First Busey: The Preferred Shares With A 7.5% Yield To Call Are A 'Buy'

First Busey demonstrates robust financial health, with a conservative balance sheet and CET1 ratio of 12.5%, well above regulatory minimums. Net income attributable to common shareholders rose 30% year-over-year, driven by stable net interest income, lower expenses, and reduced loan loss provisions. Non-accrual loans represent just 0.5% of the loan book, with provisions exceeding $160M, reflecting prudent underwriting and strong credit quality. BUSE's 8.25% preferred stock offers a yield to call of 7–7.5%, presenting an attractive risk/reward profile despite trading above par.

First Busey (BUSE) is a Kansas-headquartered regional bank focusing on serving its clients through 80 banking centers across five geographical regions. The bank has always maintained a conservative operating approach, and at the end of June, its loan-to-deposit ratio was just 23.95%.