Key Highlights

  • First Busey reported third quarter net income of USD 55.8 million, or USD 0.61 per diluted share, below consensus estimates.
  • Operating revenue was stable at USD 194.3 million, with wealth management revenue up 15.5% from a year earlier.
  • The efficiency ratio was 54.4% for the quarter, reflecting continued expense discipline across the bank's operations.
  • Deposits grew at an annualized rate of 11% for a second consecutive quarter, while the loan to deposit ratio improved to 82.5%.

Net Income Declines Sequentially as a Key Relationship Shifts

First Busey Corporation (NASDAQ:BUSE) reported third quarter net income of USD 55.8 million, or USD 0.61 per diluted share, compared with USD 63.2 million, or USD 0.69 per diluted share, in the second quarter of 2026, and USD 57.1 million, or USD 0.58 per diluted share, in the third quarter of 2025. Adjusted net income, which excludes non-GAAP items, was USD 57.2 million, or USD 0.63 per diluted share.

Operating revenue was stable at USD 194.3 million for the quarter, supported by growth in net interest income. Wealth management revenue increased 15.5% from the prior year, partially offsetting the effect of one large relationship that the company said affected underlying quarterly trends.

Deposit Growth and Loan Portfolio Management

Deposits grew at an annualized rate of 11% for a second consecutive quarter, as the bank continued to add client relationships across its markets. The loan to deposit ratio improved to 82.5% from 87.2% in the prior quarter, reflecting both deposit growth and a planned decline in loan balances.

The decline in loan balances included the repositioning of approximately USD 65 million of lender finance loans to held for sale status, part of the bank's ongoing portfolio management efforts. The efficiency ratio was 54.4% for the quarter, reflecting continued expense discipline even as net income declined from the prior quarter.

Profitability Trends and Portfolio Risk Factors

The sequential decline in net income, from USD 63.2 million in the second quarter to USD 55.8 million in the third quarter, reflects a combination of the large relationship impact noted by management and the planned reclassification of lender finance loans. Year over year, net income remained modestly higher than the third quarter of 2025.

Continued deposit growth at the pace seen in the past two quarters could support further margin stability, while the held for sale reclassification of lender finance loans could affect loan balance trends in the fourth quarter depending on the timing of any sale completion.

Deposit and Loan Metrics Ahead

The pace of deposit growth relative to the 11% annualized rate reported in each of the past two quarters, the resolution of the USD 65 million lender finance loan reclassification, and wealth management revenue growth relative to the 15.5% increase this quarter are among the items the company has highlighted for investors. The efficiency ratio, at 54.4% this quarter, remains a reference point for assessing expense trends going forward.