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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Liquidity
Liquidity management is the process by which we ensure that adequate liquid funds are available to meet the present and future cash flow obligations arising in the daily operations of our business. These financial obligations consist of needs for funds to meet commitments to borrowers for extensions of credit, fund capital expenditures, honor withdrawals by customers, pay dividends to stockholders, and pay operating expenses. Our most liquid assets are cash and due from banks, interest-bearing bank deposits, and federal funds sold. Balances of these assets are dependent on our operating, investing, lending, and financing activities during any given period.
First Busey Corporation | 2023 — 85
Average liquid assets are summarized in the table below (dollars in thousands):
| Years Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Average liquid assets | |||
| Cash and due from banks | $116,530 | $120,910 | $133,711 |
| Interest-bearing bank deposits | 214,422 | 290,875 | 630,687 |
| Total average liquid assets | $330,952 | $411,785 | $764,398 |
| Average liquid assets as a percent of average total assets | 2.7% | 3.3% | 6.4% |
Cash and unencumbered securities on our Consolidated Balance Sheets are summarized as follows for the periods presented(dollars in thousands):
| As of December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| Cash and unencumbered securities | ||
| Total cash and cash equivalents | $719,581 | $227,164 |
| Debt securities available for sale | 2,087,571 | 2,461,393 |
| Debt securities available for sale pledged as collateral | (649,769) | (746,675) |
| Cash and unencumbered securities | $2,157,383 | $1,941,882 |
Busey’s primary sources of funds consist of deposits, investment maturities and sales, loan principal repayments, and capital funds. Additional liquidity is provided by the ability to borrow from the FHLB, the Federal Reserve Bank, and our revolving credit facility, as summarized in the table below(dollars in thousands):
| As of December 31, | ||
|---|---|---|
| 2023 | 2022 | |
| Additional available borrowing capacity | ||
| FHLB | $1,898,737 | $1,765,388 |
| Federal Reserve Bank | 598,878 | 659,680 |
| Federal funds purchased | 482,500 | 482,500 |
| Revolving credit facility | 40,000 | 40,000 |
| Additional borrowing capacity | $3,020,115 | $2,947,568 |
Further, the company could utilize brokered deposits as additional sources of liquidity, as needed.
As of December 31, 2023, management believed that adequate liquidity existed to meet all projected cash flow obligations. We seek to achieve a satisfactory degree of liquidity by actively managing both assets and liabilities. Asset management guides the proportion of liquid assets to total assets, while liability management monitors future funding requirements and prices liabilities accordingly.
Our ability to pay cash dividends to our stockholders and to service our debt is dependent on the receipt of cash dividends from our subsidiaries. Busey Bank paid dividends to First Busey Corporation totaling $90.0 million and $95.0 million for the years ended December 31, 2023, and 2022, respectively.
First Busey Corporation | 2023 — 86
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