First Busey (NASDAQ:BUSE) misses Q3 2026 sales expectations

Regional banking company First Busey (NASDAQ:BUSE) fell short of the market’s revenue expectations in Q3 2026, with revenue falling 1.6% year on year to $193.5 million. Its non-GAAP profit of $0.63 per share was 6.2% below analysts’ consensus estimates.

For more on First Busey, read our free full research report.

Revenue growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions. First Busey’s 14.6% annualized revenue growth over the last five years was impressive. Its growth beat the average banking company and shows its offerings resonate with customers.

Long-term growth matters the most, but within financials, a half-decade historical view may miss recent interest rate changes, market returns and industry trends. First Busey’s annualized revenue growth of 31.9% over the last two years is above its five-year trend, suggesting demand was strong and recently accelerated. Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, First Busey missed Wall Street’s consensus estimates and reported an uninspiring 1.6% year-on-year revenue decline, generating $193.5 million of revenue.

Net interest income made up 73.4% of the company’s total revenue during the last five years, meaning lending operations are First Busey’s largest source of revenue.

Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.

Tangible book value per share (TBVPS)

The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.

This is why tangible book value per share (TBVPS) is the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

First Busey’s TBVPS grew at a sluggish 2.5% annual rate over the last five years. The last two years show a similar trajectory as TBVPS grew by 3.2% annually from $18.19 to $19.37 per share.

Over the next 12 months, consensus estimates call for First Busey’s TBVPS to grow by 14.5% to $22.18, a decent growth rate.

Key takeaways from First Busey’s Q3 results

First Busey’s Q3 offered few positives: tangible book value per share missed expectations, and EPS fell short of Wall Street’s consensus estimates. It was a disappointing quarter overall. Shares remained flat at $30.18 immediately after the results.

Is First Busey a buy at its current price? The latest quarter is only one part of assessing longer-term business quality. Quality, when combined with valuation, can help determine if the stock is a buy. For more on First Busey, read the full research report here (it’s free).