CHAMPAIGN, Il., July 23, 2024 (GLOBE NEWSWIRE) --  First Busey Corporation (NASDAQ:BUSE)   Net Income of $27.4 millionDiluted EPS of $0.47   SECOND QUARTER 2024 HIGHLIGHTS Adjusted net income1 of $29.0 million, or $0.50 per diluted common share Net interest margin1 increased by 24 basis points to 3.03% from 2.79% in the prior quarter Noninterest income of $33.8 million, and adjusted noninterest income1 of $33.9 million, or 29.1% of operating revenue1 Record high quarterly revenue for both the Wealth Management and FirsTech operating segments Finalized the acquisition of Merchants & Manufacturers Bank Corporation ("M&M") and its wholly owned subsidiary Merchants & Manufacturers Bank ("M&M Bank") on April 1, 2024, and completed the integration of M&M Bank into Busey Bank on June 21, 2024 Tangible book value per common share1 of $16.97 at June 30, 2024, compared to $16.84 at March 31, 2024, and $15.25 at June 30, 2023, a year-over-year increase of 11.3% Tangible common equity1 increased to 8.36% of tangible assets at June 30, 2024, compared to 8.12% at March 31, 2024, and 7.18% at June 30, 2023 For additional information, please refer to the 2Q24 Earnings Investor Presentation. MESSAGE FROM OUR CHAIRMAN & CEO Second Quarter Financial Results Net income for First Busey Corporation ("Busey," "Company," "we," "us," or "our") was $27.4 million for the second quarter of 2024, or $0.47 per diluted common share, compared to $26.2 million, or $0.46 per diluted common share, for the first quarter of 2024, and $29.4 million, or $0.52 per diluted common share, for the second quarter of 2023. Adjusted net income1, which excludes the impact of acquisition and restructuring expenses, was $29.0 million, or $0.50 per diluted common share, for the second quarter of 2024, compared to $26.5 million, or $0.47 per diluted common share, for the first quarter of 2024. Adjustments to net income for the second quarter of 2023 were immaterial. Annualized return on average assets and annualized return on average tangible common equity1 were 0.91% and 11.51%, respectively, for the second quarter of 2024. Annualized adjusted return on average assets1 and annualized adjusted return on average tangible common equity1 were 0.97% and 12.21%, respectively, for the second quarter of 2024. Second quarter results included $0.4 million in net securities losses, nearly all of which were unrealized, as well as an additional $0.3 million gain on the mortgage servicing right sale previously announced in the first quarter of 2024. In addition, second quarter results include a one-time deferred tax valuation adjustment of $1.4 million resulting from a change to our Illinois apportionment rate due to recently enacted regulations. These new regulations are expected to lower our ongoing tax obligation in future periods, but create a negative adjustment to the carrying value of our deferred tax asset in the current period. Excluding this one-time deferred tax valuation adjustment, the effective tax rate for the second quarter of 2024 would have been 25.0%, rather than the 28.8% reported, and further adjusted net income would have been $30.5 million, equating to further adjusted diluted earnings per share of $0.53. Pre-provision net revenue1 was $41.1 million for the second quarter of 2024, compared to $46.4 million for the first quarter of 2024 and $39.5 million for the second quarter of 2023. Pre-provision net revenue to average assets1 was 1.37% for the second quarter of 2024, compared to 1.55% for the first quarter of 2024, and 1.30% for the second quarter of 2023. Adjusted pre-provision net revenue1 was $42.6 million for the second quarter of 2024, compared to $38.6 million for the first quarter of 2024 and $42.1 million for the second quarter of 2023. Adjusted pre-provision net revenue to average assets1 was 1.42% for the second quarter of 2024, compared to 1.29% for the first quarter of 2024 and 1.38% for the second quarter of 2023. Our fee-based businesses continue to add revenue diversification. Total noninterest income was $33.8 million for the second quarter of 2024, compared to $35.0 million for the first quarter of 2024 and $28.0 million for the second quarter of 2023. Adjusted noninterest income1 was $33.9 million, or 29.1% of operating revenue1, during the second quarter of 2024, compared to $33.9 million, or 30.9% of total operating revenue, for the first quarter of 2024 and $30.1 million, or 27.7% of total operating revenue, for the second quarter of 2023. Wealth management fees and payment technology solutions contributed $15.9 million and $5.9 million, respectively, to our consolidated noninterest income for the second quarter of 2024, representing 64.6% of noninterest income on a combined basis. Busey views certain non-operating items, including acquisition-related and other restructuring charges, as adjustments to net income reported under U.S. generally accepted accounting principles ("GAAP"). Non-operating pretax adjustments for acquisition and other restructuring charges in the second quarter of 2024 were $2.2 million. Busey believes that its non-GAAP measures (which are identified with the endnote labeled as 1) facilitate the assessment of its financial results and peer comparability. For more information and a reconciliation of these non-GAAP measures in tabular form, see "Non-GAAP Financial Information." We have effectively managed our noninterest expense during a time of decades-high inflation and have been purposeful in our efforts to rationalize our expense base given our economic outlook and our view on the future of banking. Second quarter expenses include the costs of operating M&M Bank as a stand-alone bank from April 1, 2024, through June 21, 2024. Noninterest expense was $75.5 million in the second quarter of 2024, compared to $70.8 million in the first quarter of 2024 and $69.2 million in the second quarter of 2023. Adjusted noninterest expense1, which excludes the amortization of intangible assets and acquisition and restructuring related expenses, was $70.7 million in the second quarter of 2024, compared to $68.0 million in the first quarter of 2024 and $66.5 million in the second quarter of 2023. Quarterly pre-tax expense synergies resulting from the M&M acquisition are anticipated to be $1.6 million to $1.7 million per quarter when fully realized. Quarterly run-rate savings are projected to be achieved by the first quarter of 2025. During the second quarter of 2024, we achieved approximately 30% of the full quarterly savings. We expect to continue to prudently manage our expenses and to realize increased rates of M&M acquisition synergies during the second half of 2024. Acquisition of Merchants and Manufacturers Bank Corporation Completed April 1, 2024, and Integration of Merchants & Manufacturers Bank with and into Busey Bank Completed June 21, 2024 Effective April 1, 2024, Busey completed its previously announced acquisition (the "Merger") of M&M, pursuant to an Agreement and Plan of Merger, dated November 27, 2023, between Busey and M&M (the "Merger Agreement"). Upon completion of the Merger, each share of M&M common stock converted to the right to receive, at the election of each stockholder and subject to proration and adjustment, either (1) $117.74 in cash ("Cash Election"), (2) 5.7294 shares of Busey common stock ("Share Election"), or (3) mixed consideration of $34.55 in cash and 4.0481 shares of Busey common stock ("Mixed Election"). Most of the M&M common stockholders who submitted an election form by the election deadline made the Share Election to receive their Merger consideration solely in the form of shares of Busey common stock. As a result of the elections of M&M common stockholders, and in accordance with the proration and adjustment provisions of the Merger Agreement, the Merger consideration paid to M&M common stockholders was comprised of an aggregate of 1,429,304 shares of Busey common stock and an aggregate of $12.2 million in cash, allocated as follows for each share of M&M stock: (1) $117.74 in cash for the Cash Election, (2) $5.3966 in cash and 5.4668 shares of Busey common stock for the Share Election, and (3) $34.55 in cash and 4.0481 shares of Busey common stock for the Mixed Election. Pursuant to the terms of the Merger Agreement, M&M common stockholders that did not make an election or submit a properly completed election form by the election deadline of March 29, 2024, received cash consideration of $117.74 for each share of M&M common stock held. No fractional shares of Busey common stock were issued in the Merger. Fractional shares were paid in cash at the rate of $23.32 per share. Additional Merger consideration of $3.0 million was paid to redeem 300 shares of M&M preferred stock. The M&M transaction added loans with a fair value of $418.7 million and deposits with a fair value of $392.8 million as of the acquisition date. Busey incurred one-time pre-tax acquisition-related expenses of $2.1 million in the second quarter of 2024 related to M&M. On June 21, 2024, M&M Bank was merged with and into Busey Bank (the "Bank Merger"). At the time of the Bank Merger, M&M Bank's banking centers became banking centers of Busey Bank, except for the banking center located at 990 Essington Rd., Joliet, Illinois, which was closed in connection with the Bank Merger. Services were assumed by the existing Busey Bank banking center located at 2801 Black Rd., Joliet, Illinois, which is less than one mile away from where the Essington banking center was located. This partnership adds M&M's Life Equity Loan® products to Busey's existing suite of services and expands Busey's presence in the suburban Chicago area. Busey's Conservative Banking Strategy Busey's financial strength is built on a long-term conservative operating approach. That focus will not change now or in the future. The quality of our core deposit franchise is a critical value driver of our institution. Our granular deposit base continues to position us well, with core deposits1 representing 96.4% of our deposits as of June 30, 2024. Our retail deposit base was comprised of more than 256,000 accounts with an average balance of $22 thousand and an average tenure of 16.8 years as of June 30, 2024. Our commercial deposit base was comprised of more than 33,000 accounts with an average balance of $96 thousand and an average tenure of 12.5 years as of June 30, 2024. We estimated that 29% of our deposits were uninsured and uncollateralized2 as of June 30, 2024, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers. Asset quality remains strong by both Busey's historical and current industry trends. Non-performing assets decreased to $9.2 million during the second quarter of 2024, representing 0.08% of total assets. Busey's results for the second quarter of 2024 include a $2.3 million provision expense for credit losses and a $0.4 million provision release for unfunded commitments. The allowance for credit losses was $85.2 million as of June 30, 2024, representing 1.07% of total portfolio loans outstanding, and 936.0% of non-performing loans. Busey recorded net charge-offs of $9.9 million in the second quarter of 2024, primarily in connection with a single commercial and industrial credit relationship that also experienced a partial charge-off during the first quarter of 2024. A specific reserve of $7.2 million had previously been allocated against this credit relationship. As of June 30, 2024, our commercial real estate loan portfolio of investor-owned office properties within Central Business District3 areas is minimal at $2.2 million. Our credit performance continues to reflect our highly diversified, conservatively underwritten loan portfolio, which has been originated predominantly to established customers with tenured relationships with our company. The strength of our balance sheet is also reflected in our capital foundation. In the second quarter of 2024, our Common Equity Tier 1 ratio4 was 13.19% and our Total Capital to Risk Weighted Assets ratio4 was 17.49%. Our regulatory capital ratios continue to provide a buffer of more than $540 million above levels required to be designated well-capitalized. Our Tangible Common Equity ratio1 increased to 8.36% during the second quarter of 2024, compared to 8.12% for the first quarter of 2024 and 7.18% for the second quarter of 2023. Busey's tangible book value per common share1 increased to $16.97 at June 30, 2024, from $16.84 at March 31, 2024, and $15.25 at June 30, 2023, reflecting an 11.3% year-over-year increase. During the second quarter of 2024, we paid a common share dividend of $0.24. Community Banking Busey's commitment to bettering the communities we serve includes providing our Pillars with wide-ranging access to financial education tools. We're pleased to offer Financial Pathways, a complimentary educational platform that provides an engaging learning experience through a series of interactive modules that deliver actionable financial education. Through the Financial Pathways Engage program, community members of all ages can learn how to manage their finances and plan for the future through educational workshops. The Engage program is led by Busey associates who are certified facilitators trained to lead the in-person and virtual sessions. After April's training, we now have more than 70 Busey associates certified as Financial Pathways facilitators to offer valuable financial education to fellow associates, customers, and community members. As we build upon Busey's forward momentum and our strategic growth plans, we are grateful for the opportunities to consistently earn the business of our customers, based on the contributions of our talented associates and the continued support of our loyal shareholders.     Van A. Dukeman   Chairman and Chief Executive Officer   First Busey Corporation SELECTED FINANCIAL HIGHLIGHTS(unaudited) (dollars in thousands, except per share amounts)                       Three Months Ended   Six Months Ended   June 30,2024   March 31,2024   June 30,2023   June 30,2024   June 30,2023 EARNINGS & PER SHARE AMOUNTS                   Net income $ 27,357     $ 26,225     $ 29,364     $ 53,582     $ 66,150   Diluted earnings per common share   0.47       0.46       0.52       0.94       1.18   Cash dividends paid per share   0.24       0.24       0.24       0.48       0.48   Pre-provision net revenue1, 2   41,051       46,373       39,536       87,424       87,454   Operating revenue2   116,311       109,677       108,741       225,988       227,062                       Net income by operating segments:                   Banking   26,697       26,492       30,665       53,189       67,500   FirsTech   28       86       226       114       188   Wealth Management   5,561       4,998       4,932       10,559       9,790                       AVERAGE BALANCES                   Cash and cash equivalents $ 346,381     $ 594,193     $ 235,858     $ 470,287     $ 229,563   Investment securities   2,737,313       2,907,144       3,255,741       2,822,228       3,307,575   Loans held for sale   9,353       4,833       1,941       7,093       1,796   Portfolio loans   8,010,636       7,599,316       7,755,618       7,804,976       7,733,370   Interest-earning assets   10,993,907       10,999,903       11,130,298       10,996,905       11,155,291   Total assets   12,089,692       12,024,208       12,209,865       12,056,950       12,236,643                       Noninterest-bearing deposits   2,816,293       2,708,586       3,054,483       2,762,439       3,163,011   Interest-bearing deposits   7,251,582       7,330,105       6,797,588       7,290,844       6,717,939   Total deposits   10,067,875       10,038,691       9,852,071       10,053,283       9,880,950                       Federal funds purchased and securities sold under agreements to repurchase   144,370       178,659       201,020       161,514       215,604   Interest-bearing liabilities   7,725,832       7,831,655       7,762,628       7,778,744       7,689,187   Total liabilities   10,757,877       10,748,484       11,001,930       10,753,180       11,047,164   Stockholders' equity - common   1,331,815       1,275,724       1,207,935       1,303,770       1,189,479   Tangible common equity2   955,591       922,710       847,294       939,150       827,489                       PERFORMANCE RATIOS                   Pre-provision net revenue to average assets1, 2, 3   1.37 %     1.55 %     1.30 %     1.46 %     1.44 % Return on average assets3   0.91 %     0.88 %     0.96 %     0.89 %     1.09 % Return on average common equity3   8.26 %     8.27 %     9.75 %     8.26 %     11.21 % Return on average tangible common equity2, 3   11.51 %     11.43 %     13.90 %     11.47 %     16.12 % Net interest margin2, 4   3.03 %     2.79 %     2.86 %     2.91 %     2.99 % Efficiency ratio2   62.32 %     58.13 %     60.87 %     60.22 %     58.82 % Adjusted noninterest income to operating revenue2   29.13 %     30.92 %     27.65 %     30.00 %     27.54 %                     NON-GAAP FINANCIAL INFORMATION                   Adjusted pre-provision net revenue1, 2 $ 42,617     $ 38,638     $ 42,072     $ 81,255     $ 91,576   Adjusted net income2   29,016       26,531       29,373       55,547       66,159   Adjusted diluted earnings per share2   0.50       0.47       0.52       0.97       1.18   Adjusted pre-provision net revenue to average assets2, 3   1.42 %     1.29 %     1.38 %     1.36 %     1.51 % Adjusted return on average assets2, 3   0.97 %     0.89 %     0.96 %     0.93 %     1.09 % Adjusted return on average tangible common equity2, 3   12.21 %     11.56 %     13.90 %     11.89 %     16.12 % Adjusted net interest margin2, 4   3.00 %     2.78 %     2.84 %     2.89 %     2.98 % Adjusted efficiency ratio2   60.57 %     61.70 %     60.86 %     61.12 %     58.81 % ___________________________________________ Net interest income plus noninterest income, excluding securities gains and losses, less noninterest expense. See "Non-GAAP Financial Information" for reconciliation. For quarterly periods, measures are annualized. On a tax-equivalent basis, assuming a federal income tax rate of 21%. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (dollars in thousands, except per share amounts)               As of   June 30,2024   March 31,2024   June 30,2023 ASSETS           Cash and cash equivalents $ 285,269     $ 591,071     $ 232,703   Debt securities available for sale   1,829,896       1,898,072       2,283,848   Debt securities held to maturity   851,261       862,218       894,102   Equity securities   9,618       9,790       9,034   Loans held for sale   11,286       6,827       1,545               Commercial loans   5,799,214       5,606,241       5,793,426   Retail real estate and retail other loans   2,199,698       1,981,836       2,011,858   Portfolio loans   7,998,912       7,588,077       7,805,284               Allowance for credit losses   (85,226 )     (91,562 )     (91,639 ) Premises and equipment   121,647       121,506       122,669   Goodwill and other intangible assets, net   370,580       351,455       358,898   Right of use asset   11,137       10,590       11,806   Other assets   567,036       539,414       580,779   Total assets $ 11,971,416     $ 11,887,458     $ 12,209,029               LIABILITIES & STOCKHOLDERS' EQUITY           Liabilities           Deposits:           Noninterest-bearing deposits $ 2,832,776     $ 2,784,338     $ 3,086,885   Interest-bearing checking, savings, and money market deposits   5,619,470       5,598,675       5,504,255   Time deposits   1,523,889       1,577,178       1,471,615   Total deposits   9,976,135       9,960,191       10,062,755               Securities sold under agreements to repurchase   140,283       147,175       202,953   Short-term borrowings   —       —       212,000   Long-term debt   227,245       223,100       246,454   Junior subordinated debt owed to unconsolidated trusts   74,693       72,040       71,900   Lease liability   11,469       10,896       12,059   Other liabilities   207,781       191,405       198,960   Total liabilities   10,637,606       10,604,807       11,007,081               Stockholders' equity           Retained earnings   261,820       248,412       207,660   Accumulated other comprehensive income (loss)   (220,326 )     (222,190 )     (260,921 ) Other1   1,292,316       1,256,429       1,255,209   Total stockholders' equity   1,333,810       1,282,651       1,201,948   Total liabilities & stockholders' equity $ 11,971,416     $ 11,887,458     $ 12,209,029               SHARE AND PER SHARE AMOUNTS           Book value per common share $ 23.50     $ 23.19     $ 21.74   Tangible book value per common share2 $ 16.97     $ 16.84     $ 15.25   Ending number of common shares outstanding   56,746,937       55,300,008       55,290,847   ___________________________________________ Net balance of common stock ($0.001 par value), additional paid-in capital, and treasury stock. See "Non-GAAP Financial Information" for reconciliation. CONDENSED CONSOLIDATED STATEMENTS OF INCOME(unaudited) (dollars in thousands, except per share amounts)                       Three Months Ended   Six Months Ended   June 30,2024   March 31,2024   June 30,2023   June 30,2024   June 30,2023 INTEREST INCOME                   Interest and fees on loans $ 109,641     $ 99,325     $ 94,804     $ 208,966     $ 184,579   Interest and dividends on investment securities   19,173       19,937       20,784       39,110       41,126   Other interest income   3,027       6,471       1,311       9,498       2,299   Total interest income $ 131,841     $ 125,733     $ 116,899     $ 257,574     $ 228,004                       INTEREST EXPENSE                   Deposits $ 43,709     $ 43,968     $ 26,768     $ 87,677     $ 41,508   Federal funds purchased and securities sold under agreements to repurchase   1,040       1,372       1,223       2,412       2,445   Short-term borrowings   418       232       5,741       650       10,563   Long-term debt   3,181       3,405       3,552       6,586       7,103   Junior subordinated debt owed to unconsolidated trusts   1,059       989       945       2,048       1,858   Total interest expense $ 49,407     $