3 Reasons BUSE is Risky and 1 Stock to Buy Instead

October 15, 2025 at 00:00 AM EDT

BUSE Cover Image

First Busey has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 19.2% to $23.75 per share while the index has gained 23.2%.

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Why Is First Busey Not Exciting?

We're swiping left on First Busey for now. Here are three reasons we avoid BUSE and a stock we'd rather own.

1. Low Net Interest Margin Reveals Weak Loan Book Profitability

Net interest margin (NIM) represents the unit economics of a bank by measuring the profitability of its interest-bearing assets relative to its interest-bearing liabilities. It's a fundamental metric that investors use to assess lending premiums and returns.

Over the past two years, we can see that First Busey’s net interest margin averaged a weak 3%, meaning it must compensate for lower profitability through increased loan originations.

First Busey Trailing 12-Month Net Interest Margin

3. TBVPS Projections Show Stormy Skies Ahead

A bank’s tangible book value per share (TBVPS) increases when it generates higher net interest margins and keeps credit losses low, allowing it to compound shareholder value over time.

Over the next 12 months, Consensus estimates call for First Busey’s TBVPS to shrink by 2.1% to $21.13, a sour projection.

First Busey Quarterly Tangible Book Value per Share

Final Judgment

First Busey isn’t a terrible business, but it doesn’t pass our quality test. That said, the stock currently trades at 0.9× forward P/B (or $23.75 per share). This valuation is reasonable, but the company’s shakier fundamentals present too much downside risk. We're fairly confident there are better investments elsewhere. We’d recommend looking at one of our top software and edge computing picks.

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