CHAMPAIGN, Ill., April 23, 2024 (GLOBE NEWSWIRE) -- First Busey Corporation (NASDAQ:BUSE)   Net Income of $26.2 millionDiluted EPS of $0.46   FIRST QUARTER 2024 HIGHLIGHTS Adjusted net income1 of $26.5 million, or $0.47 per diluted common shareNet interest margin1 increased by 5 basis points during the first quarter of 2024 to 2.79%Executed a two-part balance sheet repositioning expected to be both capital and earnings accretiveAdjusted noninterest income1 of $33.9 million, or 30.9% of operating revenue2Rec ...

First Busey Corporation (BUSE) announced that it completed the acquisition of Merchants and Manufacturers Bank Corporation (“M&M’’). BUSE entered the agreement in November 2023 in an effort to fortify its growing presence in the Chicago suburban market by expanding its deposit market share in DuPage and Will counties. Additionally, the merger will help the company strengthen its commercial banking and wealth management businesses in the coming years.  Merchants and Manufacturers Bank is a locally-owned comm ...

Table of Content UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-15950 FIRST BUSEY CORPORATION (Exact name of registrant as specified in its charter) Nevada 37-1078406 (State or other jurisdiction of incorporation of organization) ...

For the quarter ended December 2023, First Busey (BUSE) reported revenue of $108.65 million, down 9.6% over the same period last year. EPS came in at $0.52, compared to $0.65 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $107.74 million, representing a surprise of +0.85%. The company delivered an EPS surprise of +6.12%, with the consensus EPS estimate being $0.49.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

First Busey (BUSE) came out with quarterly earnings of $0.52 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.12%. A quarter ago, it was expected that this bank holding company would post earnings of $0.51 per share when it actually produced earnings of $0.55, delivering a surprise of 7.84%.Over the last four quarters, the c ...

CHAMPAIGN, Ill., Jan. 23, 2024 (GLOBE NEWSWIRE) -- First Busey Corporation (NASDAQ:BUSE) Net Income of $25.7 millionDiluted EPS of $0.46 Fourth Quarter 2023 Highlights Adjusted net income1 at $29.1 million, or $0.52 per diluted common shareEntered into a definitive agreement to acquire Merchants & Manufacturers Bank Corporation ("M&M"), the holding company for Merchants & Manufacturers Bank ("M&M Bank")Executed a two-part balance sheet repositioning related to the securities portfolio, expected to be both c ...

First Busey (BUSE) is expected to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stock may ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q þ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2023 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File No. 0-15950 FIRST BUSEY CORPORATION (Exact name of registrant as specified in its charter) Nevada 37-1078406 (State or other jurisdiction of incorporation or organizat ...

PART I FINANCIAL INFORMATION [Item 1. FINANCIAL STATEMENTS (UNAUDITED)](index=5&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) This section presents First Busey Corporation's unaudited consolidated financial statements, including balance sheets, income statements, comprehensive income, equity, and cash flows, with detailed accounting policy notes [CONSOLIDATED BALANCE SHEETS](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets decreased slightly to **$12.21 billion** at June 30, 2023, while total liabilities decreased to **$11.01 billion**, and stockholders' equity rose to **$1.20 billion** Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$12,209,029** | **$12,336,677** | | Total cash and cash equivalents | $232,703 | $227,164 | | Debt securities available for sale | $2,283,848 | $2,461,393 | | Portfolio loans, net | $7,713,645 | $7,634,094 | | Goodwill | $317,873 | $317,873 | | **Total Liabilities** | **$11,007,081** | **$11,190,700** | | Total deposits | $10,062,755 | $10,071,280 | | Short-term borrowings | $212,000 | $351,054 | | **Total Stockholders' Equity** | **$1,201,948** | **$1,145,977** | [CONSOLIDATED STATEMENTS OF INCOME](index=9&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Net income for the six months ended June 30, 2023, increased to **$66.15 million** from **$58.26 million** year-over-year, driven by higher net interest income, with diluted EPS at **$1.18** Income Statement Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $78,670 | $75,928 | $164,527 | $145,984 | | Provision for credit losses | $627 | $1,653 | $1,580 | $1,400 | | Total Noninterest Income | $28,012 | $31,019 | $59,860 | $66,791 | | Total Noninterest Expense | $69,205 | $69,092 | $139,608 | $139,468 | | **Net Income** | **$29,364** | **$29,824** | **$66,150** | **$58,263** | | **Diluted EPS** | **$0.52** | **$0.53** | **$1.18** | **$1.04** | [CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)](index=11&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME%20(LOSS)) Total comprehensive income for the six months ended June 30, 2023, was **$78.5 million**, a significant improvement from a **$129.1 million** loss in 2022, driven by a positive change in AOCI Comprehensive Income (Loss) Summary (in thousands) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Income | $66,150 | $58,263 | | Net change in AOCI | $12,357 | $(187,349) | | **Total Comprehensive Income (Loss)** | **$78,507** | **$(129,086)** | [CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY](index=12&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20STOCKHOLDERS'%20EQUITY) Total stockholders' equity increased to **$1.202 billion** at June 30, 2023, driven by **$66.2 million** net income and **$12.4 million** OCI, partially offset by dividends Changes in Stockholders' Equity (Six Months Ended June 30, 2023, in thousands) | Description | Amount | | :--- | :--- | | Balance, December 31, 2022 | $1,145,977 | | Net Income | $66,150 | | OCI, net of tax | $12,357 | | Cash dividends on common stock | $(26,539) | | Repurchase of stock | $(931) | | Stock-based compensation & other | $4,934 | | **Balance, June 30, 2023** | **$1,201,948** | [CONSOLIDATED STATEMENTS OF CASH FLOWS](index=14&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash provided by operating activities was **$85.1 million** and by investing activities was **$128.2 million**, resulting in a **$5.5 million** net increase in cash and equivalents Summary of Cash Flows (Six Months Ended June 30, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $85,149 | $73,682 | | Net cash provided by (used in) investing activities | $128,227 | $(279,409) | | Net cash used in financing activities | $(207,837) | $(399,516) | | **Net increase (decrease) in cash** | **$5,539** | **$(605,243)** | [Note 1: Significant Accounting Policies](index=16&type=section&id=Note%201:%20Significant%20Accounting%20Policies) The company operates in Banking, FirsTech, and Wealth Management segments, adhering to GAAP with material estimates for securities and ACL, and adopted ASU 2022-02 without material impact - First Busey operates and reports its business in three segments: **Banking**, **FirsTech**, and **Wealth Management**[145](index=145&type=chunk) - Material estimates susceptible to significant change relate to the fair value of debt securities, assets/liabilities in business combinations, goodwill, income taxes, and the determination of the **ACL**[165](index=165&type=chunk) - The company adopted ASU 2022-02, eliminating the Troubled Debt Restructuring (TDR) accounting model, which did not have a material impact on its financial position or results of operations[167](index=167&type=chunk) [Note 2: Debt Securities](index=18&type=section&id=Note%202:%20Debt%20Securities) Debt securities totaled **$2.28 billion** (AFS) and **$0.89 billion** (HTM) at June 30, 2023, with significant unrealized losses of **$297.0 million** primarily due to market interest rates Debt Securities Summary (June 30, 2023, in thousands) | Category | Amortized Cost | Gross Unrealized Gains | Gross Unrealized/Unrecognized Losses | Fair Value | | :--- | :--- | :--- | :--- | :--- | | Available for Sale | $2,580,638 | $179 | $(296,969) | $2,283,848 | | Held to Maturity | $894,102 | $0 | $(147,600) | $746,502 | - Unrealized and unrecognized losses were primarily attributed to changes in market interest rates and conditions, not credit-related impairments. The company does not intend to sell securities in a loss position and expects full collection[186](index=186&type=chunk) - Debt securities with carrying amounts of **$823.6 million** were pledged as collateral for public deposits and other purposes as of June 30, 2023[180](index=180&type=chunk) [Note 3: Portfolio Loans](index=23&type=section&id=Note%203:%20Portfolio%20Loans) Total portfolio loans increased to **$7.81 billion** at June 30, 2023, with a stable ACL of **$91.6 million** and low non-accrual loans of **$15.2 million** Portfolio Loans by Category (in thousands) | Loan Category | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total commercial loans | $5,793,426 | $5,766,496 | | Total retail loans | $2,011,858 | $1,959,206 | | **Total portfolio loans** | **$7,805,284** | **$7,725,702** | | ACL | $(91,639) | $(91,608) | | **Portfolio loans, net** | **$7,713,645** | **$7,634,094** | Past Due and Non-Accrual Loans (June 30, 2023, in thousands) | Status | Amount | | :--- | :--- | | 30-59 Days Past Due | $3,675 | | 60-89 Days Past Due | $1,494 | | 90+ Days Past Due (accruing) | $569 | | Non-accrual Loans | $15,209 | ACL Activity (Six Months Ended June 30, 2023, in thousands) | Description | Amount | | :--- | :--- | | Balance, December 31, 2022 | $91,608 | | Provision for credit losses | $1,580 | | Charged-off | $(2,528) | | Recoveries | $979 | | **Balance, June 30, 2023** | **$91,639** | [Note 4: Leases](index=35&type=section&id=Note%204:%20Leases) Operating lease right-of-use assets totaled **$11.8 million** and lease liabilities were **$12.1 million** at June 30, 2023, with an 8.71-year weighted average remaining term Lease Balances (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Right of use assets | $11,806 | $12,829 | | Lease liabilities | $12,059 | $12,995 | - Total undiscounted future cash flows for lease commitments amount to **$14.2 million** as of June 30, 2023[252](index=252&type=chunk) [Note 5: Deposits](index=36&type=section&id=Note%205:%20Deposits) Total deposits remained stable at **$10.06 billion** at June 30, 2023, with a shift from noninterest-bearing to interest-bearing accounts, notably a doubling of large time deposits Composition of Deposits (in thousands) | Deposit Type | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Noninterest-bearing demand | $3,086,885 | $3,393,666 | | Interest-bearing transaction | $2,725,297 | $2,857,818 | | Savings and money market | $2,778,958 | $2,964,421 | | Time deposits | $1,471,615 | $855,375 | | **Total deposits** | **$10,062,755** | **$10,071,280** | [Note 6: Borrowings](index=37&type=section&id=Note%206:%20Borrowings) Total short-term borrowings decreased to **$212.0 million** at June 30, 2023, primarily due to reduced FHLB advances, with **$225 million** in subordinated notes outstanding Borrowings Summary (in thousands) | Category | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Securities sold under agreements to repurchase | $202,953 | $229,806 | | Short-term borrowings | $212,000 | $351,054 | | Long-term debt (Term Loan) | $24,000 | $30,000 | | Subordinated notes, net | $222,454 | $222,038 | [Note 7: Regulatory Capital](index=39&type=section&id=Note%207:%20Regulatory%20Capital) Both First Busey Corporation and Busey Bank exceeded all 'well capitalized' regulatory capital requirements at June 30, 2023, utilizing the five-year CECL transition option Regulatory Capital Ratios (First Busey Corp. - June 30, 2023) | Ratio | Actual | Minimum to be Well Capitalized | | :--- | :--- | :--- | | Common equity Tier 1 capital | 12.35% | 6.50% | | Tier 1 capital | 13.17% | 8.00% | | Total capital | 16.56% | 10.00% | | Leverage ratio | 9.93% | N/A | - The company has elected to use the CECL transition option, deferring the full regulatory capital impact of its adoption over a five-year period (two-year delay followed by a three-year phase-in)[262](index=262&type=chunk) [Note 8: Stock-Based Compensation](index=41&type=section&id=Note%208:%20Stock-Based%20Compensation) Total stock-based compensation expense was **$4.3 million** for the six months ended June 30, 2023, with **$18.5 million** in unamortized expense remaining over 2.6 years Stock-Based Compensation Expense (in thousands) | Period | RSU awards | PSU awards | DSU awards | 2021 ESPP | Total | | :--- | :--- | :--- | :--- | :--- | :--- | | Three Months Ended June 30, 2023 | $1,231 | $1,184 | $211 | $30 | $2,656 | | Six Months Ended June 30, 2023 | $2,251 | $1,544 | $407 | $123 | $4,325 | RSU Award Activity (Six Months Ended June 30, 2023) | Status | Shares | Weighted Avg. Grant Date Fair Value | | :--- | :--- | :--- | | Nonvested at Dec 31, 2022 | 1,096,931 | $23.61 | | Granted | 224,316 | $20.44 | | **Nonvested at June 30, 2023** | **1,335,443** | **$23.00** | - As of June 30, 2023, total unamortized stock-based compensation was **$18.5 million**, to be recognized over a weighted average period of **2.6 years**[294](index=294&type=chunk) [Note 9: Outstanding Commitments and Contingent Liabilities](index=46&type=section&id=Note%209:%20Outstanding%20Commitments%20and%20Contingent%20Liabilities) Off-balance-sheet commitments, primarily for credit extensions and standby letters, increased to **$2.14 billion** at June 30, 2023, from **$2.02 billion** at year-end 2022 Off-Balance-Sheet Commitments (in thousands) | Commitment Type | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Commitments to extend credit | $2,105,034 | $1,991,769 | | Standby letters of credit | $38,356 | $33,008 | | **Total commitments** | **$2,143,390** | **$2,024,777** | [Note 10: Derivative Financial Instruments](index=46&type=section&id=Note%2010:%20Derivative%20Financial%20Instruments) Busey uses **$350.0 million** notional interest rate swaps as cash flow hedges and offers customer-facing derivatives, with fair value changes recorded in current earnings - The company designated interest rate swaps with notional amounts totaling **$350.0 million** as cash flow hedges to manage variability in cash flows from debt and to reduce asset sensitivity[28](index=28&type=chunk) - Busey offers derivative contracts to customers for their risk management, managing its own risk by entering into offsetting agreements. These support commercial loan relationships totaling **$623.2 million** as of June 30, 2023[298](index=298&type=chunk) Mortgage Banking Derivatives (in thousands) | Description | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Derivatives with positive fair value** | | | | Interest rate lock commitments | $10 | $16 | | Forward sales commitments | $16 | $1 | | **Derivatives with negative fair value** | | | | Interest rate lock commitments | $6 | $1 | | Forward sales commitments | $23 | $39 | [Note 11: Fair Value Measurements](index=52&type=section&id=Note%2011:%20Fair%20Value%20Measurements) Fair value measurements are categorized into three levels, with most recurring financial assets like debt securities and derivatives classified as Level 2, using observable market inputs - The fair value hierarchy prioritizes inputs: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[36](index=36&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk) Financial Assets Measured at Fair Value on a Recurring Basis (June 30, 2023, in thousands) | Asset/Liability Type | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total Fair Value | | :--- | :--- | :--- | :--- | :--- | | Debt securities available for sale | $0 | $2,283,848 | $0 | $2,283,848 | | Equity securities | $0 | $9,034 | $0 | $9,034 | | Derivative assets | $0 | $38,238 | $15 | $38,253 | | Derivative liabilities | $0 | $68,506 | $0 | $68,506 | - Assets measured at fair value on a non-recurring basis, such as individually evaluated loans (**$3.4 million**) and impaired bank property held for sale (**$4.3 million**), are classified as Level 3[95](index=95&type=chunk)[99](index=99&type=chunk) [Note 12: Earnings Per Common Share](index=57&type=section&id=Note%2012:%20Earnings%20Per%20Common%20Share) Basic EPS was **$1.19** and diluted EPS was **$1.18** for the six months ended June 30, 2023, reflecting the dilutive effect of RSU, PSU, and DSU awards Earnings Per Common Share Calculation | Metric | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net Income (in thousands) | $29,364 | $66,150 | | Weighted average shares outstanding, basic | 55,440,277 | 55,419,250 | | Weighted average shares outstanding, diluted | 56,195,801 | 56,187,820 | | **Basic EPS** | **$0.53** | **$1.19** | | **Diluted EPS** | **$0.52** | **$1.18** | [Note 13: Accumulated Other Comprehensive Income (Loss)](index=58&type=section&id=Note%2013:%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) AOCI improved from a **$273.3 million** loss at year-end 2022 to a **$260.9 million** loss at June 30, 2023, driven by positive changes in unrealized gains/losses on debt securities Changes in AOCI by Component (Six Months Ended June 30, 2023, in thousands) | Component | Balance at Dec 31, 2022 | Net Change in Period | Balance at June 30, 2023 | | :--- | :--- | :--- | :--- | | Unrealized/Unrecognized gains (losses) on debt securities | $(252,293) | $12,525 | $(239,768) | | Unrealized gains (losses) on cash flow hedges | $(20,985) | $(168) | $(21,153) | | **Total AOCI** | **$(273,278)** | **$12,357** | **$(260,921)** | [Note 14: Operating Segments and Related Information](index=59&type=section&id=Note%2014:%20Operating%20Segments%20and%20Related%20Information) Busey operates in Banking, FirsTech, and Wealth Management segments; Banking is the largest with **$12.06 billion** in assets and **$67.5 million** net income for the period - The company's three reportable operating segments are **Banking**, **FirsTech** (payment technology), and **Wealth Management**[60](index=60&type=chunk) Segment Net Income (Six Months Ended June 30, in thousands) | Segment | 2023 | 2022 | | :--- | :--- | :--- | | Banking | $67,500 | $56,950 | | FirsTech | $188 | $947 | | Wealth Management | $9,790 | $10,932 | | Other | $(11,328) | $(10,566) | | **Total Net Income** | **$66,150** | **$58,263** | Segment Total Assets (in thousands) | Segment | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Banking | $12,057,131 | $12,199,960 | | FirsTech | $48,558 | $48,715 | | Wealth Management | $93,408 | $84,082 | | **Consolidated Total** | **$12,209,029** | **$12,336,677** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=62&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operations, highlighting a conservative strategy, strong asset quality, and a net income increase to **$66.2 million** for the first six months of 2023 [EXECUTIVE SUMMARY](index=63&type=section&id=EXECUTIVE%20SUMMARY) First Busey, a **$12.2 billion** financial holding company, reported **$66.2 million** net income for the six months ended June 30, 2023, emphasizing its conservative strategy, stable deposits, and strong asset quality - Busey's financial strength is built on a sound business strategy of conservative banking, with a focus on a quality core deposit franchise, diversified loan portfolio, and strong asset quality[83](index=83&type=chunk)[84](index=84&type=chunk) Key Operating Performance Metrics | Metric (Reported) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Income (in thousands) | $66,150 | $58,263 | | Diluted EPS | $1.18 | $1.04 | | Return on average assets | 1.09% | 0.94% | | Return on average tangible common equity | 16.12% | 13.57% | [RESULTS OF OPERATIONS](index=66&type=section&id=RESULTS%20OF%20OPERATIONS) Net interest income increased **12.6%** to **$165.6 million** for the first six months of 2023, with net interest margin expanding to **2.99%**, while noninterest income decreased and expenses remained flat [FINANCIAL CONDITION](index=79&type=section&id=FINANCIAL%20CONDITION) Total assets decreased slightly to **$12.2 billion**, with net portfolio loans growing **1.0%** to **$7.7 billion**; asset quality remains strong with non-performing loans at **0.20%** - Net loan growth was **$79.6 million** (**1.0%**) during the first six months of 2023, with management signaling a potential slowdown in future growth due to a conservative underwriting posture[410](index=410&type=chunk) Asset Quality Metrics | Ratio | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | ACL to portfolio loans | 1.17% | 1.19% | | Non-performing loans to portfolio loans | 0.20% | 0.20% | | Non-performing assets to total assets | 0.13% | 0.13% | - Core deposits, a non-GAAP measure, represented **97.0%** of total deposits as of June 30, 2023, down from **98.8%** at year-end 2022[418](index=418&type=chunk) [LIQUIDITY AND CAPITAL RESOURCES](index=84&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains adequate liquidity with **$1.88 billion** in cash and unencumbered securities, plus **$2.77 billion** in borrowing capacity, and capital ratios exceeding 'well-capitalized' minimums Liquidity Position (June 30, 2023, in thousands) | Source | Amount | | :--- | :--- | | Cash and unencumbered securities | $1,879,864 | | Additional borrowing capacity (FHLB, Fed, etc.) | $2,769,332 | - The company's capital ratios are in excess of those required to be considered 'well-capitalized' under regulatory guidelines[398](index=398&type=chunk) [NON-GAAP FINANCIAL INFORMATION](index=87&type=section&id=NON-GAAP%20FINANCIAL%20INFORMATION) Non-GAAP reconciliations show adjusted net income of **$66.2 million** and an adjusted efficiency ratio of **58.8%** for the six months ended June 30, 2023, with tangible book value per share at **$15.25** Reconciliation of Net Income to Adjusted Net Income (in thousands) | Description | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net income (GAAP) | $66,150 | $58,263 | | Acquisition & restructuring expenses | $12 | $1,138 | | Related tax benefit | $(3) | $(216) | | **Adjusted net income (Non-GAAP)** | **$66,159** | **$59,185** | Tangible Book Value Per Share | Metric | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total stockholders' equity (in thousands) | $1,201,948 | $1,145,977 | | Less: Goodwill and other intangibles, net | $(358,898) | $(364,296) | | Tangible book value (in thousands) | $843,050 | $781,681 | | **Tangible book value per common share** | **$15.25** | **$14.14** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=97&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Interest rate risk is the primary market risk; simulations show a **100 bps** rate increase would boost net interest income by **2.20%**, while a decrease would reduce it by **2.61%** Interest Rate Risk Simulation (Change in Net Interest Income) | Rate Shock | Year-One Impact (June 30, 2023) | | :--- | :--- | | +400 bps | +8.99% | | +200 bps | +4.45% | | +100 bps | +2.20% | | -100 bps | -2.61% | | -200 bps | -5.12% | [Item 4. Controls and Procedures](index=98&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during Q2 2023 - Based on an evaluation as of June 30, 2023, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[470](index=470&type=chunk) - No material changes occurred in the company's internal control over financial reporting during the three months ended June 30, 2023[471](index=471&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=99&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material pending litigation beyond ordinary routine legal matters incidental to its business - There is no material pending litigation, other than ordinary routine litigation incidental to its business, in which First Busey Corporation or any of its subsidiaries is involved[473](index=473&type=chunk)[496](index=496&type=chunk) [Item 1A. Risk Factors](index=99&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2022 Annual Report on Form 10-K - No material changes to the risk factors disclosed in Part I—Item 1A of Busey's 2022 Annual Report have occurred[474](index=474&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=99&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **20,000** shares at **$19.86** weighted average price in Q2 2023, with **2,102,210** shares remaining under the repurchase plan Share Repurchase Activity (Q2 2023) | Period | Total Shares Purchased | Weighted Avg. Price Paid | Shares Remaining Under Plan | | :--- | :--- | :--- | :--- | | April 1-30, 2023 | 0 | N/A | 2,122,210 | | May 1-31, 2023 | 0 | N/A | 2,122,210 | | June 1-30, 2023 | 20,000 | $19.86 | 2,102,210 | | **Q2 2023 Total** | **20,000** | **$19.86** | **2,102,210** | [Item 6. Exhibits](index=101&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including certifications by the Principal Executive and Financial Officers, and iXBRL data files

PART I—FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=6&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS%20(UNAUDITED)) The unaudited consolidated financial statements provide a comprehensive overview of the company's financial position, performance, and cash movements Consolidated Balance Sheet Highlights (As of March 31, 2023) | Metric | Amount (in thousands) | Change from Dec 31, 2022 | | :--- | :--- | :--- | | Total Assets | $12,344,555 | +0.1% | | Portfolio Loans, net | $7,692,081 | +0.8% | | Total Deposits | $9,801,169 | -2.7% | | Total Stockholders' Equity | $1,198,558 | +4.6% | Consolidated Income Statement Highlights (Three Months Ended March 31, 2023) | Metric | Amount (in thousands) | YoY Change | | :--- | :--- | :--- | | Net Interest Income | $85,857 | +22.6% | | Provision for Credit Losses | $953 | N/A (vs. release of $253) | | Noninterest Income | $31,848 | -11.0% | | Net Income | $36,786 | +29.3% | Earnings Per Share (Three Months Ended March 31, 2023) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Basic EPS | $0.66 | $0.51 | | Diluted EPS | $0.65 | $0.51 | Consolidated Cash Flow Highlights (Three Months Ended March 31, 2023) | Cash Flow Category | Amount (in thousands) | | :--- | :--- | | Net Cash from Operating Activities | $45,296 | | Net Cash from Investing Activities | $44,035 | | Net Cash used in Financing Activities | $(40,926) | [Note 1: Significant Accounting Policies](index=15&type=section&id=Note%201%3A%20Significant%20Accounting%20Policies) The financial statements conform to GAAP, with material estimates for ACL, and the company operates in Banking, FirsTech, and Wealth Management segments - The company operates and reports in three segments: **Banking, FirsTech (payment technology), and Wealth Management**[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) - Material estimates critical to the financial statements include the fair value of debt securities, goodwill, income taxes, and the **Allowance for Credit Losses (ACL)**[211](index=211&type=chunk) - Adopted ASU 2022-02, which eliminates the Troubled Debt Restructuring (TDR) accounting model for creditors that have adopted CECL, effective January 1, 2023, with **no material impact**[213](index=213&type=chunk) [Note 2: Debt Securities](index=17&type=section&id=Note%202%3A%20Debt%20Securities) The company held $2.38 billion in AFS and $0.91 billion in HTM securities, with unrealized losses attributed to interest rate changes, not credit issues Debt Securities Portfolio (March 31, 2023) | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | | :--- | :--- | :--- | | Available for Sale | $2,663,921 | $2,383,550 | | Held to Maturity | $907,559 | $780,653 | - As of March 31, 2023, debt securities with a carrying amount of **$764.9 million were pledged as collateral** for public deposits and other purposes[229](index=229&type=chunk) - Unrealized and unrecognized losses on debt securities, totaling **$407.5 million**, were attributed to changes in market interest rates and not credit-related impairments[270](index=270&type=chunk)[268](index=268&type=chunk) [Note 3: Portfolio Loans](index=21&type=section&id=Note%203%3A%20Portfolio%20Loans) The total loan portfolio reached $7.78 billion, primarily commercial loans, with a stable Allowance for Credit Losses (ACL) of $91.7 million Loan Portfolio Composition (March 31, 2023) | Loan Category | Amount (in thousands) | | :--- | :--- | | Total Commercial Loans | $5,815,703 | | Total Retail Loans | $1,968,105 | | **Total Portfolio Loans** | **$7,783,808** | Allowance for Credit Losses (ACL) Activity (Q1 2023) | Metric | Amount (in thousands) | | :--- | :--- | | ACL Balance, Dec 31, 2022 | $91,608 | | Provision for Credit Losses | $953 | | Charged-off | $(1,181) | | Recoveries | $347 | | **ACL Balance, Mar 31, 2023** | **$91,727** | - As of March 31, 2023, **non-accrual loans totaled $14.7 million**, and loans 30-89 days past due amounted to $5.5 million[293](index=293&type=chunk) [Note 7: Regulatory Capital](index=35&type=section&id=Note%207%3A%20Regulatory%20Capital) The company and its subsidiary bank remain well-capitalized, with all capital ratios significantly exceeding regulatory minimums Regulatory Capital Ratios (As of March 31, 2023) | Ratio | First Busey Corp. | Busey Bank | Well-Capitalized Minimum | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 | 12.18% | 14.66% | 6.50% | | Tier 1 Capital | 12.99% | 14.66% | 8.00% | | Total Capital | 16.40% | 15.59% | 10.00% | | Leverage Ratio | 9.71% | 10.95% | 5.00% | - The company elected to defer the regulatory capital impact of CECL adoption for two years until January 1, 2022, after which the impact began to be **phased-in over three years**[1](index=1&type=chunk) [Note 8: Stock-Based Compensation](index=37&type=section&id=Note%208%3A%20Stock-Based%20Compensation) Stock-based compensation expense was $1.7 million in Q1 2023, with $21.5 million in unamortized compensation remaining Stock-Based Compensation Expense (in thousands) | Award Type | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | RSU awards | $1,020 | $1,176 | | PSU awards | $360 | $412 | | DSU awards | $196 | $226 | | 2021 ESPP | $93 | $95 | | **Total** | **$1,669** | **$1,909** | - On March 22, 2023, the company granted 224,316 RSUs with a fair value of **$4.6 million**, a target of 104,643 market-based PSUs valued at **$2.1 million**, and 41,548 DSUs valued at **$0.8 million**[338](index=338&type=chunk)[339](index=339&type=chunk)[10](index=10&type=chunk) - Total unamortized stock-based compensation increased to **$21.5 million** as of March 31, 2023, from $13.0 million at year-end 2022[14](index=14&type=chunk) [Note 10: Derivative Financial Instruments](index=42&type=section&id=Note%2010%3A%20Derivative%20Financial%20Instruments) The company uses interest rate swaps and mortgage banking derivatives to manage interest rate risk Interest Rate Swaps Designated as Cash Flow Hedges (March 31, 2023) | Swap Type | Notional Amount (in thousands) | Avg. Maturity (years) | | :--- | :--- | :--- | | Debt Swap | $50,000 | 1.46 | | Loan Swap | $300,000 | 5.85 | - The company offers derivative contracts to customers for their risk management, managing its own risk by entering into equal and offsetting agreements supporting commercial loan relationships totaling **$648.3 million**[21](index=21&type=chunk)[22](index=22&type=chunk) - Mortgage banking derivatives, including interest rate lock commitments and forward sales commitments, are used to **economically hedge mortgage loans** held for sale but are not designated for hedge accounting[362](index=362&type=chunk)[363](index=363&type=chunk) [Note 11: Fair Value Measurements](index=46&type=section&id=Note%2011%3A%20Fair%20Value%20Measurements) Most financial instruments are measured at fair value using Level 2 inputs, with minimal reliance on unobservable Level 3 inputs - The fair value hierarchy prioritizes inputs: **Level 1** (quoted prices for identical assets), **Level 2** (observable inputs), and **Level 3** (unobservable inputs)[27](index=27&type=chunk)[366](index=366&type=chunk)[37](index=37&type=chunk) Assets Measured at Fair Value on a Recurring Basis (March 31, 2023) | Asset/Liability Type | Level 2 Fair Value (in thousands) | Level 3 Fair Value (in thousands) | Total Fair Value (in thousands) | | :--- | :--- | :--- | :--- | | Debt securities available for sale | $2,372,635 | $0 | $2,372,635 | | Derivative assets | $34,600 | $24 | $34,624 | | Derivative liabilities | $58,547 | $0 | $58,547 | - Assets measured at fair value on a non-recurring basis, such as individually evaluated loans and OREO, are primarily classified as **Level 3** due to reliance on unobservable inputs[43](index=43&type=chunk)[36](index=36&type=chunk)[45](index=45&type=chunk) [Note 12: Earnings Per Common Share](index=51&type=section&id=Note%2012%3A%20Earnings%20Per%20Common%20Share) Basic and diluted earnings per share for Q1 2023 were $0.66 and $0.65 respectively, an increase from $0.51 in the prior year Earnings Per Share Calculation (Q1 2023 vs Q1 2022) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net Income (in thousands) | $36,786 | $28,439 | | Weighted Avg. Shares, Basic | 55,397,989 | 55,427,696 | | Weighted Avg. Shares, Diluted | 56,179,606 | 56,194,946 | | **Basic EPS** | **$0.66** | **$0.51** | | **Diluted EPS** | **$0.65** | **$0.51** | [Note 14: Operating Segments and Related Information](index=52&type=section&id=Note%2014%3A%20Operating%20Segments%20and%20Related%20Information) The Banking segment is the primary profit driver, complemented by the Wealth Management and FirsTech segments Segment Net Income (Three Months Ended March 31, 2023) | Segment | Net Income (in thousands) | | :--- | :--- | | Banking | $36,835 | | FirsTech | $(38) | | Wealth Management | $4,858 | | Other/Eliminations | $(4,869) | | **Total Net Income** | **$36,786** | - The **Banking segment** provides a full range of services through its network in Illinois, Missouri, Florida, and Indiana[52](index=52&type=chunk)[379](index=379&type=chunk) - The **FirsTech segment** offers payment technology solutions, while the **Wealth Management segment** provides asset management, investment, and fiduciary services[53](index=53&type=chunk)[54](index=54&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=55&type=section&id=Item%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses strong Q1 2023 performance, highlighting net interest income growth, stable asset quality, and robust capital levels [Executive Summary](index=56&type=section&id=EXECUTIVE%20SUMMARY) The company reported strong Q1 2023 results driven by a conservative banking strategy, with an efficiency plan expected to yield $4.0 million in savings Q1 2023 Operating Performance Highlights | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Income (Reported) | $36,786 thousand | $28,439 thousand | | Diluted EPS (Reported) | $0.65 | $0.51 | | Return on Average Assets | 1.22% | 0.91% | | Return on Avg. Tangible Common Equity | 18.48% | 12.72% | - The company's operating mandate focuses on offering convenient products while **emphasizing credit quality over asset growth**[62](index=62&type=chunk) - A restructuring and efficiency plan is projected to generate approximately **$4.0 million in annual savings**[63](index=63&type=chunk) [Net Interest Income](index=58&type=section&id=Net%20Interest%20Income) Tax-equivalent net interest income grew 22.4% year-over-year to $86.4 million, driven by a 68 basis point expansion in net interest margin Net Interest Income and Margin (Q1 2023 vs Q1 2022) | Metric | Q1 2023 | Q1 2022 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income (Tax-equivalent) | $86,415 thousand | $70,602 thousand | +22.4% | | Net Interest Margin (Tax-equivalent) | 3.13% | 2.45% | +68 bps | - The increase in net interest income was driven by a **45.7% rise in tax-equivalent interest income**, partially offset by a 318.4% increase in interest expense[74](index=74&type=chunk) - The company remains substantially core deposit funded, with a loan-to-deposit ratio of 79.4% and **core deposits representing 97.9% of total deposits**[75](index=75&type=chunk) [Noninterest Income](index=61&type=section&id=Noninterest%20Income) Noninterest income decreased 11.0% to $31.8 million, primarily due to the Durbin Amendment's impact and lower mortgage revenue Noninterest Income Breakdown (in thousands) | Category | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Wealth management fees | $14,797 | $15,779 | (6.2)% | | Payment technology solutions | $5,315 | $5,077 | 4.7% | | Fees for customer services | $6,819 | $8,907 | (23.4)% | | Mortgage revenue | $288 | $975 | (70.5)% | | **Total Noninterest Income** | **$31,848** | **$35,772** | **(11.0)%** | - The decrease in fees for customer services was primarily due to a **$2.3 million reduction from the Durbin Amendment**, which caps debit interchange fees[410](index=410&type=chunk) - Payment technology solutions revenue from FirsTech **grew 4.7% to $5.3 million**, supported by strategic investments in its API cloud-based and BaaS platforms[86](index=86&type=chunk) [Noninterest Expense](index=64&type=section&id=Noninterest%20Expense) Noninterest expense remained flat at $70.4 million, while the efficiency ratio improved significantly to 56.9% Noninterest Expense Breakdown (in thousands) | Category | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Salaries, wages, and employee benefits | $40,331 | $39,354 | 2.5% | | Data processing | $5,640 | $4,978 | 13.3% | | Premises and equipment expenses | $6,508 | $7,097 | (8.3)% | | Other expense | $11,284 | $12,884 | (12.4)% | | **Total Noninterest Expense** | **$70,403** | **$70,376** | **0.0%** | - The **efficiency ratio improved to 56.9%** for Q1 2023, compared to 63.0% for Q1 2022, reflecting better expense management relative to revenue[418](index=418&type=chunk) [Financial Condition](index=66&type=section&id=FINANCIAL%20CONDITION) Total assets were stable at $12.3 billion, with continued core loan growth and strong asset quality - Core loan growth of **$58.2 million (0.8%)** was generated during Q1 2023, marking the eighth consecutive quarter of growth[103](index=103&type=chunk) - Asset quality remains strong, with **non-performing loans at 0.20%** of portfolio loans as of March 31, 2023[112](index=112&type=chunk) - Total deposits decreased by 2.7% to $9.8 billion, with core deposits comprising 97.9% of the total and **estimated uninsured deposits at 27%**[115](index=115&type=chunk)[120](index=120&type=chunk) [Liquidity](index=74&type=section&id=LIQUIDITY) The company maintains a strong liquidity position with over $4.7 billion in available funds from cash, securities, and borrowing capacity Available Liquidity Sources (As of March 31, 2023) | Source | Amount (in thousands) | | :--- | :--- | | Cash and unencumbered securities | $2,090,875 | | Additional borrowing capacity (FHLB, Fed, etc.) | $2,647,716 | - Management believes that as of March 31, 2023, **adequate liquidity existed** to meet all projected cash flow obligations[123](index=123&type=chunk) [Capital Resources](index=75&type=section&id=CAPITAL%20RESOURCES) Capital ratios remain significantly above 'well-capitalized' regulatory minimums, demonstrating financial strength Capital Ratios vs. Minimum Requirements (First Busey, March 31, 2023) | Ratio | Actual Ratio | Minimum with Buffer | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 12.18% | 7.00% | | Tier 1 Capital | 12.99% | 8.50% | | Total Capital | 16.40% | 10.50% | [Non-GAAP Financial Information](index=76&type=section&id=NON-GAAP%20FINANCIAL%20INFORMATION) This section reconciles GAAP to non-GAAP measures like adjusted net income and tangible common equity to provide additional performance insight - Management uses non-GAAP measures like **adjusted net income, tangible book value per share, and core efficiency ratio** to assess performance[129](index=129&type=chunk)[67](index=67&type=chunk) Reconciliation of Net Income to Adjusted Net Income (in thousands) | | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net Income (GAAP) | $36,786 | $28,439 | | Non-GAAP Adjustments (Acquisition expenses, etc.) | $0 | $665 | | **Adjusted Net Income (Non-GAAP)** | **$36,786** | **$29,104** | Key Non-GAAP Ratios | Ratio | As of March 31, 2023 | | :--- | :--- | | Tangible book value per common share | $15.14 | | Tangible common equity to tangible assets | 7.05% | | Core deposits to total deposits | 97.89% | [Quantitative and Qualitative Disclosures About Market Risk](index=87&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate risk, with the balance sheet positioned to benefit from rising rates Net Interest Income Sensitivity (Year-One Horizon, as of March 31, 2023) | Rate Shock (Basis Points) | Estimated % Change in NII | | :--- | :--- | | +200 | +4.34% | | +100 | +2.14% | | -100 | (2.92)% | | -200 | (6.03)% | - **Interest rate risk** is the most significant market risk affecting the company, managed by an asset-liability committee[170](index=170&type=chunk)[175](index=175&type=chunk) [Controls and Procedures](index=88&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal controls - The CEO and CFO concluded that as of March 31, 2023, **disclosure controls and procedures were effective**[179](index=179&type=chunk) - **No material changes** occurred in internal control over financial reporting during the three months ended March 31, 2023[180](index=180&type=chunk) PART II—OTHER INFORMATION [Legal Proceedings](index=89&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company is not party to any material pending litigation outside the ordinary course of business - There is **no material pending litigation**, other than ordinary routine litigation incidental to the business[184](index=184&type=chunk)[183](index=183&type=chunk) [Issuer Purchases of Equity Securities](index=89&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased 25,000 shares in Q1 2023, with 122,210 shares remaining under its authorized repurchase plan Share Repurchase Activity (Q1 2023) | Period | Total Shares Purchased | Weighted Avg. Price Paid | | :--- | :--- | :--- | | Jan 1-31, 2023 | 0 | N/A | | Feb 1-28, 2023 | 0 | N/A | | Mar 1-31, 2023 | 25,000 | $21.34 | - As of March 31, 2023, the company had **122,210 shares remaining** that may be purchased under the current repurchase plan[187](index=187&type=chunk)