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First Busey Corporation reported a notable increase in its third-quarter net income to USD 57.1 million, compared with USD 47.4 million in the previous quarter. The company repurchased around 580,000 shares worth USD 13.5 million, reflecting financial strength and confidence. Management stated that the ongoing balance sheet optimisation would likely be completed by year-end, despite facing continued pressure from commercial real estate payoffs through 2025.
First Busey Corporation recorded a rise in its third-quarter net income to USD 57.1 million, up from USD 47.4 million in the previous quarter. The company repurchased approximately 580,000 shares valued at USD 13.5 million, reflecting strong confidence in its financial stability and long-term growth strategy. Advertisement
The management indicated that balance sheet optimisation was progressing well and was expected to be largely completed by the end of this year. It also anticipated that the firm would continue to experience headwinds from commercial real estate payoffs during 2025 but remained committed to managing operating costs efficiently as business volumes expand.
Key performance drivers included a reduction in high-cost deposits by USD 794.6 million, which improved the net interest margin by 9 basis points. The company also reported an improvement in credit quality, with classified assets as a percentage of capital declining to 7%, and net charge-offs recorded at 0.17%. However, higher-than-anticipated loan payoffs led to a slight decline in overall loan balances.
For the third quarter, earnings per share stood at USD 0.58. Analysts maintained an overall "buy" rating on the stock, with four analysts recommending "strong buy" or "buy," three suggesting "hold," and none issuing "sell" ratings. Wall Street's median 12-month price target for First Busey shares stood at USD 27, representing an estimated 14% upside from its recent closing price of USD 23.20. The company's shares were trading at nine times projected 12-month earnings, consistent with its valuation three months earlier.
First Busey's third-quarter results reflected solid financial progress driven by balance sheet optimisation, expense discipline, and improving credit quality. Despite expected challenges from commercial real estate payoffs in 2025, the bank remains focused on prudent management and steady growth. With a consistent analyst "buy" consensus and a favourable price target outlook, the company's strategic direction appears well-positioned to sustain momentum in the coming quarters.
Source - Reuters
5th Jun, 2025
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