1. Net interest spread is calculated on a tax-equivalent basis.

The net interest margin discussion above is based upon the results and average balances for the three and six months ended June 30, 2024 and 2023. Annualized net interest margins for the quarterly periods indicated were as follows:

20242023
First Quarter2.79%3.13%
Second Quarter3.03%2.86%
Third Quarter2.80%
Fourth Quarter2.74%

Management attempts to mitigate the effects of an unpredictable interest-rate environment through effective portfolio management, prudent loan underwriting and pricing discipline, and operational efficiencies. For a description of accounting policies underlying the recognition of interest income and expense, refer to the Notes to Consolidated Financial Statements in Busey’s 2023 Annual Report.

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.