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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2021

Significant Accounting Policies

Nature of operations

Nature of Operations

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First Busey Corporation, a Nevada corporation organized in 1980, is a $12.4 billion financial holding company headquartered in Champaign, Illinois. Our common stock is traded on The Nasdaq Global Select Market under the symbol “BUSE.”

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The Company operates and reports its business in three segments: Banking, Remittance Processing, and Wealth Management. The Banking operating segment provides a full range of banking services to individual and corporate customers through the Company’s wholly-owned bank subsidiaries, Busey Bank and GSB, with banking centers in Illinois; the St. Louis, Missouri metropolitan area; southwest Florida; and Indianapolis, Indiana. The Remittance Processing operating segment provides solutions for online bill payments, lockbox, and walk-in payments through the Company’s subsidiary, FirsTech. The Wealth Management operating segment provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations.

Basis of Financial Statement Presentation

Basis of Financial Statement Presentation

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These unaudited consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements included in our 2020 Annual Report. These interim unaudited consolidated financial statements serve to update our 2020 Annual Report and may not include all information and notes necessary to constitute a complete set of financial statements.

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We prepared these unaudited consolidated financial statements in conformity with GAAP. We have eliminated intercompany accounts and transactions. We have also reclassified certain prior year amounts to conform to the current period presentation. These reclassifications did not have a material impact on our consolidated financial condition or results of operations.

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In our opinion, the unaudited consolidated financial statements reflect all normal, recurring adjustments needed to present fairly our results for the interim periods. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year or any other interim period.

COVID-19

COVID-19

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First Busey has continued to operate as an essential community resource during these challenging and unprecedented times. Federal bank regulatory agencies, along with their state counterparts, have issued a steady stream of guidance responding to the COVID-19 pandemic and have taken a number of steps to help banks navigate the pandemic and mitigate its impact.

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The Company remains vigilant as the negative impacts of COVID-19, such as further margin compression and a deterioration in asset quality, could impact future quarters.

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As part of the CARES Act, Congress appropriated approximately $349 billion for the creation of the PPP and then authorized a second phase for an additional $310 billion in PPP loans. The program provided payroll assistance for the nation’s nearly 30 million small businesses—and select nonprofits—in the form of 100% government-guaranteed low-interest loans from the SBA. On December 27, 2020, the Economic Aid Act extended the authority to make PPP loans through March 31, 2021, and revised certain PPP requirements. On March 30, 2021, the President signed the PPP Extension Act of 2021, which extended the PPP application deadline to May 31, 2021, or until funding was exhausted, which occurred on May 28, 2021. First Busey served as a bridge for these programs, actively helping existing and new business clients sign up for this important financial resource.

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The following table summarizes First Busey’s PPP loans as of June 30, 2021, (dollars in thousands):

​

​	​	​	​	​	​	​	​	​	​
​	​	CARES		​	Economic Aid		​	PPP Loan
​		Act			Act			Totals
Busey Bank customers with PPP loans processed	​	​	4,569	​	​	2,474	​	​	7,043
PPP loans originated by Busey Bank	​	$	749,429	​	$	296,346	​	$	1,045,775
​	​	​	​	​	​	​	​	​	​
GSB customers with PPP loans acquired	​	​	26	​	​	266	​	​	292
PPP loans acquired from GSB	​	$	15,783	​	$	27,694	​	$	43,477
​	​	​	​	​	​	​	​	​	​
Customers with PPP loans outstanding (1)	​	​	581	​	​	2,523	​	​	3,104
PPP loans outstanding (1)	​	$	93,455	​	$	306,249	​	$	399,704
PPP loans outstanding, amortized cost (1)	​	​	93,099	​	​	297,296	​	​	390,395
​	​	​	​	​	​	​	​	​	​
PPP loan balance forgiveness: (1)	​	​	​	​	​	​	​	​	​
Received	​	$	667,796	​	$	17,788	​	$	685,584
Balances submitted to the SBA for forgiveness	​	​	18,652	​	​	2,239	​	​	20,891

(1) Consolidated totals include Busey Bank and GSB.

Use of Estimates

Use of Estimates

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In preparing the accompanying unaudited consolidated financial statements in conformity with GAAP, the Company’s management is required to make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures provided. Actual results could differ from those estimates. Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities available for sale, fair value of assets acquired and liabilities assumed in business combinations, goodwill, income taxes, and the determination of the ACL.

Subsequent Events

Subsequent Events

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The Company has evaluated subsequent events for potential recognition and/or disclosure through the date the unaudited consolidated financial statements included in this Quarterly Report were issued. On July 27, 2021, the Company announced its Personal Banking Transformation Plan which includes plans to close and consolidate 15 Busey Bank banking centers. In addition, the Company announced plans to consolidate two GSB banking centers, with the banking centers in connection with the integration of the acquisition. Each of these banking center closures is expected to occur in the fourth quarter of 2021. There were no other significant subsequent events for the quarter ended June 30, 2021, through the filing date of these unaudited consolidated financial statements.

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