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Investing.com -- First Busey Corporation (NASDAQ:BUSE) shares gained 2.9% after the regional bank reported second-quarter earnings that exceeded analyst expectations, driven by strong revenue growth following its acquisition of CrossFirst Bankshares (NASDAQ:CFB).
The company posted adjusted earnings of $0.63 per share, beating the analyst consensus of $0.60. Revenue reached $198.05 million, surpassing estimates of $193.73 million and representing a 69.9% increase compared to the same quarter last year.
"This quarter’s bank merger and data conversion represents a significant milestone for our organization," said Van A. Dukeman, Chairman and CEO. The company completed the merger of CrossFirst Bank into Busey Bank on June 20, making this the first full quarter with CrossFirst’s contribution to financial results.
Net interest income jumped to $153.2 million, up 85.6% from $82.5 million in the second quarter of 2024. The company’s net interest margin improved to 3.49%, compared to 3.03% a year earlier.
Total (EPA:TTEF) deposits stood at $15.80 billion at quarter-end, down from $16.46 billion at the end of the previous quarter, as the bank deliberately reduced higher-cost brokered deposits by $368.6 million during the period.
Asset quality remained strong with non-performing loans representing 0.40% of portfolio loans. The allowance for credit losses was $183.3 million, providing coverage of 3.36 times the non-performing loans balance.
"Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0 million, and we expect 50% of the identified synergies to be realized in 2025 and 100% in 2026," the company stated.
Busey’s tangible book value per common share increased 13.0% YoY to $19.18, reflecting the company’s continued financial strength despite capital deployment for the CrossFirst acquisition and ongoing share repurchases.
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