First Busey Q3 profit falls on higher loan charge-off

Overview

• US regional bank reported Q3 net income of $55.8 mln, adjusted EPS at $0.63

• Quarterly results impacted by a commercial loan charge-off, raising provision expense

• Company repurchased $59.6 mln in stock during Q3

Outlook

• Company sees macroeconomic uncertainty persisting into the final quarter of 2026

• Company expects a 1.5% net interest income increase if rates rise 100 bps over 12 months

Result Drivers

• COMMERCIAL LOAN CHARGE-OFF - Co said Q3 results were affected by a partial charge-off and non-accrual on a single commercial relationship, raising provision expense

• NET INTEREST INCOME - Co said stable operating revenue was supported by growth in net interest income

• DEPOSIT GROWTH - Co said deposit balances increased at an annualized rate of 11% for the second consecutive quarter

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "hold"

• Wall Street's median 12-month price target for First Busey Corporation is $31.00, about 2% above its October 26 closing price of $30.38

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 27 - FFB Bancorp Q3 profit falls on higher provision for credit losses

• Oct 27 - NBT Bancorp Q3 profit rises on loan growth, higher net interest income

• Oct 27 - First Community Bankshares Q3 net income rises 26%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)