First Busey (BUSE) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.62 per share. This compares to earnings of $0.58 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +3.23%. A quarter ago, it was expected that this bank holding company would post earnings of $0.61 per share when it actually produced earnings of $0.63, delivering a surprise of +3.28%.Over the last four quarters, the ...

Financial Performance - Third quarter 2025 net income was $57.1 million, or $0.58 per diluted share, compared to $47.4 million, or $0.52 per diluted share in Q2 2025, and $32.0 million, or $0.55 per diluted share in Q3 2024[5]. - Adjusted net income available to common stockholders was $57.4 million, or $0.64 per diluted share, for Q3 2025, compared to $57.2 million, or $0.63 per diluted share in Q2 2025, and $32.9 million, or $0.57 per diluted share in Q3 2024[10]. - Pre-provision net revenue was $76.6 million for Q3 2025, compared to $64.2 million in Q2 2025 and $42.2 million in Q3 2024[11]. - Adjusted net income (Non-GAAP) for Q3 2025 reached $62,496 thousand, compared to $57,394 thousand in Q2 2025 and $32,928 thousand in Q3 2024, reflecting a year-over-year growth of 89.8%[62]. - Net income for Q3 2025 was $57,098 thousand, an increase of 20.4% from $47,404 thousand in Q2 2025 and a significant rise from $32,004 thousand in Q3 2024[62]. Interest Income and Margin - Total interest income for Q3 2025 was $244.5 million, while total interest expense was $89.4 million, resulting in net interest income of $155.1 million[8]. - Net interest margin expanded by 9 basis points to 3.58% in Q3 2025, driven by the runoff of $794.6 million high-cost deposits[4]. - Net interest income (GAAP) for Q3 2025 was $155,137 thousand, up from $153,183 thousand in Q2 2025 and significantly higher than $82,647 thousand in Q3 2024[64]. - The adjusted net interest margin (Non-GAAP) for Q3 2025 was 3.45%, compared to 3.33% in Q2 2025 and 2.97% in Q3 2024, indicating improved efficiency in interest income generation[64]. Asset Quality and Credit Metrics - Credit quality improved with classified assets as a percentage of capital falling to 7.0% and net charge-offs at 0.17%[4]. - Net charge-offs for the three months ended September 30, 2025, were $5.8 million, a decrease from $12.9 million in the previous quarter, and an increase from $0.2 million in the same quarter of 2024[32]. - The allowance for credit losses was $174.2 million as of September 30, 2025, representing 1.28% of total portfolio loans, with a coverage ratio of 3.67 times non-performing loans[31]. - Non-performing assets represented 0.32% of total assets as of September 30, 2025, a slight increase from 0.31% as of June 30, 2025, and a significant increase from 0.07% as of September 30, 2024[30]. Deposits and Borrowings - Total deposits were $15,070.2 million as of September 30, 2025, down from $15,801.8 million as of June 30, 2025, and up from $9,943.2 million as of September 30, 2024[37]. - Core deposits accounted for 93.8% of total deposits as of September 30, 2025, with an estimated 35% being uninsured and uncollateralized[38]. - Total borrowings increased by 2.3% compared to the second quarter of 2025, totaling $272.9 million, but decreased by 9.7% compared to the third quarter of 2024[39]. Operational Efficiency - Total noninterest expense decreased by 6.1% to $120.02 million in Q3 2025 compared to Q2 2025, but increased by 58.9% compared to Q3 2024[19]. - The efficiency ratio improved to 58.5% in Q3 2025 from 63.9% in Q2 2025 and 61.8% in Q3 2024[20]. - The adjusted efficiency ratio (Non-GAAP) improved to 58.51% in Q3 2025 from 61.81% in Q3 2024, indicating enhanced operational efficiency[67]. Capital and Liquidity - Common Equity Tier 1 Capital grew to 12.33%, with tangible common equity to tangible assets increasing to 9.9%[4]. - Busey's common equity Tier 1 capital to risk-weighted assets ratio was 12.33% as of September 30, 2025, providing a buffer of over $810 million above required levels[42]. - As of September 30, 2025, Busey's available liquidity sources totaled $7.85 billion, with cash flows from maturing securities expected to be approximately $90.5 million for Q4 2025 and $305.9 million for 2026[41]. Wealth Management and Noninterest Income - Noninterest income totaled $41.20 million in Q3 2025, a decrease of 8.2% from Q2 2025, but an increase of 14.9% compared to Q3 2024[16]. - Wealth management fees increased by 2.4% to $17.18 million in Q3 2025, with assets under care growing to $14.96 billion from $14.10 billion in Q2 2025[17]. - Total noninterest income (GAAP) for Q3 2025 was $41,198,000, compared to $35,845,000 in Q3 2024, reflecting a 14.5% increase[67]. Strategic Initiatives - The company expects balance sheet optimization to be largely complete by year-end, aiming for stability in loans and deposits[4]. - The company expects to realize 50% of the $25 million annual pre-tax expense synergies from the CrossFirst acquisition in 2025 and 100% in 2026[19]. - The company has expanded its footprint into new states as part of its growth strategy, which includes adjustments related to the CrossFirst acquisition[63]. Stockholder Returns - During Q3 2025, Busey paid dividends of $0.25 per share on common stock and $20.00 per share on Series A Non-Cumulative Perpetual Preferred Stock[44]. - In Q3 2025, Busey repurchased 580,000 shares of common stock at a weighted average price of $23.36 per share, totaling $13.5 million[45].

LEAWOOD, Kan., Oct. 28, 2025 (GLOBE NEWSWIRE) -- First Busey Corporation (Nasdaq: BUSE) Announces 2025 Third Quarter Earnings. Net Income Diluted EPS Net Interest Margin(1) ROAA(1) ROATCE(1)$57.1 million$62.5 million (adj)(2) $0.58$0.64 (adj)(2) 3.58%3.45% (adj)(2) 1.21%1.33% (adj)(2) 11.96%13.20% (adj)(2)          MESSAGE FROM OUR CHAIRMAN & CEOWe continued to optimize our balance sheet to be more efficient and profitable with adjusted return on average assets(2) improving to 1.33% and net interest margin( ...

Q3 2025 EARNINGS INVESTOR PRESENTATION October 28, 2025 3Q25 Earnings Investor Presentation First Busey Corporation | Ticker: BUSE 2 Forward-Looking Statements This presentation may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to First Busey Corporation's ("Busey's") financial condition, results of operations, plans, objectives, future performance, and business. Forward-looking statements, which may be based upon beliefs, expect ...

[GLOSSARY](index=4&type=section&id=GLOSSARY) The glossary defines acronyms, abbreviations, and other terms used throughout the Quarterly Report to ensure clarity and understanding - The glossary **defines acronyms, abbreviations, and other terms** used throughout the Quarterly Report to ensure clarity and understanding[10](index=10&type=chunk) [PART I—FINANCIAL INFORMATION](index=6&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [ITEM 1. FINANCIAL STATEMENTS](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Presents First Busey Corporation's unaudited consolidated financial statements and notes, prepared under GAAP, with interim results not indicative of full-year performance [CONSOLIDATED BALANCE SHEETS (Unaudited)](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS%20%28Unaudited%29) Consolidated Balance Sheet Highlights (dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--------------------------------------- | :------------ | :---------------- | :--------- | | Cash and cash equivalents | $752,352 | $697,659 | 7.8% | | Debt securities available for sale | $2,217,788 | $1,810,221 | 22.5% | | Portfolio loans (net of ACL) | $13,625,285 | $7,613,683 | 79.0% | | **Total assets** | **$18,918,740** | **$12,046,722** | **57.0%** | | Noninterest-bearing deposits | $3,590,363 | $2,719,907 | 32.0% | | Interest-bearing deposits | $12,211,409 | $7,262,583 | 68.1% | | **Total deposits** | **$15,801,772** | **$9,982,490** | **58.3%** | | Total liabilities | $16,506,194 | $10,663,453 | 54.8% | | **Total stockholders' equity** | **$2,412,546** | **$1,383,269** | **74.4%** | - Total assets, portfolio loans, and deposits saw **substantial increases**, largely driven by the **CrossFirst acquisition**[14](index=14&type=chunk) [CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited)](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20%28LOSS%29%20%28Unaudited%29) Net Income (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $47,404 | $27,357 | 73.3% | | Six Months Ended June 30 | $17,414 | $53,582 | -67.5% | Earnings Per Common Share | Period | Basic EPS 2025 | Basic EPS 2024 | Diluted EPS 2025 | Diluted EPS 2024 | | :-------------------------- | :------------- | :------------- | :--------------- | :--------------- | | Three Months Ended June 30 | $0.53 | $0.48 | $0.52 | $0.47 | | Six Months Ended June 30 | $0.22 | $0.95 | $0.22 | $0.94 | Total Interest Income (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $247,446 | $131,939 | 87.5% | | Six Months Ended June 30 | $414,261 | $257,759 | 60.7% | Total Noninterest Income (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $44,863 | $33,703 | 33.1% | | Six Months Ended June 30 | $66,086 | $68,616 | -3.7% | Total Noninterest Expense (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $127,833 | $75,906 | 68.4% | | Six Months Ended June 30 | $239,863 | $147,353 | 62.8% | [CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20%28Unaudited%29) Total Comprehensive Income (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $64,903 | $29,221 | 122.1% | | Six Months Ended June 30 | $69,142 | $52,059 | 32.8% | Net Change in Unrealized/Unrecognized Gains (Losses) on Debt Securities (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $13,208 | $2,208 | 498.2% | | Six Months Ended June 30 | $41,291 | $2,399 | 1621.2% | Net Change in Unrealized Gains (Losses) on Cash Flow Hedges (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $4,291 | $(344) | NM | | Six Months Ended June 30 | $10,437 | $(3,922) | NM | [CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited)](index=11&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS%27%20EQUITY%20%28Unaudited%29) Total Stockholders' Equity (dollars in thousands) | Period | June 30, 2025 | December 31, 2024 | Change (%) | | :-------------------------- | :-------------- | :---------------- | :--------- | | Balance | $2,412,546 | $1,383,269 | 74.4% | - Significant equity changes for the six months ended June 30, 2025, include net income of **$17.4 million**, OCI of **$51.7 million**, stock issued in acquisition of **$808.1 million**, preferred stock issuance of **$207.4 million**, stock repurchases of **$(26.5) million**, and common stock dividends of **$(36.7) million**[24](index=24&type=chunk) [CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)](index=12&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS%20%28Unaudited%29) Net Increase (Decrease) in Cash and Cash Equivalents (dollars in thousands) | Period | 2025 | 2024 | Change | | :-------------------------- | :------- | :--------- | :------- | | Six Months Ended June 30 | $54,693 | $(434,312) | NM | Cash Flows by Activity (Six Months Ended June 30, dollars in thousands) | Activity | 2025 | 2024 | Change (%) | | :--------------------------------------- | :------- | :------- | :--------- | | Net cash provided by (used in) operating activities | $57,894 | $65,825 | -12.1% | | Net cash provided by (used in) investing activities | $722,404 | $350,930 | 105.9% | | Net cash provided by (used in) financing activities | $(725,605) | $(851,067) | 14.7% | - Investing activities were significantly boosted by **$385.8 million** in net cash received from acquisitions and **$528.9 million** from sales of debt securities available for sale[27](index=27&type=chunk) [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)](index=14&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS%20%28Unaudited%29) [Note 1. Significant Accounting Policies](index=14&type=section&id=Note%201.%20Significant%20Accounting%20Policies) Outlines First Busey Corporation's operations, segments, and key accounting policies, including a significant franchise tax dispute - First Busey Corporation is an **$18.92 billion** financial holding company operating in three segments: **Banking, Wealth Management, and FirsTech**[31](index=31&type=chunk) - In connection with the **CrossFirst acquisition**, Busey issued **7,750 shares of Busey Series A Preferred Stock** (8.00% dividend) on **March 1, 2025**, and **8,600,000 Depositary Shares** (representing 1/40th interest in Busey Series B Preferred Stock) on **May 20, 2025**[44](index=44&type=chunk)[45](index=45&type=chunk) - Busey is evaluating the impact of the **'One Big Beautiful Bill Act'** enacted **July 4, 2025**, which introduces amendments to federal tax legislation including **immediate expensing of R&D** and **100% bonus depreciation**[41](index=41&type=chunk) - On **July 2, 2025**, Busey received a notice of hearing from the Illinois Secretary of State regarding purportedly due franchise taxes, penalties, interest, and charges estimated to be in excess of **$28 million**, which Busey disputes[55](index=55&type=chunk)[212](index=212&type=chunk) [Note 2. Mergers and Acquisitions](index=17&type=section&id=Note%202.%20Mergers%20and%20Acquisitions) Details the CrossFirst acquisition on March 1, 2025, expanding Busey's commercial banking and adding **$48.0 million** in goodwill, plus final accounting for the M&M acquisition - Busey completed the acquisition of **CrossFirst Bankshares, Inc.** on **March 1, 2025**, expanding its footprint to **78 full-service locations across 10 states**. CrossFirst Bank merged into Busey Bank on **June 20, 2025**[56](index=56&type=chunk)[57](index=57&type=chunk) - The **CrossFirst acquisition** resulted in **$48.0 million of goodwill**, reflecting expected synergies and revenue opportunities, assigned to the Banking operating segment[63](index=63&type=chunk) Acquisition Date Fair Values (dollars in thousands) | Item | CrossFirst (March 1, 2025) | M&M (April 1, 2024) | | :------------------------------------ | :----------------------- | :---------------- | | Total assets acquired | $7,500,310 | $477,745 | | Total liabilities assumed | $6,739,354 | $444,067 | | Net assets acquired | $760,956 | $33,678 | | Total consideration paid | $808,980 | $49,575 | | Goodwill | $48,024 | $15,897 | Pre-tax Acquisition Expenses (dollars in thousands) | Acquisition | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :---------- | :------------------------------- | :----------------------------- | | CrossFirst | $16,600 | $88,090 | | M&M | $0 | $108 | | **Total** | **$16,600** | **$88,198** | [Note 3. Debt Securities](index=23&type=section&id=Note%203.%20Debt%20Securities) Details Busey's debt securities (AFS and HTM) with significant unrealized losses, but management expects full collection; Q1 2025 repositioning resulted in **$15.5 million** in realized net losses Debt Securities Available for Sale (June 30, 2025, dollars in thousands) | Category | Amortized Cost | Gross Gains | Gross Losses | Fair Value | | :--------------------------------------- | :------------- | :---------- | :----------- | :--------- | | Obligations of U.S. government corporations and agencies | $115,902 | $59 | $(404) | $115,557 | | Obligations of states and political subdivisions | $260,997 | $131 | $(18,975) | $242,153 | | Asset-backed securities | $373,231 | $390 | $0 | $373,621 | | Commercial mortgage-backed securities | $149,844 | $479 | $(12,297) | $138,026 | | Residential mortgage-backed securities | $1,433,077 | $3,870 | $(147,818) | $1,289,129 | | Corporate debt securities | $61,613 | $427 | $(2,738) | $59,302 | | **Total** | **$2,394,664** | **$5,356** | **$(182,232)** | **$2,217,788** | Debt Securities Held to Maturity (June 30, 2025, dollars in thousands) | Category | Amortized Cost | Gross Gains | Gross Losses | Fair Value | | :--------------------------------------- | :------------- | :---------- | :----------- | :--------- | | Commercial mortgage-backed securities | $407,401 | $0 | $(70,772) | $336,629 | | Residential mortgage-backed securities | $395,564 | $0 | $(61,661) | $333,903 | | **Total** | **$802,965** | **$0** | **$(132,433)** | **$670,532** | Realized Net Gains (Losses) on Debt Securities (dollars in thousands) | Period | 2025 | 2024 | Change | | :-------------------------- | :------- | :------- | :------- | | Three Months Ended June 30 | $1 | $(4) | +$5 | | Six Months Ended June 30 | $(15,536) | $(6,806) | -$8,730 | - As of **June 30, 2025**, debt securities with gross unrealized or unrecognized losses had a fair value of **$2.04 billion** and total gross losses of **$314.7 million**. Management does not intend to sell these securities and expects full collection[100](index=100&type=chunk) [Note 4. Portfolio Loans](index=29&type=section&id=Note%204.%20Portfolio%20Loans) Details Busey's loan portfolio, which expanded by **79.4% to $13.81 billion** due to the CrossFirst acquisition, with ACL increasing by **119.8% to $183.3 million** despite strong asset quality Total Portfolio Loans (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $13,808,619 | | December 31, 2024 | $7,697,087 | | **Change** | **+$6,111,532 (+79.4%)** | Loan Portfolio Composition (June 30, 2025) | Category | % of Total Portfolio Loans | | :-------------------------- | :------------------------- | | Commercial loans | 80.3% | | C&I and other commercial | 32.4% | | Commercial Real Estate (CRE) | 40.3% | | Real estate construction | 7.6% | | Retail loans | 19.7% | | Retail real estate | 16.1% | | Retail other | 3.6% | Allowance for Credit Losses (ACL) (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $183,334 | | December 31, 2024 | $83,404 | | **Change** | **+$99,930 (+119.8%)** | Non-Performing Assets (dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--------------------------------------- | :------------ | :---------------- | :--------- | | Non-performing loans | $54,555 | $23,237 | 134.8% | | Non-performing assets | $58,151 | $23,300 | 149.6% | | Classified assets | $175,731 | $85,323 | 106.0% | [Note 5. Leases](index=40&type=section&id=Note%205.%20Leases) Details Busey's operating lease obligations as lessee and lessor; the CrossFirst acquisition significantly increased right-of-use assets, lease liabilities, and total lease costs Lease Balances (dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :------------------ | :------------ | :---------------- | :--------- | | Right of use assets | $38,065 | $10,608 | 258.8% | | Lease liabilities | $39,235 | $11,040 | 255.4% | Total Lease Cost (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $1,828 | $618 | 195.8% | | Six Months Ended June 30 | $2,812 | $1,180 | 138.3% | - The increase in right-of-use assets and lease liabilities is primarily due to **$29.6 million** recognized in connection with the **CrossFirst acquisition**[144](index=144&type=chunk) Future Undiscounted Lease Payments (As of June 30, 2025, dollars in thousands) | Period | Amount | | :---------------- | :------- | | Remainder of 2025 | $3,446 | | 2026 | $6,549 | | 2027 | $6,161 | | 2028 | $5,682 | | 2029 | $4,684 | | 2030 | $3,802 | | Thereafter | $17,796 | | **Total** | **$48,120** | [Note 6. Deposits](index=42&type=section&id=Note%206.%20Deposits) Details Busey's deposit composition; total deposits increased by **58.3% to $15.80 billion** due to CrossFirst acquisition, with core deposits at **92.5%** and uninsured deposits at **$6.66 billion** Total Deposits (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $15,801,772 | | December 31, 2024 | $9,982,490 | | **Change** | **+$5,819,282 (+58.3%)** | Deposit Composition (June 30, 2025, dollars in thousands) | Type | Amount | % of Total | | :-------------------------------- | :----------- | :--------- | | Noninterest-bearing demand deposits | $3,590,363 | 22.7% | | Interest-bearing transaction deposits | $3,216,601 | 20.4% | | Saving deposits and money market deposits | $6,362,352 | 40.3% | | Time deposits | $2,632,456 | 16.7% | | **Total Deposits** | **$15,801,772** | **100.0%** | - Core deposits represented **92.5%** of total deposits as of June 30, 2025[388](index=388&type=chunk) - Estimated uninsured deposits were **$6.66 billion** (**42%** of total deposits) as of June 30, 2025, up from $3.78 billion (38%) at December 31, 2024[388](index=388&type=chunk) [Note 7. Borrowings](index=43&type=section&id=Note%207.%20Borrowings) Outlines Busey's borrowing activities, including repurchase agreements, credit lines, and debt; **$125.0 million** of subordinated notes were redeemed, and long-term debt increased to **$86.6 million** Securities Sold Under Agreements to Repurchase (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $158,030 | | December 31, 2024 | $155,610 | | Weighted average rate (June 30, 2025) | 2.61% | - Busey has a **$40.0 million** revolving line of credit with no outstanding balance as of June 30, 2025, and no short-term borrowings[152](index=152&type=chunk)[153](index=153&type=chunk) Long-term Debt (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $86,557 | | December 31, 2024 | $0 | | FHLB borrowings (June 30, 2025) | $78,888 | | Secured borrowings (June 30, 2025) | $7,669 | - Busey redeemed **$125.0 million** of fixed-to-floating rate subordinated notes on **June 1, 2025**. **$100.0 million** of 5.000% fixed-to-floating rate subordinated notes (issued June 2022) remain outstanding[157](index=157&type=chunk)[158](index=158&type=chunk) [Note 8. Regulatory Capital](index=44&type=section&id=Note%208.%20Regulatory%20Capital) Confirms First Busey and its subsidiary bank maintain capital ratios well above 'well capitalized' thresholds, demonstrating strong financial strength and flexibility - All capital ratios for First Busey and Busey Bank exceeded **'well capitalized'** levels as of **June 30, 2025**, and 2024[162](index=162&type=chunk) Regulatory Capital Ratios (As of June 30, 2025) | Ratio | Minimum Capital Requirement | Minimum To Be Well Capitalized | First Busey (Actual) | Busey Bank (Actual) | | :--------------------------------------- | :-------------------------- | :--------------------------- | :------------------- | :------------------ | | Common equity Tier 1 capital to risk weighted assets | 4.50% | 6.50% | 12.22% | 13.62% | | Tier 1 capital to risk weighted assets | 6.00% | 8.00% | 13.66% | 13.62% | | Total capital to risk weighted assets | 8.00% | 10.00% | 15.75% | 14.53% | | Leverage ratio of Tier 1 capital to average assets | 4.00% | 5.00% (Bank only) | 11.26% | 11.22% | - First Busey exceeded the capital conservation buffer requirements by **522 bps** for Common Equity Tier 1, **516 bps** for Tier 1 Capital, and **525 bps** for Total Capital as of June 30, 2025[167](index=167&type=chunk) [Note 9. Tax Credit Investments and Other Investments in Unconsolidated Entities](index=47&type=section&id=Note%209.%20Tax%20Credit%20Investments%20and%20Other%20Investments%20in%20Unconsolidated%20Entities) Details Busey's investments in unconsolidated entities, primarily tax-advantaged projects; funded investments increased by **25.5% to $88.8 million** as of June 30, 2025 Investments in Unconsolidated Entities (dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :-------------------------- | :------------ | :---------------- | :--------- | | Funded investments | $88,846 | $70,796 | 25.5% | | Unfunded investments | $54,701 | $61,210 | -10.6% | | **Total Investments** | **$143,547** | **$132,006** | **8.7%** | Income Tax Credits and Other Tax Benefits (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $4,319 | $3,800 | 13.7% | | Six Months Ended June 30 | $8,908 | $7,901 | 12.7% | Amortization of Investments in Tax-Advantaged Projects (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $3,829 | $3,371 | 13.6% | | Six Months Ended June 30 | $7,937 | $7,018 | 13.1% | [Note 10. Stock-Based Compensation](index=47&type=section&id=Note%2010.%20Stock-Based%20Compensation) Details the impact of the CrossFirst acquisition on Busey's equity awards and compensation expenses, which significantly increased for the three and six months ended June 30, 2025 - The **CrossFirst acquisition** led to the conversion of CrossFirst equity awards into Busey equity awards and modifications to existing Busey PSUs[171](index=171&type=chunk)[174](index=174&type=chunk)[175](index=175&type=chunk) - **424,390 replacement SSARs** were issued as part of the CrossFirst acquisition, with **344,357 shares outstanding** at June 30, 2025[178](index=178&type=chunk)[179](index=179&type=chunk) Total Stock-Based Compensation Expense (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $5,433 | $1,134 | 379.1% | | Six Months Ended June 30 | $8,827 | $3,537 | 149.6% | Total Unamortized Stock-Based Compensation (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $23,617 | | December 31, 2024 | $10,317 | | Weighted average period for 2020 Equity Plan | 2.0 years | [Note 11. Outstanding Commitments and Contingent Liabilities](index=54&type=section&id=Note%2011.%20Outstanding%20Commitments%20and%20Contingent%20Liabilities) Outlines Busey's off-balance sheet commitments, which increased by **72.9% to $4.41 billion** due to the CrossFirst acquisition, and details a **$28 million** franchise tax dispute Total Off-Balance Sheet Commitments (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $4,406,199 | | December 31, 2024 | $2,548,178 | | **Change** | **+$1,858,021 (+72.9%)** | Reserve for Unfunded Commitments (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $13,803 | | December 31, 2024 | $5,967 | - Busey is involved in a franchise tax dispute with the Illinois Secretary of State, who preliminarily estimated an amount due in excess of **$28 million**. Busey disputes the methodology and intends to vigorously defend itself[212](index=212&type=chunk) - The potential loss from the franchise tax matter cannot be reasonably estimated as of June 30, 2025, but could be material if an accrual is required[214](index=214&type=chunk) [Note 12. Derivative Financial Instruments](index=55&type=section&id=Note%2012.%20Derivative%20Financial%20Instruments) Describes Busey's use of derivative financial instruments for asset liability and customer risk management, including **$500.0 million** in cash flow hedges and **$924.7 million** in customer swaps - Busey utilizes interest rate swap agreements for asset liability management and offers derivative contracts to customers, managing associated risks through offsetting agreements[215](index=215&type=chunk) Cash Pledged to Secure Derivative Obligations (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $24,810 | | December 31, 2024 | $21,900 | - Interest rate swaps designated as cash flow hedges had notional amounts totaling **$500.0 million** as of June 30, 2025, with unrealized losses (net of tax) of **$(9.4) million** in AOCI[218](index=218&type=chunk)[221](index=221&type=chunk) - Customer interest rate swaps not designated as hedges supported variable rate commercial loan relationships totaling **$924.7 million** as of June 30, 2025[225](index=225&type=chunk)[226](index=226&type=chunk) [Note 13. Fair Value Measurements](index=60&type=section&id=Note%2013.%20Fair%20Value%20Measurements) Explains Busey's fair value measurement methodologies for financial assets and liabilities, categorized into a three-level hierarchy based on input observability, detailing recurring and non-recurring measurements - Fair value measurements are categorized into **Level 1** (quoted prices in active markets), **Level 2** (observable inputs), and **Level 3** (unobservable inputs)[241](index=241&type=chunk) Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (June 30, 2025, dollars in thousands) | Item | Level 1 | Level 2 | Level 3 | Total Fair Value | | :--------------------------------------- | :------ | :-------- | :------ | :--------------- | | Debt securities available for sale | $0 | $2,217,788 | $0 | $2,217,788 | | Equity securities | $177 | $15,994 | $0 | $16,171 | | Derivative assets | $0 | $34,843 | $34 | $34,877 | | Derivative liabilities | $0 | $48,633 | $79 | $48,712 | Financial Assets Measured at Fair Value on a Non-recurring Basis (June 30, 2025, dollars in thousands) | Item | Fair Value | Valuation Techniques | Unobservable Input (Weighted Average) | | :--------------------------------------- | :--------- | :------------------- | :------------------------------------ | | Loans evaluated individually, net of related allowance | $32,734 | Appraisal of collateral | Appraisal adjustments (-33.7%) | | OREO and other repossessed assets with subsequent impairment | $3,431 | Appraisal of collateral | Appraisal adjustments (-7.7%) | | Bank property held for sale with impairment | $2,653 | Appraisal of collateral or real estate listing price | Appraisal adjustments (-55.0%) | [Note 14. Earnings Per Common Share](index=66&type=section&id=Note%2014.%20Earnings%20Per%20Common%20Share) Explains basic and diluted EPS calculation; Q2 2025 basic EPS increased to **$0.53**, but six-month EPS decreased significantly to **$0.22** due to the CrossFirst acquisition Net Income Available to Common Stockholders (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $47,249 | $27,357 | 72.7% | | Six Months Ended June 30 | $17,259 | $53,582 | -67.8% | Earnings Per Common Share | Period | Basic EPS 2025 | Basic EPS 2024 | Diluted EPS 2025 | Diluted EPS 2024 | | :-------------------------- | :------------- | :------------- | :--------------- | :--------------- | | Three Months Ended June 30 | $0.53 | $0.48 | $0.52 | $0.47 | | Six Months Ended June 30 | $0.22 | $0.95 | $0.22 | $0.94 | - The weighted average number of common shares outstanding (diluted) for the six months ended June 30, 2025, was **80,251,577**, with **223,149 anti-dilutive common stock equivalents** excluded[264](index=264&type=chunk) [Note 15. Accumulated Other Comprehensive Income (Loss)](index=68&type=section&id=Note%2015.%20Accumulated%20Other%20Comprehensive%20Income%20%28Loss%29) Presents changes in AOCI by component, net of tax; AOCI significantly improved for the three and six months ended June 30, 2025, reaching a balance of **$(155.3) million** AOCI Balance (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $(155,311) | | December 31, 2024 | $(207,039) | | **Change** | **+$51,728 (+25.0%)** | Unrealized Holding Gains (Losses) on Debt Securities Available For Sale, Net (dollars in thousands) | Period | 2025 | 2024 | Change | | :-------------------------- | :------- | :------- | :------- | | Three Months Ended June 30 | $11,988 | $1,205 | +$10,783 | | Six Months Ended June 30 | $28,569 | $(4,476) | NM | Unrealized Gains (Losses) on Cash Flow Hedges, Net (dollars in thousands) | Period | 2025 | 2024 | Change | | :-------------------------- | :------- | :------- | :------- | | Three Months Ended June 30 | $2,598 | $(1,996) | NM | | Six Months Ended June 30 | $7,239 | $(7,228) | NM | [Note 16. Operating Segments and Related Information](index=68&type=section&id=Note%2016.%20Operating%20Segments%20and%20Related%20Information) Provides financial information for Busey's three segments: Banking, Wealth Management, and FirsTech; Banking is the largest contributor, significantly impacted by the CrossFirst acquisition - Busey operates in three reportable segments: **Banking, Wealth Management, and FirsTech**, each offering distinct products and services[269](index=269&type=chunk) Goodwill and Total Assets by Segment (June 30, 2025, dollars in thousands) | Segment | Goodwill | Total Assets | | :---------------- | :--------- | :----------- | | Banking | $358,694 | $18,708,690 | | Wealth Management | $14,108 | $137,756 | | FirsTech | $8,992 | $46,681 | | Other | $0 | $25,613 | | **Total** | **$381,794** | **$18,918,740** | Net Income by Segment (dollars in thousands) | Segment | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2025 | | :---------------- | :------------------------------- | :----------------------------- | | Banking | $45,838 | $26,145 | | Wealth Management | $5,823 | $12,042 | | FirsTech | $(544) | $(783) | | Other | $(3,713) | $(19,990) | | **Total Net Income** | **$47,404** | **$17,414** | [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (UNAUDITED)](index=74&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS%20%28UNAUDITED%29) Provides management's analysis of First Busey Corporation's financial condition and results of operations, highlighting the significant impact of the CrossFirst acquisition on various financial metrics [SCOPE OF DISCUSSION](index=74&type=section&id=SCOPE%20OF%20DISCUSSION) - The discussion aims to assist readers in understanding Busey's financial condition and results of operations for the three and six months ended June 30, 2025[288](index=288&type=chunk) - It should be read in conjunction with Busey's unaudited consolidated financial statements and the 2024 Annual Report[288](index=288&type=chunk) [BUSINESS](index=74&type=section&id=BUSINESS) [Banking Center Markets](index=74&type=section&id=Banking%20Center%20Markets) Details Busey Bank's extensive network of **78 banking centers** across **six regions in 10 states**, highlighting diverse economic markets and tailored financial services - Busey Bank operates **78 banking centers** across **six regions spanning 10 states**, including Illinois, Missouri, Florida, Indiana, Kansas, Oklahoma, Texas, Arizona, Colorado, and New Mexico[290](index=290&type=chunk)[306](index=306&type=chunk) - The East Region includes suburban Chicago (**17 centers**), St. Louis MSA (**20 centers**), and southwest Florida (**3 centers**)[292](index=292&type=chunk)[293](index=293&type=chunk)[294](index=294&type=chunk) - Busey also operates in several industry verticals, including **Life Equity Lending, Sponsor Finance, Energy Lending, and SBA Lending**[303](index=303&type=chunk) [Busey's Conservative Banking Strategy](index=76&type=section&id=Busey%27s%20Conservative%20Banking%20Strategy) Busey's financial strength is built on a conservative operating approach, emphasizing a strong core deposit franchise, robust liquidity, and capital ratios well above regulatory thresholds - Busey maintains a **conservative operating approach**, focusing on core deposit funding and robust liquidity[304](index=304&type=chunk) Key Financial Ratios (June 30, 2025) | Ratio | Value | | :--------------------------------------- | :------ | | Loan to deposit ratio | 87.4% | | Core deposits as % of total deposits | 92.5% | | Leverage ratio of Tier 1 capital to average assets | 11.3% | | Common equity Tier 1 capital to risk weighted assets ratio | 12.2% | | Total capital to risk weighted assets ratio | 15.8% | - Busey's underwriting standards emphasize relationship banking and limit concentration exposures in loan segments[304](index=304&type=chunk) [Mergers and Acquisitions](index=76&type=section&id=Mergers%20and%20Acquisitions) Reaffirms the completion of the **CrossFirst acquisition** on **March 1, 2025**, significantly expanding Busey's commercial banking presence across 10 states - The acquisition of **CrossFirst** was completed on **March 1, 2025**, creating a premier commercial bank with **78 full-service locations across 10 states**[306](index=306&type=chunk) - CrossFirst Bank's results were included in Busey's consolidated operations from **March 1, 2025**, and the bank was merged into Busey Bank on **June 20, 2025**[307](index=307&type=chunk) [RESULTS OF OPERATIONS — THREE AND SIX MONTHS ENDED JUNE 30, 2025](index=77&type=section&id=RESULTS%20OF%20OPERATIONS%20%E2%80%94%20THREE%20AND%20SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202025) [Net Income](index=77&type=section&id=Net%20Income) Presents Busey's net income by operating segment; Banking and Wealth Management were profitable, while FirsTech and 'Other' reported losses, reflecting acquisition impacts Net Income by Operating Segment (dollars in thousands) | Segment | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Banking | $45,838 | $26,697 | $26,145 | $53,189 | | Wealth Management | $5,823 | $5,561 | $12,042 | $10,559 | | FirsTech | $(544) | $28 | $(783) | $114 | | Other | $(3,713) | $(4,929) | $(19,990) | $(10,280) | | **Total Net Income** | **$47,404** | **$27,357** | **$17,414** | **$53,582** | [Non-Operating Expenses and Non-GAAP Measures](index=77&type=section&id=Non-Operating%20Expenses%20and%20Non-GAAP%20Measures) Identifies and quantifies non-operating expenses, adjusted from GAAP net income to provide a clearer view of core earnings, significantly increased by the CrossFirst acquisition in 2025 - Busey adjusts for certain non-operating expenses (acquisition, restructuring, non-recurring strategic events) to provide a clearer view of core earnings[310](index=310&type=chunk) Total Non-Operating Expenses (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $20,630 | $2,212 | 832.6% | | Six Months Ended June 30 | $92,228 | $2,620 | 3420.9% | - For the six months ended June 30, 2025, non-operating expenses included **$49.6 million** for initial provision for credit losses (related to CrossFirst acquisition) and **$42.6 million** for other acquisition expenses[310](index=310&type=chunk) [Operating Performance Metrics](index=78&type=section&id=Operating%20Performance%20Metrics) Presents key GAAP and adjusted non-GAAP operating performance metrics, showing significant improvements in adjusted net income and returns on assets and tangible common equity Adjusted Net Income (Non-GAAP, dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $57,394 | $30,519 | 88.1% | | Six Months Ended June 30 | $97,292 | $56,232 | 73.0% | Adjusted Diluted Earnings Per Common Share (Non-GAAP) | Period | 2025 | 2024 | Change | | :-------------------------- | :----- | :----- | :------- | | Three Months Ended June 30 | $0.63 | $0.53 | +$0.10 | | Six Months Ended June 30 | $1.21 | $0.98 | +$0.23 | Adjusted Return on Average Assets (Non-GAAP, Annualized) | Period | 2025 | 2024 | Change (bps) | | :-------------------------- | :----- | :----- | :----------- | | Three Months Ended June 30 | 1.21% | 1.02% | +19 bps | | Six Months Ended June 30 | 1.16% | 0.94% | +22 bps | Adjusted Return on Average Tangible Common Equity (Non-GAAP, Annualized) | Period | 2025 | 2024 | Change (bps) | | :-------------------------- | :------ | :------ | :----------- | | Three Months Ended June 30 | 13.61% | 12.85% | +76 bps | | Six Months Ended June 30 | 12.21% | 12.04% | +17 bps | [Net Interest Income](index=79&type=section&id=Net%20Interest%20Income) Analyzes changes in net interest income and margin; net interest income significantly increased by **85.7%** (QoQ) and **62.2%** (YoY), with margin improving, largely due to the **CrossFirst acquisition** Net Interest Income (Tax-Equivalent Basis, dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $153,974 | $82,934 | 85.7% | | Six Months Ended June 30 | $258,242 | $159,237 | 62.2% | Net Interest Margin (Tax-Equivalent Basis, Annualized) | Period | 2025 | 2024 | Change (bps) | | :-------------------------- | :----- | :----- | :----------- | | Three Months Ended June 30 | 3.49% | 3.03% | +46 bps | | Six Months Ended June 30 | 3.35% | 2.91% | +44 bps | Average Interest-Earning Assets (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------------ | :------------ | :--------- | | Three Months Ended June 30 | $17,700,356 | $11,000,785 | 60.9% | | Six Months Ended June 30 | $15,543,955 | $11,003,344 | 41.3% | Net Interest Spread (Tax-Equivalent Basis) | Period | 2025 | 2024 | Change (bps) | | :-------------------------- | :----- | :----- | :----------- | | Three Months Ended June 30 | 2.72% | 2.27% | +45 bps | | Six Months Ended June 30 | 2.59% | 2.16% | +43 bps | [Noninterest Income](index=84&type=section&id=Noninterest%20Income) Analyzes changes in noninterest income; increased by **33.1%** (QoQ) due to equity gains and CrossFirst acquisition, but decreased by **3.7%** (YoY) due to securities losses and prior year's MSR sale gains Total Noninterest Income (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $44,863 | $33,703 | 33.1% | | Six Months Ended June 30 | $66,086 | $68,616 | -3.7% | Wealth Management Fees (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $16,777 | $15,917 | 5.4% | | Six Months Ended June 30 | $34,141 | $31,466 | 8.5% | Net Securities Gains (Losses) (dollars in thousands) | Period | 2025 | 2024 | Change | | :-------------------------- | :------- | :------- | :------- | | Three Months Ended June 30 | $5,997 | $(353) | +$6,350 | | Six Months Ended June 30 | $(9,771) | $(6,728) | -$3,043 | - Treasury management services income increased by **132.2%** (QoQ) and **97.7%** (YoY) due to the addition of CrossFirst commercial services[336](index=336&type=chunk) - Other service charges on deposit accounts declined by **34.8%** (QoQ and YoY) due to changes in Busey's fee structure in 2025[338](index=338&type=chunk) [Noninterest Expense](index=90&type=section&id=Noninterest%20Expense) Examines significant increase in noninterest expense by **68.4%** (QoQ) and **62.8%** (YoY), driven by CrossFirst acquisition and operating costs, while the adjusted efficiency ratio improved Total Noninterest Expense (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $127,833 | $75,906 | 68.4% | | Six Months Ended June 30 | $239,863 | $147,353 | 62.8% | - Acquisition and restructuring expenses contributed **$16.6 million** (QoQ) and **$42.6 million** (YoY) to total noninterest expense[348](index=348&type=chunk) Salaries, Wages, and Employee Benefits (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $78,360 | $43,478 | 80.2% | | Six Months Ended June 30 | $145,923 | $85,568 | 70.5% | Adjusted Efficiency Ratio (Non-GAAP) | Period | 2025 | 2024 | Change (bps) | | :-------------------------- | :----- | :----- | :----------- | | Three Months Ended June 30 | 55.3% | 60.9% | -560 bps | | Six Months Ended June 30 | 56.7% | 61.6% | -490 bps | - The effective income tax rate for the six months ended June 30, 2025, was **45.3%**, impacted by a first-quarter loss and non-recurring adjustments, including a **$4.6 million** deferred tax valuation expense related to the CrossFirst acquisition[347](index=347&type=chunk)[360](index=360&type=chunk) [FINANCIAL CONDITION](index=91&type=section&id=FINANCIAL%20CONDITION) [Balance Sheet](index=91&type=section&id=Balance%20Sheet) Provides a high-level overview of Busey's balance sheet, highlighting significant growth in total assets, portfolio loans, and deposits, primarily driven by the **CrossFirst acquisition** Consolidated Balance Sheet Highlights (dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :-------------------------- | :------------ | :---------------- | :--------- | | Total assets | $18,918,740 | $12,046,722 | 57.0% | | Portfolio loans, net of ACL | $13,625,285 | $7,613,683 | 79.0% | | Total deposits | $15,801,772 | $9,982,490 | 58.3% | | Total stockholders' equity | $2,412,546 | $1,383,269 | 74.4% | [Portfolio Loans](index=91&type=section&id=Portfolio%20Loans) Details Busey's loan portfolio composition, growth, and credit quality; portfolio grew by **79.4% to $13.81 billion** due to CrossFirst acquisition, with ACL increasing to **$183.3 million** Total Portfolio Loans (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $13,808,619 | | December 31, 2024 | $7,697,087 | | **Change** | **+$6,111,532 (+79.4%)** | Portfolio Composition (June 30, 2025) | Category | % of Total Portfolio Loans | | :-------------------------- | :------------------------- | | Commercial loans | 80.3% | | Retail loans | 19.7% | Non-Performing Assets and Asset Quality Ratios (dollars in thousands) | Item | June 30, 2025 | December 31, 2024 | Change (%) | | :--------------------------------------- | :------------ | :---------------- | :--------- | | Non-performing loans | $54,555 | $23,237 | 134.8% | | Non-performing assets | $58,151 | $23,300 | 149.6% | | Classified assets | $175,731 | $85,323 | 106.0% | | ACL to portfolio loans | 1.33% | 1.08% | +25 bps | | Non-performing loans to portfolio loans | 0.40% | 0.30% | +10 bps | | Non-performing assets to total assets | 0.31% | 0.19% | +12 bps | - Net charge-offs for the six months ended June 30, 2025, totaled **$44.3 million**, including **$31.1 million** related to PCD loans acquired from CrossFirst Bank[385](index=385&type=chunk) [Deposits](index=97&type=section&id=Deposits) Details significant increase in total deposits, growing by **58.3% to $15.80 billion** due to CrossFirst acquisition, with core deposits at **92.5%** and uninsured deposits at **$6.66 billion** Total Deposits (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $15,801,772 | | December 31, 2024 | $9,982,490 | | **Change** | **+$5,819,282 (+58.3%)** | - Core deposits represented **92.5%** of total deposits as of June 30, 2025[388](index=388&type=chunk) - Estimated uninsured deposits were **$6.66 billion** (**42%** of total deposits) as of June 30, 2025, with **$5.25 billion** (**33%**) uninsured and not otherwise collateralized[388](index=388&type=chunk) [Liquidity](index=98&type=section&id=Liquidity) Discusses Busey's liquidity management strategy; average liquid assets increased significantly, and additional borrowing capacity grew by **33.2% to $3.81 billion** due to the CrossFirst acquisition Total Average Liquid Assets (dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $789,505 | $312,171 | 152.9% | | Six Months Ended June 30 | $789,873 | $436,077 | 81.1% | Cash and Unencumbered Securities (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $2,297,491 | | December 31, 2024 | $1,788,596 | | **Change** | **+$508,895 (+28.5%)** | Additional Borrowing Capacity (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $3,810,520 | | December 31, 2024 | $2,861,046 | | **Change** | **+$949,474 (+33.2%)** | - Management believes that adequate liquidity existed as of June 30, 2025, to meet all projected cash flow obligations[392](index=392&type=chunk) [Off-Balance-Sheet Arrangements](index=99&type=section&id=Off-Balance-Sheet%20Arrangements) Details Busey's off-balance-sheet commitments, which increased by **72.9% to $4.41 billion** due to the CrossFirst acquisition, with the reserve for unfunded commitments rising to **$13.8 million** Outstanding Loan Commitments and Standby Letters of Credit (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $4,406,199 | | December 31, 2024 | $2,548,178 | | **Change** | **+$1,858,021 (+72.9%)** | Reserve for Unfunded Commitments (dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $13,803 | | December 31, 2024 | $5,967 | - The provision for unfunded commitments for the six months ended June 30, 2025, included **$3.1 million** to establish an initial allowance following the CrossFirst acquisition[393](index=393&type=chunk) [Capital Resources](index=99&type=section&id=Capital%20Resources) Highlights Busey's strong capital position, with capital ratios consistently exceeding 'well-capitalized' regulatory guidelines and the capital conservation buffer - Busey's capital ratios are in excess of those required to be considered **'well-capitalized'** by regulatory guidelines[395](index=395&type=chunk) Minimum Capital Requirements with Capital Buffer (As of June 30, 2025) | Ratio | Minimum Capital Requirements with Capital Buffer | First Busey (Actual) | Busey Bank (Actual) | | :--------------------------------------- | :--------------------------------------- | :------------------- | :------------------ | | Common Equity Tier 1 Capital to Risk Weighted Assets | 7.00% | 12.22% | 13.62% | | Tier 1 Capital to Risk Weighted Assets | 8.50% | 13.66% | 13.62% | | Total Capital to Risk Weighted Assets | 10.50% | 15.75% | 14.53% | | Leverage Ratio of Tier 1 Capital to Average Assets | 6.50% | 11.26% | 11.22% | [NON-GAAP FINANCIAL INFORMATION](index=100&type=section&id=NON-GAAP%20FINANCIAL%20INFORMATION) Provides reconciliations of non-GAAP financial measures to GAAP, used by management for performance analysis and peer comparison, offering additional perspective on core earnings trends - Non-GAAP financial measures are used by management to analyze performance and for peer comparison, providing additional perspective on core earnings trends[396](index=396&type=chunk) Adjusted Net Income (Non-GAAP, dollars in thousands) | Period | 2025 | 2024 | Change (%) | | :-------------------------- | :------- | :------- | :--------- | | Three Months Ended June 30 | $57,394 | $30,519 | 88.1% | | Six Months Ended June 30 | $97,292 | $56,232 | 73.0% | Tangible Common Equity (Non-GAAP, dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $1,709,168 | | December 31, 2024 | $1,017,294 | | **Change** | **+$691,874 (+68.0%)** | Core Deposits (Non-GAAP, dollars in thousands) | Date | Amount | | :---------------- | :----------- | | June 30, 2025 | $14,620,396 | | December 31, 2024 | $9,634,897 | | **Change** | **+$4,985,499 (+51.7%)** | [FORWARD-LOOKING STATEMENTS](index=106&type=section&id=FORWARD-LOOKING%20STATEMENTS) Contains cautionary statements regarding forward-looking statements, subject to various factors like economic conditions, regulatory changes, and acquisition risks, which could cause actual results to differ materially - Forward-looking statements are based on management's beliefs and assumptions but are subject to factors that could cause actual results to differ materially[419](index=419&type=chunk) - Key risk factors include economic strength, regulatory changes, unexpected acquisition results, interest rate changes, increased competition, technological changes, and legal proceedings (e.g., Illinois franchise taxes)[420](index=420&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=106&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) [Fair Value of Assets Acquired and Liabilities Assumed in Business Combinations](index=107&type=section&id=Fair%20Value%20of%20Assets%20Acquired%20and%20Liabilities%20Assumed%20in%20Business%20Combinations) Explains that assets and liabilities in business combinations are recorded at estimated fair value, involving significant management judgment, especially for loan portfolios and ACL accounting - Assets acquired and liabilities assumed in business combinations are recorded at estimated fair value, requiring significant management estimates and judgment[424](index=424&type=chunk) - The determination of whether acquired loans are classified as **PCD** or non-PCD significantly affects the accounting for the **Allowance for Credit Losses (ACL)**[425](index=425&type=chunk) [Goodwill](index=107&type=section&id=Goodwill) Defines goodwill as the excess of purchase price over net assets, which is not amortized but assessed annually for impairment, requiring significant management judgment - Goodwill is not amortized but is assessed annually (or more frequently) for impairment[426](index=426&type=chunk) - Testing goodwill for impairment involves significant management judgment regarding valuation approach, market multiples, and business outlook forecasts[426](index=426&type=chunk) [Income Taxes](index=107&type=section&id=Income%20Taxes) Describes income tax estimation, involving complex interpretations of tax laws and significant judgments; disputes or changes could materially impact Busey's effective income tax rate - Income taxes are estimated based on complex tax laws and require significant judgment and interpretations[427](index=427&type=chunk)[430](index=430&type=chunk) - Deferred taxes represent future tax consequences of differences between the tax basis and accounting basis of assets and liabilities[428](index=428&type=chunk) - An unfavorable tax settlement could result in a **material increase** in Busey's effective income tax rate[430](index=430&type=chunk) [Allowance for Credit Losses](index=108&type=section&id=Allowance%20for%20Credit%20Losses) Explains the ACL methodology, a critical estimate for expected lifetime credit losses, involving significant judgment on macroeconomic forecasts and qualitative factors that could materially affect the ACL - The **ACL** is a valuation account for the lifetime expected credit losses, based on past events, current conditions, and reasonable forecasts[431](index=431&type=chunk) - Determining the ACL involves significant judgments and assumptions, particularly regarding macroeconomic forecasts, economic indices, and prepayment assumptions[434](index=434&type=chunk) - A quarterly evaluation of qualitative factors (economic conditions, collateral, concentrations, etc.) is used to adjust the ACL[434](index=434&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=108&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) Discusses Busey's market risk, primarily interest rate risk, managed through an asset-liability committee using simulation analysis to assess the impact of hypothetical interest rate changes on net interest income - Interest rate risk is the **most significant market risk** affecting Busey[435](index=435&type=chunk) - Busey's asset-liability committee uses balance sheet and income simulation analysis to determine the potential impact of changes in market interest rates on net interest income[436](index=436&type=chunk)[438](index=438&type=chunk) Interest Rate Risk (Change in Net Interest Income as % of Constant Base Model) | Basis Point Changes | Year-One (June 30, 2025) | Year-Two (June 30, 2025) | | :------------------ | :----------------------- | :----------------------- | | +400 | 11.28% | 12.30% | | +300 | 8.41% | 9.14% | | +200 | 5.57% | 6.06% | | +100 | 2.79% | 3.05% | | -100 | (2.07)% | (3.27)% | | -200 | (3.51)% | (6.37)% | | -300 | (4.30)% | (9.20)% | | -400 | (5.00)% | (11.26)% | [ITEM 4. CONTROLS AND PROCEDURES](index=109&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Confirms the effectiveness of Busey's disclosure controls and procedures as of June 30, 2025, with no material changes in internal control over financial reporting - Busey's disclosure controls and procedures were **effective** as of **June 30, 2025**[441](index=441&type=chunk) - No material changes occurred in Busey's internal control over financial reporting during the three months ended June 30, 2025[442](index=442&type=chunk) [PART II—OTHER INFORMATION—OTHER INFORMATION](index=109&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION%E2%80%94OTHER%20INFORMATION) [ITEM 1. LEGAL PROCEEDINGS](index=110&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) States Busey is involved in routine litigation incidental to its business, with no material pending litigation beyond ordinary course or involving directors/officers with material interest - Busey is a party to legal actions arising in the normal course of its business activities[445](index=445&type=chunk) - There is no material pending litigation, other than ordinary routine litigation incidental to its business[446](index=446&type=chunk) [ITEM 1A. RISK FACTORS](index=110&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section states that there have been no material changes to the risk factors previously discussed in Busey's 2024 Annual Report - No material changes to the risk factors discussed in Part II—Item 1A of Busey's 2024 Annual Report[448](index=448&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES](index=110&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%2C%20USE%20OF%20PROCEEDS%2C%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES) Reports no unregistered sales of equity securities; details issuer common stock repurchase activity in Q2 2025, with **1,012,000 shares** repurchased at **$21.40** weighted average price - No unregistered sales of equity securities occurred[449](index=449&type=chunk) Common Share Repurchase Activity (Three Months Ended June 30, 2025) | Period | Total Number of Common Shares Purchased | Weighted Average Price Paid per Common Share | | :---------------- | :-------------------------------------- | :------------------------------------------- | | April 1-30, 2025 | 420,000 | $20.22 | | May 1-31, 2025 | 302,000 | $21.86 | | June 1-30, 2025 | 290,000 | $22.62 | | **Three months ended June 30, 2025** | **1,012,000** | **$21.40** | - On **May 29, 2025**, the board authorized an additional **2,000,000 shares** to be repurchased under the plan[451](index=451&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=110&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section states that there were no defaults upon senior securities during the reported period - No defaults upon senior securities occurred[453](index=453&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=110&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES) This section states that the disclosure requirement for mine safety is not applicable to Busey - Mine safety disclosures are not applicable to Busey[455](index=455&type=chunk) [ITEM 5. OTHER INFORMATION](index=111&type=section&id=ITEM%205.%20OTHER%20INFORMATION) This section reports that none of Busey's directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2025 - No Rule 10b5-1 trading arrangements were adopted or terminated by Busey's directors or executive officers during the fiscal quarter ended June 30, 2025[457](index=457&type=chunk) [ITEM 6. EXHIBITS](index=112&type=section&id=ITEM%206.%20EXHIBITS) This section lists the exhibits filed as part of the Quarterly Report, including certifications from the Principal Executive Officer and Principal Financial Officer, and iXBRL taxonomy documents - Exhibits include certifications from the Principal Executive Officer (31.1, 32.1) and Principal Financial Officer (31.2, 32.2), as well as iXBRL instance and taxonomy documents (101.INS, 101.SCH, etc.)[460](index=460&type=chunk) [SIGNATURES](index=113&type=section&id=SIGNATURES) - The report was duly signed on behalf of First Busey Corporation by Van A. Dukeman, Chairman and Chief Executive Officer, and Scott A. Phillips, Interim Chief Financial Officer, as of August 5, 2025[462](index=462&type=chunk)[463](index=463&type=chunk)

Group 1 - First Busey reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and up from $0.50 per share a year ago, representing an earnings surprise of +3.28% [1] - The company posted revenues of $198.05 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.10%, compared to year-ago revenues of $116.24 million [2] - First Busey has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - First Busey shares have increased by approximately 2.4% since the beginning of the year, while the S&P 500 has gained 7.2% [3] - The current consensus EPS estimate for the upcoming quarter is $0.62 on revenues of $195.9 million, and for the current fiscal year, it is $2.49 on revenues of $728.85 million [7] Group 3 - The Zacks Industry Rank for Banks - Midwest is currently in the top 31% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for First Busey was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

[Financial Results](index=2&type=section&id=Financial%20Results) [Overall Performance Summary](index=2&type=section&id=Overall%20Performance%20Summary) First Busey Corporation reported a net income of **$47.4 million** ($0.52 per diluted share) for Q2 2025, a significant turnaround from a net loss of **$30.0 million** in Q1 2025 and an increase from **$27.4 million** in Q2 2024, reflecting the first full quarter contribution from the CrossFirst acquisition - The second quarter of 2025 was the first full quarter where financial results included the contribution from the acquisition of CrossFirst Bankshares, Inc[8](index=8&type=chunk) - Adjustments to GAAP earnings include **$16.6 million** in acquisition/restructuring expenses, a **$4.0 million** CECL model adjustment, and **$6.0 million** in net securities gains[8](index=8&type=chunk) Q2 2025 Key Performance Indicators | Metric | GAAP | Adjusted | | :--- | :--- | :--- | | Net Income | $47.4 million | $57.4 million | | Diluted EPS | $0.52 | $0.63 | | Net Interest Margin | 3.49% | 3.33% | | ROAA | 1.00% | 1.21% | | ROATCE | 11.24% | 13.61% | Net Income (Loss) Comparison (in thousands) | Period | Net Income (Loss) | Diluted EPS | | :--- | :--- | :--- | | Q2 2025 | $47,404 | $0.52 | | Q1 2025 | $(29,990) | $(0.44) | | Q2 2024 | $27,357 | $0.47 | [Pre-Provision Net Revenue](index=4&type=section&id=Pre-Provision%20Net%20Revenue) Pre-provision net revenue (PPNR) significantly increased to **$64.2 million** in Q2 2025 from **$28.7 million** in Q1 2025, with adjusted PPNR reaching **$80.8 million**, reflecting improved core operating profitability before credit loss provisions Pre-Provision Net Revenue (PPNR) Comparison (in millions) | Period | PPNR (GAAP) | PPNR to Avg Assets | Adjusted PPNR | Adjusted PPNR to Avg Assets | | :--- | :--- | :--- | :--- | :--- | | Q2 2025 | $64.2 | 1.35% | $80.8 | 1.70% | | Q1 2025 | $28.7 | 0.78% | $54.7 | 1.50% | | Q2 2024 | $40.7 | 1.35% | $42.6 | 1.42% | [Net Interest Income and Net Interest Margin](index=4&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income rose to **$153.2 million** in Q2 2025, up from **$103.7 million** in the prior quarter, with the net interest margin (NIM) expanding by **33 basis points** to **3.49%** (3.33% adjusted), primarily driven by higher loan yields and purchase accounting accretion from the CrossFirst acquisition - Key drivers for the **33 basis point increase** in NIM in Q2 2025 included: - **+54 bps** from increased loan portfolio and held for sale loan yields - **+8 bps** from increased purchase accounting accretion - **-25 bps** from increased non-maturity deposit funding costs[15](index=15&type=chunk) - The company is actively managing its funding mix by reducing brokered deposits (down **$368.6 million** in Q2) and anticipates the deposit beta will normalize between **45% and 50%**[12](index=12&type=chunk) Net Interest Margin Comparison | Period | Net Interest Margin (GAAP) | Adjusted Net Interest Margin | | :--- | :--- | :--- | | Q2 2025 | 3.49% | 3.33% | | Q1 2025 | 3.16% | 3.08% | | Q2 2024 | 3.03% | 3.00% | [Noninterest Income](index=5&type=section&id=Noninterest%20Income) Total noninterest income for Q2 2025 was **$44.9 million**, a **111.4% increase** from Q1 2025, largely due to **$6.0 million** in net securities gains and the full-quarter impact of the CrossFirst acquisition, with adjusted noninterest income at **$38.9 million** - Wealth Management assets under care grew to **$14.10 billion** at the end of Q2 2025, up from **$13.68 billion** in Q1 2025[17](index=17&type=chunk) - Treasury management services income grew **132.2% YoY**, and card services fees grew **42.3% YoY**, primarily due to the addition of CrossFirst commercial and corporate card services[17](index=17&type=chunk) Noninterest Income Breakdown (in thousands) | Category | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Wealth management fees | $16,777 | $17,364 | $15,917 | | Payment technology solutions | $4,956 | $5,073 | $5,915 | | Treasury management services | $4,981 | $3,017 | $2,145 | | Card services and ATM fees | $4,880 | $3,709 | $3,430 | | Net securities gains (losses) | $5,997 | $(15,768) | $(353) | | **Total noninterest income** | **$44,863** | **$21,223** | **$33,703** | [Operating Efficiency](index=6&type=section&id=Operating%20Efficiency) Total noninterest expense was **$127.8 million** in Q2 2025, an increase of **14.1%** from Q1 2025, driven by nonrecurring acquisition expenses and the full-quarter operating costs of the combined organization, with the adjusted efficiency ratio improving to **55.3%** from **58.7%** - Noninterest expense growth was primarily due to the CrossFirst acquisition, including nonrecurring expenses and added operational costs, with the company expecting to realize **50%** of the estimated **$25.0 million** in annual expense synergies in 2025 and **100%** in 2026[18](index=18&type=chunk) - Salaries, wages, and employee benefits increased by **$10.8 million** compared to Q1 2025, reflecting a full quarter of expenses for the expanded workforce from the CrossFirst acquisition[20](index=20&type=chunk) Efficiency Ratio Comparison | Period | Efficiency Ratio (GAAP) | Adjusted Efficiency Ratio | | :--- | :--- | :--- | | Q2 2025 | 63.9% | 55.3% | | Q1 2025 | 77.1% | 58.7% | | Q2 2024 | 62.6% | 60.9% | [Balance Sheet Strength](index=8&type=section&id=Balance%20Sheet%20Strength) [Balance Sheet Overview](index=8&type=section&id=Balance%20Sheet%20Overview) As of June 30, 2025, total assets stood at **$18.92 billion**, a slight decrease from **$19.46 billion** at the end of Q1 2025, primarily due to a reduction in deposits, while portfolio loans remained relatively stable at **$13.81 billion** Key Balance Sheet Items (in billions) | Item | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $18.92 | $19.46 | $11.97 | | Portfolio Loans | $13.81 | $13.87 | $8.00 | | Total Deposits | $15.80 | $16.46 | $9.98 | | Total Stockholders' Equity | $2.41 | $2.18 | $1.33 | [Asset Quality](index=9&type=section&id=Asset%20Quality) Asset quality remains strong and well-diversified, with non-performing loans stable at **0.40%** of portfolio loans as of Q2 2025, and the allowance for credit losses at **$183.3 million**, providing robust coverage of **3.36 times** non-performing loans - The increase in non-performing loans and assets compared to the prior year is mainly due to purchased credit deteriorated (PCD) loans assumed in the CrossFirst acquisition[33](index=33&type=chunk)[34](index=34&type=chunk) - Net charge-offs were **$12.9 million** in Q2 2025, a decrease from **$31.4 million** in Q1 2025, with the Q1 figure including **$29.6 million** related to PCD loans from CrossFirst that were fully reserved at acquisition[36](index=36&type=chunk)[39](index=39&type=chunk) Asset Quality Ratios | Ratio | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Non-performing loans to portfolio loans | 0.40% | 0.39% | 0.11% | | Non-performing assets to total assets | 0.31% | 0.31% | 0.08% | | Allowance for credit losses to portfolio loans | 1.33% | 1.41% | 1.07% | | ACL to non-performing loans coverage | 3.36x | 3.57x | 9.36x | [Deposits and Borrowings](index=11&type=section&id=Deposits%20and%20Borrowings) Total deposits decreased to **$15.80 billion** at quarter-end, down from **$16.46 billion** in Q1 2025, a deliberate decline driven by a **$386.8 million** reduction in higher-cost brokered deposits and listing service CDs, while core deposits remain strong at **92.5%** of total deposits - The decrease in total deposits was a deliberate strategy, with a **$386.8 million** reduction in higher-cost brokered deposits and listing service CDs[41](index=41&type=chunk) - Core deposits represented **92.5%** of total deposits as of June 30, 2025, with an estimated **33%** of total deposits uninsured and uncollateralized[42](index=42&type=chunk) - On June 1, 2025, Busey redeemed the entire **$125.0 million** outstanding principal amount of its 5.25% Subordinated Notes due 2030[43](index=43&type=chunk) [Liquidity and Capital Strength](index=12&type=section&id=Liquidity%20and%20Capital%20Strength) The company maintains a robust liquidity and capital position, with available liquidity sources totaling **$7.95 billion** as of June 30, 2025, and strong capital ratios including an estimated Common Equity Tier 1 (CET1) ratio of **12.22%** and a Total Capital ratio of **15.75%** - Total available sources of on- and off-balance sheet liquidity were **$7.95 billion** as of June 30, 2025[44](index=44&type=chunk) Regulatory Capital Ratios (Estimated) | Ratio | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 | 12.22% | 12.00% | 13.20% | | Total Capital to RWA | 15.75% | 14.88% | 17.50% | Tangible Common Equity Metrics | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Tangible Common Equity / Tangible Assets | 9.27% | 8.83% | 8.30% | | Tangible Book Value per Share | $19.18 | $18.62 | $16.97 | [Shareholder Returns](index=12&type=section&id=Shareholder%20Returns) Busey continued its commitment to shareholder returns by paying a common stock dividend of **$0.25 per share** in Q2 2025 and repurchasing **1,012,000 shares** of its common stock for **$21.7 million** during the quarter - Paid a quarterly dividend of **$0.25 per common share**, continuing a consistent dividend history since 1980[46](index=46&type=chunk) - Repurchased **1,012,000 shares** for **$21.7 million** in Q2 2025, with **2,687,275 shares** remaining available for repurchase under the current plan as of June 30, 2025[48](index=48&type=chunk) [Corporate Profile](index=12&type=section&id=Corporate%20Profile) First Busey Corporation is an **$18.92 billion** financial holding company headquartered in Leawood, Kansas, with its subsidiary Busey Bank operating **78 banking centers** across 10 states, offering comprehensive wealth management services with **$14.10 billion** in assets under care and innovative payment technology solutions through FirsTech - As of June 30, 2025, First Busey Corporation was an **$18.92 billion** financial holding company[50](index=50&type=chunk) - Busey Bank operates **78 banking centers** across 10 states, including Illinois, Missouri, Texas, Florida, and Kansas[51](index=51&type=chunk) - The Wealth Management division had **$14.10 billion** in assets under care as of June 30, 2025[52](index=52&type=chunk) - FirsTech, a wholly-owned subsidiary, specializes in financial technology and payment solutions for businesses[53](index=53&type=chunk) [Non-GAAP Financial Information](index=15&type=section&id=Non-GAAP%20Financial%20Information) This section provides detailed reconciliations of non-GAAP financial measures to their most directly comparable GAAP counterparts, which management uses to analyze core performance trends and for peer comparison, excluding items like acquisition expenses, restructuring charges, and net securities gains/losses [Reconciliation of Pre-Provision Net Revenue](index=16&type=section&id=Reconciliation%20of%20Pre-Provision%20Net%20Revenue) This table reconciles GAAP net interest income and noninterest income to the non-GAAP measures of Pre-Provision Net Revenue (PPNR) and Adjusted PPNR, showing GAAP PPNR of **$64.2 million** and Adjusted PPNR of **$80.8 million** for Q2 2025 Q2 2025 PPNR Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | Net interest income (GAAP) | $153,183 | | Total noninterest income (GAAP) | $44,863 | | Net security (gains) losses | $(5,997) | | Total noninterest expense (GAAP) | $(127,833) | | **Pre-provision net revenue (Non-GAAP)** | **$64,216** | | Acquisition and restructuring expenses | $16,600 | | **Adjusted pre-provision net revenue (Non-GAAP)** | **$80,816** | [Reconciliation of Adjusted Net Income and Related Ratios](index=18&type=section&id=Reconciliation%20of%20Adjusted%20Net%20Income%20and%20Related%20Ratios) This reconciliation adjusts GAAP net income for several items, including the Day 2 provision for credit losses from the CrossFirst acquisition, other acquisition expenses, and net securities gains/losses, resulting in a non-GAAP net income of **$57.4 million** for Q2 2025 from a GAAP net income of **$47.4 million** Q2 2025 Adjusted Net Income Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | Net income (GAAP) | $47,404 | | Adjustment of initial provision for unfunded commitments | $4,030 | | Other acquisition expenses | $16,600 | | Net securities (gains) losses | $(5,997) | | Related tax (benefit) expense | $(4,971) | | **Adjusted net income (Non-GAAP)** | **$57,394** | [Reconciliation of Net Interest Margin](index=20&type=section&id=Reconciliation%20of%20Net%20Interest%20Margin) The table adjusts GAAP net interest income for the tax-equivalent impact of non-taxable income and for purchase accounting accretion to derive adjusted net interest income and the corresponding adjusted net interest margin, with the **3.49%** tax-equivalent NIM adjusted down to **3.33%** for Q2 2025 Q2 2025 Net Interest Margin Reconciliation (dollars in thousands) | Description | Amount / Ratio | | :--- | :--- | | Net interest income (GAAP) | $153,183 | | Tax-equivalent adjustment | $791 | | **Tax-equivalent net interest income (Non-GAAP)** | **$153,974** | | Purchase accounting accretion | $(7,119) | | **Adjusted net interest income (Non-GAAP)** | **$146,855** | | Average interest-earning assets | $17,700,356 | | **Net interest margin (Non-GAAP)** | **3.49%** | | **Adjusted net interest margin (Non-GAAP)** | **3.33%** | [Reconciliation of Tangible Common Equity](index=24&type=section&id=Reconciliation%20of%20Tangible%20Common%20Equity) This section details the calculation of tangible common equity by subtracting goodwill, other intangible assets, and preferred stock from total stockholders' equity, resulting in tangible common equity of **$1.71 billion** and a tangible book value per common share of **$19.18** as of June 30, 2025 Tangible Common Equity Calculation as of June 30, 2025 (in thousands) | Description | Amount | | :--- | :--- | | Total stockholders' equity (GAAP) | $2,412,546 | | Less: Preferred stock | $(215,197) | | Less: Goodwill and other intangible assets, net | $(488,181) | | **Tangible common equity (Non-GAAP)** | **$1,709,168** | | Ending common shares outstanding | 89,104,678 | | **Tangible book value per common share (Non-GAAP)** | **$19.18** | [Forward-Looking Statements](index=25&type=section&id=Forward-Looking%20Statements) This section contains standard cautionary language regarding forward-looking statements, warning that actual results could differ materially from expectations due to various factors, including economic conditions, regulatory changes, interest rate fluctuations, competition, and risks associated with acquisitions like the recent CrossFirst transaction - The document contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially[76](index=76&type=chunk) - Key risk factors include economic strength, regulatory changes, interest rate movements, competition, and the successful integration of acquisitions such as CrossFirst[77](index=77&type=chunk)

Core Insights - First Busey Corporation reported a net income of $47.4 million for the second quarter of 2025, a significant recovery from a net loss of $30.0 million in the first quarter of 2025, and an increase from $27.4 million in the second quarter of 2024 [6][8][48] - The acquisition of CrossFirst Bank has been a transformative event, contributing positively to the financial results and expanding the bank's service offerings [3][6] Financial Performance - Net interest income for the second quarter of 2025 was $153.2 million, up from $103.7 million in the first quarter of 2025 and $82.5 million in the second quarter of 2024 [11][12] - The net interest margin increased to 3.49% in the second quarter of 2025, compared to 3.16% in the first quarter of 2025 and 3.03% in the second quarter of 2024 [12][13] - Adjusted net income, excluding non-GAAP adjustments, was $57.4 million, or $0.63 per diluted common share, for the second quarter of 2025, compared to $39.9 million in the first quarter of 2025 [8][21] Noninterest Income - Total noninterest income increased by 111.4% compared to the first quarter of 2025 and by 33.1% compared to the second quarter of 2024, primarily due to net securities gains and the contribution from the CrossFirst acquisition [15][16] - Adjusted noninterest income, excluding net securities gains and losses, increased by 5.1% to $38.9 million in the second quarter of 2025 [16][17] Noninterest Expense - Total noninterest expense rose by 14.1% compared to the first quarter of 2025 and by 68.4% compared to the second quarter of 2024, largely due to acquisition-related costs and increased operational expenses [21][22] - Adjusted noninterest expense, excluding acquisition and restructuring expenses, was $106.6 million in the second quarter of 2025, a 28.6% increase from the first quarter of 2025 [22] Asset Quality - The allowance for credit losses was $183.3 million as of June 30, 2025, representing 1.33% of total portfolio loans, with a coverage ratio of 3.36 times non-performing loans [43][41] - Non-performing loans were 0.40% of portfolio loans as of June 30, 2025, reflecting a slight increase from the previous quarter [41][42] Balance Sheet Strength - Total assets were $18.92 billion as of June 30, 2025, down from $19.46 billion as of March 31, 2025, but up from $11.97 billion a year earlier [32][26] - Total deposits were $15.80 billion at June 30, 2025, compared to $16.46 billion at March 31, 2025, with a deliberate run-off of higher-cost brokered deposits contributing to the decrease [48][49]

Financial Performance - Adjusted diluted EPS increased from $0.57 in 1Q25 to $0.63 in 2Q25[10] - Adjusted net income increased from $40 million in 1Q25 to $57 million in 2Q25[10] - Adjusted pre-provision net revenue (PPNR) increased from $55 million in 1Q25 to $81 million in 2Q25[10] - Net interest margin increased from 3.16% in 1Q25 to 3.49% in 2Q25[10] - Adjusted efficiency ratio improved from 58.7% in 1Q25 to 55.3% in 2Q25[10] Balance Sheet and Capital - Total assets reached $18.9 billion in 2Q25[8, 21] - Total capital ratio was 15.8% in 2Q25[8, 36] - Tier 1 capital ratio increased to 13.7% at 6/30/25 from 12.0% at 3/31/25[5] - Tangible common equity to tangible assets ratio was 9.27% at 6/30/25, up from 8.30% at 6/30/24[36] Loan Portfolio - Total loan portfolio was $13.8 billion[43] - Non-performing loans (NPLs) to total loans ratio was 0.40%[43] - Classified loans to capital ratio was 7.7%[43] Deposits - Total deposits reached $15.8 billion[18, 70] - Core deposits represented 92.5% of total deposits[36, 70] - Average deposits per branch were $203 million[20, 70] - Non-interest bearing deposits accounted for 22.7% of total deposits[36] Wealth Management and FirsTech - Wealth assets under care reached $14.1 billion[8, 21, 96] - FirsTech processed $11 billion in payments[21, 151]

Core Viewpoint - The market anticipates First Busey (BUSE) to report a year-over-year earnings increase driven by higher revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - First Busey is expected to post quarterly earnings of $0.61 per share, reflecting a +22% year-over-year change, with revenues projected at $192.1 million, up 65.3% from the previous year [3]. - The consensus EPS estimate has been revised 2.12% lower in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative Earnings ESP reading indicates the likely deviation of actual earnings from the consensus estimate, with a positive reading being a strong predictor of an earnings beat [9][10]. - For First Busey, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.49%, combined with a Zacks Rank of 4, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, First Busey was expected to post earnings of $0.53 per share but delivered $0.57, resulting in a surprise of +7.55% [13]. - Over the last four quarters, the company has beaten consensus EPS estimates four times [14]. Industry Comparison - Wintrust Financial (WTFC), another player in the Zacks Banks - Midwest industry, is expected to report earnings per share of $2.59 for the same quarter, indicating a +11.6% year-over-year change, with revenues expected at $655.9 million, up 10.8% [18][19].