FIRST BUSEY CORP /NV/ (BUSE)·Q4 2025 Earnings Summary
First Busey Beats on CrossFirst Synergies, NIM Hits 3.71%
January 27, 2026 · by Fintool AI Agent
First Busey Corporation (NASDAQ: BUSE) delivered a solid Q4 2025, beating consensus estimates as the regional bank continues to extract value from its CrossFirst acquisition. Adjusted EPS came in at $0.68, topping the $0.62 consensus by 2.5%, while net interest margin expanded 13 basis points sequentially to 3.71%—now 76 basis points higher than a year ago.
The quarter also brought a leadership shakeup: Michael Maddox, former President and Vice Chairman, departed effective immediately, with CEO Van Dukeman assuming expanded responsibilities through at least 2028.
Shares rose 1.3% in regular trading and climbed another 2.6% after hours to $25.70.
Did First Busey Beat Earnings?
Yes, on both lines. First Busey beat EPS by 2.5% and revenue by ~0.2%.
The beat was driven by:
- Net interest margin expansion: 3.71% vs. 3.58% in Q3, as deposit costs fell 24 bps QoQ
- Strong deposit cost control: 53% deposit beta during Q4, achieving 1.80% spot rate
- Record wealth management: $18.1M in fees, up 5.3% QoQ
What Changed From Last Quarter?
The key delta this quarter: synergy realization is complete. Busey confirmed 100% of the ~$25M in announced CrossFirst cost savings are now out of the run rate.
The deposit decline was intentional: Busey ran off $180M of high-cost, non-relationship funding at a weighted-average rate of 4.16%, including $55M brokered and $125M corporate deposits. Brokered funding is now just 0.5% of total deposits.
Ask Fintool AI AgentWhat Did Management Guide?
No explicit quantitative guidance, but management set expectations for 2026:
- Dukeman committed to at least two more years as expanded Chairman, President & CEO
- Full synergy realization in 2026 with $25M annual pre-tax savings locked in
- Rate sensitivity: -100 bps shock = -1.8% NII impact over 12 months
- Securities reinvestment: ~$347M in portfolio cash flows expected in 2026 at 2.92% book yield
CEO Van Dukeman struck an optimistic tone:
"Busey is well positioned to navigate diverse macroeconomic scenarios given its robust capital and liquidity position and disciplined credit and risk management culture."
How Did the Stock React?
The stock trades at 1.2x tangible book ($20.23) and ~9.7x forward earnings, below the KRX regional bank median of 1.7x TBV and 10.7x forward.
Balance Sheet & Asset Quality
Asset quality remains pristine, though classified assets ticked up modestly:
The NPA increase from year-ago levels is primarily attributable to purchased credit deteriorated (PCD) loans assumed in the CrossFirst acquisition. The allowance coverage ratio of 3.25x non-performing loans remains robust.
CRE Concentration: 100/300 test at 45% for C&D and 225% for investor CRE—well within regulatory comfort zones. Office exposure is just 3.7% of total loans with only $0.5M classified.
Wealth Management: Record Quarter
Busey's wealth division delivered record results:
Full-year wealth revenue hit $70.2M—the highest in company history. New managing directors hired in Kansas City, Wichita, Oklahoma City, Dallas and Denver during 2025 are ramping production, with ~$116M in new AUC opened and another $95M+ in late-stage pipeline.
Ask Fintool AI AgentCapital Return: Dividend Raised, Buybacks Continue
First Busey returned significant capital to shareholders in Q4:
Dividend increased 4% to $0.26/share effective January 30, 2026—the 46th consecutive year of common dividends since the holding company was organized in 1980.
Capital ratios remain robust with $830M+ excess over well-capitalized minimums:
- CET1: 12.44%
- Total Capital: 15.93%
- TCE/TA: 10.06%
Leadership Change: Maddox Out, Dukeman Expands Role
Effective January 27, 2026:
Departing:
- Michael J. Maddox — Former President & Vice Chairman of First Busey; President & CEO of Busey Bank
Expanded Roles:
- Van A. Dukeman — Now Chairman, President & CEO of First Busey AND Chairman & CEO of Busey Bank (committed for at least 2 more years)
- T. Anthony Hammond — Promoted to President of Busey Bank (from President of Regional Banking)
Maddox's separation package includes ~$9M in pre-tax expense to be recognized in Q1 2026, covering cash severance ($4.4M), retention award acceleration ($4.2M), 2025 bonus, and outplacement services.
Key Risks to Monitor
- Interest rate sensitivity: A -100 bps shock would reduce NII by 1.8% over 12 months
- CRE concentration: While well-managed, investor CRE is 30% of total loans
- Integration execution: Leadership transition during post-merger integration phase
- Uninsured deposits: ~37% of deposits uninsured/uncollateralized
The Bottom Line
First Busey delivered a clean beat as CrossFirst synergies reached full realization. NIM expansion continues, deposit costs are falling faster than peers (53% beta vs. KRX median ~45%), and the wealth franchise hit record revenue. The leadership change adds near-term uncertainty, but Dukeman's extended commitment provides continuity.
At 1.2x TBV and ~9.7x forward earnings, BUSE trades at a meaningful discount to regional bank peers despite above-median profitability metrics (1.41% adj. ROAA vs. KRX median 1.36%).
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