FIRST BUSEY CORP NV

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

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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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NON-GAAP FINANCIAL INFORMATION

This Quarterly Report contains certain financial information determined by methods other than in accordance with GAAP. Management uses these non-GAAP financial measures and non-GAAP ratios, together with the related GAAP financial measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to Busey’s peers. We believe the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring noninterest items and provide additional perspective on our performance over time.

Non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for the results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates and effective rates as appropriate.

A listing of Busey's non-GAAP financial measures and ratios are shown in the table below, together with the related GAAP financial measures.

GAAP Financial Measures		Related Non-GAAP Financial Measures		Related Non-GAAP Ratios
Net interest incomeTotal noninterest incomeNet security gains and lossesTotal noninterest expense		Pre-provision net revenue		Pre-provision net revenue to average assets
	Adjusted pre-provision net revenue		Adjusted pre-provision net revenue to average assets
Net income		Adjusted net income		Adjusted diluted earnings per share
		Adjusted return on average assets
		Adjusted return on average tangible common equity
Average common equity		Average tangible common equity		Return on average tangible common equity
		Adjusted return on average tangible common equity
Net interest income		Tax-equivalent net interest income		Net interest margin
	Adjusted net interest income		Adjusted net interest margin
Net interest incomeTotal noninterest incomeNet security gains and losses		Tax-equivalent revenue		Efficiency ratio
	Adjusted tax-equivalent revenue		Adjusted efficiency ratio
		Adjusted core efficiency ratio
	Adjusted noninterest income
Total noninterest expenseAmortization of intangible assets		Noninterest expense excluding amortization of intangible assets		Efficiency ratio
	Adjusted noninterest expense		Adjusted efficiency ratio
	Adjusted core expense		Adjusted core efficiency ratio
Total noninterest expense		Noninterest expense, excluding non-operating adjustments
Total assetsGoodwill and other intangible assets, net		Tangible assets		Tangible common equity to tangible assets
Total stockholders’ equityGoodwill and other intangible assets, net		Tangible common equity		Tangible common equity to tangible assets
	Tangible book value		Tangible book value per common share
Total deposits		Core deposits		Core deposits to total deposits
		Portfolio loans to core deposits

A reconciliation of non-GAAP financial measures to what management believes to be the most directly comparable GAAP financial measures appears below.

Pre-Provision Net Revenue, Adjusted Pre-Provision Net Revenue,Pre-Provision Net Revenue to Average Assets, and Adjusted Pre-Provision Net Revenue to Average Assets
(dollars in thousands)
Three Months Ended June 30, · Six Months Ended June 30,
2024 · 2023 · 2024 · 2023
PRE-PROVISION NET REVENUE
Net interest income		$82,434	$78,670	$158,201	$164,527
Total noninterest income		33,801	28,012	68,801	59,860
Net security (gains) losses		353	2,059	6,728	2,675
Total noninterest expense		(75,537)	(69,205)	(146,306)	(139,608)
Pre-provision net revenue		41,051	39,536	87,424	87,454
Non-GAAP adjustments:
Acquisition and other restructuring expenses		2,212	12	2,620	12
Provision for unfunded commitments		(369)	265	(1,047)	(370)
Amortization of NMTC		—	2,259	—	4,480
Gain on sale of mortgage service rights		(277)	—	(7,742)	—
Adjusted pre-provision net revenue		$42,617	$42,072	$81,255	$91,576
Pre-provision net revenue, annualized	[a]	$165,106	$158,578	$175,809	$176,358
Adjusted pre-provision net revenue, annualized	[b]	171,405	168,750	163,403	184,670
Average total assets	[c]	12,089,692	12,209,865	12,056,950	12,236,643
Reported: Pre-provision net revenue to average assets1	[a÷c]	1.37%	1.30%	1.46%	1.44%
Adjusted: Pre-provision net revenue to average assets1	[b÷c]	1.42%	1.38%	1.36%	1.51%

Annualized measure.

Adjusted Net Income, Adjusted Diluted Earnings Per Share, Adjusted Return on Average Assets, Average Tangible Common Equity, Return on Average Tangible Common Equity, and Adjusted Return on Average Tangible Common Equity
(dollars in thousands, except per share amounts)
Three Months Ended June 30, · Six Months Ended June 30,
2024 · 2023 · 2024 · 2023
NET INCOME ADJUSTED FOR NON-OPERATING ITEMS
Net income	[a]	$27,357	$29,364	$53,582	$66,150
Non-GAAP adjustments for non-operating items:
Acquisition expenses:
Salaries, wages, and employee benefits		1,137	—	1,137	—
Data processing		344	—	444	—
Professional fees, occupancy, furniture and fixtures, and other		731	12	916	12
Other restructuring expenses:
Salaries, wages, and employee benefits		—	—	123	—
Related tax benefit1		(553)	(3)	(655)	(3)
Adjusted net income	[b]	$29,016	$29,373	$55,547	$66,159
DILUTED EARNINGS PER SHARE
Diluted average common shares outstanding	[c]	57,853,231	56,195,801	57,129,865	56,187,820
Reported: Diluted earnings per share	[a÷c]	0.47	0.52	0.94	1.18
Adjusted: Diluted earnings per share	[b÷c]	0.50	0.52	0.97	1.18
RETURN ON AVERAGE ASSETS
Net income, annualized	[d]	$110,029	$117,779	$107,753	$133,396
Adjusted net income, annualized	[e]	116,702	117,815	111,704	133,415
Average total assets	[f]	12,089,692	12,209,865	12,056,950	12,236,643
Reported: Return on average assets2	[d÷f]	0.91%	0.96%	0.89%	1.09%
Adjusted: Return on average assets2	[e÷f]	0.97%	0.96%	0.93%	1.09%
RETURN ON AVERAGE TANGIBLE COMMON EQUITY
Average common equity		$1,331,815	$1,207,935	$1,303,770	$1,189,479
Average goodwill and other intangible assets, net		(376,224)	(360,641)	(364,620)	(361,990)
Average tangible common equity	[g]	$955,591	$847,294	$939,150	$827,489
Reported: Return on average tangible common equity2	[d÷g]	11.51%	13.90%	11.47%	16.12%
Adjusted: Return on average tangible common equity2	[e÷g]	12.21%	13.90%	11.89%	16.12%

Tax benefits were calculated by multiplying acquisition expenses and other restructuring expenses by the effective tax rate for each period. Effective tax rates used in this calculation were 25.0% and 20.5% for the three months ended June 30, 2024 and 2023, respectively, and were 25.0% and 20.5% for the six months ended June 30, 2024 and 2023.

Adjusted Net Interest Income and Adjusted Net Interest Margin
(dollars in thousands)
Three Months Ended June 30, · Six Months Ended June 30,
2024 · 2023 · 2024 · 2023
Net interest income		$82,434	$78,670	$158,201	$164,527
Non-GAAP adjustments:
Tax-equivalent adjustment1		402	561	851	1,119
Tax-equivalent net interest income		82,836	79,231	159,052	165,646
Purchase accounting accretion related to business combinations		(812)	(413)	(1,016)	(816)
Adjusted net interest income		$82,024	$78,818	$158,036	$164,830
Tax-equivalent net interest income, annualized	[a]	$333,165	$317,795	$319,852	$334,038
Adjusted net interest income, annualized	[b]	329,899	316,138	317,809	332,392
Average interest-earning assets	[c]	10,993,907	11,130,298	10,996,905	11,155,291
Reported: Net interest margin2	[a÷c]	3.03%	2.86%	2.91%	2.99%
Adjusted: Net interest margin2	[b÷c]	3.00%	2.84%	2.89%	2.98%

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.

Adjusted Noninterest Income, Operating Revenue, Adjusted Noninterest Income to Operating Revenue, Noninterest Expense Excluding Amortization of Intangible Assets, Adjusted Noninterest Expense,Adjusted Core Expense, Noninterest Expense Excluding Non-Operating Adjustments, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio
(dollars in thousands)
Three Months Ended June 30, · Six Months Ended June 30,
2024 · 2023 · 2024 · 2023
Net interest income	[a]	$82,434	$78,670	$158,201	$164,527
Non-GAAP adjustments:
Tax-equivalent adjustment1		402	561	851	1,119
Tax-equivalent net interest income	[b]	$82,836	$79,231	$159,052	$165,646
Total noninterest income		$33,801	$28,012	$68,801	$59,860
Non-GAAP adjustments:
Net security (gains) losses		353	2,059	6,728	2,675
Noninterest income excluding net securities gains and losses	[c]	34,154	30,071	75,529	62,535
Further adjustments:
Gain on sale of mortgage servicing rights		(277)	—	(7,742)	—
Adjusted noninterest income	[d]	$33,877	$30,071	$67,787	$62,535
Tax-equivalent revenue	[e = b+c]	$116,990	$109,302	$234,581	$228,181
Adjusted tax-equivalent revenue	[f = b+d]	116,713	109,302	226,839	228,181
Operating revenue	[g = a+d]	116,311	108,741	225,988	227,062
Adjusted noninterest income to operating revenue	[d÷g]	29.13%	27.65%	30.00%	27.54%

Adjusted Noninterest Income, Operating Revenue, Adjusted Noninterest Income to Operating Revenue, Noninterest Expense Excluding Amortization of Intangible Assets, Adjusted Noninterest Expense,Adjusted Core Expense, Noninterest Expense Excluding Non-Operating Adjustments, Efficiency Ratio, Adjusted Efficiency Ratio, and Adjusted Core Efficiency Ratio (Continued)
(dollars in thousands)
Three Months Ended June 30, · Six Months Ended June 30,
2024 · 2023 · 2024 · 2023
Total noninterest expense		$75,537	$69,205	$146,306	$139,608
Non-GAAP adjustments:
Amortization of intangible assets	[h]	(2,629)	(2,669)	(5,038)	(5,398)
Noninterest expense excluding amortization of intangible assets	[i]	72,908	66,536	141,268	134,210
Non-operating adjustments:
Salaries, wages, and employee benefits		(1,137)	—	(1,260)	—
Data processing		(344)	—	(444)	—
Professional fees, occupancy, furniture and fixtures, and other		(731)	(12)	(916)	(12)
Adjusted noninterest expense	[j]	70,696	66,524	138,648	134,198
Provision for unfunded commitments		369	(265)	1,047	370
Amortization of NMTC		—	(2,259)	—	(4,480)
Adjusted core expense	[k]	$71,065	$64,000	$139,695	$130,088
Noninterest expense, excluding non-operating adjustments	[j-h]	$73,325	$69,193	$143,686	$139,596
Reported: Efficiency ratio	[i÷e]	62.32%	60.87%	60.22%	58.82%
Adjusted: Efficiency ratio	[j÷f]	60.57%	60.86%	61.12%	58.81%
Adjusted: Core efficiency ratio	[k÷f]	60.89%	58.55%	61.58%	57.01%

The tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.

Tangible Book Value and Tangible Book Value Per Common Share
(dollars in thousands, except per share amounts)
	As of
June 302024 · December 312023
Total stockholders' equity		$1,333,810		$1,271,981
Goodwill and other intangible assets, net		(370,580)		(353,864)
Tangible book value	[a]	$963,230		$918,117
Ending number of common shares outstanding	[b]	56,746,937	55,244,119
Tangible book value per common share	[a÷b]	$16.97		$16.62

Tangible Assets, Tangible Common Equity, and Tangible Common Equity to Tangible Assets
(dollars in thousands)
	As of
June 30,2024 · December 31,2023
Total assets		$11,971,416	$12,283,415
Non-GAAP adjustments:
Goodwill and other intangible assets, net		(370,580)	(353,864)
Tax effect of other intangible assets1		7,687	6,888
Tangible assets2	[a]	$11,608,523	$11,936,439
Total stockholders' equity		$1,333,810	$1,271,981
Non-GAAP adjustments:
Goodwill and other intangible assets, net		(370,580)	(353,864)
Tax effect of other intangible assets1		7,687	6,888
Tangible common equity2	[b]	$970,917	$925,005
Tangible common equity to tangible assets2	[b÷a]	8.36%	7.75%

Net of estimated deferred tax liability, calculated using the estimated statutory tax rate of 28%.
Tax-effected measure.

Core Deposits, Core Deposits to Total Deposits, and Portfolio Loans to Core Deposits
(dollars in thousands)
	As of
June 30,2024 · December 31,2023
Portfolio loans	[a]	$7,998,912	$7,651,034
Total deposits	[b]	$9,976,135	$10,291,156
Non-GAAP adjustments:
Brokered deposits, excluding brokered time deposits of $250,000 or more		(43,089)	(6,001)
Time deposits of $250,000 or more		(314,461)	(386,286)
Core deposits	[c]	$9,618,585	$9,898,869
RATIOS
Core deposits to total deposits	[c÷b]	96.42%	96.19%
Portfolio loans to core deposits	[a÷c]	83.16%	77.29%

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