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)

Special Note Concerning Forward-Looking Statements 2 Ticker: BUSE 2 This document contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of the Company's performance and in making business decisions, as well as comparison to the Company's peers. The Company believes the adjusted measures are useful for investors and management to understand the effects of certain non-recurring noninterest ite ...

Table of Contents 2021 Acquisition Table of Contents | --- | --- | --- | |------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------ ...

Financial Performance - First Busey reported net income of $35.661 million for the three months ended September 30, 2022, compared to $25.941 million for the same period in 2021, representing a 37% increase [242]. - Adjusted diluted earnings per share for the three months ended September 30, 2022, was $0.65, up from $0.58 in the same period of 2021, reflecting a 12% increase [242]. - Return on average assets for the three months ended September 30, 2022, was 1.13%, compared to 0.81% for the same period in 2021, indicating a significant improvement [242]. - Adjusted net income for the three months ended September 30, 2022, was $36,435,000, compared to $32,845,000 for the same period in 2021, representing a 4.8% increase [336]. - Reported diluted earnings per share for the three months ended September 30, 2022, was $0.64, up from $0.46 in the same period of 2021, reflecting a 39.1% increase [336]. - Net interest income for the three months ended September 30, 2022, was $86,305,000, an increase from $70,755,000 in the same period of 2021, representing a 22.0% growth [341]. - Adjusted net interest income for the three months ended September 30, 2022, was $86,018,000, compared to $69,554,000 for the same period in 2021, showing a 23.6% increase [341]. Efficiency and Cost Management - The company implemented a restructuring and efficiency optimization plan expected to generate annual savings of $4.0 million to $4.4 million, with one-time costs estimated at $1.1 million to $1.3 million [240]. - Total noninterest expense for the three months ended September 30, 2022, was $70.7 million, a 3.7% decrease from the same period in 2021, while for the nine months ended September 30, 2022, it was $210.2 million, a 10.3% increase from the comparable period in 2021 [280]. - The efficiency ratio for the three and nine months ended September 30, 2022, was 57.6% and 60.3%, respectively, compared to 67.3% and 61.4% for the same periods in 2021 [289]. - Adjusted noninterest expense for the three months ended September 30, 2022, was $66,908, compared to $61,661 in the same period last year, an increase of 8.1% [343]. Asset and Liability Management - Total assets increased to $12,547,816, up from $11,571,270 in the previous year [256]. - Total liabilities and stockholders' equity reached $12,547,816, reflecting growth from $11,571,270 [256]. - Total deposits decreased by $167,180, or 1.6%, to $10,601,397 as of September 30, 2022, compared to $10,768,577 as of December 31, 2021 [292]. - The company maintains a well-diversified loan portfolio and limits concentration exposure in any particular loan segment [295]. - As of September 30, 2022, additional borrowing capacity available from FHLB was $1.82 billion, from the Federal Reserve was $752.73 million, and total additional borrowing capacity was $2.62 billion [324]. Loan and Deposit Growth - Portfolio loans totaled $7,617,918 million with a yield of 3.98% [254]. - Core loans as of September 30, 2022, were $7,668,688, up from $7,114,040 as of December 31, 2021, reflecting a growth of 7.8% [348]. - Total average deposits grew by 10.2% to $10,566,668 from $9,588,530 year-over-year [258]. - Non-performing loans decreased by 1.2% to $16,654 thousand as of September 30, 2022, from $16,852 thousand as of December 31, 2021, resulting in a non-performing loans to portfolio loans ratio of 0.22% [317]. Interest Income and Margin - Net interest margin stood at 3.00% [254]. - Net interest spread was reported at 2.83% for the three months ended September 30, 2022, compared to 2.29% for the same period in 2021, reflecting a significant increase [263]. - Interest income from earning assets was $11,497,783 million, reflecting a yield of 3.31% [254]. - The annualized net interest margin for the third quarter of 2022 was 3.00%, up from 2.41% in the same quarter of 2021 [264]. Noninterest Income - Total noninterest income was $30.9 million for the three months ended September 30, 2022, a 7.0% decrease from $33.3 million in the comparable period in 2021 [269]. - Wealth management fees decreased by 9.0% to $12.5 million for the three months ended September 30, 2022, while increasing by 7.8% to $42.4 million for the nine months ended September 30, 2022 [270]. - Payment technology solutions revenue increased by 10.0% to $5.1 million for the three months ended September 30, 2022, and by 9.3% to $15.0 million for the nine months ended September 30, 2022 [271]. - Mortgage revenue plummeted by 74.8% to $0.4 million for the three months ended September 30, 2022, reflecting declines in sold-loan mortgage volume [274]. Credit Quality and Risk Management - The allowance for credit losses (ACL) increased by $2.4 million for the three months ended September 30, 2022, compared to a release of $1.9 million for the same period in 2021 [304]. - The ACL to non-accrual loans ratio was 588.15% as of September 30, 2022, compared to 551.15% on September 30, 2021, showing an improvement in coverage [314]. - Potential problem loans increased to $83,700 thousand as of September 30, 2022, compared to $70,500 thousand as of December 31, 2021, indicating a rise of approximately 18.5% [319]. - The company anticipates that restructurings and additional collateral will result in full repayment of potential problem loans identified as of September 30, 2022 [319]. Market and Economic Factors - The company anticipates potential impacts from economic factors such as inflation, supply chain constraints, and changes in interest rates, which could affect future performance [350]. - Interest rate risk is the most significant market risk affecting the company, with minimal impact from foreign currency exchange rate risk and commodity price risk [366]. - As of September 30, 2022, a 300 basis point decrease in interest rates would result in a net interest income change of -22.39% [369].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2022 ☐ 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 organization) ...

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|----------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | July 26, 2022 2Q22 QUARTERLY EARNINGS SUPPLEMENT | | | | | | | | | | Special Note Concerning Forward-Looking Statements Statements made in this document, other than those concerning historical financial information, may be considered forwardlooking statements within the meaning of the Private Secur ...

1Q22 QUARTERLY EARNINGS SUPPLEMENT April 26, 2022 busey.com Member FDI Special Note Concerning Forward-Looking Statements Statements made in this document, other than those concerning historical financial information, may be considered forwardlooking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance, and business of the Company. Forward-looking statements, which may be ba ...

Financial Performance - First Busey reported net income of $28.439 million for the three months ended March 31, 2022, compared to $29.926 million for the previous quarter and $37.816 million for the same period last year [196]. - Diluted earnings per common share were $0.51 for Q1 2022, down from $0.53 in Q4 2021 and $0.69 in Q1 2021 [196]. - Adjusted net income for Q1 2022 was $29.104 million, compared to $34.277 million in Q4 2021 and $38.065 million in Q1 2021 [196]. - Noninterest income totaled $35.8 million, reflecting a 13.8% increase from $31.4 million in the same period last year [217]. - Wealth management fees increased by 25.4% to $15,779 compared to $12,584 in the prior year [217]. - The efficiency ratio was 63.0% for the three months ended March 31, 2022, compared to 54.7% for the same period in 2021 [234]. Asset and Deposit Growth - Average interest-earning assets increased by 20.0% to $11,703,947 compared to $9,752,294 in the previous year [209]. - Total average deposits rose by 21.7% to $10,617,438 from $8,722,458 year-over-year [209]. - Total deposits decreased by 1.6% to $10.6 billion as of March 31, 2022, compared to $10.8 billion as of December 31, 2021 [264]. Loan Portfolio - Portfolio loans, net increased by 1.2% to $7.18 billion as of March 31, 2022, compared to $7.10 billion as of December 31, 2021 [239]. - The loan to deposit ratio was 68.7% as of March 31, 2022 [213]. - Core loans reached $7,241,104 in March 2022, up from $7,114,040 in December 2021, while portfolio loans increased to $7,272,873 [298]. - Excluding PPP loans, commercial balances increased by $80.3 million since December 31, 2021 [252]. Non-Performing Loans and Credit Quality - Non-performing loans are classified based on payment obligations, with management actively monitoring loan performance [255]. - Non-performing loan balances decreased by 24.7% to $12.7 million as of March 31, 2022, compared to $16.9 million as of December 31, 2021 [259]. - The Allowance for Credit Losses (ACL) was $88.213 million as of March 31, 2022, with a ratio of ACL to portfolio loans at 1.21% [257]. - The ACL to non-performing loans ratio improved to 695.41% as of March 31, 2022, compared to 521.52% as of December 31, 2021 [259]. Interest Income and Margin - The net interest margin decreased to 2.45% from 2.72% year-over-year [210]. - Net interest income for March 31, 2022, was $70,056 thousand, a slight decrease from $70,508 thousand for the three months ended December 31, 2021 [289]. - Reported net interest margin for March 31, 2022, was 2.45%, an increase from 2.36% in the previous quarter [289]. Operational Changes and Acquisitions - The company completed the acquisition of CAC, enhancing its operational capabilities and resetting the baseline for future financial performance [195]. - Non-operating pre-tax adjustments for Q1 2022 included $0.8 million in acquisition-related expenses [198]. Economic and Market Conditions - The company anticipates potential impacts from economic factors such as inflation, supply chain constraints, and changes in interest rates [300]. - The interest rate risk affecting First Busey is primarily due to movements in interest rates, with minimal impact from foreign currency exchange rate risk and commodity price risk [316]. Accounting and Financial Reporting - The company has established critical accounting estimates that may affect financial condition and results of operations, which are reviewed with the Audit Committee [302]. - Goodwill represents the excess of purchase price over the fair value of net assets acquired, and is assessed for impairment annually [310].

Table of Contents 7 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, 2021 ☐ 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 organizatio ...

[Part I - Financial Information](index=4&type=section&id=Part%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) The unaudited consolidated financial statements detail the company's financial position, performance, and cash flows as of September 30, 2021 [Consolidated Balance Sheets](index=5&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) Total assets grew to $12.90 billion funded by a significant rise in deposits, reflecting increases in debt securities and portfolio loans Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$12,899,330** | **$10,544,047** | | Total cash and cash equivalents | $883,845 | $688,537 | | Debt securities available for sale | $3,997,244 | $2,261,187 | | Portfolio loans, net | $7,057,833 | $6,713,129 | | Goodwill | $317,766 | $311,536 | | **Total Liabilities** | **$11,566,254** | **$9,273,978** | | Total deposits | $10,817,867 | $8,677,849 | | **Total Stockholders' Equity** | **$1,333,076** | **$1,270,069** | [Consolidated Statements of Income](index=6&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Net income for the nine-month period rose to $93.5 million, driven by a significant decrease in the provision for credit losses Income Statement Summary (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net Interest Income | $200,190 | $209,999 | | Provision for credit losses | $(10,365) | $35,656 | | Total Noninterest Income | $97,715 | $87,766 | | Total Noninterest Expense | $190,611 | $170,124 | | **Net Income** | **$93,523** | **$71,999** | | **Diluted EPS** | **$1.67** | **$1.31** | [Notes to Unaudited Consolidated Financial Statements](index=12&type=section&id=NOTES%20TO%20UNAUDITED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) Notes detail accounting policies, the Cummins-American Corp acquisition, and the composition of portfolios, capital, and segments - The company operates in three segments: Banking, Remittance Processing, and Wealth Management[32](index=32&type=chunk) - The company participated in the Paycheck Protection Program (PPP), originating or acquiring over **$1.09 billion** in loans, with **$183.1 million** outstanding as of September 30, 2021[38](index=38&type=chunk)[40](index=40&type=chunk) - On May 31, 2021, the company completed its acquisition of Cummins-American Corp (CAC), the holding company for Glenview State Bank (GSB), for total consideration of **$129.5 million**, resulting in **$6.2 million** of goodwill[43](index=43&type=chunk)[47](index=47&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management analyzes financial performance, noting impacts from COVID-19, the CAC acquisition, and a compressed net interest margin - The company continues to navigate the COVID-19 economic environment, with **$116.6 million** in commercial loans remaining on interest-only deferrals[180](index=180&type=chunk)[183](index=183&type=chunk)[185](index=185&type=chunk) - A plan was announced to close and consolidate **17 banking centers** in Q4 2021 to improve operational efficiency[191](index=191&type=chunk) - The tax-equivalent net interest margin compressed to **2.41%** for Q3 2021 from 2.86% in Q3 2020, impacted by rate cuts and liquidity growth[201](index=201&type=chunk)[203](index=203&type=chunk) [Financial Condition](index=59&type=section&id=FINANCIAL%20CONDITION) Total assets reached $12.9 billion, a 22.3% increase, driven by the CAC acquisition and strong growth in loans and deposits Balance Sheet Changes (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | % Change | | :--- | :--- | :--- | :--- | | Total Assets | $12,899,330 | $10,544,047 | 22.3% | | Portfolio loans, net | $7,057,833 | $6,713,129 | 5.1% | | Total Deposits | $10,817,867 | $8,677,849 | 24.7% | | Total Stockholders' Equity | $1,333,076 | $1,270,069 | 5.0% | Asset Quality Ratios | Metric | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | Non-performing loans to portfolio loans | 0.36% | 0.36% | | ACL to portfolio loans | 1.30% | 1.48% | | ACL to non-performing loans | 358.86% | 415.82% | [Liquidity](index=65&type=section&id=LIQUIDITY) The company maintains a strong liquidity position funded by core deposits, with significant additional borrowing capacity available - Primary sources of funds include deposits, investment maturities, loan repayments, and capital[261](index=261&type=chunk) - As of September 30, 2021, the company had additional borrowing capacity of **$1.2 billion** from the FHLB and **$603.6 million** from the Federal Reserve[261](index=261&type=chunk) [Capital Resources](index=65&type=section&id=CAPITAL%20RESOURCES) Capital ratios remain well in excess of regulatory 'well-capitalized' requirements, with a CET1 ratio of 11.95% Capital Ratios as of September 30, 2021 | Ratio | First Busey Corp. | Busey Bank | Minimum with Buffer | | :--- | :--- | :--- | :--- | | Total Capital to Risk Weighted Assets | 15.91% | 15.87% | 10.50% | | Tier 1 Capital to Risk Weighted Assets | 12.84% | 15.04% | 8.50% | | CET1 Capital to Risk Weighted Assets | 11.95% | 15.04% | 7.00% | [Quantitative and Qualitative Disclosures About Market Risk](index=74&type=section&id=Item%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate risk, with simulations showing an asset-sensitive position Net Interest Income Sensitivity to Interest Rate Changes | Rate Change | Year-One Change (Sep 30, 2021) | Year-One Change (Dec 31, 2020) | | :--- | :--- | :--- | | +100 bps | +8.44% | +7.40% | | +200 bps | +16.43% | +14.16% | | +300 bps | +24.32% | +20.20% | [Controls and Procedures](index=75&type=section&id=Item%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - The CEO and CFO concluded that disclosure controls and procedures were **effective** as of the end of the period[306](index=306&type=chunk) - **No material changes** in internal control over financial reporting were identified during the third quarter of 2021[307](index=307&type=chunk) [Part II - Other Information](index=76&type=section&id=Part%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=76&type=section&id=Item%201.%20LEGAL%20PROCEEDINGS) The company is not involved in any material pending litigation outside the ordinary course of business - There is **no material pending litigation**, other than ordinary routine litigation incidental to its business[311](index=311&type=chunk) [Risk Factors](index=76&type=section&id=Item%201A.%20RISK%20FACTORS) No material changes were reported to the risk factors previously disclosed in the 2020 Annual Report - **No material changes** to the risk factors disclosed in the 2020 Annual Report were reported[313](index=313&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=76&type=section&id=Item%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) The company repurchased 625,000 shares in Q3 2021, with 953,824 shares remaining available under the current plan Share Repurchases in Q3 2021 | Period | Total Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | July 2021 | 137,000 | $23.84 | | August 2021 | 288,000 | $23.73 | | September 2021 | 200,000 | $23.45 | | **Total Q3** | **625,000** | **$23.66** | - As of September 30, 2021, **953,824 shares** may still be purchased under the existing repurchase plan[314](index=314&type=chunk)[315](index=315&type=chunk) [Exhibits](index=77&type=section&id=Item%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including certifications and interactive data files