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Yahoo
21-05-2025
- Business
- Yahoo
Why First Busey (BUSE) is a Top Dividend Stock for Your Portfolio
Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns. Headquartered in Leawood, First Busey (BUSE) is a Finance stock that has seen a price change of -4.54% so far this year. The bank holding company is currently shelling out a dividend of $0.25 per share, with a dividend yield of 4.44%. This compares to the Banks - Midwest industry's yield of 3.07% and the S&P 500's yield of 1.53%. In terms of dividend growth, the company's current annualized dividend of $1 is up 4.2% from last year. In the past five-year period, First Busey has increased its dividend 3 times on a year-over-year basis for an average annual increase of 2.21%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. First Busey's current payout ratio is 46%. This means it paid out 46% of its trailing 12-month EPS as dividend. BUSE is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.56 per share, which represents a year-over-year growth rate of 23.08%. From greatly improving stock investing profits and reducing overall portfolio risk to providing tax advantages, investors like dividends for a variety of different reasons. It's important to keep in mind that not all companies provide a quarterly payout. Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BUSE is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Busey Corporation (BUSE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Wire
13-05-2025
- Business
- Business Wire
KBRA Affirms Ratings for First Busey Corporation; Assigns Preferred Shares Rating
NEW YORK--(BUSINESS WIRE)--KBRA affirms the senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2 for Leawood, Kansas based First Busey Corporation (NASDAQ: BUSE) ('the company'). In addition, KBRA assigns a preferred shares rating of BBB- to BUSE. KBRA also affirms the deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for its subsidiary, Busey Bank. The Outlook for all long-term ratings is Stable. Key Credit Considerations First Busey's ratings are well-positioned in the rating category and supported by a strong and consistent earnings profile underpinned by a well-diversified revenue base, solid asset quality, and a comparatively low-cost, stable core deposit franchise. The company has maintained a solid track record of adjusted core ROA in the ~1.00%–1.10% range over the last five years, including 1.09% in 1Q25, which compares favorably to peers. This performance has been achieved despite industry-wide funding and NIM pressures. Busey's NIM increased to 3.16% in 1Q25 (3.08% adjusted), aided by proactive balance sheet repositioning, securities sales, and the CrossFirst Bankshares, Inc. ("CFB") acquisition completed March 1, 2025. The CFB acquisition is expected to further enhance net interest income and NIM, and earnings and efficiency metrics through cost savings, revenue synergies, notably in the wealth and payments businesses, and commercial lending scale. While total deposit costs increased post-acquisition, reaching 1.91% in 1Q25, this remains below peer averages, and management expects a slight increase 2Q25 with a full quarter of the acquired funding base before normalization in 2H25 as wholesale funding run-off continues. Credit quality remains sound with only modest increases in nonperforming and classified assets following the CFB acquisition. While classified assets rose to 8.4% of capital in 1Q25 from 5.6% at YE24, the increase was largely acquisition-driven and not indicative of broader portfolio deterioration. Net charge-offs also increased due to $29.6 million in write-downs on previously identified PCD loans, which were fully reserved for at acquisition close and did not require additional provisions. BUSE's disciplined underwriting, diversified loan mix, and strong reserve position (ACL at 1.41% of loans; 3.57x coverage of NPLs) continue to provide meaningful downside protection. Though some normalization of credit metrics is expected over time, the risk profile remains well-managed and within tolerable bounds in KBRA's view. Although BUSE's capital profile has been conservatively positioned with a solid credit track record, the company's CET1, Tier 1 and Total Capital ratios notably declined post-CFB acquisition from its historically strong levels. However, TCE increased to 8.8% in 1Q25 from 8.7% at 4Q24 and CET1 ratios remain solidly positioned at 12.0% at 1Q25. KBRA expects the company to build capital going forward fueled by BUSE's earnings power and conservative capital management history. Rating Sensitivities Demonstrating consistent outperformance in core and risk adjusted earnings, maintaining strong asset quality across a credit cycle or economic downturn, enhanced deposit gathering, and sustaining an above peer CET1 ratio could lead to positive rating momentum over time. Conversely, degradation in credit, including persistent losses meaningfully above peer levels, or aggressive capital management leading to capital ratios, notably the CET1 ratio, declining to levels substantially below peers could pressure the ratings. To access ratings and relevant documents, click here. Methodologies Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009402
Yahoo
13-05-2025
- Business
- Yahoo
KBRA Affirms Ratings for First Busey Corporation; Assigns Preferred Shares Rating
NEW YORK, May 13, 2025--(BUSINESS WIRE)--KBRA affirms the senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, and the short-term debt rating of K2 for Leawood, Kansas based First Busey Corporation (NASDAQ: BUSE) ("the company"). In addition, KBRA assigns a preferred shares rating of BBB- to BUSE. KBRA also affirms the deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for its subsidiary, Busey Bank. The Outlook for all long-term ratings is Stable. Key Credit Considerations First Busey's ratings are well-positioned in the rating category and supported by a strong and consistent earnings profile underpinned by a well-diversified revenue base, solid asset quality, and a comparatively low-cost, stable core deposit franchise. The company has maintained a solid track record of adjusted core ROA in the ~1.00%–1.10% range over the last five years, including 1.09% in 1Q25, which compares favorably to peers. This performance has been achieved despite industry-wide funding and NIM pressures. Busey's NIM increased to 3.16% in 1Q25 (3.08% adjusted), aided by proactive balance sheet repositioning, securities sales, and the CrossFirst Bankshares, Inc. ("CFB") acquisition completed March 1, 2025. The CFB acquisition is expected to further enhance net interest income and NIM, and earnings and efficiency metrics through cost savings, revenue synergies, notably in the wealth and payments businesses, and commercial lending scale. While total deposit costs increased post-acquisition, reaching 1.91% in 1Q25, this remains below peer averages, and management expects a slight increase 2Q25 with a full quarter of the acquired funding base before normalization in 2H25 as wholesale funding run-off continues. Credit quality remains sound with only modest increases in nonperforming and classified assets following the CFB acquisition. While classified assets rose to 8.4% of capital in 1Q25 from 5.6% at YE24, the increase was largely acquisition-driven and not indicative of broader portfolio deterioration. Net charge-offs also increased due to $29.6 million in write-downs on previously identified PCD loans, which were fully reserved for at acquisition close and did not require additional provisions. BUSE's disciplined underwriting, diversified loan mix, and strong reserve position (ACL at 1.41% of loans; 3.57x coverage of NPLs) continue to provide meaningful downside protection. Though some normalization of credit metrics is expected over time, the risk profile remains well-managed and within tolerable bounds in KBRA's view. Although BUSE's capital profile has been conservatively positioned with a solid credit track record, the company's CET1, Tier 1 and Total Capital ratios notably declined post-CFB acquisition from its historically strong levels. However, TCE increased to 8.8% in 1Q25 from 8.7% at 4Q24 and CET1 ratios remain solidly positioned at 12.0% at 1Q25. KBRA expects the company to build capital going forward fueled by BUSE's earnings power and conservative capital management history. Rating Sensitivities Demonstrating consistent outperformance in core and risk adjusted earnings, maintaining strong asset quality across a credit cycle or economic downturn, enhanced deposit gathering, and sustaining an above peer CET1 ratio could lead to positive rating momentum over time. Conversely, degradation in credit, including persistent losses meaningfully above peer levels, or aggressive capital management leading to capital ratios, notably the CET1 ratio, declining to levels substantially below peers could pressure the ratings. To access ratings and relevant documents, click here. Methodologies Financial Institutions: Bank & Bank Holding Company Global Rating Methodology ESG Global Rating Methodology Disclosures A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here. Information on the meaning of each rating category can be located here. Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at About KBRA Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan's Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Doc ID: 1009402 View source version on Contacts Analytical Contacts Brian Ropp, Managing Director (Lead Analyst)+1 John Rempe, Senior Director+1 Bain Rumohr, Managing Director+1 Ashley Phillips, Managing Director (Rating Committee Chair)+1 Business Development Contact Justin Fuller, Managing Director+1 Sign in to access your portfolio
Yahoo
03-03-2025
- Business
- Yahoo
First Busey Full Year 2024 Earnings: EPS Misses Expectations
Revenue: US$453.7m (up 3.2% from FY 2023). Net income: US$113.7m (down 7.2% from FY 2023). Profit margin: 25% (down from 28% in FY 2023). The decrease in margin was driven by higher expenses. EPS: US$2.01 (down from US$2.21 in FY 2023). Net interest margin (NIM): 2.95% (up from 2.89% in FY 2023). Cost-to-income ratio: 61.3% (up from 58.6% in FY 2023). Non-performing loans: 0.30% (up from 0.10% in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.4%. The primary driver behind last 12 months revenue was the Banking segment contributing a total revenue of US$391.4m (86% of total revenue). The largest operating expense was General & Administrative costs, amounting to US$232.9m (69% of total expenses). Explore how BUSE's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 28% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Banks industry in the US. Performance of the American Banks industry. The company's share price is broadly unchanged from a week ago. While it's very important to consider the profit and loss statement, you can also learn a lot about a company by looking at its balance sheet. We have a graphic representation of First Busey's balance sheet and an in-depth analysis of the company's financial position. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
