FIRST BUSEY CORP /NV/

Changes in noninterest expense are summarized as follows:

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

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

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.

Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0 million. Busey anticipates a 50% rate of synergy realization in 2025 and 100% in 2026.

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.

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.

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.

Professional fees were $2.9 million for the three months ended September 30, 2025, a 6.0% decrease from the comparable period in 2024. Excluding acquisition and restructuring expenses of $0.4 million and $1.4 million for the three months ended September 30, 2025 and 2024, respectively, professional fees for the three months ended September 30, 2025, were 47.3% higher than the comparable period in 2024. Professional fees were $15.3 million for the nine months ended September 30, 2025, a 94.7% increase from the comparable period in 2024. Excluding acquisition and restructuring expenses of $8.0 million and $1.9 million for the nine months ended September 30, 2025 and 2024, respectively, professional fees for the nine months ended September 30, 2025, were 23.3%, higher than the comparable period in 2024. Changes in professional fees were primarily related to legal, audit and accounting, and consulting expenses.

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.

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.

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.

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.

Efficiency Ratio

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.

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.

Taxes

Busey’s effective income tax rate of 26.1% for the three months ended September 30, 2025, aligning with a combined federal and state statutory rate of approximately 26%. Busey’s effective income tax rate of 31.7% for the nine months ended September 30, 2025, was impacted by the remeasurement of deferred tax assets acquired in the CrossFirst acquisition, discrete adjustments related to equity award vestings, and other non-recurring adjustments.

Busey continues to monitor evolving federal and state tax legislation and its potential impact on operations on an ongoing basis. As of September 30, 2025, Busey Bank was under examination by the Florida Department of Revenue for its 2020 to 2022 corporate income tax filings and by the Illinois Department of Revenue for M&M’s tax filings for the tax years 2022 and 2023.

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.