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First Busey Corporation (NASDAQ:BUSE), a Nevada-based financial institution with a market capitalization of $1.39 billion and a compelling 4.01% dividend yield, has reported significant executive transitions in a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company currently trades below its Fair Value, suggesting potential upside opportunity. The company confirmed the departure of Jeffrey D. Jones, the former Executive Vice President and Chief Financial Officer, effective Monday. His departure was not due to any disagreements regarding the company’s financial reporting or practices.
In line with the separation agreement dated February 18, 2025, Jones will receive a severance package which includes cash compensation of $1,045,935, a pro-rated 2025 bonus based on performance, one year of health insurance under COBRA, and $637,712 representing the pro-rata value of restricted stock units. His unvested equity awards will be forfeited, and he remains bound by non-competition and non-disclosure agreements.
Following Jones’s departure, the company has appointed Scott A. Phillips as the Interim Chief Financial Officer, effective the same day. Phillips, 46, has been with First Busey Corporation since 2019, serving as Senior Vice President, Corporate Controller, and Principal Accounting Officer. The transition comes at a time when InvestingPro data shows the company maintaining strong financial health with a "GOOD" overall rating and attractive P/E ratio of 12.14. He brings over 20 years of professional experience, including a background in auditing and financial reporting.
Phillips holds an MBA from Webster University, a BS in Accounting from the University of North Florida, and a BS in Business Administration from Coastal Carolina University. He is also an active member of the American Institute of Certified Public Accountants (AICPA). His compensation will continue under the existing arrangements with the company.
This executive reshuffle comes as First Busey Corporation continues its operations as a state commercial bank, with its principal offices in Champaign, Illinois. The company has maintained dividend payments for 37 consecutive years, demonstrating long-term financial stability. Four analysts have recently revised their earnings estimates upward for the upcoming period, suggesting positive momentum. The information provided is based on the company’s latest SEC filing and InvestingPro data, where subscribers can access additional insights and financial metrics.
In other recent news, First Busey Corporation has announced a 4.2% increase in its quarterly cash dividend to $0.25 per share, effective January 31, 2025. This decision underscores the company’s confidence in its financial stability and commitment to shareholder value. Meanwhile, First Busey’s fourth-quarter results showed a significant rise in wealth management fees, increasing by 22.4% to $16.8 million, although loan growth was limited, affecting the net interest margin. The Federal Reserve has approved First Busey’s merger with CrossFirst, expected to finalize by March 1, 2025, with analysts expressing confidence in the integration process.
In terms of analyst activity, Stephens has reduced First Busey’s stock price target to $26 from $29, maintaining an Equal Weight rating, while DA Davidson lowered its target to $25 from $28, keeping a Neutral rating. DA Davidson noted that the company’s clean credit and reduced provision expenses contributed to an earnings per share beat, despite stagnant revenue growth. Analysts from DA Davidson expect improvements in net interest margin and non-performing assets in early 2025, with the merger anticipated to positively impact financial results. However, both firms have adopted a cautious outlook, adjusting earnings forecasts and highlighting potential challenges in loan growth and integration.
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