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Item 7. Management’s Discussion and Analysis

2026-02-26 compared with 2025-02-27 · 503 added, 343 removed, 720 unchanged (54% of the section changed)

4 unchanged sentences

BUSEY’S CONSERVATIVE BANKING STRATEGY

Busey executed a two-part balance sheet repositioning strategy in 2024

CRITICAL ACCOUNTING ESTIMATES

2 unchanged sentences

RESULTS OF OPERATIONS — THREE YEARS ENDED DECEMBER 31, 2025

Non-GAAP Adjusting Items and Non-GAAP Measures

Operating Performance Metrics

12 unchanged sentences

EFFECTS OF INFLATION

First Busey Corporation (BUSE) | 2024 — 51

Table of Contents Contents of Item 7.

SCOPE OF DISCUSSION

5 unchanged sentences

Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of Busey's 2024 Annual Report .

First Busey Corporation (BUSE) | 2025 — 53

Contents of Item 7.

BUSEY’S CONSERVATIVE BANKING STRATEGY

1 unchanged sentence

The quality of Busey’s core deposit 1 franchise is a critical value driver of the institution.

Busey remains substantially core deposit 1 funded, with robust liquidity and significant market share in the communities Busey serves.

Busey remains substantially core deposit funded, with robust liquidity.

As of December 31, 2025, Busey’s loan to deposit ratio was 91.0% and core deposits 1 represented 93.7% of total deposits.

Furthermore, Busey has sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of its customers.

Busey’s credit performance reflects its highly diversified, conservatively underwritten loan portfolio, which has been originated predominantly to established customers with tenured relationships with Busey.

Busey’s credit performance reflects its highly diversified, conservatively underwritten loan portfolio.

Busey’s approach to lending and its underwriting standards are designed to emphasize relationship banking rather than transactional banking.

In addition, as a matter of both policy and practice, Busey limits concentration exposures in any particular loan segment.

As a result, asset quality remains strong by both Busey’s historical and current industry trends.

While impacted by loans acquired as a result of the CrossFirst acquisition, asset quality remains strong by both Busey’s historical and current industry trends.

Busey’s conservative banking strategy is reflected in the strength of its capital base.

1 unchanged sentence

At December 31, 2025, Busey’s leverage ratio of Tier 1 capital to average assets was 11.9%, its common equity Tier 1 capital to risk weighted assets ratio was 12.4%, and its total capital to risk weighted assets ratio was 15.9%.

Busey executed a two-part balance sheet repositioning strategy in 2024

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 a pre-tax gain of $7.7 million, which enabled Busey to sell available-for-sale investment securities with a book value of approximately $108.2 million for a pre-tax loss of $6.8 million with no resulting negative impact to tangible capital.

At the time of the sale, the securities sold yielded a weighted average rate of 1.98% and had a weighted-average life of 2.3 years.

CRITICAL ACCOUNTING ESTIMATES

2 unchanged sentences

Significant Accounting Policies ” in the Notes to the Consolidated Financial Statements .

1 Core deposits is a non-GAAP financial measure.

For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, see “ Item 1.

Business—Non-GAAP Financial Information.

First Busey Corporation (BUSE) | 2024 — 52

Table of Contents Contents of Item 7.

Critical accounting estimates are those that are critical to the portrayal and understanding of Busey’s financial condition and results of operations and require management to make assumptions that are subjective or complex.

13 unchanged sentences

Thus, the determination of which loans are PCD and non-PCD can have a significant effect on the accounting for these loans.

Goodwill represents the excess of purchase price over the fair value of net assets acquired using the acquisition method of accounting.

1 Core deposits is a non-GAAP financial measure.

For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures, see “ Item 1.

Business—Non-GAAP Financial Information.

First Busey Corporation (BUSE) | 2025 — 54

Contents of Item 7.

Goodwill represents the excess of the purchase price over the fair value of net assets acquired using the acquisition method of accounting.

Goodwill is not amortized;

instead, Busey assesses the potential for impairment on an annual basis or more frequently if events and circumstances indicate that goodwill might be impaired.

Management applies significant judgement when testing goodwill for impairment, such as the valuation approach chosen, market multiples for competitors used in the calculation, and forecasts of business outlook.

Busey is subject to the income tax laws of U.S., as well as the tax laws of the individual states and municipalities in which the Company conducts its operations.

Management applies significant judgment when testing goodwill for impairment, such as the valuation approach chosen, market multiples for competitors used in the calculation, and forecasts of business outlook.

Busey is subject to the income tax laws of the U.S., as well as the tax laws of the individual states and municipalities in which the Company conducts its operations.

These laws are often complex and subject to nuanced interpretations.

4 unchanged sentences

Estimated income tax expense is reported on the Consolidated Statements of Income .

First Busey Corporation (BUSE) | 2024 — 53

Table of Contents Contents of Item 7.

In establishing its provision for income taxes and its estimates of deferred tax assets and liabilities, Busey must make judgments and interpretations about the application of inherently complex tax laws.

13 unchanged sentences

On a case-by-case basis, Busey may conclude that a loan should be evaluated on an individual basis based on disparate risk characteristics.

Loans deemed uncollectible are charged against and reduce the ACL.

Loans deemed uncollectible are charged-off against and reduce the ACL.

A provision for credit losses is charged to current expense and acts to replenish the ACL in order to maintain the ACL at a level that management deems adequate.

First Busey Corporation (BUSE) | 2025 — 55

Contents of Item 7.

Determining the ACL involves significant judgments and assumptions.

8 unchanged sentences

First Busey Corporation (BUSE) | 2025 — 56

Table of Contents Contents of Item 7.

Contents of Item 7.

RESULTS OF OPERATIONS — THREE YEARS ENDED DECEMBER 31, 2025

Results of Busey’s operations are presented below, segregated by operating segment (dollars in thousands) :

Results of Busey’s operations are presented below, segregated by operating segment:

Years Ended December 31,

2024 2023 2022

(dollars in thousands) 2025 2024 2023

Banking $ 150,342 $ 117,266 $ 123,853

3 unchanged sentences

Net income $ 135,262 $ 113,691 $ 122,565

First Busey Corporation (BUSE) | 2025 — 57

Contents of Item 7.

Non-GAAP Adjusting Items and Non-GAAP Measures

Busey views certain non-operating items, including acquisition-related expenses, restructuring charges, and nonrecurring strategic events, as adjustments to net income reported under GAAP.

Busey also adjusts for net securities gains and losses to align with industry and research analyst reporting.

The objective of Busey’s presentation of adjusted earnings and adjusted earnings metrics is to allow investors and analysts to more clearly identify quarterly trends in core earnings performance.

Pre-tax non-GAAP adjustments were as follows:

Years Ended December 31,

(dollars in thousands) 2025 2024 2023

Pre-tax non-GAAP adjusting items by income/expense category

Realized net (gains) losses on the sale of mortgage servicing rights

$ — $ (7,724) $ —

Net securities (gains) losses

10,726 6,102 2,199

Other noninterest income

Provision for credit losses

Salaries, wages, and employee benefits

37,072 1,580 3,760

Data processing

Net occupancy expense of premises

Furniture and equipment expenses

Professional fees

8,100 4,891 435

Other noninterest expense

2,413 987 133

Total pre-tax non-GAAP adjustments

$ 115,021 $ 6,518 $ 6,527

Non-GAAP adjusting items by business objective

Balance sheet repositioning 1

$ — $ (7,724) $ —

Net securities (gains) losses 1

10,726 6,102 2,199

Initial provision for credit losses 2

Other acquisition (income) expenses 3

54,736 6,901 357

Restructuring expenses 4

(43) 1,239 3,971

Total pre-tax non-GAAP adjustments $ 115,021 $ 6,518 $ 6,527

___________________________________________

During the year ended December 31, 2024, Busey executed a two-part balance sheet repositioning strategy in which it sold mortgage servicing rights on approximately $923.5 million of one-to-four family mortgage loans for a pre-tax gain of $7.7 million and sold available-for-sale debt securities with a book value of approximately $108.2 million for a pre-tax loss of $6.8 million.

During the year ended December 31, 2025, in connection with the CrossFirst acquisition, Busey’s recorded expense for the initial provision for credit losses consisting of a Day 2 provision for loan losses of $42.4 million, a Day 2 provision for unfunded commitments of $3.1 million, and an adjustment to the initial provision for unfunded commitments of $4.0 million that was recorded based on revised estimates resulting from implementation of a new CECL model.

Other acquisition expenses related to the acquisition of CrossFirst, which was completed on March 1, 2025, and the acquisition of M&M, which was completed on April 1, 2024.

Restructuring expenses were related to previously disclosed restructuring and efficiency plans and to corporate strategy advisement.

A reconciliation of non-GAAP measures, which Busey believes facilitates the assessment of its financial results and peer comparability, is included in tabular form in this Annual Report.

See “ Item 1.

Business—Non-GAAP Financial Information .

First Busey Corporation (BUSE) | 2025 — 58

Contents of Item 7.

Operating Performance Metrics

Operating performance metrics presented in the table below have been derived from information used by management to monitor and manage Busey’s financial performance (dollars in thousands, except per share amounts) :

Operating performance metrics presented in the table below have been derived from information used by management to monitor and manage Busey’s financial performance:

Years Ended December 31,

(dollars in thousands, except per share amounts)

2025 2024 2023

Net income (GAAP)

$ 135,262 $ 113,691 $ 122,565

1 unchanged sentence

$ 224,974 $ 120,033 $ 127,763

Net income available to common stockholders (GAAP)

$ 125,386 $ 113,691 $ 122,565

Adjusted net income available to common stockholders (Non-GAAP) 1

$ 215,098 $ 120,033 $ 127,763

Diluted earnings per common share

19 unchanged sentences

___________________________________________

See “ Item 1.

Business—Non-GAAP Financial Information .”

First Busey Corporation (BUSE) | 2024 — 55

Table of Contents Contents of Item 7.

Non-Operating Expenses and Non-GAAP Measures

Busey views certain non-operating items, such as acquisition-related expenses and restructuring charges, as adjustments to net income reported under GAAP.

Non-operating pretax adjustments were as follows for the periods presented (dollars in thousands) :

Years Ended December 31,

2024 2023 2022

Non-operating expenses

Salaries, wages, and employee benefits

$ 1,580 $ 3,760 $ 2,996

Data processing

Net occupancy expense of premises and furniture and equipment expenses

Professional fees

4,891 435 312

Other noninterest expense

987 133 1,015

Total non-operating expenses

$ 8,140 $ 4,328 $ 4,537

Non-operating expenses by business objective

Acquisition expenses 1

$ 6,901 $ 357 $ 1,059

Restructuring expenses 2

1,239 3,971 3,478

Acquisition and restructuring expenses

$ 8,140 $ 4,328 $ 4,537

___________________________________________

Acquisition expenses in 2024 were related to the acquisition of M&M, which was completed on April 1, 2024, as well as the planned merger with CrossFirst.

For 2023, acquisition expenses were related to the then planned acquisition of M&M, as well as to exploratory costs.

For 2022, acquisition expenses related to the integration of Cummins-American Corp.

and its wholly-owned subsidiary, Glenview State Bank, following completion of this acquisition in 2021, as well as to exploratory costs.

Restructuring expenses were related to previously disclosed restructuring and efficiency plans and to corporate strategy advisement.

A reconciliation of non-GAAP measures, which Busey believes facilitates the assessment of its financial results and peer comparability, is included in tabular form in this Annual Report.

See “ Item 1.

Business—Non-GAAP Financial Information .

For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see “ Item 1.

Business—Non-GAAP Financial Information ” included in this Annual Report.

Beginning in 2025, Busey revised its calculation of adjusted net income for all periods presented to include, as applicable, adjustments for net securities gains and losses, realized net gains and losses on the sale of mortgage servicing rights, and non-recurring deferred tax adjustments.

Beginning in 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses, affecting the calculation of pre-provision net revenue and related measures and ratios.

Net Interest Income

7 unchanged sentences

In addition to yield, various other risks are factored into the evaluation process.

Consolidated Average Balance Sheets and Interest Rates

The table below presents Busey’s Consolidated Average Balance Sheets, detailing average balances for each major category of assets and liabilities, the interest income earned on interest-earning assets, the interest expense paid for interest-bearing liabilities, and the related interest yields for the periods indicated.

Average information is provided on a daily average basis (dollars in thousands) :

First Busey Corporation (BUSE) | 2025 — 59

Table of Contents Contents of Item 7.

Years Ended December 31,

2024 2023 2022

Contents of Item 7.

The tables below present Busey’s Consolidated Average Balance Sheets, summarizing average balances for each major category of assets and liabilities, the interest income earned on interest-earning assets, the interest expense paid for interest-bearing liabilities, and the related interest yields for the periods indicated.

Average information is provided on a daily average basis:

First Busey Corporation (BUSE) | 2025 — 60

Contents of Item 7.

Year Ended December 31, 2025

(dollars in thousands) Average

Balance Income/

Expense Yield/

Interest-bearing bank deposits and federal funds sold

$ 575,781 $ 24,633 4.28 %

Investment securities:

Government obligations

96,287 4,782 4.97 %

Obligations of states and political subdivisions

233,027 9,670 4.15 %

Other securities

2,596,463 76,881 2.96 %

Restricted bank stock

65,988 2,956 4.48 %

Loans held for sale

7,257 440 6.06 %

Portfolio loans 1, 2

12,756,937 777,474 6.09 %

Total interest-earning assets 1, 3

16,331,740 $ 896,836 5.49 %

Cash and due from banks

Premises and equipment

Liabilities and stockholders’ equity

Interest-bearing transaction deposits

$ 3,076,961 $ 56,233 1.83 %

Savings and money market deposits

5,738,073 154,300 2.69 %

Time deposits

2,471,023 92,456 3.74 %

Federal funds purchased and repurchase agreements

149,916 3,708 2.47 %

242,225 12,064 4.98 %

Junior subordinated debt issued to unconsolidated trusts

76,816 5,490 7.15 %

Total interest-bearing liabilities

11,755,014 $ 324,251 2.76 %

Net interest spread 1

Noninterest-bearing deposits

Other liabilities

Stockholders’ equity

Total liabilities and stockholders’ equity

Interest income / earning assets 1, 3

$ 16,331,740 $ 896,836 5.49 %

Interest expense / earning assets

16,331,740 324,251 1.98 %

Net interest margin 1

$ 572,585 3.51 %

___________________________________________

On a tax-equivalent basis, assuming a federal income tax rate of 21.0%.

Non-accrual loans have been included in average portfolio loans.

Interest income includes tax-equivalent adjustments of $3.0 million.

Borrowings include, as applicable, short-term borrowings, long-term borrowings, senior notes, and subordinated notes.

Interest expense includes a non-usage fee on the revolving credit facility.

First Busey Corporation (BUSE) | 2025 — 61

Contents of Item 7.

Year Ended December 31, 2024

(dollars in thousands) Average

Balance Income/

Expense Yield/

Interest-bearing bank deposits and federal funds sold

$ 445,881 $ 22,441 5.03 %

Investment securities:

Government obligations

5,495 158 2.88 %

Obligations of states and political subdivisions

153,467 4,338 2.83 %

Other securities

2,567,526 69,786 2.72 %

Restricted bank stock

14,414 848 5.88 %

Loans held for sale

8,012 503 6.28 %

Portfolio loans 1, 2

7,804,629 427,300 5.47 %

Total interest-earning assets 1, 3

10,999,424 $ 525,374 4.78 %

Cash and due from banks

Premises and equipment

Liabilities and stockholders’ equity

Interest-bearing transaction deposits

$ 2,469,664 $ 42,925 1.74 %

Savings and money market deposits

3,246,507 74,536 2.30 %

Time deposits

1,584,953 61,002 3.85 %

Federal funds purchased and repurchase agreements

147,786 4,308 2.92 %

240,137 13,651 5.68 %

Junior subordinated debt issued to unconsolidated trusts

74,037 4,648 6.28 %

Total interest-bearing liabilities

7,763,084 $ 201,070 2.59 %

Net interest spread 1

Noninterest-bearing deposits

Other liabilities

Stockholders’ equity

Total liabilities and stockholders’ equity

Interest income / earning assets 1, 3

$ 10,999,424 $ 525,374 4.78 %

Interest expense / earning assets

10,999,424 201,070 1.83 %

Net interest margin 1

$ 324,304 2.95 %

___________________________________________

On a tax-equivalent basis, assuming a federal income tax rate of 21.0%.

Non-accrual loans have been included in average portfolio loans.

Interest income includes tax-equivalent adjustments of $1.7 million.

Borrowings include, as applicable, short-term borrowings, long-term borrowings, senior notes, and subordinated notes.

Interest expense includes a non-usage fee on the revolving credit facility.

First Busey Corporation (BUSE) | 2025 — 62

Contents of Item 7.

Year Ended December 31, 2023

(dollars in thousands) Average

Balance Income/

1 unchanged sentence

Interest-bearing bank deposits and federal funds sold

$ 214,422 $ 10,531 4.91 %

Investment securities:

Government obligations

79,669 578 0.73 %

Obligations of states and political subdivisions

1 unchanged sentence

Other securities

2,875,769 76,568 2.66 %

Restricted bank stock

16,416 1,170 7.13 %

Loans held for sale

1,885 116 6.13 %

Portfolio loans 1, 2

4 unchanged sentences

Premises and equipment

ACL (89,369) (92,991) (89,387)

Other assets 910,753 917,104 850,038

Total assets $ 12,051,871 $ 12,246,218 $ 12,492,948

Liabilities and stockholders’ equity

Interest-bearing transaction deposits

$ 2,775,045 $ 43,268 1.56 %

Savings and money market deposits

2,870,397 37,038 1.29 %

Time deposits

1,406,928 43,679 3.10 %

Federal funds purchased and repurchase agreements

200,894 5,203 2.59 %

500,301 26,881 5.37 %

Junior subordinated debt issued to unconsolidated trusts

71,894 3,853 5.36 %

Total interest-bearing liabilities

Net interest spread 1

7,825,459 $ 159,922 2.04 %

Net interest spread 1

Noninterest-bearing deposits

5 unchanged sentences

Interest expense / earning assets

11,181,010 159,922 1.43 %

Net interest margin 1

3 unchanged sentences

Non-accrual loans have been included in average portfolio loans.

Interest income includes tax-equivalent adjustments of $1.7 million for 2024, $2.2 million for each of 2023 and 2022.

Interest income includes an immaterial amount of fees, net of deferred costs, related to Paycheck Protection Program loans for 2024 and 2023, and $1.9 million for 2022.

Interest income includes tax-equivalent adjustments of $2.2 million.

Borrowings include short-term borrowings, long-term debt, senior notes, and subordinated notes.

1 unchanged sentence

First Busey Corporation (BUSE) | 2025 — 63

Table of Contents Contents of Item 7.

The following table presents, for the major components of interest-earning assets and interest-bearing liabilities, a breakout of changes in interest income and interest expense attributable to (1) changes in average volume and (2) changes in average yield.

For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately, based on changes due to rate and changes due to volume (dollars in thousands) :

Contents of Item 7.

The following tables present, for the major components of interest-earning assets and interest-bearing liabilities, a breakout of changes in interest income and interest expense attributable to (1) changes in average volume and (2) changes in average yield.

For purposes of this table, changes attributable to both rate and volume, which cannot be segregated, have been allocated proportionately, based on changes due to rate and changes due to volume:

Years Ended December 31,

2023 Change Due To 2023 vs.

2024 Change Due To

(dollars in thousands) Average

Volume Average

Yield/Rate Total

Change Average

Increase (decrease) in interest income

Interest-bearing bank deposits and federal funds sold $ 5,891 $ (3,699) $ 2,192

Investment securities:

Government obligations 4,429 195 4,624

Obligations of state and political subdivisions 2,802 2,530 5,332

Other securities 794 6,301 7,095

Restricted bank stock 2,356 (248) 2,108

Loans held for sale (46) (17) (63)

Portfolio loans 297,176 52,998 350,174

Change in interest income 313,402 58,060 371,462

Increase (decrease) in interest expense

Interest-bearing transaction deposits 11,005 2,303 13,308

Savings and money market deposits 68,504 11,260 79,764

Time deposits 33,198 (1,744) 31,454

Federal funds purchased and repurchase agreements 61 (661) (600)

Borrowings 132 (1,719) (1,587)

Junior subordinated debt owed to unconsolidated trusts 180 662 842

Change in interest expense 113,080 10,101 123,181

Increase (decrease) in net interest income $ 200,322 $ 47,959 $ 248,281

Percentage increase (decrease) in net interest income over prior period 76.6 %

First Busey Corporation (BUSE) | 2025 — 64

Contents of Item 7.

Years Ended December 31,

2023 Change Due To

(dollars in thousands) Average

Volume Average

20 unchanged sentences

Percentage increase (decrease) in net interest income over prior period 0.5 %

First Busey Corporation (BUSE) | 2024 — 58

Table of Contents Contents of Item 7.

Notable changes in average assets and average liabilities are summarized as follows for the periods presented (dollars in thousands) :

Notable changes in average assets and average liabilities are summarized as follows for the periods presented:

Years Ended December 31,

2024 2023 Change % Change

(dollars in thousands) 2025 2024 Change % Change

Average interest-earning assets $ 16,331,740 $ 10,999,424 $ 5,332,316 48.5 %

5 unchanged sentences

Total average deposits as a percent of total average liabilities 95.4 % 93.7 % 170 bps

Changes in net interest income and net interest margin are summarized as follows for the periods presented (dollars in thousands) :

First Busey Corporation (BUSE) | 2025 — 65

Contents of Item 7.

Changes in net interest income and net interest margin are summarized as follows for the periods presented:

Years Ended December 31,

2024 2023 Change % Change

(dollars in thousands) 2025 2024 Change % Change

Net interest income

9 unchanged sentences

Net interest income expressed as a percentage of average earning assets, stated on a tax-equivalent basis.

After raising federal funds rates by a total of 525 bps between March 2022 and July 2023, the FOMC lowered rates by 100 bps beginning in September 2024.

During 2024, in anticipation of the FOMC pivot to an easing cycle, Busey limited its exposure to term funding structures and intentionally priced savings specials to encourage maturing CD balances to migrate to managed rate non-maturity products.

Beginning in September 2024 Busey began lowering rates on special priced deposit accounts and other managed rate products to benefit from the FOMC rate cuts.

Busey continues to offer CD specials with shorter term structures as well as offering attractive premium savings rates to encourage rotation of maturing CD deposits into nimble pricing products.

Beginning in the second quarter of 2024, Busey also saw the full benefit of the December 2023 and March 2024 targeted balance sheet repositioning in its net interest margin.

Busey continues to evaluate and execute off-balance sheet hedging and balance sheet strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments.

Stability in core deposit balances, as well as retail time deposit and savings specials, have continued to provide sufficient funding flows to allow intentional runoff of brokered and high-cost, non-relationship funding.

Net interest spread represents the difference between the average rate earned on earning assets and the average rate paid on interest-bearing liabilities, and is presented in the table below for the periods indicated:

5 unchanged sentences

Calculated on a tax-equivalent basis.

First Busey Corporation (BUSE) | 2024 — 59

Table of Contents Contents of Item 7.

The net interest margin discussion above is based upon the results and average balances for the years ended December 31, 2024, 2023, and 2022.

Annualized net interest margins for the quarterly periods indicated were as follows:

5 unchanged sentences

Management attempts to mitigate the effects of an unpredictable interest-rate environment through effective portfolio management, prudent loan underwriting and pricing discipline, and operational efficiencies.

First Busey Corporation (BUSE) | 2025 — 66

Contents of Item 7.

Noninterest Income

Changes in noninterest income are summarized in the tables below for the periods presented (dollars in thousands) :

Changes in noninterest income are summarized in the tables below for the periods presented:

Years Ended December 31,

2024 2023 Change % Change

(dollars in thousands) 2025 2024 Change % Change

Noninterest income

Wealth management and payment technology solutions income:

Wealth management fees $ 69,426 $ 63,630 $ 5,796 9.1 %

Payment technology solutions 20,000 21,983 (1,983) (9.0) %

Combined, wealth management fees and payment technology solutions 85,613 78,501 7,112 9.1 %

Fees for customer services 30,933 29,044 1,889 6.5 %

Treasury management services

17,322 8,377 8,945 106.8 %

Card services and ATM fees

18,048 13,424 4,624 34.4 %

Other service charges on deposit accounts

6,281 9,440 (3,159) (33.5) %

Mortgage revenue 2,565 2,075 490 23.6 %

2 unchanged sentences

Securities income:

Realized net gains (losses) on securities (7,033) (28) (7,005) NM

Realized net gains (losses) on securities (15,242) (7,033) (8,209) (116.7) %

Unrealized net gains (losses) recognized on equity securities 4,516 931 3,585 385.1 %

3 unchanged sentences

Assets under care as of period end $ 15,657,269 $ 13,833,654 $ 1,823,615 13.2 %

First Busey Corporation (BUSE) | 2024 — 60

Table of Contents Contents of Item 7.

Total noninterest income was $150.0 million for the year ended December 31, 2025, an increase of 7.4% when compared with $139.7 million for the year ended December 31, 2024.

Total noninterest income represented 20.8% of total revenue 2 in 2025, compared to 30.2% in 2024.

Wealth management fees increased by 11.0% to $63.6 million in 2024, compared to $57.3 million in 2023.

The year ended December 31, 2025, includes ten months of income from the CrossFirst acquisition.

Revenues from wealth management fees and payment technology solutions provide a complement to spread-based revenue from traditional banking activities.

Wealth management fees increased by 9.1% to $69.4 million for 2025, compared to $63.6 million for 2024.

Busey’s Wealth Management division had $15.66 billion in assets under care as of December 31, 2025, compared to $13.83 billion as of December 31, 2024.

Busey’s portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets.

Payment technology solutions revenue relates to Busey’s payment processing company, FirsTech.

Payment technology solutions revenue increased by 3.7% to $22.0 million in 2024, compared to $21.2 million in 2023.

Results for 2024 marked a new record high reported annual revenue for FirsTech.

Combined, revenues from wealth management fees and payment technology solutions represented 61.3% and 64.8% of Busey’s noninterest income for the years ended December 31, 2024, and December 31, 2023, respectively, providing a complement to spread-based revenue from traditional banking activities.

On a combined basis, revenue from these two critical operating areas was $85.6 million for the year ended December 31, 2024, a 9.1% increase from $78.5 million for the year ended December 31, 2023.

Fees for customer services increased by 6.5% to $30.9 million in 2024, compared to $29.0 million in 2023.

Mortgage revenue was $2.1 million in 2024, compared to $1.1 million in 2023.

Increases were primarily related to sold-loan mortgage volume.

General economic conditions and interest rate volatility may impact future mortgage revenue.

Income on bank owned life insurance increased by 9.1% to $5.1 million in 2024, compared to $4.7 million in 2023, resulting from a $0.1 million increase in earnings on death proceeds and a $0.3 million increase in the cash surrender value of the insurance policies.

A realized gain on the sale of mortgage servicing rights of $7.7 million was recognized in connection with Busey’s strategic two-part balance sheet repositioning completed during 2024.

Busey sold the mortgage servicing rights on approximately $923.5 million of one- to four-family mortgage loans, which enabled Busey to sell available for sale investment securities with a book value of approximately $108.2 million for a pre-tax loss of $6.8 million with no resulting negative impact to tangible capital.

Other income increased by 42.0% to $14.3 million in 2024, compared to $10.1 million in 2023.

Increases in other income were primarily attributable to increases in commercial loan sales gains and venture capital income, as well as the addition of Life Equity Loan ® servicing income beginning in the second quarter of 2024.

Income from payment technology solutions derives from Busey’s payment processing company, FirsTech.

This income decreased by 9.0% to $20.0 million for 2025, compared to $22.0 million for 2024, primarily due to decreases in income from online bill payments.

Treasury management services consist primarily of business analysis charges and wire transfer fees on commercial accounts.

Income from treasury management services increased by 106.8% compared to 2024 due to the addition of CrossFirst commercial services.

Card services and ATM fees, which include both commercial and consumer accounts, increased by 34.4% compared to 2024 primarily due to the addition of CrossFirst corporate card services.

2 Total revenue consists of net interest income plus noninterest income.

First Busey Corporation (BUSE) | 2025 — 67

Table of Contents Contents of Item 7.

Contents of Item 7.

Other service charges on deposit accounts were $6.3 million for the year ended December 31, 2025, a decline of 33.5% from the comparable period in 2024.

Declines were largely related to lower non-sufficient fund charges, reflecting changes Busey made to its fee structure in 2025.

Mortgage revenue was $2.6 million for 2025, compared to $2.1 million for 2024.

General economic conditions and interest rate volatility may impact future mortgage revenue.

Income on bank owned life insurance increased by 28.6% to $6.6 million for 2025, compared to $5.1 million for 2024, resulting from a $1.9 million increase in the cash surrender value of the insurance policies partially offset by a $0.4 million decrease in earnings on death proceeds.

During the year ended December 31, 2025, Busey did not record any realized gains on the sale of mortgage servicing rights.

In comparison, during the year ended December 31, 2024, Busey recognized a $7.7 million gain on the sale of mortgage servicing rights in connection with a strategic two-part balance sheet repositioning.

For more information, see “ Busey executed a two-part balance sheet repositioning strategy ” in the Management Discussion and Analysis included in Busey’s Quarterly Report for the first quarter of 2024, filed with the SEC on May 7, 2024.

Net securities losses of $10.7 million during the year ended December 31, 2025, were greater than the net securities losses realized during the comparable period in 2024.

Losses for the year ended December 31, 2025, were comprised of $15.2 million of realized net losses on securities resulting from a strategic balance sheet repositioning completed in the first quarter of 2025, partially offset by unrealized net gains on Busey’s approximately 3% equity ownership of a financial institution that was the target of an acquisition at a significant market premium.

Other income increased by 46.1% to $20.5 million for 2025, compared to $14.0 million for 2024.

Increases in other income were primarily attributable to increases in commercial loan servicing income and swap origination fees.

First Busey Corporation (BUSE) | 2025 — 68

Contents of Item 7.

Noninterest Expense

Changes in noninterest expense are summarized in the tables below for the periods presented (dollars in thousands) :

Changes in noninterest expense are summarized in the tables below for the periods presented:

Years Ended December 31,

2024 2023 Change % Change

(dollars in thousands) 2025 2024 Change % Change

Noninterest expense

19 unchanged sentences

___________________________________________

The efficiency ratio and adjusted efficiency ratio are both non-GAAP financial measures.

For a reconciliation of non-GAAP financial measure to the most directly comparable GAAP financial measures, see “ Item 1.

Business—Non-GAAP Financial Information .”

For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see “ Item 1.

Business—Non-GAAP Financial Information ” included in the Annual Report.

Total noninterest expense increased to $480.2 million for the year ended December 31, 2025, compared to $301.5 million for the year ended December 31, 2024, representing a year-over-year increase of 59.3%.

Non-operating acquisition and other restructuring expenses increased to $8.1 million in 2024, compared to $4.3 million in 2023.

The remaining increases can be attributed primarily to operating M&M Bank as a stand-alone bank from April 1, 2024, through June 21, 2024, and general inflationary pressures on compensation and benefits and to a lesser extent certain other expense categories.

Busey expects to continue to prudently manage its expenses and to realize the full extent of M&M acquisition synergies in 2025.

Growth in noninterest expense was primarily attributable to acquisition expenses related to the CrossFirst acquisition, added costs for operating expenses for two banks from March 1, 2025, until the banks were merged on June 20, 2025, and increased expenses associated with Busey’s larger organization and expanded branch network.

Acquisition and restructuring expenses contributed $54.6 million to total noninterest expense for the year ended December 31, 2025, compared to $8.1 million for the comparable period in 2024.

Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0 million with 100% realization of identified synergies in 2026.

Salaries, wages, and employee benefits increased to $289.1 million for 2025, compared to $175.6 million for 2024.

Excluding acquisition and restructuring expenses, which include severance, retention, and stock-based compensation expenses related to the CrossFirst acquisition, salaries, wages, and employee benefits were $252.0 million for 2025, compared to $174.0 million for 2024, representing an increase of 44.8%.

During 2025, Busey added 17 banking centers, largely in connection with the CrossFirst acquisition, resulting in the expansion of Busey’s workforce, including the addition of 405 full-time equivalent associates.

First Busey Corporation (BUSE) | 2025 — 69

Table of Contents Contents of Item 7.

Salaries, wages, and employee benefits increased to $175.6 million in 2024, compared to $162.6 million in 2023.

Busey’s total associate base consisted of 1,509 full-time equivalents as of December 31, 2024, compared to 1,479 at December 31, 2023, with the increase largely relating to the M&M acquisition.

Busey recorded $1.6 million and $3.8 million of non-operating expenses during 2024 and 2023, respectively.

Current trends continue to reflect a competitive labor market, maintaining pressure on costs related to attracting and maintaining Busey’s skilled workforce.

Data processing expense increased to $27.1 million in 2024, compared to $23.7 million in 2023.

Contents of Item 7.

Data processing expense increased to $43.2 million for 2025, compared to $27.1 million for 2024.

Excluding acquisition and restructuring expenses, data processing expense was $36.2 million for 2025, compared to $26.6 million for 2024, representing an increase of 36.2%.

Increases were primarily attributable to Company-wide investments in technology enhancements, as well as inflation-driven price increases.

Combined, net occupancy expense of premises and furniture and equipment expenses increased to $25.5 million in 2024, compared to $25.0 million in 2023.

Combined, net occupancy expense of premises and furniture and equipment expenses increased to $38.0 million for 2025, compared to $25.5 million for 2024.

The CrossFirst acquisition added 16 banking centers.

Further, on August 18, 2025, Busey opened its second Denver service center, located in the Cherry Creek North neighborhood.

Primary cost drivers in these expense categories include lease costs, repairs and maintenance, depreciation expense, real estate taxes, and utilities.

Professional fees increased to $12.8 million in 2024, compared to $7.1 million in 2023.

Busey recorded $4.9 million and $0.4 million of non-operating expenses during 2024 and 2023, respectively.

The significant increase in non-operating professional fees related primarily to the acquisition of M&M, which was completed in the second quarter of 2024, and the planned merger with CrossFirst, which is expected to be completed in the first quarter of 2025.

Amortization of intangible assets decreased to $10.1 million in 2024, compared to $10.4 million in 2023.

Decreases in 2024 were due to the use of an accelerated amortization methodology and were partially offset by the addition of $6.3 million of intangible assets related to the M&M acquisition.

Interchange expense decreased to $6.0 million in 2024, compared to $6.9 million in 2023.

Professional fees increased to $18.8 million for 2025, compared to $12.8 million for 2024.

Excluding acquisition and restructuring expenses, professional fees were $10.7 million for 2025, compared to $7.9 million for 2024, representing an increase of 35.3%.

Primary cost drivers in this expense category include legal, audit and accounting, and consulting expenses.

Amortization of intangible assets increased to $16.6 million for 2025, compared to $10.1 million for 2024.

The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets with amortization of $7.8 million during the year ended December 31, 2025.

Busey uses an accelerated amortization methodology.

Interchange expense decreased to $5.2 million for 2025, compared to $6.0 million for 2024.

Fluctuations in interchange expense relate to payment and volume activity at FirsTech.

FDIC insurance expense decreased to $5.6 million in 2024, compared to $5.7 million in 2023.

Other expense decreased to $37.6 million in 2024, compared to $44.2 million in 2023.

In connection with Busey’s adoption of ASU 2023-02 on January 1, 2024, Busey began recording amortization of New Markets Tax Credits as income tax expense instead of other noninterest expense, resulting in decreases in other noninterest expense of $9.0 million for the year ended December 31, 2024.

Further changes in other noninterest expense are attributable to multiple items, including the provision for unfunded commitments, sales of other real estate owned, fixed asset impairment, marketing, and business development expenses.

FDIC insurance expense increased to $10.4 million for 2025, compared to $5.6 million for 2024.

Additional FDIC insurance assessments were the result of Busey’s growth in average assets in connection with the CrossFirst acquisition.

Other noninterest expense increased to $59.0 million for 2025, compared to $38.7 million for 2024.

Excluding acquisition and restructuring expenses, other noninterest expense was $56.5 million for 2025, compared to $37.8 million for 2024, representing an increase of 49.8%.

Increases in other noninterest expense were attributable to multiple items, including increased costs on loans, marketing, business development, and office supplies.

Efficiency Ratio

3 unchanged sentences

Operating costs have been influenced by acquisition expenses and other restructuring costs, and the adjusted efficiency ratio 3 was 55.8% for the year ended December 31, 2025, compared to 61.3% for the year ended December 31, 2024.

Effective income tax rates, calculated by dividing income taxes by income before taxes, were 27.5%, 25.8%, and 20.4% for the years ended December 31, 2025, 2024, and 2023, respectively.

Busey's effective tax rate increased in 2025 primarily due to the deferred tax impact of the lower blended state tax rates resulting in (1) a one-time revaluation of deferred tax assets;

and (2) a higher disallowance related to Internal Revenue Code Section 162(m) limited compensation.

These results were partially offset by increased tax credit investments and tax-exempt interest.

Following the acquisition of CrossFirst Bank, and the inclusion of the CrossFirst entities within the Busey consolidated group, the deferred tax attributes were revalued to reflect the new consolidated group's state tax rates.

As such, there was a significant rate change adjustment recognized against deferred tax assets in 2025, which increased Busey's effective tax rate for the year ended December 31, 2025.

3 The efficiency ratio and adjusted efficiency ratio are both non-GAAP financial measures.

2 unchanged sentences

First Busey Corporation (BUSE) | 2025 — 70

Table of Contents Contents of Item 7.

Effective income tax rates, calculated by dividing income taxes by income before taxes, were 25.8%, 20.4%, and 20.7% for the years ended December 31, 2024, 2023, and 2022, respectively.

Busey’s effective tax rates increased in 2024 due to the adoption of ASU 2023-02 in January 2024, yet remained lower than the combined federal and state statutory rate of approximately 28.0% due to tax exempt interest income, such as municipal bond interest and bank owned life insurance income.

Busey’s effective income tax rate for the year ended December 31, 2024, includes an estimated 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.

Contents of Item 7.

Busey continues to monitor evolving federal and state tax legislation and its potential impact on operations on an ongoing basis.

As of December 31, 2024, Busey Bank is under examination by the Florida Department of Revenue for its 2020 to 2022 corporate income tax filings.

Further, in February of 2025, Busey received a notice of audit initiation from the Illinois Department of Revenue for M&M’s tax filings for the tax years 2022 and 2023.

First Busey Corporation (BUSE) | 2024 — 64

Table of Contents Contents of Item 7.

As of December 31, 2025, Busey remains under examination by the Illinois Department of Revenue for Merchant & Manufacturers Bank's tax filings for the tax years ended December 31, 2022 and 2023.

The Florida Department of Revenue examination of Busey Bank's tax years 2020 to 2022 corporate income tax filings was completed with no additional income tax assessments.

FINANCIAL CONDITION

Balance Sheet

Changes in significant items included on Busey’s Consolidated Balance Sheets are summarized in the table below (dollars in thousands) :

Changes in significant items included on Busey’s Consolidated Balance Sheets are summarized in the table below:

As of December 31,

2024 2023 Change % Change

(dollars in thousands) 2025 2024 Change % Change

Debt securities available for sale $ 2,162,548 $ 1,810,221 $ 352,327 19.5 %

6 unchanged sentences

Securities sold under agreements to repurchase 166,929 155,610 11,319 7.3 %

Long-term borrowings 113,806 — 113,806 100.0 %

Subordinated notes, net of unamortized issuance costs 99,395 227,723 (128,328) (56.4) %

8 unchanged sentences

Pledged securities totaled $744.2 million, or 25.6% of total debt securities, as of December 31, 2025, and $871.4 million, or 33.0% of total debt securities, as of December 31, 2024.

First Busey Corporation (BUSE) | 2025 — 71

Contents of Item 7.

Debt Securities Available for Sale

3 unchanged sentences

There were $13.9 million of gross unrealized gains and $152.2 million of gross unrealized losses, resulting in a net unrealized loss of $138.3 million.

First Busey Corporation (BUSE) | 2024 — 65

Table of Contents Contents of Item 7.

The composition of debt securities available for sale was as follows (dollars in thousands) :

The composition of debt securities available for sale was as follows:

As of December 31,

(dollars in thousands) 2025 2024

Debt securities available for sale

Treasury securities $ — $ 15,946

Obligations of U.S.

9 unchanged sentences

First Busey Corporation (BUSE) | 2025 — 72

Table of Contents Contents of Item 7.

By maturity date, fair values and weighted average yields of debt securities available for sale as of December 31, 2024, are presented in the following table (dollars in thousands) :

Contents of Item 7.

By maturity date, fair values and weighted average yields of debt securities available for sale as of December 31, 2025, are presented in the following table:

Due in 1 year or less Due after 1 year

1 unchanged sentence

through 10 years Due after

(dollars in thousands) Fair

Value Weighted

15 unchanged sentences

Weighted average yield calculated on a tax-equivalent basis, assuming a federal income tax rate of 21.0%.

First Busey Corporation (BUSE) | 2024 — 67

Table of Contents Contents of Item 7.

Debt Securities Held to Maturity

Debt securities held to maturity are carried at amortized cost.

Unrecognized losses are included in OCI and amortized into income over the contractual lives of the securities.

Unrecognized losses related to securities that were transferred in 2022 are included in OCI, net of taxes, and amortized into income over the contractual lives of the securities.

An ACL balance will be established for debt securities held to maturity when applicable.

2 unchanged sentences

There were no gross unrecognized gains and $120.4 million of gross unrecognized losses.

The composition of debt securities held to maturity was as follows (dollars in thousands) :

The composition of debt securities held to maturity was as follows:

As of December 31,

(dollars in thousands) 2025 2024

Debt securities held to maturity

4 unchanged sentences

Fair value as a percentage of amortized cost 83.87 % 81.66 %

By maturity date, fair values and weighted average yields of debt securities held to maturity as of December 31, 2024, are presented in the following table (dollars in thousands) :

First Busey Corporation (BUSE) | 2025 — 73

Contents of Item 7.

By maturity date, fair values and weighted average yields of debt securities held to maturity as of December 31, 2025, are presented in the following table:

Due in 1 year or less Due after 1 year

1 unchanged sentence

through 10 years Due after

(dollars in thousands) Fair

Value Weighted

11 unchanged sentences

The fair value of equity securities was $14.9 million as of December 31, 2025, compared to $15.9 million as of December 31, 2024.

First Busey Corporation (BUSE) | 2024 — 68

Table of Contents Contents of Item 7.

Portfolio Loans

1 unchanged sentence

Busey maintains lending policies and procedures designed to focus lending efforts on the types, locations, and duration of loans most appropriate for its business model and markets.

M&M’s policies were similar in nature to Busey Bank’s policies, and Busey is in the process of migrating the legacy M&M portfolio toward Busey Bank’s policies.

While not specifically limited, Busey attempts to focus its lending on short to intermediate-term loans (0-10 years) in geographic areas within 125 miles of its lending offices.

Loans originated outside of these areas are generally to existing customers of Busey Bank.

While not specifically limited, Busey attempts to focus its lending on short to intermediate-term loans (0-10 years) in states where Busey maintains lending offices.

Busey attempts to utilize government-assisted lending programs, such as the SBA and U.S.

13 unchanged sentences

Results of these reviews are presented to management and the audit committee at least quarterly.

First Busey Corporation (BUSE) | 2025 — 74

Contents of Item 7.

Busey Bank’s lending can be summarized into five primary lending activities, which can be further categorized as either commercial or retail lending.

7 unchanged sentences

Busey Bank has established minimum standards and underwriting guidelines for all C&I and other commercial loan types.

First Busey Corporation (BUSE) | 2024 — 69

Table of Contents Contents of Item 7.

Commercial Real Estate Loans

4 unchanged sentences

Repayment of these loans is primarily dependent on the cash flows of the underlying property.

However, CRE loans generally must be supported by an adequate underlying collateral value.

Nevertheless, CRE loans generally must be supported by an adequate underlying collateral value.

The performance and the value of the underlying property may be adversely affected by economic factors or geographical and/or industry specific factors.

4 unchanged sentences

Real estate construction loans will generally be guaranteed, in full or a material percentage, by the developer or primary owners of the business.

These loans are subject to underwriting standards and guidelines similar to commercial loans.

The loan generally must be supported by an adequate “as completed” value of the underlying project.

These loans are subject to underwriting standards and guidelines similar to commercial loans and generally must be supported by an adequate “as completed” value of the underlying project.

In addition to the underlying project, the financial history of the developer and business owners weighs significantly in determining approval.

13 unchanged sentences

First Busey Corporation (BUSE) | 2025 — 75

Table of Contents Contents of Item 7.

Contents of Item 7.

Portfolio Composition

The composition of Busey’s loan portfolio as of the dates indicated, as well as changes in portfolio loan balances, were as follows (dollars in thousands) :

The composition of Busey’s loan portfolio as of the dates indicated, as well as changes in portfolio loan balances, were as follows:

As of December 31,

2024 2023 Change % Change

(dollars in thousands) 2025 2024 Change % Change

Commercial loans

8 unchanged sentences

ACL (174,023) (83,404) (90,619) 108.7 %

Portfolio loans, net of ACL $ 7,613,683 $ 7,559,294 $ 54,389 0.7 %

Portfolio loan growth in 2024 was due to the M&M acquisition.

As has been Busey’s practice, the Company remains steadfast in its conservative approach to underwriting and disciplined approach to pricing, particularly given Busey’s outlook for the economy in the coming quarters.

This posture will continue to impact loan growth, which Busey expects to remain modest over the next several quarters.

Portfolio loans, net $ 13,393,776 $ 7,613,683 $ 5,780,093 75.9 %

Portfolio loan growth in 2025 was primarily attributable to the CrossFirst acquisition.

Busey remains steadfast in its conservative approach to underwriting and disciplined approach to pricing.

During 2025, Busey experienced elevated payoffs that outpaced new production momentums.

Concentration of Credit Risk

11 unchanged sentences

Total portfolio loans 100.0 % 100.0 %

Busey Bank originates loans across its regional operating model and through its specialty product lines, as described below:

• East – Suburban Chicago markets, the St.

Louis MSA, and southwest Florida

• Midwest – Central Illinois and Indianapolis, Indiana

• Central – The Kansas City MSA, Central Kansas, and Oklahoma

First Busey Corporation (BUSE) | 2025 — 76

Table of Contents Contents of Item 7.

A significant majority of Busey’s portfolio lending activity occurs in the Illinois and Missouri markets, with the remainder in the Florida and Indiana markets.

The geographic distribution of loans originated in each of these markets is presented in the tables below (dollars in thousands) :

Contents of Item 7.

• Texas – The Dallas-Fort Worth MSA

• West – Colorado, New Mexico, and Arizona

• Verticals – Busey’s Life Equity Lending, Sponsor Finance, Energy Lending, and SBA Lending products

The distribution of Busey Bank loans outstanding as of December 31, 2025, that were originated in each of these markets is presented in the table below:

As of December 31, 2025

Illinois Missouri Florida Indiana Total

Commercial loans

C&I and other commercial $ 1,493,670 $ 276,140 $ 58,277 $ 76,428 $ 1,904,515

CRE 2,285,915 560,337 245,918 177,394 3,269,564

Real estate construction 232,898 40,816 30,826 73,669 378,209

Total commercial loans 4,012,483 877,293 335,021 327,491 5,552,288

Retail real estate 1,275,834 211,878 128,352 80,393 1,696,457

Retail other 443,164 3,731 683 764 448,342

Total retail loans 1,718,998 215,609 129,035 81,157 2,144,799

(dollars in thousands) C&I and other commercial CRE Real estate construction Retail real estate Retail other Total

Loans by region of origination

$ 1,088,440 $ 1,808,207 $ 113,509 $ 879,925 $ 80,416 $ 3,970,497

844,521 1,424,213 269,526 722,721 9,521 3,270,502

626,517 839,189 204,985 342,953 9,792 2,023,436

598,561 790,181 276,156 117,814 3,211 1,785,923

245,275 527,756 155,173 78,952 457 1,007,613

825,894 160,472 19,940 12,251 491,271 1,509,828

Total portfolio loans

$ 4,229,208 $ 5,550,018 $ 1,039,289 $ 2,154,616 $ 594,668 13,567,799

Portfolio loans, net of ACL

Prior to the CrossFirst acquisition on March 1, 2025, Busey Bank’s loan origination occurred in the Illinois, Missouri, Florida, and Indiana markets.

The geographic distribution of Busey Bank loans outstanding as of December 31, 2024, that were originated in each of these markets is presented in the table below:

As of December 31, 2024

Illinois Missouri Florida Indiana Total

Commercial loans

C&I and other commercial $ 1,395,020 $ 369,767 $ 25,267 $ 45,940 $ 1,835,994

CRE 2,278,348 671,762 219,511 167,716 3,337,337

Real estate construction 255,879 74,805 72,121 58,912 461,717

Total commercial loans 3,929,247 1,116,334 316,899 272,568 5,635,048

Retail real estate 1,284,362 225,610 129,454 81,029 1,720,455

Retail other 290,937 2,344 1,111 1,139 295,531

Total retail loans 1,575,299 227,954 130,565 82,168 2,015,986

(dollars in thousands) C&I and other commercial CRE Real estate construction Retail real estate Retail other Total

Loans by state of origination

Illinois $ 1,493,670 $ 2,285,915 $ 232,898 $ 1,275,834 $ 443,164 $ 5,731,481

Missouri 276,140 560,337 40,816 211,878 3,731 1,092,902

Florida 58,277 245,918 30,826 128,352 683 464,056

Indiana 76,428 177,394 73,669 80,393 764 408,648

Total portfolio loans $ 1,904,515 $ 3,269,564 $ 378,209 $ 1,696,457 $ 448,342 7,697,087

1 unchanged sentence

First Busey Corporation (BUSE) | 2025 — 77

Table of Contents Contents of Item 7.

CRE loans made up 42.5% of Busey’s total loan portfolio as of December 31, 2024, and were 27.9% owner occupied.

CRE loans are made across a variety of industries, as depicted in the table below (dollars in thousands) .

Contents of Item 7.

Commercial Real Estate Loans

CRE loans made up 40.9% of Busey’s total loan portfolio as of December 31, 2025, and CRE properties were approximately 25.8% owner occupied.

Owner occupied commercial real estate is generally dependent on the performance of the borrowers’ businesses, whereas non-owner occupied commercial real estate is generally reliant on property cash flows generated by third-party tenants.

As of December 31,

(dollars in thousands) 2025 2024

COMMERCIAL REAL ESTATE LOANS

Non-owner occupied commercial real estate $ 4,118,361 74.2 % $ 2,360,273 72.2 %

Owner-occupied commercial real estate 1,431,657 25.8 % 909,291 27.8 %

Total commercial real estate loans $ 5,550,018 100.0 % $ 3,269,564 100.0 %

CRE loans are made across a variety of industries, as depicted in the table below.

Balances reflected in the table below do not include loan origination fees or costs, purchase accounting adjustments, SBA discounts, or negative escrow amounts.

As of December 31, 2025

CRE Loans % of Total Loans Owned By % of CRE Loans That Are Owner Occupied

Investor Occupant

Industrial/Warehouse $ 654,223 8.5 % $ 287,460 $ 366,763 56.1 %

CRE Loans Occupied By % of CRE Loans That Are Owner Occupied

(dollars in thousands) Non-Owner Owner

Industrial and warehousing $ 1,189,936 $ 702,068 $ 487,868 41.0 %

Apartments 875,081 874,893 188 — %

2 unchanged sentences

Specialty 561,210 222,564 338,646 60.3 %

Student Housing 227,149 3.0 % 227,149 — — %

Medical Office 213,808 2.8 % 135,024 78,784 36.8 %

Hotel 333,906 329,186 4,720 1.4 %

Senior Housing 120,328 1.6 % 120,328 — — %

Medical office 285,182 133,805 151,377 53.1 %

Student housing 231,134 231,019 115 — %

Restaurant 153,063 37,684 115,379 75.4 %

Self-Storage 151,999 147,572 4,427 2.9 %

Senior housing 137,485 132,504 4,981 3.6 %

Nursing homes 91,951 90,506 1,445 1.6 %

Health Care 20,519 0.3 % 20,000 519 2.5 %

Healthcare 20,263 20,000 263 1.3 %

Group homes 4,986 3,568 1,418 28.4 %

Continuing Care Facilities 2,965 2,965 — — %

1-4 Family 500 500 — — %

Land acquisition and development 91 — 91 100.0 %

Other 890 389 501 56.3 %

1 unchanged sentence

Loan Commitments

Commitments to extend credit and standby letters of credit increased by $371.7 million, or 17.1%, to a total of $2.55 billion as of December 31, 2024, compared to $2.18 billion as of December 31, 2023.

Commitments to extend credit and standby letters of credit increased by $2.27 billion, or 89.2%, to a total of $4.82 billion as of December 31, 2025, compared to $2.55 billion as of December 31, 2024.

Loan Maturities

1 unchanged sentence

Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are considered to mature within one year.

The following table sets forth the remaining maturities of portfolio loans at December 31, 2024, (dollars in thousands) :

Within 1 Year After 1 Year

First Busey Corporation (BUSE) | 2025 — 78

Contents of Item 7.

The following table sets forth the remaining maturities of portfolio loans at December 31, 2025:

(dollars in thousands) Within 1 Year After 1 Year

Through 5 Years After 5 Years

7 unchanged sentences

Total portfolio loans $ 3,539,291 $ 6,670,104 $ 1,830,715 $ 1,527,689 $ 13,567,799

First Busey Corporation (BUSE) | 2024 — 73

Table of Contents Contents of Item 7.

Interest Rate Structure

Portfolio loans maturing after one year are summarized below by interest rate structure and lending activity, as of December 31, 2024, (dollars in thousands) :

Portfolio loans maturing after one year are summarized below by interest rate structure and lending activity, as of December 31, 2025:

(dollars in thousands) Fixed

Rate Adjustable

6 unchanged sentences

Total portfolio loans maturing after 1 year $ 4,021,613 $ 6,006,895 $ 10,028,508

Allowance and Provision for Credit Losses

The ACL is a significant estimate on Busey’s C onsolidated F inancial S tatements , affecting both earnings and capital.

Allowance for Credit Losses and Provision for Credit Losses

The ACL is a significant estimate on Busey’s Consolidated Financial Statements , affecting both earnings and capital.

The methodology adopted influences, and is influenced by, Busey’s overall credit risk management processes.

1 unchanged sentence

Estimates of credit losses are based on a careful consideration of all significant factors affecting the collectability as of the evaluation date.

The ACL is established through the provision for credit loss expense charged to income.

Provision expenses (releases) were recorded as follows for each of the years indicated (dollars in thousands) :

The ACL is established through the provision for credit loss charged to income.

Provision expenses for loan losses were recorded as follows for each of the years indicated:

Years Ended December 31,

2024 2023 2022

(dollars in thousands) Location 2025 2024 2023

Provision for loan losses 1

Provision for credit losses $ 45,746 $ 8,590 $ 2,399

___________________________________________

The year ended December 31, 2025, included $42.4 million provision expense that was recorded to establish an initial allowance for loan losses on non-PCD loans immediately following the close of the CrossFirst acquisition in accordance with ASC 326‑20‑30‑15.

First Busey Corporation (BUSE) | 2025 — 79

Table of Contents Contents of Item 7.

The following table summarizes, by lending activity, net charge-off and recovery activity affecting the ACL balance, together with average portfolio loans outstanding and the related ratios of net charge-offs (recoveries) to average portfolio loans (dollars in thousands) :

Contents of Item 7.

(dollars in thousands) ACL Average

Portfolio Loans

3 unchanged sentences

ACL balance, December 31, 2022 $ 91,608

Net (charge-offs) recoveries and average portfolio loans by loan category:

Net (charge-offs) recoveries and average portfolio loans by lending activity:

C&I and other commercial (1,877) $ 1,910,008 0.10 %

4 unchanged sentences

Net (charge-offs) recoveries and average portfolio loans (2,267) $ 7,759,472 0.03 %

Provision for credit losses 4,623

Provision for loan losses 2,399

ACL balance, December 31, 2023 91,740

Net (charge-offs) recoveries and average portfolio loans by loan category:

Net (charge-offs) recoveries and average portfolio loans by lending activity:

C&I and other commercial (14,946) $ 1,892,293 0.79 %

4 unchanged sentences

Net (charge-offs) recoveries and average portfolio loans (18,169) $ 7,804,629 0.23 %

Provision for credit losses 2,399

Provision for loan losses 8,590

ACL balance, December 31, 2024 83,404

Net (charge-offs) recoveries and average portfolio loans by loan category:

Day 2 Provision for loan losses 2

Net (charge-offs) recoveries and average portfolio loans by lending activity:

C&I and other commercial (41,862) $ 4,039,572 1.04 %

4 unchanged sentences

Net (charge-offs) recoveries and average portfolio loans (55,910) $ 12,756,937 0.44 %

Provision for credit losses 8,590

Provision for loan losses 3,313

ACL balance, December 31, 2025 $ 174,023

___________________________________________

The Day 1 PCD is attributable to the M&M acquisition.

The Day 1 PCD was attributable to the M&M acquisition in 2024 and the CrossFirst acquisition in 2025.

The Day 2 Provision for loan losses was attributable to the CrossFirst acquisition.

First Busey Corporation (BUSE) | 2025 — 80

Table of Contents Contents of Item 7.

The following table sets forth the ACL by loan categories and percentage of loans to total loans as of December 31 for each of the years indicated (dollars in thousands) :

Contents of Item 7.

The following table sets forth the ACL by loan categories and percentage of loans to total loans as of December 31 for each of the years indicated:

As of December 31,

ACL % of Loans to Total Loans ACL % of Loans to Total Loans

(dollars in thousands) ACL % of Loans to Total Loans ACL % of Loans to Total Loans

Loan Category

5 unchanged sentences

Total $ 174,023 100.0 % $ 83,404 100.0 %

Busey did not record an allowance for credit loss for its Life Equity Loan ® portfolio, a component of its retail other lending activity, due to no expected credit loss at default, as permitted under the practical expedient provided within ASC 326-20-35-6.

The Life Equity Loan ® portfolio balance was $264.2 million as of December 31, 2024.

The ongoing impacts of CECL will be dependent upon changes in economic conditions and forecasts, originated and acquired loan portfolio composition, credit performance trends, portfolio duration, and other factors.

Busey did not record an allowance for loan losses for its Life Equity Loan ® portfolio, a component of its retail other lending activity, due to no expected credit loss at default, as permitted under the practical expedient provided within ASC 326-20-35-6.

The Life Equity Loan ® portfolio balance was $445.4 million as of December 31, 2025, and $264.2 million as of December 31, 2024.

As of December 31, 2025, Busey management believed the level of the allowance to be appropriate based upon the information available.

However, additional losses may be identified in the loan portfolio as new information is obtained.

Factors that influence Busey’s calculation of its ACL include changes in economic conditions and forecasts, originated and acquired loan portfolio composition, credit performance trends, portfolio duration, and other factors.

Non-Performing Loans and Non-Performing Assets

7 unchanged sentences

First Busey Corporation (BUSE) | 2025 — 81

Table of Contents Contents of Item 7.

The following table sets forth information concerning non-performing loans and performing restructured loans (dollars in thousands) :

Contents of Item 7.

The following table sets forth information concerning non-performing assets and asset quality ratios:

As of December 31,

2024 2023 Change % Change

(dollars in thousands) 2025 2024 Change % Change

Total assets $ 18,104,736 $ 12,046,722 $ 6,058,014 50.3 %

Portfolio loans 13,567,799 7,697,087 5,870,712 76.3 %

Loans 30 – 89 days past due 16,475 8,124 8,351 102.8 %

Total assets 12,046,722 12,283,415 (236,693) (1.9) %

Non-performing assets

3 unchanged sentences

Total non-performing loans 53,486 23,237 30,249 130.2 %

OREO and other repossessed assets 63 125 (62) (49.6) %

OREO and other repossessed assets 4,626 63 4,563 NM

Total non-performing assets 58,112 23,300 34,812 149.4 %

12 unchanged sentences

Classified assets to Bank Tier 1 Capital and ACL 7.51 % 5.61 % 190 bps

Asset quality remains strong by both Busey’s historical and current industry trends, and Busey’s operating mandate and focus have been on emphasizing credit quality over asset growth.

Non-performing loan balances increased by 197.30% to $23.2 million as of December 31, 2024, compared to $7.8 million as of December 31, 2023.

The increase was primarily related to one CRE loan that was classified in the fourth quarter of 2023 and was moved to non-accrual during the fourth quarter of 2024.

This loan carries a remaining balance of $15.0 million following a $3.0 million charge-off in the fourth quarter of 2024.

Busey’s total assets grew by 50.3% to $18.10 billion as of December 31, 2025, compared to $12.05 billion as of December 31, 2024, largely in connection with the CrossFirst acquisition.

Further, Busey’s loan portfolio grew by 76.3% to $13.57 billion as of December 31, 2025, compared to $7.70 billion as of December 31, 2024.

Asset quality continues to be strong.

Following the merger of CrossFirst Bank into Busey Bank in June, Busey is operating as one bank, with a singular credit policy, concentration limits, and monitoring that will continue to align with Busey’s pillars of credit quality.

Busey’s operating mandate and focus remain on emphasizing credit quality over asset growth.

Non-performing loan balances increased to $53.5 million as of December 31, 2025, compared to $23.2 million as of December 31, 2024, primarily due to PCD loans assumed in the CrossFirst acquisition.

Non-performing loans represented 0.39% of portfolio loans as of December 31, 2025, compared to 0.30% as of December 31, 2024.

Busey’s ACL coverage decreased to 3.59 times its non-performing loan balance at December 31, 2024, compared to 11.74 times its non-performing loan balance at December 31, 2023.

Busey’s ACL was 3.25 times its non-performing loan balance at December 31, 2025, compared to 3.59 times its non-performing loan balance at December 31, 2024.

First Busey Corporation (BUSE) | 2025 — 82

Table of Contents Contents of Item 7.

Non-performing assets, which includes non-performing loans, OREO, and other repossessed assets, increased by 193.41% to $23.3 million as of December 31, 2024, compared to $7.9 million as of December 31, 2023.

Contents of Item 7.

Non-performing assets, which include non-performing loans, OREO, and other repossessed assets, increased to $58.1 million as of December 31, 2025, compared to $23.3 million as of December 31, 2024.

Non-performing assets represented 0.32% of total assets as of December 31, 2025, compared to 0.19% as of December 31, 2024.

Busey’s ACL provided coverage of 3.58 times its non-performing assets at December 31, 2024, down from 11.55 times its non-performing assets at December 31, 2023.

Busey’s ACL was 2.99 times its non-performing assets as of December 31, 2025, compared to 3.58 times its non-performing assets as of December 31, 2024.

Classified assets, which include non-performing assets and substandard loans, increased to $174.5 million as of December 31, 2025, compared to $85.3 million as of December 31, 2024.

1 unchanged sentence

Net charge-offs totaled $55.9 million in 2025, representing 0.44% of average loans, compared with net charge-offs of $18.2 million in 2024, representing 0.23% of average loans.

Increases in net charge-offs during the year ended December 31, 2024, were significantly attributable to a single C&I credit relationship and the CRE loan relationship mentioned above.

Net charge-offs for the year ended December 31, 2025, included $36.2 million related to PCD loans.

Asset quality metrics remain dependent upon market-specific economic conditions, and specific measures may fluctuate from period to period.

1 unchanged sentence

Potential Problem Loans

Potential problem loans are loans classified as substandard which are not individually evaluated, non-accrual, or 90+ days past due, but where current information indicates that the borrower may not be able to comply with loan repayment terms.

Potential problem loans are loans classified as substandard that are not individually evaluated, non-accrual, or 90+ days past due, but where current information indicates that the borrower may not be able to comply with loan repayment terms.

Management assesses the potential for loss on such loans and considers the effect of any potential loss in determining its provision for expected credit losses.

Potential problem loans decreased to $62.0 million at December 31, 2024, compared to $64.3 million at December 31, 2023.

Potential problem loans increased to $116.4 million, or 0.9% of portfolio loans, as of December 31, 2025, compared to $62.0 million, or 0.8% of portfolio loans, as of December 31, 2024.

Management continues to monitor these loans and work with the borrowers on restructurings, guarantees, additional collateral, or other planned actions.

As of December 31, 2025, management identified no other loans that represent or result from trends or uncertainties that would be expected to materially impact future operating results, liquidity, or capital resources.

First Busey Corporation (BUSE) | 2024 — 78

Table of Contents Contents of Item 7.

The following table shows the deposit mix for each of the periods presented (dollars in thousands) :

The following table presents the composition of, and changes in, Busey’s deposits:

As of December 31,

Balance % Total Balance % Total Change % Change

(dollars in thousands) Balance % Total Balance % Total Change % Change

Non-maturity deposits:

5 unchanged sentences

Total deposits $ 14,905,958 100.0 % $ 9,982,490 100.0 % $ 4,923,468 49.3 %

Total deposits decreased by 3.0% to $9.98 billion as of December 31, 2024, compared to $10.29 billion as of December 31, 2023.

The quality of Busey’s core deposit 4 franchise coupled with cash flows from its securities portfolio allows Busey to fund loan growth while limiting its reliance on higher cost wholesale funding alternatives.

First Busey Corporation (BUSE) | 2025 — 83

Contents of Item 7.

Total deposits increased by 49.3% to $14.91 billion as of December 31, 2025, compared to $9.98 billion as of December 31, 2024, in connection with the CrossFirst acquisition.

Busey focuses on deepening its customer relationships to maintain and protect its strong core deposit 4 franchise.

As of December 31, 2024, Busey average customer tenure was 16.9 years for retail customers and 12.8 years for commercial customers.

Core deposits include non-brokered transaction accounts, money market and savings deposit accounts, and time deposits of $250,000 or less.

Core deposits represented 96.5% of total deposits as of December 31, 2024, compared to 96.2% as of December 31, 2023.

Core deposits represented 93.7% of total deposits as of December 31, 2025.

Deposits are federally insured up to the FDIC insurance limit of $250,000.

When a portion of a deposit account exceeds the FDIC insurance limit, that portion is uninsured.

Estimated uninsured deposits were $3.78 billion at December 31, 2024.

The portion of Busey’s deposit base that was uninsured and not otherwise collateralized was estimated to be $2.96 billion at December 31, 2024, which represented 30% of total deposits.

Estimated uninsured deposits were $6.46 billion, or 43% of total deposits, as of December 31, 2025.

Excluding intercompany accounts, fully collateralized accounts (including preferred deposits), and pass-through accounts where clients have deposit insurance at the correspondent financial institution, the portion of Busey’s deposit base that was uninsured and not otherwise collateralized was estimated to be $5.58 billion, or 37% of total deposits, at December 31, 2025.

Of that amount, $759.4 million represented time deposits.

The following table presents estimates of the uninsured portion of time deposits by maturity date (dollars in thousands) :

The following table presents estimates of the uninsured portion of time deposits by maturity date:

(dollars in thousands) As of

Estimated uninsured time deposits by schedule of maturities

4 unchanged sentences

Uninsured time deposits $ 759,355

Additional information about Busey’s deposits is located in “ Note 9.

Busey’s borrowings include, as applicable, securities sold under agreements to repurchase, a revolving line of credit, short-term borrowings, long-term borrowings, subordinated notes, and junior subordinated debt owed to unconsolidated trusts.

4 Core deposits is a non-GAAP financial measure.

2 unchanged sentences

First Busey Corporation (BUSE) | 2025 — 84

Table of Contents Contents of Item 7.

On May 28, 2021, Busey entered into a Second Amended and Restated Credit Agreement, pursuant to which it 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 and Securities Sold Under Agreements to Repurchase

Short-term borrowings include FHLB advances that mature in less than one year from the date of origination, and the current portion of long-term debt due within 12 months.

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily.

First Busey Corporation (BUSE) | 2024 — 80

Table of Contents Contents of Item 7.

The following table sets forth the distribution of short-term borrowings and securities sold under agreements to repurchase, as well as the weighted average interest rates thereon (dollars in thousands) :

Contents of Item 7.

The following table sets forth the distribution of securities sold under agreements to repurchase and short-term borrowings, as well as the weighted average interest rates thereon:

Years Ended December 31,

2024 2023 2022

(dollars in thousands) 2025 2024 2023

Securities sold under agreements to repurchase

21 unchanged sentences

The weighted average interest rate is computed by dividing total interest for the period by the average daily balance outstanding.

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.

First Busey Corporation (BUSE) | 2024 — 81

Table of Contents Contents of Item 7.

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 subordinated notes are presented in the following table (dollars in thousands) :

As of December 31,

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

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 of 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.

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 remaining to be accreted of $2.9 million and $2.6 million at December 31, 2024, and 2023, respectively.

First Busey Corporation (BUSE) | 2024 — 82

Table of Contents Contents of Item 7.

Additional information about Busey’s borrowing activities is located in “ Note 10.

Borrowings .” Additional information about Busey’s contractual obligations related to its borrowing activities is located under the heading “ Contractual Obligations ” within this MD&A .

Liquidity management is the process by which Busey ensures that adequate liquid funds are available to meet the present and future cash flow obligations arising in the daily operations of its business.

2 unchanged sentences

Balances of these assets are dependent on Busey’s operating, investing, lending, and financing activities during any given period.

Average liquid assets are summarized in the table below (dollars in thousands) :

First Busey Corporation (BUSE) | 2025 — 85

Contents of Item 7.

Average liquid assets are summarized in the table below:

Years Ended December 31,

2024 2023 2022

(dollars in thousands) 2025 2024 2023

Average liquid assets

1 unchanged sentence

Interest-bearing bank deposits 575,781 445,881 214,422

Restricted and pledged cash and bank deposits

(86,844) (38,057) (35,806)

Total average liquid assets $ 655,448 $ 517,224 $ 295,146

Average liquid assets as a percent of average total assets 3.7 % 4.3 % 2.4 %

Cash and unencumbered securities on Busey’s Consolidated Balance Sheets are summarized as follows for the periods presented (dollars in thousands) :

Cash and unencumbered securities on Busey’s Consolidated Balance Sheets are summarized as follows:

As of December 31,

Cash and unencumbered securities

(dollars in thousands) 2025 2024

Unencumbered cash and securities

Total cash and cash equivalents $ 294,052 $ 697,659

Restricted and pledged cash and bank deposits (96,102) (65,830)

Debt securities available for sale 2,162,548 1,810,221

2 unchanged sentences

Busey’s primary sources of funds consist of deposits, investment maturities and sales, loan principal repayments, and capital funds.

Additional liquidity is provided by the ability to borrow from the FHLB, the Federal Reserve Bank, and Busey’s revolving credit facility, as summarized in the table below (dollars in thousands) :

Additional liquidity is provided by the ability to borrow from the FHLB, the Federal Reserve Bank, and Busey’s revolving credit facility, as summarized in the table below:

As of December 31,

(dollars in thousands) 2025 2024

Additional available borrowing capacity

5 unchanged sentences

Further, Busey could utilize brokered deposits as additional sources of liquidity, as needed.

First Busey Corporation (BUSE) | 2024 — 83

Table of Contents Contents of Item 7.

As of December 31, 2025, management believed that adequate liquidity existed to meet all projected cash flow obligations.

6 unchanged sentences

The balance of commitments to extend credit represents future cash requirements and some of these commitments may expire without being drawn upon.

The following table summarizes Busey’s outstanding commitments and reserves for unfunded commitments (dollars in thousands) :

First Busey Corporation (BUSE) | 2025 — 86

Contents of Item 7.

The following table summarizes Busey’s outstanding commitments and reserves for unfunded commitments :

As of December 31,

(dollars in thousands) 2025 2024

Outstanding loan commitments and standby letters of credit $ 4,820,613 $ 2,548,178

Reserve for unfunded commitments 12,964 5,967

The following table summarizes Busey’s provision for unfunded commitments expenses (releases) for the periods presented (dollars in thousands) :

The following table summarizes Busey’s provision for unfunded commitments for the periods presented:

Years Ended December 31,

Location 2024 2023 2022

Provision for unfunded commitments expense (release) Other noninterest expense $ (1,095) $ 461 $ 61

(dollars in thousands) Location 2025 2024 2023

Provision for unfunded commitments 1

Provision for credit losses $ 6,997 $ (1,095) $ 461

___________________________________________

The year ended December 31, 2025, included $7.2 million to establish an initial allowance for unfunded commitments in connection with the CrossFirst acquisition.

Busey anticipates that it will have sufficient funds available to meet current loan commitments, including loan applications received and in process prior to the issuance of firm commitments.

1 unchanged sentence

Busey has entered into certain contractual obligations and other commitments that generally relate to funding of operations through deposits, debt issuance, and property and equipment leases.

First Busey Corporation (BUSE) | 2024 — 84

Table of Contents Contents of Item 7.

The following table summarizes significant contractual obligations and other commitments, excluding, when applicable, short-term borrowings and the current portion of long-term debt, as of December 31, 2024, (dollars in thousands) :

Certificates of

Deposit Operating

Leases Junior

Unconsolidated

Trusts Long-term

Debt Subordinated Notes,

(dollars in thousands) Time deposits Long-term

Borrowings Subordinated Notes,

Net of Unamortized

Issuance Costs Total

Contractual obligations by schedule of maturities

Issuance Costs Junior

Debt Owed to Unconsolidated

Trusts Operating

Leases in Other Liabilities Total

Contractual obligations 1

2026 $ 2,364,343 $ 3,234 $ 5,000 $ 4,813 $ 6,255 $ 2,382,960

6 unchanged sentences

Commitments to extend credit and standby letters of credit $ 4,820,613

___________________________________________

The contractual obligations in this table include principal and estimated interest without any purchase accounting or debt issuance cost adjustments.

Busey’s cash flows consist of operating activities, investing activities, and financing activities.

First Busey Corporation (BUSE) | 2025 — 87

Contents of Item 7.

Net cash flows provided by operating activities totaled $192.6 million in 2025, compared to $178.3 million provided by operating activities in 2024.

1 unchanged sentence

Fluctuations in sales of loans held for sale are a function of changes in market rates for mortgage loans, which influence refinance activity.

Net cash provided by investing activities totaled $657.9 million in 2024, compared to $551.0 million provided by investing activities in 2023.

Net cash provided by investing activities totaled $1.10 billion in 2025, compared to $657.9 million provided by investing activities in 2024.

Significant investing activities are those associated with managing Busey’s investment and loan portfolios.

Net cash used in financing activities totaled $858.1 million in 2024, compared to $232.0 million used in financing activities in 2023.

Significant financing activities affecting cash flows include deposit and other borrowings, as well as cash dividends paid.

Net cash used in financing activities totaled $1.69 billion in 2025, compared to $858.1 million used in financing activities in 2024.

Significant financing activities affecting cash flows include deposit and other borrowings, issuance of preferred stock, and cash dividends paid.

For additional detail, see the Consolidated Statements of Cash Flows .

First Busey Corporation (BUSE) | 2024 — 85

Table of Contents Contents of Item 7.

Capital Resources

12 unchanged sentences

Management believes that no conditions or events have occurred since December 31, 2025, that would materially adversely change First Busey’s or Busey Bank’s capital classifications.

For further discussion of capital resources and requirements, see “ Note 12.

Regulatory Capital .”

NEW ACCOUNTING PRONOUNCEMENTS

1 unchanged sentence

Information relating to accounting pronouncements applicable to Busey appears in “ Note 1.

Significant Accounting Policies ” in the Notes to the Consolidated Financial Statements.

Significant Accounting Policies ” in the Notes to Consolidated Financial Statements .

EFFECTS OF INFLATION

4 unchanged sentences

For additional information regarding interest rates and changes in net interest income see “ Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operation — Three Years Ended December 31, 2024—Consolidated Average Balance Sheets and Interest Rates ” and “ Item 7A.

Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operation — Three Years Ended December 31, 2025—Net Interest Income ” and “ Item 7A.

Quantitative and Qualitative Disclosures About Market Risk .”

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis