Rising Net Charge-Offs Amid Strong Earnings Might Change The Case For Investing In First Busey (BUSE)

• First Busey Corporation recently announced third-quarter 2025 earnings, showing net interest income of US$155.14 million and net income of US$57.1 million, along with completing a share repurchase tranche and declaring a quarterly dividend on Series B Preferred Stock.
• An interesting aspect of the update is the large year-over-year increase in net charge-offs to US$5.85 million, highlighting shifting asset quality trends amid overall stronger quarterly income.
• We'll explore how First Busey's rise in net charge-offs alongside solid earnings figures shapes its current investment narrative.

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What Is First Busey's Investment Narrative?

If you’re considering First Busey, the big picture rests on faith in its ability to deliver stable income and maintain balance sheet strength despite an uptick in risk. The company’s recent quarter delivered robust net interest income and strong net income, while ongoing share buybacks and reliable dividends continue to support shareholder value. That said, the sharp rise in net charge-offs, from $247,000 a year ago to nearly $5.85 million, casts a fresh spotlight on asset quality and credit risk, especially as underlying profit margins have compressed and past net profit trends remain underwhelming. Prior to this news, consensus analysis pointed to subdued returns and low return on equity as key risks, yet a valuation discount and a healthy dividend presented near-term catalysts. With the latest earnings and charge-off figures, credit quality now becomes a more pressing issue to watch, potentially shifting short-term risk narratives for shareholders.

But with charge-offs spiking, asset quality concerns are now front of mind for investors. First Busey's shares have been on the rise but are still potentially undervalued by 49%. Find out what it's worth.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community span US$18.35 to a very large US$15,294.48, showing how much opinion can vary. Against this backdrop of widely different views, the recent surge in net charge-offs raises key questions about the company’s near-term risk profile and longer-term value. Explore what other investors are seeing in the numbers.

Explore 5 other fair value estimates on First Busey - why the stock might be a potential multi-bagger!

Build Your Own First Busey Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your First Busey research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free First Busey research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate First Busey's overall financial health at a glance.

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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.

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