Petr Huřťák
3 min read
What happened?
Shares of regional banking company First Busey (NASDAQ:BUSE) fell 2.8% in the afternoon session after the company reported third-quarter 2026 adjusted diluted earnings per share and revenue below analyst estimates after one commercial credit was charged off and placed on non-accrual. According to a company press release, First Busey reported third-quarter 2026 net income of $55.8 million, or 61 cents per diluted share, and adjusted diluted earnings per share of 63 cents. Adjusted diluted earnings per share was 4 cents below the consensus estimate of 67 cents, and revenue of $193.54 million was below the consensus estimate of $195.77 million.
A single commercial relationship in the Central region, totaling $37.6 million, was moved to non-accrual. It incurred a partial charge-off of $10.0 million and was assigned an individual reserve of $17.8 million against the remaining $27.6 million balance. Provision expense rose to $9.6 million from $2.2 million in the previous quarter. Operating revenue was stable at $194.3 million, wealth management revenue rose 15.5% from a year earlier, and the efficiency ratio was 54.4%. Deposits grew at an 11% annualized rate for a second straight quarter, and the loan-to-deposit ratio improved to 82.5% from 87.2%.
After the initial drop, the shares shed some of the losses and rose to $29.35, down 2.8% from the previous close.
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What is the market telling us
First Busey’s shares are not very volatile and have had no moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 11 months ago when the stock gained 4.5% on the news that comments from a key Federal Reserve official boosted hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.
