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First Busey Corporation Announces 2025 Second Quarter Earnings

LEAWOOD, Kan., July 22, 2025 (GLOBE NEWSWIRE) -- First Busey Corporation (Nasdaq: BUSE) Announces 2025 Second Quarter Earnings.

FINANCIAL RESULTS

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1. Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense.

Following the acquisition of CrossFirst Bankshares, Inc. (鈥淐rossFirst鈥�) and its subsidiary CrossFirst Bank, by First Busey Corporation, the holding company for Busey Bank, in the first quarter of 2025, CrossFirst Bank was merged with and into Busey Bank (the 鈥淏ank Merger鈥�) on June 20, 2025. At the time of the Bank Merger, CrossFirst Bank banking centers became banking centers of Busey Bank. Throughout this document, we refer to First Busey Corporation, together with its consolidated subsidiaries, as 鈥淏usey,鈥� the 鈥淐ompany,鈥� 鈥渨e,鈥� 鈥渦s,鈥� or 鈥渙ur.鈥�

Busey鈥檚 net income for the second quarter of 2025 was $47.4听million, or $0.52 per diluted common share, compared to a net loss of $30.0 million, or $0.44 per diluted common share, for the first quarter of 2025, and net income of $27.4 million, or $0.47 per diluted common share, for the second quarter of 2024. Annualized return on average assets and annualized return on average tangible common equity² were 1.00% and 11.24%, respectively, for the second quarter of 2025. The second quarter of 2025 represented the first full quarter in which the CrossFirst acquisition contributed to Busey鈥檚 financial results.

Busey views certain non-operating items, including acquisition-related expenses, restructuring charges, and nonrecurring 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 second quarter of 2025 were $16.6听million, with an additional $4.0听million adjustment to the initial provision for unfunded commitments resulting from the adoption of a new Current Expected Credit Losses (鈥淐ECL鈥�) model. Further, net securities gains were $6.0听million, almost entirely related to unrealized gains on Busey鈥檚 approximately 3% equity ownership of a financial institution that was the target of an announced acquisition at a significant market premium. For more information and a reconciliation of these non-GAAP measures (which are identified with the End Note labeled as 2) in tabular form, see "Non-GAAP Financial Information" beginning on page 13.

Adjusted net income,² which excludes the impact of non-GAAP adjustments, was $57.4听million, or $0.63 per diluted common share, for the second quarter of 2025, compared to $39.9听million, or $0.57 per diluted common share, for the first quarter of 2025 and $30.5听million, or $0.53 per diluted common share, for the second quarter of 2024. Annualized adjusted return on average assets² and annualized adjusted return on average tangible common equity² were 1.21% and 13.61%, respectively, for the second quarter of 2025.

Pre-Provision Net Revenue²

Pre-provision net revenue² was $64.2 million for the second quarter of 2025, compared to $28.7 million for the first quarter of 2025 and $40.7 million for the second quarter of 2024. Pre-provision net revenue to average assets² was 1.35% for the second quarter of 2025, compared to 0.78% for the first quarter of 2025, and 1.35% for the second quarter of 2024.

Adjusted pre-provision net revenue² was $80.8 million for the second quarter of 2025, compared to $54.7 million for the first quarter of 2025 and $42.6 million for the second quarter of 2024. Adjusted pre-provision net revenue to average assets² was 1.70% for the second quarter of 2025, compared to 1.50% for the first quarter of 2025 and 1.42% for the second quarter of 2024.

Net Interest Income and Net Interest Margin²

Net interest income was $153.2听million in the second quarter of 2025, compared to $103.7听million in the first quarter of 2025 and $82.5听million in the second quarter of 2024.

Net interest margin² was 3.49% for the second quarter of 2025, compared to 3.16% for the first quarter of 2025 and 3.03% for the second quarter of 2024. Excluding purchase accounting accretion, adjusted net interest margin² was 3.33% for the second quarter of 2025, compared to 3.08% in the first quarter of 2025 and 3.00% in the second quarter of 2024.

Components of the 33听basis point听increase in net interest margin² during the second quarter of 2025, which includes a full quarter of assets assumed in the CrossFirst acquisition, were as follows:

• Increased loan portfolio and held for sale loan yields contributed +54听basis points
• Increased purchase accounting accretion contributed +8听basis points
• Securities repositioning executed in March contributed +4听basis points
• Decreased borrowing expense contributed +4听basis points, of which +2听basis points were related to the redemption of subordinated debt in June
• Increased non-maturity deposit funding costs contributed -25听basis points
• Decreased cash and securities portfolio yield contributed -12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 2.8% 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 continued to stabilize the funding base, and we had excess earning cash during the second quarter of 2025. Brokered deposit balances were reduced by $368.6听million during the second quarter of 2025 and at June听30, 2025, the Bank had $353.6听million, or 2.2% of total deposits, of remaining brokered funding. Total deposit cost of funds increased, as expected, from 1.91% during the first quarter of 2025 to 2.21% during the second quarter of 2025. Deposit cost of funds increased due to a full quarter of the higher mix of acquired CrossFirst indexed/managed rate customer products and brokered deposits. Busey will continue to deploy excess cash to pay down non-core and non-relationship high cost funding, which we anticipate will compress the asset base in the short term while helping to reduce the Bank鈥檚 overall funding cost. We expect the deposit beta will lessen during the year and is expected to normalize in a range between 45% and 50% of the upper limit of the federal funds target range.

Noninterest Income

Total noninterest income increased by 111.4% compared to the first quarter of 2025 and increased by 33.1% compared to the second quarter of 2024, primarily due to net securities gains and losses, as well as the benefit of a full quarter of income from the CrossFirst acquisition.

Excluding the impact of net securities gains and losses and the gains on the sale of mortgage servicing rights, adjusted noninterest income² increased by 5.1% to $38.9听million, or 20.2% of operating revenue², during the second quarter of 2025, compared to $37.0听million, or 26.3% of operating revenue², for the first quarter of 2025. Compared to the second quarter of 2024, adjusted noninterest income² increased by 15.1% from $33.8听million, or 29.0% of operating revenue.²

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 56.4% of adjusted noninterest income² for the second quarter of 2025.

Noteworthy components of noninterest income are as follows:

• Wealth management fees declined by 3.4% compared to the first quarter of 2025. The decrease in the second quarter of 2025 was primarily related to seasonal fees, with a decrease in farm management fees, partially offset by higher tax preparation fees. Compared to the second quarter of 2024 wealth management fees increased by 5.4%. Busey鈥檚 Wealth Management division ended the second quarter of 2025 with $14.10听billion in assets under care, compared to $13.68 billion at the end of the first quarter of 2025 and $13.02 billion at the end of the second 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.
• Payment technology solutions includes income from electronic payments, merchant processing, and lockbox. Revenue in this category declined by 2.3% compared the first quarter of 2025 and declined by 16.2% compared to the second quarter of 2024, primarily due to decreases in income from electronic payments.
• Treasury management services consist primarily of business analysis charges and wire transfer fees on commercial accounts. Income from treasury management services increased by 65.1% compared to the first quarter of 2025 and increased by 132.2% compared to the second quarter of 2024 due to the addition of CrossFirst commercial services.
• Card services and ATM fees, which include both commercial and consumer accounts, increased by 31.6% compared to the first quarter of 2025 and increased by 42.3% compared to the second quarter of 2024 primarily due to addition of CrossFirst corporate card services.
• Other service charges on deposit accounts declined by 1.3% compared to the first quarter of 2025 and declined by 34.8% compared to the second quarter of 2024. Declines are largely related to lower non-sufficient fund charges.
• Other noninterest income decreased by 28.4% compared to the first quarter of 2025, primarily due to declines in gains on commercial loan sales, loss on sales of other real estate owned and a related reduction in income from the sold property, and decreases in venture capital investments. Compared to the second quarter of 2024, other noninterest income increased by 51.9%, primarily due to increases in venture capital investments, commercial loan servicing income, and other loan fee income.

Operating Efficiency

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1. Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within other noninterest expense or total noninterest expense.

Total noninterest expense increased by 14.1% compared to the first quarter of 2025 and increased by 68.4% compared to the second quarter of 2024. Growth in noninterest expense was primarily attributable to nonrecurring acquisition expenses related to the CrossFirst acquisition, added costs for operating expenses for two banks during the majority of the second quarter, until the banks were merged on June听20, 2025, and increased expense associated with the larger organization and branch network. Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0听million, and we expect 50% of the identified synergies to be realized in 2025 and 100% in 2026.

Adjusted noninterest expense,² which excludes acquisition and restructuring expenses and amortization of intangible assets, was $106.6听million in the second quarter of 2025, a 28.6% increase compared to $82.9听million in the first quarter of 2025 and a 50.1% increase compared to $71.1听million in the second quarter of 2024.

Noteworthy components of noninterest expense are as follows:

• Salaries, wages, and employee benefits expenses increased by $10.8听million compared to the first quarter of 2025, with acquisition and restructuring expenses declining by $4.3听million. In connection with the CrossFirst acquisition in March and the addition of 16 banking centers, Busey鈥檚 workforce expanded, which resulted in only one month of associated expenses during the first quarter of 2025 in contrast to a full quarter of associated expenses reflected in the Company鈥檚 results for the second quarter of 2025. Compared to the second quarter of 2024, salaries, wages, and employee benefits expenses increased by $34.9听million, of which $10.4听million was attributable to increases in acquisition and restructuring expenses. Including associates added in connection with the CrossFirst acquisition, Busey has added 430 FTEs over the past year.
• Data processing expense increased by $4.4听million compared to the first quarter of 2025 and by $6.9听million compared to the second quarter of 2024, of which $1.7听million and $3.6听million, respectively, was attributable to increases in acquisition and restructuring expenses. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.
• Professional fees declined by $6.6听million compared to the first quarter of 2025, which was primarily driven by a $7.0听million decrease in acquisition and restructuring expenses. Compared to the second quarter of 2024, professional fees increased by $0.4听million, primarily due to increased audit and accounting fees and legal fees, partially offset by $0.1听million declines in acquisition and restructuring expenses.
• Amortization of intangible assets increased by $1.5听million compared to the first quarter of 2025, and by $2.0听million compared to the second quarter of 2024. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets with amortization of $2.4听million and $3.1听million during the second quarter of 2025 and the first six months of 2025, respectively. Busey uses an accelerated amortization methodology.
• Other noninterest expense increased by $2.8听million compared to the first quarter of 2025, and increased by $3.3听million compared to the second quarter of 2024. Items contributing to the increases included marketing, business development, supplies, and onboarding costs as well as increases in acquisition and restructuring expenses of $0.2 million compared to the first quarter of 2025 and $0.5听million compared to the second quarter of 2024.

Busey鈥檚 efficiency ratio² was 63.9% for the second quarter of 2025, compared to 77.1% for the first quarter of 2025 and 62.6% for the second quarter of 2024. Our adjusted efficiency² ratio was 55.3% for the second quarter of 2025, compared to 58.7% for the first quarter of 2025, and 60.9% for the second quarter of 2024.

Busey鈥檚 annualized ratio of adjusted noninterest expense to average assets was 2.24% for the second quarter of 2025, compared to 2.27% for the first quarter of 2025 and 2.36% for the second quarter of 2024. As our business grows, Busey remains focused on prudently managing our expense base and operating efficiency.

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.

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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 has endured over time and will continue to guide us in the future.

Total assets were $18.92听billion as of June听30, 2025, compared to $19.46听billion as of March听31, 2025, and $11.97听billion as of June听30, 2024. Average interest-earning assets were $17.70听billion for the second quarter of 2025, compared to $13.36听billion for the first quarter of 2025, and $11.00听billion for the second quarter of 2024.

Portfolio Loans

We remain steadfast in our conservative approach to underwriting and our disciplined approach to pricing. Loan demand has been tempered with borrowers hesitant to invest because of lingering macroeconomic uncertainty. At the same time, our commercial real estate portfolio continues to season, resulting in payoffs as properties are completed, stabilized, and refinanced to permanent markets or sold. We expect continued pressure from paydowns within our commercial real estate portfolio through the remainder of 2025. Portfolio loans totaled $13.81听billion at June听30, 2025, compared to $13.87听billion at March听31, 2025, and $8.00听billion at June听30, 2024.

Average portfolio loans were $13.84听billion for the second quarter of 2025, compared to $9.84听billion for the first quarter of 2025 and $8.01听billion for the second 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. Following the Bank Merger in June, we are operating as one bank, with a singular credit policy, concentration limits, and monitoring that will continue to align with Busey Bank鈥檚 pillars of credit quality.

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

Loans 30-89 days past due increased by $23.6听million compared to March听31, 2025, and increased by $18.7听million compared to June听30, 2024. Increases are primarily due to two commercial credits, one of which鈥攔epresenting approximately $12.5听million鈥攚as brought current after the end of the second quarter.

Non-performing loans decreased by $0.2听million compared to March听31, 2025, and increased by $45.5听million compared to June听30, 2024, with the increase compared to the prior year due to loans purchased with credit deterioration (鈥淧CD鈥� loans) assumed in the CrossFirst acquisition. Non-performing loans were 0.40% of portfolio loans as of June听30, 2025, a 1听basis point increase from March听31, 2025, and a 29听basis point increase from June听30, 2024.

Non-performing assets decreased by $1.3听million compared to March听31, 2025, and increased by $49.0听million compared to June听30, 2024, with the increase compared to the prior year due to the PCD loans assumed in the CrossFirst acquisition. Non-performing assets represented 0.31% of total assets as of both June听30, 2025, and March听31, 2025, which is a 23听basis point increase from June听30, 2024.

Classified assets decreased by $14.8听million compared to March听31, 2025, and increased by $80.0听million compared to June听30, 2024, with the increase compared to the prior year due to the PCD loans assumed in the CrossFirst acquisition.

The allowance for credit losses was $183.3 million as of June听30, 2025, representing 1.33% of total portfolio loans outstanding, and providing coverage of 3.36听times our non-performing loans balance.

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1. Amounts reported as provision for loan losses for periods ending prior to June 30, 2025, were previously reported as provision for credit losses. March听31, 2025, included $42.4听million to establish an initial allowance for credit losses for loans purchased without credit deterioration (鈥渘on-PCD鈥� loans) following the close of the CrossFirst acquisition.
2. June听30, 2025, included an additional $4.0听million adjustment to the initial provision for unfunded commitments resulting from the adoption of a new CECL model. March听31, 2025, included $3.1听million to establish an initial allowance for unfunded commitments following the close of the CrossFirst acquisition.
3. Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses.

Net charge-offs decreased by $18.5听million when compared to the first quarter of 2025, and increased by $3.0听million when compared with the second quarter of 2024. Net charge-offs during the second quarter of 2025 primarily related to one legacy-Busey medical office credit. Net charge-offs during the first quarter of 2025 included $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.

The $1.0听million provision for loan losses recorded in the second quarter of 2025 included a release of the PCD provision of $11.8听million due to PCD loan payoffs/paydowns and non-PCD provision expense of $12.8听million to support charge-offs, to adjust for the loan portfolio mix, and as a response to economic factors.

Deposits

Total deposits were $15.80听billion at June听30, 2025, compared to $16.46听billion at March听31, 2025, and $9.98听billion at June听30, 2024. Average deposits were $15.99听billion for the second quarter of 2025, compared to $12.18听billion for the first quarter of 2025 and $10.07听billion for the second quarter of 2024. The deliberate run-off of higher cost brokered deposits and listing service CD reductions accounted for $386.8听million of the quarter over quarter decrease as well as seasonal tax payments that put additional pressure on funding during the quarter.

Core deposits² accounted for 92.5% of total deposits as of June听30, 2025. The quality of our core deposit franchise is a critical value driver of our institution. We estimated that 33% of our deposits were uninsured and uncollateralized⁴ as of June听30, 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 second quarter of 2025 had a weighted average term of 8.0听months at a rate of 3.74%, which was 80听basis points below our average marginal wholesale equivalent-term funding cost during the quarter.

Borrowings

On June听1, 2025, Busey redeemed the entire $125.0听million outstanding principal amount of its 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 (the 鈥淪ubordinated Notes鈥�). The aggregate principal amount of the Subordinated Notes, plus accrued and unpaid interest thereon up to, but excluding, June 1, 2025, was $128.3 million.

Liquidity

As of June听30, 2025, Busey鈥檚 available sources of on- and off-balance sheet liquidity⁵ totaled $7.95听billion. Furthermore, Busey鈥檚 balance sheet liquidity profile continues to be aided by the cash flows expected from Busey鈥檚 relatively short-duration securities portfolio. Those cash flows were approximately $123.1听million in the second quarter of 2025. Cash flows from maturing securities within our portfolio are expected to be approximately $181.0听million for the remainder of 2025, with a current book yield of 2.52%, and approximately $289.7听million for 2026, with a current book yield of 2.58%.

Capital Strength

The strength of our balance sheet is also reflected in our capital foundation. Although still impacted by the strategic deployment of capital for the CrossFirst acquisition, as well as by Busey鈥檚 active share repurchase program, our capital ratios remain strong, and as of June听30, 2025, our estimated regulatory capital ratios⁶ continued to provide a buffer of more than $870听million above levels required to be designated well-capitalized. Busey鈥檚 Common Equity Tier听1 ratio is estimated⁶ to be 12.22% at June听30, 2025, compared to 12.00% at March听31, 2025, and 13.20% at June听30, 2024. Our Total Capital to Risk Weighted Assets ratio is estimated⁶ to be 15.75% at June听30, 2025, compared to 14.88% at March听31, 2025, and 17.50% at June听30, 2024.

Busey鈥檚 tangible common equity² was $1.71听billion at June听30, 2025, compared to $1.68 billion at March听31, 2025, and $963.2 million at June听30, 2024. Tangible common equity² represented 9.27% of tangible assets at June听30, 2025, compared to 8.83% at March听31, 2025, and 8.30% at June听30, 2024.

Busey鈥檚 tangible book value per common share² was $19.18 at June听30, 2025, compared to $18.62 at March听31, 2025, and $16.97 at June听30, 2024, reflecting a 13.0% year-over-year increase.

Dividends

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 second quarter of 2025, Busey paid a dividend of $0.25 per share on its common stock. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980. Additionally, during the second quarter of 2025, Busey paid a dividend of $20.00 per share on its Series听A Non-cumulative Perpetual Preferred Stock, which was issued in connection with the CrossFirst acquisition.

Series听B Preferred Stock Issuance

On May听20, 2025, Busey issued an aggregate of 8,600,000 depositary shares (the 鈥淒epositary Shares鈥�), each representing a 1/40th interest in a share of Busey鈥檚 8.25% Fixed-Rate Series听B Non-Cumulative Perpetual Preferred Stock, $0.001 par value (the 鈥淪eries听B Preferred Stock鈥�), with a liquidation preference of $1,000 per share of Series听B Preferred Stock (equivalent to $25 per Depositary Share). Additional information about the Depositary Shares and Series听B Preferred Stock issuance can be found in Busey鈥檚 , and the related exhibits thereto.

Share Repurchases

During the second quarter of 2025, Busey鈥檚 board of directors authorized the purchase of up to 2,000,000 additional shares of the Company鈥檚 common stock under Busey鈥檚 stock repurchase plan. Busey purchased 1,012,000 shares of its common stock under the plan during the second quarter of 2025 at a weighted average price of $21.40 per share for a total of $21.7听million. As of June听30, 2025, Busey had 2,687,275 shares remaining available for repurchase under the plan.

SECOND QUARTER EARNINGS INVESTOR PRESENTATION

For additional information on Busey鈥檚 financial condition and operating results, please refer to our Q2听2025 Earnings Investor Presentation furnished via Form听8鈥慘 on July听22, 2025, in connection with this earnings release.

CORPORATE PROFILE

As of June听30, 2025, First Busey Corporation (Nasdaq: BUSE) was a $18.92 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 $18.87 billion as of June听30, 2025. Busey Bank currently has 78听banking centers, with 21 in Central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis Metropolitan Statistical Area, four in the Dallas-Fort Worth-Arlington Metropolitan Statistical Area, three in the Kansas City Metropolitan Statistical Area, three in Southwest Florida, one in Indianapolis, two in Oklahoma City, one in Tulsa, one in Wichita, one in Denver, one in Colorado Springs, one in Phoenix, one in Tucson, and one in New Mexico. More information about Busey Bank can be found at busey.com.

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 $14.10听billion as of June听30, 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 Forbes鈥� 2025鈥檚 America鈥檚 Best Banks. In 2025, Forbes also recognized Busey as a Best-in-State Bank, based on rankings of customer service, quality of financial advice, fee structures, ease of digital services, accessing help at branch locations and the degree of trust inspired. Busey was also named among the 2024 Best Banks to Work For by American Banker and the 2024 Best Places to Work in Money Management by Pensions and Investments. We are honored to be consistently recognized as an outstanding financial services organization with an 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.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

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1. Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense.
2. Annualized measure.

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1. The Day听2 provision represents the initial provision for credit losses recorded in connection with the CrossFirst acquisition to establish an allowance on non-PCD loans and unfunded commitments and is reflected within the provision for credit losses line on the Statement of Income.
2. Tax benefits were calculated for the year-to-date periods using tax rates of 26.51% and 25.03% for the six months ended June听30, 2025 and 2024, respectively. Tax benefits for the quarterly periods were calculated as the year-to-date tax amounts less the tax reported for previous quarters during the year.
3. A deferred valuation tax adjustment in 2025 was recorded in connection with the CrossFirst acquisition and the expansion of Busey鈥檚 footprint into new states. Additionally, 2025 includes a write-off of deferred tax assets related to non-deductible acquisition-related expenses. A deferred tax valuation adjustment in 2024 resulted from a change to Busey鈥檚 Illinois apportionment rate due to recently enacted regulations. Deferred tax adjustments are reflected within the income taxes line on the Statement of Income.
4. 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 presented as further adjustments to adjusted net income.
5. Dilution includes shares that would have been dilutive if there had been net income during the period.
6. 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. Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense. This change affects all measures and ratios derived from total noninterest expense.
3. 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, the threat or implementation of tariffs, trade wars, and changes to immigration policy); (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technological changes implemented by us and other parties, including our third-party vendors, which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (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