FIRST BUSEY CORP /NV/

Changes in noninterest expense are summarized in the table below:

1. Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments from other noninterest expense to the provision for credit losses.

2. The efficiency ratio is a non-GAAP financial measure. For a reconciliation of non-GAAP measures to the most directly comparable financial GAAP measures, see“Non-GAAP Financial Information” included in this MD&A.

Total noninterest expense amounted to $129.5 million for the three months ended March 31, 2026, representing an increase of 15.6% from the comparable period in 2025, with the increases primarily attributable to increased salaries, wages, and employee benefits and other noninterest expense, partially offset by declines in professional fees.

Salaries, wages, and employee benefits totaled $85.2 million for the three months ended March 31, 2026, representing an increase of 26.1% from the comparable period in 2025. Excluding acquisition and restructuring expenses, which include severance, retention, and stock-based compensation expenses related to the CrossFirst acquisition, salaries, wages, and employee benefits totaled $69.1 million for the three months ended March 31, 2026, representing an increase of 33.7% from the comparable period in 2025. Busey’s associate base and footprint broadened in connection with the CrossFirst acquisition, which was completed on March 1, 2025, affecting one month of the first quarter of 2025 and all three months of the first quarter of 2026.

Data processing expense totaled $9.9 million for the three months ended March 31, 2026, representing an increase of 3.0% from the comparable period in 2025. Increases were primarily attributable to Company-wide investments in technology enhancements, as well as inflation-driven price increases.

Combined, net occupancy expense of premises and furniture and equipment expense totaled $9.8 million for the three months ended March 31, 2026, representing an increase of 30.3% from the comparable period in 2025. Primary cost drivers in these expense categories include lease costs, repairs and maintenance, depreciation expense, real estate taxes, and utilities. Expense growth resulted primarily from the addition of banking centers assumed in the CrossFirst acquisition, as well as new banking centers opened in 2025 and the first quarter of 2026.

Professional fees totaled $3.2 million for the three months ended March 31, 2026, representing a decrease of 65.9% from the comparable period in 2025, primarily as a result of increases in professional fees to execute the CrossFirst acquisition. Excluding acquisition and restructuring expenses, professional fees totaled $3.1 million for the three months ended March 31, 2026, representing an increase of 40.7% from the comparable period in 2025, due to increases in consulting costs and audit and accounting costs, partially offset by declines in legal costs.

Amortization of intangible assets totaled $4.3 million for the three months ended March 31, 2026, representing an increase of 39.2% from the comparable period for 2025. The CrossFirst acquisition added $81.8 million of finite-lived intangible assets. Busey uses an accelerated amortization methodology.

Interchange expense totaled $1.1 million for the three months ended March 31, 2026, representing a decrease of 16.9% from the comparable period in 2025. Fluctuations in interchange expense relate to payment and volume activity at FirsTech.

FDIC insurance expense totaled $2.5 million for the three months ended March 31, 2026, representing an increase of 13.1% from the comparable period in 2025. Additional FDIC insurance assessments were the result of Busey’s growth in average assets in connection with the CrossFirst acquisition.

Other noninterest expense totaled $13.5 million for the three months ended March 31, 2026, representing an increase of 20.0% from the comparable period in 2025. Significant drivers of the increase included business development costs, software amortization, and loan expenses, impacted by the timing of the CrossFirst acquisition.