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First Busey Corporation Announces 2025 First Quarter Results

LEAWOOD, Kan., April 22, 2025 (GLOBE NEWSWIRE) -- First Busey Corporation (Nasdaq: BUSE) reports first quarter results.

Busey completed the transformative acquisition of CrossFirst Bankshares, Inc. on March 1, 2025, significantly impacting first quarter results and resetting the baseline for financial performance for future quarters in a multitude of positive ways.

PARTNERSHIP WITH CROSSFIRST

Effective March听1, 2025, First Busey Corporation (鈥淏usey,鈥� 鈥淐ompany,鈥� 鈥渨e,鈥� 鈥渦s,鈥� or 鈥渙ur鈥�), the holding company for Busey Bank, completed its previously announced acquisition (the 鈥淢erger鈥�) of CrossFirst Bankshares, Inc. (鈥淐rossFirst鈥�) (NASDAQ: CFB), the holding company for CrossFirst Bank, pursuant to an Agreement and Plan of Merger, dated August听26, 2024, by and between Busey and CrossFirst (the 鈥淢erger Agreement鈥�). This partnership creates a premier commercial bank in the Midwest, Southwest, and Florida, with 78 full-service locations across 10 states鈥擜rizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas. The combined holding company will continue to operate under the First Busey Corporation name. Busey common stock will continue to trade on the Nasdaq under the 鈥淏USE鈥� stock ticker symbol.

Upon completion of the acquisition, each share of CrossFirst common stock converted to the right to receive 0.6675 of a share of Busey鈥檚 common stock, with the result that holders of Busey鈥檚 common stock owned approximately 63.5% of the combined company and holders of CrossFirst鈥檚 common stock owned approximately 36.5% of the combined company, on a fully-diluted basis. Further, upon completion of the acquisition, each share of CrossFirst preferred stock converted to the right to receive one share of Busey preferred stock.

CrossFirst Bank鈥檚 results of operations were included in Busey鈥檚 consolidated results of operations beginning March听1, 2025. Busey will operate CrossFirst Bank as a separate banking subsidiary until it is merged with and into Busey Bank, which is expected to occur on June听20, 2025. At the time of the bank merger, CrossFirst Bank locations will become banking centers of Busey Bank.

The acquisition was accretive to tangible book value, exceeding initial projections of a six-month earn back period.

Further details are included with announcing completion of the acquisition, which was filed with the U.S. Securities and Exchange Commission (the 鈥淪EC鈥�) on March听3, 2025.

FINANCIAL RESULTS

Busey鈥檚 results of operations for the first quarter of 2025 was a net loss of $(30.0)听million, or $(0.44) per diluted common share, compared to net income of $28.1 million, or $0.49 per diluted common share, for the fourth quarter of 2024, and $26.2 million, or $0.46 per diluted common share, for the first quarter of 2024. Annualized return on average assets and annualized return on average tangible common equity² were (0.82)% and (7.99)%, respectively, for the first quarter of 2025.

Busey views certain non-operating items, including acquisition-related expenses, restructuring charges, and one-time strategic events, as adjustments to net income reported under U.S. generally accepted accounting principles ("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. Non-operating pre-tax adjustments for acquisition and restructuring expenses² in the first quarter of 2025 were $26.0听million. Further, $3.1听million other noninterest expense was recorded to establish an initial allowance for Unfunded Commitments² and $42.4听million provision expense was recorded to establish an initial Allowance for Credit Losses for loans purchased without credit deterioration (鈥渘on-PCD鈥� loans) immediately following the close of the acquisition in accordance with Accounting Standards Codification 326-20-30-15. Additionally, net securities losses were $15.8听million, primarily related to the execution of a strategic balance sheet repositioning. Lastly, $4.6听million in one-time deferred tax valuation expense² was recorded in connection with the CrossFirst acquisition, which is expected to lower our effective blended state tax rate in future periods but created a negative adjustment to the carrying value of our deferred tax asset in the current period. For more information and a reconciliation of these non-GAAP measures (which are identified with the endnote labeled as 2) in tabular form, see "Non-GAAP Financial Information."

Adjusted net income², which excludes the impact of non-GAAP adjustments, was $39.9听million, or $0.57 per diluted common share, for the first quarter of 2025, compared to $30.9听million, or $0.53 per diluted common share, for the fourth quarter of 2024 and $25.7听million or $0.46 per diluted common share for the first quarter of 2024. Annualized adjusted return on average assets² and annualized adjusted return on average tangible common equity² were 1.09% and 10.64%, respectively, for the first quarter of 2025.

Pre-Provision Net Revenue²

Pre-provision net revenue² was $25.6 million for the first quarter of 2025, compared to $38.8 million for the fourth quarter of 2024 and $46.4 million for the first quarter of 2024. Pre-provision net revenue to average assets² was 0.70% for the first quarter of 2025, compared to 1.28% for the fourth quarter of 2024, and 1.55% for the first quarter of 2024.

Adjusted pre-provision net revenue² was $54.7 million for the first quarter of 2025, compared to $42.0 million for the fourth quarter of 2024 and $38.6 million for the first quarter of 2024. Adjusted pre-provision net revenue to average assets² was 1.50% for the first quarter of 2025, compared to 1.38% for the fourth quarter of 2024 and 1.29% for the first quarter of 2024.

Net Interest Income and Net Interest Margin²

Net interest income was $103.7听million in the first quarter of 2025, compared to $81.6听million in the fourth quarter of 2024 and $75.9听million in the first quarter of 2024.

Net interest margin² was 3.16% for the first quarter of 2025, compared to 2.95% for the fourth quarter of 2024 and 2.79% for the first quarter of 2024. Excluding purchase accounting accretion, adjusted net interest margin² was 3.08% for the first quarter of 2025, compared to 2.92% in the fourth quarter of 2024 and 2.78% in the first quarter of 2024.

Components of the 21听basis point听increase in net interest margin² during the first quarter of 2025, which includes approximately +12听basis points contributed by CrossFirst Bank, are as follows:

• Increased loan portfolio and held for sale loan yields contributed +36听basis points
• Increased purchase accounting accretion contributed +5听basis points
• Decreased borrowing expense contributed +3听basis points
• Decreased expense on rate swaps contributed +2听basis points
• Increased non-maturity deposit funding costs contributed -17听basis points
• Decreased cash and securities portfolio yield contributed -8听basis points
  
  

Based on our most recent Asset Liability Management Committee (鈥淎LCO鈥�) model, a +100听basis point parallel rate shock is expected to increase net interest income by 1.8% over the subsequent twelve-month period. Busey continues to evaluate and execute off-balance sheet hedging and balance sheet repositioning strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Time deposit and savings specials have provided funding flows, and we had excess earning cash during the first quarter of 2025. A portion of the acquired CrossFirst Bank securities portfolio was liquidated when the acquisition was finalized, providing additional excess cash that will allow us to unwind non-core funding. As brokered CDs mature, Busey will continue to deploy excess cash to reduce wholesale funding levels during subsequent quarters. Total deposit cost of funds increased from 1.75% during the fourth quarter of 2024 to 1.91% during the first quarter of 2025. Deposit betas increased with the higher mix of acquired indexed and wholesale deposits and a full quarter of the consolidated Company鈥檚 funding base is projected to increase total deposit cost of funds during the second quarter of 2025. With the expectation of Busey paying down non-core funding, the deposit beta will lessen during the year and is expected to normalize in the 45% to 50% beta range. Growth in higher yielding earning assets is expected to offset the increased cost of funds pressure and we project further net interest margin expansion during the second quarter of 2025.

Noninterest Income

Total noninterest income decreased by 39.7% compared to the fourth quarter of 2024 and decreased by 39.2% compared to the first quarter of 2024, primarily due to net securities losses that were recorded in connection with a strategic balance sheet repositioning.

Excluding the impact of net securities gains and losses and the gains on the sale of mortgage servicing rights, adjusted noninterest income² increased by 4.4% to $37.0听million, or 26.3% of operating revenue², during the first quarter of 2025, compared to $35.4听million, or 30.3% of operating revenue², for the fourth quarter of 2024. Compared to the first quarter of 2024, adjusted noninterest income² increased by 9.4% from $33.8听million, or 30.8% of operating revenue².

Our fee-based businesses continue to add revenue diversification. Wealth management fees, wealth management referral fees included in other noninterest income, and payment technology solutions contributed 61.1% of adjusted noninterest income² for the first quarter of 2025.

Noteworthy components of noninterest income are as follows:

• Wealth management fees increased by 3.4% compared to the fourth quarter of 2024. Compared to the first quarter of 2024 wealth management fees increased by 11.7%. Busey鈥檚 Wealth Management division ended the first quarter of 2025 with $13.68听billion in assets under care, compared to $13.83 billion at the end of the fourth quarter of 2024 and $12.76 billion at the end of the first quarter of 2024. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets and has outperformed its blended benchmark³ over the last three and five years. The Wealth Management segment reported another quarter of record high revenue for the first quarter of 2025.
• Payment technology solutions revenue decreased slightly compared the fourth quarter of 2024. Compared to the first quarter of 2024, payment technology solutions revenue decreased by 11.1% primarily due to decreases in income from electronic, online, and interactive voice response payments, partially offset by increases in lockbox and merchant services income.
• Fees for customer services increased by 2.7% compared to the fourth quarter of 2024 primarily due to increases in income from analysis charges and interchange fees, offset by lower non-sufficient funds charges. Compared to the first quarter of 2024, fees for customer services increased by 15.2% primarily due to increases in analysis charges, automated teller machine fees, and interchange fees, offset by lower non-sufficient funds charges. Increases in fees for customer services are primarily attributable to the inclusion of one month of CrossFirst鈥檚 income in our first quarter results.
• Other noninterest income increased by 14.8% compared to the fourth quarter of 2024 and by 39.1% compared to the first quarter of 2024. The increase for both periods was driven by increases in swap origination fee income, commercial loan sales gains, letter of credit fee income, and other real estate owned income, offset by decreases in venture capital income.
  
  

Operating Efficiency

Total noninterest expense increased by 47.3% compared to the fourth quarter of 2024 and increased by 62.7% compared to the first quarter of 2024. Growth in noninterest expense was primarily attributable to one-time acquisition expenses related to the CrossFirst acquisition as well as added costs for operating expenses for two banks during one month of the quarter. Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0听million. Busey anticipates a 50% rate of synergy realization in 2025 and 100% in 2026.

Adjusted noninterest expense², which excludes acquisition and restructuring expenses, amortization of intangible assets, and the provision for unfunded commitments, was $82.9听million in the first quarter of 2025, compared to $72.6听million in the fourth quarter of 2024 and $68.6听million in the first quarter of 2024. As our business grows, Busey remains focused on prudently managing our expense base and operating efficiency.

Noteworthy components of noninterest expense are as follows:

• Salaries, wages, and employee benefits expenses increased by $22.1听million compared to the fourth quarter of 2024, and by $25.5听million compared to the first quarter of 2024, of which $15.6听million and $15.8听million, respectively, was attributable to increases in non-operating expenses, with additional severance, retention, and stock-based compensation. Busey has added 501 full time equivalent associates (鈥淔TEs鈥�) over the past year, mostly as a result of acquisitions, including 437 CrossFirst Bank FTEs added in March 2025 and 46 Merchants & Manufacturers Bank FTEs added in April 2024.
• Data processing expense increased by $3.0听million compared to both the fourth quarter of 2024 and the first quarter of 2024, of which $2.3听million and $2.2听million, respectively, was attributable to increases in non-operating expenses. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.
• Professional fees increased by $4.6听million compared to the fourth quarter of 2024, of which $4.3听million was attributable to increases in non-operating expenses. Compared to the first quarter of 2024, professional fees increased by $7.3听million, of which $7.2听million was attributable to increases in non-operating expenses.
• Amortization of intangible assets increased by $0.6听million compared to the fourth quarter of 2024, and by $0.7听million compared to the first quarter of 2024. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets, which will be amortized using an accelerated amortization methodology.
• Other noninterest expense increased by $4.7听million compared to the fourth quarter of 2024, and increased by $6.5听million compared to the first quarter of 2024, of which $0.3 million and $0.5听million, respectively, resulted from increases in non-operating expenses related to acquisition and restructuring expenses. Further, $3.1听million of non-operating expenses was recorded for the Day 2 provision for unfunded commitments. Multiple expense items contributed to the remaining fluctuations in this expense category, including marketing, business development, regulatory expenses, mortgage servicing rights valuation expenses, and other real estate owned.
  
  

Busey鈥檚 efficiency ratio² was 79.3% for the first quarter of 2025, compared to 64.5% for the fourth quarter of 2024 and 58.1% for the first quarter of 2024. Our adjusted efficiency² ratio was 58.7% for the first quarter of 2025, compared to 61.8% for the fourth quarter of 2024, and 62.3% for the first quarter of 2024.

Busey鈥檚 annualized ratio of adjusted noninterest expense to average assets was 2.27% for the first quarter of 2025, compared to 2.39% for the fourth quarter of 2024 and 2.30% for the first quarter of 2024.

BALANCE SHEET STRENGTH

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1. Net balance of preferred stock ($0.001 par value), common stock ($0.001 par value), additional paid-in capital, and treasury stock.
2. See 鈥�Non-GAAP Financial Information鈥� for reconciliation.

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1. See 鈥�Non-GAAP Financial Information鈥� for reconciliation.

Busey鈥檚 financial strength is built on a long-term conservative operating approach. That focus will not change now or in the future.

Total assets were $19.46听billion as of March听31, 2025, compared to $12.05听billion as of December听31, 2024, and $11.89听billion as of March听31, 2024. Average interest-earning assets were $13.36听billion for the first quarter of 2025, compared to $11.05听billion for the fourth quarter of 2024, and $11.01听billion for the first quarter of 2024.

Portfolio Loans

We remain steadfast in our conservative approach to underwriting and our disciplined approach to pricing, particularly given our outlook for the economy in the coming quarters. Portfolio loans totaled $13.87听billion at March听31, 2025, compared to $7.70听billion at December听31, 2024, and $7.59听billion at March听31, 2024. Busey Bank鈥檚 portfolio loans grew by $133.6听million during the first quarter of 2025, with growth centered in the commercial category. In addition, as of March听31, 2024, CrossFirst Bank added $6.04听billion in loans to Busey鈥檚 loan portfolio.

Average portfolio loans were $9.84听billion for the first quarter of 2025, compared to $7.74听billion for the fourth quarter of 2024 and $7.60听billion for the first quarter of 2024.

Asset Quality

Asset quality continues to be strong. Busey Bank maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment. CrossFirst Bank鈥檚 policies are similar in nature to Busey Bank鈥檚 policies and Busey is in the process of migrating the legacy CrossFirst portfolio toward Busey Bank鈥檚 policies.

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1. Capital amounts for the first quarter of 2025 are not yet finalized and are subject to change.

Loans 30-89 days past due increased by $10.4听million compared to December听31, 2024, and increased by $11.1听million compared to March听31, 2024. Busey Bank鈥檚 loans 30-89 days past due were $6.1听million, a decrease of $2.0 million compared to December听31, 2024. CrossFirst Bank鈥檚 loans 30-89 days past due were $12.5听million as of March听31, 2025.

Non-performing loans increased by $31.5听million compared to December听31, 2024, and increased by $37.2听million compared to March听31, 2024. Busey Bank鈥檚 non-performing loans were $6.8听million, a decrease of $16.4 million compared to December听31, 2024. CrossFirst Bank鈥檚 non-performing loans were $47.9听million as of March听31, 2025. Continued disciplined credit management resulted in non-performing loans as a percentage of portfolio loans of 0.39% as of March听31, 2025, a 9听basis point increase from December听31, 2024, and a 16听basis point increase from March听31, 2024.

Non-performing assets increased by $36.2听million compared to December听31, 2024, and increased by $41.9听million compared to March听31, 2024. Busey Bank鈥檚 non-performing assets were $7.1听million, a decrease of $16.2 million compared to December听31, 2024. CrossFirst Bank鈥檚 non-performing assets were $52.4听million as of March听31, 2025. Non-performing assets represented 0.31% of total assets as of March听31, 2025, a 12听basis point increase from December听31, 2024, and a 16听basis point increase from March听31, 2024.

Classified assets increased by $105.2听million compared to December听31, 2024, and increased by $85.1听million compared to March听31, 2024. Busey Bank鈥檚 classified assets were $81.3听million, a decrease of $4.0 million compared to December听31, 2024. CrossFirst Bank鈥檚 classified assets were $109.3听million as of March听31, 2025.

The allowance for credit losses was $195.2 million as of March听31, 2025, representing 1.41% of total portfolio loans outstanding, and providing coverage of 3.57听times our non-performing loans balance. In connection with the CrossFirst acquisition, the Day听1 allowance recorded for loans that were purchased with credit deterioration (鈥淧CD鈥� loans) was $100.8听million. The Day听1 PCD allowance was recorded as an adjustment to the fair value of the PCD loans.

Net charge-offs increased by $28.6听million when compared to the fourth quarter of 2024, and by $26.2听million when compared with the first quarter of 2024. Net charge-offs include $29.6听million related to PCD loans acquired from CrossFirst Bank, which were fully reserved at acquisition and did not require recording additional provision expense.

Busey鈥檚 results for the first quarter of 2025 include $42.5听million provision expense for credit losses, which includes $42.4听million that was recorded to establish an initial allowance for credit losses on non-PCD acquired loans.

Deposits

Total deposits were $16.46听billion at March听31, 2025, compared to $9.98听billion at December听31, 2024, and $9.96听billion at March听31, 2024. Average deposits were $12.18听billion for the first quarter of 2025, compared to $10.05听billion for the fourth quarter of 2024 and $10.04听billion for the first quarter of 2024.

Core deposits² accounted for 89.7% of total deposits as of March听31, 2025. The quality of our core deposit franchise is a critical value driver of our institution. We estimated that 32% of our deposits were uninsured and uncollateralized⁴ as of March听31, 2025, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.

We have executed various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds. New certificate of deposit production in the first quarter of 2025 had a weighted average term of 7.8听months at a rate of 3.58%, which was 96听basis points below our average marginal wholesale equivalent-term funding cost during the quarter.

Borrowings

As of March听31, 2025, Busey Bank held $16.7听million of long-term Federal Home Loan Bank (鈥淔HLB鈥�) borrowings. In comparison, Busey Bank had no short-term or long-term FHLB borrowings as of December听31, 2024, or March听31, 2024. As of March听31, 2025, CrossFirst Bank held $11.2听million of short-term FHLB borrowings and $61.9听million of long-term FHLB borrowings.

In addition, associated with the CrossFirst acquisition, Busey assumed trust preferred securities with a recorded balance of $2.2听million as of March听31, 2025.

Liquidity

As of March听31, 2025, our available sources of on- and off-balance sheet liquidity⁵ totaled $8.55听billion. Furthermore, our balance sheet liquidity profile continues to be aided by the cash flows we expect from our relatively short-duration securities portfolio. Those cash flows were approximately $119.7听million in the first quarter of 2025. Cash flows from maturing securities within our portfolio are expected to be approximately $302.3听million for the remainder of 2025, with a current book yield of 2.55%, and approximately $308.1听million for 2026, with a current book yield of 2.59%.

Capital Strength

The strength of our balance sheet is also reflected in our capital foundation. Although impacted by the strategic deployment of capital for the CrossFirst acquisition, our capital ratios remain strong, and as of March听31, 2025, our regulatory capital ratios continued to provide a buffer of more than $630听million above levels required to be designated well-capitalized. Busey鈥檚 Common Equity Tier听1 ratio is estimated⁶ to be 11.99% at March听31, 2025, compared to 14.10% at December听31, 2024, and 13.45% at March听31, 2024. Our Total Capital to Risk Weighted Assets ratio is estimated⁶ to be 14.87% at March听31, 2025, compared to 18.53% at December听31, 2024, and 17.95% at March听31, 2024.

Busey鈥檚 tangible common equity² was $1.68听billion at March听31, 2025, compared to $1.02 billion at December听31, 2024, and $931.2 million at March听31, 2024. Tangible common equity² represented 8.83% of tangible assets at March听31, 2025, compared to 8.71% at December听31, 2024, and 8.07% at March听31, 2024.

Busey鈥檚 tangible book value per common share² was $18.62 at March听31, 2025, compared to $17.88 at December听31, 2024, and $16.84 at March听31, 2024, reflecting a 10.6% year-over-year increase. The ratios of tangible common equity to tangible assets² and tangible book value per common share have been impacted by the fair market valuation adjustment of Busey鈥檚 securities portfolio as a result of the current rate environment, which is reflected in the accumulated other comprehensive income (loss) component of shareholder鈥檚 equity.

Busey's strong capital levels, coupled with its earnings, have allowed the Company to provide a steady return to its stockholders through dividends. During the first quarter of 2025, we paid a dividend of $0.25 per share on Busey鈥檚 common stock, which represents a 4.2% increase from the previous quarterly dividend of $0.24 per share. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980.

During the first quarter of 2025, Busey resumed making stock repurchases under its stock repurchase plan, purchasing 220,000 shares of its common stock at a weighted average price of $21.98 per share for a total of $4.8听million. As of March听31, 2025, Busey had 1,699,275 shares remaining on its stock repurchase plan available for repurchase.

FIRST QUARTER EARNINGS INVESTOR PRESENTATION

For additional information on Busey鈥檚 financial condition and operating results, please refer to our Q1听2025 Earnings Investor Presentation furnished via Form听8鈥慘 on April听22, 2025, in connection with this earnings release.

CORPORATE PROFILE

As of March听31, 2025, First Busey Corporation (Nasdaq: BUSE) was a $19.46 billion financial holding company headquartered in Leawood, Kansas.

Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation headquartered in Champaign, Illinois, had total assets of $11.98 billion as of March听31, 2025. Busey Bank currently has 62 banking centers, with 21 in Central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis Metropolitan Statistical Area, three in Southwest Florida, and one in Indianapolis. More information about Busey Bank can be found at busey.com.

CrossFirst Bank, a wholly-owned bank subsidiary of First Busey Corporation headquartered in Leawood, Kansas, had total assets of $7.45 billion as of March听31, 2025. CrossFirst Bank currently has 16 banking centers located across Arizona, Colorado, Kansas, Missouri, New Mexico, Oklahoma, and Texas. More information about CrossFirst Bank can be found at crossfirstbank.com. It is anticipated that CrossFirst Bank will be merged with and into Busey Bank on June听20, 2025.

Through Busey鈥檚 Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $13.68听billion as of March听31, 2025. More information about Busey鈥檚 Wealth Management services can be found at busey.com/wealth-management.

Busey Bank鈥檚 wholly-owned subsidiary, FirsTech, specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions, including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.

For the fourth consecutive year, Busey was named among 2025鈥檚 America鈥檚 Best Banks by Forbes. Ranked 88th overall, Busey was one of seven banks headquartered in Illinois included on this year鈥檚 list. Busey was also named among the 2024 Best Banks to Work For by American Banker, the 2024 Best Places to Work in Money Management by Pensions and Investments, the 2024 Best Places to Work in Illinois by Daily Herald Business Ledger, the 2025 Best Places to Work in Indiana by the Indiana Chamber of Commerce, and the 2024 Best Companies to Work For in Florida by Florida Trend magazine. We are honored to be consistently recognized globally, nationally and locally for our engaged culture of integrity and commitment to community development.

NON-GAAP FINANCIAL INFORMATION

This earnings release contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey鈥檚 performance and in making business decisions, as well as for comparison to Busey鈥檚 peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring items and provide additional perspective on Busey鈥檚 performance over time.

The following tables present reconciliations between these non-GAAP measures and what management believes to be the most directly comparable GAAP financial measures.

These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates, estimated federal income tax rates, or effective tax rates, as noted with the tables below.

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1. For the three months ended March听31, 2025, the provision for unfunded commitments included Day听2 provision expense of $3.139 million recorded in connection with the CrossFirst acquisition.
2. Annualized measure.

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1. The Day听2 allowance for credit losses was recorded in connection with the CrossFirst acquisition to establish an allowance on non-PCD loans and is reflected within the provision for credit losses line on the Statement of Income.
2. The Day听2 provision for unfunded commitments was recorded in connection with the CrossFirst acquisition and is reflected within the other noninterest expense line, as a component of total noninterest expense, on the Statement of Income.
3. Tax benefits were calculated using tax rates of 25.3%, 26.8%, and 24.9% for the three months ended March听31, 2025, December听31, 2024, and March听31, 2024, respectively.
4. The deferred tax valuation adjustment was recorded in connection with the CrossFirst acquisition and relates to the expansion of Busey鈥檚 footprint into new states. The deferred tax valuation adjustment is reflected within the income taxes line on the Statement of Income.
5. Beginning in 2025, Busey revised its calculation of adjusted net income for all periods presented to include, as applicable, adjustments for net securities gains and losses, realized net gains and losses on the sale of mortgage servicing rights, and one-time deferred tax valuation adjustments. In 2024, these adjusting items were previously presented as further adjustments to adjusted net income.
6. Dilution includes shares that would have been dilutive if there had been net income during the period.
7. Annualized measure.

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1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
2. Annualized measure.

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1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
2. For the three months ended March听31, 2025, the provision for unfunded commitments included Day听2 provision expense of $3.139 million recorded in connection with the CrossFirst acquisition.
3. Beginning in 2025, Busey revised its calculation of adjusted noninterest expense and the adjusted efficiency ratio for all periods presented to include, as applicable, adjustments for the provision for unfunded commitments. In 2024, these adjustments were previously presented as adjustments for adjusted core expense and the adjusted core efficiency ratio.
4. Annualized measure.

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1. Beginning in 2025, Busey revised its calculation of tangible assets and tangible common equity for all periods presented to exclude any tax adjustment.

FORWARD-LOOKING STATEMENTS

This press release may contain 鈥渇orward-looking statements鈥� within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Busey鈥檚 financial condition, results of operations, plans, objectives, future performance, and business. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey鈥檚 management and on information currently available to management, are generally identifiable by the use of words such as 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渁nticipate,鈥� 鈥減lan,鈥� 鈥渋ntend,鈥� 鈥渆stimate,鈥� 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渨ould,鈥� 鈥渃ould,鈥� 鈥渟hould,鈥� 鈥減osition,鈥� or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and Busey undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond Busey鈥檚 ability to control or predict, could cause actual results to differ materially from those in any forward-looking statements. These factors include, among others, the following: (1)听the strength of the local, state, national, and international economies and financial markets (including effects of inflationary pressures and supply chain constraints); (2)听changes in, and the interpretation and prioritization of, local, state, and federal laws, regulations, and governmental policies (including those concerning Busey's general business); (3)听the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia鈥檚 invasion of Ukraine and the conflict in the Middle East); (4)听unexpected results of acquisitions, including the acquisition of CrossFirst, which may include the failure to realize the anticipated benefits of the acquisitions and the possibility that the transaction and integration costs may be greater than anticipated; (5)听the imposition of tariffs or other governmental policies impacting the value of products produced by Busey's commercial borrowers; (6)听new or revised accounting policies and practices as may be adopted by state and federal regulatory banking agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission, or the Public Company Accounting Oversight Board; (7)听changes in interest rates and prepayment rates of Busey鈥檚 assets (including the impact of sustained elevated interest rates); (8)听increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (9)听changes in technology and the ability to develop and maintain secure and reliable electronic systems; (10)听the loss of key executives or associates, talent shortages, and employee turnover; (11)听unexpected outcomes and costs of existing or new litigation, investigations, or other legal proceedings, inquiries, and regulatory actions involving Busey (including with respect to Busey鈥檚 Illinois franchise taxes); (12)听fluctuations in the value of securities held in Busey鈥檚 securities portfolio, including as a result of changes in interest rates; (13)听credit risk and risk from concentrations (by type of borrower, geographic area, collateral, and industry), within Busey's loan portfolio and large loans to certain borrowers (including commercial real estate loans); (14)听the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversify their exposure; (15)听the level of non-performing assets on Busey鈥檚 balance sheets; (16)听interruptions involving information technology and communications systems or third-party servicers; (17)听breaches or failures of information security controls or cybersecurity-related incidents; (18)听the economic impact on Busey and its customers of climate change, natural disasters, and exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts; (19)听the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact Busey's cost of funds; (20)听the ability to maintain an adequate level of allowance for credit losses on loans; (21)听the effectiveness of Busey鈥檚 risk management framework; and (22)听the ability of Busey to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

Additional information concerning Busey and its business, including additional factors that could materially affect Busey鈥檚 financial results, is included in Busey鈥檚 filings with the Securities and Exchange Commission.

END NOTES

INVESTOR CONTACT: Scott A. Phillips, Interim Chief Financial Officer | 239-689-7167