First Busey Corporation Delivers Robust Q1 2026 Earnings, Dividend Hike, and Major Share Repurchase

Key Points from the Q1 2026 Financial Report

• Adjusted Diluted EPS: \$0.67, up 17.5% year-over-year.
• Net Income: \$50.0 million, or \$0.52 per diluted common share.
• Adjusted Net Income: \$58.6 million, or \$0.67 per diluted share.
• Net Interest Margin: 3.77%, with an adjusted NIM of 3.64%.
• Adjusted ROAA: 1.42% (up 33 basis points YoY); Adjusted ROATCE: 14.12% (up 287 basis points YoY).
• Efficiency Ratio: Improved to 54.8%, down 390 basis points YoY, reflecting disciplined expense management and CrossFirst acquisition synergies.
• Strong Capital Position: CET1 ratio at 12.31%; tangible book value per share rose 8.2% YoY to \$20.14.
• Dividend Increased: Quarterly dividend raised by 4.0% to \$0.26 per share.
• Significant Share Repurchase: 2.6 million shares repurchased for \$65.6 million in Q1, with 2.24 million shares still available under the plan.
• Wealth Management: Record fee income; assets under care at \$15.65 billion.
• Credit Quality: Non-performing assets down 14% QoQ; allowance for credit losses stable at 1.26% of loans.
• Liquidity: \$8.63 billion in available on- and off-balance sheet liquidity.

Detailed Financial and Strategic Update

Profitability and Core Performance

First Busey Corporation delivered a strong start to 2026, reporting an adjusted diluted earnings per share (EPS) of \$0.67, representing a 17.5% increase from the prior year. Adjusted return on average assets (ROAA) improved by 33 basis points to 1.42%, and adjusted return on average tangible common equity (ROATCE) jumped by 287 basis points to 14.12%. The net interest margin (NIM) continued its expansion, up 6 basis points quarter-over-quarter to 3.77%. These results signal solid core banking performance and effective margin management despite a volatile macroeconomic environment.

Expense Management & Acquisition Synergies

Expenses were well controlled, with the efficiency ratio improving significantly to 54.8% from 58.7% a year ago. This improvement is largely attributed to additional synergies realized from the CrossFirst Bankshares acquisition. Notably, salaries, wages, and employee benefits increased by 23.5% QoQ, mainly due to acquisition and restructuring charges, including costs related to the departure of a key executive, Michael J. Maddox. Other noninterest expenses declined by \$6.1 million (31.1%) QoQ, benefiting from lower operating losses, business development, and loan expenses.

Shareholder Returns: Dividend Increase & Aggressive Buybacks

First Busey increased its quarterly dividend by 4.0% to \$0.26 per share. Additionally, the company executed a major share repurchase, buying back 2,617,400 shares at a weighted average price of \$25.07 per share, totaling \$65.6 million (excluding excise taxes) during the first quarter. There are still 2,238,775 shares available for repurchase under the current plan. These actions underscore management’s confidence in the bank’s capital strength and its commitment to returning value to shareholders.

Loan and Deposit Trends

Loan and deposit balances were down seasonally, with total portfolio loans at \$13.46 billion and total deposits at \$14.74 billion. Core deposits comprised 93.7% of total deposits, a critical franchise value for the bank. The cost of total deposits decreased from 1.91% in Q4 2025 to 1.81% in Q1 2026, reflecting effective deposit pricing strategies. Liquidity remains robust, with \$8.63 billion in available funding sources and significant cash flow expected from the securities portfolio in the remainder of the year.

Credit Quality and Asset Strength

Credit quality remains strong. Non-performing assets declined by 14% QoQ, now at 0.28% of total assets. The allowance for credit losses is stable at 1.26% of loans, covering non-performing loans 3.63x. Net charge-offs rose slightly QoQ to \$7.36 million but are sharply down from the prior year. The loan portfolio is diversified, with commercial real estate representing 41.4% and owner-occupied properties accounting for 25.9% of CRE loans.

Wealth Management & Noninterest Income

Busey’s wealth management division delivered another record quarter, with fee income reaching \$19.37 million and assets under care at \$15.65 billion. Noninterest income overall increased by 99.1% YoY, benefiting from the full consolidation of CrossFirst and higher wealth management, technology solutions, and card services income.

Capital Position

The bank’s capital ratios remain strong, with an estimated Common Equity Tier 1 (CET1) ratio at 12.31% and total capital to risk-weighted assets at 15.87%, providing a buffer of over \$800 million above regulatory minimums. Tangible book value per share grew 8.2% YoY to \$20.14, reflecting both earnings growth and active capital management.

Important Shareholder Information & Potential Price-Sensitive Developments

• Dividend Increase and Share Buybacks: The 4% dividend increase and \$65.6 million share repurchase are clear signals of management’s confidence and may support share price appreciation.
• Expense and Synergy Realization: Ongoing cost control and further CrossFirst acquisition synergies could enhance future profitability.
• Strong Asset Quality: Continued decline in non-performing assets and robust loan loss reserves mitigate credit risk concerns.
• Wealth Management Growth: The record performance and stability in assets under care indicate growing fee-based revenue streams, a key differentiator in the current rate environment.
• Capital and Liquidity Strength: With ample capital and liquidity, Busey is well positioned for additional share buybacks, dividend hikes, and potentially accretive M&A activity.
• Leadership Changes: The departure of Michael J. Maddox, while non-core, resulted in elevated restructuring charges this quarter and may be monitored for any further organizational impacts.

Outlook and Forward-Looking Statements

Management sees significant momentum heading into the rest of 2026, fueled by new talent, building business pipelines, and robust capital and liquidity. Potential risks include macroeconomic volatility, integration of acquisitions, competitive pressures, and regulatory changes. Investors should monitor future updates on synergy realization, asset quality, and further capital return announcements.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own research or consult with a qualified financial advisor before making any investment decisions. The data presented is based on the company’s Q1 2026 financial report and may be subject to change. Forward-looking statements are subject to risks and uncertainties as detailed in the company’s filings.

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