FIRST BUSEY CORP NV

Effective income tax rates of 28.8% and 27.0% for the three and six months ended June 30, 2024, respectively, include a one-time deferred tax valuation adjustment of $1.4 million resulting from a change to our Illinois apportionment rate due to recently enacted regulations. These new regulations are expected to lower our ongoing tax obligation in future periods, but create a negative adjustment to the carrying value of our deferred tax assets in the current period. Without this one-time adjustment, the effective tax rates would have been 25.0% for the three and six months ended June 30, 2024, which are lower than the combined federal and state statutory rate of approximately 28.0% due to tax exempt interest income, such as municipal bond interest and bank owned life insurance income.

The table below presents our effective income tax rates and effective income tax rate excluding the one-time deferred tax valuation adjustment(dollars in thousands):

2 The efficiency ratio and adjusted efficiency ratio are non-GAAP financial measures. For a reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures, see “Item 2. Management’s Discussion and Analysis—Non-GAAP Financial Information” included in this Quarterly Report.

Our effective tax rates increased in 2024 due to the adoption of ASU 2023-02 in January 2024. We continue to monitor evolving federal and state tax legislation and its potential impact on operations on an ongoing basis. As of June 30, 2024, we were not under income tax examination by any income tax authority.