FIRST BUSEY Q2 Profit Dips Amid Revenue Decline
Ticker: BUSEP · Form: 10-Q · Filed: Aug 5, 2025 · CIK: 314489
| Field | Detail |
|---|---|
| Company | First Busey Corp /NV/ (BUSEP) |
| Form Type | 10-Q |
| Filed Date | Aug 5, 2025 |
| Risk Level | medium |
| Sentiment | bearish |
Sentiment: bearish
Topics: Banking, Regional Bank, Earnings Decline, Revenue Miss, Financial Services, Interest Rate Risk, Preferred Stock
TL;DR
BUSEP's Q2 profit drop and revenue slide signal a tough banking environment; consider selling.
AI Summary
FIRST BUSEY CORP /NV/ reported a net income of $25.3 million for the second quarter of 2025, a decrease from $28.1 million in the same period of 2024. Total revenue for Q2 2025 was $105.7 million, down from $110.2 million in Q2 2024, primarily due to a decline in net interest income. Non-interest income saw mixed results, with asset management fees increasing to $12.5 million in Q2 2025 from $11.8 million in Q2 2024, while card services and ATM fees decreased to $5.2 million from $5.5 million. The company's strategic outlook emphasizes continued focus on treasury management services, which generated $7.8 million in Q2 2025, up from $7.5 million in Q2 2024. Key risks include interest rate fluctuations impacting net interest margin and potential credit quality deterioration, although specific provisions for credit losses were not detailed in the provided excerpt. The company maintained its common stock at $0.001 par value and preferred stock at $0.001 par value.
Why It Matters
For investors, the dip in net income and revenue signals potential headwinds in the banking sector, particularly concerning net interest income. This could impact dividend sustainability and stock performance, especially for BUSEP preferred shareholders. Employees might face pressure if cost-cutting measures are implemented to offset revenue declines. Customers could see changes in service offerings or fee structures as the bank adapts to market conditions. In a competitive landscape, this performance could put FIRST BUSEY at a disadvantage against peers who are better navigating interest rate environments or growing non-interest income streams more effectively.
Risk Assessment
Risk Level: medium — The decrease in net income from $28.1 million in Q2 2024 to $25.3 million in Q2 2025, coupled with a revenue decline from $110.2 million to $105.7 million, indicates financial pressure. While not severe, these trends suggest potential challenges in maintaining profitability and growth, warranting a medium risk assessment.
Analyst Insight
Investors should closely monitor FIRST BUSEY's upcoming earnings reports for signs of stabilization in net interest income and growth in non-interest revenue streams. Consider holding if you believe the revenue decline is temporary, but be prepared to sell if the negative trends persist for more than two consecutive quarters.
Financial Highlights
- revenue
- $105.7M
- net Income
- $25.3M
- revenue Growth
- -4.08%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Asset Management Fees | $12.5M | +5.93% |
| Treasury Management Services | $7.8M | +4.00% |
| Card Services and ATM Fees | $5.2M | -5.45% |
Key Numbers
- $25.3M — Net Income Q2 2025 (Decreased from $28.1M in Q2 2024, indicating a 9.96% decline.)
- $105.7M — Total Revenue Q2 2025 (Down from $110.2M in Q2 2024, a 4.08% reduction.)
- $12.5M — Asset Management Fees Q2 2025 (Increased from $11.8M in Q2 2024, showing positive growth in this segment.)
- $5.2M — Card Services and ATM Fees Q2 2025 (Decreased from $5.5M in Q2 2024, a slight decline in transactional income.)
- $7.8M — Treasury Management Services Q2 2025 (Increased from $7.5M in Q2 2024, highlighting a growing non-interest income stream.)
Key Players & Entities
- FIRST BUSEY CORP /NV/ (company) — filer of the 10-Q
- $25.3 million (dollar_amount) — net income for Q2 2025
- $28.1 million (dollar_amount) — net income for Q2 2024
- $105.7 million (dollar_amount) — total revenue for Q2 2025
- $110.2 million (dollar_amount) — total revenue for Q2 2024
- $12.5 million (dollar_amount) — asset management fees in Q2 2025
- $11.8 million (dollar_amount) — asset management fees in Q2 2024
- $5.2 million (dollar_amount) — card services and ATM fees in Q2 2025
- $5.5 million (dollar_amount) — card services and ATM fees in Q2 2024
- $7.8 million (dollar_amount) — treasury management services revenue in Q2 2025
FAQ
What was FIRST BUSEY CORP /NV/'s net income for Q2 2025?
FIRST BUSEY CORP /NV/ reported a net income of $25.3 million for the second quarter of 2025, which is a decrease from $28.1 million in the same period of 2024.
How did FIRST BUSEY's total revenue change in Q2 2025 compared to Q2 2024?
Total revenue for FIRST BUSEY CORP /NV/ in Q2 2025 was $105.7 million, a decline from $110.2 million reported in Q2 2024.
What were the key drivers of non-interest income for FIRST BUSEY in Q2 2025?
Key drivers of non-interest income for FIRST BUSEY in Q2 2025 included asset management fees of $12.5 million and treasury management services revenue of $7.8 million.
Did FIRST BUSEY's asset management fees increase or decrease in Q2 2025?
FIRST BUSEY's asset management fees increased to $12.5 million in Q2 2025 from $11.8 million in Q2 2024, showing positive growth in this segment.
What is the par value of FIRST BUSEY's common stock?
The common stock of FIRST BUSEY CORP /NV/ has a par value of $0.001 per share, as indicated in the filing.
What is the par value of FIRST BUSEY's preferred stock?
FIRST BUSEY CORP /NV/'s preferred stock, specifically the 8.25% Fixed-Rate Series B Non-Cumulative Perpetual Preferred Stock, also has a par value of $0.001 per share.
What is the significance of the decline in net interest income for FIRST BUSEY?
The decline in net interest income for FIRST BUSEY is significant as it is a primary component of the bank's revenue, and its reduction contributed to the overall decrease in total revenue from $110.2 million to $105.7 million.
How do card services and ATM fees contribute to FIRST BUSEY's revenue?
Card services and ATM fees contributed $5.2 million to FIRST BUSEY's revenue in Q2 2025, though this was a slight decrease from $5.5 million in Q2 2024.
What is the fiscal year end for FIRST BUSEY CORP /NV/?
The fiscal year end for FIRST BUSEY CORP /NV/ is December 31, as stated in the filing data.
Where is FIRST BUSEY CORP /NV/ headquartered?
FIRST BUSEY CORP /NV/ has its business address at 11440 Tomahawk Creek Pkwy, Leawood, KS 66211.
Risk Factors
- Interest Rate Fluctuations [high — market]: Fluctuations in interest rates can significantly impact the company's net interest margin. The current environment presents a risk to profitability if rates move unfavorably.
- Credit Quality Deterioration [medium — financial]: Potential deterioration in credit quality of loans and leases could lead to increased provisions for credit losses, impacting earnings. Specific provisions were not detailed in the excerpt.
Industry Context
First Busey Corp operates within the commercial banking sector, characterized by intense competition and sensitivity to interest rate environments. Banks are increasingly focusing on diversifying revenue streams through fee-based services like asset and treasury management to mitigate risks associated with net interest income volatility.
Regulatory Implications
As a commercial bank, First Busey is subject to stringent regulatory oversight from bodies like the Federal Reserve and FDIC. Compliance with capital requirements, lending standards, and consumer protection laws are ongoing necessities that can impact operational flexibility and costs.
What Investors Should Do
- Monitor Net Interest Margin Trends
- Evaluate Growth in Fee-Based Income
- Assess Credit Loss Provisions
Key Dates
- 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q filing, showing financial performance and position.
- 2025-08-05: Filing Date of 10-Q — Indicates when the company officially submitted its quarterly financial report to the SEC.
Glossary
- Net Interest Income
- The difference between the interest income generated by a bank and the interest paid out to its depositors and lenders. (A primary driver of revenue for banks; a decline here directly impacted First Busey's total revenue.)
- Non-interest Income
- Revenue generated by a bank from sources other than interest income, such as fees from services. (Includes segments like asset management and treasury services, which are strategic growth areas for First Busey.)
- Net Income
- The company's profit after all expenses, taxes, and interest have been deducted from total revenue. (Key indicator of profitability; a decrease in net income was reported for Q2 2025.)
- Par Value
- The nominal or face value of a stock or bond, as stated by the issuer. (Indicates the minimum legal capital required for the company's common and preferred stock, set at $0.001.)
Year-Over-Year Comparison
Compared to the prior year's second quarter, First Busey Corp reported a decrease in both total revenue (down 4.08% to $105.7M) and net income (down 9.96% to $25.3M). This decline was primarily driven by a reduction in net interest income. However, the company saw positive growth in key non-interest income segments like asset management fees and treasury management services, which may offer some offset to the revenue pressures.
Filing Details
This Form 10-Q (Form 10-Q) was filed with the SEC on August 5, 2025 regarding FIRST BUSEY CORP /NV/ (BUSEP).