First Busey (BUSE) Net Interest Margin Steady At 3.5% Challenges Margin Compression Concerns

First Busey (BUSE) has put a fuller year of numbers on the table for FY 2025, with fourth quarter revenue of US$197.8 million and EPS of US$0.63, rounding out trailing twelve month revenue of US$666.8 million and EPS of US$1.49. The company has seen revenue move from US$453.7 million and EPS of US$2.01 on a trailing basis in late 2024 to US$666.8 million and EPS of US$1.49 by the end of 2025. This is setting up a results season where investors are weighing those headline figures against a mixed profit trend and the earnings growth outlook. With net income at US$56.2 million in the latest quarter and margins now a key focus, the conversation is shifting to how sustainable the current profitability profile really is.

See our full analysis for First Busey.

With the raw numbers on the page, the next step is to see how this latest earnings run rate lines up with the widely followed growth, risk, and profitability narratives around First Busey, and where those stories may need updating.

Curious how numbers become stories that shape markets? Explore Community Narratives

Margins Steady Around 3.5% Net Interest Level

• Across FY 2025, net interest margin sat around the mid 3% range, with 3.49% in Q2, 3.58% in Q3, and 3.51% on a trailing twelve month basis, while the cost to income ratio eased from 61.27% on the prior year trailing basis to 55.76% now.
• What stands out for the bullish view is the combination of these banking efficiency metrics with the 28.42% forecast annual earnings growth, because:
  • Current net profit margin on the trailing twelve months is 18.8% compared with 25.1% last year, so the higher earnings growth forecast sits alongside a reported margin that is lower than the prior year.
  • Revenue is projected to grow 11.2% per year, slightly ahead of the 10.6% US market forecast, which supports optimistic expectations even as historical five year earnings declined 4.4% per year on average.

To see how these efficiency trends tie into long term profit expectations and valuation, have a look at the full narrative for this result set and how it balances growth forecasts against margin pressure. 📊 Read the full First Busey Consensus Narrative.

Loan Book And Credit Quality In Focus

• Total loans on the trailing twelve month basis are reported at US$13.6b, with non performing loans at US$53.5 million compared with US$23.2 million on the prior year trailing snapshot, so investors have a larger loan book paired with a higher level of problem loans in absolute terms.
• Critics who lean bearish tend to point to credit quality and risk in regional banks, and the data here gives them specific talking points:
  • Non performing loans have been reported at US$8.2 million in Q3 2024, US$23.2 million in Q4 2024, and in the US$47 million to US$55 million range in the 2025 quarters, which is a clear step up in the dollars tied to troubled loans even as total loans rose to the US$13.6b area.
  • At the same time, trailing twelve month net income of US$125.4 million and revenue of US$666.8 million show the bank generating solid dollar profits, which some readers may weigh against the higher non performing loan figures when thinking about overall resilience.

Strong Growth Forecasts Versus Rich P/E And Dilution

• On valuation and growth, the shares trade at a P/E of about 17x compared with peer and US banks industry averages around 12.1x and 11.8x, while the current share price of US$24.39 sits well below a DCF fair value of roughly US$52.13 and earnings are forecast to grow 28.42% per year with revenue expected to grow 11.2% per year.
• What is interesting for both bullish and bearish readers is how these figures pull in different directions:
  • Supporters of the bullish angle can point to the reported discount of about 53.2% to DCF fair value, the 4.26% dividend yield, and one year earnings growth of 10.3% versus a five year earnings decline of 4.4% per year as signs that current numbers look better than the long term average.
  • Bears, on the other hand, can highlight the richer 17x P/E relative to peers alongside the lower trailing net margin of 18.8% compared with 25.1% last year and the substantial shareholder dilution over the past year, which together suggest that part of the high growth outlook is already reflected in the multiple.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on First Busey's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

First Busey pairs a richer 17x P/E and lower 18.8% net margin with higher non performing loans and recent shareholder dilution, which raises questions about quality and resilience.

If you want exposure to companies with stronger profitability and less balance sheet stress, check out our screener containing screener containing 1038 highly profitable stocks with low debt to quickly focus on businesses built on healthier returns and lower debt.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com