FIRST BUSEY CORP /NV/

Previous wording

The following discussion and analysis are intended to assist readers in understanding Busey’s financial condition and results of operations during the three and six months ended June 30, 2025, and should be read in conjunction with Busey’s Consolidated Financial Statements (Unaudited) and the related Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report, as well as Busey’s 2024 Annual Report.

Current wording

The following discussion and analysis are intended to assist readers in understanding Busey’s financial condition and results of operations during the three and nine months ended September 30, 2025, and should be read in conjunction with Busey’s Consolidated Financial Statements (Unaudited) and the related Notes to the Consolidated Financial Statements (Unaudited) included in this Quarterly Report, as well as Busey’s 2024 Annual Report.

Previous wording

First Busey Corporation is an $18.92 billion financial holding company headquartered in Leawood, Kansas. First Busey Corporation’s common stock is traded on The Nasdaq Global Select Market under the symbol “BUSE.”

Current wording

First Busey Corporation is an $18.19 billion financial holding company headquartered in Leawood, Kansas. First Busey Corporation’s common stock is traded on The Nasdaq Global Select Market under the symbol “BUSE,” and its preferred stock is traded on The Nasdaq Global Select Market under the symbol “BUSEP.”

Previous wording

Busey Bank, headquartered in Champaign, Illinois, serves the banking needs of its customers through 78 banking centers located across six regions spanning 10 states.

Current wording

Busey Bank, headquartered in Champaign, Illinois, serves the banking needs of its customers through 79 banking centers located across six regions spanning 10 states.

Previous wording

Busey Bank operates 20 banking centers in the St. Louis MSA, including eight banking centers in eastern Missouri and 12 banking centers in western Illinois. With a population exceeding 2.8 million, St. Louis has a diverse economy and major employment sectors that include healthcare, financial services, professional and business services, and retail. Busey continues to build on its legacy of serving dynamic urban and suburban markets in the region.

Current wording

Busey Bank operates 20 banking centers in the St. Louis MSA, including eight banking centers in eastern Missouri and 12 banking centers in western Illinois. St. Louis has a diverse economy and major employment sectors that include healthcare, financial services, professional and business services, and retail. Busey continues to build on its legacy of serving dynamic urban and suburban markets in the region.

Previous wording

Busey Bank serves the central Illinois banking market with 21 banking centers. The economy of central Illinois is agriculture-base, with manufacturing and services industries also featuring prominently. These industries, coupled with large healthcare and higher education sectors, anchor the communities in which they are located and have provided a comparatively stable foundation for housing, employment, and small business.

Current wording

Busey Bank serves the central Illinois banking market with 21 banking centers. The economy of central Illinois is agriculture-based, with a prominent presence of manufacturing and services industries. These industries, coupled with large healthcare and higher education sectors, anchor the communities in which they are located and have provided a comparatively stable foundation for housing, employment, and small business.

Previous wording

Busey Bank serves the Kansas banking market with three banking centers, including two locations in Leawood and one in Wichita. Leawood, part of the Kansas City MSA, is known for its desirable residential communities and concentration of corporate offices and financial institutions. Wichita, the largest city in Kansas, features strong aviation and manufacturing sectors, along with growing healthcare and education footprints. These markets offer Busey a well-balanced mix of consumer and commercial banking potential.

Current wording

Busey Bank serves the Kansas City MSA with three banking centers, including two locations in Leawood, Kansas and one in Kansas City, Missouri. The Kansas City MSA is a diverse and economically vibrant region, supported by industries such as healthcare, financial services, manufacturing, and transportation. Leawood is known for its desirable residential communities and concentration of corporate offices and financial institutions, while the Missouri location provides connectivity to the area’s broader commercial and industrial base. Together, these banking centers position Busey to serve a wide range of consumer and business clients across one of the Midwest’s most dynamic metropolitan regions.

Previous wording

Busey Bank operates four banking centers across the Dallas-Fort Worth (“DFW”) MSA, including locations in Dallas, Frisco, and Fort Worth, Texas. The DFW MSA is the most populous metropolitan area in the southern United States, and serves as a key business and financial hub with a diverse economy spanning technology, healthcare, telecommunications, and logistics. The region’s rapid population growth, entrepreneurial energy, and deep talent pool have created strong demand for housing and commercial expansion, aligning well with Busey’s financial services model.

Current wording

Busey Bank operates four banking centers across the Dallas-Fort Worth MSA, including locations in Dallas, Frisco, and Fort Worth, Texas. The Dallas-Fort Worth MSA is the most populous metropolitan area in the southern United States, and serves as a key business and financial hub with a diverse economy spanning technology, healthcare, telecommunications, and logistics. The region’s rapid population growth, entrepreneurial energy, and deep talent pool have created strong demand for housing and commercial expansion, aligning well with Busey’s financial services model.

Previous wording

Busey Bank has two banking centers in Colorado, located in Denver and Colorado Springs. Denver stands out as a major economic center with thriving industries in technology, energy, and financial services, while Colorado Springs offers a more suburban environment anchored by defense, aerospace, and healthcare sectors. Both cities have experienced consistent population growth and infrastructure investment, creating opportunities for Busey to serve a dynamic customer base.

Current wording

Busey Bank has three banking centers in Colorado, located in Denver and Colorado Springs. Denver stands out as a major economic center with thriving industries in technology, energy, and financial services, while Colorado Springs offers a more suburban environment anchored by defense, aerospace, and healthcare sectors. Both cities have experienced consistent population growth and infrastructure investment, creating opportunities for Busey to serve a dynamic customer base.

Previous wording

Busey’s financial strength is built on a long-term conservative operating approach. The quality of Busey’s core deposit franchise is a critical value driver of the institution. Busey remains substantially core deposit 1 funded, with robust liquidity and significant market share in the communities it serves. As of June 30, 2025, Busey’s loan to deposit ratio was 87.4% and core deposits represented 92.5% of total deposits. Furthermore, Busey has sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of its customers.

Current wording

Busey’s financial strength is built on a long-term conservative operating approach. The quality of Busey’s core deposit franchise is a critical value driver of the institution. Busey remains substantially core deposit 1 funded, with robust liquidity and significant market share in the communities it serves. As of September 30, 2025, Busey’s loan to deposit ratio was 90.2% and core deposits represented 93.8% of total deposits. Furthermore, Busey has sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of its customers.

Previous wording

Busey’s conservative banking strategy is reflected in the strength of its capital base. Busey strives to consistently maintain capital ratios well in excess of thresholds required to be designated as well capitalized by applicable regulatory guidelines, thereby ensuring financial strength and flexibility across economic and operating cycles. As of June 30, 2025, Busey’s leverage ratio of Tier 1 capital to average assets was 11.3%, its common equity Tier 1 capital to risk weighted assets ratio was 12.2%, and its total capital to risk weighted assets ratio was 15.8%.

Current wording

Busey’s conservative banking strategy is reflected in the strength of its capital base. Busey strives to consistently maintain capital ratios well in excess of thresholds required to be designated as well capitalized by applicable regulatory guidelines, thereby ensuring financial strength and flexibility across economic and operating cycles. As of September 30, 2025, Busey’s leverage ratio of Tier 1 capital to average assets was 11.6%, its common equity Tier 1 capital to risk weighted assets ratio was 12.3%, and its total capital to risk weighted assets ratio was 15.9%.

Previous wording

On March 1, 2025, Busey completed its acquisition of CrossFirst and its wholly-owned subsidiary, CrossFirst Bank. This partnership creates a premier commercial bank in the Midwest, Southwest, and Florida, with 78 full-service locations across 10 states—Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas.

Current wording

On March 1, 2025, Busey completed its acquisition of CrossFirst and its wholly-owned subsidiary, CrossFirst Bank. This partnership creates a premier commercial bank with 79 full-service locations across 10 states.

Previous wording

Operating performance metrics presented in the table below have been derived from information used by management to monitor and manage Busey’s financial performance. In addition to the non-operating expenses in the table above, adjusted operating performance metrics also reflect adjustments for strategic balance sheet repositioning and net securities gains and losses to align with industry and research analyst reporting. The objective of Busey’s presentation of adjusted earnings and adjusted earnings metrics is to allow investors and analysts to more clearly identify quarterly trends in core earnings performance:

Current wording

Busey views certain non-operating items, including acquisition-related expenses, restructuring charges, and nonrecurring strategic events, as adjustments to net income reported under GAAP. We also adjust for net securities gains and losses to align with industry and research analyst reporting. The objective of our presentation of adjusted earnings and adjusted earnings metrics is to allow investors and analysts to more clearly identify quarterly trends in core earnings performance. Pre-tax non-GAAP adjustments were as follows:

Previous wording

During the three months ended June 30, 2025, the Busey recorded a $4.0 million adjustment to the initial provision for unfunded commitments for CrossFirst acquisition-date balances based on revised estimates resulting from implementation of a new CECL model. During the six months ended June 30, 2025, in connection with the CrossFirst acquisition, Busey’s recorded expense for the initial provision for credit losses consisting of a Day 2 provision for loan losses of $42.4 million, a Day 2 provision for unfunded commitments of $3.1 million, and the aforementioned adjustment to the initial provision for unfunded commitments of $4.0 million.

Current wording

During the nine months ended September 30, 2025, in connection with the CrossFirst acquisition, Busey’s recorded expense for the initial provision for credit losses consisting of a Day 2 provision for loan losses of $42.4 million, a Day 2 provision for unfunded commitments of $3.1 million, and an adjustment to the initial provision for unfunded commitments of $4.0 million that was recorded based on revised estimates resulting from implementation of a new CECL model.

Previous wording

Interest income includes tax-equivalent adjustments of $1.3 million and $0.9 million for the six months ended June 30, 2025 and 2024, respectively.

Current wording

Interest income includes tax-equivalent adjustments of $2.1 million and $1.2 million for the nine months ended September 30, 2025 and 2024, respectively.

Previous wording

Total noninterest income was $44.9 million for the three months ended June 30, 2025, an increase of 33.1% from the comparable period in 2024, primarily due to unrealized net gains recognized on equity securities, as well as the benefit of a full quarter of income from the CrossFirst acquisition. Total noninterest income was $66.1 million for the six months ended June 30, 2025, a decrease of 3.7% from the comparable period in 2024. The six months ended June 30, 2025 includes four months of income from the CrossFirst acquisition, offset by net securities losses that were recorded in the first quarter of 2025 in connection with a strategic balance sheet repositioning. Additionally, the prior year included $7.7 million of realized net gains on the sale of mortgage servicing rights, which was not repeated in the current year.

Current wording

Total noninterest income was $41.2 million for the three months ended September 30, 2025, an increase of 14.9% from the comparable period in 2024, as we benefit from the CrossFirst acquisition and extend services into new markets. Total noninterest income was $107.3 million for the nine months ended September 30, 2025, an increase of 2.7% from the comparable period in 2024. The nine months ended September 30, 2025, includes seven months of income from the CrossFirst acquisition, offset by net securities losses that were recorded in the first quarter of 2025 in connection with a strategic balance sheet repositioning. Additionally, the prior year included $7.7 million of realized net gains on the sale of mortgage servicing rights, which was not repeated in the current year.

Previous wording

Wealth management fees were $16.8 million for the three months ended June 30, 2025, a 5.4% increase from the comparable period in 2024, and were $34.1 million for the six months ended June 30, 2025, an 8.5% increase from the comparable period for 2024, primarily due to increases in trust fee income. On a segment basis, Busey’s Wealth Management division contributed $17.0 million, or 37.9%, of Busey’s noninterest income for the three months ended June 30, 2025, which included approximately $0.2 million reported as other noninterest income, and contributed $34.6 million, or 52.3%, of Busey’s noninterest income for the six months ended June 30, 2025, which included approximately $0.4 million reported as other noninterest income. Busey’s Wealth Management division ended the second quarter of 2025 with $14.10 billion in assets under care, an increase of 8.3% compared to the balance on June 30, 2024. Busey’s portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets.

Current wording

Wealth management fees were $17.2 million for the three months ended September 30, 2025, an 11.7% increase from the comparable period in 2024, and were $51.3 million for the nine months ended September 30, 2025, a 9.6% increase from the comparable period for 2024, primarily due to increases in trust fee income. On a segment basis, Busey’s Wealth Management division contributed $17.4 million, or 42.2%, of Busey’s noninterest income for the three months ended September 30, 2025, which included approximately $0.2 million reported as other noninterest income, and contributed $51.9 million, or 48.4%, of Busey’s noninterest income for the nine months ended September 30, 2025, which included approximately $0.6 million reported as other noninterest income. Busey’s Wealth Management division ended the third quarter of 2025 with $14.96 billion in assets under care, an increase of 9.3% compared to the balance on September 30, 2024. Busey’s portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets.

Previous wording

Payment technology solutions relates to Busey’s payment processing company, FirsTech. Income from payment technology solutions was $5.0 million for the three months ended June 30, 2025, a 16.2% decrease from the comparable period in 2024, and was $10.0 million for the six months ended June 30, 2025, a 13.7% decrease from the comparable period in 2024, primarily due to decreases in income from online bill payments. On a segment basis, FirsTech contributed $5.4 million, or 12.0%, of Busey’s noninterest income for the three months ended June 30, 2025, and $10.8 million, or 16.3%, of Busey’s noninterest income for the six months ended June 30, 2025.

Current wording

Payment technology solutions relates to Busey’s payment processing company, FirsTech. Income from payment technology solutions was $5.1 million for the three months ended September 30, 2025, a 3.3% decrease from the comparable period in 2024, and was $15.1 million for the nine months ended September 30, 2025, a 10.5% decrease from the comparable period in 2024, primarily due to decreases in income from online bill payments. On a segment basis, FirsTech contributed $5.5 million, or 13.4%, of Busey’s noninterest income for the three months ended September 30, 2025, and $16.3 million, or 15.2%, of Busey’s noninterest income for the nine months ended September 30, 2025.

Previous wording

Combined, noninterest income from wealth management fees and payment technology solutions represented 48.4% and 66.8% of Busey’s noninterest income for the three and six months ended June 30, 2025, respectively, providing a complement to spread-based revenue from traditional banking activities.

Current wording

Combined, noninterest income from wealth management fees and payment technology solutions represented 54.1% and 61.9% of Busey’s noninterest income for the three and nine months ended September 30, 2025, respectively, providing a complement to spread-based revenue from traditional banking activities.

Previous wording

Treasury management services consist primarily of business analysis charges and wire transfer fees on commercial accounts. Income from treasury management services increased by 132.2% and 97.7% compared to the three and six months ended June 30, 2024, respectively, due to the addition of CrossFirst commercial services.

Current wording

Treasury management services consist primarily of business analysis charges and wire transfer fees on commercial accounts. Income from treasury management services increased by 108.9% and 101.6% compared to the three and nine months ended September 30, 2024, respectively, due to the addition of CrossFirst commercial services.

Previous wording

Card services and ATM fees, which include both commercial and consumer accounts, increased by 42.3% and 34.4% compared to the three and six months ended June 30, 2024, respectively, primarily due to addition of CrossFirst corporate card services.

Current wording

Card services and ATM fees, which include both commercial and consumer accounts, increased by 34.9% and 34.6% compared to the three and nine months ended September 30, 2024, respectively, primarily due to addition of CrossFirst corporate card services.

Previous wording

Other service charges on deposit accounts were $1.5 million and $3.0 million for the three and six months ended June 30, 2025, respectively, which was a decline of 34.8% compared to both the three and six months ended June 30, 2024. Declines are largely related to lower non-sufficient fund charges, reflecting changes Busey made to its fee structure in 2025.

Current wording

Other service charges on deposit accounts were $1.6 million for the three months ended September 30, 2025, a 32.3% decline from the comparable period in 2024, and were $4.7 million for the nine months ended September 30, 2025, a decline of 33.9% from the comparable period in 2024. Declines were largely related to lower non-sufficient fund charges, reflecting changes Busey made to its fee structure in 2025.

Previous wording

Mortgage revenue was $0.8 million for the three months ended June 30, 2025, a 62.3% increase from the comparable period in 2024, and was $1.1 million for the six months ended June 30, 2025, a 9.7% decrease from the comparable period in 2024. General economic conditions and interest rate volatility may impact future mortgage revenue.

Current wording

Mortgage revenue was $0.7 million for the three months ended September 30, 2025, an 85.1% increase from the comparable period in 2024, and was $1.8 million for the nine months ended September 30, 2025, an 11.6% increase from the comparable period in 2024. General economic conditions and interest rate volatility may impact future mortgage revenue.

Previous wording

Income on bank owned life insurance was $1.7 million for the three months ended June 30, 2025, a 21.0% increase from the comparable period in 2024, as a result of a $0.5 million increase in the cash surrender value of the policies, partially offset by a $0.2 million decrease in earnings on death proceeds. Income on bank owned life insurance was $3.2 million for the six months ended June 30, 2025, an 11.5% increase from the comparable period in 2024, as a result of a $0.8 million increase in the cash surrender value of the policies, partially offset by a $0.4 million decrease in earnings on death proceeds.

Current wording

Income on bank owned life insurance was $1.6 million for the three months ended September 30, 2025, a 36.5% increase from the comparable period in 2024, as a result of a $0.5 million increase in the cash surrender value of the policies, partially offset by a $0.1 million decrease in earnings on death proceeds. Income on bank owned life insurance was $4.8 million for the nine months ended September 30, 2025, an 18.9% increase from the comparable period in 2024, as a result of a $1.3 million increase in the cash surrender value of the policies, partially offset by a $0.5 million decrease in earnings on death proceeds.

Previous wording

During the six months ended June 30, 2025, Busey did not record any realized gains on the sale of mortgage servicing rights. In comparison, during the six months ended June 30, 2024, Busey recognized a $7.7 million gain on the sale of mortgage servicing rights in connection with a strategic two-part balance sheet repositioning. For more information, see“Busey executed a two-part balance sheet repositioning strategy” in the Management Discussion and Analysis included in Busey’s Quarterly Report for the first quarter of 2024, filed with the SEC on May 7, 2024.

Current wording

During the nine months ended September 30, 2025, Busey did not record any realized gains on the sale of mortgage servicing rights. In comparison, during the nine months ended September 30, 2024, Busey recognized a $7.7 million gain on the sale of mortgage servicing rights in connection with a strategic two-part balance sheet repositioning. For more information, see“Busey executed a two-part balance sheet repositioning strategy” in the Management Discussion and Analysis included in Busey’s Quarterly Report for the first quarter of 2024, filed with the SEC on May 7, 2024.

Previous wording

Net securities gains were $6.0 million for the three months ended June 30, 2025, an increase over the net securities losses from the comparable period in 2024. The increase was related to unrealized gains on Busey’s approximately 3% equity ownership of a financial institution that was the target of an announced acquisition at a significant market premium. Net securities losses of $9.8 million during the six months ended June 30, 2025, were greater than the net securities losses realized during the comparable period in 2024. Losses for the six months ended June 30, 2025, were comprised of $15.5 million of realized net losses on securities associated with a strategic balance sheet repositioning in the first quarter of 2025, partially offset by $5.8 million of unrealized net gains recognized on equity securities in the second quarter of 2025.

Current wording

Net securities losses were $0.3 million for the three months ended September 30, 2025, a decrease from the net securities gains from the comparable period in 2024. Net securities losses of $10.1 million during the nine months ended September 30, 2025, were greater than the net securities losses realized during the comparable period in 2024. Losses for the nine months ended September 30, 2025, were comprised of $15.5 million of realized net losses on securities associated with a strategic balance sheet repositioning in the first quarter of 2025, partially offset by second quarter unrealized net gains on Busey’s approximately 3% equity ownership of a financial institution that was the target of an announced acquisition at a significant market premium.

Previous wording

Other noninterest income was $3.2 million for the three months ended June 30, 2025, a 51.9% increase from the comparable period in 2024, and was $7.8 million for the six months ended June 30, 2025, a 45.8% increase from the comparable period in 2024. Increases were attributable to fluctuations in income recognized on venture capital investments, gains on commercial loan sales, commercial loan servicing income, other loan fee income, swap origination fees and OREO gains and losses.

Current wording

Other noninterest income was $5.9 million for the three months ended September 30, 2025, a 25.7% increase from the comparable period in 2024, and was $13.7 million for the nine months ended September 30, 2025, a 36.4% increase from the comparable period in 2024. Increases were primarily attributable to fluctuations in income recognized on private equity investments, commercial loan servicing income, swap origination fees, and syndication fees.

Previous wording

Total noninterest expense was $127.8 million for the three months ended June 30, 2025, a 68.4% increase from the comparable period in 2024. Total noninterest expense was $239.9 million for the six months ended June 30, 2025, a 62.8% increase from the comparable period in 2024. Growth in noninterest expense was primarily attributable to acquisition and restructuring expenses related to the CrossFirst acquisition, added costs for operating expenses for two banks from March 1, 2025, until the banks were merged on June 20, 2025, and increased expenses associated with the larger organization and branch network. Acquisition and restructuring expenses contributed $16.6 million to total noninterest expense for the three months ended June 30, 2025, compared to $2.2 million for the comparable period in 2024. Acquisition and restructuring expenses contributed $42.6 million to total noninterest expense for the six months ended June 30, 2025, compared to $2.6 million for the comparable period in 2024.

Current wording

Total noninterest expense was $120.0 million for the three months ended September 30, 2025, a 58.9% increase from the comparable period in 2024. Total noninterest expense was $359.9 million for the nine months ended September 30, 2025, a 61.5% increase from the comparable period in 2024. Growth in noninterest expense was primarily attributable to acquisition and restructuring expenses related to the CrossFirst acquisition, added costs for operating expenses for two banks from March 1, 2025, until the banks were merged on June 20, 2025, and increased expenses associated with Busey’s larger organization and expanded branch network. Acquisition and restructuring expenses contributed $7.2 million to total noninterest expense for the three months ended September 30, 2025, compared to $1.9 million for the comparable period in 2024. Acquisition and restructuring expenses contributed $49.8 million to total noninterest expense for the nine months ended September 30, 2025, compared to $4.6 million for the comparable period in 2024.

Previous wording

Salaries, wages, and employee benefits were $78.4 million for the three months ended June 30, 2025, an 80.2% increase from the comparable period in 2024 and were $145.9 million for the six months ended June 30, 2025, a 70.5% increase from the comparable period in 2024. Acquisition and restructuring expenses were $11.6 million and $27.4 million for the three and six months ended June 30, 2025, respectively, with additional severance, retention, and stock-based compensation expenses related to the CrossFirst acquisition. Further, in connection with the CrossFirst acquisition in March and the addition of 16 banking centers, Busey’s workforce expanded. In total, Busey has added 430 full time equivalent associates over the past year, mostly as a result of the CrossFirst acquisition.

Current wording

Salaries, wages, and employee benefits were $74.1 million for the three months ended September 30, 2025, a 66.3% increase from the comparable period in 2024 and were $220.1 million for the nine months ended September 30, 2025, a 69.1% increase from the comparable period in 2024. Acquisition and restructuring expenses were $5.6 million and $33.0 million for the three and nine months ended September 30, 2025, respectively, with additional severance, retention, and stock-based compensation expenses related to the CrossFirst acquisition. Further, in connection with the CrossFirst acquisition in March and the addition of 16 banking centers, Busey’s workforce expanded, with a net addition of 412 full-time equivalent associates over the past year.

Previous wording

Data processing expense was $14.0 million for the three months ended June 30, 2025, a 97.5% increase from the comparable period in 2024. Excluding acquisition and restructuring expenses, data processing expense was $10.1 million for the three months ended June 30, 2025, a 48.9% increase from the comparable period in 2024. Data processing expense was $23.6 million for the six months ended June 30, 2025, a 72.9% increase from the comparable period in 2024. Excluding acquisition and restructuring expenses, data processing expense was $17.3 million for the six months ended June 30, 2025, a 31.2% increase from the comparable period in 2024. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.

Current wording

Data processing expense was $9.7 million for the three months ended September 30, 2025, a 40.6% increase from the comparable period in 2024. Excluding acquisition and restructuring expenses, data processing expense was $9.3 million for the three months ended September 30, 2025, a 36.2% increase from the comparable period in 2024. Data processing expense was $33.3 million for the nine months ended September 30, 2025, a 62.0% increase from the comparable period in 2024. Excluding acquisition and restructuring expenses, data processing expense was $26.6 million for the nine months ended September 30, 2025, a 32.9% increase from the comparable period in 2024. Busey has continued to make investments in technology and has also experienced inflation-driven price increases.

Previous wording

Combined, net occupancy expense of premises and furniture and equipment expense totaled $10.2 million for the three months ended June 30, 2025, a 62.9% increase from the comparable period in 2024, and $17.8 million for the six months ended June 30, 2025, a 38.7% increase from the comparable period in 2024. The CrossFirst acquisition added 16 banking centers and primary cost drivers in these expense categories include lease costs, repairs and maintenance, depreciation expense, real estate taxes, and utilities.

Current wording

Combined, net occupancy expense of premises and furniture and equipment expense totaled $10.1 million for the three months ended September 30, 2025, a 61.2% increase from the comparable period in 2024, and $27.9 million for the nine months ended September 30, 2025, a 46.1% increase from the comparable period in 2024. The CrossFirst acquisition added 16 banking centers. Further, on August 18, 2025, Busey opened its second Denver service center, located in the Cherry Creek North neighborhood. Primary cost drivers in these expense categories include lease costs, repairs and maintenance, depreciation expense, real estate taxes, and utilities.

Previous wording

Amortization of intangible assets was $4.6 million for the three months ended June 30, 2025, a 74.7% increase from the comparable period in 2024, and $7.7 million for the six months ended June 30, 2025, a 52.3% increase from the comparable period for 2024. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets with amortization of $2.4 million and $3.1 million during the three and six months ended June 30, 2025, respectively. Busey uses an accelerated amortization methodology.

Current wording

Amortization of intangible assets was $4.5 million for the three months ended September 30, 2025, a 76.9% increase from the comparable period in 2024, and $12.2 million for the nine months ended September 30, 2025, a 60.6% increase from the comparable period for 2024. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets with amortization of $2.3 million and $5.5 million during the three and nine months ended September 30, 2025, respectively. Busey uses an accelerated amortization methodology.

Previous wording

Interchange expense was $1.3 million for the three months ended June 30, 2025, a 25.2% decrease from the comparable period in 2024, and was $2.6 million for the six months ended June 30, 2025, a 21.1% decrease from the comparable period in 2024. Fluctuations in interchange expense relate to payment and volume activity at FirsTech.

Current wording

Interchange expense was $1.3 million for the three months ended September 30, 2025, a 1.2% decrease from the comparable period in 2024, and was $4.0 million for the nine months ended September 30, 2025, a 15.3% decrease from the comparable period in 2024. Fluctuations in interchange expense relate to payment and volume activity at FirsTech.

Previous wording

FDIC insurance expense was $2.4 million for the three months ended June 30, 2025, a 66.0% increase from the comparable period in 2024, and $4.6 million for the six months ended June 30, 2025, a 60.5% increase from the comparable period in 2024. Additional FDIC insurance assessments were the result of Busey’s growth in average assets in connection with the CrossFirst acquisition.

Current wording

FDIC insurance expense was $3.2 million for the three months ended September 30, 2025, a 123.0% increase from the comparable period in 2024, and $7.7 million for the nine months ended September 30, 2025, an 81.2% increase from the comparable period in 2024. Additional FDIC insurance assessments were the result of Busey’s growth in average assets in connection with the CrossFirst acquisition.

Previous wording

Other noninterest expense was $14.0 million for the three months ended June 30, 2025, a 30.7% increase from the comparable period in 2024, and was $25.3 million for the six months ended June 30, 2025, also a 30.7% increase from the comparable period in 2024. Increases in other noninterest expense are attributable to multiple items, including marketing, business development, and supplies, as well as increases in acquisition and restructuring expenses of $0.5 million and $1.0 million compared to the three and six months ended June 30, 2024, respectively.

Current wording

Other noninterest expense was $14.1 million for the three months ended September 30, 2025, a 51.6% increase from the comparable period in 2024, and was $39.4 million for the nine months ended September 30, 2025, a 37.5% increase from the comparable period in 2024. Increases in other noninterest expense are attributable to multiple items, including marketing, business development, and supplies, as well as increases in acquisition and restructuring expenses of $0.4 million and $1.4 million compared to the three and nine months ended September 30, 2024, respectively.

Previous wording

The efficiency ratio 2, which is a measure commonly used by management and the banking industry, measures the amount of expense incurred to generate a dollar of revenue. Busey’s efficiency ratio was 63.9% for the three months ended June 30, 2025, compared to 62.6% for the same period in 2024, and was 69.5% for the six months ended June 30, 2025, compared to 60.7% for the same period in 2024.

Current wording

The efficiency ratio 2, which is a measure commonly used by management and the banking industry, measures the amount of expense incurred to generate a dollar of revenue. Busey’s efficiency ratio was 58.5% for the three months ended September 30, 2025, compared to 61.8% for the same period in 2024, and was 65.4% for the nine months ended September 30, 2025, compared to 61.1% for the same period in 2024.

Previous wording

Busey’s adjusted efficiency ratio 2 was 55.3% for the three months ended June 30, 2025, compared to 60.9% for the same period in 2024, and was 56.7% for the six months ended June 30, 2025, compared to 61.6% for the same period in 2024.

Current wording

Busey’s adjusted efficiency ratio 2 was 54.9% for the three months ended September 30, 2025, compared to 60.2% for the same period in 2024, and was 56.0% for the nine months ended September 30, 2025, compared to 61.1% for the same period in 2024.

Previous wording

Busey believes that making sound and profitable loans is a necessary and desirable means of employing funds available for investment. Busey maintains lending policies and procedures designed to focus lending efforts on the types, locations, and duration of loans most appropriate for its business model and markets. While not specifically limited, Busey attempts to focus its lending on short to intermediate-term loans (0-10 years) in geographic areas within 125 miles of its lending offices. Loans originated outside of these areas are generally to existing customers of Busey Bank. Busey attempts to utilize government-assisted lending programs, such as the SBA and U.S. Department of Agriculture lending programs, when prudent. Generally, loans are collateralized by assets, primarily real estate, and guaranteed by individuals. Loans are expected to be repaid primarily from cash flows of the borrowers or from proceeds from the sale of selected assets of the borrowers.

Current wording

Busey believes that making sound and profitable loans is a necessary and desirable means of employing funds available for investment. Busey maintains lending policies and procedures designed to focus lending efforts on the types, locations, and duration of loans most appropriate for its business model and markets. While not specifically limited, Busey attempts to focus its lending on short to intermediate-term loans (0-10 years) in geographic areas within 125 miles of its lending offices. Busey seeks to utilize government-assisted lending programs, such as the SBA and U.S. Department of Agriculture lending programs, when prudent. Generally, loans are collateralized by assets, primarily real estate, and guaranteed by individuals. Loans are expected to be repaid primarily from cash flows of the borrowers or from proceeds from the sale of selected assets of the borrowers.

Previous wording

Total portfolio loans were $13.81 billion at June 30, 2025, compared to $7.70 billion at December 31, 2024. The $6.11 billion growth in the loan portfolio during the first half of 2025 was attributable to the CrossFirst acquisition. Busey remains steadfast in its conservative approach to underwriting and disciplined approach to pricing. Loan demand has been tempered, with borrowers hesitant to invest because of lingering macroeconomic uncertainty. At the same time, Busey’s commercial real estate portfolio continues to season, resulting in payoffs as properties are completed, stabilized, and refinanced to permanent markets or sold. We expect continued pressure from pay downs within our commercial real estate portfolio through the remainder of 2025.

Current wording

Total portfolio loans were $13.60 billion at September 30, 2025, compared to $7.70 billion at December 31, 2024. The $5.90 billion growth in the loan portfolio during the first nine months of 2025 was primarily attributable to the CrossFirst acquisition. Busey remains steadfast in its conservative approach to underwriting and disciplined approach to pricing. During the third quarter of 2025, the Company experienced elevated payoffs that outpaced new production momentum. Busey expects continued pressure, particularly from commercial real estate payoffs through the remainder of 2025.

Previous wording

CRE loans made up 40.3% of Busey’s total loan portfolio as of June 30, 2025, and were 25.6% owner occupied. CRE loans are made across a variety of industries, as depicted in the table below. Balances reflected in the table below do not include loan origination fees or costs, purchase accounting adjustments, SBA discounts, or negative escrow amounts.

Current wording

CRE loans comprised 39.9% of Busey’s total loan portfolio as of September 30, 2025, and were 25.7% owner occupied. CRE loans are made across a variety of industries, as depicted in the table below. Balances reflected in the table below do not include loan origination fees or costs, purchase accounting adjustments, SBA discounts, or negative escrow amounts.

Previous wording

The $1.0 million provision for loan losses recorded in the second quarter of 2025 included a release of the PCD provision of $11.8 million due to PCD loan payoffs/paydowns and non-PCD provision expense of $12.8 million to support charge-offs, to adjust for the loan portfolio mix, and as a response to economic factors. The provision for loan losses for the six months ended June 30, 2025, included $42.4 million provision expense recorded to establish an initial allowance for non-PCD loans immediately following the close of the CrossFirst acquisition in accordance with ASC 326-20-30-15.

Current wording

The $3.3 million provision reversal for loan losses recorded during the three months ended September 30, 2025, included a provision release of $7.1 million for PCD loans due to payoffs/paydowns and provision expense of $3.8 million for non-PCD loans to support charge-offs and qualitative factor adjustments. The provision for loan losses for the nine months ended September 30, 2025, included $42.4 million of provision expense recorded to establish an initial allowance for non-PCD loans immediately following the close of the CrossFirst acquisition in accordance with ASC 326-20-30-15.