What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-08-06 compared with 2026-05-07 · 376 added, 244 removed, 782 unchanged (44% of the section changed)

5 unchanged sentences

CrossFirst Bankshares, Inc.

RESULTS OF OPERATIONS — THREE MONTHS ENDED MARCH 31, 2026

RESULTS OF OPERATIONS — THREE AND SIX MONTHS ENDED JUNE 30, 2026

Non-GAAP Adjusting Items and Non-GAAP Measures

1 unchanged sentence

Net Interest Income

Consolidated Average Balance Sheets and Net Interest Margins

Consolidated Average Balance Sheets and Interest Rates

Noninterest Income

14 unchanged sentences

CRITICAL ACCOUNTING ESTIMATES

Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations

Allowance for Credit Losses

First Busey Corporation (BUSE) | 60

First Busey Corporation (BUSE) | 2026 Q2 — 62

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

SCOPE OF DISCUSSION

The following discussion and analysis are intended to assist readers in understanding Busey’s financial condition and results of operations during the three months ended March 31, 2026, and should be read in conjunction with Busey’s Consolidated Financial Statements (Unaudited) and the related Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report, as well as Busey’s 2025 Annual Report .

The following discussion and analysis are intended to assist readers in understanding Busey’s financial condition and results of operations during the three and six months ended June 30, 2026, and should be read in conjunction with Busey’s Consolidated Financial Statements (Unaudited) and the related Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report, as well as Busey's 2025 Annual Report .

First Busey Corporation is an $18.19 billion financial holding company headquartered in Leawood, Kansas.

First Busey Corporation’s common stock is traded on The Nasdaq Global Select Market under the symbol “BUSE,” and its Series B preferred stock is traded on The Nasdaq Global Select Market under the symbol “BUSEP.”

First Busey’s common stock is traded on The Nasdaq Global Select Market under the symbol “BUSE,” and its depositary shares of Series B Preferred Stock are traded on The Nasdaq Global Select Market under the symbol “BUSEP.”

Busey provides a full range of banking, wealth management, and payment technology solutions to individuals and corporate clients through its subsidiaries, Busey Bank and FirsTech.

6 unchanged sentences

and one banking center in Indianapolis, Indiana.

First Busey Corporation (BUSE) | 61

First Busey Corporation (BUSE) | 2026 Q2 — 63

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

11 unchanged sentences

Busey remains substantially core deposit funded, with robust liquidity.

As of March 31, 2026, Busey’s loan to deposit ratio was 91.3% and core deposits represented 93.7% of total deposits.

As of June 30, 2026, Busey’s loan to deposit ratio was 87.2% and core deposits represented 93.7% of total deposits.

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

4 unchanged sentences

Busey strives to consistently maintain capital ratios well in excess of thresholds required to be designated as well capitalized by applicable regulatory guidelines, thereby ensuring financial strength and flexibility across economic and operating cycles.

As of March 31, 2026, 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 12.3%, and its total capital to risk weighted assets ratio was 15.9%.

As of June 30, 2026, 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 12.5%, and its total capital to risk weighted assets ratio was 16.1%.

Business Combinations

3 unchanged sentences

CrossFirst Bank’s results of operations were included in Busey’s results of operations beginning March 1, 2025.

Busey operated CrossFirst Bank as a separate banking subsidiary until it was merged with and into Busey Bank on June 20, 2025.

First Busey operated CrossFirst Bank as a separate banking subsidiary until it was merged with and into Busey Bank on June 20, 2025.

At the time of the bank merger, CrossFirst Bank’s banking centers became banking centers of Busey Bank.

3 unchanged sentences

For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see “ Non-GAAP Financial Information ” included in this MD&A.

First Busey Corporation (BUSE) | 62

First Busey Corporation (BUSE) | 2026 Q2 — 64

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

RESULTS OF OPERATIONS — THREE MONTHS ENDED MARCH 31, 2026

RESULTS OF OPERATIONS — THREE AND SIX MONTHS ENDED JUNE 30, 2026

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2026 2025 2026 2025

Net income (loss)

$ 58,735 $ 45,838 $ 108,975 $ 26,145

2 unchanged sentences

(398) (544) (2,078) (783)

Net income (loss)

(2,659) (3,713) (7,405) (19,990)

First Busey Corporation (BUSE) | 63

$ 63,176 $ 47,404 $ 113,157 $ 17,414

First Busey Corporation (BUSE) | 2026 Q2 — 65

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

4 unchanged sentences

Pre-tax non-GAAP adjustments were as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2026 2025 2026 2025

3 unchanged sentences

Provision for credit losses

Salaries, wages, and employee benefits

— 4,030 — 49,602

Salaries and employee benefits

2,045 11,557 18,169 27,435

Data processing

— 3,964 80 6,266

Furniture and equipment expenses

Professional fees

704 317 823 7,611

Other noninterest expense

377 761 754 1,313

Total pre-tax non-GAAP adjustments to net income

4 unchanged sentences

Initial provision for credit losses 2

Other acquisition (income) expenses 4

— 4,030 — 49,602

Other acquisition expenses 3

1,196 16,600 6,440 42,626

Restructuring expenses 4

1,930 — 13,386 —

Total pre-tax non-GAAP adjustments to net income

1 unchanged sentence

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments from other noninterest expense to the provision for credit losses.

During the three months ended March 31, 2025, Busey sold available for sale debt securities with a book value of approximately $205.6 million for a pre-tax loss of $15.5 million and related estimated tax benefit of $4.3 million, as part of a balance sheet repositioning strategy.

During the three months ended March 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, and a Day 2 provision for unfunded commitments of $3.1 million.

During the six months ended June 30, 2025, Busey sold available for sale debt securities with a book value of approximately $205.6 million for a pre-tax loss of $15.5 million and related estimated tax benefit of $4.3 million, as part of a balance sheet repositioning strategy.

During the six months ended June 30, 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, and a Day 2 provision for unfunded commitments of $3.1 million.

During the three and six months ended June 30, 2025, Busey recorded a $4.0 million adjustment to the initial provision for unfunded commitments for CrossFirst acquisition-date balances 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.

Final expenses for the acquisition of M&M were also included for 2025.

Restructuring expenses were incurred in connection with the execution on additional synergies identified in the first quarter of 2026 related to the CrossFirst acquisition and also in connection with the previously announced departure of Michael J.

Restructuring expenses were incurred in connection with the execution on additional synergies related to the CrossFirst acquisition and also in connection with the previously announced departure of Michael J.

Maddox in the first quarter of 2026.

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 MD&A.

See “ Non-GAAP Financial Information .”

First Busey Corporation (BUSE) | 64

First Busey Corporation (BUSE) | 2026 Q2 — 66

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

1 unchanged sentence

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands, except per share amounts)

Net income (loss) (GAAP)

2026 2025 2026 2025

Net income (GAAP)

$ 63,176 $ 47,404 $ 113,157 $ 17,414

Adjusted net income (Non-GAAP) 1

$ 63,687 $ 57,394 $ 126,898 $ 97,292

Net income (loss) available to common stockholders (GAAP)

Net income available to common stockholders (GAAP)

$ 58,586 $ 47,249 $ 103,978 $ 17,259

1 unchanged sentence

$ 59,097 $ 57,239 $ 117,719 $ 97,137

Diluted earnings (loss) per common share (GAAP)

Diluted earnings per common share (GAAP)

$ 0.69 $ 0.52 $ 1.20 $ 0.22

20 unchanged sentences

Annualized measure.

Beginning in the second quarter of 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.

Beginning in 2026, Busey revised, for all periods presented, its calculation of return on average tangible common equity and adjusted return on average tangible common equity to eliminate the effects of intangible asset amortization from the numerator of both calculations.

Net Interest Income

2 unchanged sentences

Net interest margin is tax-equivalent net interest income as a percent of average interest-earning assets.

First Busey Corporation (BUSE) | 2026 Q2 — 67

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Certain assets with tax favorable treatment are evaluated on a tax-equivalent basis, assuming a federal income tax rate of 21.0%.

3 unchanged sentences

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

First Busey Corporation (BUSE) | 65

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Consolidated Average Balance Sheets and Net Interest Margins

Consolidated Average Balance Sheets and Interest Rates

The table below presents 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) | 66

First Busey Corporation (BUSE) | 2026 Q2 — 68

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Three Months Ended March 31,

Three Months Ended June 30,

(dollars in thousands) Average

Balance Income/

Expense Yield/

Balance Income/

Expense Yield/

Interest-bearing bank deposits and federal funds sold

56 unchanged sentences

Non-accrual loans are included in average portfolio loans.

Interest income includes tax-equivalent adjustments of $0.9 million and $0.5 million for the three months ended March 31, 2026 and 2025, respectively.

Interest income includes tax-equivalent adjustments of $0.8 million for both the three months ended June 30, 2026, and the three months ended June 30, 2025.

Includes short-term and long-term borrowings.

Interest expense includes non-usage fees on a revolving loan.

First Busey Corporation (BUSE) | 67

First Busey Corporation (BUSE) | 2026 Q2 — 69

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Six Months Ended June 30,

(dollars in thousands) Average

Interest-bearing bank deposits and federal funds sold

$ 131,494 $ 2,279 3.50 % $ 699,996 $ 15,045 4.33 %

Investment securities:

Government obligations

108,566 2,720 5.05 % 79,048 1,949 4.97 %

Obligations of states and political subdivisions 1

264,193 5,665 4.32 % 217,410 4,222 3.92 %

Other securities

2,568,695 39,387 3.09 % 2,637,232 38,407 2.94 %

Restricted bank stock

83,396 2,007 4.85 % 54,770 1,302 4.79 %

Loans held for sale

6,724 195 5.85 % 5,181 157 6.11 %

Portfolio loans 1, 2

13,423,566 399,375 6.00 % 11,850,318 354,507 6.03 %

Total interest-earning assets 1, 3

16,586,634 $ 451,628 5.49 % 15,543,955 $ 415,589 5.39 %

Cash and due from banks

165,853 164,617

Premises and equipment

193,357 161,447

(173,759) (163,840)

1,201,095 1,255,217

$ 17,973,180 $ 16,961,396

Liabilities and stockholders’ equity

Interest-bearing transaction deposits

$ 3,163,759 $ 25,968 1.66 % $ 2,919,452 $ 26,216 1.81 %

Savings and money market deposits

5,651,538 64,184 2.29 % 5,417,935 73,374 2.73 %

Time deposits

2,375,699 41,635 3.53 % 2,468,406 45,869 3.75 %

Federal funds purchased and repurchase agreements

164,938 1,994 2.44 % 143,400 1,762 2.48 %

345,141 7,265 4.24 % 290,131 7,379 5.13 %

Junior subordinated debt issued to unconsolidated trusts

76,229 2,493 6.60 % 76,378 2,747 7.25 %

Total interest-bearing liabilities

11,777,304 $ 143,539 2.46 % 11,315,702 $ 157,347 2.80 %

Net interest spread 1

3.03 % 2.59 %

Noninterest-bearing deposits

3,501,941 3,290,770

Other liabilities

259,754 244,129

Stockholders’ equity

2,434,181 2,110,795

Total liabilities and stockholders’ equity

$ 17,973,180 $ 16,961,396

Interest income / earning assets 1, 3

$ 16,586,634 $ 451,628 5.49 % $ 15,543,955 $ 415,589 5.39 %

Interest expense / earning assets

16,586,634 143,539 1.75 % 15,543,955 157,347 2.04 %

Net interest margin 1

$ 308,089 3.75 % $ 258,242 3.35 %

___________________________________________

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

For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see “Non-GAAP Financial Information” included in this MD&A.

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

Interest income includes tax-equivalent adjustments of $1.7 million and $1.3 million for the six months ended June 30, 2026 and 2025, respectively.

Includes short-term and long-term borrowings.

Interest expense includes non-usage fees on a revolving loan.

First Busey Corporation (BUSE) | 2026 Q2 — 70

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Notable changes in average assets and average liabilities are summarized as follows:

Three Months Ended March 31,

Three Months Ended June 30,

(dollars in thousands) 2026 2025 Change % Change

6 unchanged sentences

Total average deposits as a percent of total average liabilities 94.5 % 95.3 % (80) bps

Six Months Ended June 30,

(dollars in thousands) 2026 2025 Change % Change

Average interest-earning assets $ 16,586,634 $ 15,543,955 $ 1,042,679 6.7 %

Average interest-bearing liabilities 11,777,304 11,315,702 461,602 4.1 %

Average noninterest-bearing deposits 3,501,941 3,290,770 211,171 6.4 %

Total average deposits 14,692,937 14,096,563 596,374 4.2 %

Total average liabilities 15,538,999 14,850,601 688,398 4.6 %

Average noninterest-bearing deposits as a percent of total average deposits 23.8 % 23.3 % 50 bps

Total average deposits as a percent of total average liabilities 94.6 % 94.9 % (30) bps

First Busey Corporation (BUSE) | 2026 Q2 — 71

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Changes in net interest income and net interest margin are summarized as follows:

Three Months Ended March 31,

Three Months Ended June 30,

(dollars in thousands) 2026 2025 Change % Change

7 unchanged sentences

3.72 % 3.49 % 23 bps

Six Months Ended June 30,

(dollars in thousands) 2026 2025 Change % Change

Net interest income

Interest income, on a tax-equivalent basis 1

$ 451,628 $ 415,589 $ 36,039 8.7 %

Interest expense (143,539) (157,347) 13,808 8.8 %

Net interest income, on a tax-equivalent basis 1

$ 308,089 $ 258,242 $ 49,847 19.3 %

Net interest margin 1, 2

3.75 % 3.35 % 40 bps

___________________________________________

Assuming a federal income tax rate of 21.0%.

1 unchanged sentence

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

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 consistent and predictable net interest income performance across different interest rate environments.

Busey continues to execute various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds.

Busey continues to evaluate and execute off-balance sheet hedging and balance sheet strategies as well as embedding rate protection in asset originations to provide consistent and predictable net interest income performance across different interest rate environments.

Busey continues strategic efforts to grow core customer deposits.

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:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Net interest spread 1

2 unchanged sentences

Net interest spread is calculated on a tax-equivalent basis.

First Busey Corporation (BUSE) | 68

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

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

5 unchanged sentences

For a description of accounting policies underlying the recognition of interest income and expense, refer to the Notes to Consolidated Financial Statements in Busey’s 2025 Annual Report .

First Busey Corporation (BUSE) | 2026 Q2 — 72

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Noninterest Income

Changes in noninterest income are summarized in the table below:

Three Months Ended March 31,

Changes in noninterest income are summarized in the tables below:

Three Months Ended June 30,

(dollars in thousands) 2026 2025 Change % Change

3 unchanged sentences

Treasury management services 4,789 4,569 220 4.8 %

Capital markets income 1,871 1,254 617 49.2 %

Card services and ATM fees 4,813 4,880 (67) (1.4) %

Other service charges on deposit accounts 1,407 1,513 (106) (7.0) %

Mortgage revenue 438 329 109 33.1 %

Income on bank owned life insurance 1,637 1,745 (108) (6.2) %

5 unchanged sentences

Total noninterest income $ 44,311 $ 44,863 $ (552) (1.2) %

Assets under care as of period end $ 15,647,250 $ 13,677,866 $ 1,969,384 14.4 %

Total noninterest income provided $42.3 million for the three months ended March 31, 2026, an increase of 99.1% from the comparable period in 2025.

During the first quarter of 2025, Busey executed a strategic balance sheet repositioning resulting in a securities loss of $15.5 million.

Whereas the first quarter of 2026 included a full quarter of income as a larger organization after the acquisition of CrossFirst, the first quarter of 2025 included only one month of income from CrossFirst following the acquisition, which was completed on March 1, 2025.

Busey continues to benefit from its diverse set of product offerings.

First Busey Corporation (BUSE) | 69

First Busey Corporation (BUSE) | 2026 Q2 — 73

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Wealth management fees provided income of $19.4 million for the three months ended March 31, 2026, an increase of 11.6% from the comparable period for 2025, primarily due to increases in trust fee income.

Busey’s Wealth Management division ended the first quarter of 2026 with $15.65 billion in assets under care, an increase of 14.4% compared to the balance on March 31, 2025.

Six Months Ended June 30,

(dollars in thousands) 2026 2025 Change % Change

Noninterest income

Wealth management fees $ 39,351 $ 34,141 $ 5,210 15.3 %

Payment technology solutions 10,045 10,029 16 0.2 %

Treasury management services 9,245 7,406 1,839 24.8 %

Capital markets income 4,242 2,579 1,663 64.5 %

Card services and ATM fees 9,459 8,589 870 10.1 %

Other service charges on deposit accounts 2,913 3,046 (133) (4.4) %

Income on bank owned life insurance 3,253 3,191 62 1.9 %

Securities income:

Realized net gains (losses) on securities 23 (15,536) 15,559 100.1 %

Unrealized net gains (losses) recognized on equity securities 1,482 5,765 (4,283) (74.3) %

Net securities gains (losses) 1,505 (9,771) 11,276 115.4 %

Other noninterest income 6,563 6,876 (313) (4.6) %

Total noninterest income $ 86,576 $ 66,086 $ 20,490 31.0 %

Assets under care as of period end $ 16,505,694 $ 14,102,022 $ 2,403,672 17.0 %

Total noninterest income provided $44.3 million for the three months ended June 30, 2026, a decrease of 1.2% from the comparable period in 2025, resulting in part from declines in unrealized net gains on securities, which were elevated in the second quarter of 2025 due to Busey’s equity ownership in a financial institution that was the target of an announced acquisition at a significant market premium.

Total noninterest income provided $86.6 million for the six months ended June 30, 2026, an increase of 31.0% from the comparable period in 2025.

Whereas the six months ended June 30, 2026, included six months of income as a larger organization after the acquisition of CrossFirst, the six months ended June 30, 2025, included only four months of income from CrossFirst following the acquisition, which was completed on March 1, 2025.

The six months ended June 30, 2025, also included $15.5 million in net securities losses that were recorded in connection with a strategic balance sheet repositioning.

Wealth management fees provided income of $20.0 million for the three months ended June 30, 2026, representing an increase of 19.1% from the comparable period in 2025, and provided income of $39.4 million for the six months ended June 30, 2026, representing an increase of 15.3% from the comparable period for 2025, primarily due to increases in trust fee income.

Busey’s Wealth Management division ended the second quarter of 2026 with $16.51 billion in assets under care, an increase of 17.0% compared to the balance on June 30, 2025.

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

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

Payment technology solutions provided income of $5.1 million for the three months ended March 31, 2026, an increase of 0.1% from the comparable period in 2025.

Treasury management services, which consist primarily of business analysis charges and wire transfer fees on commercial accounts, provided income of $4.8 million for the three months ended March 31, 2026, representing an increase of 60.0% from the comparable period in 2025, primarily due to the addition of CrossFirst commercial services.

Card services and ATM fees, which include both commercial and consumer accounts, provided income of $4.6 million for the three months ended March 31, 2026, representing an increase of 25.3% from the comparable period in 2025, primarily due to the addition of CrossFirst corporate card services.

Other service charges on deposit accounts provided income of $1.5 million for the three months ended March 31, 2026, representing a decrease of 1.8% from the comparable period in 2025, primarily as a result of lower non-sufficient fund charges.

Mortgage revenue provided $0.4 million for the three months ended March 31, 2026, representing an increase of 33.1% from the comparable period in 2025.

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

Income on bank owned life insurance provided $1.6 million for the three months ended March 31, 2026, representing an increase of 11.8% from the comparable period in 2025, which included an increase of $0.4 million on the cash surrender value of the policies and a decrease of $0.2 million in earnings on death proceeds.

Net securities losses of $0.9 million were realized during the three months ended March 31, 2026, representing a decrease of 94.0% from the net securities losses realized during the comparable period in 2025.

Losses in 2025 were elevated due to the aforementioned strategic balance sheet repositioning.

Other noninterest income provided $5.7 million for the three months ended March 31, 2026, representing an increase of 26.7% from the comparable period in 2025.

Increases were primarily attributable to swap origination, syndication, and other loan fees, offset by declines in OREO and private equity income.

First Busey Corporation (BUSE) | 70

Payment technology solutions income is derived from Busey’s payment processing company, FirsTech.

Payment technology solutions provided income of $5.0 million for the three months ended June 30, 2026, representing an increase of 0.2% from the comparable period in 2025, and provided income of $10.0 million for the six months ended June 30, 2026, representing an increase of 0.2% from the comparable period in 2025, primarily due to increases in income from lockbox and merchant processing services.

First Busey Corporation (BUSE) | 2026 Q2 — 74

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Treasury management services, which consist primarily of business analysis and domestic wire transfers on commercial accounts, provided income of $4.8 million for the three months ended June 30, 2026, representing an increase of 4.8% from the comparable period in 2025, and provided income of $9.2 million for the six months ended June 30, 2026, representing an increase of 24.8% from the comparable period in 2025.

Growth in treasury management services was primarily attributable to increased income from business analysis.

Capital markets income, which consists primarily of swap origination fees, foreign wire transfer fees on commercial accounts, syndication fees, and letter of credit fees, provided income of $1.9 million for the three months ended June 30, 2026, representing an increase of 49.2% from the comparable period in 2025, primarily due to increases in income from swap origination fees and letter of credit fees.

Capital markets income provided $4.2 million for the six months ended June 30, 2026, representing an increase of 64.5% from the comparable period in 2025, primarily due to increases in income from swap origination fees and syndication fees.

Card services and ATM fees, which include both commercial and consumer accounts, provided income of $4.8 million for the three months ended June 30, 2026, representing a decrease of 1.4% from the comparable period in 2025, and provided income of $9.5 million for the six months ended June 30, 2026, representing an increase of 10.1% from the comparable period in 2025, primarily due to fluctuations in income from interchange fees.

Other service charges on deposit accounts provided income of $1.4 million for the three months ended June 30, 2026, representing a decrease of 7.0% from the comparable period in 2025, and provided income of $2.9 million for the six months ended June 30, 2026, representing a decrease of 4.4% from the comparable period in 2025.

Declines were largely related to lower non-sufficient fund charges.

Income on bank owned life insurance provided $1.6 million for the three months ended June 30, 2026, representing a decrease of 6.2% from the comparable period in 2025.

The decline was attributable to a decrease of $0.1 million in earnings on death proceeds, partially offset by an immaterial increase on the cash surrender value of the policies.

Income on bank owned life insurance provided $3.3 million for the six months ended June 30, 2026, representing an increase of 1.9% from the comparable period in 2025, as a result of an increase of over $0.4 million on the cash surrender value of the policies, largely offset by a decrease of nearly $0.4 million in earnings on death proceeds.

Net securities gains of $2.4 million were recognized during the three months ended June 30, 2026, representing a decrease of 59.2% from net securities gains recognized during the comparable period in 2025, as a result of declines in unrealized net gains on securities, which were elevated in the second quarter of 2025 due to Busey’s approximately 3% equity ownership in a financial institution that was the target of an announced acquisition at a significant market premium.

Net securities gains of $1.5 million were recognized during the six months ended June 30, 2026, representing an increase of 115.4% over net securities losses recognized during the comparable period in 2025.

Losses were realized during the six months ended June 30, 2025, in connection with a strategic balance sheet repositioning completed during the first quarter of 2025.

Other noninterest income provided $2.4 million for the three months ended June 30, 2026, representing a decrease of 24.3% from the comparable period in 2025, and provided $6.6 million for the six months ended June 30, 2026, representing a decrease of 4.6% from the comparable period in 2025.

Decreases were primarily attributable to fluctuations in income recognized on private equity investments and mortgage revenue.

First Busey Corporation (BUSE) | 2026 Q2 — 75

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Noninterest Expense

Changes in noninterest expense are summarized in the table below:

Three Months Ended March 31,

Changes in noninterest expense are summarized in the tables below:

Three Months Ended June 30,

(dollars in thousands) 2026 2025 Change % Change

Noninterest expense

Salaries, wages, and employee benefits $ 85,230 $ 67,563 $ 17,667 26.1 %

Salaries and employee benefits $ 67,677 $ 78,360 $ (10,683) (13.6) %

Data processing 8,868 14,021 (5,153) (36.8) %

8 unchanged sentences

Other noninterest expense 15,186 14,024 1,162 8.3 %

13,499 11,245 2,254 20.0 %

Total noninterest expense $ 112,635 $ 127,833 $ (15,198) (11.9) %

Income taxes $ 18,713 $ 17,109 $ 1,604 9.4 %

Effective income tax rate 22.9 % 26.5 % (360) bps

Efficiency ratio (Non-GAAP) 1

54.0 % 55.3 % (130) bps

___________________________________________

Beginning in 2026, Busey now reports a single efficiency ratio, which was previously reported as the “adjusted efficiency ratio.” The efficiency ratio is a non-GAAP financial measure.

For a reconciliation of non-GAAP measures to the most directly comparable financial GAAP measures, see “ Non-GAAP Financial Information ” included in this MD&A.

First Busey Corporation (BUSE) | 2026 Q2 — 76

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Six Months Ended June 30,

(dollars in thousands) 2026 2025 Change % Change

Noninterest expense

Salaries and employee benefits $ 152,907 $ 145,923 $ 6,984 4.8 %

Data processing 18,732 23,596 (4,864) (20.6) %

Premises expenses:

Net occupancy expense of premises 15,502 13,631 1,871 13.7 %

Furniture and equipment expenses 4,513 4,153 360 8.7 %

Combined, net occupancy expense of premises and furniture and equipment expenses 20,015 17,784 2,231 12.5 %

Professional fees 6,280 12,385 (6,105) (49.3) %

Amortization of intangible assets 8,523 7,675 848 11.0 %

Interchange expense 2,212 2,640 (428) (16.2) %

FDIC insurance 4,800 4,591 209 4.6 %

Other noninterest expense 28,685 25,269 3,416 13.5 %

Total noninterest expense $ 242,154 $ 239,863 $ 2,291 1.0 %

Income taxes $ 32,389 $ 14,430 $ 17,959 124.5 %

4 unchanged sentences

___________________________________________

The efficiency ratio is a non-GAAP financial measure.

Beginning in 2026, Busey now reports a single efficiency ratio, which was previously reported as the “adjusted efficiency ratio.” The efficiency ratio is a non-GAAP financial measure.

For a reconciliation of non-GAAP measures to the most directly comparable financial GAAP measures, see “ Non-GAAP Financial Information ” included in this MD&A.

Total noninterest expense amounted to $129.5 million for the three months ended March 31, 2026, representing an increase of 15.6% from the comparable period in 2025, with the increases primarily attributable to increased salaries, wages, and employee benefits and other noninterest expense, partially offset by declines in professional fees.

Salaries, wages, and employee benefits totaled $85.2 million for the three months ended March 31, 2026, representing an increase of 26.1% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, which include severance, retention, and stock-based compensation expenses related to the CrossFirst acquisition, salaries, wages, and employee benefits totaled $69.1 million for the three months ended March 31, 2026, representing an increase of 33.7% from the comparable period in 2025.

Busey’s associate base and footprint broadened in connection with the CrossFirst acquisition, which was completed on March 1, 2025, affecting one month of the first quarter of 2025 and all three months of the first quarter of 2026.

Data processing expense totaled $9.9 million for the three months ended March 31, 2026, representing an increase of 3.0% from the comparable period in 2025.

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

First Busey Corporation (BUSE) | 71

Total noninterest expense was $112.6 million for the three months ended June 30, 2026, representing a decrease of 11.9% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, adjusted noninterest expense 2 totaled $109.5 million for the three months ended June 30, 2026, representing a decrease of 1.5% from the comparable period in 2025.

Declines were primarily attributable to reductions in salaries and employee benefits and data processing.

Total noninterest expense was $242.2 million for the six months ended June 30, 2026, representing an increase of 1.0% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, adjusted noninterest expense totaled $222.3 million for the six months ended June 30, 2026, representing an increase of 12.7% from the comparable period in 2025.

Growth in noninterest expense was primarily attributable to increased expenses associated with Busey’s larger organization and expanded branch network, which affected the full first half of 2026, but only four months of the first half of 2025 following the acquisition of CrossFirst on March 1, 2025.

2 Adjusted noninterest expense is a non-GAAP financial measure.

For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see “ Non-GAAP Financial Information ” included in this MD&A.

First Busey Corporation (BUSE) | 2026 Q2 — 77

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Combined, net occupancy expense of premises and furniture and equipment expense totaled $9.8 million for the three months ended March 31, 2026, representing an increase of 30.3% from the comparable period in 2025.

Salaries and employee benefits totaled $67.7 million for the three months ended June 30, 2026, representing a decrease of 13.6% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, which include severance, retention, and stock-based compensation expenses related to the CrossFirst acquisition, these expenses totaled $65.6 million for the three months ended June 30, 2026, representing a decrease of 1.8% from the comparable period in 2025.

Busey’s associate base declined by 117 full-time equivalent associates, from 1,950 at June 30, 2025 to 1,833 at June 30, 2026.

Salaries and employee benefits totaled $152.9 million for the six months ended June 30, 2026, representing an increase of 4.8% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, these expenses totaled $134.7 million for the six months ended June 30, 2026, representing an increase of 13.7% from the comparable period in 2025.

Busey’s associate base and footprint broadened in connection with the CrossFirst acquisition, which was completed March 1, 2025, affecting four months during the first half of 2025 compared to six months during the first half of 2026.

Data processing expense totaled $8.9 million for the three months ended June 30, 2026, representing a decrease of 36.8% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, data processing expense totaled $8.9 million for the three months ended June 30, 2026, representing a decrease of 11.8% from the comparable period in 2025.

Data processing expense totaled $18.7 million for the six months ended June 30, 2026, representing a decrease of 20.6% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, data processing expense totaled $18.7 million for the six months ended June 30, 2026, representing an increase of 7.6% from the comparable period in 2025.

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 expense totaled $10.2 million for the three months ended June 30, 2026, representing a decrease of 0.5% from the comparable period in 2025.

Combined, net occupancy expense of premises and furniture and equipment expense totaled $20.0 million for the six months ended June 30, 2026, representing an increase of 12.5% from the comparable period in 2025.

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

Expense growth resulted primarily from the addition of banking centers assumed in the CrossFirst acquisition, as well as new banking centers opened in 2025 and the first quarter of 2026.

Professional fees totaled $3.2 million for the three months ended March 31, 2026, representing a decrease of 65.9% from the comparable period in 2025, primarily as a result of increases in professional fees to execute the CrossFirst acquisition.

Excluding acquisition and restructuring expenses, professional fees totaled $3.1 million for the three months ended March 31, 2026, representing an increase of 40.7% from the comparable period in 2025, due to increases in consulting costs and audit and accounting costs, partially offset by declines in legal costs.

Amortization of intangible assets totaled $4.3 million for the three months ended March 31, 2026, representing an increase of 39.2% from the comparable period for 2025.

The CrossFirst acquisition added $81.8 million of finite-lived intangible assets.

Expense growth for the six months ended June 30, 2026, over the comparable period in 2025, resulted primarily from the addition of banking centers assumed in the CrossFirst acquisition, as well as new banking centers opened in 2025 and 2026.

Professional fees totaled $3.0 million for the three months ended June 30, 2026, representing an increase of 5.8% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, professional fees totaled $2.3 million for the three months ended June 30, 2026, representing a decrease of 8.6% from the comparable period in 2025.

Professional fees totaled $6.3 million for the six months ended June 30, 2026, representing a decrease of 49.3% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, professional fees totaled $5.5 million for the six months ended June 30, 2026, representing an increase of 14.3% from the comparable period in 2025.

Changes in professional fees were primarily related to legal and consulting expenses.

Amortization of intangible assets totaled $4.2 million for the three months ended June 30, 2026, representing a decrease of 7.8% from the comparable period in 2025, and totaled $8.5 million for the six months ended June 30, 2026, representing an increase of 11.0% from the comparable period for 2025.

The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets.

Busey uses an accelerated amortization methodology.

Interchange expense totaled $1.1 million for the three months ended March 31, 2026, representing a decrease of 16.9% from the comparable period in 2025.

Interchange expense totaled $1.1 million for the three months ended June 30, 2026, representing a decrease of 15.5% from the comparable period in 2025, and totaled $2.2 million for the six months ended June 30, 2026, representing a decrease of 16.2% from the comparable period in 2025.

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

FDIC insurance expense totaled $2.5 million for the three months ended March 31, 2026, representing an increase of 13.1% from the comparable period in 2025.

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

Other noninterest expense totaled $13.5 million for the three months ended March 31, 2026, representing an increase of 20.0% from the comparable period in 2025.

Significant drivers of the increase included business development costs, software amortization, and loan expenses, impacted by the timing of the CrossFirst acquisition.

FDIC insurance expense totaled $2.3 million for the three months ended June 30, 2026, representing a decrease of 3.1% from the comparable period in 2025, and totaled $4.8 million for the six months ended June 30, 2026, representing an increase of 4.6% from the comparable period in 2025.

First Busey Corporation (BUSE) | 2026 Q2 — 78

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Other noninterest expense totaled $15.2 million for the three months ended June 30, 2026, representing an increase of 8.3% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, these expenses totaled $14.8 million for the three months ended June 30, 2026, representing an increase of 11.7% from the comparable period in 2025.

Other noninterest expense totaled $28.7 million for the six months ended June 30, 2026, representing an increase of 13.5% from the comparable period in 2025.

Excluding acquisition and restructuring expenses, these expenses totaled $27.9 million for the six months ended June 30, 2026, representing an increase of 16.6% from the comparable period in 2025.

Significant drivers of the changes in other noninterest expense included marketing, business development, and card service fees.

Efficiency Ratio

The efficiency ratio 3 , which is a measure commonly used by management and the banking industry, measures the amount of expense incurred to generate a dollar of revenue.

Busey’s efficiency ratio was 54.8% for the three months ended March 31, 2026, compared to 58.7% for the same period in 2025.

Busey’s effective income tax rate was 21.5% for the three months ended March 31, 2026, which is lower than the combined federal and state statutory rate of approximately 26%, primarily due to tax exempt interest income, apportionment changes, and investments in various income tax credits.

Busey’s efficiency ratio was 54.0% for the three months ended June 30, 2026, compared to 55.3% for the same period in 2025, and was 54.4% for the six months ended June 30, 2026, compared to 56.7% for the same period in 2025.

Busey’s effective income tax rate was 22.9% for the three months ended June 30, 2026, and 22.3% for the six months ended June 30, 2026.

Busey’s effective income tax rates were lower than the combined federal and state statutory rate of approximately 26.0% primarily as a result of investments in federal transferrable income tax credits, tax exempt interest income, apportionment changes, and discrete adjustments related to equity award vestings.

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

As of March 31, 2026, Busey was under examination by the Illinois Department of Revenue for M&M’s tax filings for the tax years 2022 and 2023.

As of June 30, 2026, Busey was under examination by the Illinois Department of Revenue for M&M’s tax filings for the tax years 2022 and 2023.

3 The efficiency ratio is a non-GAAP financial measure.

For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see “ Non-GAAP Financial Information ” included in this MD&A.

First Busey Corporation (BUSE) | 72

First Busey Corporation (BUSE) | 2026 Q2 — 79

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

2 unchanged sentences

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

(dollars in thousands) March 31,

(dollars in thousands) June 30,

2026 December 31,

8 unchanged sentences

Securities sold under agreements to repurchase 144,061 166,929 (22,868) (13.7) %

Short-term borrowings 170,000 — 170,000 N/A

Short-term borrowings 28,333 — 28,333 100.0 %

Long-term borrowings 95,325 113,806 (18,481) (16.2) %

16 unchanged sentences

Significant underwriting factors in addition to location, duration, a sound and profitable cash flow basis, and the borrower’s character, include the quality of the borrower’s financial history, the liquidity of the underlying collateral, and the reliability of the valuation of the underlying collateral.

First Busey Corporation (BUSE) | 73

First Busey Corporation (BUSE) | 2026 Q2 — 80

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

1 unchanged sentence

Busey generally limits such relationships to amounts substantially less than the regulatory limit.

Loans to related parties, including executive officers and directors of First Busey Corporation and its subsidiaries, are reviewed for compliance with regulatory guidelines.

Loans to related parties, including loans to Busey’s executive officers and directors, are reviewed for compliance with regulatory guidelines.

Busey maintains an independent loan review department that reviews loans for compliance with Busey’s loan policy on a periodic basis.

7 unchanged sentences

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) March 31,

(dollars in thousands) June 30,

2026 December 31,

11 unchanged sentences

Portfolio loans, net $ 13,030,950 $ 13,393,776 $ (362,826) (2.7) %

Seasonally slow new production and payoff headwinds contributed to anticipated declines in portfolio loan balances during the three months ended March 31, 2026.

First Busey Corporation (BUSE) | 74

Continuing heavy payoff headwinds contributed to anticipated declines in portfolio loan balances during the six months ended June 30, 2026.

First Busey Corporation (BUSE) | 2026 Q2 — 81

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

21 unchanged sentences

The distribution of Busey Bank loans outstanding that were originated in each of these markets is presented in the tables below:

As of March 31, 2026

As of June 30, 2026

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

9 unchanged sentences

Portfolio loans, net of ACL

First Busey Corporation (BUSE) | 75

First Busey Corporation (BUSE) | 2026 Q2 — 82

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

15 unchanged sentences

In addition, Busey adjusted its methodology for allocation of purchase accounting, loan fees, and clearings.

For comparative purposes, the table above reflects these changes applied to Busey’s 2025 loan balances.

Commercial Real Estate Loans

CRE loans comprised 41.4% of Busey’s total loan portfolio as of March 31, 2026, and CRE properties were 25.9% owner occupied.

CRE loans comprised 41.3% of Busey’s total loan portfolio as of June 30, 2026, and CRE properties were 26.3% 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.

(dollars in thousands) March 31, 2026 December 31, 2025

(dollars in thousands) June 30, 2026 December 31, 2025

CRE by Occupancy

2 unchanged sentences

CRE $ 5,452,781 100.0 % $ 5,550,018 100.0 %

First Busey Corporation (BUSE) | 76

First Busey Corporation (BUSE) | 2026 Q2 — 83

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

1 unchanged sentence

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 March 31, 2026

As of June 30, 2026

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

9 unchanged sentences

Restaurant 151,043 37,328 113,715 75.3 %

Self-Storage 150,964 146,589 4,375 2.9 %

Senior housing 136,207 132,236 3,971 2.9 %

Self-Storage 109,884 105,558 4,326 3.9 %

Nursing homes 46,808 45,450 1,358 2.9 %

1 unchanged sentence

Group homes 4,909 3,520 1,389 28.3 %

Continuing Care Facilities 2,952 2,952 — — %

Land acquisition and development 90 — 90 100.0 %

7 unchanged sentences

Provision expenses for loan losses were recorded as follows:

Three Months Ended March 31,

Three Months Ended June 30,

Six Months Ended June 30,

(dollars in thousands) Location 2026

2 unchanged sentences

$ 1,532 $ 1,005 $ 3,925 $ 43,457

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

First Busey Corporation (BUSE) | 77

___________________________________________

The six months ended June 30, 2025, included $42.4 million of provision for loan losses expense recorded to establish an initial allowance for non-PCD loans immediately following the close of the CrossFirst acquisition in accordance with ASC 326-20-30-15.

First Busey Corporation (BUSE) | 2026 Q2 — 84

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

The ACL and the ratio of ACL to portfolio loan balances is presented below by lending activity:

As of March 31, 2026 As of December 31, 2025

As of June 30, 2026 As of December 31, 2025

(dollars in thousands) Portfolio Loans ACL Ratio of ACL to

9 unchanged sentences

Total $ 13,195,154 $ 164,204 1.24 % $ 13,567,799 $ 174,023 1.28 %

As of March 31, 2026, Busey management believed the level of the allowance to be appropriate based upon the information available.

As of June 30, 2026, 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.

8 unchanged sentences

Busey’s loan portfolio is collateralized primarily by real estate.

First Busey Corporation (BUSE) | 78

First Busey Corporation (BUSE) | 2026 Q2 — 85

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

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

(dollars in thousands) March 31,

(dollars in thousands) June 30,

2026 December 31,

8 unchanged sentences

Total non-performing loans 67,434 53,486 13,948 26.1 %

OREO and other repossessed assets 3,337 4,626 (1,289) NM

OREO and other repossessed assets 2,871 4,626 (1,755) (37.9) %

Total non-performing assets 70,305 58,112 12,193 21.0 %

15 unchanged sentences

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

Non-performing assets, which include non-performing loans, OREO, and other repossessed assets, declined to $49.9 million as of March 31, 2026, compared to $58.1 million as of December 31, 2025.

Non-performing assets represented 0.28% of total assets as of March 31, 2026, compared to 0.32% as of December 31, 2025.

Busey’s ACL was 3.38 times its non-performing assets as of March 31, 2026, compared to 2.99 times its non-performing assets as of December 31, 2025.

Classified assets, which include non-performing assets and substandard loans, increased to $216.4 million as of March 31, 2026, compared to $174.5 million as of December 31, 2025, as a few larger commercial credits that Busey has been monitoring shifted to substandard still accruing.

Classified assets represented 9.35% of the Bank’s Tier 1 capital and ACL at March 31, 2026, compared to 7.51% at December 31, 2025.

First Busey Corporation (BUSE) | 79

Non-performing assets, which include non-performing loans, OREO, and other repossessed assets, increased to $70.3 million as of June 30, 2026, compared to $58.1 million as of December 31, 2025.

Non-performing assets represented 0.39% of total assets as of June 30, 2026, compared to 0.32% as of December 31, 2025.

The ACL was equal to 2.34 times the balance of non-performing assets as of June 30, 2026, compared to 2.99 times the balance of non-performing assets as of December 31, 2025.

Classified assets, which include non-performing assets and substandard loans, increased to $226.0 million as of June 30, 2026, compared to $174.5 million as of December 31, 2025.

Classified assets represented 9.69% of the Bank’s Tier 1 capital and ACL at June 30, 2026, compared to 7.51% at December 31, 2025.

First Busey Corporation (BUSE) | 2026 Q2 — 86

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

4 unchanged sentences

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 increased to $166.5 million, or 1.2% of portfolio loans, as of March 31, 2026, compared to $116.4 million, or 0.9% of portfolio loans, as of December 31, 2025.

Potential problem loans increased to $155.7 million, or 1.2% of portfolio loans, as of June 30, 2026, compared to $116.4 million, or 0.9% of portfolio loans, as of December 31, 2025.

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

As of March 31, 2026, 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.

Total deposits decreased by 1.1% to $14.74 billion as of March 31, 2026, compared to $14.91 billion as of December 31, 2025.

As of June 30, 2026, 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.

Total deposits increased by 1.5% to $15.13 billion as of June 30, 2026, compared to $14.91 billion as of December 31, 2025.

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

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

Core deposits represented 93.7% of total deposits as of March 31, 2026.

Core deposits represented 93.7% of total deposits as of June 30, 2026.

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 $6.31 billion, or 43% of total deposits, as of March 31, 2026, compared to $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 $5.45 billion, or 37% of total deposits, as of March 31, 2026, compared to $5.58 billion, or 37% of total deposits, as of December 31, 2025.

Estimated uninsured deposits were $6.52 billion, or 43% of total deposits, as of June 30, 2026, compared to $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 $5.30 billion, or 35% of total deposits, as of June 30, 2026, compared to $5.58 billion, or 37% of total deposits, as of December 31, 2025.

For additional information about Busey’s deposits, see “ Note 6.

6 unchanged sentences

Management’s Discussion and Analysis—Non-GAAP Financial Information” included in this Quarterly Report.

First Busey Corporation (BUSE) | 80

First Busey Corporation (BUSE) | 2026 Q2 — 87

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

Average liquid assets are summarized in the table below:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2026 2025 2026 2025

5 unchanged sentences

Average liquid assets as a percent of average total assets 1.1 % 4.1 % 1.1 % 4.7 %

Unencumbered cash and securities on Busey’s Consolidated Balance Sheets (Unaudited) are summarized as follows:

(dollars in thousands) March 31,

Unencumbered cash and securities on Busey’s Consolidated Balance Sheets (Unaudited) are summarized in the table below:

(dollars in thousands) June 30,

2026 December 31,

5 unchanged sentences

Debt securities available for sale pledged as collateral (618,327) (562,566)

Cash and unencumbered securities $ 1,867,562 $ 1,797,932

Unencumbered cash and securities $ 2,230,561 $ 1,797,932

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) March 31,

(dollars in thousands) June 30,

2026 December 31,

6 unchanged sentences

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

As of March 31, 2026, management believed that adequate liquidity existed to meet all projected cash flow obligations.

As of June 30, 2026, management believed that adequate liquidity existed to meet all projected cash flow obligations.

Busey seeks to achieve a satisfactory degree of liquidity by actively managing both assets and liabilities.

Asset management guides the proportion of liquid assets to total assets, while liability management monitors future funding requirements and prices liabilities accordingly.

First Busey Corporation (BUSE) | 81

First Busey Corporation (BUSE) | 2026 Q2 — 88

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

3 unchanged sentences

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

(dollars in thousands) March 31,

(dollars in thousands) June 30,

2026 December 31,

2 unchanged sentences

The following table summarizes Busey’s provision for unfunded commitments expenses (releases):

Three Months Ended March 31,

(dollars in thousands) Location 2026

Three Months Ended June 30,

Six Months Ended June 30,

(dollars in thousands)

Location 2026

Provision for unfunded commitments 1

1 unchanged sentence

$ 657 $ 4,695 $ 1,322 $ 7,836

The three months ended March 31, 2025, included $3.1 million to establish an initial allowance for unfunded commitments in connection with the CrossFirst acquisition.

___________________________________________

The six months ended June 30, 2025, included $7.2 million to establish an initial allowance for unfunded commitments in connection with the CrossFirst acquisition, which included a $4.0 million adjustment to the initial provision for unfunded commitments that was recorded in the second quarter of 2025 resulting from the adoption of a new CECL model.

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.

4 unchanged sentences

These balances are then multiplied by the factor appropriate for that risk-weighted category.

In order to refrain from restrictions on dividends, equity repurchases, and discretionary bonus payments, banking institutions must maintain capital in excess of regulatory minimum capital requirements.

The table below presents minimum capital ratios that include the capital conservation buffer in comparison to the capital ratios for First Busey and its subsidiary bank as of March 31, 2026:

In order to avoid regulatory limits on dividends, equity repurchases, and discretionary bonus payments, banking institutions must maintain capital in excess of regulatory minimum capital requirements.

The table below presents minimum capital ratios that include the capital conservation buffer in comparison to the capital ratios for Busey and Busey Bank as of June 30, 2026:

Minimum Capital Requirements with

Capital Buffer As of March 31, 2026

Capital Buffer As of June 30, 2026

Common equity Tier 1 capital to risk weighted assets 7.00 % 12.53 % 14.65 %

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Regulatory Capital.”

First Busey Corporation (BUSE) | 82

First Busey Corporation (BUSE) | 2026 Q2 — 89

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

7 unchanged sentences

The following tables present reconciliations between these non-GAAP measures and what management believes to be the most directly comparable GAAP financial measures.

First Busey Corporation (BUSE) | 83

First Busey Corporation (BUSE) | 2026 Q2 — 90

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

1 unchanged sentence

Calculation of Adjusted Net Income and Adjusted Diluted Earnings Per Common Share

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands, except per share amounts) 2026 2025 2026 2025

Net income (loss) (GAAP)

Net income (GAAP)

[a] $ 63,176 $ 47,404 $ 113,157 $ 17,414

Day 2 provision for credit losses 1

Other acquisition (income) expenses

Adjustment of initial provision for unfunded commitments due to adoption of new model 2

— 4,030 — 4,030

Other acquisition expenses

1,196 16,600 6,440 42,626

Restructuring expenses

1,930 — 13,386 —

Net securities (gains) losses

(2,445) (5,997) (1,505) 9,771

Related tax benefit 3

1 unchanged sentence

Non-recurring deferred tax adjustment 4

— 328 — 4,919

Adjusted net income (Non-GAAP)

1 unchanged sentence

Preferred dividends

[c] 4,590 155 9,179 155

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

2 unchanged sentences

[e] 85,385,382 90,883,711 86,602,278 80,251,577

Diluted earnings (loss) per common share (GAAP)

Diluted earnings per common share (GAAP)

[(a-c)÷e] $ 0.69 $ 0.52 $ 1.20 $ 0.22

Weighted average number of common shares outstanding, diluted (Non-GAAP) 4

[f] 87,831,295 69,502,717

Adjusted diluted earnings per common share (Non-GAAP)

[d÷f] $ 0.67 $ 0.57

[d÷e] $ 0.69 $ 0.63 $ 1.36 $ 1.21

___________________________________________

The Day 2 provision represents the initial provision for credit losses recorded in connection with the CrossFirst acquisition to establish an allowance on non-PCD loans and unfunded commitments and is reflected within the provision for credit losses line on the Statements of Income (Unaudited).

Tax benefits were calculated using tax rates of 25.0% and 25.3% for the three months ended March 31, 2026 and 2025, respectively.

A deferred valuation tax adjustment was recorded in the first quarter of 2025 in connection with the CrossFirst acquisition and the expansion of Busey’s footprint into new states.

In the second quarter of 2025, Busey recorded an adjustment to the initial provision for unfunded commitments for CrossFirst acquisition-date balances based on revised estimates resulting from implementation of a new CECL model.

Tax benefits were calculated using tax rates of 25.0% and 26.5% for the six months ended June 30, 2026 and 2025, respectively.

Tax benefits for quarterly periods were calculated as the year-to-date tax amounts less the tax reported for previous quarters during the year.

A deferred tax valuation adjustment was recorded in the first quarter of 2025 in connection with the CrossFirst acquisition and the expansion of Busey’s footprint into new states.

Additionally, 2025 included a write-off of deferred tax assets related to non-deductible compensation and acquisition-related expenses.

Deferred tax adjustments are reflected within the income taxes line on the Statements of Income (Unaudited).

Dilution includes shares that would have been dilutive if there had been net income during the period.

First Busey Corporation (BUSE) | 84

First Busey Corporation (BUSE) | 2026 Q2 — 91

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

1 unchanged sentence

Calculation of Return On Average Assets, Return On Average Tangible Common Equity, and Related Adjusted Return Measures

Three Months Ended

(dollars in thousands) March 31,

2026 March 31,

Net income (loss) (GAAP)

Three Months Ended Six Months Ended

(dollars in thousands) June 30,

2026 June 30,

2025 June 30,

2026 June 30,

Net income (GAAP)

[a] $ 63,176 $ 47,404 $ 113,157 $ 17,414

Amortization of intangible assets

4,232 4,592 8,523 7,675

Tax effect of amortization of intangible assets 1

1 unchanged sentence

Preferred dividends

(4,590) (155) (9,179) (155)

Tangible net income available to common stockholders (Non-GAAP)

3 unchanged sentences

Amortization of intangible assets

4,232 4,592 8,523 7,675

Tax effect of amortization of intangible assets 1

1 unchanged sentence

Preferred dividends

(4,590) (155) (9,179) (155)

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

17 unchanged sentences

___________________________________________

Tax effects were calculated using income tax rates of 25.0% and 25.3% for the three months ended March 31, 2026 , and March 31, 2025, respectively.

Tax effects were calculated using income tax rates of 25.0% and 26.5% for the six months ended June 30, 2026 and 2025, respectively.

Tax effects for quarterly periods were calculated as the year-to-date tax amounts less the tax reported for previous quarters during the year.

A reconciliation is provided in the previous table.

1 unchanged sentence

First Busey Corporation (BUSE) | 85

First Busey Corporation (BUSE) | 2026 Q2 — 92

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

1 unchanged sentence

Calculation of Net Interest Margin and Adjusted Net Interest Margin

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2026 2025 2026 2025

2 unchanged sentences

Tax-equivalent adjustment 1

841 791 1,718 1,328

Tax-equivalent net interest income (Non-GAAP)

14 unchanged sentences

Calculation of Pre-Provision Net Revenue and Related Measures

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2026 2025 2026 2025

4 unchanged sentences

Net security (gains) losses (GAAP)

(2,445) (5,997) (1,505) 9,771

Total noninterest expense (GAAP)

13 unchanged sentences

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments out of total noninterest expense and into the provision for credit losses.

This change affects all measures and ratios derived from total noninterest expense.

Annualized measure.

First Busey Corporation (BUSE) | 86

First Busey Corporation (BUSE) | 2026 Q2 — 93

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

1 unchanged sentence

Calculation of Efficiency Ratio

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(dollars in thousands) 2026 2025 2026 2025

2 unchanged sentences

Tax-equivalent adjustment 1

841 791 1,718 1,328

Tax-equivalent net interest income (Non-GAAP)

3 unchanged sentences

Net security (gains) losses

(2,445) (5,997) (1,505) 9,771

Adjusted noninterest income (Non-GAAP)

21 unchanged sentences

Beginning in 2026, Busey changed the caption for this revenue measure, which was previously called “adjusted tax-equivalent revenue.” The calculation itself has not changed.

This change affects all measures and ratios derived from total noninterest expense.

Beginning in 2026, to better align with industry standards, Busey revised its calculation of adjusted noninterest expense, for all periods presented, to exclude any adjustment for amortization of intangible assets.

1 unchanged sentence

Beginning in 2026, Busey now reports a single efficiency ratio, which was previously reported as the “adjusted efficiency ratio.”

First Busey Corporation (BUSE) | 87

First Busey Corporation (BUSE) | 2026 Q2 — 94

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

1 unchanged sentence

Calculation of Tangible Common Equity, and Related Measures and Ratio

(dollars in thousands, except per share amounts) March 31,

(dollars in thousands, except per share amounts) June 30,

2026 December 31,

23 unchanged sentences

[c÷d] $ 20.40 $ 20.23

___________________________________________

Beginning in 2025, Busey revised its calculation of tangible assets and tangible common equity, for all periods presented, to exclude any tax adjustment.

Calculation of Core Deposits and Related Ratio

(dollars in thousands) March 31,

(dollars in thousands) June 30,

2026 December 31,

9 unchanged sentences

[b÷a] 93.68 % 93.65 %

First Busey Corporation (BUSE) | 88

First Busey Corporation (BUSE) | 2026 Q2 — 95

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

7 unchanged sentences

(2) changes in, and the interpretation and prioritization of, local, state, and federal laws, regulations, and governmental policies (including those concerning Busey's general business);

(3) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, military conflicts, acts of war or threats thereof, or other adverse external events that could cause economic deterioration or instability in credit markets (including the conflicts in the Middle East and Russia’s invasion of Ukraine);

(3) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, military conflicts, acts of war or threats thereof, or other adverse external events that could increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control (including the conflicts in the Middle East and Russia’s invasion of Ukraine);

(4) unexpected results of acquisitions, including the acquisition of CrossFirst, which may include the failure to realize the anticipated benefits of the acquisitions and the possibility that the transaction and integration costs may be greater than anticipated;

1 unchanged sentence

(6) the impact of bank failures or adverse developments at other banks and related negative publicity about the banking industry, including investor and depositor sentiment regarding bank stability and liquidity;

(7) new or revised accounting policies and practices as may be adopted by state and federal regulatory banking agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission, or the Public Company Accounting Oversight Board;

(7) new or revised accounting policies and practices as may be adopted by state and federal regulatory banking agencies, the FASB, the SEC, or the PCAOB;

(8) changes in interest rates and prepayment rates of Busey’s assets (including the impact of sustained elevated interest rates);

2 unchanged sentences

(11) the loss of key executives or associates, talent shortages, and employee turnover;

(12) unexpected outcomes and costs of existing or new litigation, investigations, or other legal proceedings, inquiries, and regulatory actions involving Busey (including with respect to Busey’s Illinois franchise taxes);

(13) fluctuations in the value of securities held in Busey’s securities portfolio, including as a result of changes in interest rates;

(14) credit risk and risk from concentrations (by type of borrower, geographic area, collateral, and industry), within Busey's loan portfolio and large loans to certain borrowers (including commercial real estate loans);

(15) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversify their exposure;

(15) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure;

(16) the level of non-performing assets on Busey’s balance sheets;

(17) interruptions involving information technology and communications systems or third-party servicers;

(17) interruptions involving information technology and communications systems or third-party vendors;

(18) breaches or failures of information security controls or cybersecurity-related incidents;

(19) the availability of future equity and debt issuances and other capital raising opportunities on favorable terms;

(20) the economic impact on Busey and its customers of climate change, natural disasters, and exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts;

5 unchanged sentences

Additional information concerning Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s 2025 Annual Report .

First Busey Corporation (BUSE) | 2026 Q2 — 96

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

CRITICAL ACCOUNTING ESTIMATES

Busey has established various accounting policies that govern the application of GAAP in the preparation of its unaudited consolidated financial statements.

Significant accounting policies are described in “ Note 1.

Busey’s most significant accounting policies are described in “ Note 1.

Significant Accounting Policies ” of Busey’s 2025 Annual Report .

First Busey Corporation (BUSE) | 89

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

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.

These estimates involve judgments, assumptions, and uncertainties that are susceptible to change.

In the event that different assumptions or conditions were to prevail, and depending on the severity of such changes, the possibility of a materially different financial condition or materially different results of operations is a reasonable likelihood.

Further, changes in accounting standards could impact Busey’s critical accounting estimates.

Management has reviewed these critical accounting estimates and related disclosures with Busey’s Audit Committee.

The following estimates could be deemed critical:

Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations

Business combinations are accounted for using the acquisition method of accounting.

Under the acquisition method of accounting, assets acquired and liabilities assumed are recorded at their estimated fair value on the date of acquisition.

Fair values are determined based on the definition of “fair value” defined in ASC Topic 820 “Fair Value Measurement” as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The determination of fair values is based on valuations using management’s assumptions of future growth rates, future attrition, discount rates, multiples of earnings, or other relevant factors.

In addition, Busey engages third party specialists to assist in the development of fair values.

The fair value of a loan portfolio acquired in a business combination generally requires greater levels of management estimates and judgment than other assets acquired or liabilities assumed.

Acquired loans are within the scope of ASC Topic 326 “Financial Instruments-Credit Losses.” However, the offset to record the allowance on acquired loans at the date of acquisition depends on whether or not the loan is classified as PCD.

The allowance for PCD loans is recorded through a gross-up effect, while the allowance for acquired non-PCD loans is recorded through provision expense, consistent with originated loans.

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 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 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.

Income taxes are estimated for the tax effects of the transactions reported on Busey’s unaudited consolidated financial statements and consist of an expense for taxes currently due plus assets and/or liabilities for deferred taxes.

Deferred taxes represent the future tax consequences of differences between the tax basis and accounting basis of certain assets and liabilities, which will either be taxable or deductible when the assets and liabilities are recovered or settled.

Deferred tax assets and liabilities are estimates that are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled.

Deferred taxes are reported in other assets or other liabilities on the Consolidated Balance Sheets (Unaudited) .

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

First Busey Corporation (BUSE) | 90

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)

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.

Busey must also make estimates about when in the future certain items will affect taxable income.

Disputes over interpretations of the tax laws may be subject to review and adjudication by the court systems of the various tax jurisdictions or may be settled with the taxing authority upon examination or audit.

Although Busey’s management believes that its judgments are sound and its tax estimates are reasonable, interpretations of tax law applied by the taxing jurisdictions could differ.

As such, Busey may be exposed to losses or gains, which could be material.

An unfavorable tax settlement would result in an increase in Busey’s effective income tax rate in the period of resolution.

A favorable tax settlement would result in a reduction in Busey’s effective income tax rate in the period of resolution.

Allowance for Credit Losses

Busey calculates the ACL at each reporting date.

Busey recognizes an allowance for the lifetime expected credit losses for the amount it does not expect to collect.

Measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported book value.

The calculation also contemplates that Busey may not be able to make or obtain such forecasts for the entire life of the financial assets and requires a reversion to historical credit loss information.

In determining the ACL, management relies predominantly on a disciplined credit review and approval process that extends to the full range of Busey’s credit exposure.

The ACL must be determined on a collective (pool) basis when similar risk characteristics exist.

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

Loans deemed uncollectible are charged 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.

Determining the ACL involves significant judgments and assumptions.

Macroeconomic forecasts provided by a third party and the economic indices sourced are significant judgments used in determining the allowance.

Changes in these economic forecasts could significantly affect the ACL and lead to materially different amounts from one period to the next.

Additionally, prepayment assumptions impact model output.

Further, Busey completes a quarterly evaluation of several qualitative factors to determine if there should be adjustments made to the ACL.

These factors include economic conditions, collateral, concentrations, delinquency trends, portfolio composition, underwriting, and certain other risks.

Significant downturns relating to loan quality and economic conditions could result in a requirement for an additional allowance.

Likewise, an upturn in loan quality and improved economic conditions may allow for a reduction in the required allowance.

Because of the nature of the judgments and assumptions made by management, actual results may differ from these judgments and assumptions.

First Busey Corporation (BUSE) | 91

Certain of these accounting policies require management to use significant judgment and estimates, which can have a material impact on the carrying value of certain assets and liabilities.

Busey considers these policies to be its critical accounting estimates.

The judgment and assumptions made are based upon historical experience, future forecasts, or other factors that management believes to be reasonable under the circumstances.

Because of the nature of the judgment and assumptions, actual results could differ from estimates, which could have a material effect on Busey’s financial condition and results of operations.

For additional information regarding critical accounting estimates, see the section titled “ Critical Accounting Estimates ” included in Item 7 of Busey’s 2025 Annual Report .

There have been no material changes in Busey’s application of critical accounting estimates since December 31, 2025.

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-Q

Item 2. Management’s Discussion and Analysis