CORRECTED-First Busey Q2 adjusted profit meets expectations at $0.63

Overview

• First Busey Q2 adjusted EPS meets analyst expectations at $0.63, per LSEG data

• Adjusted net income for Q2 was $57.4 mln

• Company completed CrossFirst Bank merger, enhancing service offerings

Outlook

• Company expects deposit beta to normalize between 45% and 50% of fed funds target

• Busey anticipates realizing 50% of $25 mln in annual pre-tax synergies from CrossFirst acquisition in 2025

• Company continues to evaluate hedging strategies for net interest income stabilization

• Busey expects deposit cost of funds to stabilize during the year

Result Drivers

• CROSSFIRST ACQUISITION - Full quarter of income from CrossFirst acquisition boosted net interest and noninterest income

• EXPENSES - Increased expenses due to acquisition-related costs and restructuring

• DEPOSIT COSTS - Higher deposit costs from acquired CrossFirst indexed/managed rate products

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for First Busey Corp is $26.00, about 7.2% above its July 21 closing price of $24.14

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nGNX3L2VHH