First Busey Q2 2025 slides: Earnings surge following CrossFirst merger

First Busey Corporation (NASDAQ:BUSE) reported strong second-quarter results on July 22, 2025, highlighted by significant earnings growth following its successful merger with CrossFirst Bank. The company’s presentation revealed substantial improvements in key profitability metrics and outlined its regional expansion strategy.

Quarterly Performance Highlights

First Busey reported adjusted earnings per share of $0.63 for Q2 2025, up from $0.57 in the previous quarter. Adjusted net income reached $57.2 million, a substantial increase from $39.9 million in Q1. The company’s adjusted return on average tangible common equity (ROATCE) improved to 13.61% from 10.64% quarter-over-quarter, while adjusted return on average assets (ROAA) rose to 1.21% from 1.09%.

As shown in the following earnings performance chart, First Busey has maintained consistent growth in its adjusted earnings metrics over the past several quarters:

The company’s net interest margin expanded significantly to 3.49% in Q2, a 33 basis point improvement from 3.16% in Q1 (excluding purchase accretion). This improvement reflects the company’s successful balance sheet optimization strategy. Meanwhile, the adjusted efficiency ratio improved to 55.3% from 58.7% in the previous quarter.

Strategic Initiatives and CrossFirst Integration

The most significant development during the quarter was the successful merger of CrossFirst Bank ($7.5 billion in assets) into Busey Bank on June 20, 2025. The acquisition of CrossFirst Bankshares (NASDAQ:CFB) was completed earlier on March 1, 2025. According to the presentation, core systems were fully converted with minimal data challenges and limited client impact.

The following slide details the key initiatives and financial results from Q2 2025:

The CrossFirst transaction is expected to deliver estimated EPS accretion of over 18% in 2026 (excluding one-time merger charges and assuming full realization of expected cost savings). The acquisition enhances Busey’s growth profile by expanding into attractive new markets and leveraging excess capital to generate improved profitability.

On the capital management front, First Busey closed a $215 million preferred stock offering priced at 8.25% fixed for life on May 20, 2025. The proceeds were primarily used to pay off $125 million of subordinated debt that was scheduled to start floating in the mid-9% range. This strategic move helped increase the company’s Tier 1 capital ratio to 13.7% at the end of Q2 from 12.0% at the end of Q1.

The company also continued its share repurchase program, returning $21.7 million to shareholders during the quarter, while maintaining its quarterly dividend of $0.25 per share (4.1% yield).

Business Segments and Regional Strategy

First Busey operates through three main business segments: BuseyBank, Busey Wealth Management, and FirsTech. This diversified business model provides multiple revenue streams, with noninterest income representing 20.2% of operating revenue for Q2 2025.

The company’s comprehensive business model is illustrated in the following slide:

Following the CrossFirst acquisition, First Busey now operates across 10 states with 78 banking centers. The company’s regional operating model spans the Central, Midwest, East, West, and Texas regions, with a particular focus on high-growth metropolitan areas.

The company’s presence in top metropolitan statistical areas (MSAs) positions it well for continued growth, as shown in this market overview:

First Busey’s regional operating model allows it to implement an integrated enterprise-wide strategy focused on combining commercial and wealth management services to provide comprehensive financial solutions:

Loan Portfolio and Credit Quality

First Busey maintains a high-quality, diversified loan portfolio totaling $13.8 billion as of Q2 2025. Commercial & Industrial loans represent 32% of the portfolio, while Commercial Real Estate (both owner-occupied and non-owner occupied) accounts for 40%.

The composition of the loan portfolio is detailed in the following slide:

Credit quality remains strong, with non-performing assets at just 0.31% of total assets. The allowance for credit losses to loans ratio stood at 1.33%, while the allowance to non-performing loans multiple was 3.36x, indicating robust reserve levels.

Capital Position and Franchise Value

First Busey continues to build franchise value, with tangible common book value per share reaching $19.18 at the end of Q2 2025, representing a 13.0% increase from $16.97 a year earlier. The company has achieved a 6.3% 10-year CAGR in tangible common book value per share.

The following chart illustrates the company’s consistent growth in tangible book value over the past decade, along with its strategic acquisitions:

The company maintains a strong capital position, with a leverage ratio of 11.3%, CET1 ratio of 12.2%, and total risk-based capital ratio of 15.8% as of June 30, 2025. The tangible common equity to tangible assets ratio improved to 9.27% from 8.30% a year earlier.

Investment Highlights and Outlook

First Busey’s investment case is built on its diversified business model, disciplined growth strategy, and attractive profitability metrics. The company’s market presence in high-growth regions positions it well for continued expansion.

The key investment highlights are summarized in the following slide:

In after-hours trading following the earnings release, First Busey shares rose 1.95% to $24.61, reflecting positive investor reaction to the strong quarterly results. The stock has traded in a 52-week range of $18.40 to $28.97, with a current market capitalization of approximately $2.2 billion.

With its successful integration of CrossFirst Bank, improving profitability metrics, and strong capital position, First Busey appears well-positioned to continue its growth trajectory and deliver value to shareholders.

Full presentation:

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