First Busey Corporation — Q3 2026 Earnings Summary

Financial Performance:

• Net income for the quarter was $55.8 million ($0.61 diluted EPS), compared to $63.2 million ($0.69 diluted EPS) in Q2 2026 and $57.1 million ($0.58 diluted EPS) in Q3 2025.
• Adjusted net income was $57.2 million ($0.63 adjusted diluted EPS), compared to $63.7 million ($0.69 adjusted diluted EPS) in Q2 2026 and $62.5 million ($0.64 adjusted diluted EPS) in Q3 2025.
• Operating revenue was stable at $194.3 million.
• Net interest income increased $0.7 million to $153.1 million compared to Q2 2026.
• Net interest margin was 3.58% (3.46% adjusted), compared to 3.72% in Q2 2026.
• Provision for credit losses increased to $9.6 million from $2.2 million in Q2 2026, primarily due to a single commercial relationship.
• Total noninterest income decreased 8.8% to $40.4 million compared to Q2 2026, driven by a $3.1 million unfavorable swing in net securities gains/losses.
• Wealth management fees increased 15.5% year-over-year.
• Total noninterest expense decreased 1.1% to $111.4 million compared to Q2 2026.
• Efficiency ratio was 54.4%, compared to 54.0% in Q2 2026 and 54.8% in Q3 2025.
• Annualized return on average assets (ROAA) was 1.20% (1.23% adjusted), compared to 1.42% in Q2 2026.
• Annualized return on average tangible common equity (ROATCE) was 12.93% (13.25% adjusted), compared to 14.49% in Q2 2026.
• Net charge-offs were $11.4 million, compared to $6.4 million in Q2 2026 and $5.8 million in Q3 2025.
• Allowance for credit losses was $164.3 million, representing 1.28% of portfolio loans.

Guidance and Future Outlook:

• Management stated the company remains well-positioned with an "indomitable balance sheet, ample liquidity, and significant capital flexibility."
• A +100 basis point parallel rate shock is expected to increase net interest income by 1.5% over the subsequent twelve-month period.
• Management expressed confidence in navigating a range of operating environments despite macroeconomic uncertainty.
• The company continues to evaluate off-balance sheet hedging and balance sheet strategies to provide consistent net interest income performance.

Business Segments and Product Lines:

• Wealth Management: Assets under care totaled $16.72 billion as of September 30, 2026, up from $14.96 billion in Q3 2025. The division outperformed its blended benchmark over the last three, five, and seven years.
• Payment Technology Solutions: Specializes in financial technology needs for small and medium-sized businesses, including bill payments, merchant services, and treasury services.
• Loan Portfolio: Loan balances declined during the quarter, including the repositioning of approximately $65 million of lender finance loans to held for sale.
• Commercial Real Estate (CRE): CRE loans comprised 41.0% of the total loan portfolio; 26.6% of CRE properties were owner-occupied.

Market and Competitive Landscape:

• Deposit growth remained a highlight, increasing at an annualized rate of 11% for the second consecutive quarter.
• Total deposits increased $408.8 million (2.7%) to $15.54 billion, driven by seasonal public funds inflows and strategic growth in core customer deposits.
• Core deposits accounted for 94.0% of total deposits.
• Brokered funding was reduced by $50.0 million during the quarter to $10.0 million (0.1% of total deposits).
• The loan-to-deposit ratio improved to 82.5% from 87.2% in the prior quarter.
• Busey faces competition from non-bank competitors including credit unions, digital asset service providers, private credit, and fintech companies.

Risks and Challenges:

• A single commercial relationship in the Central region moved to non-accrual status, resulting in a $10.0 million partial charge-off and a $17.8 million individual reserve.
• Classified assets increased by $18.8 million compared to Q2 2026 and $83.8 million compared to Q3 2025.
• Non-performing assets increased to $83.6 million (0.45% of total assets) from $70.3 million in Q2 2026, driven by the aforementioned commercial relationship.
• Deposit funding costs increased 13 basis points to 1.93% due to deposit gathering initiatives and Federal Open Market Committee rate hikes.
• Net charge-offs increased $5.0 million quarter-over-quarter and $5.5 million year-over-year, primarily due to the commercial relationship charge-off.

Management Commentary and Tone:

• Chairman, President, and CEO Van A. Dukeman stated that "excluding this relationship, underlying trends for the quarter remained solid."
• Management emphasized maintaining "strong expense discipline" and a "conservative approach to underwriting and disciplined approach to pricing."
• The tone was confident regarding the company's ability to create long-term value for shareholders and support clients despite macroeconomic uncertainty.

Other Key Points:

• Share Repurchases: Busey purchased 1,972,900 shares for $59.6 million in Q3 2026. Year-to-date repurchases totaled $188.4 million. 1,925,875 shares remained available under the plan as of September 30, 2026.
• Dividends: Paid $0.26 per share on common stock in Q3 2026.
• Capital Strength: Common Equity Tier 1 capital to risk-weighted assets rose to 12.5% (12.47% per table) from 12.3% a year ago.
• Liquidity: Available on- and off-balance sheet liquidity totaled $9.36 billion as of September 30, 2026.
• Acquisition Integration: A pool of lender finance commercial loans acquired in the CrossFirst Bankshares, Inc. acquisition was reclassified to held for sale, resulting in a $0.7 million LOCOM adjustment and a $0.7 million release of allowance for credit losses.
• Awards: Recognized among the World's Top Performing Banks by Forbes and American Banker's Top-Performing Banks in 2026. Named a Best Bank to Work For by American Banker since 2016.