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Item 8. Financial Statements and Supplementary Data

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 
 Contents of Item 8. Financial Statements & Supplementary Data 
 
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PCAOB ID 49 ) 
 89 
 
 
 CONSOLIDATED FINANCIAL STATEMENTS 
 91 
 
 Consolidated Balance Sheets 
 91 
 
 Consolidated Statements of Income 
 92 
 
 Consolidated Statements of Comprehensive Income (Loss) 
 93 
 
 Consolidated Statements of Stockholders’ Equity 
 94 
 
 Consolidated Statements of Cash Flows 
 95 
 
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
 97 
 
 Note 1. Significant Accounting Policies 
 97 
 
 Note 2. Mergers and Acquisitions 
 113 
 
 Note 3. Debt Securities 
 118 
 
 Note 4. Portfolio Loans 
 124 
 
 Note 5. Other Real Estate Owned and Other Repossessed Assets 
 135 
 
 Note 6. Premises and Equipment 
 136 
 
 Note 7. Leases 
 136 
 
 Note 8. Goodwill and Other Intangible Assets 
 138 
 
 Note 9. Deposits 
 140 
 
 Note 10. Borrowings 
 141 
 
 Note 11. Junior Subordinated Debt Owed to Unconsolidated Trusts 
 143 
 
 Note 12. Regulatory Capital 
 143 
 
 Note 13. Income Taxes 
 146 
 
 Note 14. Tax Credit and Other Investments in Unconsolidated Entities 
 148 
 
 Note 15. Employee Benefit Plans 
 148 
 
 Note 16. Stock-based Compensation 
 149 
 
 Note 17. Transactions with Related Parties 
 154 
 
 Note 18. Outstanding Commitments and Contingent Liabilities 
 154 
 
 Note 19. Derivative Financial Instruments 
 155 
 
 Note 20. Fair Value Measurements 
 161 
 
 Note 21. Earnings Per Common Share 
 167 
 
 Note 22. Accumulated Other Comprehensive Income (Loss) 
 168 
 
 Note 23. Operating Segments and Related Information 
 169 
 
 Note 24. Parent Company Only Financial Information 
 174 
 

 First Busey Corporation (BUSE) | 2024 — 88 

 
 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 

 Report of Independent Registered Public Accounting Firm 
 
 
 
 
 To the Stockholders and the Board of Directors of First Busey Corporation and Subsidiaries 
 
 
 
 
 Opinion on the Financial Statements 
 We have audited the accompanying consolidated balance sheets of First Busey Corporation and its subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income, comprehensive income (loss), stockholders' equity and cash flows for each of the three years in the period ended December 31, 2024, and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America. 
 
 
 We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013, and our report dated February 27, 2025, expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting. 
 
 
 Basis for Opinion 
 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 
 
 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. 
 
 
 Critical Audit Matters 
 The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 
 First Busey Corporation (BUSE) | 2024 — 89 

 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 

 Allowance for Credit Losses on Loans—Adjustments to Historical Loss Factors 
 As described in Notes 1 and 4 to the financial statements, the Company’s allowance for credit losses totaled $83.4 million, which consists of a reserve on loans collectively evaluated for impairment (a/k/a general reserve) of $81.6 million and a reserve on loans individually evaluated (a/k/a specific reserve) of $1.8 million at December 31, 2024. The allowance for credit losses is measured on a collective loan pool basis when similar risk characteristics exist. On a case‑by‑case basis, a loan may be evaluated on an individual basis based on disparate risk characteristics. The measurement of expected credit losses on collectively evaluated loans is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the amortized cost basis. Adjustments to historical loss information are made for differences in current loan‑specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions such as changes in unemployment rates, property values and other relevant factors. The calculation also contemplates that the Company may not be able to make or obtain such forecasts for the entire life of the financial assets and requires a reversion to historical credit loss information. 
 
 
 We identified the adjustments to historical loss factors component of the allowance for credit losses as a critical audit matter, as auditing the underlying adjustments required significant auditor judgment as amounts determined by management rely on analysis that is highly subjective and includes significant estimation uncertainty. 
 
 
 Our audit procedures related to the adjustments to historical factors within the allowance for credit losses include the following, among others: 
 • We obtained an understanding of the relevant controls related to the adjustments to historical factors in the calculation of the allowance for credit losses and tested such controls for design and operating effectiveness. 
 • We tested the completeness and accuracy of data used by management in determining adjustments to historical loss factors including testing the supporting data for agreement to internal or external source data. 
 • We tested management’s conclusions regarding the appropriateness of the adjustments, including magnitude and directional consistency, to historical loss factors included in the allowance for credit losses calculation. 
 
 
 
 
 /s/ RSM US LLP 
 
 
 We or our predecessor firms have served as the Company’s auditor since at least 1980; however, an earlier year could not be established. 
 
 
 Champaign, Illinois 
 February 27, 2025 
 First Busey Corporation (BUSE) | 2024 — 90 

 
 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 

 CONSOLIDATED FINANCIAL STATEMENTS 
 
 CONSOLIDATED BALANCE SHEETS 
 (dollars in thousands) 
 As of December 31, 
 2024 2023 
 Assets 
 Cash and cash equivalents: 
 Cash and due from banks $ 129,444 $ 134,680 
 Interest-bearing deposits 568,215 584,901 
 Total cash and cash equivalents 697,659 719,581 
 
 Debt securities available for sale 1,810,221 2,087,571 
 Debt securities held to maturity 826,630 872,628 
 Equity securities 15,862 9,812 
 Loans held for sale 3,657 2,379 
 Portfolio loans (net of ACL of $ 83,404 at December 31, 2024; $ 91,740 at December 31, 2023) 
 7,613,683 7,559,294 
 Restricted bank stock 49,930 6,000 
 Premises and equipment, net 118,820 122,594 
 Right of use assets 10,608 11,027 
 Goodwill 333,695 317,873 
 Other intangible assets, net 32,280 35,991 
 Cash surrender value of bank owned life insurance 185,087 182,975 
 Other assets 348,590 355,690 
 Total assets $ 12,046,722 $ 12,283,415 
 
 Liabilities and stockholders’ equity 
 Liabilities 
 Deposits: 
 Noninterest-bearing $ 2,719,907 $ 2,834,655 
 Interest-bearing 7,262,583 7,456,501 
 Total deposits 9,982,490 10,291,156 
 
 Securities sold under agreements to repurchase 155,610 187,396 
 Short-term borrowings — 12,000 
 Long-term debt — 18,000 
 
 Subordinated notes, net of unamortized issuance costs 227,723 222,882 
 Junior subordinated debt owed to unconsolidated trusts 74,815 71,993 
 Lease liabilities 11,040 11,308 
 Other liabilities 211,775 196,699 
 Total liabilities 10,663,453 11,011,434 
 
 Outstanding commitments and contingent liabilities (see Notes 7 and 18 ) 
 
 
 Stockholders’ equity 
 Common stock, ($ 0.001 par value; 100,000,000 shares authorized) 
 60 58 
 Additional paid-in capital 1,360,530 1,323,595 
 Retained earnings 294,054 237,197 
 AOCI ( 207,039 ) ( 218,803 ) 
 Total stockholders’ equity before treasury stock 1,447,605 1,342,047 
 Treasury stock at cost ( 64,336 ) ( 70,066 ) 
 Total stockholders’ equity 1,383,269 1,271,981 
 Total liabilities and stockholders’ equity $ 12,046,722 $ 12,283,415 
 
 Shares 
 Common shares issued 59,546,273 58,116,969 
 Less: Treasury shares ( 2,650,292 ) ( 2,872,850 ) 
 Common shares outstanding 56,895,981 55,244,119 

 See accompanying Notes to Consolidated Financial Statements. 
 First Busey Corporation (BUSE) | 2024 — 91 

 
 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 CONSOLIDATED STATEMENTS OF INCOME 
 (dollars in thousands, except per share amounts) 

 
 Years Ended December 31, 
 2024 2023 2022 
 Interest income 
 Interest and fees on loans $ 426,422 $ 385,848 $ 287,477 
 Interest and dividends on investment securities: 
 Taxable interest income 72,794 80,316 66,140 
 Non-taxable interest income 1,176 2,678 3,272 
 Dividend income on bank stock 848 1,170 190 
 Other interest income 22,441 10,531 3,097 
 Total interest income 523,681 480,543 360,176 
 
 Interest expense 
 Deposits 178,463 123,985 16,112 
 Federal funds purchased and securities sold under agreements to repurchase 4,308 5,203 1,475 
 Short-term borrowings 701 12,775 1,647 
 Long-term debt 300 1,700 1,310 
 Senior notes — — 637 
 Subordinated notes 12,650 12,406 12,338 
 Junior subordinated debt owed to unconsolidated trusts 4,648 3,853 3,029 
 Total interest expense 201,070 159,922 36,548 
 
 Net interest income 322,611 320,621 323,628 
 Provision for credit losses 8,590 2,399 4,623 
 Net interest income after provision for credit losses 314,021 318,222 319,005 
 
 Noninterest income 
 Wealth management fees 63,630 57,309 55,378 
 Fees for customer services 30,933 29,044 33,111 
 Payment technology solutions 21,983 21,192 20,067 
 Mortgage revenue 2,075 1,089 1,895 
 Income on bank owned life insurance 5,130 4,701 3,663 
 Realized net gains (losses) on the sale of mortgage servicing rights 7,724 — — 
 Realized net gains (losses) on securities ( 7,033 ) ( 28 ) 50 
 Unrealized net gains (losses) recognized on equity securities 931 ( 2,171 ) ( 2,183 ) 
 Other noninterest income 14,309 10,078 14,632 
 Total noninterest income 139,682 121,214 126,613 
 
 Noninterest expense 
 Salaries, wages, and employee benefits 175,619 162,597 159,016 
 Data processing 27,124 23,708 21,648 
 Net occupancy expense of premises 18,737 18,214 19,130 
 Furniture and equipment expenses 6,805 6,759 7,645 
 Professional fees 12,804 7,147 6,125 
 Amortization of intangible assets 10,057 10,432 11,628 
 Interchange expense 6,001 6,864 6,298 
 FDIC insurance 5,603 5,650 4,058 
 Other noninterest expense 37,649 44,161 48,333 
 Total noninterest expense 300,399 285,532 283,881 
 
 Income before income taxes 153,304 153,904 161,737 
 Income taxes 39,613 31,339 33,426 
 Net income $ 113,691 $ 122,565 $ 128,311 
 
 Basic earnings per common share $ 2.01 $ 2.21 $ 2.32 
 Diluted earnings per common share 1.98 2.18 2.29 
 Dividends declared per share of common stock 0.96 0.96 0.92 

 See accompanying Notes to Consolidated Financial Statements. 
 First Busey Corporation (BUSE) | 2024 — 92 

 
 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) 
 (dollars in thousands) 

 
 Years Ended December 31, 
 2024 2023 2022 
 Net income $ 113,691 $ 122,565 $ 128,311 
 OCI: 
 Unrealized/Unrecognized gains (losses) on debt securities: 
 Net unrealized holding gains (losses) on debt securities available for sale 10,295 58,498 ( 278,762 ) 
 Net unrecognized gains (losses) on debt securities transferred to held to maturity from available for sale — — ( 48,456 ) 
 Reclassification adjustment for realized (gains) losses on debt securities available for sale included in net income 7,033 5,503 ( 26 ) 
 Amortization of unrecognized losses on securities transferred to held to maturity 5,481 6,189 6,638 
 Tax effect ( 7,934 ) ( 20,006 ) 91,386 
 Net change in unrealized/unrecognized gains (losses) on debt securities 14,875 50,184 ( 229,220 ) 
 Unrealized gains (losses) on cash flow hedges: 
 Net unrealized holding gains (losses) on cash flow hedges ( 13,055 ) ( 2,567 ) ( 28,975 ) 
 Reclassification adjustment for realized (gains) losses on cash flow hedges included in net income 9,291 8,569 583 
 Tax effect 653 ( 1,711 ) 8,092 
 Net change in unrealized gains (losses) on cash flow hedges ( 3,111 ) 4,291 ( 20,300 ) 
 OCI 11,764 54,475 ( 249,520 ) 
 Total comprehensive income (loss) $ 125,455 $ 177,040 $ ( 121,209 ) 

 See accompanying Notes to Consolidated Financial Statements. 
 First Busey Corporation (BUSE) | 2024 — 93 

 
 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 
 (dollars in thousands, except per share amounts) 

 
 Shares Common
Stock Additional
Paid-in
Capital Retained Earnings AOCI Treasury Stock Total 
Stockholders'
Equity 
 Balance, December 31, 2021 55,434,910 $ 58 $ 1,316,984 $ 92,463 $ ( 23,758 ) $ ( 66,635 ) $ 1,319,112 
 
 Net income — — — 128,311 — — 128,311 
 OCI, net of tax — — — — ( 249,520 ) — ( 249,520 ) 
 
 Repurchase of stock ( 388,614 ) — — — — ( 9,912 ) ( 9,912 ) 
 Issuance of treasury stock for ESPP 57,385 — ( 320 ) — — 1,477 1,157 
 Net issuance of treasury stock for RSU/PSU/DSU vesting and related tax 175,225 — ( 5,789 ) — — 4,513 ( 1,276 ) 
 Issuance of treasury stock for stock options exercised, net of shares redeemed and related tax 218 — ( 5 ) — — 5 — 
 Cash dividends common stock at $ 0.92 per share 
 — — — ( 50,863 ) — — ( 50,863 ) 
 Stock dividend equivalents on RSUs/PSUs/DSUs — — 1,142 ( 1,142 ) — — — 
 Stock-based compensation — — 8,968 — — — 8,968 
 Balance, December 31, 2022 55,279,124 58 1,320,980 168,769 ( 273,278 ) ( 70,552 ) 1,145,977 
 Net income — — — 122,565 — — 122,565 
 OCI, net of tax — — — — 54,475 — 54,475 
 
 Repurchase of stock ( 227,935 ) — — — — ( 4,482 ) ( 4,482 ) 
 Issuance of treasury stock for ESPP 59,845 — ( 530 ) — — 1,541 1,011 
 Net issuance of treasury stock for RSU/PSU/DSU vesting and related tax 132,091 — ( 4,494 ) — — 3,401 ( 1,093 ) 
 Net issuance of treasury stock for warrants exercised 994 — ( 17 ) — — 26 9 
 Cash dividends common stock at $ 0.96 per share 
 — — — ( 53,076 ) — — ( 53,076 ) 
 Stock dividend equivalents on RSUs/PSUs/DSUs — — 1,061 ( 1,061 ) — — — 
 Stock-based compensation — — 6,595 — — — 6,595 
 Balance, December 31, 2023 55,244,119 58 1,323,595 237,197 ( 218,803 ) ( 70,066 ) 1,271,981 
 Cumulative effect of change in accounting principal (ASU 2023-02) — — — ( 1,391 ) — — ( 1,391 ) 
 Net income — — — 113,691 — — 113,691 
 OCI, net of tax — — — — 11,764 — 11,764 
 Stock issued in acquisition, net of stock issuance costs 1,429,304 2 34,232 — — — 34,234 
 
 Issuance of treasury stock for ESPP 58,843 — ( 325 ) — — 1,515 1,190 
 Net issuance of treasury stock for RSU/PSU/DSU vesting and related tax 163,387 — ( 5,961 ) — — 4,207 ( 1,754 ) 
 Net issuance of treasury stock for warrants exercised 328 — ( 11 ) — — 8 ( 3 ) 
 Cash dividends common stock at $ 0.96 per share 
 — — — ( 54,169 ) — — ( 54,169 ) 
 Stock dividend equivalents on RSUs/PSUs/DSUs — — 1,274 ( 1,274 ) — — — 
 Stock-based compensation — — 7,726 — — — 7,726 
 Balance, December 31, 2024 56,895,981 $ 60 $ 1,360,530 $ 294,054 $ ( 207,039 ) $ ( 64,336 ) $ 1,383,269 

 See accompanying Notes to Consolidated Financial Statements. 
 First Busey Corporation (BUSE) | 2024 — 94 

 
 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 CONSOLIDATED STATEMENTS OF CASH FLOWS 
 (dollars in thousands) 

 
 Years Ended December 31, 
 2024 2023 2022 
 Cash flows provided by (used in) operating activities 
 Net income $ 113,691 $ 122,565 $ 128,311 
 Adjustments to reconcile net income to net cash provided by (used in) operating activities: 
 Provision for credit losses 8,590 2,399 4,623 
 Amortization of intangible assets 10,057 10,432 11,628 
 Amortization of mortgage servicing rights 997 2,785 3,540 
 Amortization of New Markets Tax Credit — 8,999 6,333 
 Depreciation and amortization of premises and equipment 9,503 9,488 10,482 
 Net amortization (accretion) on portfolio loans 4,372 6,971 3,932 
 Net amortization (accretion) of premium (discount) on investment securities 8,857 14,406 20,799 
 Net amortization (accretion) of premium (discount) on time deposits 101 ( 270 ) ( 403 ) 
 Net amortization (accretion) of premium (discount) on FHLB advances and other borrowings 1,158 1,027 1,400 
 Impairment of OREO and other repossessed assets — 100 611 
 Impairment of fixed assets held for sale 637 — 427 
 Impairment of mortgage servicing rights — 1 ( 8 ) 
 Impairment of leases — — 84 
 Unrealized (gains) losses recognized on equity securities, net ( 931 ) 2,171 2,183 
 (Gain) loss on sales of equity securities, net — ( 5,475 ) ( 24 ) 
 (Gain) loss on sales of debt securities, net 7,033 5,503 ( 26 ) 
 (Gain) loss on sales of mortgage servicing rights ( 7,724 ) — — 
 (Gain) loss on sales of loans, net ( 1,761 ) ( 733 ) ( 1,944 ) 
 (Gain) loss on sales of OREO and other repossessed assets ( 585 ) ( 46 ) ( 54 ) 
 (Gain) loss on sales of premises and equipment ( 138 ) ( 450 ) ( 825 ) 
 (Gain) loss on life insurance proceeds ( 895 ) ( 759 ) — 
 (Increase) decrease in cash surrender value of bank owned life insurance ( 4,235 ) ( 3,942 ) ( 3,663 ) 
 Provision for deferred income taxes 1,384 ( 2,920 ) ( 1,272 ) 
 Stock-based compensation 7,726 6,595 8,968 
 
 Proceeds from the sale of mortgage servicing rights 9,796 — — 
 Mortgage loans originated for sale ( 104,176 ) ( 35,413 ) ( 70,953 ) 
 Proceeds from sales of mortgage loans 104,670 35,018 95,289 
 (Increase) decrease in other assets 19,752 ( 17,888 ) ( 56,284 ) 
 Increase (decrease) in other liabilities ( 9,612 ) 12,826 2,633 
 Net cash provided by (used in) operating activities $ 178,267 $ 173,390 $ 165,787 
 
 Cash flows provided by (used in) investing activities 
 Purchases of equity securities $ ( 30,422 ) $ ( 6,617 ) $ ( 14,820 ) 
 Purchases of debt securities available for sale ( 182,603 ) ( 10,436 ) ( 280,083 ) 
 Proceeds from sales of equity securities 25,303 11,644 15,418 
 Proceeds from sales of debt securities available for sale 101,361 105,044 — 
 Proceeds from paydowns and maturities of debt securities held to maturity 48,822 48,927 70,116 
 Proceeds from paydowns and maturities of debt securities available for sale 370,774 326,252 470,134 
 Purchases of restricted bank stock ( 43,954 ) ( 30,957 ) ( 12,969 ) 
 Proceeds from the redemption of restricted bank stock 884 43,926 225 
 Purchases of loans ( 14,602 ) — — 
 Net (increase) decrease in loans 364,455 65,240 ( 541,713 ) 
 Net cash received in (paid for) acquisitions 
 18,377 — — 
 Cash paid for premiums on bank-owned life insurance ( 74 ) ( 80 ) ( 106 ) 
 Proceeds from life insurance 3,092 2,292 219 
 Purchases of premises and equipment ( 6,430 ) ( 9,533 ) ( 4,989 ) 
 Proceeds from disposition of premises and equipment 2,247 4,425 4,528 
 Proceeds from sales of OREO and other repossessed assets, including cash payments collected 673 860 3,184 
 Net cash provided by (used in) investing activities $ 657,903 $ 550,987 $ ( 290,856 ) 
 

 (continued) 
 First Busey Corporation (BUSE) | 2024 — 95 

 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) 
 (dollars in thousands) 

 
 Years Ended December 31, 
 2024 2023 2022 
 Cash flows provided by (used in) financing activities 
 Net increase (decrease) in deposits $ ( 701,605 ) $ 220,146 $ ( 696,894 ) 
 Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase ( 32,969 ) ( 42,410 ) ( 40,333 ) 
 Net increase (decrease) in short-term borrowings ( 36,000 ) ( 335,000 ) 330,000 
 Proceeds from other borrowings, net of debt issuance costs — — 98,094 
 Repayment of other borrowings ( 31,450 ) ( 16,054 ) ( 112,678 ) 
 Cash dividends paid ( 54,169 ) ( 53,076 ) ( 50,863 ) 
 Purchase of treasury stock — ( 4,482 ) ( 9,912 ) 
 Cash paid for withholding taxes on stock-based payments ( 1,755 ) ( 1,093 ) ( 1,276 ) 
 Proceeds from stock options exercised ( 3 ) — — 
 Proceeds from stock warrants exercised — 9 — 
 
 Common stock issuance costs ( 141 ) — — 
 Net cash provided by (used in) financing activities $ ( 858,092 ) $ ( 231,960 ) $ ( 483,862 ) 
 
 Net increase (decrease) in cash and cash equivalents $ ( 21,922 ) $ 492,417 $ ( 608,931 ) 
 Cash and cash equivalents, beginning of period 719,581 227,164 836,095 
 Cash and cash equivalents, ending of period $ 697,659 $ 719,581 $ 227,164 
 
 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION 
 
 Cash payments for: 
 Interest $ 208,359 $ 135,482 $ 35,297 
 Income taxes 12,907 25,408 30,676 
 
 Non-cash investing and financing activities: 
 OREO acquired in settlement of loans $ 26 $ 189 $ 175 
 
 Transfer of debt securities available for sale to held to maturity — — 985,199 

 See accompanying Notes to Consolidated Financial Statements. 
 First Busey Corporation (BUSE) | 2024 — 96 

 
 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 

 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
 
 NOTE 1. SIGNIFICANT ACCOUNTING POLICIES 
 Organization and Nature of Operations 
 First Busey Corporation is a financial holding company organized under the laws of Nevada. First Busey Corporation’s subsidiaries provide retail and commercial banking services and payment technology solutions, and offer a full range of financial products and services including depository, lending, security brokerage, investment management, and fiduciary services, to individual, corporate, institutional, and governmental customers through their locations in Illinois, Missouri, southwest Florida and Indianapolis, Indiana. First Busey Corporation and its subsidiaries are subject to the regulations of certain regulatory agencies and undergo periodic examinations by those regulatory agencies. 
 Busey’s accounting and reporting policies conform to GAAP. The Consolidated Financial Statements include the accounts of First Busey Corporation and its subsidiaries, which include Deed of Trust Services Corporation, and Busey Bank, including Busey Bank’s wholly-owned subsidiaries FirsTech, Pulaski Service Corporation, and Busey Capital Management, Inc. Further, until its dissolution on December 18, 2023, First Busey Risk Management was a subsidiary of First Busey Corporation and included in the Company’s Consolidated Financial Statements . Operating results generated from acquired businesses are included with Busey’s results of operations starting from each date of acquisition. First Busey Corporation and its subsidiaries maintain various limited liability companies that hold specific assets for risk mitigation purposes and are consolidated into Busey’s Consolidated Financial Statements . Intercompany balances and transactions have been eliminated in consolidation. 
 Because Busey is not the primary beneficiary, the Consolidated Financial Statements exclude the following wholly-owned variable interest entities: First Busey Statutory Trust II, First Busey Statutory Trust III, First Busey Statutory Trust IV, Pulaski Financial Statutory Trust I, Pulaski Financial Statutory Trust II, and Merchants and Manufacturers Bank Statutory Trust I. 
 Use of Estimates 
 In preparing the accompanying Consolidated Financial Statements in conformity with GAAP, Busey’s management is required to make estimates and assumptions that affect the amounts reported on the Consolidated Financial Statements and the disclosures provided. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near-term relate to the fair value of assets acquired and liabilities assumed in business combinations, goodwill, income taxes, and the determination of the ACL. 
 Trust Assets 
 Assets held for customers in a fiduciary or agency capacity, other than trust cash on deposit at Busey Bank, are not Busey’s assets and, accordingly, are not included in the accompanying Consolidated Financial Statements . Busey had assets under care of $ 13.83 billion at December 31, 2024, and $ 12.14 billion at December 31, 2023. 
 Cash and Cash Equivalents 
 Cash and cash equivalents include cash on hand, cash items in process of collection, amounts due from other banks, interest-bearing deposits held with other financial institutions, and federal funds sold. The carrying amount of these instruments is considered a reasonable estimate of fair value. 
 Busey maintains its cash in deposit accounts, the balance of which, at times, may exceed federally insured limits. Busey has not experienced any losses in such accounts. Management believes Busey is not exposed to any significant credit risk on cash and cash equivalents. 
 First Busey Corporation (BUSE) | 2024 — 97 

 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Business Combinations 
 Business combinations are accounted for under ASC Topic 805 “Business Combinations” using the acquisition method of accounting. The acquisition method of accounting requires that the assets acquired and the liabilities assumed are recognized, measured at their estimated fair values, as of the date Busey obtains control of the acquiree (the acquisition date). To estimate fair values of assets acquired and liabilities assumed, Busey may utilize third-party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Further, management assumptions require consideration of future growth rates, future attrition, discount rates, multiples of earnings or other relevant factors. 
 Operating results generated from acquired businesses are included with Busey’s results of operations starting from each acquisition date. Acquisition related costs are costs that Busey incurs to effect a business combination, and may include legal, accounting, valuation, other professional or consulting fees, system conversions, and marketing costs. Busey accounts for acquisition related costs by recording them as expenses in the periods in which the costs are incurred and the services are received. Costs that Busey expects, but is not obligated to incur in the future, to effect its plan to exit an activity of an acquiree or to terminate the employment of an acquiree’s employees are not liabilities at the acquisition date. Instead, Busey recognizes these costs in its post-combination Consolidated Financial Statements in accordance with other applicable accounting guidance. 
 Securities 
 Debt Securities Available for Sale 
 Debt securities classified as available for sale are those debt securities that Busey intends to hold for an indefinite period of time, but not necessarily to maturity. Any decision to sell a security classified as available for sale would be based on factors including significant movements in interest rates, changes in the maturity mix of Busey's assets and liabilities, liquidity needs, regulatory capital considerations, and other similar factors. Debt securities available for sale are carried at fair value, with unrealized gains and losses reported in OCI, net of taxes. 
 Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. The amortization period for certain callable debt securities held at a premium are amortized to the earliest call date, while discounts on debt securities are amortized to maturity. Gains and losses on the sale of debt securities available for sale are recorded on the trade date and are determined using the specific identification method. 
 Debt securities available for sale are not within the scope of the current expected credit losses methodology, however, the accounting for credit losses on these securities is affected by ASC Subtopic 326-30 “Financial Instruments-Credit Losses—Available-for-Sale Debt Securities.” A debt security available for sale is impaired if the fair value of the security declines below its amortized cost basis. To determine the appropriate accounting, Busey must first determine if it intends to sell the security or if it is more likely than not that it will be required to sell the security before the fair value increases to at least the amortized cost basis. If either of those selling events is expected, Busey will write down the amortized cost basis of the security to its fair value. This is achieved by writing off any previously recorded allowance, if applicable, and recognizing any incremental impairment through earnings. If Busey neither intends to sell the security nor believes it is more likely than not that the Company will be required to sell the security before the fair value recovers to the amortized cost basis, Busey must determine whether any of the decline in fair value has resulted from a credit loss, or if it is entirely the result of noncredit factors. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Busey considers the following factors in assessing whether the decline is due to a credit loss: 
 • Extent to which the fair value is less than the amortized cost basis; 
 • Adverse conditions specifically related to the security, an industry, or a geographic area (for example, changes in the financial condition of the issuer of the security, or in the case of an asset-backed debt security, in the financial condition of the underlying loan obligors); 
 • Payment structure of the debt security and the likelihood of the issuer being able to make payments that increase in the future; 
 • Failure of the issuer of the security to make scheduled interest or principal payments; and 
 • Any changes to the rating of the security by a rating agency. 
 Impairment related to a credit loss must be measured using the discounted cash flow method. Credit loss recognition is limited to the fair value of the security. Impairment is recognized by establishing an allowance for the debt security through the provision for credit losses. Impairment related to noncredit factors is recognized in AOCI, net of applicable taxes. Busey did not recognize any credit impairment on debt securities available for sale in 2024, 2023, or 2022. 
 Debt Securities Held to Maturity 
 Debt securities classified as held to maturity are those debt securities that Busey has the intent and ability to hold to maturity and are carried at amortized cost. In 2022, Busey elected to transfer a portion of the agency mortgage-backed securities portfolio from available for sale to held to maturity. While held to maturity securities are within the scope of CECL, the standard allows for an assumption of zero credit losses when the expectation of non-payment is zero. The risk of credit loss related to mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises is considered zero, therefore requiring no allowance to be recorded. 
 Accrued interest receivable for both debt securities available for sale and debt securities held to maturity totaled $ 10.5 million at December 31, 2024, and is excluded from the estimate of credit losses. Accrued interest receivable is reported in other assets on the Consolidated Balance Sheets . 
 Equity Securities 
 Equity securities are carried at fair value with changes in fair value recognized in earnings. 
 Loans Held for Sale 
 Loans held for sale include mortgage loans which Busey intends to sell to investors and/or the secondary mortgage market. 
 Busey accounts for loans held for sale at LOCOM. Loans held for sale are carried at amortized historical cost less loan write-offs and downward fair value adjustments, as may be applicable. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Gains and losses on sales of loans are recognized at settlement dates and are determined by the difference between the sales proceeds and the carrying amount, net of the value of any servicing assets for loans that were sold with servicing rights retained. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Loan Servicing 
 Servicing assets are recognized when servicing rights are acquired or retained through the sale of mortgage and government-guaranteed commercial loans. The unpaid principal balances of loans serviced by Busey for the benefit of others totaled $ 582.5 million as of December 31, 2024, and $ 1.49 billion as of December 31, 2023, and are not included in the accompanying Consolidated Balance Sheets . During the first quarter of 2024, Busey sold the mortgage servicing rights on approximately $ 923.5 million of one- to four-family mortgage loans for an estimated pre-tax gain of $ 7.5 million, which enabled Busey to sell available-for-sale debt securities with a book value of approximately $ 108.2 million for a pre-tax loss of $ 6.8 million. 
 Servicing rights are initially recorded at estimated fair value, which is determined using a valuation model that calculates the present value of estimated future net servicing income. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying financial assets. The amortization of mortgage servicing rights is included in mortgage revenue. The amortization of government-guaranteed commercial loan servicing rights is included in other income. 
 Servicing rights are periodically evaluated for impairment based on the fair value of those rights as compared to the carrying amount. Fair values are estimated using discounted cash flows based on expected prepayment rates and other inputs. For purposes of measuring impairment, servicing rights are stratified by one or more predominant characteristics of the underlying loans. A valuation allowance is recognized in the amount by which the amortized cost of the rights for each stratum exceeds its fair value, if any. If Busey later determines that all or a portion of the impairment no longer exists for a particular group of loans, a reversal of the allowance may be recorded in current period earnings. Busey had an immaterial amount of impairment recorded at December 31, 2024 and 2023. 
 Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal and are recorded as income when earned. 
 Portfolio Loans 
 Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, are reported at the principal balance outstanding, net of purchase premiums and discounts, deferred origination fees and costs, charge-offs, and the ACL. 
 Loan origination fees, net of certain direct loan origination costs, are deferred and the net amount is amortized as an adjustment of the related loan’s yield. Busey amortizes the net amount over the contractual life of the related loan. 
 Interest income is accrued daily on outstanding loan balances. Loans are placed on non-accrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Past due status is based on the contractual terms of the loan. 
 Interest accrued but not collected for loans that are charged-off or placed on non-accrual status is reversed against interest income. The interest on non-accrual loans is accounted for on the cost-recovery method, until returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Loan Modifications 
 Busey’s loan portfolio includes certain loans that have been modified in accordance with loan refinancing and restructuring guidance in ASC Subtopic 310-20-35-9 through 35-11 “Receivables—Nonrefundable Fees and Other Costs—Subsequent Measurement—Loan Refinancing or Restructuring” for borrowers experiencing financial difficulty. For additional information about loan modifications for borrowers experiencing financial difficulty, see “ Note 4. P ortfolio Loans .” 
 Allowance for Credit Losses 
 The ACL is a significant estimate on Busey’s Consolidated Financial Statements , affecting both earnings and capital. The ACL is a valuation account that is deducted from the portfolio loans’ amortized cost bases to present the net amount expected to be collected on the portfolio loans. Portfolio loans are charged off against the ACL when management believes the loan balance is uncollectible. Recoveries will be recognized up to the aggregate amount of previously charged-off balances. The ACL is established through the provision for credit loss charged to income. 
 A loan’s amortized cost basis is comprised of the unpaid principal balance of the loan net of charge-offs, accrued interest receivable, purchase premiums or discounts, and net deferred origination fees or costs. Busey has estimated its allowance on the amortized cost basis, exclusive of government guaranteed loans and accrued interest receivable. Further, as permitted under the practical expedient provided within ASC 326-20-35-6, Busey did not record an ACL for its Life Equity Loan ® portfolio due to no expected credit loss at default. Busey writes-off uncollectible accrued interest receivable in a timely manner and has elected to not measure an allowance for accrued interest receivable. Busey presents the aggregate amount of accrued interest receivable for all financial instruments in other assets on the Consolidated Balance Sheets and the balance of accrued interest receivable is disclosed in “ Note 20. Fair Value Measurements. ” 
 Busey’s methodology influences, and is influenced by, Busey’s overall credit risk management processes. The ACL is managed in accordance with GAAP to provide an adequate reserve for expected credit losses that is reflective of management’s best estimate of what is expected to be collected. The ACL must be determined on a collective (pool) basis when similar risk characteristics exist. On a case-by-case basis, Busey may conclude that a loan should be evaluated on an individual basis based on disparate risk characteristics. 
 The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the amortized cost basis. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions such as changes in unemployment rates, property values, and other relevant factors. The calculation also contemplates that Busey may not be able to make or obtain such forecasts for the entire life of the financial assets and requires a reversion to historical credit loss information. Due to the continued economic uncertainty in the markets in which the Company operates, Busey will continue to utilize a forecast period of 12 months with an immediate reversion to historical loss rates beyond this forecast period in its ACL estimate. 
 Ongoing impacts of CECL will be dependent upon changes in economic conditions and forecasts, originated and acquired loan portfolio composition, prepayment speeds, credit performance trends, portfolio duration, and other factors. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Assets Purchased with Credit Deterioration 
 Acquired loans are separated into two categories based on the credit risk characteristics of the underlying borrowers: (1) PCD, for loans which have experienced more than insignificant credit deterioration since origination, or (2) all other loans. 
 For PCD loans, an ACL is determined at the date of acquisition using the same methodology as other loans held for investment. This initial ACL, when determined on a collective basis, is allocated to the individual loans, and the sum of each loan’s purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. The ACL on PCD loans is recorded in the acquisition accounting and no provision for credit losses is recognized at the acquisition date. Subsequent changes to the ACL are recorded as a charge to the provision for credit losses. 
 For all other loans, an ACL is established immediately after the acquisition through a charge to the provision for credit losses. 
 Upon adoption of ASC Topic 326 “Financial Instruments-Credit Losses” Busey applied the prospective transition approach for financial assets considered PCD that were previously classified as PCI and accounted for under ASC Subtopic 310-30 “Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality.” In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. The amortized cost basis of these PCD assets was adjusted to reflect an ACL for any remaining credit discount. The noncredit discount is being accreted into interest income using the January 1, 2020, effective interest rate. Subsequent changes in expected cash flows will be adjusted through the ACL. 
 Other Real Estate Owned and Other Repossessed Assets 
 OREO and other repossessed assets represent properties and other assets acquired through foreclosure or other proceedings in settlement of loans. OREO and other repossessed assets are recorded at the fair value of the property or asset, less estimated costs of disposal, which establishes a new cost basis. Any adjustment to fair value at the time of transfer to OREO or other repossessed assets is charged to the ACL. OREO property and other repossessed assets are evaluated regularly to ensure the recorded amount is supported by its current fair value; write downs or valuation allowances to reduce the carrying amount to fair value less estimated costs to dispose are recorded, as necessary. OREO and other repossessed assets are included in other assets on the Consolidated Balance Sheets . Revenue, expense, gains, and losses from the operations of foreclosed assets are included in earnings. 
 Long-Lived Assets 
 Long-lived assets, including premises and equipment, right of use assets, and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. An impairment loss is recognized when estimated undiscounted future cash flows from operations of the asset are less than the carrying value of the asset. Cash flows used for this analysis are those directly associated with, and that are expected to arise as a direct result of, the use and eventual disposition of the asset. Any impairment loss is measured as the amount by which the carrying value of the asset exceeds its fair value. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Premises and Equipment 
 Land is carried at cost less accumulated depreciation of depreciable land improvements. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. The estimated useful lives for premises and equipment are: 
 
 Asset Description Estimated Useful Life 
 Buildings and improvements 3 — 40 years 
 
 Furniture and equipment 3 — 10 years 
 

 Premises and equipment are reviewed for impairment in accordance with Busey’s policies regarding long-lived assets. 
 Bank property held for sale, included in premises and equipment, represents certain banking center office buildings which Busey had closed and consolidated with other existing banking centers. Bank property held for sale is measured at the lower of amortized cost or estimated fair value less estimated costs to sell, and depreciation has been stopped. 
 Leases 
 A determination is made at inception if an arrangement contains a lease. For arrangements containing leases, Busey recognizes leases on the Consolidated Balance Sheets as right of use assets and corresponding lease liabilities. Lease-related assets, or right of use assets, are recognized on the lease commencement date at amounts equal to the respective lease liabilities, adjusted for prepaid lease payments, initial direct costs, and lease incentives received. Lease-related liabilities are recognized at the present value of the remaining contractual fixed lease payments, discounted using the rate implicit in the lease or Busey’s incremental borrowing rate. 
 ASC Topic 842 “Leases” requires the use of the rate implicit in the lease whenever this rate is readily determinable. If not readily determinable, Busey uses its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to Busey’s adoption of ASC Topic 842 on January 1, 2019, Busey used a borrowing rate that corresponded to the lease term remaining as of the date of adoption of ASC Topic 842. 
 Busey’s lease agreements often include one or more options to renew at Busey’s discretion. When Busey considers the exercise of a renewal option to be reasonably certain, that renewal term is included in the calculation of the right of use asset and lease liability. 
 Operating lease expense is recognized on a straight-line basis over the lease term, including any renewal terms available through options to renew that Busey is reasonably certain to exercise. Variable lease payments are expensed as incurred. 
 Right of use assets are reviewed for impairment in accordance with Busey’s policies regarding long-lived assets. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Goodwill and Other Intangibles 
 Goodwill represents the excess of consideration transferred in a business combination over the fair value of the net assets acquired. Goodwill is not amortized but is subject to at least annual impairment assessments. A separate goodwill impairment assessment is performed for each reporting unit on the goodwill that has been allocated to it. A reporting unit is a component of an operating segment that constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component. Busey’s reporting units are the same as its operating segments. Busey has established December 31 as the annual impairment assessment date for each of its reporting units. As part of this assessment, each reporting unit's carrying value is compared to its fair value. 
 Busey estimates the fair value of its reporting units as of the measurement date utilizing valuation methodologies including comparable company analysis and precedent transaction analysis. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. There was no impairment as of December 31, 2024 or 2023. 
 Other intangible assets consist of core deposit and acquired customer relationship intangible assets arising from acquisitions. Other intangible assets are amortized over their estimated useful lives, and are reviewed for impairment in accordance with Busey’s policies regarding long-lived assets. 
 See “ Note 8. Goodwill and Other Intangible Assets ” for additional information. 
 Cash Surrender Value of Bank Owned Life Insurance 
 Busey has purchased, or acquired through acquisitions, life insurance policies on certain executives and senior officers. Life insurance is recorded at its cash surrender value, which approximates its fair value. 
 Busey maintains a liability for post-employment benefits related to split-dollar life insurance arrangements. In an endorsement split-dollar life insurance arrangement, the employer owns and controls the policy, and the employer and employee split the life insurance policy’s cash surrender value and/or death benefits. If the employer agrees to maintain a life insurance policy during the employee’s retirement, the present value of the cost of maintaining the insurance policy is accrued over the employee’s active service period. Similarly, if the employer agrees to provide the employee with a death benefit, the present value of the death benefit is accrued over the employee’s active service period. Busey accrued liabilities for these arrangements totaling $ 5.7 million as of December 31, 2024, and $5.6 million as of December 31, 2023. Liabilities for post-employment benefits are included in other liabilities on the Consolidated Balance Sheets . 
 Restricted Bank Stock 
 During the fourth quarter of 2024 Busey Bank became a member of the Federal Reserve System. Federal Reserve member banks are required to own a certain amount of Federal Reserve Bank stock. Busey's investment in Federal Reserve Bank stock was $ 43.9 million as of December 31, 2024. Busey’s investment in Federal Reserve Bank stock represents approximately half of the total required subscription, and the remaining half is unpaid and remains subject to call by the Federal Reserve Bank. As such, Busey reserved cash of $ 43.9 million as of December 31, 2024. 
 Busey Bank is a member of the FHLB system. FHLB members are required to own a certain amount of FHLB stock based on the level of borrowings and other factors, and may invest in additional amounts. Busey's investment in FHLB stock was $ 6.0 million as of both December 31, 2024 and 2023. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Federal Reserve Bank stock and FHLB stock are carried at cost in restricted bank stock on the Consolidated Balance Sheets . Cash reserves are included in interest-bearing deposits as part of Busey’s total cash and cash equivalents balances reported on the Consolidated Balance Sheets . Dividends are reported as interest income on the Consolidated Statements of Income . Dividend income is accrued on Federal Reserve Bank stock and is recognized when declared on FHLB stock. 
 Transfers of Financial Assets 
 Transfers of financial assets are accounted for as sales only when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (1) the assets have been isolated from Busey’s assets, (2) the transferee obtains the right to pledge or exchange the assets it receives, and no condition both constrains the transferee from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor, and (3) Busey does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. When transfers of financial assets fail to meet these criteria, those transfers are accounted for as secured borrowings. 
 Income Taxes 
 Busey is subject to income taxes in U.S. federal and various state jurisdictions. First Busey Corporation and its subsidiaries file consolidated federal and state income tax returns with each subsidiary computing its taxes on a separate entity basis. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations, which requires significant judgment. Busey is no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for the years before 2021. 
 Under GAAP, a valuation allowance is required to be recognized if it is more likely than not that the deferred tax assets will not be realized. The determination of the recoverability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, the forecasts of future income, applicable tax planning strategies, and assessments of current and future economic and business conditions. 
 In 2024, Busey recorded a one-time deferred tax valuation adjustment of $ 1.4 million resulting from a change to the Illinois apportionment rate due to recently enacted regulations. These new regulations are expected to lower Busey’s ongoing tax obligation in future periods, but created a negative adjustment to the carrying value of Busey’s deferred tax asset in 2024. Management believes that it is more likely than not that the deferred tax assets included in the accompanying Consolidated Financial Statements will be fully realized. Busey determined that no valuation allowance was required as of December 31, 2024, or 2023. 
 Positions taken in tax returns may be subject to challenge upon examination by the taxing authorities. Uncertain tax positions are initially recognized on the Consolidated Financial Statements when it is more likely than not the position will not be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. When applicable, Busey recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. 
 At December 31, 2024, Busey Bank was under examination by the Florida Department of Revenue for its 2020 to 2022 corporate income tax filings. Busey Bank accrued $ 0.1 million related to potential assessment adjustments and interest. Other than this, Busey had no accruals for payments of interest and penalties related to uncertain tax positions at December 31, 2024, or 2023. Further, in February of 2025, Busey received notice of audit initiation from the Illinois Department of Revenue for M&M’s tax filings for the tax years 2022 and 2023. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Tax Credit and Other Investments in Unconsolidated Entities 
 Busey has invested in certain tax-advantaged projects promoting affordable housing, new markets, and historic rehabilitation. These investments are designed to generate returns primarily though the realization of federal and state income tax credits and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These investments are considered to be variable interest entities, and are accounted for under the equity, cost, or proportional amortization practical expedient methods, as appropriate. These investments involve significant management judgments, including a determination of which entities have the power to direct activities, and whether these entities are variable interest entities. Busey is required to evaluate whether to consolidate a variable interest entity at both inception and on an ongoing basis. Busey is not required to consolidate variable interest entities in which it has concluded it does not have a controlling financial interest and is not the primary beneficiary. Busey’s maximum exposure to loss related to its investments in these unconsolidated variable interest entities is limited to the carrying amount of the investment, net of any unfunded capital commitments and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. Busey believes potential losses from these investments are remote. In addition, Busey has private equity investments, which are primarily in funds that invest in small businesses across diverse sectors including, but not limited to, financial technology, business services, manufacturing, agribusiness, healthcare, software as a service, and environmental, or supporting the preservation of affordable housing. 
 Upon adoption of ASU 2023-02 on January 1, 2024, Busey elected to apply the proportional amortization method in accounting for investments in tax-advantaged projects. Income tax credits and other tax benefits, net of investment amortization, were included as a component of Busey’s estimated annual effective tax rate used for the calculation of income taxes presented on the Consolidated Statements of Income . 
 For additional information regarding these investments, see “ Note 14. Tax Credit and Other Investments in Unconsolidated Entities .” 
 Treasury Stock 
 Treasury stock acquired is recorded at cost. Treasury stock issued is valued based on the “first-in, first-out” method. Gains and losses on issuance are recorded as increases or decreases to additional paid-in capital. 
 Stock-Based Employee Compensation 
 Busey’s equity incentive plans are designed to encourage ownership of its common stock by its employees and directors, to provide additional incentive for them to promote the success of Busey’s business, and to attract and retain talented personnel. 
 2020 Equity Plan 
 The 2020 Equity Plan was originally approved by stockholders at the 2020 Annual Meeting of Stockholders. A description of the 2020 Equity Plan, as originally approved, can be found in Appendix A within Busey’s Proxy Statement for the 2020 Annual Meeting of Stockholders filed on April 9, 2020 . Upon the 2020 Equity Plan’s original approval, it replaced the 2010 Equity Incentive Plan and the First Community 2016 Equity Incentive Plan, which, from time to time, Busey used to grant equity awards to legacy employees of First Community. Under the terms of the 2020 Equity Plan, Busey has granted RSU, DSU, and PSU awards. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 An amendment to and restatement of the 2020 Equity Plan was approved by stockholders at the 2023 Annual Meeting of Stockholders. The terms of the amended and restated 2020 Equity Plan are substantially identical to those of the originally approved 2020 Equity Plan, other than a 1,350,000 increase in the number of shares authorized for issuance under the plan. More information can be found in Appendix A within Busey’s Proxy Statement for the 2023 Annual Meeting of Stockholders filed on April 14, 2023 . 
 All of Busey’s employees and directors and those of its subsidiaries are eligible to receive awards under the plans. 
 RSU Awards 
 Busey grants RSU awards to members of management periodically throughout the year. RSU awards are stock-based awards for which vesting is conditional upon meeting established service criteria. Each RSU is equivalent to one share of Busey’s common stock. Busey’s RSUs have requisite service periods ranging from one year to five years , and are subject to accelerated vesting upon eligible retirement from Busey. Recipients earn quarterly dividend equivalents on their respective RSUs, which entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances. 
 PSU Awards 
 Busey grants PSU awards to members of management periodically throughout the year. PSU awards are stock-based awards for which vesting is conditional upon meeting established performance criteria for the applicable performance period and remaining employed through the end of such performance period. Each PSU is equivalent to one share of Busey’s common stock. The number of PSUs that ultimately vest will be determined based on the extent to which the established performance criteria are achieved. Busey’s PSUs are subject to accelerated service-based vesting conditions upon eligible retirement from Busey. After performance determination, dividend equivalents are compounded based upon each dividend date during the performance period. 
 DSU Awards 
 Busey grants DSU awards to its non-employee directors. DSU awards are stock-based awards with a deferred settlement date. Each DSU is equivalent to one share of Busey’s common stock. DSUs vest over a one-year period following the grant date. Under the 2020 Equity Plan, DSUs are generally subject to the same terms as RSUs, except that following vesting of DSUs, settlement occurs within 30 days following the earlier of separation from the board or a change in control of the Company. After vesting and prior to delivery, DSUs will continue to earn dividend equivalents. 
 Stock Options 
 Busey has outstanding stock options assumed from acquisitions. All stock options that remained outstanding as of December 31, 2024, were fully vested. 
 Employee Stock Purchase Plan 
 The First Busey Corporation ESPP was approved at Busey’s 2021 Annual Meeting of Stockholders and details can be found in Appendix A within First Busey’s Definitive Proxy Statement filed with the SEC on April 8, 2021 . The purpose of the ESPP is to provide a means through which Busey associates may acquire a proprietary interest in the Company by purchasing shares of its common stock at a discounted price through voluntary payroll deductions, to assist in retaining the services of current associates and securing and retaining the services of new associates, and to provide incentives for Busey associates to exert maximum efforts toward the Company’s success. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Because the ESPP provides opportunity for Busey associates to purchase Busey’s common stock at a 15 % discount from the market price, the plan is considered to be a compensatory plan under current accounting guidance. Therefore, the entire amount of the discount is recognized in salaries, wages, and employee benefits on the Consolidated Statements of Income . 
 See “ Note 16. Stock-based Compensation ” for further discussion. 
 Off-Balance Sheet Arrangements 
 In the normal course of business, to meet the financing needs of its customers, Busey is a party to credit-related financial instruments with off-balance-sheet risk, including commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized on the Consolidated Balance Sheets . Busey’s exposure to credit loss is represented by the contractual amount of the commitments. Busey uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. 
 Commitments to extend credit are agreements to lend to a customer as long as no condition established in the contract has been violated. These commitments are generally at variable interest rates, they generally have fixed expiration dates or other termination clauses, and they may require the customer to pay a fee. Commitments for equity lines of credit may expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements. These commitments may be secured based on management’s credit evaluation of the borrower. 
 Standby letters of credit are conditional commitments Busey has issued to guarantee the performance of a customer’s obligation to a third-party. Those guarantees are primarily issued to support public and private borrowing arrangements, including bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Busey holds collateral, which may include accounts receivable, inventory, property and equipment, and income producing properties, supporting those commitments if deemed necessary. In the event the customer does not perform in accordance with the terms of the agreement with the third-party, Busey would be required to fund the commitment. If the commitment is funded, Busey would be entitled to seek recovery from the customer. 
 Busey estimates expected credit losses for off-balance sheet arrangements over the contractual period during which it is exposed to credit risk via a present contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the issuer. To be considered unconditionally cancellable for accounting purposes, Busey must have the ability to, at any time, with or without cause, refuse to extend credit under the commitment. Off-balance-sheet credit exposure segments share the same risk characteristics as portfolio loans. Busey incorporates a probability of funding and utilizes the ACL loss rates to calculate a reserve for off-balance-sheet credit exposure, which is carried on the Consolidated Balance Sheets in other liabilities rather than as a component of the ACL. The reserve for off-balance-sheet credit exposure is adjusted as a provision for off-balance-sheet credit exposure and is reported as a component of noninterest expense in the accompanying Consolidated Statements of Income . Liabilities recorded as reserves for Busey’s off-balance sheet credit exposure under these commitments totaled $ 6.0 million as of December 31, 2024, and $ 7.1 million as of December 31, 2023. 
 Derivative Financial Instruments 
 Busey utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, Busey enters into derivative financial instruments, including interest rate lock commitments issued to residential loan customers for loans that will be held for sale, forward sales commitments to sell residential mortgage loans to investors, and interest rate swaps with customers and other third parties. 
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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Interest Rate Swaps Designated as Cash Flow Hedges 
 Busey entered into derivative instruments designated as cash flow hedges. For a derivative instrument that qualifies and is designated as a cash flow hedge, the change in fair value of the derivative instrument is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in fair value of components excluded from the assessment of effectiveness are recognized in current earnings. 
 Interest Rate Swaps Not Designated as Hedges 
 Busey may offer derivative contracts to its customers in connection with their risk management needs. Busey manages the risk associated with these contracts by entering into equal and offsetting derivatives with third-party dealers. Generally, these derivatives have worked together as an economic interest rate hedge, but Busey did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. 
 Interest Rate Lock Commitments 
 Interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815 “Derivatives and Hedging” are carried at their fair values in other assets or other liabilities on the Consolidated Financial Statements , with changes in the fair values of the corresponding derivative financial assets or liabilities recorded as either a charge or credit to mortgage revenue during the period in which the changes occurred. 
 Forward Sales Commitments 
 Busey economically hedges mortgage loans held for sale and interest rate lock commitments issued to its residential loan customers related to loans that will be held for sale by obtaining corresponding forward sales commitments with an investor to sell the loans at an agreed-upon price at the time the interest rate locks are issued to the customers. Forward sales commitments that meet the definition of derivative financial instruments under ASC Topic 815 “Derivatives and Hedging” are carried at their fair values in other assets or other liabilities on the Consolidated Financial Statements . While such forward sales commitments generally served as an economic hedge to mortgage loans held for sale and interest rate lock commitments, Busey did not designate them for hedge accounting treatment. Changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to mortgage revenue during the period in which the changes occurred. 
 Risk Participation Agreements 
 Busey has entered into risk participation agreements to manage the credit risk of its derivative position. These agreements transfer credit risk related to an interest rate swap to another financial institution. Risk participation agreements that Busey has entered into are structured as follows: 
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 • Busey has a swap agreement with a customer. Busey (purchaser) entered into a risk participation agreement with a counterparty (seller), under which the counterparty receives a fee to accept a portion of the credit risk. If Busey’s customer defaults on the swap contract, the counterparty to the risk participation agreement must reimburse Busey for the counterparty's percentage of the positive fair value (from the purchaser’s perspective) of the customer swap as of the default date. If the customer swap has a negative fair value (from the purchaser’s perspective), the counterparty has no reimbursement requirements. If Busey’s customer defaults on the swap contract and the counterparty (seller) fulfills its payment obligations under the risk participation agreement, the counterparty (seller) is entitled to a pro rata share of Busey’s claim against the customer under the terms of the swap agreement. 
 • A counterparty has a swap agreement with a customer. Busey (seller) entered into a risk participation with a counterparty (purchaser), under which Busey receives a fee to accept a portion of the credit risk. If the counterparty’s customer defaults on the swap contract, Busey must reimburse the counterparty (purchaser) for Busey's percentage of the positive fair value (from the purchaser’s perspective) of the customer swap as of the default date. If the customer swap has a negative fair value (from the purchaser’s perspective), Busey has no reimbursement requirements. If the counterparty’s customer defaults on the swap contract and Busey (seller) fulfills its payment obligations under the risk participation agreement, Busey (seller) is entitled to a pro rata share of the counterparty’s claim against the customer under the terms of the swap agreement. 
 Fair Value of Financial Instruments 
 Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in “ Note 20. Fair Value Measurements .” Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates. 
 Comprehensive Income (Loss) 
 Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale debt securities and unrealized gains and losses on cash flow hedges, are reported net of taxes as a separate component within the equity section of the balance sheet, such items, along with net income, are components of comprehensive income (loss). 
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 Segment Disclosure 
 Operating segments are components of a business that (1) engage in business activities from which the component may earn revenues and incur expenses; (2) have operating results that are reviewed regularly by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segments and assess their performance; and (3) for which discrete financial information is available. Busey’s chief executive officer is its chief operating decision maker. Busey’s has three reportable segments: Banking, Wealth Management, and FirsTech. See “ Note 23. Operating Segments and Related Information ” for further discussion. 
 Revenue 
 ASC Topic 606 “Revenue from Contracts with Customers” outlines a single model for companies to use in accounting for revenue arising from contracts with customers and supersedes most prior revenue recognition guidance, including industry-specific guidance. ASC Topic 606 requires that companies recognize revenue based on the value of transferred goods or services as they occur in the contract and establishes additional disclosures. Busey’s revenue is comprised of net interest income, which is explicitly excluded from the scope of ASC Topic 606, and noninterest income. Busey has evaluated its noninterest income and the nature of its contracts with customers and determined that further disaggregation of revenue beyond what is presented in the accompanying Consolidated Financial Statements is not necessary. Busey satisfies its performance obligations on its contracts with customers as services are rendered, so there is limited judgment involved in applying ASC Topic 606 that affects the determination of the timing and amount of revenue from contracts with customers. 
 Descriptions of Busey’s primary revenue generating activities that are within the scope of ASC Topic 606, and are presented in the accompanying Consolidated Statements of Income as components of noninterest income, include wealth management fees, payment technology solutions, and fees for customer services. 
 Wealth Management Fees 
 Wealth management fees represent fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services, and other fiduciary activities. Also included are fees received from a third-party broker-dealer as part of a revenue sharing agreement for fees earned from customers that Busey refers to the third party. Revenue is recognized when the performance obligation is completed, which is generally monthly. 
 Payment Technology Solutions 
 Payment technology solutions revenue represents transaction-based fees for technology-driven payment solutions primarily for walk-in, lockbox, interactive voice recognition, and online bill payments through Busey Bank’s subsidiary, FirsTech. Revenue is recognized when the performance obligation is completed, which is generally monthly. 
 Fees for Customer Services 
 Fees for customer services consist of time-based revenue from service fees for account maintenance, item-based revenue from fee-based activity, and transaction-based fee revenue. Revenue is recognized when the performance obligation is completed, which is generally monthly for account maintenance services, or when a transaction has been completed. Payments for such performance obligations are generally received at the time the performance obligations are satisfied. 
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 Reclassifications 
 Reclassifications have been made to certain prior year account balances, with no effect on net income or stockholders’ equity, to be consistent with the classifications adopted as of and for the year ended December 31, 2024. 
 Impact of Recently Adopted Accounting Standards 
 In November 2023, the FASB issued ASU 2023‑07 “ Segment Reporting (Topic 820): Improvements to Reportable Segment Disclosures ” requiring enhanced disclosures related to significant segment expenses. This standard was adopted on a retrospective basis beginning with the annual reporting period ending December 31, 2024. Adoption of this standard did not have a material impact on Busey’s financial position or results of operations, but resulted in enhanced disclosures. 
 In March 2023, the FASB issued ASU 2023‑02 “Investments—Equity Method and Joint Ventures (Topic 323),” permitting an election to use the proportional amortization method to account for equity investments made primarily for the purpose of receiving income tax credits and other income tax benefits, regardless of the tax credit program from which the income tax credits are received, provided that certain conditions are met. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense. Busey adopted this standard on a modified retrospective basis on January 1, 2024. Upon adoption, Busey recorded an after-tax decrease to retained earnings of $ 1.4 million for the cumulative effect of adopting ASU 2023‑02. This transition adjustment included a $ 2.4 million decrease in other assets, a $ 0.5 million decrease in other liabilities, and a $ 0.5 million increase in deferred tax assets. 
 In March 2023, the FASB issued ASU 2023‑01 “ Leases (Topic 842): Common Control Arrangements ,” which requires amortization over the useful life of leasehold improvements (not the lease term) when the lease is between entities under common control, and any value of such leasehold improvements remaining at the end of the lease term is to be accounted for as a transfer between entities under common control. Busey adopted this standard on a prospective basis on January 1, 2024. Adoption of this standard did not have a material impact on Busey’s financial position or results of operations. 
 In June 2022, the FASB issued ASU 2022-03 “Fair Value Measurements (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions,” which clarifies that contractual restrictions on the sale of equity securities are not considered in measuring the fair value of those equity securities, and further that contractual sale restrictions cannot be recognized and measured as a separate unit of account. Busey adopted this standard on a prospective basis on January 1, 2024. Adoption of this standard did not have a material impact on Busey’s financial position or results of operations. 
 Recently Issued Accounting Standards Not Yet Adopted 
 In November 2024, the FASB issued ASU 2024-04 “ Debt—Debt with Conversion and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments ” to clarify when certain settlements of convertible debt instruments should be accounted for as an induced conversion. The amendments in this update may be applied on either a prospective or retrospective basis and will be effective for Busey for annual and interim reporting periods beginning January 1, 2026. Because Busey does not currently have any convertible debt, the Company does not expect adoption of this ASU to have any impact on its financial position or results of operations. 
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 In March 2024, the FASB issued ASU 2024-01 “ Compensation-Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards ” to clarify that certain “profits interests” are within the scope of Topic 718 by amending the language and providing illustrative examples on how the scope guidance in paragraph 718-10-15-3 should be applied. This update is intended to improve clarity of the accounting standards codification, not to change the guidance. This update may be applied on a retrospective or prospective basis and will be effective for Busey for annual and interim reporting periods beginning January 1, 2025. Early adoption is permitted. Busey does not currently have any Profit Interest and Similar Awards, so does not expect adoption of this ASU to have any impact on its financial position and results of operations. 
 In December 2023, the FASB issued ASU 2023‑09 “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures ,” which requires more detailed disclosures of income taxes paid net of refunds received, income from continuing operations before income tax expense or benefit, and income tax expense from continuing operations. This standard is to be applied on a prospective basis, with retrospective application permitted, and will be effective for Busey for annual reporting periods beginning with the fiscal year ending December 31, 2025. Busey does not expect adoption of this ASU to have a material impact on its financial position or results of operations. 
 In October 2023, the FASB issued ASU 2023‑06 “ Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative ” which aligns certain GAAP disclosure requirements with the SEC’s disclosure requirements, in order to better facilitate comparisons between entities that are subject to the SEC’s existing disclosures with entities that were not previously subject to the SEC’s requirements. Amendments in this update should be applied prospectively, and the effective date for Busey for each amendment in this ASU will be the date on which the SEC removes the related disclosure from Regulation S‑X or Regulation S‑K. Early adoption is prohibited. If the SEC has not removed the related disclosures from Regulation S‑X or Regulation S‑K by June 30, 2027, the pending content of this update will be removed from the ASC and will not become effective for any entity. Busey does not expect adoption of this ASU to have a material impact on its financial position or results of operations. 
 Subsequent Events 
 Busey has evaluated subsequent events for potential recognition and/or disclosure through the date the Consolidated Financial Statements included in this Annual Report on Form 10‑K were issued. Busey issued a For m 8 ‑ K o n February 21, 2025 , regarding the departure of a named executive officer, and during the first quarter of 2025 expects to record related severance expenses according to Schedule 1 of the Separation Letter that was fi led as Exhibit 10.1 to the Form 8‑K. Other than this, there were no significant subsequent events for the year ended December 31, 2024, through the filing date of these Consolidated Financial Statements . 
 
 NOTE 2. MERGERS AND ACQUISITIONS 
 CrossFirst Bankshares, Inc. 
 On August 26, 2024, First Busey Corporation and CrossFirst, a Kansas corporation, entered into a definitive agreement pursuant to which Busey will acquire CrossFirst and its wholly-owned subsidiary CrossFirst Bank, through a merger transaction. This partnership will create a premier commercial bank in the Midwest, Southwest, and Florida, with 77 full-service locations across 10 states—Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas—and approximately $ 20 billion in combined assets, $ 17 billion in total deposits, $ 14 billion in total loans, and $ 14 billion in wealth assets under care. 
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 Under the terms of the merger agreement, CrossFirst stockholders will have the right to receive for each share of CrossFirst common stock 0.6675 of a share of Busey’s common stock with a cash payment in lieu of any fractional shares, and for each share of CrossFirst Series A Perpetual Preferred Stock one share of a newly created series of Busey preferred stock or, at the election of Busey, an amount of cash equal to the liquidation preference thereof, plus any unpaid dividends thereon through the effective time of the merger. 
 On December 20, 2024, Busey and CrossFirst stockholders voted to approve the merger. On January 16, 2025, Busey received regulatory approval from the Board of Governors of the Federal Reserve System for the merger. The transaction has also been approved by the Illinois Department of Financial and Professional Regulation and the Kansas Office of the State Bank Commissioner. Busey and CrossFirst intend to close the merger on March 1, 2025, subject to the satisfaction of the remaining customary closing conditions. It is anticipated that CrossFirst Bank will merge with and into Busey Bank in mid-2025. At the time of the bank merger, CrossFirst Bank locations will become banking centers of Busey Bank. 
 In connection with the CrossFirst merger, Busey incurred one-time pretax acquisition-related expenses of $ 3.9 million in 2024, which are reported as components of noninterest expense on the accompanying Consolidated Statements of Income . Of this amount, $ 3.1 million represents legal, professional, and consulting fees incurred to consummate the acquisition, with the remainder of the expenses comprised primarily of marketing, consulting, and travel expenses. 
 For further details on the merger, see the 8-K announcing the merger filed with the SEC on August 27, 2024. 
 Merchants and Manufacturers Bank Corporation 
 On April 1, 2024, Busey completed its acquisition of M&M and its wholly-owned subsidiary, M&M Bank, through a merger transaction. This partnership added M&M’s Life Equity Loan ® products to Busey’s existing suite of services and expanded Busey’s presence in the suburban Chicago market. M&M’s results of operations were included in Busey’s results of operation beginning April 1, 2024. 
 Merger of M&M Bank into Busey Bank 
 Busey operated M&M Bank as a separate banking subsidiary of Busey until it was merged with Busey Bank on June 21, 2024. At the time of the bank merger, M&M Bank’s banking centers became banking centers of Busey Bank, except for M&M’s banking center located at 990 Essington Rd., Joliet, Illinois, which was closed in connection with the bank merger. 
 Merger Consideration 
 At the effective time of the Merger, each share of M&M common stock converted to the right to receive, at the election of each stockholder and subject to proration and adjustment as provided in the Merger Agreement, either (1) $ 117.74 in cash (“Cash Election”), (2) 5.7294 shares of Busey common stock (“Share Election”), or (3) mixed consideration of $ 34.55 in cash and 4.0481 shares of Busey common stock (“Mixed Election”). 
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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Most of the M&M common stockholders who submitted an election form by the election deadline made the Share Election to receive their Merger consideration solely in the form of shares of Busey common stock. As a result of the elections of M&M common stockholders, and in accordance with the proration and adjustment provisions of the Merger Agreement, the Merger consideration paid to M&M common stockholders was comprised of an aggregate of 1,429,304 shares of Busey common stock and an aggregate of $ 12.2 million in cash, allocated as follows for each share of M&M stock: (1) $ 117.74 in cash for the Cash Election, (2) $ 5.3966 in cash and 5.4668 shares of Busey common stock for the Share Election, and (3) $ 34.55 in cash and 4.0481 shares of Busey common stock for the Mixed Election. Pursuant to the terms of the Merger Agreement, M&M common stockholders that did not make an election or submit a properly completed election form by the election deadline of March 29, 2024, received cash consideration of $ 117.74 for each share of M&M common stock held. No fractional shares of Busey common stock were issued in the Merger. Fractional shares were paid in cash at the rate of $ 23.32 per share. 
 Additional Merger consideration of $ 3.0 million was paid to redeem 300 shares of M&M preferred stock. 
 Acquisition Accounting 
 This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on April 1, 2024, the date of acquisition. Fair values, including initial accounting for deferred taxes, are subject to refinement for up to one year after the closing date as additional information regarding the closing date fair values becomes available. Fair value adjustments totaling $ 0.4 million were recorded during the year ended December 31, 2024, as additional information became available regarding unrecorded assets and liabilities. Busey does not expect any further adjustments will be necessary. 
 As the total consideration paid for M&M exceeded the estimated fair value of net assets acquired, goodwill of $ 15.8 million was recorded as a result of the acquisition. Goodwill recorded for this transaction reflects synergies expected from the acquisition and expansion within the Chicago metropolitan market, and was assigned to the Banking operating segment. None of the goodwill recognized in the M&M acquisition is expected to be tax deductible. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Acquisition Date Fair Values 
 Estimated acquisition-date fair values of the assets acquired and liabilities assumed, as well as the fair value of consideration transferred, were as follows (dollars in thousands) : 
 
 April 1, 2024 
 Assets acquired 
 Cash and cash equivalents $ 33,577 
 Securities 8,086 
 Portfolio loans, net of ACL 417,230 
 Premises and equipment 2,045 
 Right of use assets 253 
 Other intangible assets 6,346 
 Other assets 10,283 
 Total assets acquired 477,820 
 
 Liabilities assumed 
 Deposits 392,838 
 Short-term borrowings 35,932 
 Long-term debt 1,450 
 Subordinated notes, net of unamortized issuance costs 3,911 
 Junior subordinated debt owed to unconsolidated trusts 2,594 
 Lease liabilities 253 
 Other liabilities 7,089 
 Total liabilities assumed 444,067 
 
 Net assets acquired $ 33,753 
 
 Consideration paid 
 Cash $ 15,200 
 Common stock 34,375 
 Total consideration paid $ 49,575 
 
 Goodwill $ 15,822 

 Loans Purchased with Credit Deterioration 
 A small portion of the acquired loans were PCD. The following table provides a reconciliation between the purchase price and the fair value of these loans (dollars in thousands) : 
 
 As of April 1, 2024 
 PCD Financial Assets 
 Gross contractual receivable for PCD financial assets $ 29,290 
 ACL recorded for estimated uncollectible contractual cash flows specific to PCD financial assets ( 1,243 ) 
 Interest premium (discount) specific to PCD financial assets ( 1,773 ) 
 Fair value of PCD financial assets $ 26,274 

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 Pro Forma Results 
 The following table provides the unaudited pro forma information for the results of operations for the years ended December 31, 2024 and 2023, as if the acquisition had occurred January 1, 2023. The pro forma results combine the historical results of M&M into Busey’s Consolidated Statements of Income, including the impact of purchase accounting adjustments such as loan discount accretion, intangible assets amortization, and deposit accretion, net of taxes. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2023. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, expense efficiencies, or asset dispositions. Only the merger related expenses that have been recognized are included in net income in the table below (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 
 Revenue (net interest income plus noninterest income) $ 468,401 $ 466,973 
 Net income 115,530 130,483 
 Diluted earnings per common share 2.00 2.26 

 Other Acquisition Costs 
 In connection with the M&M acquisition, Busey incurred $ 3.0 million in pre-tax acquisition expenses during the year ended December 31, 2024, which are reported as components of noninterest expense on the accompanying Consolidated Statements of Income . Of this amount, $ 0.1 million represents legal, professional, and consulting fees incurred to consummate the acquisition, with the remainder of the expenses comprised primarily of salaries, wages and employee benefits; data processing; and other professional fees. 
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 NOTE 3. DEBT SECURITIES 
 Busey's portfolio of debt securities includes both available for sale and held to maturity securities. 
 The tables below provides the amortized cost, unrealized and unrecognized gains and losses, and fair values of debt securities, summarized by major category (dollars in thousands) : 
 
 As of December 31, 2024 
 Amortized
Cost Unrealized Fair
Value 
 Gross Gains Gross Losses 
 Debt securities available for sale 
 
 
 Obligations of U.S. government corporations and agencies 
 $ 1,408 $ — $ ( 8 ) $ 1,400 
 Obligations of states and political subdivisions 1 
 156,534 31 ( 16,736 ) 139,829 
 Asset-backed securities 1 
 336,379 181 ( 3 ) 336,557 
 Commercial mortgage-backed securities 
 107,305 — ( 15,131 ) 92,174 
 Residential mortgage-backed securities 
 1,279,090 19 ( 191,899 ) 1,087,210 
 Corporate debt securities 
 159,236 363 ( 6,548 ) 153,051 
 Total debt securities available for sale 
 $ 2,039,952 $ 594 $ ( 230,325 ) $ 1,810,221 

 
 
 Amortized
Cost Unrecognized Fair
Value 
 Gross Gains Gross Losses 
 Debt securities held to maturity 
 
 Commercial mortgage-backed securities 
 $ 415,530 $ — $ ( 77,242 ) $ 338,288 
 Residential mortgage-backed securities 
 411,100 — ( 74,335 ) 336,765 
 Total debt securities held to maturity 
 $ 826,630 $ — $ ( 151,577 ) $ 675,053 

 ___________________________________________ 
 1. Includes securities marked at par, with no gain or loss to report. 
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 As of December 31, 2023 
 Amortized
Cost Unrealized Fair
Value 
 Gross Gains Gross Losses 
 Debt securities available for sale 
 
 U.S. Treasury securities 
 $ 16,031 $ — $ ( 85 ) $ 15,946 
 Obligations of U.S. government corporations and agencies 
 5,889 1 ( 58 ) 5,832 
 Obligations of states and political subdivisions 1 
 190,819 52 ( 18,026 ) 172,845 
 Asset-backed securities 
 470,046 — ( 1,823 ) 468,223 
 Commercial mortgage-backed securities 
 119,044 — ( 15,535 ) 103,509 
 Residential mortgage-backed securities 
 1,306,854 5 ( 195,547 ) 1,111,312 
 Corporate debt securities 
 225,947 128 ( 16,171 ) 209,904 
 Total debt securities available for sale 
 $ 2,334,630 $ 186 $ ( 247,245 ) $ 2,087,571 

 
 
 Amortized
Cost Unrecognized Fair
Value 
 Gross Gains Gross Losses 
 Debt securities held to maturity 
 
 Commercial mortgage-backed securities 
 $ 428,526 $ — $ ( 71,000 ) $ 357,526 
 Residential mortgage-backed securities 
 444,102 — ( 71,231 ) 372,871 
 Total debt securities held to maturity 
 $ 872,628 $ — $ ( 142,231 ) $ 730,397 

 ___________________________________________ 
 1. Includes securities marked at par, with no gain or loss to report. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Amortized cost and fair value of debt securities, by contractual maturity or pre-refunded date, are shown below. Mortgages underlying mortgage-backed securities and asset-backed securities may be called or prepaid; therefore, actual maturities could differ from the contractual maturities. All mortgage-backed securities were issued by U.S. government corporations and agencies (dollars in thousands) : 
 
 As of December 31, 2024 
 Amortized
Cost Fair
Value 
 Debt securities available for sale 
 Due in one year or less $ 91,497 $ 90,406 
 Due after one year through five years 110,271 104,914 
 Due after five years through ten years 518,414 495,024 
 Due after ten years 1,319,770 1,119,877 
 Debt securities available for sale $ 2,039,952 $ 1,810,221 
 
 Debt securities held to maturity 
 Due in one year or less $ 18,628 $ 18,327 
 Due after one year through five years 62,119 58,733 
 Due after five years through ten years 14,689 12,609 
 Due after ten years 731,194 585,384 
 Debt securities held to maturity $ 826,630 $ 675,053 

 Realized gains and losses related to sales and calls of debt securities available for sale are summarized as follows (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Realized gains and losses on debt securities 
 Gross gains on debt securities $ 1 $ 20 $ 115 
 Gross (losses) on debt securities ( 7,034 ) ( 5,523 ) ( 89 ) 
 Realized net gains (losses) on debt securities 1 
 $ ( 7,033 ) $ ( 5,503 ) $ 26 

 ___________________________________________ 
 1. Net gains (losses) on sales of securities reported on the Consolidated Statements of Income include the sale of equity securities, excluded in this table. 
 Debt securities with carrying amounts of $ 871.4 million on December 31, 2024, and $ 837.4 million on December 31, 2023, were pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes as required. 
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 The following information pertains to debt securities with gross unrealized or unrecognized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (dollars in thousands) : 
 
 As of December 31, 2024 
 Less than 12 months 12 months or more Total 
 Fair
Value Unrealized
Losses Fair
Value Unrealized
Losses Fair
Value Unrealized
Losses 
 Debt securities available for sale 
 
 Obligations of U.S. government corporations and agencies $ — $ — $ 1,328 $ ( 8 ) $ 1,328 $ ( 8 ) 
 Obligations of states and political subdivisions 11,234 ( 209 ) 119,723 ( 16,527 ) 130,957 ( 16,736 ) 
 Asset-backed securities 14,997 ( 3 ) — — 14,997 ( 3 ) 
 Commercial mortgage-backed securities 6,238 ( 42 ) 85,936 ( 15,089 ) 92,174 ( 15,131 ) 
 Residential mortgage-backed securities 152,081 ( 640 ) 930,642 ( 191,259 ) 1,082,723 ( 191,899 ) 
 Corporate debt securities 598 ( 1 ) 143,966 ( 6,547 ) 144,564 ( 6,548 ) 
 Debt securities available for sale with gross unrealized losses $ 185,148 $ ( 895 ) $ 1,281,595 $ ( 229,430 ) $ 1,466,743 $ ( 230,325 ) 

 
 
 12 months or more Total 
 Fair
Value Unrecognized
Losses Fair
Value Unrecognized
Losses 
 Debt securities held to maturity 
 Commercial mortgage-backed securities $ 338,288 $ ( 77,242 ) $ 338,288 $ ( 77,242 ) 
 Residential mortgage-backed securities 336,765 ( 74,335 ) 336,765 ( 74,335 ) 
 Debt securities held to maturity with gross unrecognized losses $ 675,053 $ ( 151,577 ) $ 675,053 $ ( 151,577 ) 

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 As of December 31, 2023 
 Less than 12 months 12 months or more Total 
 Fair
Value Unrealized
Losses Fair
Value Unrealized
Losses Fair
Value Unrealized
Losses 
 Debt securities available for sale 
 
 U.S. Treasury securities 
 $ — $ — $ 15,946 $ ( 85 ) $ 15,946 $ ( 85 ) 
 Obligations of U.S. government corporations and agencies 
 — — 5,709 ( 58 ) 5,709 ( 58 ) 
 Obligations of states and political subdivisions 
 11,442 ( 54 ) 146,797 ( 17,972 ) 158,239 ( 18,026 ) 
 Asset-backed securities 
 — — 468,223 ( 1,823 ) 468,223 ( 1,823 ) 
 Commercial mortgage-backed securities 
 — — 103,509 ( 15,535 ) 103,509 ( 15,535 ) 
 Residential mortgage-backed securities 
 141 ( 1 ) 1,110,906 ( 195,546 ) 1,111,047 ( 195,547 ) 
 Corporate debt securities 
 1,450 ( 10 ) 198,694 ( 16,161 ) 200,144 ( 16,171 ) 
 Debt securities available for sale with gross unrealized losses 
 $ 13,033 $ ( 65 ) $ 2,049,784 $ ( 247,180 ) $ 2,062,817 $ ( 247,245 ) 

 
 
 12 months or more Total 
 Fair
Value Unrecognized
Losses Fair
Value Unrecognized
Losses 
 Debt securities held to maturity 
 Commercial mortgage-backed securities $ 357,526 $ ( 71,000 ) $ 357,526 $ ( 71,000 ) 
 Residential mortgage-backed securities 372,871 ( 71,231 ) 372,871 ( 71,231 ) 
 Debt securities held to maturity with gross unrecognized losses $ 730,397 $ ( 142,231 ) $ 730,397 $ ( 142,231 ) 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Additional information about debt securities in an unrealized or unrecognized loss position is presented in the tables below (dollars in thousands) : 
 
 As of December 31, 2024 
 Available for Sale Held to Maturity Total 
 Debt securities with gross unrealized or unrecognized losses, fair value $ 1,466,743 $ 675,053 $ 2,141,796 
 Gross unrealized or unrecognized losses on debt securities 230,325 151,577 381,902 
 Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses 15.7 % 22.5 % 17.8 % 
 
 Count of debt securities 677 55 732 
 Count of debt securities in an unrealized or unrecognized loss position 586 55 641 

 
 As of December 31, 2023 
 Available for Sale Held to Maturity Total 
 Debt securities with gross unrealized or unrecognized losses, fair value $ 2,062,817 $ 730,397 $ 2,793,214 
 Gross unrealized or unrecognized losses on debt securities 247,245 142,231 389,476 
 Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses 12.0 % 19.5 % 13.9 % 
 
 Count of debt securities 835 55 890 
 Count of debt securities in an unrealized or unrecognized loss position 779 55 834 

 Unrealized and unrecognized losses were related to changes in market interest rates and market conditions that do not represent credit-related impairments. Unless part of a corporate strategy or restructuring plan, Busey does not intend to sell securities that are in an unrealized or unrecognized loss position, and it is more likely than not that Busey will recover the amortized cost prior to being required to sell the debt securities. Full collection of the amounts due according to the contractual terms of the debt securities is expected; therefore, no ACL was recorded in relation to debt securities, and the impairment related to noncredit factors on debt securities available for sale is recognized in AOCI, net of applicable taxes. As of December 31, 2024, Busey did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of Busey’s stockholders’ equity. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 4. PORTFOLIO LOANS 
 Loan Categories 
 Busey’s lending can be summarized into two primary categories: commercial and retail. Loans within these categories are further classified by lending activity: C&I and other commercial, CRE, real estate construction, retail real estate, and retail other. Distributions of the loan portfolio by loan category and lending activity is presented in the following table (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Commercial loans 
 C&I and other commercial $ 1,904,515 $ 1,835,994 
 CRE 3,269,564 3,337,337 
 Real estate construction 378,209 461,717 
 Total commercial loans 5,552,288 5,635,048 
 Retail loans 
 Retail real estate 1,696,457 1,720,455 
 Retail other 448,342 295,531 
 Total retail loans 2,144,799 2,015,986 
 
 Total portfolio loans 7,697,087 7,651,034 
 ACL ( 83,404 ) ( 91,740 ) 
 Portfolio loans, net $ 7,613,683 $ 7,559,294 

 Net deferred loan origination costs included in the balances above were $ 12.5 million as of December 31, 2024, compared to $ 13.5 million as of December 31, 2023. Net accretable purchase accounting adjustments included in the balances above reduced loans by $ 8.8 million as of December 31, 2024, and by $ 4.5 million as of December 31, 2023. 
 Busey elected to purchase $ 6.9 million of retail real estate loans during the year ended December 31, 2024, and did not purchase any retail real estate loans during the years ended December 31, 2023 or 2022. 
 Pledged Loans 
 The principal balance of loans Busey has pledged as collateral to the FHLB and Federal Reserve Bank for liquidity as set forth in the table below (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Pledged loans 
 FHLB $ 4,813,600 $ 4,865,481 
 Federal Reserve Bank 765,824 722,914 
 Total pledged loans $ 5,579,424 $ 5,588,395 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Risk Grading 
 Busey utilizes a loan grading scale to assign a risk grade to all of its loans. A description of the general characteristics of each grade is as follows: 
 • Pass – This category includes loans that are all considered acceptable credits, ranging from investment or near investment grade, to loans made to borrowers who exhibit credit fundamentals that meet or exceed industry standards. 
 • Watch – This category includes loans that warrant a higher-than-average level of monitoring to ensure that weaknesses do not cause the inability of the credit to perform as expected. These loans are not necessarily a problem due to other inherent strengths of the credit, such as guarantor strength, but have above average concern and monitoring. 
 • Special mention – This category is for “Other Assets Specially Mentioned” loans that have potential weaknesses, which may, if not checked or corrected, weaken the asset, or inadequately protect Busey’s credit position at some future date. 
 • Substandard – This category includes “Substandard” loans, determined in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Busey will sustain some loss if the deficiencies are not corrected. 
 • Substandard non-accrual – This category includes loans that have all the characteristics of a “Substandard” loan with additional factors that make collection in full highly questionable and improbable. Such loans are placed on non-accrual status and may be dependent on collateral with a value that is difficult to determine. 
 All loans are graded at their inception. Commercial lending relationships that are $ 1.0 million or less are usually processed through an expedited underwriting process. Most commercial loans greater than $ 1.0 million are included in a portfolio review at least annually. Commercial loans greater than $ 0.35 million that have a grading of special mention or worse are typically reviewed on a quarterly basis. Interim reviews may take place if circumstances of the borrower warrant a more frequent review. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 The following table is a summary of risk grades segregated by category of portfolio loans (dollars in thousands) : 
 
 As of December 31, 2024 
 Pass Watch Special
Mention Substandard Substandard
Non-accrual Total 
 Commercial loans 
 C&I and other commercial $ 1,545,338 $ 281,424 $ 36,152 $ 37,749 $ 3,852 $ 1,904,515 
 CRE 2,744,018 438,945 55,041 16,507 15,053 3,269,564 
 Real estate construction 345,908 26,833 221 5,224 23 378,209 
 Total commercial loans 4,635,264 747,202 91,414 59,480 18,928 5,552,288 
 Retail loans 
 Retail real estate 1,680,640 9,408 882 2,543 2,984 1,696,457 
 Retail other 448,166 — — — 176 448,342 
 Total retail loans 2,128,806 9,408 882 2,543 3,160 2,144,799 
 Total portfolio loans $ 6,764,070 $ 756,610 $ 92,296 $ 62,023 $ 22,088 $ 7,697,087 

 
 As of December 31, 2023 
 Pass Watch Special
Mention Substandard Substandard
Non-accrual Total 
 Commercial loans 
 C&I and other commercial $ 1,462,755 $ 296,416 $ 46,488 $ 27,733 $ 2,602 $ 1,835,994 
 CRE 2,827,030 431,427 48,545 29,492 843 3,337,337 
 Real estate construction 448,011 8,135 — 5,327 244 461,717 
 Total commercial loans 4,737,796 735,978 95,033 62,552 3,689 5,635,048 
 Retail loans 
 Retail real estate 1,702,897 11,144 1,024 1,795 3,595 1,720,455 
 Retail other 295,374 — — — 157 295,531 
 Total retail loans 1,998,271 11,144 1,024 1,795 3,752 2,015,986 
 Total portfolio loans $ 6,736,067 $ 747,122 $ 96,057 $ 64,347 $ 7,441 $ 7,651,034 

 Risk grades of portfolio loans and net charge-offs are presented in the tables below by loan class, further sorted by origination year (dollars in thousands) : 
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 FIRST BUSEY CORPORATION 
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 As of and For The Year Ended December 31, 2024 
 Term Loans Amortized Cost Basis by Origination Year Revolving
Loans Total 
 Risk Grade Ratings 2024 2023 2022 2021 2020 Prior 
 C&I and other commercial 
 Pass $ 320,831 $ 147,909 $ 163,870 $ 125,053 $ 74,146 $ 117,234 $ 596,295 $ 1,545,338 
 Watch 38,734 49,394 44,709 16,393 2,175 20,964 109,055 281,424 
 Special Mention 1,718 2,293 5,658 2,634 106 2,540 21,203 36,152 
 Substandard 15,186 6,545 788 591 320 2,424 11,895 37,749 
 Substandard non-accrual 65 141 464 — 42 852 2,288 3,852 
 Total C&I and other commercial 376,534 206,282 215,489 144,671 76,789 144,014 740,736 1,904,515 
 Gross charge-offs $ — $ 14,980 $ 148 $ 22 $ — $ 303 $ — $ 15,453 
 
 CRE 
 Pass 291,503 354,591 755,266 645,994 356,867 314,340 25,457 2,744,018 
 Watch 115,078 132,900 60,611 62,408 28,320 38,733 895 438,945 
 Special Mention 39,252 643 8,020 1,395 4,165 1,517 49 55,041 
 Substandard 6,983 355 4,628 50 95 4,346 50 16,507 
 Substandard non-accrual 15,000 39 — — 14 — — 15,053 
 Total CRE 467,816 488,528 828,525 709,847 389,461 358,936 26,451 3,269,564 
 Gross charge-offs — — — 2,999 — 315 — 3,314 
 
 Real estate construction 
 Pass 159,825 134,450 12,205 24,781 2,213 1,124 11,310 345,908 
 Watch 20,170 6,455 — 208 — — — 26,833 
 Special Mention — — — 221 — — — 221 
 Substandard 5,224 — — — — — — 5,224 
 Substandard non-accrual — — — 23 — — — 23 
 Total real estate construction 185,219 140,905 12,205 25,233 2,213 1,124 11,310 378,209 
 
 
 Retail real estate 
 Pass 101,582 237,306 366,820 354,380 147,236 267,431 205,885 1,680,640 
 Watch 1,255 550 2,733 3,377 872 124 497 9,408 
 Special Mention 151 — 344 — — 372 15 882 
 Substandard — 243 1,018 503 — 776 3 2,543 
 Substandard non-accrual — — 344 91 152 1,526 871 2,984 
 Total retail real estate 102,988 238,099 371,259 358,351 148,260 270,229 207,271 1,696,457 
 Gross charge-offs — — — — — 168 — 168 
 
 Retail other 
 Pass 4,996 55,665 57,944 12,207 2,304 589 314,461 448,166 
 
 
 
 Substandard non-accrual — 94 67 4 — 11 — 176 
 Total retail other 4,996 55,759 58,011 12,211 2,304 600 314,461 448,342 
 Gross charge-offs 9 31 106 78 4 403 — 631 
 
 Total portfolio loans $ 1,137,553 $ 1,129,573 $ 1,485,489 $ 1,250,313 $ 619,027 $ 774,903 $ 1,300,229 $ 7,697,087 
 Total gross charge-offs $ 9 $ 15,011 $ 254 $ 3,099 $ 4 $ 1,189 $ — $ 19,566 

 
 
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 As of and For The Year Ended December 31, 2023 
 Term Loans Amortized Cost Basis by Origination Year Revolving
Loans Total 
 Risk Grade Ratings 2023 2022 2021 2020 2019 Prior 
 C&I and other commercial 
 Pass $ 306,578 $ 220,847 $ 159,130 $ 71,025 $ 35,927 $ 143,078 $ 526,170 $ 1,462,755 
 Watch 78,603 65,703 21,421 23,919 7,035 21,293 78,442 296,416 
 Special Mention 792 8,224 2,917 1,076 686 3,274 29,519 46,488 
 Substandard 8,715 765 942 426 3,734 1,859 11,292 27,733 
 Substandard non-accrual 166 — 117 84 128 407 1,700 2,602 
 Total C&I and other commercial 394,854 295,539 184,527 96,530 47,510 169,911 647,123 1,835,994 
 Gross charge-offs $ 284 $ — $ 420 $ — $ 316 $ 1,409 $ — $ 2,429 
 
 CRE 
 Pass 395,644 824,506 720,052 399,195 271,078 199,662 16,893 2,827,030 
 Watch 166,795 47,070 92,848 34,010 68,196 19,396 3,112 431,427 
 Special Mention 14,313 10,507 12,446 4,968 3,297 3,014 — 48,545 
 Substandard 1,796 188 18,862 2,938 1,802 3,856 50 29,492 
 Substandard non-accrual 47 79 85 23 — 609 — 843 
 Total CRE 578,595 882,350 844,293 441,134 344,373 226,537 20,055 3,337,337 
 Gross charge-offs — — — — — 953 — 953 
 
 Real estate construction 
 Pass 204,952 128,462 85,086 2,616 1,323 2,934 22,638 448,011 
 Watch 2,859 4,406 507 322 41 — — 8,135 
 
 Substandard 5,327 — — — — — — 5,327 
 Substandard non-accrual — — — — — 244 — 244 
 Total real estate construction 213,138 132,868 85,593 2,938 1,364 3,178 22,638 461,717 
 
 
 Retail real estate 
 Pass 243,400 376,922 411,723 156,762 70,099 256,571 187,420 1,702,897 
 Watch 1,096 4,137 2,442 954 536 234 1,745 11,144 
 Special Mention 286 358 — — — 380 — 1,024 
 Substandard 69 72 292 49 80 997 236 1,795 
 Substandard non-accrual — 528 121 267 100 1,960 619 3,595 
 Total retail real estate 244,851 382,017 414,578 158,032 70,815 260,142 190,020 1,720,455 
 Gross charge-offs — 5 — 29 72 301 — 407 
 
 Retail other 
 Pass 88,885 92,931 23,019 6,701 4,597 854 78,387 295,374 
 
 
 
 Substandard non-accrual — 93 62 — — 2 — 157 
 Total retail other 88,885 93,024 23,081 6,701 4,597 856 78,387 295,531 
 Gross charge-offs 5 71 172 5 3 373 — 629 
 
 Total portfolio loans $ 1,520,323 $ 1,785,798 $ 1,552,072 $ 705,335 $ 468,659 $ 660,624 $ 958,223 $ 7,651,034 
 Total gross charge-offs $ 289 $ 76 $ 592 $ 34 $ 391 $ 3,036 $ — $ 4,418 

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 FIRST BUSEY CORPORATION 
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 Past Due and Non-Accrual Loans 
 An analysis of the amortized cost basis of portfolio loans that are past due and still accruing, or on non-accrual status, is as follows (dollars in thousands) : 
 
 As of December 31, 2024 
 Loans past due, still accruing Non-accrual
Loans 
 30-59 Days 60-89 Days 90+Days 
 Commercial loans 
 C&I and other commercial $ 95 $ — $ — $ 3,852 
 CRE 42 2,759 — 15,053 
 Real estate construction 41 — — 23 
 Past due and non-accrual commercial loans 178 2,759 — 18,928 
 Retail loans 
 Retail real estate 3,280 683 1,115 2,984 
 Retail other 1,094 130 34 176 
 Past due and non-accrual retail loans 4,374 813 1,149 3,160 
 Total past due and non-accrual loans $ 4,552 $ 3,572 $ 1,149 $ 22,088 

 
 As of December 31, 2023 
 Loans past due, still accruing Non-accrual
Loans 
 30-59 Days 60-89 Days 90+Days 
 Commercial loans 
 C&I and other commercial $ — $ 214 $ — $ 2,602 
 CRE 752 — — 843 
 Real estate construction 24 — — 244 
 Past due and non-accrual commercial loans 776 214 — 3,689 
 Retail loans 
 Retail real estate 2,781 927 366 3,595 
 Retail other 886 195 9 157 
 Past due and non-accrual retail loans 3,667 1,122 375 3,752 
 Total past due and non-accrual loans $ 4,443 $ 1,336 $ 375 $ 7,441 

 Gross interest income recorded on 90+ days past due loans, and that would have been recorded on non-accrual loans if they had been accruing interest in accordance with their original terms, was $ 0.9 million, $ 1.1 million, and $ 1.2 million for the years ended December 31, 2024, 2023, and 2022, respectively. Interest collected on those loans and recognized on a cash basis that was included in interest income was immaterial for the year ended December 31, 2024, and totaled $ 0.4 million for each of the years ended December 31, 2023, and 2022. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Loan Modifications for Borrowers Experiencing Financial Difficulty 
 The following tables present the amortized cost basis of loans that were modified—specifically in the form of (1) principal forgiveness, (2) an interest rate reduction, (3) an other-than-insignificant payment deferral, and/or (4) a term extension—for borrowers experiencing financial difficulty during the periods indicated, disaggregated by lending activity and the type of modification (dollars in thousands) : 
 
 Year Ended December 31, 2024 
 Payment Deferral 
 % of Total Class of Financing Receivable 1 
 Term Extension 
 % of Total Class of Financing Receivable 
 
 Modified Loans 
 
 C&I and other commercial 
 $ 325 — % $ 26,175 1.4 % 
 CRE 
 — — % 18,147 0.6 % 
 Real estate construction 
 — — % 5,224 1.4 % 
 
 
 Total of loans modified during the period 2 
 $ 325 — % $ 49,546 0.6 % 

 ___________________________________________ 
 1. Modified loans represent an insignificant portion of C&I and other commercial loans, rounding to zero percent. 
 2. Modifications include one loan on non-accrual status, and the remaining loans were classified as substandard. 
 
 Year Ended December 31, 2023 
 Interest Rate Reduction 1 
 % of Total Class of Financing Receivable 2 
 Term Extension 3 
 % of Total Class of Financing Receivable 2 
 
 Modified Loans 
 
 C&I and other commercial 
 $ — — % $ 16,586 0.9 % 
 CRE 
 872 — % 923 — % 
 Real estate construction 
 — — % 5,327 1.2 % 
 
 
 Total of loans modified during the period 4 
 $ 872 — % $ 22,836 0.3 % 

 ___________________________________________ 
 1. For one loan, the default rate was removed once forbearance was entered. 
 2. Modified loans represent an insignificant portion of CRE loans, rounding to zero percent. 
 3. Modifications to extend loan terms also included, in some cases, interest rate increases during the extension period. 
 4. Modifications include one loan on non-accrual status, and the remaining loans were classified as substandard. 
 The following table summarizes the effects of loan modifications made during the periods indicated for borrowers experiencing financial difficulty: 
 
 Years Ended December 31, 
 2024 2023 
 Weighted Average Term Extension 
 Weighted Average Interest Rate Reduction 
 Weighted Average Term Extension 
 
 Loan Modifications 
 
 C&I and other commercial 
 15.6 months 
 — % 18.1 months 
 
 CRE 
 3.8 months 
 2.50 % 21.0 months 
 
 Real estate construction 
 6.0 months 
 — % 12.0 months 
 
 
 
 Weighted average modifications 
 10.3 months 
 2.50 % 16.8 months 
 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Performance of Modified Loans 
 Busey closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the payment performance of loans modified during the last twelve months (dollars in thousands) : 
 
 As of December 31, 2024 
 Current 30-89 Days 90+ Days Non-accrual 
 Modified Loans 
 C&I and other commercial $ 26,500 $ — $ — $ — 
 CRE 3,147 — — 15,000 
 Real estate construction 5,224 — — — 
 
 
 Amortized cost of modified loans $ 34,871 $ — $ — $ 15,000 

 The following table provides the amortized cost basis of loans that had a payment default during the periods indicated, after having been modified during the 12 months before default for borrowers experiencing financial difficulty (dollars in thousands) . A default occurs when a loan is 90 days or more past due or transferred to non-accrual status. 
 
 Years Ended December 31, 
 2024 2023 
 Term Extension 
 Term Extension 
 Loans with Subsequent Defaults 
 
 C&I and other commercial 
 $ — $ 88 
 CRE 
 15,000 — 
 
 
 
 Amortized cost of modified loans with subsequent defaults 
 $ 15,000 $ 88 

 Collateral Dependent Loans 
 Management's evaluation as to the ultimate collectability of loans includes estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. Collateral dependent loans are loans in which repayment is expected to be provided solely by the underlying collateral and there are no other available and reliable sources of repayment. Loans are written down to the lower of cost or fair value of underlying collateral, less estimated costs to sell. Busey had $ 19.3 million and $ 6.1 million of collateral dependent loans secured by real estate or business assets as of December 31, 2024, and December 31, 2023, respectively. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Loans Evaluated Individually 
 Busey evaluates loans with disparate risk characteristics on an individual basis. The following tables provide details of loans evaluated individually, segregated by category and lending activity. The unpaid principal balance represents customer outstanding contractual principal balances excluding any partial charge-offs. Recorded investment represents the amortized cost of customer balances net of any partial charge-offs recognized on the loans. Average recorded investment is calculated using the most recent four quarters (dollars in thousands) : 
 
 As of December 31, 2024 
 Unpaid
Principal
Balance Recorded Investment Average
Recorded
Investment 
 With No
Allowance With
Allowance Total Related
Allowance 
 Loans evaluated individually 
 Commercial loans: 
 C&I and other commercial $ 7,127 $ 1,224 $ 2,456 $ 3,680 $ 1,840 $ 5,014 
 CRE 17,999 15,000 — 15,000 — 3,882 
 
 Commercial loans evaluated individually 25,126 16,224 2,456 18,680 1,840 8,896 
 Retail loans: 
 Retail real estate 1,152 1,128 — 1,128 — 276 
 
 Retail loans evaluated individually 1,152 1,128 — 1,128 — 276 
 Total loans evaluated individually $ 26,278 $ 17,352 $ 2,456 $ 19,808 $ 1,840 $ 9,172 

 
 As of December 31, 2023 
 Unpaid
Principal
Balance Recorded Investment Average
Recorded
Investment 
 With No
Allowance With
Allowance Total Related
Allowance 
 Loans evaluated individually 
 Commercial loans: 
 C&I and other commercial $ 7,283 $ 585 $ 1,785 $ 2,370 $ 785 $ 5,244 
 CRE 2,600 610 85 695 85 3,865 
 Real estate construction — — — — — 49 
 Commercial loans evaluated individually 9,883 1,195 1,870 3,065 870 9,158 
 Retail loans: 
 Retail real estate 213 61 25 86 25 790 
 
 Retail loans evaluated individually 213 61 25 86 25 790 
 Total loans evaluated individually $ 10,096 $ 1,256 $ 1,895 $ 3,151 $ 895 $ 9,948 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Allowance for Credit Losses 
 Management estimates the ACL balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The cumulative loss rate used as the basis for the estimate of credit losses is comprised of Busey’s historical loss experience beginning in 2010. Due to the continued economic uncertainty in the markets in which the Company operates, Busey will continue to utilize a forecast period of 12 months with an immediate reversion to historical loss rates beyond this forecast period in its ACL estimate. 
 The following table summarizes activity in the ACL attributable to each lending activity. Allocation of a portion of the ACL to one lending activity does not preclude its availability to absorb losses in other lending activities (dollars in thousands) : 
 
 C&I and Other Commercial CRE Real Estate
Construction Retail
Real Estate Retail Other Total 
 ACL Balance, December 31, 2021 $ 23,855 $ 38,249 $ 5,102 $ 17,589 $ 3,092 $ 87,887 
 
 
 Provision for credit losses 497 892 1,142 219 1,873 4,623 
 Charged-off ( 1,069 ) ( 1,375 ) ( 23 ) ( 251 ) ( 461 ) ( 3,179 ) 
 Recoveries 577 533 236 636 295 2,277 
 ACL balance, December 31, 2022 23,860 38,299 6,457 18,193 4,799 91,608 
 
 Provision for credit losses ( 727 ) ( 2,455 ) ( 1,465 ) 7,922 ( 876 ) 2,399 
 Charged-off ( 2,429 ) ( 953 ) — ( 407 ) ( 629 ) ( 4,418 ) 
 Recoveries 552 574 171 590 264 2,151 
 ACL balance, December 31, 2023 21,256 35,465 5,163 26,298 3,558 91,740 
 Day 1 PCD 1 
 824 322 — 96 1 1,243 
 Provision for credit losses 14,455 ( 318 ) ( 1,885 ) ( 3,031 ) ( 631 ) 8,590 
 Charged-off ( 15,453 ) ( 3,314 ) — ( 168 ) ( 631 ) ( 19,566 ) 
 Recoveries 507 146 67 516 161 1,397 
 ACL balance, December 31, 2024 $ 21,589 $ 32,301 $ 3,345 $ 23,711 $ 2,458 $ 83,404 

 __________________________________________ 
 1. The Day 1 PCD is attributable to the M&M acquisition, finalized April 1, 2024. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 The following tables present the ACL and amortized cost of portfolio loans by loan category and lending activity (dollars in thousands) : 
 
 As of December 31, 2024 
 Portfolio Loans ACL Attributed to Portfolio Loans 
 Collectively
Evaluated for
Impairment Individually
Evaluated for
Impairment Total Collectively
Evaluated for
Impairment Individually
Evaluated for
Impairment Total 
 Portfolio loans and related ACL 
 Commercial loans: 
 C&I and other commercial $ 1,900,835 $ 3,680 $ 1,904,515 $ 19,749 $ 1,840 $ 21,589 
 CRE 3,254,564 15,000 3,269,564 32,301 — 32,301 
 Real estate construction 378,209 — 378,209 3,345 — 3,345 
 Commercial loans and related ACL 5,533,608 18,680 5,552,288 55,395 1,840 57,235 
 Retail loans: 
 Retail real estate 1,695,329 1,128 1,696,457 23,711 — 23,711 
 Retail other 448,342 — 448,342 2,458 — 2,458 
 Retail loans and related ACL 2,143,671 1,128 2,144,799 26,169 — 26,169 
 Portfolio loans and related ACL $ 7,677,279 $ 19,808 $ 7,697,087 $ 81,564 $ 1,840 $ 83,404 

 
 As of December 31, 2023 
 Portfolio Loans ACL Attributed to Portfolio Loans 
 Collectively
Evaluated for
Impairment Individually
Evaluated for
Impairment Total Collectively
Evaluated for
Impairment Individually
Evaluated for
Impairment Total 
 Portfolio loans and related ACL 
 Commercial loans: 
 C&I and other commercial $ 1,833,624 $ 2,370 $ 1,835,994 $ 20,471 $ 785 $ 21,256 
 CRE 3,336,642 695 3,337,337 35,380 85 35,465 
 Real estate construction 461,717 — 461,717 5,163 — 5,163 
 Commercial loans and related ACL 5,631,983 3,065 5,635,048 61,014 870 61,884 
 Retail loans: 
 Retail real estate 1,720,369 86 1,720,455 26,273 25 26,298 
 Retail other 295,531 — 295,531 3,558 — 3,558 
 Retail loans and related ACL 2,015,900 86 2,015,986 29,831 25 29,856 
 Portfolio loans and related ACL $ 7,647,883 $ 3,151 $ 7,651,034 $ 90,845 $ 895 $ 91,740 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 5. OTHER REAL ESTATE OWNED AND OTHER REPOSSESSED ASSETS 
 OREO and other repossessed assets represent properties and other assets acquired through foreclosure or other proceedings in settlement of loans and is included in other assets in the accompanying Consolidated Balance Sheets . The following table summarizes the composition of Busey’s OREO and other repossessed asset balances as of the periods presented (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 OREO 
 
 Residential $ 63 $ 125 
 
 
 OREO and other repossessed assets $ 63 $ 125 

 The following table summarizes changes in the OREO and other repossessed assets balance (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 OREO and other repossessed assets at January 1 $ 125 $ 850 $ 4,416 
 Additions, transfers from loans 26 189 175 
 Sales ( 84 ) ( 770 ) ( 2,565 ) 
 Cash payments collected ( 4 ) ( 44 ) ( 565 ) 
 Impairment of OREO and other repossessed assets — ( 100 ) ( 611 ) 
 OREO and other repossessed assets at December 31 $ 63 $ 125 $ 850 

 Busey’s recorded investment in residential real estate loans that were in the process of foreclosure was $ 0.4 million as of December 31, 2024, and $ 0.3 million as of December 31, 2023. Busey follows Federal Housing Finance Agency guidelines on single-family foreclosures and real estate owned evictions on portfolio loans. 
 Busey incurs operating expenses for, and may have income from, OREO and other repossessed assets. Upon sale, Busey may recognize a gain or loss on the sale of OREO and other repossessed assets. The table below summarizes the effect of these activities, included in other expense on Busey’s Consolidated Statements of Income (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Activity for OREO and other repossessed assets 
 Net gain (loss) on sales $ 585 $ ( 54 ) $ ( 665 ) 
 Operating income (expense), net ( 17 ) ( 67 ) ( 248 ) 
 
 Activity for OREO and other repossessed assets $ 568 $ ( 121 ) $ ( 913 ) 

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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 6. PREMISES AND EQUIPMENT 
 Premises and equipment are summarized as follows (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Premises and equipment 
 Land and improvements $ 42,565 $ 43,076 
 Buildings and improvements 130,185 128,322 
 Furniture and equipment 53,945 51,077 
 Premises and equipment, gross 226,695 222,475 
 Accumulated depreciation 107,875 99,881 
 Premises and equipment, net $ 118,820 $ 122,594 

 Depreciation expense is presented in the table below for the periods indicated (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Depreciation expense $ 9,503 $ 9,488 $ 10,482 

 
 NOTE 7. LEASES 
 Busey as The Lessee 
 Busey has operating leases consisting primarily of equipment leases and real estate leases for banking centers, ATM locations, and office space. The following table summarizes lease related balances Busey reported in its Consolidated Balance Sheets for the periods presented (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Lease balances 
 Right of use assets $ 10,608 $ 11,027 
 Lease liabilities 11,040 11,308 
 
 Lease terms 
 Year through which lease terms extend 2039 2037 
 Weighted average remaining lease term 7.55 years 8.39 years 
 Weighted average discount rate 3.77 % 3.59 % 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 The following table presents lease costs, which are included in net occupancy and equipment expense on the Consolidated Statements of Income (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Lease costs 
 
 Operating lease costs 
 $ 2,352 $ 2,395 $ 2,495 
 Variable lease costs 
 58 38 365 
 Short-term lease costs 
 83 50 22 
 Total lease cost 
 $ 2,493 $ 2,483 $ 2,882 

 Cash paid for amounts included in the measurement of lease liabilities was as follows (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Cash flows related to leases 
 
 Operating lease cash flows – Fixed payments 
 $ 2,194 $ 2,290 $ 3,080 
 Operating lease cash flows – Liability reduction 
 1,798 1,883 2,285 
 Right of use assets obtained during the period in exchange for operating lease liabilities 1 
 1,579 231 6,206 

 ___________________________________________ 
 1. The year ended December 31, 2024, included $ 0.1 million right of use assets recognized in connection with the acquisition of M&M (see “ Note 2. Mergers and Acquisitions ” ), and an additional $ 0.7 million recognized in connection with a lease amendment that was executed subsequent to the acquisition of M&M for a lease that was obtained in the acquisition. 
 Busey was obligated under noncancelable operating leases for office space and other commitments. Future undiscounted lease payments with initial terms of one year or more, were as follows (dollars in thousands) : 
 
 As of 
December 31, 2024 
 Rent commitments 
 
 2025 $ 2,082 
 2026 1,774 
 2027 1,558 
 2028 1,495 
 2029 1,505 
 Thereafter 4,376 
 Total undiscounted cash flows 12,790 
 Less: Amounts representing interest 1,750 
 Present value of net future minimum lease payments $ 11,040 

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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Busey as The Lessor 
 Busey leases office and parking spaces to outside parties. Revenues recorded in connection with these leases, reported in other income on Busey’s Consolidated Statements of Income , are summarized as follows (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Rental income $ 820 $ 724 $ 707 

 Noncancellable terms for these leases, all of which are operating leases, extend through 2030. Under the terms of these lease agreements, Busey is entitled to receive aggregate future minimum lease payments as shown in the table below (dollars in thousands) : 
 
 As of 
December 31, 2024 
 Rents to be received 
 
 2025 $ 782 
 2026 603 
 2027 403 
 2028 290 
 2029 109 
 Thereafter 27 
 Total lease payments from operating leases $ 2,214 

 
 NOTE 8. GOODWILL AND OTHER INTANGIBLE ASSETS 
 Goodwill 
 Busey’s goodwill is associated with its three operating segments, Banking, Wealth Management, and FirsTech. Goodwill is tested annually for impairment, and as part of this analysis, the reporting unit's carrying value is compared to its estimated fair value. Based on the impairment testing performed at December 31, 2024, there were no indicators of potential impairment. 
 During the year ended December 31, 2024, in connection with the acquisition of M&M, Busey recorded goodwill totaling $ 15.8 million and other intangible assets of $ 6.3 million, both in the Banking segment. Busey did not record any new goodwill or other intangible assets during the year ended December 31, 2023. 
 The carrying amount of goodwill by operating segment is as follows (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Goodwill 
 Banking $ 310,595 $ 294,773 
 Wealth Management 14,108 14,108 
 FirsTech 8,992 8,992 
 Total goodwill $ 333,695 $ 317,873 

 Indefinite-lived intangible assets, such as goodwill, are not amortized. Goodwill is Busey's only indefinite-lived intangible asset. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Intangible Assets 
 Core deposit and customer relationship intangible assets are amortized over the estimated period during which Busey expects to benefit from the assets. Intangible asset disclosures are as follows (dollars in thousands) : 
 
 As of December 31, 2024 
 Core deposit
intangible Customer
relationship
intangible Total 
 Intangible Assets 
 Intangible assets, gross $ 105,411 $ 33,138 $ 138,549 
 Accumulated amortization 78,831 27,438 106,269 
 Intangible assets, net $ 26,580 $ 5,700 $ 32,280 

 
 As of December 31, 2023 
 Core deposit
intangible Customer
relationship
intangible Total 
 Intangible Assets 
 Intangible assets, gross $ 99,065 $ 33,138 $ 132,203 
 Accumulated amortization 71,092 25,120 96,212 
 Intangible assets, net $ 27,973 $ 8,018 $ 35,991 

 Amortization expense related to intangible assets, as reflected on Busey's Consolidated Statements of Income , is presented in the table below (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Amortization Expense 
 Core deposit intangible $ 7,739 $ 7,616 $ 8,315 
 Customer relationship intangible 2,318 2,816 3,313 
 Amortization of intangible assets $ 10,057 $ 10,432 $ 11,628 

 Future expense for the amortization of intangible assets, as estimated, is summarized in the table below (dollars in thousands) : 
 
 As of December 31, 2024 
 Core deposit
intangible Customer
relationship
intangible Total 
 Estimated amortization expense 
 2025 $ 6,895 $ 1,887 $ 8,782 
 2026 6,035 1,479 7,514 
 2027 5,200 1,091 6,291 
 2028 4,365 703 5,068 
 2029 1,719 360 2,079 
 Thereafter 2,366 180 2,546 
 Total estimated amortization expense $ 26,580 $ 5,700 $ 32,280 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 9. DEPOSITS 
 The composition of Busey’s deposits is as follows (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Deposits 
 Noninterest-bearing demand deposits $ 2,719,907 $ 2,834,655 
 Interest-bearing transaction deposits 2,423,237 2,717,139 
 Saving deposits and money market deposits 3,348,711 2,920,088 
 Time deposits 1,490,635 1,819,274 
 Total deposits $ 9,982,490 $ 10,291,156 

 Additional information about Busey’s deposits follows (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Brokered savings deposits and money market deposits $ 6,002 $ 6,001 
 Brokered time deposits 7,088 285 
 Total time deposits with a minimum denomination of $100,000 860,193 1,072,189 
 Total time deposits with a minimum denomination that meets or exceeds the FDIC insurance limit of $250,000 334,503 386,286 

 Scheduled maturities of time deposits are as follows (dollars in thousands) : 
 
 As of 
December 31, 2024 
 Time deposits by schedule of maturities 
 
 2025 $ 1,427,748 
 2026 33,459 
 2027 14,964 
 2028 8,178 
 2029 5,838 
 Thereafter 448 
 Time deposits $ 1,490,635 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 10. BORROWINGS 
 Securities Sold Under Agreements to Repurchase 
 Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The underlying securities are held by Busey’s safekeeping agent. Busey may be required to provide additional collateral based on fluctuations in the fair value of the underlying securities. Securities sold under agreements to repurchase were as follows (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Securities sold under agreements to repurchase $ 155,610 $ 187,396 
 Weighted average rate for securities sold under agreements to repurchase 2.63 % 3.26 % 

 Term Loan 
 On May 28, 2021, Busey entered into a Second Amended and Restated Credit Agreement, pursuant to which Busey has access to (1) a $ 40.0 million revolving line of credit with an initial termination date of April 30, 2022, and (2) a $ 60.0 million Term Loan with a maturity date of May 31, 2026. The loans had an annual interest rate of 1.75 % plus the one-month LIBOR rate. On April 30, 2022, the agreement was amended, effecting an extension of the termination date for the revolving line of credit to April 30, 2023, and providing for the transition from a LIBOR-indexed interest rate to a SOFR-indexed interest rate. Under the terms of the amendment, the annual interest rate for the loans was established at 1.80 % plus the one-month forward-looking term rate based on SOFR. The agreement has subsequently been amended twice to extend the termination date for the revolving line of credit, which is currently April 30, 2025. 
 During the first quarter of 2024, Busey paid the full $ 30.0 million balance remaining on the Term Loan, at which time the Term Loan carried interest at a rate of 7.13 %. As of December 31, 2024, there was no balance outstanding on the revolving credit facility. The revolving credit facility incurs a non-usage fee based on any undrawn amounts. 
 Short-Term Borrowings 
 Busey’s short-term borrowings may include loans maturing within one year of the loan origination date, as well as the current portion of long-term debt that is due within 12 months. Short-term borrowings are summarized as follows (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 
 
 
 
 Term Loan, current portion due within 12 months $ — $ 12,000 
 

 Federal funds purchased are short-term borrowings that generally mature between one day and 90 days. During the first quarter of 2024, Busey purchased federal funds to test operational availability to access funds if needed. Busey had no federal funds purchased as of December 31, 2024, or 2023. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Long-Term Debt 
 Busey’s long-term debt consists of loans maturing more than one year from the loan origination date, excluding the current portion that is due within 12 months. Long-term debt is summarized as follows (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 
 
 Term Loan $ — $ 18,000 
 

 Subordinated Notes 
 On June 1, 2020, Busey issued $ 125.0 million of fixed-to-floating rate subordinated notes that mature on June 1, 2030. The subordinated notes, which qualify as Tier 2 capital for regulatory purposes, bear interest at an annual rate of 5.25 % for the first five years after issuance and thereafter bear interest at a floating rate equal to a three-month benchmark rate plus a spread of 5.11 %, as calculated on each applicable determination date. Interest on the subordinated notes is payable semi-annually on each June 1 and December 1 during the five-year fixed-term, and thereafter on March 1, June 1, September 1, and December 1 of each year, commencing on September 1, 2025. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after June 1, 2025. The subordinated notes are unsecured obligations of the Company. 
 On June 2, 2022, Busey issued $ 100.0 million aggregate principal amount of 5.000 % fixed-to-floating rate subordinated notes maturing June 15, 2032, which qualify as Tier 2 Capital for regulatory purposes. The price to the public for the subordinated notes was 100 % of the principal amount of the subordinated notes. Interest on the subordinated notes accrues at a rate equal to (1) 5.000 % per annum from the original issue date to, but excluding, June 15, 2027, payable semiannually in arrears, and (2) a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR (as defined in the subordinated notes), plus a spread of 252 bps from and including June 15, 2027, payable quarterly in arrears. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after June 15, 2027. 
 Associated with the M&M acquisition completed on April 1, 2024 (see “ Note 2. Mergers and Acquisitions ” ), Busey acquired $ 4.0 million of 5.25 % fixed-to-floating rate subordinated notes maturing December 4, 2030, which qualify as Tier 2 capital for regulatory purposes. Interest on the subordinated notes accrues at a rate equal to (1) 5.25 % per annum from the original issue date to December 4, 2025, and (2) a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR (as defined in the subordinated notes), plus a spread of 497 bps from December 4, 2025. The subordinated notes have an optional redemption, in whole or in part, on or after December 4, 2025. At December 31, 2024, there was $ 0.1 million of fair value discount outstanding, to be accreted through the earliest optional redemption date. 
 Unamortized debt issuance costs related to Busey’s subordinated notes are presented in the following table (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Unamortized debt issuance costs 
 Subordinated notes issued in 2020 $ 222 $ 735 
 Subordinated notes issued in 2022 1,004 1,383 
 Total unamortized debt issuance costs $ 1,226 $ 2,118 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 11. JUNIOR SUBORDINATED DEBT OWED TO UNCONSOLIDATED TRUSTS 
 Busey maintains statutory trusts for the sole purpose of issuing and servicing trust preferred securities and related trust common securities. Proceeds from such issuances were used by the trusts to purchase junior subordinated notes issued by Busey, which are the sole assets of each trust. Concurrent with the issuance of the trust preferred securities, Busey issued guarantees for the benefit of the holders of the trust preferred securities. The trust preferred securities are instruments that qualify and are treated as Tier 1 regulatory capital. Busey owns all of the common securities of each trust. The trust preferred securities issued by each trust rank equally with the common securities in right of payment, except that if an event of default under the indenture governing the notes has occurred and is continuing, the preferred securities will rank senior to the common securities in right of payment. Busey had $ 74.8 million and $ 72.0 million of junior subordinated debt owed to unconsolidated trusts at December 31, 2024, and 2023, respectively, maturing in 2033 through 2036. In connection with its acquisitions of Pulaski Financial Corp. in 2016 and M&M in 2024, Busey has acquired similar statutory trusts and the fair value adjustment is being accreted over their weighted average remaining lives, with a balance of $ 2.9 million and $ 2.6 million remaining to be accreted as of December 31, 2024, and 2023, respectively. 
 Busey’s trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated notes at par value at the stated maturity date or upon redemption. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon Busey making payments on the related junior subordinated notes. Busey’s obligations under the junior subordinated notes and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by Busey of each trust’s obligations under the trust preferred securities issued by each trust. Busey has the right to defer payment of interest on the notes, in which case the distributions on the trust preferred securities will also be deferred, for up to five years , but not beyond the stated maturity date. 
 For regulatory capital purposes, current banking regulations allow for the inclusion in Tier 1 Capital of qualifying trust preferred securities issued prior to May 19, 2010, by bank holding companies with less than $ 15.0 billion of assets, but do not allow for additional Tier 1 Capital to be raised through the future issuance of trust preferred securities. As of December 31, 2024, 100 % of the trust preferred securities qualified as Tier 1 Capital; however, once Busey reaches $ 15.0 billion in assets, its trust preferred securities will no longer quality as Tier 1 Capital. 
 
 NOTE 12. REGULATORY CAPITAL 
 First Busey and Busey Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on Busey's Consolidated Financial Statements . Capital amounts and classification also are subject to qualitative judgments by regulators about components, risk weightings, and other factors. 
 Banking regulations identify five capital categories for insured depository institutions: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. As of December 31, 2024 and 2023, all capital ratios of First Busey and Busey Bank exceeded well capitalized levels under the applicable regulatory capital adequacy guidelines. Management believes that no events or changes have occurred subsequent to December 31, 2024, that would change this designation. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Current Expected Credit Loss Model 
 On August 26, 2020, the FDIC and other federal banking agencies adopted a final rule which provided banking organizations that adopted CECL during 2020 with the option to delay for two years the estimated impact of CECL on regulatory capital and to phase in the aggregate impact of the deferral on regulatory capital over a subsequent three-year period. Under this final rule, because Busey elected to use the deferral option, the regulatory capital impact of Busey’s transition adjustments recorded on January 1, 2020, arising from the adoption of CECL was deferred for two years. In addition, 25 percent of the ongoing impact of CECL on Busey’s ACL, retained earnings, and average total consolidated assets from January 1, 2020, through the end of the two-year deferral period, each as reported for regulatory capital purposes, has been added to the deferred transition amounts (“adjusted transition amounts”) and deferred for the two-year period. On January 1, 2022, at the conclusion of the two-year period, the adjusted transition amounts began to be phased-in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year. 
 Capital Amounts and Ratios 
 The following tables summarize regulatory capital requirements applicable to Busey and its subsidiary bank (dollars in thousands) : 
 
 As of December 31, 2024 
 Actual Minimum
Capital Requirement Minimum
To Be Well
Capitalized 
 Amount Ratio Amount Ratio Amount Ratio 
 Common equity Tier 1 capital to risk weighted assets 
 First Busey $ 1,237,301 14.10 % $ 394,840 4.50 % $ 570,325 6.50 % 
 Busey Bank $ 1,438,296 16.46 % $ 393,277 4.50 % $ 568,067 6.50 % 
 
 Tier 1 capital to risk weighted assets 
 First Busey $ 1,314,301 14.98 % $ 526,453 6.00 % $ 701,938 8.00 % 
 Busey Bank $ 1,438,296 16.46 % $ 524,369 6.00 % $ 699,159 8.00 % 
 
 Total capital to risk weighted assets 
 First Busey $ 1,625,943 18.53 % $ 701,938 8.00 % $ 877,422 10.00 % 
 Busey Bank $ 1,520,938 17.40 % $ 699,159 8.00 % $ 873,949 10.00 % 
 
 Leverage ratio of Tier 1 capital to average assets 
 First Busey $ 1,314,301 11.06 % $ 475,348 4.00 % N/A N/A 
 Busey Bank $ 1,438,296 12.14 % $ 473,878 4.00 % $ 592,347 5.00 % 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 
 As of December 31, 2023 
 Actual Minimum
Capital Requirement Minimum
To Be Well
Capitalized 
 Amount Ratio Amount Ratio Amount Ratio 
 Common equity Tier 1 capital to risk weighted assets 
 First Busey $ 1,155,973 13.09 % $ 397,331 4.50 % $ 573,923 6.50 % 
 Busey Bank $ 1,362,962 15.48 % $ 396,128 4.50 % $ 572,185 6.50 % 
 
 Tier 1 capital to risk weighted assets 
 First Busey $ 1,229,973 13.93 % $ 529,775 6.00 % $ 706,367 8.00 % 
 Busey Bank $ 1,362,962 15.48 % $ 528,171 6.00 % $ 704,228 8.00 % 
 
 Total capital to risk weighted assets 
 First Busey $ 1,540,318 17.44 % $ 706,367 8.00 % $ 882,958 10.00 % 
 Busey Bank $ 1,448,307 16.45 % $ 704,228 8.00 % $ 880,285 10.00 % 
 
 Leverage ratio of Tier 1 capital to average assets 
 First Busey $ 1,229,973 10.08 % $ 488,315 4.00 % N/A N/A 
 Busey Bank $ 1,362,962 11.19 % $ 487,103 4.00 % $ 608,879 5.00 % 

 Capital Conservation Buffer 
 In July 2013, U.S. federal banking authorities approved the Basel III Rule for strengthening international capital standards. The Basel III Rule introduced a capital conservation buffer, composed entirely of common equity Tier 1 capital, which is added to the minimum risk-weighted asset ratios. The capital conservation buffer is not a minimum capital requirement; however, banking institutions with a ratio of common equity Tier 1 capital to risk-weighted assets below the capital conservation buffer will face constraints on dividends, equity repurchases, and discretionary bonus payments based on the amount of the shortfall. In order to refrain from restrictions on dividends, equity repurchases, and discretionary bonus payments, banking institutions must maintain minimum ratios of (1) common equity Tier 1 capital to risk-weighted assets of at least 7.0%, (2) Tier 1 capital to risk-weighted assets of at least 8.5%, and (3) total capital to risk-weighted assets of at least 10.5%. 
 Subsidiary Dividend Payments 
 First Busey Corporation’s ability to pay cash dividends to its stockholders and to service its debt is dependent on the receipt of cash dividends from its subsidiaries. Under applicable regulatory requirements, an Illinois state-chartered bank, such as Busey Bank, may not pay dividends in excess of its net profits. Busey Bank paid $ 100.0 million, $ 90.0 million, and $ 95.0 million in dividends to First Busey Corporation during the years ended December 31, 2024, 2023, and 2022, respectively. 
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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 13. INCOME TAXES 
 Components of Busey’s income tax expense consist of the following (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Income tax expense 
 Current expense: 
 Federal $ 26,696 $ 20,139 $ 20,815 
 State 11,533 14,120 13,883 
 Deferred expense: 
 Federal 1,561 ( 1,557 ) ( 700 ) 
 State ( 177 ) ( 1,363 ) ( 572 ) 
 Total income tax expense $ 39,613 $ 31,339 $ 33,426 

 A reconciliation of federal and state income taxes at statutory rates to Busey’s income taxes included in the accompanying Consolidated Statements of Income is as follows: 
 
 Years Ended December 31, 
 2024 2023 2022 
 Percent of pretax income 
 Income tax at federal statutory rate 21.0 % 21.0 % 21.0 % 
 Effect of: 
 Tax-exempt interest, net ( 0.7 ) % ( 1.0 ) % ( 1.1 ) % 
 Stock incentive — % 0.2 % 0.1 % 
 State income taxes, net 5.8 % 6.5 % 6.5 % 
 Income on bank owned life insurance ( 0.7 ) % ( 0.6 ) % ( 0.5 ) % 
 Tax credit investments ( 3.1 ) % ( 6.0 ) % ( 5.6 ) % 
 Other, net 3.5 % 0.3 % 0.3 % 
 Effective income tax rate 25.8 % 20.4 % 20.7 % 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Net deferred taxes, reported in other assets or other liabilities on Busey’s Consolidated Balance Sheets , include the following amounts of deferred tax assets and liabilities (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Deferred taxes 
 Deferred tax assets: 
 ACL $ 23,685 $ 27,068 
 Unrealized loss on cash flow hedge 7,256 6,654 
 Unrealized losses on securities available for sale, net 61,479 70,423 
 Unrealized losses on securities held to maturity 8,068 10,156 
 Stock-based compensation 6,431 5,767 
 
 Purchase accounting adjustments 2,076 764 
 Accrued vacation 493 456 
 Lease liabilities 2,951 3,092 
 Employee costs 5,725 4,789 
 Unrealized loss on equity securities — 75 
 Other — 67 
 Total deferred tax assets 118,164 129,311 
 
 Deferred tax liabilities: 
 
 Basis in premises and equipment ( 2,419 ) ( 2,830 ) 
 Affordable housing partnerships and other investments ( 8,011 ) ( 8,341 ) 
 Purchase accounting adjustments ( 1,022 ) ( 1,133 ) 
 Mortgage servicing assets ( 745 ) ( 1,336 ) 
 Basis in core deposit, customer intangible assets, and asset purchase goodwill ( 3,325 ) ( 4,709 ) 
 Deferred loan origination costs ( 3,317 ) ( 3,691 ) 
 Right of use assets ( 2,835 ) ( 3,015 ) 
 Unrealized gain on equity securities ( 172 ) — 
 Other ( 856 ) ( 251 ) 
 Total deferred tax liabilities ( 22,702 ) ( 25,306 ) 
 
 Net deferred tax asset $ 95,462 $ 104,005 

 Management believes that it is more likely than not that the net deferred tax asset included in the accompanying Consolidated Balance Sheets will be fully realized. Busey has determined that no valuation allowance is required for any deferred tax assets as of December 31, 2024, or 2023. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 14. TAX CREDIT AND OTHER INVESTMENTS IN UNCONSOLIDATED ENTITIES 
 Busey’s investments in unconsolidated entities and related unfunded investment obligations are reflected in other assets and other liabilities on the Consolidated Balance Sheets , and are summarized in the table below for the periods indicated (dollars in thousands) : 
 
 As of December 31, 
 Location 2024 2023 
 Investments in unconsolidated entities 
 Funded investments Other assets $ 70,796 $ 68,516 
 Unfunded investments Other assets 61,210 58,552 
 Investments in unconsolidated entities $ 132,006 $ 127,068 
 
 Unfunded investment obligations Other liabilities $ 61,210 $ 58,552 

 Income tax credits and other benefits, along with investment amortization, are presented in the table below (dollars in thousands) . Beginning in 2024, income tax credits and other tax benefits, net of investment amortization, were included as a component of Busey’s estimated annual effective tax rate used for the calculation of income taxes presented on the Consolidated Statements of Income . 
 
 Year Ended December 31, 2024 
 
 Income tax credits and other tax benefits $ 20,734 
 Amortization of investments in tax-advantaged projects 18,494 

 
 NOTE 15. EMPLOYEE BENEFIT PLANS 
 401(k) Plan 
 Busey provides retirement benefits under its 401(k) Plan. All Busey associates who meet certain age requirements are eligible to participate in the 401(k) Plan. There is no waiting period for participation in the 401(k) Plan. The 401(k) Plan is funded primarily through participant contributions via payroll deductions, with two contribution options: (1) the traditional option allows plan participants to elect pre-tax contributions, and (2) the Roth option allows plan participants to elect after-tax contributions. Plan participants may elect to make traditional and/or Roth 401(k) contributions, up to the annual deferral and catch-up limits established by the Internal Revenue Service. 
 Busey supplements participant contributions by making safe harbor matching and discretionary profit-sharing contributions to the 401(k) Plan. 
 Safe Harbor Match 
 Busey makes safe harbor matching contributions to the 401(k) Plan equal to 100 % of the first 3 % of eligible participant compensation contributed to the plan and 50 % of the next 2 % of eligible participant compensation contributed to the plan. The rights of participants in safe harbor matching contributions vest immediately. 
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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Profit Sharing 
 All associates who meet certain age and service requirements are eligible to participate in Busey's profit-sharing contributions. Discretionary profit-sharing contributions and related expenses, if any, are approved solely by the First Busey Corporation board of directors, and in no case may annual contributions be greater than the amounts deductible for federal income tax purposes for that year. The rights of participants in profit-sharing contributions vest ratably over a five-year period. 
 401(k) Plan Expenses 
 Expenses related to Busey’s employee benefit plans, reported in salaries, wages, and employee benefits in the accompanying Consolidated Statements of Income , are summarized in the table below (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 401(k) Plan expenses 
 Safe harbor match expenses $ 4,486 $ 3,745 $ 4,094 
 Profit-sharing expenses 3,370 3,031 2,960 
 Total 401(k) Plan expenses $ 7,856 $ 6,776 $ 7,054 

 
 NOTE 16. STOCK-BASED COMPENSATION 
 Stock Options 
 Busey has outstanding stock options that were issued under the First Community 2016 Equity Incentive Plan and assumed from acquisitions. A summary of the status of, and changes in, Busey's stock option awards follows (dollars in thousands, except weighted-average exercise price) : 
 
 Options Shares Weighted-
Average
Exercise
Price Weighted-
Average
Remaining
Contractual
Life Intrinsic
Value 
 Outstanding at December 31, 2023 21,266 $ 23.53 2.88 years $ 27 
 Exercised ( 2,640 ) 23.53 
 Forfeited ( 3,520 ) 23.53 
 
 Outstanding at December 31, 2024 15,106 23.53 1.87 years 1 
 
 Exercisable at December 31, 2024 15,106 23.53 1.87 years 1 

 2020 Equity Plan 
 The 2020 Equity Plan was originally approved by stockholders at the 2020 Annual Meeting of Stockholders. A description of the 2020 Equity Plan, as originally approved, can be found in Appendix A within Busey’s Proxy Statement for the 2020 Annual Meeting of Stockholders filed on April 9, 2020 . An amendment and restatement of the 2020 Equity Plan was approved by stockholders at the 2023 Annual Meeting of Stockholders. Terms of the amended and restated 2020 Equity Plan are substantially identical to those of the originally approved 2020 Equity Plan, other than a 1,350,000 increase in the number of shares authorized for issuance under the plan. More information can be found in Appendix A within Busey’s Proxy Statement for the 2023 Annual Meeting of Stockholders filed on April 14, 2023 . 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Busey has granted RSU, PSU, and DSU awards under the terms of the 2020 Equity Plan. Upon vesting and delivery, shares are expected, though not required, to be issued from treasury stock. 
 A description of RSU, PSU, and DSU awards granted in 2024 under the terms of the 2020 Equity Plan is provided below. A description of RSU, PSU, and DSU awards granted in 2023 and 2022 under the terms of the 2020 Equity Plan can be found in Busey’s Annual Reports for the years ended December 31, 2023, and 2022, respectively. 
 Busey issued 163,387 treasury shares in conjunction with the settlement of RSUs, PSUs, and DSUs in 2024. The difference between the number of shares issued and the number of vested units is due to shares issued under a net share settlement option. There were 1,326,314 shares available for issuance under the 2020 Equity Plan as of December 31, 2024. 
 RSU Awards 
 Busey grants RSU awards to members of management periodically throughout the year. RSU awards are stock-based awards for which vesting is conditional upon meeting established service criteria. Each RSU is equivalent to one share of Busey’s common stock. Busey’s RSUs have requisite service periods ranging from one year to five years , and are subject to accelerated vesting upon eligible retirement from Busey. Recipients earn quarterly dividend equivalents on their respective RSUs, which entitle the recipients to additional units. Therefore, dividends earned each quarter compound based upon the updated unit balances. 
 On March 20, 2024, under the terms of the 2020 Equity Plan, Busey granted 189,179 RSUs to members of management. The grant date fair value of the award was $ 4.4 million, which will be recognized as compensation expense over the requisite service period ranging from one year to five years . The terms of these awards included an accelerated vesting provision upon eligible retirement from Busey, after a one-year minimum requisite service period. Subsequent to the requisite service period, the awards will become 100 % vested. 
 On May 22, 2024, under the terms of the 2020 Equity Plan, Busey granted 12,864 RSUs to members of management. The grant date fair value of the award was $ 0.3 million, which will be recognized as compensation expense over the requisite service period of three years . The terms of these awards included an accelerated vesting provision upon eligible retirement from Busey, after a one-year minimum requisite service period. Subsequent to the requisite service period, the awards will become 100 % vested. 
 A summary of changes in Busey’s RSU awards for the year ended December 31, 2024, is as follows: 
 
 RSU Awards Shares Weighted-
Average
Grant Date
Fair Value 
 Nonvested at December 31, 2023 1,041,444 $ 22.05 
 Granted 202,043 23.35 
 Dividend equivalents earned 42,986 24.74 
 Vested ( 187,446 ) 25.38 
 Forfeited ( 32,255 ) 22.48 
 Nonvested at December 31, 2024 1,066,772 $ 21.80 

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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 PSU Awards 
 Busey grants PSU awards to members of management periodically throughout the year. PSU awards are stock-based awards for which vesting is conditional upon meeting established performance criteria for the applicable performance period and remaining employed through the end of such performance period. Each PSU is equivalent to one share of Busey’s common stock. The number of PSUs that ultimately vest will be determined based on the extent to which the established performance criteria are achieved. Busey’s PSUs are subject to accelerated service-based vesting conditions upon eligible retirement from Busey. After performance determination, dividend equivalents are compounded based upon the updated PSU balances at each dividend date during the performance period. 
 On March 20, 2024, under the terms of the 2020 Equity Plan, Busey granted a target of 94,604 PSUs with a maximum award of 151,366 units. The actual number of units issued at the vesting date could range from 0 % to 160 % of the initial grant, depending on attaining a relative total stockholder return performance goal. The grant date fair value of the award, calculated using the Geometric Brownian Motion Model, was $ 2.0 million, which will be recognized in compensation expense over the performance period ending December 31, 2026. 
 On March 20, 2024, under the terms of the 2020 Equity Plan, Busey granted a target of 94,604 PSUs with a maximum award of 151,366 units. The actual number of units issued at the vesting date could range from 0 % to 160 % of the initial grant, depending on attaining an adjusted return on average tangible common equity performance goal. The grant date fair value of the award was $ 2.2 million, which will be recognized in compensation expense over the performance period ending December 31, 2026. The actual amount of compensation expense recognized is subject to adjustment based on the extent to which performance goals are expected to be achieved. 
 A summary of changes in Busey’s PSU awards for the year ended December 31, 2024, is as follows: 
 
 PSU Awards Shares 1 
 Weighted-
Average
Grant Date
Fair Value 
 
 Nonvested at December 31, 2023 
 341,700 $ 22.67 
 Granted 
 189,208 22.32 
 Dividend equivalents earned 
 4,264 22.95 
 Vested 2 
 ( 147,397 ) 26.07 
 Forfeited 
 ( 15,733 ) 22.47 
 
 Nonvested at December 31, 2024 
 372,042 $ 21.15 
 
 Vested and outstanding at December 31, 2024 2 
 143,133 $ 26.17 

 ___________________________________________ 
 1. Shares for PSU awards represent target shares at grant date. 
 2. PSUs granted in 2022 vested on December 31, 2024. Shares represent target amounts. Performance determinations were calculated and approved by Busey’s Compensation Committee on January 31, 2025, and settlement activity will take place in the first quarter of 2025. 
 DSU Awards 
 Busey grants DSU awards to its non-employee directors. DSU awards are stock-based awards with a deferred settlement date. Each DSU is equivalent to one share of Busey’s common stock. DSUs vest over a one-year period following the grant date. Under the 2020 Equity Plan, DSUs are generally subject to the same terms as RSUs, except that following vesting of DSUs, settlement occurs within 30 days following the earlier of separation from the board or a change in control of the Company. After vesting and prior to delivery, DSUs will continue to earn dividend equivalents. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 On March 20, 2024, under the terms of the 2020 Equity Plan, Busey granted 35,847 DSUs to non-employee directors. The grant date fair value of the award totaled $ 0.8 million and will be recognized as compensation expense over the requisite service period of one year . Subsequent to the requisite service period, the awards will become 100 % vested. 
 A summary of changes in Busey’s DSU awards for the year ended December 31, 2024, is as follows: 
 
 DSU Awards Shares Weighted-
Average
Grant Date
Fair Value 
 Nonvested at December 31, 2023 43,026 $ 20.41 
 Granted 35,847 23.35 
 Dividend equivalents earned 8,213 24.79 
 Vested ( 49,168 ) 21.04 
 Forfeited ( 1,025 ) 20.44 
 Nonvested at December 31, 2024 36,893 $ 23.40 
 
 Vested and outstanding at December 31, 2024 184,941 $ 22.85 

 Employee Stock Purchase Plan 
 The First Busey Corporation ESPP was approved at Busey’s 2021 Annual Meeting of Stockholders. The purpose of the ESPP is to provide a means through which Busey employees may acquire a proprietary interest in the Company by purchasing shares of its common stock at a 15 % discount through voluntary payroll deductions, to assist in retaining the services of current employees and securing and retaining the services of new employees, and to provide incentives for Busey employees to exert maximum efforts toward the Company’s success. Substantially all of Busey’s employees are eligible to participate, and all participating employees have equal rights and privileges under the terms of the ESPP. Further details can be found in Appendix A within Busey’s Definitive Proxy Statement filed with the SEC on April 8, 2021 . 
 The ESPP initially reserved for issuance and purchase an aggregate of 600,000 shares of Busey’s common stock. The first offering under the ESPP began on July 1, 2021. There were 393,536 shares available for issuance under the ESPP as of December 31, 2024. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Stock-Based Compensation Expense 
 Busey did not record any stock option compensation expense for the years ended December 31, 2024, 2023, or 2022. Busey did not have any unrecognized stock option compensation expense as of December 31, 2024. 
 Busey recognized compensation expense related to non-vested RSU, PSU, and DSU awards, as well as the ESPP, as summarized in the table below (dollars in thousands) : 
 
 Years Ended December 31, 
 Location 2024 2023 2022 
 Stock-based compensation expense 
 
 RSU awards 
 Salaries, wages, and employee benefits $ 3,823 $ 2,622 $ 4,648 
 PSU awards 1 
 Salaries, wages, and employee benefits 2,867 2,962 3,240 
 DSU awards 
 Other expense 826 833 876 
 ESPP 
 Salaries, wages, and employee benefits 210 178 204 
 Total stock-based compensation expense 
 $ 7,726 $ 6,595 $ 8,968 

 ___________________________________________ 
 1. Expense for PSU awards with a relative total stockholder return performance goal represents amounts based on target shares at the grant date. Expense for PSU awards with return on average tangible common equity and compounded annual revenue growth rate performance goals represents amounts based on target shares at the grant date, adjusted for performance expectations as of the date indicated. 
 Unamortized stock-based compensation expense is presented in the table below (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Unamortized stock-based compensation 
 RSU awards $ 7,093 $ 6,842 
 PSU awards 1 
 3,043 3,607 
 DSU awards 181 190 
 Total unamortized stock-based compensation $ 10,317 $ 10,639 
 
 Weighted average period over which expense is to be recognized 2.5 years 
 2.4 years 
 

 ___________________________________________ 
 1. Unamortized expense for PSU awards with a relative total stockholder return performance goal represents amounts based on target shares at grant date. Unamortized expense for PSU awards with return on average tangible common equity and compounded annual revenue growth rate performance goals represents amounts based on target shares at grant date, adjusted for performance expectations as of the date indicated. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 17. TRANSACTIONS WITH RELATED PARTIES 
 Busey has had, and may be expected to have in the future, banking transactions in the ordinary course of business with related parties which include directors, executive officers, chief credit officers, their immediate families, and affiliated companies in which they have 10% or more beneficial ownership, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others. 
 The following table presents changes in loans to related parties, as a group (dollars in thousands) : 
 
 As of and for the Year Ended
December 31, 2024 
 Balance of loans to related parties, December 31, 2023 $ 77,649 
 Change in relationship 1,435 
 New loans/advances 178,924 
 Repayments ( 159,997 ) 
 Balance of loans to related parties, December 31, 2024 $ 98,011 
 
 Unused commitments to directors and executive officers $ 26,383 

 Loans to related parties did not include significant amounts that were past due, non-accrual, or modified. 
 
 NOTE 18. OUTSTANDING COMMITMENTS AND CONTINGENT LIABILITIES 
 Credit Commitments and Contingencies 
 A summary of the contractual amount of Busey’s exposure to off-balance-sheet risk relating to the Company’s commitments to extend credit and standby letters of credit follows (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Financial instruments whose contract amounts represent credit risk 
 Commitments to extend credit $ 2,512,714 $ 2,132,500 
 Standby letters of credit 35,464 43,996 
 Total commitments $ 2,548,178 $ 2,176,496 

 Legal Matters 
 Busey is a party to legal actions which arise in the normal course of its business activities. Legal and administrative proceedings are subject to inherent uncertainties, and while unfavorable outcomes could occur, Busey does not believe at this time that any potential liabilities relating to pending or potential legal matters are likely to have a material impact on Busey's results of operations or financial position. 
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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Franchise Tax Matter 
 In 2021, Busey received an inquiry from the Illinois Secretary Of State, pursuant to which the Illinois Secretary Of State asked for additional information regarding certain of Busey’s franchise tax filings and the calculation of amounts due thereunder. The franchise tax is established by the Illinois Business Corporation Act (“BCA”) 805 ILCS 5/1 et seq., and is a tax imposed on foreign and domestic corporations for the privilege of conducting business in Illinois. Busey has been cooperating with the inquiry and has delivered additional BCA forms requested by the Illinois Secretary Of State, with a full reservation of rights by Busey, including seeking judicial relief, if necessary, with respect to any potential dispute regarding Busey’s preparation of the BCA forms and the calculation of the franchise taxes due. Where a loss is believed to be reasonably possible, but not probable, or the loss cannot be reasonably estimated, as is the case with this matter, no accrual is required. It is reasonably possible that this matter could require Busey to pay additional taxes, including potential penalties and interest, or make other expenditures or accrue liabilities in amounts that could not be reasonably estimated as of December 31, 2024. If the likelihood of potential liabilities elevates, requiring an accrual, the potential future liabilities could be material in the period(s) in which they are recorded. 
 
 NOTE 19. DERIVATIVE FINANCIAL INSTRUMENTS 
 Busey utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, Busey enters into derivative financial instruments, including interest rate lock commitments issued to residential loan customers for loans that will be held for sale; forward sales commitments to sell residential mortgage loans to investors; and interest rate swaps, risk participation agreements, and foreign currency exchange contracts with customers and other third parties. See “ Note 20. Fair Value Measurements ” for further discussion of the fair value measurement of such derivatives. 
 To secure its obligations under derivative contracts, Busey pledged cash and held collateral as follows (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Cash pledged to secure obligations under derivative contracts $ 21,900 $ 34,210 
 Collateral held to secure obligations under derivative contracts 20,260 19,280 

 Derivative Instruments Designated as Hedges 
 Busey entered into derivative instruments designated as cash flow hedges. For a derivative instrument that is designated and qualifies as a cash flow hedge, the change in fair value of the derivative instrument is reported as a component of OCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Changes in fair value of components excluded from the assessment of effectiveness are recognized in current earnings. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Interest Rate Swaps Designated as Cash Flow Hedges 
 Interest rate swaps with notional amounts totaling $ 500.0 million as of December 31, 2024, and $ 350.0 million as of December 31, 2023, were designated as cash flow hedges. Busey entered into a $ 300.0 million receive fixed pay floating interest rate swap to reduce Busey's asset sensitivity (“Prime Loan Swap”). Duration was added to Busey’s loan portfolio by fixing a portion of floating prime-based loans. Interest rates had risen above their historical lows allowing Busey to lock in a portion of its loan portfolio to reduce asset sensitivity while creating a more stable margin in a volatile rate market. These hedges were determined to be highly effective during the period, and Busey expects its hedges to remain highly effective during the remaining terms of the swaps. Further, in 2024 Busey entered into forward-starting SOFR-based receive-fixed pay-floating interest rate swaps totaling $ 200.0 million to reduce Busey’s asset sensitivity (“SOFR Loan Swaps”). These hedges were determined to be highly effective during the period, and Busey expects its hedges to remain highly effective during the remaining terms of the swaps. During 2024 an interest rate swap to hedge the risks of variability in cash flows for future interest payments attributable to changes in the 3-month CME Term SOFR benchmark interest rate on Busey’s junior subordinated debt owed to unconsolidated trusts (“Debt Swap”) matured. Changes in fair value were recorded net of tax in OCI. 
 A summary of the interest-rate swaps designated as cash flow hedges is presented below (dollars in thousands) : 
 
 As of December 31, 
 Location 2024 2023 
 Debt Swap 
 Notional amount $ — $ 50,000 
 Weighted average rate: pay-fixed — 1.79 % 
 Weighted average variable 3-month Fallback Rate (SOFR) receive rates — 5.61 % 
 Weighted average maturity — 0.71 years 
 
 
 Prime Loan Swap 
 Notional amount $ 300,000 $ 300,000 
 Weighted average rate: receive-fixed 4.81 % 4.81 % 
 Weighted average variable Prime pay rates 7.62 % 8.50 % 
 Weighted average maturity 4.10 years 
 5.10 years 
 
 
 SOFR Loan Swaps 
 Notional amount $ 200,000 $ — 
 Weighted average rate: receive-fixed 3.78 % — 
 
 Weighted average maturity 4.76 years — 
 
 Gross aggregate fair value of the swaps 
 Gross aggregate fair value of swap assets Other assets $ — $ 1,293 
 Gross aggregate fair value of swap liabilities Other liabilities $ 27,770 $ 25,411 
 
 Balances carried in AOCI 
 Unrealized gains (losses) on cash flow hedges, net of tax AOCI $ ( 19,805 ) $ ( 16,694 ) 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Busey expects to reclassify unrealized gains and losses from OCI to interest income and interest expense as shown in the following table, during the next 12 months (dollars in thousands) . Amounts actually recognized could differ from these expectations due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31, 2024. 
 
 As of 
December 31, 2024 
 
 Unrealized losses expected to be reclassified from OCI to interest income $ ( 725 ) 
 
 

 Interest income (expense) recorded on swap transactions was as follows for the periods presented (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Interest on swap transactions 
 Increase (decrease) in interest income on swap transactions $ ( 10,669 ) $ ( 10,326 ) $ ( 553 ) 
 (Increase) decrease in interest expense on swap transactions 1,378 1,757 ( 30 ) 
 Net increase (decrease) in net interest income on swap transactions $ ( 9,291 ) $ ( 8,569 ) $ ( 583 ) 

 The following table reflects the net gains (losses) recorded in AOCI and the Consolidated Statements of Comprehensive Income relating to cash flow derivative instruments for the periods presented (dollars in thousands) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Unrealized gains (losses) on cash flow hedges 
 Net gain (loss) recognized in OCI, net of tax $ ( 10,790 ) $ ( 1,835 ) $ ( 20,717 ) 
 (Gain) loss reclassified from OCI to interest income, net of tax 8,818 7,382 395 
 (Gain) loss reclassified from OCI to interest expense, net of tax ( 1,139 ) ( 1,256 ) 22 
 Net change in unrealized gains (losses) on cash flow hedges, net of tax $ ( 3,111 ) $ 4,291 $ ( 20,300 ) 

 Derivative Instruments Not Designated as Hedges 
 Interest Rate Swaps Not Designated as Hedges 
 Busey may offer derivative contracts to its customers in connection with their risk management needs. Busey manages the risk associated with these contracts by entering into equal and offsetting derivative agreements with a third-party dealer. These contracts supported variable rate, commercial loan relationships totaling $ 719.2 million and $ 663.1 million as of December 31, 2024 and 2023, respectively. These derivatives generally worked together as an economic interest rate hedge, but Busey did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. 
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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Amounts and fair values of derivative assets and liabilities related to customer interest rate swaps recorded on the Consolidated Balance Sheets are summarized as follows (dollars in thousands) : 
 
 As of December 31, 2024 As of December 31, 2023 
 Location Notional
Amount Fair
Value Notional
Amount Fair
Value 
 Derivative assets not designated as hedging instruments 
 Interest rate swaps: receive-fixed, pay-floating Other assets $ 156,539 $ 1,465 $ 177,883 $ 2,375 
 Interest rate swaps: receive-floating, pay-fixed Other assets 562,697 28,854 485,253 26,289 
 Derivative assets not designated as hedging instruments $ 719,236 $ 30,319 $ 663,136 $ 28,664 
 
 Derivative liabilities not designated as hedging instruments 
 Interest rate swaps: receive-fixed, pay-floating Other liabilities $ 562,697 $ 28,854 $ 485,253 $ 26,289 
 Interest rate swaps: receive-floating, pay-fixed Other liabilities 156,539 1,465 177,883 2,375 
 Derivative liabilities not designated as hedging instruments $ 719,236 $ 30,319 $ 663,136 $ 28,664 

 Changes in fair value of these derivative assets and liabilities were recorded in noninterest expense on the Consolidated Statements of Income and are summarized as follows (dollars in thousands) : 
 
 Years Ended December 31, 
 Location 2024 2023 2022 
 Interest rate swaps 
 Receive-fixed, pay-floating Noninterest expense $ 1,726 $ ( 11,525 ) $ 19,308 
 Receive-floating, pay-fixed Noninterest expense ( 1,726 ) 11,525 ( 19,308 ) 
 Net change in fair value of interest rate swaps $ — $ — $ — 

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 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Risk Participation Agreements 
 To manage the credit risk exposure related to customer-facing swaps, Busey entered into risk participation agreements in conjunction with loan participation arrangements with other financial institutions. Under these risk participation agreements, Busey purchased credit risk participation, paying an up-front fee to a counterparty to accept a portion of its credit exposure, and will receive a payment from the counterparty if the swap customer defaults on its obligations. 
 Busey also entered into a risk participation agreement under which Busey sold credit risk participation, receiving an up-front fee from a counterparty in exchange for accepting a portion of the counterparty’s credit exposure. This agreement matured on June 30, 2024. The swap customer did not default on its obligations, and Busey was not required to make a payment to the counterparty of the risk participation agreement. 
 Notional amounts of the risk participation agreements reflect the participating banks’ pro-rata shares of the derivative instruments, consistent with their shares of the related participated loans. The risk participation agreements mature between August 2026 and January 2029, and are summarized as follows (dollars in thousands) : 
 
 As of December 31, 
 2024 2023 
 Risk participation agreements purchased 
 Number of risk participation agreements 5 3 
 Notional amount $ 40,092 $ 34,251 
 Fair value 5 15 
 
 Risk participation agreements sold 
 Number of risk participation agreements — 1 
 Notional amount $ — $ 20,001 
 Fair value — — 

 Mortgage Banking Derivatives 
 Interest Rate Lock Commitments 
 Interest rate lock commitments that meet the definition of derivative financial instruments under ASC Topic 815 “Derivatives and Hedging” are carried at their fair values in other assets or other liabilities on the Consolidated Balance Sheets , with changes in the fair values of the corresponding derivative financial assets or liabilities recorded as either a charge or credit to current earnings during the period in which the changes occurred. 
 Forward Sales Commitments 
 Busey economically hedges mortgage loans held for sale and interest rate lock commitments issued to its residential loan customers related to loans that will be held for sale by obtaining corresponding forward sales commitments with an investor to sell the loans at an agreed-upon price at the time the interest rate locks are issued to the customers. Forward sales commitments that meet the definition of derivative financial instruments under ASC Topic 815 “Derivatives and Hedging” are carried at their fair values in other assets or other liabilities on the Consolidated Balance Sheets . While such forward sales commitments generally served as an economic hedge to mortgage loans held for sale and interest rate lock commitments, Busey did not designate them for hedge accounting treatment. Changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred. 
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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Amounts and fair values of mortgage banking derivatives included on the Consolidated Balance Sheets are summarized as follows (dollars in thousands) : 
 
 As of December 31, 2024 As of December 31, 2023 
 Location Notional
Amount Fair
Value Notional
Amount Fair
Value 
 Mortgage banking derivative assets 
 Interest rate lock commitments Other assets $ 2,430 $ 28 $ 3,477 $ 25 
 Forward sales commitments Other assets 3,457 21 1,761 11 
 Mortgage banking derivative assets $ 5,887 $ 49 $ 5,238 $ 36 
 
 Mortgage banking derivative liabilities 
 Interest rate lock commitments Other liabilities $ 436 $ 4 $ 1,615 $ 10 
 Forward sales commitments Other liabilities 1,955 6 5,216 47 
 Mortgage banking derivative liabilities $ 2,391 $ 10 $ 6,831 $ 57 

 Net gains (losses) relating to these derivative instruments are summarized as follows (dollars in thousands) : 
 
 Years Ended December 31, 
 Location 2024 2023 2022 
 Net gains (losses) on mortgage banking derivatives 
 Gains (losses) on interest rate lock commitments Mortgage revenue $ 585 $ — $ 15 
 Gains (losses) on forward sales commitments Mortgage revenue ( 147 ) 2 ( 38 ) 
 Net gains (losses) on mortgage banking derivatives $ 438 $ 2 $ ( 23 ) 

 Gains or losses are recognized on these mortgage banking derivative instruments in earnings; however, because loans held for sale are carried at LOCOM, any corresponding increase in the fair value of loans held for sale will not be recognized in earnings until the loans are sold, at which time the increase is factored into the calculated gain on sale. Decreases in the market value of loans held for sale is recognized in earnings at each measurement period. 
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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 20. FAIR VALUE MEASUREMENTS 
 The fair value of an asset or liability is the price that would be received by selling that asset or paid in transferring that liability (exit price) in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. ASC Topic 820 “Fair Value Measurement” establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: 
 • Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. 
 • Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatility, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. 
 • Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. 
 A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to Busey’s assets and liabilities that are carried at fair value. 
 In general, fair value estimates are based upon quoted market prices, when available. If such quoted market prices are not available, fair values are estimated utilizing independent valuation techniques that consider identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable data. Valuation adjustments may be made to ensure that financial instruments are recorded at their estimated fair values. These adjustments may include amounts to reflect, among other things, counterparty credit quality and the company's creditworthiness as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. While management believes Busey's valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to estimate the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. 
 Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis 
 Debt Securities Available for Sale 
 Debt securities classified as available for sale are reported at fair value, which is estimated using Level 2 inputs. Busey obtains fair value measurements from an independent pricing service. The independent pricing service utilizes evaluated pricing models that vary by asset class and incorporate available trade, bid, and other market information. Because many fixed income securities do not trade on a daily basis, the independent pricing service applies available information to prepare evaluations, with a focus on observable market data such as benchmark curves, benchmarking of like securities, sector groupings, and matrix pricing. 
 The independent pricing service uses model processes, such as the Option Adjusted Spread model, to assess interest rate impact and develop prepayment scenarios. Models and processes take into account market conventions. For each asset class, a team of evaluators gathers information from market sources and integrates relevant credit information, perceived market movements, and sector news into the evaluated pricing applications and models. 
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 Market inputs that the independent pricing service normally seeks for evaluations of securities, listed in approximate order of priority, include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including market research publications. The independent pricing service also monitors market indicators, industry, and economic events. For certain security types, additional inputs may be used or some of the market inputs may not be applicable. Evaluators may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs listed are available for use in the evaluation process for each security evaluation on a given day. Because the data utilized was observable, the securities have been classified as Level 2. 
 Equity Securities 
 Equity securities are reported at fair value, which is estimated using Level 1 or Level 2 inputs. Fair value measurements of mutual funds, when held, are estimated using unadjusted quoted prices in active markets for identical assets at the measurement date and are classified as Level 1. Fair value measurements of stock use quoted prices for identical or similar assets in markets that are not active and are classified as Level 2. 
 Derivative Assets and Derivative Liabilities 
 Busey’s derivative assets and derivative liabilities are reported at fair value, which is measured using Level 2 or Level 3 inputs. Derivative balances are included in other assets or other liabilities on the Consolidated Balance Sheets , and consist of interest rate swaps and risk participation agreements where there is no significant deterioration in the counterparties (loan customers) credit risk since origination of the interest rate swap or risk participation agreement, as well as mortgage banking derivatives, including interest rate lock commitments and forward sales commitments. 
 Fair values of derivative assets and liabilities are estimated based on prices that are obtained from a third-party which uses observable market inputs and, with the exception of risk participation agreements, are classified as Level 2. For purposes of potential valuation adjustments to Busey’s derivative positions, Busey evaluates the credit risk of its counterparties as well as its own credit risk. Accordingly, Busey has considered factors such as the likelihood of default, expected loss given default, net exposures, and remaining contractual life, among other things, in determining if any estimated fair value adjustments related to credit risk are required. Busey reviews counterparty exposure quarterly, and when necessary, appropriate adjustments are made to reflect the exposure. No changes in counterparty credit were identified. 
 Due to the significance of unobservable inputs, derivative assets related to risk participation agreements are classified as Level 3. 
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 The following tables summarize financial assets and financial liabilities measured at estimated fair value on a recurring basis as of December 31, 2024 and 2023, segregated by the level of the valuation inputs within the fair value hierarchy utilized to estimate fair value (dollars in thousands) : 
 
 As of December 31, 2024 
 Level 1
Inputs Level 2
Inputs Level 3
Inputs Total
Fair Value 
 Debt securities available for sale: 
 
 Obligations of U.S. government corporations and agencies $ — $ 1,400 $ — $ 1,400 
 Obligations of states and political subdivisions — 139,829 — 139,829 
 Asset-backed securities — 336,557 — 336,557 
 Commercial mortgage-backed securities — 92,174 — 92,174 
 Residential mortgage-backed securities — 1,087,210 — 1,087,210 
 Corporate debt securities — 153,051 — 153,051 
 Equity securities 5,567 10,295 — 15,862 
 Derivative assets — 30,368 5 30,373 
 Derivative liabilities — 58,099 — 58,099 

 
 As of December 31, 2023 
 Level 1
Inputs Level 2
Inputs Level 3
Inputs Total
Fair Value 
 Debt securities available for sale: 
 U.S. Treasury securities $ — $ 15,946 $ — $ 15,946 
 Obligations of U.S. government corporations and agencies — 5,832 — 5,832 
 Obligations of states and political subdivisions — 172,845 — 172,845 
 Asset-backed securities — 468,223 — 468,223 
 Commercial mortgage-backed securities — 103,509 — 103,509 
 Residential mortgage-backed securities — 1,111,312 — 1,111,312 
 Corporate debt securities — 209,904 — 209,904 
 Equity securities 448 9,364 — 9,812 
 Derivative assets — 29,993 15 30,008 
 Derivative liabilities — 54,132 — 54,132 

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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 Activity for risk participation agreements, which are financial assets measured at estimated fair value on a recurring basis using Level 3, is summarized in the tables below (dollars in thousands) : 
 
 Years Ended December 31, 
 Location 2024 2023 
 Beginning Balance $ 15 $ 5 
 Gains (losses) recognized in earnings Other expense ( 26 ) ( 60 ) 
 
 Purchases 16 70 
 
 
 
 
 
 Ending Balance $ 5 $ 15 

 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis 
 Certain financial assets and financial liabilities are measured at estimated fair value on a non-recurring basis; that is, the instruments are not measured at estimated fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). 
 Loans Evaluated Individually 
 Busey does not record portfolio loans at estimated fair value on a recurring basis. However, periodically, a loan is evaluated individually and is reported at the estimated fair value of the underlying collateral, less estimated costs to sell, if repayment is expected solely from the collateral. If the estimated collateral value is not sufficient, a specific reserve is recorded. Collateral values are estimated using a combination of observable inputs, including recent appraisals, and unobservable inputs based on customized discounting criteria. Due to the significance of unobservable inputs, fair values of individually evaluated collateral dependent loans have been classified as Level 3. 
 Bank Property Held for Sale 
 Bank property held for sale represents certain banking center office buildings which Busey has closed and consolidated with other existing banking centers. Bank property held for sale is measured at the lower of amortized cost or estimated fair value less estimated costs to sell, and is included in premises and equipment, net on the Consolidated Balance Sheets . Fair values were based upon discounted appraisals or real estate listing prices. Due to the significance of unobservable inputs, fair values of all bank property held for sale have been classified as Level 3. 
 The following tables summarize assets and liabilities measured at estimated fair value on a non-recurring basis, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands) : 
 
 As of December 31, 2024 
 Level 1
Inputs Level 2
Inputs Level 3
Inputs Total
Fair Value 
 Loans evaluated individually, net of related allowance $ — $ — $ 616 $ 616 
 
 Bank property held for sale with impairment — — 2,841 2,841 

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 As of December 31, 2023 
 Level 1
Inputs Level 2
Inputs Level 3
Inputs Total
Fair Value 
 Loans evaluated individually, net of related allowance $ — $ — $ 1,000 $ 1,000 
 
 Bank property held for sale with impairment — — 4,286 4,286 

 The following table presents additional quantitative information about assets measured at estimated fair value on a non-recurring basis using Level 3 inputs (dollars in thousands) : 
 
 As of December 31, 2024 
 Fair Value Valuation
Techniques Unobservable
Input Range
(Weighted Average) 
 Loans evaluated individually, net of related allowance $ 616 Appraisal of collateral Appraisal adjustments - 25.0 % to - 100.0 % 
 (- 74.9 )% 
 
 
 Bank property held for sale with impairment 2,841 Appraisal of collateral or real estate listing price Appraisal adjustments - 9.0 % to - 76.7 % 
 (- 51.8 )% 
 

 
 As of December 31, 2023 
 Fair Value Valuation
Techniques Unobservable
Input Range
(Weighted Average) 
 Loans evaluated individually, net of related allowance $ 1,000 Appraisal of collateral Appraisal adjustments - 41.2 % to - 100.0 % 
 (- 47.2 )% 
 
 
 Bank property held for sale with impairment 4,286 Appraisal of collateral or real estate listing price Appraisal adjustments - 6.2 % to - 64.9 % 
 (- 38.4 )% 
 

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 Financial Assets and Financial Liabilities That Are Not Carried at Fair Value 
 Fair values of financial instruments that are not carried at fair value on Busey’s Consolidated Balance Sheets were estimated as follows, segregated by the level of the valuation inputs within the fair value hierarchy used to measure fair value (dollars in thousands) : 
 
 As of December 31, 2024 As of December 31, 2023 
 Carrying
Amount Fair
Value Carrying
Amount Fair
Value 
 Financial assets 
 Level 1 inputs: 
 Cash and cash equivalents $ 697,659 $ 697,659 $ 719,581 $ 719,581 
 Level 2 inputs: 
 Debt securities held to maturity 826,630 675,053 872,628 730,397 
 Loans held for sale 3,657 3,726 2,379 2,401 
 Restricted bank stock 49,930 49,930 6,000 6,000 
 Accrued interest receivable 45,141 45,141 45,288 45,288 
 Level 3 inputs: 
 Portfolio loans, net 7,613,683 7,426,158 7,559,294 7,276,905 
 Mortgage servicing rights 1,304 5,627 3,289 18,079 
 Other servicing rights 1,482 1,591 1,597 2,062 
 
 Financial liabilities 
 Level 2 inputs: 
 Time deposits $ 1,490,635 $ 1,481,591 $ 1,819,274 $ 1,804,905 
 Securities sold under agreements to repurchase 155,610 155,610 187,396 187,396 
 Short-term borrowings — — 12,000 12,034 
 Long-term debt — — 18,000 18,020 
 Junior subordinated debt owed to unconsolidated trusts 74,815 67,314 71,993 57,153 
 Accrued interest payable 21,129 21,129 28,418 28,418 
 Level 3 inputs: 
 
 Subordinated notes, net of unamortized issuance costs 227,723 219,043 222,882 200,000 

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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 21. EARNINGS PER COMMON SHARE 
 Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding, which include DSUs that are vested but not delivered. Diluted earnings per common share is computed using the treasury stock method and reflects the potential dilution that could occur if Busey’s outstanding stock options and warrants were exercised, stock units were vested, and ESPP shares were issued. 
 Earnings per common share have been computed as follows (dollars in thousands, except per share amounts) : 
 
 Years Ended December 31, 
 2024 2023 2022 
 Net income $ 113,691 $ 122,565 $ 128,311 
 
 Weighted average number of common shares outstanding, basic 56,610,032 55,432,322 55,387,073 
 Dilutive effect of common stock equivalents: 
 Options 753 — 1,632 
 Warrants — 324 1,753 
 RSU awards 662,341 647,217 665,998 
 PSU awards 243,166 151,190 58,206 
 DSU awards 19,956 18,154 15,532 
 ESPP 6,753 6,941 6,970 
 Weighted average number of common shares outstanding, diluted 57,543,001 56,256,148 56,137,164 
 
 Basic earnings per common share $ 2.01 $ 2.21 $ 2.32 
 Diluted earnings per common share 1.98 2.18 2.29 

 Average shares that were excluded from the computation of diluted earnings per common share because their effect would have been anti-dilutive are summarized in the table below for the periods presented: 
 
 Years Ended December 31, 
 2024 2023 2022 
 Anti-dilutive common stock equivalents 
 Options 9,588 21,981 7,792 
 
 RSU awards 3,216 39,445 38,912 
 PSU awards 140,937 106,955 189,000 
 
 Total anti-dilutive common stock equivalents 153,741 168,381 235,704 

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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 22. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) 
 The following table summarizes changes AOCI by component, net of tax (dollars in thousands) : 
 
 Unrealized Gains (Losses) on Debt Securities Available For Sale Unrecognized Gains (Losses) on Debt Securities Held to Maturity Unrealized Gains (Losses) on Cash Flow Hedges Total 
 Balance, December 31, 2021 $ ( 23,073 ) $ — $ ( 685 ) $ ( 23,758 ) 
 Unrealized holding gains (losses), net ( 199,302 ) — ( 20,717 ) ( 220,019 ) 
 Unrecognized losses on debt securities transferred to held to maturity from available for sale — ( 34,644 ) — ( 34,644 ) 
 Amounts reclassified from AOCI, net ( 19 ) — 417 398 
 Amortization of unrecognized losses on securities transferred to held to maturity — 4,745 — 4,745 
 Balance, December 31, 2022 ( 222,394 ) ( 29,899 ) ( 20,985 ) ( 273,278 ) 
 Unrealized holding gains (losses), net 41,824 — ( 1,835 ) 39,989 
 Unrecognized losses on debt securities transferred to held to maturity from available for sale — — — — 
 Amounts reclassified from AOCI, net 3,934 — 6,126 10,060 
 Amortization of unrecognized losses on securities transferred to held to maturity — 4,426 — 4,426 
 Balance, December 31, 2023 ( 176,636 ) ( 25,473 ) ( 16,694 ) ( 218,803 ) 
 Unrealized holding gains (losses), net 6,509 — ( 10,790 ) ( 4,281 ) 
 Unrecognized losses on debt securities transferred to held to maturity from available for sale — — — — 
 Amounts reclassified from AOCI, net 4,447 — 7,679 12,126 
 Amortization of unrecognized losses on securities transferred to held to maturity — 3,919 — 3,919 
 Balance, December 31, 2024 $ ( 165,680 ) $ ( 21,554 ) $ ( 19,805 ) $ ( 207,039 ) 

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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 23. OPERATING SEGMENTS AND RELATED INFORMATION 
 Busey’s reportable segments are determined by its chief executive officer, Van A. Dukeman, who is the designated chief operating decision maker. Busey is organized into three reportable operating segments: Banking, Wealth Management, and FirsTech. These operating segments are strategic business units that are separately managed, as they offer different products and services and have different marketing strategies. 
 To evaluate segment performance and make informed decisions regarding the allocation of capital and personnel to the segments, the chief operating decision maker reviews each segment’s actual revenues, consisting of net interest income plus noninterest income, and net income against budgeted revenues and net income on a monthly basis. This process enables the Company to (1) determine the cost and availability of funds within each business segment, (2) assess the profitability of a specific business segment by aligning relevant costs with revenues, and (3) evaluate each business segment in a way that reflects its economic impact on consolidated earnings. 
 Banking 
 The Banking operating segment provides a full range of banking services to individual and corporate customers through First Busey Corporation’s wholly-owned bank subsidiary, Busey Bank, with 62 banking centers in Illinois; the St. Louis, Missouri, metropolitan area; southwest Florida; and Indianapolis, Indiana. 
 Banking services offered to individual customers include customary types of demand and savings deposits, money transfers, safe deposit services, individual retirement accounts and other fiduciary services, automated teller machines, and technology-based networks, as well as a variety of loan products including residential real estate, home equity lines of credit, and consumer loans. Banking services offered to corporate customers include commercial, CRE, real estate construction, and agricultural loans, as well as commercial depository services such as cash management. 
 Wealth Management 
 The Wealth Management operating segment provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Services are provided through Busey Capital Management, Inc., a wholly-owned subsidiary of Busey Bank, and Busey Wealth Management, a division of Busey Bank. 
 Wealth management services tailored to individuals include trust and estate advisory services and financial planning. Business services include business succession planning and employee retirement plan services. Services for foundations include investment strategy consulting and fiduciary services. 
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 FirsTech 
 The FirsTech operating segment provides comprehensive and innovative payment technology solutions through Busey Bank’s wholly-owned subsidiary, FirsTech. FirsTech's multi-channel payment platform allows businesses to collect payments from their customers in a variety of ways to enable fast, frictionless payments. Payment method vehicles include, but are not limited to, text-based mobile bill pay; interactive voice response; electronic payment concentration delivered to Automated Clearing House networks, money management, and credit card networks; walk-in payment processing for customers at retail pay agents; customer service payments made over a telephone; direct debit services; merchant services referral solutions serving partner Financial Institutions and their business customers; and lockbox remittance processing for customers to make payments by mail. FirsTech also provides additional tools to help clients with billing, reconciliation, bill reminders, and treasury services. 
 FirsTech's client base represents a diverse set of industries, with a higher concentration in highly regulated industries, such as financial institutions, utility, insurance, and telecommunications industries. 
 Segment Financial Information 
 The accounting policies of Busey’s operating segments are the same as those described in the summary of significant accounting policies in “ Note 1. Significant Accounting Policies . ” Busey accounts for intersegment revenue and transfers at current market prices. 
 Goodwill and total assets are detailed below by operating segment. The “other” category included in the tables below consists of the parent company, First Busey Risk Management until its dissolution on December 18, 2023, and the elimination of intercompany transactions (dollars in thousands) : 
 
 As of December 31, 2024 
 Banking Wealth Management FirsTech Other Total 
 Goodwill $ 310,595 $ 14,108 $ 8,992 $ — $ 333,695 
 Total assets 11,856,651 126,180 57,737 6,154 12,046,722 

 
 As of December 31, 2023 
 Banking Wealth Management FirsTech Other Total 
 Goodwill $ 294,773 $ 14,108 $ 8,992 $ — $ 317,873 
 Total assets 12,125,298 103,147 51,600 3,370 12,283,415 

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 Financial results by operating segment, including significant expense categories provided to the chief operating decision maker, are detailed below (dollars in thousands) : 
 
 Year Ended December 31, 2024 
 Banking Wealth Management FirsTech Other Total 
 Interest income $ 523,648 $ — $ — $ 33 $ 523,681 
 Intersegment interest income 324 — 48 ( 372 ) — 
 Interest expense 183,126 — — 17,944 201,070 
 Intersegment interest expense 2,664 — — ( 2,664 ) — 
 Net interest income 338,182 — 48 ( 15,619 ) 322,611 
 Provision for credit losses 8,590 — — — 8,590 
 Net interest income after provision for credit losses 329,592 — 48 ( 15,619 ) 314,021 
 
 
 Noninterest income 
 Wealth management fees — 63,630 — — 63,630 
 Fees for customer services 30,933 — — — 30,933 
 Payment technology solutions — — 21,983 — 21,983 
 All other noninterest income 20,871 1,323 — 942 23,136 
 Intersegment noninterest income 1,402 — 1,071 ( 2,473 ) — 
 Noninterest income 53,206 64,953 23,054 ( 1,531 ) 139,682 
 
 
 Revenue 
 391,388 64,953 23,102 ( 17,150 ) 462,293 
 
 
 Noninterest expense 
 Salaries, wages, and employee benefits 117,730 26,631 10,130 21,128 175,619 
 Data processing 20,631 2,263 3,692 538 27,124 
 Amortization of intangible assets 8,916 1,141 — — 10,057 
 Interchange expense — — 6,001 — 6,001 
 All other noninterest expense 66,433 2,836 2,736 9,593 81,598 
 Intersegment noninterest expense 11,457 3,096 1,443 ( 15,996 ) — 
 Noninterest expense 225,167 35,967 24,002 15,263 300,399 
 
 
 Income (loss) before income taxes 157,631 28,986 ( 900 ) ( 32,413 ) 153,304 
 Income taxes 40,365 6,956 ( 230 ) ( 7,478 ) 39,613 
 Net income $ 117,266 $ 22,030 $ ( 670 ) $ ( 24,935 ) $ 113,691 

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 Year Ended December 31, 2023 
 Banking Wealth Management FirsTech Other Total 
 Interest income $ 480,438 $ — $ — $ 105 $ 480,543 
 Intersegment interest income — — 54 ( 54 ) — 
 Interest expense 140,917 — — 19,005 159,922 
 Intersegment interest expense 3,006 — — ( 3,006 ) — 
 Net interest income 336,515 — 54 ( 15,948 ) 320,621 
 Provision for credit losses 2,399 — — — 2,399 
 Net interest income after provision for credit losses 334,116 — 54 ( 15,948 ) 318,222 
 
 Noninterest income 
 Wealth management fees — 57,309 — — 57,309 
 Fees for customer services 29,044 — — — 29,044 
 Payment technology solutions — — 21,192 — 21,192 
 All other noninterest income 15,337 514 — ( 2,182 ) 13,669 
 Intersegment noninterest income 1,149 — 1,554 ( 2,703 ) — 
 Noninterest income 45,530 57,823 22,746 ( 4,885 ) 121,214 
 
 Revenue 382,045 57,823 22,800 ( 20,833 ) 441,835 
 
 Noninterest expense 
 Salaries, wages, and employee benefits 111,834 24,474 8,522 17,767 162,597 
 Data processing 18,217 1,937 3,013 541 23,708 
 Amortization of intangible assets 8,963 1,469 — — 10,432 
 Interchange expense — — 6,864 — 6,864 
 All other noninterest expense 71,259 2,503 2,154 6,015 81,931 
 Intersegment noninterest expense 13,178 2,698 1,100 ( 16,976 ) — 
 Noninterest expense 223,451 33,081 21,653 7,347 285,532 
 
 Income (loss) before income taxes 156,195 24,742 1,147 ( 28,180 ) 153,904 
 Income taxes 32,342 5,938 317 ( 7,258 ) 31,339 
 Net income $ 123,853 $ 18,804 $ 830 $ ( 20,922 ) $ 122,565 

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 Year Ended December 31, 2022 
 Banking Wealth Management FirsTech Other Total 
 Interest income $ 360,126 $ — $ — $ 50 $ 360,176 
 Intersegment interest income — — 65 ( 65 ) — 
 Interest expense 18,694 — 17,854 36,548 
 Intersegment interest expense 1,159 — — ( 1,159 ) — 
 Net interest income 340,273 — 65 ( 16,710 ) 323,628 
 Provision for credit losses 4,623 — — — 4,623 
 Net interest income after provision for credit losses 335,650 — 65 ( 16,710 ) 319,005 
 
 Noninterest income 
 Wealth management fees — 55,378 — — 55,378 
 Fees for customer services 33,111 — — — 33,111 
 Payment technology solutions — — 20,067 — 20,067 
 All other noninterest income 19,890 16 ( 3 ) ( 1,846 ) 18,057 
 Intersegment noninterest income 962 — 1,656 ( 2,618 ) — 
 Noninterest income 53,963 55,394 21,720 ( 4,464 ) 126,613 
 
 Revenue 394,236 55,394 21,785 ( 21,174 ) 450,241 
 
 Noninterest expense 
 Salaries, wages, and employee benefits 107,159 22,993 7,899 20,965 159,016 
 Data processing 16,420 1,962 2,721 545 21,648 
 Amortization of intangible assets 9,831 1,797 — — 11,628 
 Interchange expense — — 6,298 — 6,298 
 All other noninterest expense 73,544 2,593 2,415 6,739 85,291 
 Intersegment noninterest expense 15,042 2,200 1,286 ( 18,528 ) — 
 Noninterest expense 221,996 31,545 20,619 9,721 283,881 
 
 Income (loss) before income taxes 167,617 23,849 1,166 ( 30,895 ) 161,737 
 Income taxes 36,021 5,306 319 ( 8,220 ) 33,426 
 Net income $ 131,596 $ 18,543 $ 847 $ ( 22,675 ) $ 128,311 

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 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 NOTE 24. PARENT COMPANY ONLY FINANCIAL INFORMATION 
 Condensed financial data for First Busey Corporation is presented below. 
 CONDENSED BALANCE SHEETS 
 (dollars in thousands) 
 
 As of December 31, 
 2024 2023 
 Assets 
 Cash and cash equivalents $ 73,484 $ 100,098 
 Debt securities — 987 
 Equity securities 10,295 9,364 
 Investments in subsidiaries: 
 Bank 1,584,264 1,478,118 
 
 Premises and equipment, net 11 7 
 Other assets 29,859 20,100 
 Total assets $ 1,697,913 $ 1,608,674 
 
 Liabilities and stockholders' equity 
 Liabilities: 
 Short-term borrowings $ — $ 12,000 
 Long-term debt — 18,000 
 
 Subordinated notes, net of unamortized issuance costs 227,723 222,882 
 Junior subordinated debentures owed to unconsolidated trusts 74,815 71,993 
 Other liabilities 12,106 11,818 
 Total liabilities 314,644 336,693 
 
 Total stockholders' equity 1,383,269 1,271,981 
 Total liabilities and stockholders' equity $ 1,697,913 $ 1,608,674 

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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 CONDENSED STATEMENTS OF INCOME 
 (dollars in thousands) 
 
 Years Ended December 31, 
 2024 2023 2022 
 Operating income 
 Dividends from subsidiaries: 
 Bank $ 100,000 $ 90,000 $ 95,000 
 Non-bank — 900 1,630 
 Income from dissolution of non-bank subsidiary — 733 — 
 Interest income 2,325 2,956 1,094 
 Gains (losses) recognized on equity securities, net 931 ( 2,171 ) ( 2,159 ) 
 Other income 14,641 14,130 15,195 
 Total operating income 117,897 106,548 110,760 
 
 Expense 
 Salaries, wages, and employee benefits 21,129 17,766 20,964 
 Interest expense 17,944 19,005 17,854 
 Operating expense 11,238 8,009 7,294 
 Total expense 50,311 44,780 46,112 
 
 Income (loss) before income tax benefit and equity in undistributed (in excess of) net income of subsidiaries 67,586 61,768 64,648 
 Income tax benefit 7,480 7,310 8,286 
 Income (loss) before equity in undistributed (in excess of) net income of subsidiaries 75,066 69,078 72,934 
 
 Equity in undistributed (in excess of) net income of subsidiaries 
 Bank 38,625 53,487 55,986 
 Non-bank — — ( 609 ) 
 Net income $ 113,691 $ 122,565 $ 128,311 

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 Table of Contents Contents of Item 8. Financial Statements & Supplementary Data 
 
 
 FIRST BUSEY CORPORATION 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

 CONDENSED STATEMENTS OF CASH FLOWS 
 (dollars in thousands) 
 
 Years Ended December 31, 
 2024 2023 2022 
 Cash flows provided by (used in) operating activities 
 Net income $ 113,691 $ 122,565 $ 128,311 
 Adjustments to reconcile net income to net cash provided by (used in) operating activities: 
 Depreciation and amortization 1,163 1,038 1,423 
 Distributions more (less) than net income of subsidiaries ( 38,625 ) ( 53,487 ) ( 55,377 ) 
 (Gains) losses recognized on equity securities, net ( 931 ) 2,171 2,159 
 Stock-based compensation 7,726 6,595 8,968 
 (Increase) decrease in other assets ( 8,848 ) 6,253 ( 17,754 ) 
 Increase (decrease) in other liabilities 365 ( 7,687 ) 21,233 
 Net cash provided by (used in) operating activities 74,541 77,448 88,963 
 
 Cash flows provided by (used in) investing activities 
 Sales (purchases) of equity securities, net 995 — 598 
 Net cash paid for acquisitions ( 14,623 ) — — 
 Purchases of premises and equipment ( 9 ) — ( 9 ) 
 Repayments of investments in subsidiaries — 1,480 — 
 Net cash provided by (used in) investing activities ( 13,637 ) 1,480 589 
 
 Cash flows provided by (used in) financing activities 
 Cash paid for withholding taxes on stock-based payments ( 1,755 ) ( 1,093 ) ( 1,276 ) 
 Cash dividends paid ( 54,169 ) ( 53,076 ) ( 50,863 ) 
 Repayments of borrowings ( 31,450 ) ( 12,000 ) ( 112,000 ) 
 Proceeds from issuance of debt — — 98,094 
 Proceeds from the exercise of stock options and warrants ( 3 ) 9 — 
 
 Purchase of treasury stock — ( 4,482 ) ( 9,912 ) 
 Common stock issuance costs ( 141 ) — — 
 Net cash provided (used in) by financing activities ( 87,518 ) ( 70,642 ) ( 75,957 ) 
 
 Net increase (decrease) in cash and cash equivalents ( 26,614 ) 8,286 13,595 
 Cash and cash equivalents, beginning of period 100,098 91,812 78,217 
 
 Cash and cash equivalents, ending of period $ 73,484 $ 100,098 $ 91,812 

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 Table of Contents 

 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 
 None.
FIRST BUSEY CORP /NV/ 10-K

Item 8. Financial Statements and Supplementary Data
