First Busey Corporation Depositary Shares Each Representing a 1/40thInterest in a Share of 8.25% Fixed-Rate Series B Non-Cumulative Perpetual Preferred Stock $0.001 par value (BUSEP)

FairStock Score: 75/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at First Busey as a sound but unremarkable regional bank, and these preferred shares are a credit claim on it, not a common-stock bargain. In fiscal Q2 2026, the quarter ended 2026-06-30, the bank earned $63.2M on $196.7M of revenue, or $0.69 per diluted share, up from $47.4M and $0.52 in the quarter ended 2025-06-30. For FY2025, revenue was $719.6M, net income $135.3M, and diluted EPS $1.47; that compares with FY2024 revenue of $462.3M, net income $113.7M, and EPS $1.98, and FY2023 EPS of $2.18. Revenue has grown, but per-share earnings have fallen, so I would want to understand dilution and acquisition costs. The FairStock-calculated ROE is 9.63%, acceptable but not high, and the common trades at a FairStock P/B of 0.88 based on the 2026-10-13 close. Regional banking is competitive; wealth management and FirsTech add some fee income but do not create a wide moat. For the preferred, the key facts are the 8.25% fixed rate, non-cumulative and perpetual structure, and a current yield of 8.18% at $25.20. It is priced near par, so the valuation is fair rather than distressed. The yield compensates for real risks: missing bank-specific data like CET1, net interest margin, and credit costs, plus the fact that skipped preferred dividends do not accrue. I would treat this as an income security whose safety depends on continued bank profitability and capital strength.

In plain English: First Busey is a regional bank that takes deposits, makes loans, and offers wealth management. It is profitable, and its most recent quarter showed more earnings than a year earlier. The preferred shares pay a fixed 8.25% and cost about $25.20, so the yearly cash payout is close to 8.18%; the price looks near face value. The main risk is that these are bank preferred shares, and the dividend is not guaranteed if the bank runs into trouble.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer