BUSE
F I R S T B U S E Y C O R P O R A T I O N
A N N O U N C E S
2 0 2 4
T H I R D
Q U A R T E R
E A R N I N G S
Q 3 | 2 0 2 4
October 22, 2024
First Busey Corporation Announces 2024 Third Quarter Earnings CHAMPAIGN, IL - (GLOBE NEWSWIRE) - First Busey Corporation (Nasdaq: BUSE)
Net Income of $32.0 million
Diluted EPS of $0.55
THIRD QUARTER 2024 HIGHLIGHTS
For additional information, please refer to the 3Q24 Earnings Investor Presentation.
MESSAGE FROM OUR CHAIRMAN & CEO
Third Quarter Financial Results
Net income for First Busey Corporation ("Busey," "Company," "we," "us," or "our") was $32.0 million for the third quarter of 2024, or $0.55 per diluted common share, compared to $27.4 million, or $0.47 per diluted common share, for the second quarter of 2024, and $30.7 million, or $0.54 per diluted common share, for the third quarter of 2023. Adjusted net income1, which excludes the impact of acquisition and restructuring expenses, was $33.5 million, or $0.58 per diluted common share, for the third quarter of 2024, compared to $29.0 million, or $0.50 per diluted common share, for the second quarter of 2024 and $30.7 million or $0.55 per diluted common share for the third quarter of 2023. Annualized return on average assets and annualized return on average tangible common equity1 were 1.06% and 12.80%, respectively, for the third quarter of 2024. Annualized adjusted return on average assets1 and annualized adjusted return on average tangible common equity1 were 1.11% and 13.41%, respectively, for the third quarter of 2024.
Third quarter results included $0.8 million in net securities gains, nearly all of which were unrealized, as well as immaterial follow-on adjustments from the mortgage servicing rights sale previously announced in the first quarter of 2024. Excluding these items, adjusted noninterest income1 was $35.1 million, or 29.9% of operating revenue1, during the third quarter of 2024, compared to $33.9 million, or 29.1% of operating revenue, for the second quarter of 2024 and $31.3 million, or 28.7% of operating revenue, for the third quarter of 2023. Further adjusted net income1 was $32.9 million for the third quarter of 2024 with these items excluded, equating to further adjusted earnings1 of $0.57 per diluted common share.
Pre-provision net revenue1 was $41.7 million for the third quarter of 2024, compared to $41.1 million for the second quarter of 2024 and $38.1 million for the third quarter of 2023. Pre-provision net revenue to average assets1 was 1.38% for the third quarter of 2024, compared to 1.37% for the second quarter of 2024, and 1.24% for the third quarter of 2023. Adjusted pre-provision net revenue1 was $44.1 million for the third quarter of 2024, compared to $42.6 million for the second quarter of 2024 and $40.5 million for the third quarter of 2023. Adjusted pre-provision net revenue to average assets1 was 1.46% for the third quarter of 2024, compared to 1.42% for the second quarter of 2024 and 1.32% for the third quarter of 2023.
First Busey Corporation (BUSE) | 2024 Q3 - 2
Our fee-based businesses continue to add revenue diversification. Total noninterest income was $36.0 million for the third quarter of 2024, compared to $33.8 million for the second quarter of 2024 and $31.0 million for the third quarter of 2023. Busey's Wealth Management and FirsTech operating segments contributed $16.2 million and $5.6 million, respectively, to our noninterest income for the third quarter of 2024, representing 60.4% of noninterest income on a combined basis.
Busey views certain non-operating items, including acquisition-related expenses and restructuring charges, as adjustments to net income reported under U.S. generally accepted accounting principles ("GAAP"). Non-operating pretax adjustments for acquisition and restructuring expenses1 were $1.9 million in the third quarter of 2024. Busey believes that its non-GAAP measures (which are identified with the endnote labeled as 1) facilitate the assessment of its financial results and peer comparability. For more information and a reconciliation of these non-GAAP measures in tabular form, see "Non-GAAPFinancial Information" beginning on page 16.
We remain deliberate in our efforts to prudently manage our expense base and operating efficiency given the economic outlook. Noninterest expense was $75.9 million in the third quarter of 2024, compared to $75.5 million in the second quarter of 2024 and $70.9 million in the third quarter of 2023. Adjusted core expense1, which excludes the amortization of intangible assets and new markets tax credits, acquisition and restructuring expenses, and the provision for unfunded commitments, was $71.0 million in the third quarter of 2024, compared to $71.1 million in the second quarter of 2024 and $66.0 million in the third quarter of 2023. The year-over-year comparable period growth in adjusted core expense can be attributed primarily to the acquisition of M&M and general inflationary pressures on compensation and benefits and to a lesser extent certain other expense categories.
Quarterly pre-tax expense synergies resulting from our acquisition of Merchants and Manufacturers Bank Corporation (the "M&M acquisition") are anticipated to be $1.6 million to $1.7 million per quarter when fully realized. Quarterly run-rate savings are projected to be achieved by the first quarter of 2025. During the third quarter of 2024, we achieved approximately 79% of the full quarterly savings. We expect to continue to prudently manage our expenses and to realize increased rates of M&M acquisition synergies during the final quarter of 2024.
Planned Partnership with CrossFirst
On August 26, 2024, Busey and CrossFirst Bankshares, Inc. ("CrossFirst") entered into an agreement and plan of merger (the "merger agreement") pursuant to which CrossFirst will merge with and into Busey (the "merger") and CrossFirst's wholly-owned subsidiary, CrossFirst Bank, will merge with and into Busey Bank. This partnership will create a premier commercial bank in the Midwest, Southwest, and Florida, with 77 full-service locations across 10 states-Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas-and approximately $20 billion in combined assets, $17 billion in total deposits, $15 billion in total loans, and $14 billion in wealth assets under care.
Under the terms of the merger agreement, CrossFirst stockholders will have the right to receive for each share of CrossFirst common stock 0.6675 of a share of Busey's common stock. Upon completion of the transaction, Busey's stockholders will own approximately 63.5% of the combined company and CrossFirst's stockholders will own approximately 36.5% of the combined company, on a fully-diluted basis. Busey common stock will continue to trade on the Nasdaq under the "BUSE" stock ticker symbol.
Completion of the merger is subject to customary closing conditions, including the approval of both Busey and CrossFirst stockholders and the regulatory approvals for the merger and the bank merger. With approvals, the parties expect to close the merger in the first or second quarter of 2025. The combined holding company will continue to operate under the First Busey Corporation name and the combined bank will operate under the Busey Bank name. It is anticipated that CrossFirst Bank will merge with and into Busey Bank in mid-2025. At the time of the bank merger, CrossFirst Bank locations will become banking centers of Busey Bank. In connection with the merger, Busey incurred one-time pretax acquisition-related expenses of $1.3 million during the third quarter of 2024.
For further details on the merger, see Busey's Current Report on Form 8-Kannouncing the merger, which was filed with the U.S. Securities and Exchange Commission (the "SEC") on August 27, 2024.
First Busey Corporation (BUSE) | 2024 Q3 - 3
Busey's Conservative Banking Strategy
Busey's financial strength is built on a long-term conservative operating approach. That focus will not change now or in the future.
The quality of our core deposit franchise is a critical value driver of our institution. Our granular deposit base continues to position us well, with core deposits1 representing 96.5% of our deposits as of September 30, 2024. Our retail deposit base was comprised of more than 253,000 accounts with an average balance of $22 thousand and an average tenure of 16.7 years as of September 30, 2024. Our commercial deposit base was comprised of more than 33,000 accounts with an average balance of $97 thousand and an average tenure of 12.6 years as of September 30, 2024. We estimate that 29% of our deposits were uninsured and uncollateralized2 as of September 30, 2024, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.
Asset quality remains strong by both Busey's historical and current industry trends. Non-performing assets decreased to $8.3 million during the third quarter of 2024, representing 0.07% of total assets. Busey's results for the third quarter of 2024 include an insignificant provision expense for credit losses and a $0.4 million provision expense for unfunded commitments. The allowance for credit losses was $85.0 million as of September 30, 2024, representing 1.09% of total portfolio loans outstanding, and providing coverage of 10.34 times our non-performing loan balance. Busey recorded net charge-offs of $0.2 million in the third quarter of 2024. As of September 30, 2024, our commercial real estate loan portfolio of investor-owned office properties within Central Business District3 areas was minimal at $2.1 million. Our credit performance continues to reflect our highly diversified, conservatively underwritten loan portfolio, which has been originated predominantly to established customers with tenured relationships with our company.
The strength of our balance sheet is also reflected in our capital foundation. In the third quarter of 2024, our Common Equity Tier 1 ratio4 was 13.78% and our Total Capital to Risk Weighted Assets ratio4 was 18.19%. Our regulatory capital ratios continue to provide a buffer of more than $580 million above levels required to be designated well-capitalized. Our Tangible Common Equity ratio1 increased to 8.96% during the third quarter of 2024, compared to 8.36% for the second quarter of 2024 and 7.06% for the third quarter of 2023. Busey's tangible book value per common share1 increased to $18.19 at September 30, 2024, from $16.97 at June 30, 2024, and $15.07 at September 30, 2023, reflecting a 20.7% year-over- year increase. During the third quarter of 2024, we paid a common share dividend of $0.24.
Community Banking
In July 2024-based on their community involvement and academic achievements-Busey awarded 10 deserving students from across Busey's footprint in Illinois, Missouri, Florida, and Indiana, a $2,500 scholarship to support their continuing education and bright futures. With 70 applications received, and a record number of eligible applicants, the students with the top scores, as determined by Busey's Scholarship Committee, averaged a 4.16 GPA. Since the inception of the Busey Bank Bridge Scholarship program in 2022, Busey has awarded 30 scholarships to deserving students for a total $75,000. Full details on the scholarship's eligibility criteria and application process can be found at https:// www.busey.com/busey/busey-bank-bridge-scholarship.
First Busey Corporation (BUSE) | 2024 Q3 - 4
As we build upon Busey's forward momentum and our strategic growth plans, we are grateful for the opportunities to consistently earn the business of our customers, based on the contributions of our talented associates and the continued support of our loyal shareholders. With our strong capital position, an attractive core funding base, and a sound credit foundation, we remain confident that we are well positioned as we move into the final quarter of 2024 and into 2025. We are mindful of the evolving economic outlook and remain focused on balance sheet strength, profitability, and growth, in that order. The pending CrossFirst transaction fits with our acquisition strategy and we are excited to welcome our CrossFirst colleagues into the Busey family.
Van A. Dukeman
Chairman and Chief Executive Officer
First Busey Corporation
First Busey Corporation (BUSE) | 2024 Q3 - 5
SELECTED FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands, except per share amounts)
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
September 30,
EARNINGS & PER SHARE AMOUNTS
2024
2024
2023
2024
2023
Net income
$
32,004
$
27,357
$
30,666
$
85,586
$
96,816
Diluted earnings per common share
0.55
0.47
0.54
1.49
1.72
Cash dividends paid per share
0.24
0.24
0.24
0.72
0.72
Pre-provision net revenue1, 2
41,744
41,051
38,139
129,168
125,593
Operating revenue2
117,688
116,311
109,084
343,676
336,146
Net income by operating segment:
Banking
33,221
26,697
31,189
86,410
98,689
FirsTech
(61)
28
317
53
505
Wealth Management
5,618
5,561
4,781
16,177
14,571
AVERAGE BALANCES
Cash and cash equivalents
$
502,127
$
346,381
$
252,730
$
480,979
$
237,370
Investment securities
2,666,269
2,737,313
3,148,759
2,769,862
3,254,054
Loans held for sale
11,539
9,353
2,267
8,585
1,955
Portfolio loans
7,869,798
8,010,636
7,834,285
7,826,741
7,767,378
Interest-earning assets
10,936,611
10,993,907
11,118,167
10,976,660
11,142,780
Total assets
12,007,702
12,089,692
12,202,783
12,040,414
12,225,232
Noninterest-bearing deposits
2,706,858
2,816,293
2,925,244
2,743,777
3,082,884
Interest-bearing deposits
7,296,921
7,251,582
7,217,463
7,292,884
6,886,277
Total deposits
10,003,779
10,067,875
10,142,707
10,036,661
9,969,161
Federal funds purchased and securities sold under agreements to
repurchase
132,688
144,370
190,112
151,835
207,014
Interest-bearing liabilities
7,731,459
7,725,832
7,864,355
7,762,867
7,748,218
Total liabilities
10,643,325
10,757,877
10,994,376
10,716,295
11,029,374
Stockholders' equity - common
1,364,377
1,331,815
1,208,407
1,324,119
1,195,858
Tangible common equity2
994,657
955,591
850,382
957,788
835,204
PERFORMANCE RATIOS
Pre-provision net revenue to average assets1, 2, 3
1.38 %
1.37 %
1.24 %
1.43 %
1.37 %
Return on average assets3
1.06 %
0.91 %
1.00 %
0.95 %
1.06 %
Return on average common equity3
9.33 %
8.26 %
10.07 %
8.63 %
10.82 %
Return on average tangible common equity2, 3
12.80 %
11.51 %
14.31 %
11.94 %
15.50 %
Net interest margin2, 4
3.02 %
3.03 %
2.80 %
2.94 %
2.93 %
Efficiency ratio2
62.15 %
62.32 %
62.38 %
60.87 %
59.97 %
Adjusted noninterest income to operating revenue2
29.86 %
29.13 %
28.69 %
29.95 %
27.91 %
NON-GAAP FINANCIAL INFORMATION
Adjusted pre-provision net revenue1, 2
$
44,104
$
42,617
$
40,491
$
125,359
$
132,067
Adjusted net income2
33,533
29,016
30,730
89,080
96,889
Adjusted diluted earnings per share2
0.58
0.50
0.55
1.55
1.72
Adjusted pre-provision net revenue to average assets2, 3
1.46 %
1.42 %
1.32 %
1.39 %
1.44 %
Adjusted return on average assets2, 3
1.11 %
0.97 %
1.00 %
0.99 %
1.06 %
Adjusted return on average tangible common equity2, 3
13.41 %
12.21 %
14.34 %
12.42 %
15.51 %
Adjusted net interest margin2, 4
2.97 %
3.00 %
2.79 %
2.92 %
2.91 %
Adjusted efficiency ratio2
60.50 %
60.57 %
62.31 %
60.91 %
59.95 %
___________________________________________
First Busey Corporation (BUSE) | 2024 Q3 - 6
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(dollars in thousands, except per share amounts)
As of
September 30,
June 30,
September 30,
2024
2024
2023
ASSETS
$
553,709
$
285,269
$
337,919
Cash and cash equivalents
Debt securities available for sale
1,818,117
1,829,896
2,182,841
Debt securities held to maturity
838,883
851,261
882,614
Equity securities
10,315
9,618
8,782
Loans held for sale
11,523
11,286
3,051
Commercial loans
5,631,281
5,799,214
5,824,800
Retail real estate and retail other loans
2,177,816
2,199,698
2,031,360
Portfolio loans
7,809,097
7,998,912
7,856,160
Allowance for credit losses
(84,981)
(85,226)
(91,710)
Premises and equipment
120,279
121,647
122,538
Right of use asset
11,100
11,137
11,500
Goodwill and other intangible assets, net
368,249
370,580
356,343
Other assets
530,548
567,036
588,212
Total assets
$
11,986,839
$
11,971,416
$
12,258,250
LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing deposits
$
2,683,543
$
2,832,776
$
2,918,574
Interest-bearing checking, savings, and money market deposits
5,739,773
5,619,470
5,747,136
Time deposits
1,519,925
1,523,889
1,666,652
Total deposits
9,943,241
9,976,135
10,332,362
Securities sold under agreements to repurchase
128,429
140,283
183,702
Short-term borrowings
-
-
12,000
Long-term debt
227,482
227,245
243,666
Junior subordinated debt owed to unconsolidated trusts
74,754
74,693
71,946
Lease liability
11,470
11,469
11,783
Other liabilities
198,579
207,781
212,633
Total liabilities
10,583,955
10,637,606
11,068,092
Stockholders' equity
279,868
261,820
224,698
Retained earnings
Accumulated other comprehensive income (loss)
(170,913)
(220,326)
(290,730)
Other1
1,293,929
1,292,316
1,256,190
Total stockholders' equity
1,402,884
1,333,810
1,190,158
Total liabilities & stockholders' equity
$
11,986,839
$
11,971,416
$
12,258,250
SHARE AND PER SHARE AMOUNTS
$
24.67
$
23.50
$
21.51
Book value per common share
Tangible book value per common share2
$
18.19
$
16.97
$
15.07
Ending number of common shares outstanding
56,872,241
56,746,937
55,342,017
___________________________________________
First Busey Corporation (BUSE) | 2024 Q3 - 7
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(dollars in thousands, except per share amounts)
INTEREST INCOME Interest and fees on loans
Interest and dividends on investment securities Other interest income
Total interest income
Three Months Ended
Nine Months Ended
September 30,
June 30,
September 30,
September 30,
September 30,
2024
2024
2023
2024
2023
$
111,336
$
109,641
$
99,844
$
320,302
$
284,423
18,072
19,173
21,234
57,182
62,360
5,092
3,027
1,591
14,590
3,890
$
134,500
$
131,841
$
122,669
$
392,074
$
350,673
INTEREST EXPENSE
$
46,634
$
43,709
$
37,068
$
134,311
$
78,576
Deposits
Federal funds purchased and securities sold under agreements
981
1,040
1,327
3,393
3,772
to repurchase
Short-term borrowings
26
418
1,964
676
12,527
Long-term debt
3,181
3,181
3,528
9,767
10,631
Junior subordinated debt owed to unconsolidated trusts
1,137
1,059
991
3,185
2,849
Total interest expense
$
51,959
$
49,407
$
44,878
$
151,332
$
108,355
Net interest income
$
82,541
$
82,434
$
77,791
$
240,742
$
242,318
Provision for credit losses
2
2,277
364
7,317
1,944
Net interest income after provision for credit losses
$
82,539
$
80,157
$
77,427
$
233,425
$
240,374
NONINTEREST INCOME
$
15,378
$
15,917
$
14,235
$
46,844
$
43,594
Wealth management fees
Fees for customer services
8,168
7,798
7,502
23,022
21,560
Payment technology solutions
5,265
5,915
5,226
16,889
15,772
Mortgage revenue
355
478
311
1,579
871
Income on bank owned life insurance
1,189
1,442
1,001
4,050
3,682
Realized net gains (losses) on the sale of mortgage servicing
rights
(18)
277
-
7,724
-
Net securities gains (losses)
822
(353)
(285)
(5,906)
(2,960)
Other noninterest income
4,792
2,327
3,018
10,550
8,349
Total noninterest income
$
35,951
$
33,801
$
31,008
$
104,752
$
90,868
NONINTEREST EXPENSE
$
44,593
$
43,478
$
39,677
$
130,161
$
119,867
Salaries, wages, and employee benefits
Data processing expense
6,910
7,100
5,930
20,560
17,472
Net occupancy expense of premises
4,633
4,590
4,594
13,943
13,896
Furniture and equipment expense
1,647
1,695
1,638
5,155
5,065
Professional fees
3,118
2,495
1,542
7,866
4,573
Amortization of intangible assets
2,548
2,629
2,555
7,586
7,953
Interchange expense
1,352
1,733
1,786
4,696
5,509
FDIC insurance
1,413
1,460
1,475
4,273
4,483
Other noninterest expense
9,712
10,357
11,748
27,992
31,735
Total noninterest expense
$
75,926
$
75,537
$
70,945
$
222,232
$
210,553
Income before income taxes
$
42,564
$
38,421
$
37,490
$
115,945
$
120,689
Income taxes
10,560
11,064
6,824
30,359
23,873
Net income
$
32,004
$
27,357
$
30,666
$
85,586
$
96,816
SHARE AND PER SHARE AMOUNTS
$
0.56
$
0.48
$
0.55
$
1.52
$
1.75
Basic earnings per common share
Diluted earnings per common share
$
0.55
$
0.47
$
0.54
$
1.49
$
1.72
Average common shares outstanding
57,033,359
56,919,025
55,486,700
56,458,430
55,441,980
Diluted average common shares outstanding
57,967,848
57,853,231
56,315,492
57,411,299
56,230,624
First Busey Corporation (BUSE) | 2024 Q3 - 8
BALANCE SHEET STRENGTH
Our balance sheet remains a source of strength. Total assets were $11.99 billion as of September 30, 2024, compared to $11.97 billion as of June 30, 2024, and $12.26 billion as of September 30, 2023.
We remain steadfast in our conservative approach to underwriting and disciplined approach to pricing, particularly given our outlook for the economy in the coming quarters, and this approach has impacted loan growth as predicted. Portfolio loans totaled $7.81 billion at September 30, 2024, compared to $8.00 billion at June 30, 2024, and $7.86 billion at September 30, 2023.
Average portfolio loans were $7.87 billion for the third quarter of 2024, compared to $8.01 billion for the second quarter of 2024 and $7.83 billion for the third quarter of 2023. Average interest-earning assets were $10.94 billion for the third quarter of 2024, compared to $10.99 billion for the second quarter of 2024, and $11.12 billion for the third quarter of 2023.
Total deposits were $9.94 billion at September 30, 2024, compared to $9.98 billion at June 30, 2024, and $10.33 billion at September 30, 2023. Average deposits were $10.00 billion for the third quarter of 2024, compared to $10.07 billion for the second quarter of 2024 and $10.14 billion for the third quarter of 2023. Deposit fluctuations over the last several quarters were driven by a number of elements, including
There were no short term borrowings as of September 30 or June 30, 2024, compared to $12.0 million at September 30, 2023. We had no borrowings from the Federal Home Loan Bank ("FHLB") at the end of the third quarter of 2024, the second quarter of 2024, or the third quarter of 2023. We have sufficient on- and off-balance sheet liquidity5 to manage deposit fluctuations and the liquidity needs of our customers. As of September 30, 2024, our available sources of on- and off-balance sheet liquidity totaled $6.37 billion. We have executed various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds. New certificate of deposit production in the third quarter of 2024 had a weighted average term of 8.1 months at a rate of 4.18%, 67 basis points below our average marginal wholesale equivalent-term funding cost during the quarter. Furthermore, our balance sheet liquidity profile continues to be aided by the cash flows we expect from our relatively short-duration securities portfolio. Those cash flows were approximately $81.1 million in the third quarter of 2024. For the remainder of 2024, cash flows from our securities portfolio are expected to be approximately $97.1 million with a current book yield of 2.18%.
First Busey Corporation (BUSE) | 2024 Q3 - 9
ASSET QUALITY
Credit quality continues to be strong. Loans 30-89 days past due totaled $10.1 million as of September 30, 2024, compared to $23.5 million as of June 30, 2024, and $5.9 million as of September 30, 2023. The decrease in loans that were 30-89 days past due is primarily attributable to a single commercial real estate loan in the second quarter that is no longer past due as of September 30, 2024. Non-performing loans were $8.2 million as of September 30, 2024, compared to $9.1 million as of June 30, 2024, and $12.0 million as of September 30, 2023. Continued disciplined credit management resulted in non-performing loans as a percentage of portfolio loans of 0.11% as of both September 30, 2024, and June 30, 2024, and 0.15% as of September 30, 2023. Non-performing assets were 0.07% of total assets for the third quarter of 2024, compared to 0.08% for the second quarter of 2024 and 0.10% for the third quarter of 2023. Our total classified assets were $89.0 million at September 30, 2024, compared to $95.8 million at June 30, 2024, and $59.6 million at September 30, 2023. Our ratio of classified assets to estimated bank Tier 1 capital4 and reserves remains low by historical standards, at 5.9% as of September 30, 2024, compared to 6.4% as of June 30, 2024, and 4.1% as of September 30, 2023.
Net charge-offs were $0.2 million for the third quarter of 2024, compared to $9.9 million for the second quarter of 2024, and $0.3 million for the third quarter of 2023. Charge-offs in the second quarter of 2024 were primarily in connection with a single commercial and industrial credit relationship that also experienced a partial charge-off during the first quarter of 2024. The allowance as a percentage of portfolio loans was 1.09% as of September 30, 2024, compared to 1.07% as of June 30, 2024, and 1.17% as of September 30, 2023. The ratio was impacted in 2024 by the acquisition of M&M's Life Equity LoanĀ® portfolio, as Busey did not record an allowance for credit loss for these loans due to no expected credit loss at default, as permitted under the practical expedient provided within the Accounting Standards Codification 326-20-35-6. The allowance coverage for non-performing loans was 10.34 times as of September 30, 2024, compared to 9.36 times as of June 30, 2024, and 7.64 times as of September 30, 2023.
Busey maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment.
First Busey Corporation (BUSE) | 2024 Q3 - 10
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First Busey Corporation published this content on November 21, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 21, 2024 at 04:59:02.616.