First Busey Bancorp (BUSE) in Champaign, Ill., reported a dip in quarterly profit as lending revenue fell and expenses rose.
The $3.6 billion-asset company said Tuesday that it earned $6.4 million in the first quarter, a 16% drop from the first quarter of 2012. Earnings per share of 6 cents met analysts' expectations.
Net interest income fell 4%, to $24.6 million, as net interest margin decreased by 21 basis points, to 3.10%. Provision for loan losses was $2 million, $3 million lower than in the prior-year quarter, and net chargeoffs fell 77%, to $2.2 million.
Noninterest income fell 7%, to $16.6 million, as income from First Busey's investment in private-equity funds fell. Noninterest expenses rose 9%, to $29.6 million, led by a rise in compensation costs.