FIRST BUSEY CORP NV
For the period ended Dec 31, 2023. Filed Feb 23, 2024.
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FY2023 · Filed Feb 23, 2024
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Balance Sheet
Changes in significant items included in our Consolidated Balance Sheets are summarized in the table below (dollars in thousands):
| As of December 31, | ||||
|---|---|---|---|---|
| 2023 | 2022 | Change | % Change | |
| Assets | ||||
| Debt securities available for sale | $2,087,571 | $2,461,393 | $(373,822) | (15.2)% |
| Debt securities held to maturity | 872,628 | 918,312 | (45,684) | (5.0)% |
| Portfolio loans, net of ACL | 7,559,294 | 7,634,094 | (74,800) | (1.0)% |
| Total assets | 12,283,415 | 12,336,677 | (53,262) | (0.4)% |
| Liabilities | ||||
| Deposits: | ||||
| Noninterest-bearing | 2,834,655 | 3,393,666 | (559,011) | (16.5)% |
| Interest-bearing | 7,456,501 | 6,677,614 | 778,887 | 11.7% |
| Total deposits | 10,291,156 | 10,071,280 | 219,876 | 2.2% |
| Securities sold under agreements to repurchase | 187,396 | 229,806 | (42,410) | (18.5)% |
| Short-term borrowings | 12,000 | 351,054 | (339,054) | (96.6)% |
| Subordinated notes, net of unamortized issuance costs | 222,882 | 222,038 | 844 | 0.4% |
| Total liabilities | 11,011,434 | 11,190,700 | (179,266) | (1.6)% |
| Stockholders’ equity | 1,271,981 | 1,145,977 | 126,004 | 11.0% |
Busey executed a two-part balance sheet repositioning strategy
During the fourth quarter of 2023, Busey sold all 16,878 shares of Visa Class B common stock it previously held (the “Visa Sale”) resulting in a pre-tax gain of approximately $5.5 million, and also executed a balance sheet repositioning of its available-for-sale securities portfolio (the “Repositioning”). Busey sold securities with a carrying value of approximately $110 million yielding 1.56%, resulting in a pre-tax loss of $5.3 million. Proceeds were deposited into an interest-bearing account at the Federal Reserve yielding 5.40%, a higher-yielding lower risk-weighted asset.
The increased net interest spread as a result of the Visa Sale and Repositioning is expected to increase net interest income by approximately $4.3 million on an annualized basis and improve Busey’s net interest margin run rate by 4 basis points. In addition, execution of these transactions further bolsters Busey’s liquidity position and balance sheet flexibility, while also strengthening its capital position. Busey anticipates reinvesting the proceeds into higher yielding organic growth opportunities over time.
The combined impact of the gain generated from the Visa Sale and the loss generated from the Repositioning will have an immediate positive impact on consolidated stockholders’ equity and book value per share. Risk-based regulatory capital ratios will increase modestly as a result of the Repositioning proceeds rotating into lower risk-weighted assets. Busey expects the above transactions to be accretive to capital and earnings per share in future periods.
First Busey Corporation | 2023 — 68
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.