First Busey Corporation Announces 2026 Third Quarter Earnings
FIRST BUSEY CORP /NV/ (BUSE) filed an SEC Form 8-K — Results of Operations and Financial Condition. F I R S T B U S E Y C O R P O R A T I O N A N N O U N C E S 2 0 2 6 T H I R D Q U A R T E R E A R N I N G S Q 3 | 2 0 2 6 www.busey.com INVESTOR CONTACT: Tate McKay, Director of Investor Relations and Corporate Development | 217-351-6709 LEAWOOD, KS, October 27, 2026 (GLOBE NEWSW
How this was made
The 30-second read
Why it matters
The earnings release shows a dip in net income and higher credit loss provisions, which may trigger a short‑term sell‑off.
Market read
The earnings miss and higher provisions are likely to weigh on BUSE and could influence sentiment toward similar regional banks.
What to watch
The loan‑to‑deposit ratio improved to 82.5% and capital ratios remain strong, offering resilience
First Busey reported third-quarter 2026 net income of $55.8 million, or $0.61 per diluted common share, as a $9.6 million provision for credit losses tied primarily to one commercial relationship outweighed stable operating revenue and deposit growth.
Operating revenue was stable at $194.3 million, net interest income increased from the prior quarter, deposits increased by $408.8 million, and adjusted diluted EPS was $0.63. However, GAAP net income and diluted EPS declined sequentially, net interest margin declined to 3.58%, and a single commercial relationship drove a $10.0 million partial charge-off, higher provision expense, and higher non-performing assets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net interest income (three months ended September 30, 2026; dollars in thousands)GAAP | $153.1M | increased by $0.7 million | – |
| Total noninterest income (three months ended September 30, 2026; dollars in thousands)GAAP | $40.40M | decreased by 8.8% | decreased by 1.9% |
| Operating revenue (three months ended September 30, 2026; dollars in thousands)non-GAAP | $194.3M | stable at $194.3 million | – |
| Provision for credit losses (three months ended September 30, 2026; dollars in thousands)GAAP | $9.64M | increased to $9.6 million, compared to $2.2 million | – |
| Total noninterest expense (three months ended September 30, 2026; dollars in thousands)GAAP | $111.4M | decreased by 1.1% | decreased by 7.2% |
| Adjusted noninterest expense (three months ended September 30, 2026; dollars in thousands)non-GAAP | $110.3M | increased by 0.7% | declined by 2.2% |
| Income before income taxes (three months ended September 30, 2026; dollars in thousands)GAAP | $72.51M | – | – |
| Income taxes (three months ended September 30, 2026; dollars in thousands)GAAP | $16.66M | – | – |
| Effective income tax rate (three months ended September 30, 2026)GAAP | 22.98 % | – | – |
| Net income (three months ended September 30, 2026; dollars in thousands)GAAP | $55.84M | – | – |
| Adjusted net income (three months ended September 30, 2026; dollars in thousands)non-GAAP | $57.20M | – | – |
| Net income available to common stockholders (three months ended September 30, 2026; dollars in thousands)GAAP | $51.26M | – | – |
| Basic earnings per common share (three months ended September 30, 2026)GAAP | $ 0.62 | – | – |
| Diluted earnings per common share (three months ended September 30, 2026)GAAP | $ 0.61 | – | – |
| Adjusted diluted earnings per common share (three months ended September 30, 2026)non-GAAP | $ 0.63 | – | – |
| Net interest margin (three months ended September 30, 2026)non-GAAP | 3.58 % | – | – |
| Adjusted net interest margin (three months ended September 30, 2026)non-GAAP | 3.46 % | – | – |
| Efficiency ratio (three months ended September 30, 2026)non-GAAP | 54.4% | – | – |
| Return on average assets (three months ended September 30, 2026)non-GAAP | 1.20 % | – | – |
| Adjusted return on average assets (three months ended September 30, 2026)non-GAAP | 1.23 % | – | – |
| Return on average tangible common equity (three months ended September 30, 2026)non-GAAP | 12.93 % | – | – |
| Adjusted return on average tangible common equity (three months ended September 30, 2026)non-GAAP | 13.25 % | – | – |
| Pre-provision net revenue (three months ended September 30, 2026; dollars in thousands)non-GAAP | $82.85M | – | – |
| Adjusted pre-provision net revenue (three months ended September 30, 2026; dollars in thousands)non-GAAP | $83.95M | – | – |
| Net charge-offs (three months ended September 30, 2026; dollars in thousands)GAAP | $11.37M | increased by $5.0 million | increased by $5.5 million |
| Net charge-off ratio (three months ended September 30, 2026)other | 0.35 % | – | – |
| Total assets (as of September 30, 2026; dollars in thousands)GAAP | $18.56B | – | – |
| Total deposits (as of September 30, 2026; dollars in thousands)GAAP | $15.54B | increased by $408.8 million, or 2.7% | – |
| Portfolio loans (as of September 30, 2026; dollars in thousands)GAAP | $12.82B | – | – |
| Cash and cash equivalents (as of September 30, 2026; dollars in thousands)GAAP | $883.1M | – | – |
| Borrowings (as of September 30, 2026; dollars in thousands)GAAP | $302.2M | – | – |
| Allowance for credit losses (as of September 30, 2026; dollars in thousands)GAAP | $164.3M | – | – |
| Non-performing assets (as of September 30, 2026; dollars in thousands)other | $83.61M | increased by $13.3 million | increased by $25.9 million |
| Non-performing loans to portfolio loans (as of September 30, 2026)other | 0.64 % | – | – |
| Non-performing assets to total assets (as of September 30, 2026)other | 0.45 % | a 6 basis point increase | a 13 basis point increase |
| Loan-to-deposit ratio (as of September 30, 2026)other | 82.5% | – | – |
| Common equity Tier 1 capital to risk weighted assets (as of September 30, 2026)other | 12.47 % | – | – |
| Tangible common equity to tangible assets (as of September 30, 2026)non-GAAP | 8.70 % | – | – |
| Tangible book value per common share (as of September 30, 2026)non-GAAP | $ 19.37 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wealth management feesThe prior-quarter comparison was impacted by a $0.7 million decrease in seasonal tax preparation fees. | $19.85M | – | increased 15.5% from the prior year |
| Payment technology solutionsReported within noninterest income. | $5.11M | – | – |
| Treasury management servicesReported within noninterest income. | $4.82M | – | – |
| Capital markets incomeReported within noninterest income. | $1.47M | – | – |
| Card services and ATM feesReported within noninterest income. | $4.73M | – | – |
| Other service charges on deposit accountsReported within noninterest income. | $1.36M | – | – |
| Income on bank owned life insuranceReported within noninterest income. | $1.66M | – | – |
| Other noninterest incomeImpacted by a $0.7 million lower-of-cost-or-market adjustment associated with lender finance loans repositioned to held for sale. | $2.10M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- During the third quarter of 2026, Busey paid dividends of $0.26 per share on its outstanding shares of common stock.
- Busey paid dividends of $20.00 per share on its outstanding shares of Series A Non-Cumulative Perpetual Preferred Stock.
- Busey paid dividends of $0.515625 per share on its outstanding depositary shares, each representing a 1/40th interest in a share of Busey’s 8.25% Fixed-Rate Series B Non-Cumulative Perpetual Preferred Stock.
- During the third quarter of 2026, Busey purchased 1,972,900 shares of its common stock at a weighted average price of $30.21 per share for a total of $59.6 million (excluding excise taxes).
- As of September 30, 2026, Busey had 1,925,875 shares remaining available for repurchase under the plan.
- Year-to-date share repurchases were $188.4 million.
What drove it
- Net interest income increased by $0.7 million from the second quarter of 2026, driven by growth in average earning assets.
- Deposit balances increased by $408.8 million, or 2.7%, primarily from seasonal public funds inflows and strategic efforts to grow core customer deposits.
- Total deposit cost of funds increased from 1.80% during the second quarter of 2026 to 1.93% during the third quarter of 2026.
- Wealth Management ended the third quarter with $16.72 billion in assets under care, compared to $14.96 billion at the end of the third quarter of 2025.
- Total noninterest income declined sequentially primarily due to a $3.1 million unfavorable swing in net securities gains (losses).
- Total noninterest expense declined 7.2% from the third quarter of 2025, primarily due to lower salaries and employee benefits and FDIC insurance expense.
- A pool of lender finance commercial loans was reclassified to held for sale during the third quarter of 2026; loans held for sale included $3.0 million of mortgage loans and $65.1 million of commercial loans as of September 30, 2026.
Concerns
- One commercial relationship totaling $37.6 million moved to non-accrual status, incurred a $10.0 million partial charge-off, and was allocated an individual reserve of $17.8 million against the remaining $27.6 million September 30, 2026 balance.
- Provision for credit losses increased to $ 9,642 from $ 2,189 in the prior quarter.
- Net charge-offs were $ 11,368, compared to $ 6,382 in the prior quarter and $ 5,848 in the third quarter of 2025.
- Non-performing assets increased to $ 83,607 from $ 70,305 in the prior quarter and $ 57,724 in the third quarter of 2025.
- Net interest margin was 3.58 %, compared to 3.72 % in the prior quarter.
- Portfolio loans declined to $ 12,822,489 from $ 13,195,154 in the prior quarter.
- Accumulated other comprehensive income (loss) was $ (241,880) as of September 30, 2026, compared to $ (141,080) as of June 30, 2026.
What to watch
- Credit performance of the commercial relationship that moved to non-accrual status, including the remaining $27.6 million September 30, 2026 balance and $17.8 million individual reserve.
- Provision for credit losses, net charge-offs, non-performing assets, and the allowance for credit losses coverage ratio of 2.01 x.
- Deposit growth, deposit costs, and the loan-to-deposit ratio after it improved to 82.5%.
- Net interest margin following the sequential decline to 3.58% and the reported 1.93% total deposit cost of funds.
- Portfolio loan balances after the third-quarter decline and the repositioning of approximately $65 million of lender finance loans to held for sale.
- Capital ratios, which are estimates as of September 30, 2026 and are subject to change.
Balance sheet and cash flow
- Cash and cash equivalents were $ 883,053 as of September 30, 2026, compared to $ 665,373 as of June 30, 2026 and $ 371,894 as of September 30, 2025.
- Busey had cash and due from banks balances of $907.5 million at September 30, 2026.
- Total deposits were $ 15,537,566 as of September 30, 2026, compared to $ 15,128,745 as of June 30, 2026 and $ 15,070,162 as of September 30, 2025.
- Core deposits were $ 14,607,424 and core deposits to total deposits were 94.01 % as of September 30, 2026.
- Borrowings were $ 302,214 as of September 30, 2026, compared to $ 285,734 as of June 30, 2026 and $ 272,971 as of September 30, 2025.
- Available sources of on- and off-balance sheet liquidity totaled $9.36 billion as of September 30, 2026.
- Cash flows from the securities portfolio were approximately $138.0 million in the third quarter of 2026 and are expected to be approximately $89.6 million for the remainder of 2026, with a current book yield of 3.40%.
- Operating cash flow and free cash flow were not reported.
Analysis
First Busey delivered third-quarter 2026 GAAP net income of $55.8 million, or $0.61 per diluted common share, versus $63.2 million, or $0.69 per diluted common share, in the second quarter of 2026. Adjusted net income was $57.2 million and adjusted diluted EPS was $0.63, compared with $63.7 million and $0.69, respectively, in the prior quarter. The sequential earnings decline was principally associated with provision for credit losses of $9.6 million, up from $2.2 million. Pre-provision net revenue increased to $82.9 million from $81.6 million, while adjusted pre-provision net revenue was $84.0 million compared with $84.8 million.
Core revenue trends were mixed. Net interest income increased by $0.7 million from the second quarter, driven by growth in average earning assets, while operating revenue was stable at $194.3 million. Net interest margin declined to 3.58% from 3.72%, and adjusted net interest margin declined to 3.46% from 3.62%. Deposit gathering was strong, with balances increasing by $408.8 million, or 2.7%, and the loan-to-deposit ratio improving to 82.5% from 87.2%. Deposit costs rose, however, as total deposit cost of funds increased to 1.93% from 1.80%.
Noninterest income declined 8.8% sequentially to $40.4 million, primarily due to a $3.1 million unfavorable swing in net securities gains and losses. Wealth management fees of $19.8 million were affected by a $0.7 million decline in seasonal tax preparation fees, although they increased 15.5% from the prior year and assets under care reached $16.72 billion. Expenses remained controlled: GAAP noninterest expense declined 1.1% sequentially to $111.4 million, while adjusted noninterest expense increased 0.7% to $110.3 million. The efficiency ratio was 54.4%, compared to 54.0% in the prior quarter.
Credit is the central issue in the quarter. A commercial relationship totaling $37.6 million was placed on non-accrual, incurred a $10.0 million partial charge-off, and had a $17.8 million individual reserve allocated against its remaining $27.6 million balance. Non-performing assets increased to $83.6 million from $70.3 million sequentially, and the non-performing-assets-to-total-assets ratio increased to 0.45% from 0.39%. Net charge-offs were $11.4 million and the net charge-off ratio was 0.35%, compared with $6.4 million and 0.19% in the second quarter.
The balance sheet added liquidity and deposits while loan balances declined. Cash and cash equivalents were $883.1 million, total deposits were $15.54 billion, and available sources of on- and off-balance sheet liquidity totaled $9.36 billion. Capital returns remained substantial, with $59.6 million of third-quarter repurchases and $188.4 million year to date, alongside a $0.26 common dividend per share. Common equity Tier 1 capital to risk weighted assets was 12.47%, although the company noted that September 30, 2026 capital amounts and ratios are not yet finalized and are subject to change. The release provided no formal forward financial guidance.
Management, verbatim
Results were impacted by a single commercial relationship in the Central region that incurred a partial charge-off and moved to non-accrual this quarter.
Van A. Dukeman, Chairman, President and CEO of First Busey Corporation
Excluding this relationship, underlying trends for the quarter remained solid.
Van A. Dukeman, Chairman, President and CEO of First Busey Corporation
As we enter the final quarter of 2026, we remain well positioned with an indomitable balance sheet, ample liquidity, and significant capital flexibility.
Van A. Dukeman, Chairman, President and CEO of First Busey Corporation
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-release outlook was not provided.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Gross margin was not reported.
- Formal reportable segment revenue and profitability were not reported.
- A prior-year comparison for the loan-to-deposit ratio was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
First Busey Corp (NASDAQ: BUSE) filed a Form 8‑K announcing its third‑quarter 2026 results, highlighting earnings, provision expense, and balance‑sheet metrics.
Ticker impact
First Busey Corp reported Q3 2026 earnings with net income $55.8M, adjusted diluted EPS $0.63, and a provision expense increase to $9.6M due to a charge‑off.
likely downside as market prices in higher credit loss expense and reduced earnings
The increase in provision expense and a partial charge‑off signal deteriorating credit quality, outweighing modest deposit growth.
Market effects
regional banks may face scrutiny over credit quality as provision expenses rise
U.S. Midwest banking sector could see modest pressure
limited to U.S. banking sector
Counterpoint
Deposit growth and improved loan‑to‑deposit ratio could support the stock despite higher provisions
Key entities
- companyFirst Busey Corp
U.S. regional bank reporting Q3 2026 earnings
