XML 64 R52.htm IDEA: XBRL DOCUMENT
v3.24.0.1

DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of financial instruments owned and pledged as collateral | The principal balance of loans Busey has pledged as collateral to the FHLB and Federal Reserve Bank for liquidity as set forth in the table below (dollars in thousands):
| As of December 31,
| 2023 |  | 2022
Pledged loans |  |  |
FHLB | $ | 4,865,481 |  |  | $ | 5,095,448 |
Federal Reserve Bank | 722,914 |  |  | 804,718 |
Total pledged loans | $ | 5,588,395 |  |  | $ | 5,900,166 |
To secure its obligations under derivative contracts, Busey pledged cash and held collateral as follows (dollars in thousands):
| As of December 31,
| 2023 |  | 2022
Cash pledged to secure obligations under derivative contracts | $ | 34,210 |  |  | $ | 38,609 |
Collateral held to secure obligations under derivative contracts | 19,280 |  |  | 29,830 |
Summary of the interest-rate swaps designated as cash flow hedges | A summary of the interest-rate swaps designated as cash flow hedges is presented below (dollars in thousands):
|  |  | As of December 31,
| Location |  | 2023 |  | 2022
Debt Swap |  |  |  |  |
Notional amount |  |  | $ | 50,000 |  |  | $ | 50,000 |
Weighted average fixed pay rates |  |  | 1.79 | % |  | 1.79 | %
Weighted average variable 3-month LIBOR receive rates |  |  | 5.61 | % |  | 4.77 | %
Weighted average maturity |  |  | 0.71 years |  | 1.71 years
Loan Swap |  |  |  |  |
Notional amount |  |  | $ | 300,000 |  |  | $ | 300,000 |
Weighted average fixed receive rates |  |  | 4.81 | % |  | 4.81 | %
Weighted average variable Prime pay rates |  |  | 8.50 | % |  | 7.32 | %
Weighted average maturity |  |  | 5.10 years |  | 6.10 years
Gross aggregate fair value of the swaps |  |  |  |  |
Gross aggregate fair value of swap assets | Other assets |  | $ | 1,293 |  |  | $ | 2,535 |
Gross aggregate fair value of swap liabilities | Other liabilities |  | $ | 25,411 |  |  | $ | 32,367 |
Balances carried in AOCI |  |  |  |  |
Unrealized gains (losses) on cash flow hedges, net of tax | AOCI |  | $ | (16,694) |  |  | $ | (20,985) |
Reclassification of unrealized gains and losses from OCI | Busey expects to reclassify unrealized gains and losses from OCI to interest income and interest expense as shown in the following table, during the next 12 months (dollars in thousands). Amounts actually recognized could differ from these expectations due to changes in interest rates, hedge de-designations, and the addition of other hedges subsequent to December 31, 2023.
| As of December 31, 2023
Unrealized gains (losses) in OCI expected to be recognized in income |
Unrealized losses expected to be reclassified from OCI to interest income | $ | (952) |
Unrealized gains expected to be reclassified from OCI to interest expense | 483 |
Net unrealized gains (losses) in OCI expected to be recognized in net interest income | $ | (469) |
Schedule of interest income (expense) recorded on swap transactions | Interest income (expense) recorded on swap transactions was as follows for the periods presented (dollars in thousands):
|  |  | Years Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
Interest on swap transactions |  |  |  |  |  |  |  |  |
Increase (decrease) in interest income on swap transactions |  |  |  |  | $ | (10,326) |  |  | $ | (553) |  |  | $ | — |
(Increase) decrease in interest expense on swap transactions |  |  |  |  | 1,757 |  |  | (30) |  |  | (1,067) |
Net increase (decrease) in net interest income on swap transactions |  |  |  |  | $ | (8,569) |  |  | $ | (583) |  |  | $ | (1,067) |
Summary of net gains (losses) relating to these derivative instruments | The following table reflects the net gains (losses) recorded in AOCI and the Consolidated Statements of Comprehensive Income relating to cash flow derivative instruments for the periods presented (dollars in thousands):
|  |  | Years Ended December 31,
|  |  |  |  | 2023 |  | 2022 |  | 2021
Unrealized gains (losses) on cash flow hedges |  |  |  |  |  |  |  |  |
Net gain (loss) recognized in OCI, net of tax |  |  |  |  | $ | (1,835) |  |  | $ | (20,717) |  |  | $ | 736 |
(Gain) loss reclassified from OCI to interest income, net of tax |  |  |  |  | 7,382 |  |  | 395 |  |  | — |
(Gain) loss reclassified from OCI to interest expense, net of tax |  |  |  |  | (1,256) |  |  | 22 |  |  | 763 |
Net change in unrealized gains (losses) on cash flow hedges, net of tax |  |  |  |  | $ | 4,291 |  |  | $ | (20,300) |  |  | $ | 1,499 |
Changes in fair value of these derivative assets and liabilities were recorded in noninterest expense in the Consolidated Statements of Income and are summarized as follows (dollars in thousands):
|  |  |  |  | Years Ended December 31,
| Location |  |  |  |  |  | 2023 |  | 2022 |  | 2021
Interest rate swaps |  |  |  |  |  |  |  |  |  |  |
Pay floating, receive fixed | Noninterest expense |  |  |  |  |  | $ | (11,525) |  |  | $ | 19,308 |  |  | $ | (12,587) |
Pay fixed, receive floating | Noninterest expense |  |  |  |  |  | 11,525 |  |  | (19,308) |  |  | 12,587 |
Net change in fair value of interest rate swaps |  |  |  |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Net gains (losses) relating to these derivative instruments are summarized as follows for the periods presented (dollars in thousands):
|  |  |  |  | Years Ended December 31,
| Location |  |  |  |  |  | 2023 |  | 2022 |  | 2021
Net gains (losses) |  |  |  |  |  |  |  |  |  |  |
Interest rate lock commitments | Mortgage revenue |  |  |  |  |  | $ | — |  |  | $ | 15 |  |  | $ | 1,702 |
Forward sales commitments | Mortgage revenue |  |  |  |  |  | 2 |  |  | (38) |  |  | (4,045) |
Net gains (losses) |  |  |  |  |  |  | $ | 2 |  |  | $ | (23) |  |  | $ | (2,343) |
Summary of fair values of derivative assets and liabilities recorded in consolidated balance sheet | Amounts and fair values of derivative assets and liabilities related to customer interest rate swaps, included in other assets and other liabilities in the Consolidated Balance Sheets, are summarized as follows (dollars in thousands):
| As of December 31, 2023
| Derivative Asset |  | Derivative Liability
| Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Interest rate swaps – pay floating, receive fixed | $ | 177,883 |  |  | $ | 2,375 |  |  | $ | 485,253 |  |  | $ | 26,289 |
Interest rate swaps – pay fixed, receive floating | 485,253 |  |  | 26,289 |  |  | 177,883 |  |  | 2,375 |
Total derivatives not designated as hedging instruments | $ | 663,136 |  |  | $ | 28,664 |  |  | $ | 663,136 |  |  | $ | 28,664 |
| As of December 31, 2022
| Derivative Asset |  | Derivative Liability
| Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Interest rate swaps – pay floating, receive fixed | $ | 48,728 |  |  | $ | 370 |  |  | $ | 528,183 |  |  | $ | 39,685 |
Interest rate swaps – pay fixed, receive floating | 528,183 |  |  | 39,685 |  |  | 48,728 |  |  | 370 |
Total derivatives not designated as hedging instruments | $ | 576,911 |  |  | $ | 40,055 |  |  | $ | 576,911 |  |  | $ | 40,055 |
Amounts and fair values of mortgage banking derivatives included in the Consolidated Balance Sheets are summarized as follows (dollars in thousands):
|  |  | As of December 31, 2023 |  | As of December 31, 2022
| Location |  | Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Mortgage banking derivative assets |  |  |  |  |  |  |  |  |
Interest rate lock commitments | Other assets |  | $ | 3,477 |  |  | $ | 25 |  |  | $ | 1,517 |  |  | $ | 16 |
Forward sales commitments | Other assets |  | 1,761 |  |  | 11 |  |  | 83 |  |  | 1 |
Mortgage banking derivative assets |  |  | $ | 5,238 |  |  | $ | 36 |  |  | $ | 1,600 |  |  | $ | 17 |
Mortgage banking derivative liabilities |  |  |  |  |  |  |  |  |
Interest rate lock commitments | Other liabilities |  | $ | 1,615 |  |  | $ | 10 |  |  | $ | 83 |  |  | $ | 1 |
Forward sales commitments | Other liabilities |  | 5,216 |  |  | 47 |  |  | 2,757 |  |  | 39 |
Mortgage banking derivative liabilities |  |  | $ | 6,831 |  |  | $ | 57 |  |  | $ | 2,840 |  |  | $ | 40 |
Schedule of notional amount and fair value of risk participation agreement | The notional amount of the risk participation agreements reflect Busey's pro-rata share of the derivative instrument, consistent with its share of the related participated loan. The risk participation agreements mature between 2024 and 2029, and are summarized as follows (dollars in thousands):
| As of December 31,
| 2023 |  | 2022
Risk participation agreements purchased |  |  |
Number of risk participation agreements | 3 |  |  | 2 |
Notional amount | $ | 34,251 |  |  | $ | 18,899 |
Fair value | 15 |  |  | 5 |
Risk participation agreements sold |  |  |
Number of risk participation agreements | 1 |  |  | — |
Notional amount | $ | 20,001 |  |  | — |
Fair value | — |  |  | — |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of interest income and expense, including, but not limited to, interest income and expense from investments, loans, and securities. + References No definition available. + Details
Name: | us-gaap_InterestIncomeAndInterestExpenseDisclosureTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information about items reclassified out of accumulated other comprehensive income (loss). + References No definition available. + Details
Name: | us-gaap_ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4E -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4E Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4A + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 2 -SubTopic 10 -Topic 815 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-2 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1B Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-8 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-1 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of financial instruments held by the entity for its own account for trading or investment purposes that are carried at fair value and pledged to counterparties as collateral for financing transactions. Description may include equity, fixed income, debt or other securities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 860 -SubTopic 30 -Name Accounting Standards Codification -Section 45 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481444/860-30-45-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 860 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Publisher FASB -URI https://asc.fasb.org//1943274/2147481420/860-30-50-1A + Details
Name: | us-gaap_ScheduleOfFinancialInstrumentsOwnedAndPledgedAsCollateralTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of interest rate derivatives, including, but not limited to, the fair value of the derivatives, statement of financial position location, and statement of financial performance location of these instruments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C + Details
Name: | us-gaap_ScheduleOfInterestRateDerivativesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration