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, 2026, 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 2025 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, 2026, 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 2025 Annual Report.

Previous wording

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

Current wording

First Busey Corporation is an $18.56 billion financial holding company headquartered in Leawood, Kansas. First Busey’s common stock is traded on The Nasdaq Global Select Market under the symbol “BUSE,” and its depositary shares of Busey Series B Preferred Stock are traded on The Nasdaq Global Select Market under the symbol “BUSEP.”

Previous wording

Busey’s financial strength is built on a long-term conservative operating approach. The quality of Busey’s core deposit 1 franchise is a critical value driver of the institution. Busey remains substantially core deposit funded, with robust liquidity. As of June 30, 2026, Busey’s loan to deposit ratio was 87.2% and core deposits represented 93.7% of total deposits. Busey maintains 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 1 franchise is a critical value driver of the institution. Busey remains substantially core deposit funded, with robust liquidity. As of September 30, 2026, Busey’s loan-to-deposit ratio was 82.5% and core deposits represented 94.0% of total deposits. Busey maintains 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, 2026, Busey’s leverage ratio of Tier 1 capital to average assets was 11.9%, its common equity Tier 1 capital to risk weighted assets ratio was 12.5%, and its total capital to risk weighted assets ratio was 16.1%.

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, 2026, 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 12.5%, and its total capital to risk-weighted assets ratio was 16.1%.

Previous wording

Results of Busey’s operations, by operating segment, are presented below:

Current wording

Results of Busey’s operations, by operating segment, are presented in the table below. Reconciling items consist of amounts attributable to the parent company and the elimination of intercompany transactions.

Previous wording

During the six months ended June 30, 2025, Busey sold available for sale debt securities with a book value of approximately $205.6 million for a pre-tax loss of $15.5 million and related estimated tax benefit of $4.3 million, as part of a balance sheet repositioning strategy.

Current wording

During the nine months ended September 30, 2025, Busey sold available for sale debt securities with a book value of approximately $205.6 million for a pre-tax loss of $15.5 million and related estimated tax benefit of $4.3 million, as part of a balance sheet repositioning strategy.

Previous wording

Other acquisition expenses related to the acquisition of CrossFirst, which was completed on March 1, 2025. Final expenses for the acquisition of M&M were also included for 2025.

Current wording

Other acquisition expenses related to the acquisition of CrossFirst, which was completed on March 1, 2025. Final expenses for the acquisition of M&M were also included in the nine months ended September 30, 2025.

Previous wording

Interest income includes tax-equivalent adjustments of $0.8 million for both the three months ended June 30, 2026, and the three months ended June 30, 2025.

Current wording

Interest income includes tax-equivalent adjustments of $0.9 million for the three months ended September 30, 2026, and $0.8 million for the three months ended September 30, 2025.

Previous wording

Includes short-term and long-term borrowings. Interest expense includes non-usage fees on a revolving loan.

Current wording

Includes short-term and long-term borrowings. Interest expense includes non-usage fees on a revolving line of credit.

Previous wording

Interest income includes tax-equivalent adjustments of $1.7 million and $1.3 million for the six months ended June 30, 2026 and 2025, respectively.

Current wording

Interest income includes tax-equivalent adjustments of $2.6 million for the nine months ended September 30, 2026, and $2.1 million for the nine months ended September 30, 2025, respectively.

Previous wording

Includes short-term and long-term borrowings. Interest expense includes non-usage fees on a revolving loan.

Current wording

Includes short-term and long-term borrowings. Interest expense includes non-usage fees on a revolving line of credit.

Previous wording

Management attempts to mitigate the effects of an unpredictable interest-rate environment through effective portfolio management, prudent loan underwriting and pricing discipline, and operational efficiencies. For a description of accounting policies underlying the recognition of interest income and expense, refer to the Notes to Consolidated Financial Statements in Busey’s 2025 Annual Report.

Current wording

Management attempts to mitigate the effects of a shifting interest-rate environment through effective portfolio management, prudent loan underwriting and pricing discipline, and operational efficiencies. For a description of accounting policies underlying the recognition of interest income and expense, refer to the Notes to Consolidated Financial Statements in Busey’s 2025 Annual Report.

Previous wording

Total noninterest income provided $44.3 million for the three months ended June 30, 2026, a decrease of 1.2% from the comparable period in 2025, resulting in part from declines in unrealized net gains on securities, which were elevated in the second quarter of 2025 due to Busey’s equity ownership in a financial institution that was the target of an announced acquisition at a significant market premium. Total noninterest income provided $86.6 million for the six months ended June 30, 2026, an increase of 31.0% from the comparable period in 2025. Whereas the six months ended June 30, 2026, included six months of income as a larger organization after the acquisition of CrossFirst, the six months ended June 30, 2025, included only four months of income from CrossFirst following the acquisition, which was completed on March 1, 2025. The six months ended June 30, 2025, also included $15.5 million in net securities losses that were recorded in connection with a strategic balance sheet repositioning.

Current wording

Total noninterest income provided $40.4 million for the three months ended September 30, 2026, a decrease of 1.9% from the comparable period in 2025, primarily due to $2.9 million in declines from other noninterest income, partially offset by $2.7 million in increases from wealth management fees. Total noninterest income provided $127.0 million for the nine months ended September 30, 2026, an increase of 18.4% from the comparable period in 2025. Whereas the nine months ended September 30, 2026, included nine months of income as a larger organization after the acquisition of CrossFirst, the nine months ended September 30, 2025, included only seven months of income from CrossFirst following the acquisition, which was completed on March 1, 2025. The nine months ended September 30, 2025, also included $15.5 million in net securities losses that were recorded in connection with a strategic balance sheet repositioning, which was partially offset by unrealized net gains on securities, which were elevated in 2025 due to Busey’s approximately 3% equity ownership in a financial institution that was the target of an announced acquisition at a significant market premium.

Previous wording

Wealth management fees provided income of $20.0 million for the three months ended June 30, 2026, representing an increase of 19.1% from the comparable period in 2025, and provided income of $39.4 million for the six months ended June 30, 2026, representing an increase of 15.3% from the comparable period for 2025, primarily due to increases in trust fee income. Busey’s Wealth Management division ended the second quarter of 2026 with $16.51 billion in assets under care, an increase of 17.0% compared to the balance on June 30, 2025. 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 provided income of $19.8 million for the three months ended September 30, 2026, representing an increase of 15.5% from the comparable period in 2025, and provided income of $59.2 million for the nine months ended September 30, 2026, representing an increase of 15.3% from the comparable period for 2025, primarily due to increases in trust fee income. Busey’s Wealth Management division ended the third quarter of 2026 with $16.72 billion in assets under care, an increase of 11.8% compared to the balance on September 30, 2025. 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 income is derived from Busey’s payment processing company, FirsTech. Payment technology solutions provided income of $5.0 million for the three months ended June 30, 2026, representing an increase of 0.2% from the comparable period in 2025, and provided income of $10.0 million for the six months ended June 30, 2026, representing an increase of 0.2% from the comparable period in 2025, primarily due to increases in income from lockbox and merchant processing services.

Current wording

Payment technology solutions income is derived from Busey’s payment processing company, FirsTech. Payment technology solutions provided income of $5.1 million for the three months ended September 30, 2026, representing an increase of 0.3% from the comparable period in 2025, and provided income of $15.2 million for the nine months ended September 30, 2026, representing an increase of 0.2% from the comparable period in 2025, primarily due to increases in income from lockbox and merchant processing services.

Previous wording

Treasury management services, which consist primarily of business analysis and domestic wire transfers on commercial accounts, provided income of $4.8 million for the three months ended June 30, 2026, representing an increase of 4.8% from the comparable period in 2025, and provided income of $9.2 million for the six months ended June 30, 2026, representing an increase of 24.8% from the comparable period in 2025. Growth in treasury management services was primarily attributable to increased income from business analysis.

Current wording

Treasury management services, which consist primarily of business analysis and domestic wire transfers on commercial accounts, provided income of $4.8 million for the three months ended September 30, 2026, representing an increase of 14.1% from the comparable period in 2025, and provided income of $14.1 million for the nine months ended September 30, 2026, representing an increase of 20.9% from the comparable period in 2025. Growth in treasury management services was primarily attributable to increased income from business analysis.

Previous wording

Capital markets income, which consists primarily of swap origination fees, foreign wire transfer fees on commercial accounts, syndication fees, and letter of credit fees, provided income of $1.9 million for the three months ended June 30, 2026, representing an increase of 49.2% from the comparable period in 2025, primarily due to increases in income from swap origination fees and letter of credit fees. Capital markets income provided $4.2 million for the six months ended June 30, 2026, representing an increase of 64.5% from the comparable period in 2025, primarily due to increases in income from swap origination fees and syndication fees.

Current wording

Capital markets income, which consists primarily of swap origination fees, foreign wire transfer fees on commercial accounts, syndication fees, and letter of credit fees, provided income of $1.5 million for the three months ended September 30, 2026, representing a decrease of 24.0% from the comparable period in 2025, primarily due to decreases in income from swap origination fees and syndication fees, which are tied to loan production, and to an extent is impacted by volatility of interest rates. Capital markets income provided $5.7 million for the nine months ended September 30, 2026, representing an increase of 26.6% from the comparable period in 2025, primarily due to increases in income from syndication fees and letter of credit fees.

Previous wording

Card services and ATM fees, which include both commercial and consumer accounts, provided income of $4.8 million for the three months ended June 30, 2026, representing a decrease of 1.4% from the comparable period in 2025, and provided income of $9.5 million for the six months ended June 30, 2026, representing an increase of 10.1% from the comparable period in 2025, primarily due to fluctuations in income from interchange fees.

Current wording

Card services and ATM fees, which include both commercial and consumer accounts, provided income of $4.7 million for the three months ended September 30, 2026, representing a decrease of 1.4% from the comparable period in 2025, primarily due to declines in ATM fees. Card services and ATM fees provided income of $14.2 million for the nine months ended September 30, 2026, representing an increase of 6.0% from the comparable period in 2025, primarily due to income from interchange fees.

Previous wording

Other service charges on deposit accounts provided income of $1.4 million for the three months ended June 30, 2026, representing a decrease of 7.0% from the comparable period in 2025, and provided income of $2.9 million for the six months ended June 30, 2026, representing a decrease of 4.4% from the comparable period in 2025. Declines were largely related to lower non-sufficient fund charges.

Current wording

Other service charges on deposit accounts provided income of $1.4 million for the three months ended September 30, 2026, representing a decrease of 15.8% from the comparable period in 2025, and provided income of $4.3 million for the nine months ended September 30, 2026, representing a decrease of 8.3% from the comparable period in 2025. Declines were largely related to lower non-sufficient fund charges.

Previous wording

Income on bank owned life insurance provided $1.6 million for the three months ended June 30, 2026, representing a decrease of 6.2% from the comparable period in 2025. The decline was attributable to a decrease of $0.1 million in earnings on death proceeds, partially offset by an immaterial increase on the cash surrender value of the policies. Income on bank owned life insurance provided $3.3 million for the six months ended June 30, 2026, representing an increase of 1.9% from the comparable period in 2025, as a result of an increase of over $0.4 million on the cash surrender value of the policies, largely offset by a decrease of nearly $0.4 million in earnings on death proceeds.

Current wording

Income on bank owned life insurance provided $1.7 million for the three months ended September 30, 2026, representing an increase of 2.2% from the comparable period in 2025, due to earnings on the cash surrender value of the policies. Income on bank owned life insurance provided $4.9 million for the nine months ended September 30, 2026, representing an increase of 2.0% from the comparable period in 2025, as a result of an increase of over $0.5 million on the cash surrender value of the policies, largely offset by a decrease of nearly $0.4 million in earnings on death proceeds.

Previous wording

Net securities gains of $2.4 million were recognized during the three months ended June 30, 2026, representing a decrease of 59.2% from net securities gains recognized during the comparable period in 2025, as a result of declines in unrealized net gains on securities, which were elevated in the second quarter of 2025 due to Busey’s approximately 3% equity ownership in a financial institution that was the target of an announced acquisition at a significant market premium. Net securities gains of $1.5 million were recognized during the six months ended June 30, 2026, representing an increase of 115.4% over net securities losses recognized during the comparable period in 2025. Losses were realized during the six months ended June 30, 2025, in connection with a strategic balance sheet repositioning completed during the first quarter of 2025.

Current wording

Net securities losses of $0.7 million recognized during the three months ended September 30, 2026, exceeded net securities losses of $0.3 million recognized during the comparable period in 2025. Net securities gains of $0.8 million were recognized during the nine months ended September 30, 2026, compared to net securities losses of $10.1 million that were recognized during the nine months ended September 30, 2025. Losses in 2025 were realized in connection with a strategic balance sheet repositioning completed during the first quarter of 2025, which was partially offset by unrealized net gains on securities, which were elevated in the second quarter of 2025 due to Busey’s approximately 3% equity ownership in a financial institution that was the target of an announced acquisition at a significant market premium.

Previous wording

Other noninterest income provided $2.4 million for the three months ended June 30, 2026, representing a decrease of 24.3% from the comparable period in 2025, and provided $6.6 million for the six months ended June 30, 2026, representing a decrease of 4.6% from the comparable period in 2025. Decreases were primarily attributable to fluctuations in income recognized on private equity investments and mortgage revenue.

Current wording

Other noninterest income provided $2.1 million for the three months ended September 30, 2026, representing a decrease of 58.0% from the comparable period in 2025, and provided $8.7 million for the nine months ended September 30, 2026, representing a decrease of 27.1% from the comparable period in 2025. Decreases were primarily attributable to fluctuations in income recognized on private equity investments and mortgage revenue. Other noninterest income was also impacted by a $0.7 million LOCOM adjustment recorded in the third quarter of 2026 in connection with the repositioning of a pool of lender finance loans to held for sale as part of our ongoing portfolio management efforts.

Previous wording

Total noninterest expense was $112.6 million for the three months ended June 30, 2026, representing a decrease of 11.9% from the comparable period in 2025. Excluding acquisition and restructuring expenses, adjusted noninterest expense 2 totaled $109.5 million for the three months ended June 30, 2026, representing a decrease of 1.5% from the comparable period in 2025. Declines were primarily attributable to reductions in salaries and employee benefits and data processing. Total noninterest expense was $242.2 million for the six months ended June 30, 2026, representing an increase of 1.0% from the comparable period in 2025. Excluding acquisition and restructuring expenses, adjusted noninterest expense totaled $222.3 million for the six months ended June 30, 2026, representing an increase of 12.7% from the comparable period in 2025. Growth in noninterest expense was primarily attributable to increased expenses associated with Busey’s larger organization and expanded branch network, which affected the full first half of 2026, but only four months of the first half of 2025 following the acquisition of CrossFirst on March 1, 2025.

Current wording

Total noninterest expense was $111.4 million for the three months ended September 30, 2026, representing a decrease of 7.2% from the comparable period in 2025. Excluding acquisition and restructuring expenses, adjusted noninterest expense 2 totaled $110.3 million for the three months ended September 30, 2026, representing a decline of 2.2% from the comparable period in 2025. Declines were primarily attributable to reductions in salaries and employee benefits and FDIC insurance, partially offset by an increase in other noninterest expense.

Previous wording

Salaries and employee benefits totaled $67.7 million for the three months ended June 30, 2026, representing a decrease of 13.6% 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, these expenses totaled $65.6 million for the three months ended June 30, 2026, representing a decrease of 1.8% from the comparable period in 2025. Busey’s associate base declined by 117 full-time equivalent associates, from 1,950 at June 30, 2025 to 1,833 at June 30, 2026. Salaries and employee benefits totaled $152.9 million for the six months ended June 30, 2026, representing an increase of 4.8% from the comparable period in 2025. Excluding acquisition and restructuring expenses, these expenses totaled $134.7 million for the six months ended June 30, 2026, representing an increase of 13.7% from the comparable period in 2025. Busey’s associate base and footprint broadened in connection with the CrossFirst acquisition, which was completed March 1, 2025, affecting four months during the first half of 2025 compared to six months during the first half of 2026.

Current wording

Salaries and employee benefits totaled $66.4 million for the three months ended September 30, 2026, representing a decrease of 10.4% 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, these expenses totaled $65.7 million for the three months ended September 30, 2026, representing a decrease of 4.1% from the comparable period in 2025, resulting primarily from declines in salaries and bonus expense. Salaries and employee benefits totaled $219.3 million for the nine months ended September 30, 2026, representing a decrease of 0.3% from the comparable period in 2025. Excluding acquisition and restructuring expenses, these expenses totaled $200.4 million for the nine months ended September 30, 2026, representing an increase of 7.2% from the comparable period in 2025, due to increases in expense for salaries and incentive compensation.

Previous wording

Data processing expense totaled $8.9 million for the three months ended June 30, 2026, representing a decrease of 36.8% from the comparable period in 2025. Excluding acquisition and restructuring expenses, data processing expense totaled $8.9 million for the three months ended June 30, 2026, representing a decrease of 11.8% from the comparable period in 2025. Data processing expense totaled $18.7 million for the six months ended June 30, 2026, representing a decrease of 20.6% from the comparable period in 2025. Excluding acquisition and restructuring expenses, data processing expense totaled $18.7 million for the six months ended June 30, 2026, representing an increase of 7.6% from the comparable period in 2025. Increases were primarily attributable to Company-wide investments in technology enhancements, as well as inflation-driven price increases.

Current wording

Data processing expense totaled $9.4 million for the three months ended September 30, 2026, and $28.2 million for the nine months ended September 30, 2026, representing decreases of 2.9% and 15.4%, respectively, from the comparable periods in 2025. Excluding acquisition and restructuring expenses, data processing expense increased by $0.1 million, or 1.6%, for the three months ended September 30, 2026, and increased by $1.5 million, or 5.5% for the nine months ended September 30, 2026, when compared to the same periods in 2025. Increases were primarily attributable to company-wide investments in technology enhancements, as well as 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, 2026, representing a decrease of 0.5% from the comparable period in 2025. Combined, net occupancy expense of premises and furniture and equipment expense totaled $20.0 million for the six months ended June 30, 2026, representing an increase of 12.5% 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 for the six months ended June 30, 2026, over the comparable period in 2025, resulted primarily from the addition of banking centers assumed in the CrossFirst acquisition, as well as new banking centers opened in 2025 and 2026.

Current wording

Combined, net occupancy expense of premises and furniture and equipment expense totaled $10.5 million for the three months ended September 30, 2026, and $30.5 million for the nine months ended September 30, 2026, representing increases of 3.8% and 9.4%, respectively, from the comparable periods in 2025. Increases were driven by expense growth in lease costs and depreciation expense, resulting primarily from the addition of banking centers assumed in the CrossFirst acquisition, as well as new banking centers opened in 2025 and 2026.

Previous wording

Amortization of intangible assets totaled $4.2 million for the three months ended June 30, 2026, representing a decrease of 7.8% from the comparable period in 2025, and totaled $8.5 million for the six months ended June 30, 2026, representing an increase of 11.0% from the comparable period for 2025. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets. Busey uses an accelerated amortization methodology.

Current wording

Amortization of intangible assets totaled $4.2 million for the three months ended September 30, 2026, representing a decrease of 7.9% from the comparable period in 2025, and totaled $12.7 million for the nine months ended September 30, 2026, representing an increase of 4.0% from the comparable period for 2025. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets. Busey uses an accelerated amortization methodology.

Previous wording

Interchange expense totaled $1.1 million for the three months ended June 30, 2026, representing a decrease of 15.5% from the comparable period in 2025, and totaled $2.2 million for the six months ended June 30, 2026, representing a decrease of 16.2% from the comparable period in 2025. Fluctuations in interchange expense relate to payment and volume activity at FirsTech.

Current wording

Interchange expense totaled $1.2 million for the three months ended September 30, 2026, representing a decrease of 13.5% from the comparable period in 2025, and totaled $3.4 million for the nine months ended September 30, 2026, representing a decrease of 15.3% from the comparable period in 2025. Fluctuations in interchange expense relate to payment and volume activity at FirsTech.

Previous wording

FDIC insurance expense totaled $2.3 million for the three months ended June 30, 2026, representing a decrease of 3.1% from the comparable period in 2025, and totaled $4.8 million for the six months ended June 30, 2026, representing an increase of 4.6% from the comparable period in 2025.

Current wording

FDIC insurance expense totaled $1.3 million for the three months ended September 30, 2026, representing a decrease of 59.0% from the comparable period in 2025, and totaled $6.1 million for the nine months ended September 30, 2026, representing a decrease of 21.3% from the comparable period in 2025. FDIC insurance costs declined as a result of prior-period adjustments.

Previous wording

Other noninterest expense totaled $15.2 million for the three months ended June 30, 2026, representing an increase of 8.3% from the comparable period in 2025. Excluding acquisition and restructuring expenses, these expenses totaled $14.8 million for the three months ended June 30, 2026, representing an increase of 11.7% from the comparable period in 2025. Other noninterest expense totaled $28.7 million for the six months ended June 30, 2026, representing an increase of 13.5% from the comparable period in 2025. Excluding acquisition and restructuring expenses, these expenses totaled $27.9 million for the six months ended June 30, 2026, representing an increase of 16.6% from the comparable period in 2025. Significant drivers of the changes in other noninterest expense included marketing, business development, and card service fees.

Current wording

Other noninterest expense totaled $15.9 million for the three months ended September 30, 2026, representing an increase of 12.8% from the comparable period in 2025. Excluding acquisition and restructuring expenses, these expenses totaled $15.5 million for the three months ended September 30, 2026, representing an increase of 16.2% from the comparable period in 2025. Other noninterest expense totaled $44.6 million for the nine months ended September 30, 2026, representing an increase of 13.3% from the comparable period in 2025. Excluding acquisition and restructuring expenses, these expenses totaled $43.5 million for the nine months ended September 30, 2026, representing an increase of 16.5% from the comparable period in 2025. Significant drivers of the changes in other noninterest expense included marketing, business development, and card service fees.

Previous wording

The efficiency ratio 3, 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 54.0% for the three months ended June 30, 2026, compared to 55.3% for the same period in 2025, and was 54.4% for the six months ended June 30, 2026, compared to 56.7% for the same period in 2025.

Current wording

The efficiency ratio 3, 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 54.4% for the three months ended September 30, 2026, compared to 54.9% for the same period in 2025, and was 54.4% for the nine months ended September 30, 2026, compared to 56.0% for the same period in 2025.

Previous wording

Busey’s effective income tax rate was 22.9% for the three months ended June 30, 2026, and 22.3% for the six months ended June 30, 2026. Busey’s effective income tax rates were lower than the combined federal and state statutory rate of approximately 26.0% primarily as a result of investments in federal transferrable income tax credits, tax exempt interest income, apportionment changes, and discrete adjustments related to equity award vestings. Busey continues to monitor evolving federal and state tax legislation and its potential impact on operations on an ongoing basis. As of June 30, 2026, Busey was under examination by the Illinois Department of Revenue for M&M’s tax filings for the tax years 2022 and 2023.

Current wording

Busey’s effective income tax rate was 23.0% for the three months ended September 30, 2026, and 22.5% for the nine months ended September 30, 2026. Busey’s effective income tax rates were lower than the combined federal and state statutory rate of approximately 26.0% primarily as a result of investments in federal transferrable income tax credits, tax exempt interest income, apportionment changes, and discrete adjustments related to equity award vestings. Busey continues to monitor evolving federal and state tax legislation and its potential impact on operations on an ongoing basis.

Previous wording

Continuing heavy payoff headwinds contributed to anticipated declines in portfolio loan balances during the six months ended June 30, 2026.

Current wording

Continuing heavy payoff headwinds contributed to anticipated declines in portfolio loan balances during the nine months ended September 30, 2026.

Previous wording

CRE loans comprised 41.3% of Busey’s total loan portfolio as of June 30, 2026, and CRE properties were 26.3% owner occupied. Owner occupied commercial real estate is generally dependent on the performance of the borrowers’ businesses, whereas non-owner occupied commercial real estate is generally reliant on property cash flows generated by third-party tenants.

Current wording

CRE loans comprised 41.0% of Busey’s total loan portfolio as of September 30, 2026, and CRE properties were 26.6% owner occupied. Owner-occupied CRE is generally dependent on the performance of the borrowers’ businesses, whereas non-owner-occupied CRE is generally reliant on property cash flows generated by third-party tenants.

Previous wording

The six months ended June 30, 2025, included $42.4 million of provision for loan losses 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 nine months ended September 30, 2025, included $42.4 million of provision for loan losses 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.

Previous wording

Non-performing assets, which include non-performing loans, OREO, and other repossessed assets, increased to $70.3 million as of June 30, 2026, compared to $58.1 million as of December 31, 2025. Non-performing assets represented 0.39% of total assets as of June 30, 2026, compared to 0.32% as of December 31, 2025. The ACL was equal to 2.34 times the balance of non-performing assets as of June 30, 2026, compared to 2.99 times the balance of non-performing assets as of December 31, 2025.

Current wording

Non-performing assets, which include non-performing loans, OREO, and other repossessed assets, increased to $83.6 million as of September 30, 2026, compared to $58.1 million as of December 31, 2025. Non-performing assets represented 0.45% of total assets as of September 30, 2026, compared to 0.32% as of December 31, 2025. The ACL was equal to 1.96 times the balance of non-performing assets as of September 30, 2026, compared to 2.99 times the balance of non-performing assets as of December 31, 2025.

Previous wording

Classified assets, which include non-performing assets and substandard loans, increased to $226.0 million as of June 30, 2026, compared to $174.5 million as of December 31, 2025. Classified assets represented 9.69% of the Bank’s Tier 1 capital and ACL at June 30, 2026, compared to 7.51% at December 31, 2025.

Current wording

Classified assets, which include non-performing assets and substandard loans, increased to $244.9 million as of September 30, 2026, compared to $174.5 million as of December 31, 2025. Classified assets represented 10.61% of the Bank’s Tier 1 capital and ACL at September 30, 2026, compared to 7.51% at December 31, 2025.

Previous wording

Potential problem loans are loans classified as substandard that are not individually evaluated, non-accrual, or 90+ days past due, but where current information indicates that the borrower may not be able to comply with loan repayment terms. Management assesses the potential for loss on such loans and considers the effect of any potential loss in determining its provision for expected credit losses. Potential problem loans increased to $155.7 million, or 1.2% of portfolio loans, as of June 30, 2026, compared to $116.4 million, or 0.9% of portfolio loans, as of December 31, 2025. Management continues to monitor these loans and work with the borrowers on restructurings, guarantees, additional collateral, or other planned actions. As of June 30, 2026, management identified no other loans that represent or result from trends or uncertainties that would be expected to materially impact future operating results, liquidity, or capital resources.

Current wording

Potential problem loans are loans classified as substandard that are not individually evaluated, non-accrual, or 90+ days past due, but where current information indicates that the borrower may not be able to comply with loan repayment terms. Management assesses the potential for loss on such loans and considers the effect of any potential loss in determining its provision for expected credit losses. Potential problem loans increased to $161.3 million, or 1.3% of portfolio loans, as of September 30, 2026, compared to $116.4 million, or 0.9% of portfolio loans, as of December 31, 2025. Management continues to monitor these loans and work with the borrowers on restructurings, guarantees, additional collateral, or other planned actions. As of September 30, 2026, management identified no other loans that represent or result from trends or uncertainties that would be expected to materially impact future operating results, liquidity, or capital resources.

Previous wording

Total deposits increased by 1.5% to $15.13 billion as of June 30, 2026, compared to $14.91 billion as of December 31, 2025. Busey focuses on deepening its customer relationships to maintain and protect its strong core deposit 4 franchise. Core deposits include non-brokered transaction accounts, money market and savings deposit accounts, and time deposits of $250,000 or less. Core deposits represented 93.7% of total deposits as of June 30, 2026.

Current wording

Total deposits increased by 4.2% to $15.54 billion as of September 30, 2026, compared to $14.91 billion as of December 31, 2025. Busey focuses on deepening its customer relationships to maintain and protect its strong core deposit 4 franchise. Core deposits include non-brokered transaction accounts, money market and savings deposit accounts, and time deposits of $250,000 or less. Core deposits represented 94.0% of total deposits as of September 30, 2026.

Previous wording

Deposits are federally insured up to the FDIC insurance limit of $250,000. When a portion of a deposit account exceeds the FDIC insurance limit, that portion is uninsured. Estimated uninsured deposits were $6.52 billion, or 43% of total deposits, as of June 30, 2026, compared to $6.46 billion, or 43% of total deposits, as of December 31, 2025. Excluding intercompany accounts, fully collateralized accounts (including preferred deposits), and pass-through accounts where clients have deposit insurance at the correspondent financial institution, the portion of Busey’s deposit base that was uninsured and not otherwise collateralized was estimated to be $5.30 billion, or 35% of total deposits, as of June 30, 2026, compared to $5.58 billion, or 37% of total deposits, as of December 31, 2025.

Current wording

Deposits are federally insured up to the FDIC insurance limit of $250,000. When a portion of a deposit account exceeds the FDIC insurance limit, that portion is uninsured. Estimated uninsured deposits were $6.84 billion, or 44% of total deposits, as of September 30, 2026, compared to $6.46 billion, or 43% of total deposits, as of December 31, 2025. Excluding intercompany accounts, fully collateralized accounts (including preferred deposits), and pass-through accounts where clients have deposit insurance at the correspondent financial institution, the portion of Busey’s deposit base that was uninsured and not otherwise collateralized was estimated to be $5.54 billion, or 36% of total deposits, as of September 30, 2026, compared to $5.58 billion, or 37% of total deposits, as of December 31, 2025.