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DEBT SECURITIES | 9 Months Ended
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Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract] |
DEBT SECURITIES | NOTE 3. DEBT SECURITIES Busey's portfolio of debt securities includes both available for sale and held to maturity securities. The tables below provide the amortized cost, unrealized or unrecognized gains and losses, and fair values of debt securities summarized by major category (dollars in thousands):
| As of September 30, 2024
| Amortized Cost |  | Unrealized |  | Fair Value
Gross Gains |  | Gross Losses
Debt securities available for sale |  |  |  |  |  |  |
U.S. Treasury securities 1 | $ | 250 |  |  | $ | — |  |  | $ | — |  |  | $ | 250 |
Obligations of U.S. government corporations and agencies 2 | 1,515 |  |  | — |  |  | (7) |  |  | 1,508 |
Obligations of states and political subdivisions 3 | 168,052 |  |  | 144 |  |  | (13,144) |  |  | 155,052 |
Asset-backed securities 3 | 405,280 |  |  | 92 |  |  | — |  |  | 405,372 |
Commercial mortgage-backed securities | 106,543 |  |  | 228 |  |  | (12,492) |  |  | 94,279 |
Residential mortgage-backed securities | 1,161,213 |  |  | 179 |  |  | (159,225) |  |  | 1,002,167 |
Corporate debt securities | 166,818 |  |  | 118 |  |  | (7,447) |  |  | 159,489 |
Total debt securities available for sale | $ | 2,009,671 |  |  | $ | 761 |  |  | $ | (192,315) |  |  | $ | 1,818,117 |
| Amortized Cost |  | Unrecognized |  | Fair Value
Gross Gains |  | Gross Losses
Debt securities held to maturity |  |  |  |  |  |  |
Commercial mortgage-backed securities | $ | 419,685 |  |  | $ | — |  |  | $ | (64,780) |  |  | $ | 354,905 |
Residential mortgage-backed securities | 419,198 |  |  | — |  |  | (61,734) |  |  | 357,464 |
Total debt securities held to maturity | $ | 838,883 |  |  | $ | — |  |  | $ | (126,514) |  |  | $ | 712,369 |
___________________________________________ 1.Gross losses were insignificant, rounding to zero thousand. 2.Gross gains were insignificant, rounding to zero thousand. 3.Includes securities marked at par, with no gain or loss to report.
| As of December 31, 2023
| Amortized Cost |  | Unrealized |  | Fair Value
|  | Gross Gains |  | Gross Losses |
Debt securities available for sale |  |  |  |  |  |  |
U.S. Treasury securities | $ | 16,031 |  |  | $ | — |  |  | $ | (85) |  |  | $ | 15,946 |
Obligations of U.S. government corporations and agencies | 5,889 |  |  | 1 |  |  | (58) |  |  | 5,832 |
Obligations of states and political subdivisions 1 | 190,819 |  |  | 52 |  |  | (18,026) |  |  | 172,845 |
Asset-backed securities | 470,046 |  |  | — |  |  | (1,823) |  |  | 468,223 |
Commercial mortgage-backed securities | 119,044 |  |  | — |  |  | (15,535) |  |  | 103,509 |
Residential mortgage-backed securities | 1,306,854 |  |  | 5 |  |  | (195,547) |  |  | 1,111,312 |
Corporate debt securities | 225,947 |  |  | 128 |  |  | (16,171) |  |  | 209,904 |
Total debt securities available for sale | $ | 2,334,630 |  |  | $ | 186 |  |  | $ | (247,245) |  |  | $ | 2,087,571 |
| Amortized Cost |  | Unrecognized |  | Fair Value
Gross Gains |  | Gross Losses
Debt securities held to maturity |  |  |  |  |  |  |
Commercial mortgage-backed securities | $ | 428,526 |  |  | $ | — |  |  | $ | (71,000) |  |  | $ | 357,526 |
Residential mortgage-backed securities | 444,102 |  |  | — |  |  | (71,231) |  |  | 372,871 |
Total debt securities held to maturity | $ | 872,628 |  |  | $ | — |  |  | $ | (142,231) |  |  | $ | 730,397 |
___________________________________________ 1.Includes securities marked at par, with no gain or loss to report. Maturities of Debt Securities Amortized cost and fair value of debt securities, by contractual maturity or pre-refunded date, are shown below. Mortgages underlying mortgage-backed securities and asset-backed securities may be called or prepaid; therefore, actual maturities could differ from the contractual maturities. All mortgage-backed securities were issued by U.S. government corporations and agencies (dollars in thousands):
| As of September 30, 2024
| Amortized Cost |  | Fair Value
Debt securities available for sale |  |  |
Due in one year or less | $ | 86,812 |  |  | $ | 85,513 |
Due after one year through five years | 128,399 |  |  | 123,444 |
Due after five years through ten years | 558,784 |  |  | 539,952 |
Due after ten years | 1,235,676 |  |  | 1,069,208 |
Debt securities available for sale | $ | 2,009,671 |  |  | $ | 1,818,117 |
Debt securities held to maturity |  |  |
Due after one year through five years | $ | 83,464 |  |  | $ | 80,274 |
Due after five years through ten years | 14,678 |  |  | 13,103 |
Due after ten years | 740,741 |  |  | 618,992 |
Debt securities held to maturity | $ | 838,883 |  |  | $ | 712,369 |
Gains and Losses on Debt Securities Available for Sale Realized gains and losses related to sales and calls of debt securities available for sale are summarized as follows (dollars in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Realized gains and losses on debt securities |  |  |  |  |  |  |
Gross gains on debt securities | $ | — |  |  | $ | 10 |  |  | $ | 1 |  |  | $ | 20 |
Gross (losses) on debt securities 1 | (11) |  | (43) |  | (6,818) |  |  | (227) |
Realized net gains (losses) on debt securities | $ | (11) |  |  | $ | (33) |  |  | $ | (6,817) |  |  | $ | (207) |
___________________________________________ 1.During the first quarter of 2024, Busey sold available-for-sale debt securities with a book value of approximately $108.2 million for a pre-tax loss of $6.8 million, as part of a balance sheet repositioning strategy. The loss on the sale of securities was offset by a pre-tax gain of $7.5 million realized on the sale of mortgage servicing rights on approximately $923.5 million of one- to four-family mortgage loans. Debt securities with carrying amounts of $906.8 million on September 30, 2024, and $837.4 million on December 31, 2023, were pledged as collateral for public deposits, securities sold under agreements to repurchase, and for other purposes as required. Debt Securities in an Unrealized or Unrecognized Loss Position The following information pertains to debt securities with gross unrealized or unrecognized losses, aggregated by investment category and the length of time that individual securities have been in a continuous loss position (dollars in thousands):
| As of September 30, 2024
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Debt securities available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities 1 | $ | — |  |  | $ | — |  |  | $ | 250 |  |  | $ | — |  |  | $ | 250 |  |  | $ | — |
Obligations of U.S. government corporations and agencies | — |  |  | — |  |  | 1,425 |  |  | (7) |  |  | 1,425 |  |  | (7) |
Obligations of states and political subdivisions | 2,518 |  |  | (97) |  |  | 134,373 |  |  | (13,047) |  |  | 136,891 |  |  | (13,144) |
Commercial mortgage-backed securities | — |  |  | — |  |  | 89,272 |  |  | (12,492) |  |  | 89,272 |  |  | (12,492) |
Residential mortgage-backed securities | 877 |  |  | (2) |  |  | 993,631 |  |  | (159,223) |  |  | 994,508 |  |  | (159,225) |
Corporate debt securities | 784 |  |  | (9) |  |  | 150,295 |  |  | (7,438) |  |  | 151,079 |  |  | (7,447) |
Debt securities available for sale with gross unrealized losses | $ | 4,179 |  |  | $ | (108) |  |  | $ | 1,369,246 |  |  | $ | (192,207) |  |  | $ | 1,373,425 |  |  | $ | (192,315) |
|  |  | 12 months or more |  | Total
|  |  |  |  | Fair Value |  | Unrecognized Losses |  | Fair Value |  | Unrecognized Losses
Debt securities held to maturity |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  |  |  |  | $ | 354,905 |  |  | $ | (64,780) |  |  | $ | 354,905 |  |  | $ | (64,780) |
Residential mortgage-backed securities |  |  |  |  | 357,464 |  |  | (61,734) |  |  | 357,464 |  |  | (61,734) |
Debt securities held to maturity with gross unrecognized losses |  |  |  |  | $ | 712,369 |  |  | $ | (126,514) |  |  | $ | 712,369 |  |  | $ | (126,514) |
___________________________________________ 1.Gross losses were insignificant, rounding to zero thousand.
| As of December 31, 2023
| Less than 12 months |  | 12 months or more |  | Total
| Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
Debt securities available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | — |  |  | $ | — |  |  | $ | 15,946 |  |  | $ | (85) |  |  | $ | 15,946 |  |  | $ | (85) |
Obligations of U.S. government corporations and agencies | — |  |  | — |  |  | 5,709 |  |  | (58) |  |  | 5,709 |  |  | (58) |
Obligations of states and political subdivisions | 11,442 |  |  | (54) |  |  | 146,797 |  |  | (17,972) |  |  | 158,239 |  |  | (18,026) |
Asset-backed securities | — |  |  | — |  |  | 468,223 |  |  | (1,823) |  |  | 468,223 |  |  | (1,823) |
Commercial mortgage-backed securities | — |  |  | — |  |  | 103,509 |  |  | (15,535) |  |  | 103,509 |  |  | (15,535) |
Residential mortgage-backed securities | 141 |  |  | (1) |  |  | 1,110,906 |  |  | (195,546) |  |  | 1,111,047 |  |  | (195,547) |
Corporate debt securities | 1,450 |  |  | (10) |  |  | 198,694 |  |  | (16,161) |  |  | 200,144 |  |  | (16,171) |
Debt securities available for sale with gross unrealized losses | $ | 13,033 |  |  | $ | (65) |  |  | $ | 2,049,784 |  |  | $ | (247,180) |  |  | $ | 2,062,817 |  |  | $ | (247,245) |
|  |  | 12 months or more |  | Total
|  |  |  |  | Fair Value |  | Unrecognized Losses |  | Fair Value |  | Unrecognized Losses
Debt securities held to maturity |  |  |  |  |  |  |  |  |  |  |
Commercial mortgage-backed securities |  |  |  |  | $ | 357,526 |  |  | $ | (71,000) |  |  | $ | 357,526 |  |  | $ | (71,000) |
Residential mortgage-backed securities |  |  |  |  | 372,871 |  |  | (71,231) |  |  | 372,871 |  |  | (71,231) |
Debt securities held to maturity with gross unrecognized losses |  |  |  |  | $ | 730,397 |  |  | $ | (142,231) |  |  | $ | 730,397 |  |  | $ | (142,231) |
Additional information about debt securities in an unrealized or unrecognized loss position is presented in the tables below (dollars in thousands):
| As of September 30, 2024
| Available for Sale |  | Held to Maturity |  | Total
Debt securities with gross unrealized or unrecognized losses, fair value | $ | 1,373,425 |  |  | $ | 712,369 |  |  | $ | 2,085,794 |
Gross unrealized or unrecognized losses on debt securities | 192,315 |  |  | 126,514 |  |  | 318,829 |
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses | 14.0 | % |  | 17.8 | % |  | 15.3 | %
Count of debt securities | 704 |  |  | 55 |  |  | 759 |
Count of debt securities in an unrealized or unrecognized loss position | 572 |  |  | 55 |  |  | 627 |
| As of December 31, 2023
| Available for Sale |  | Held to Maturity |  | Total
Debt securities with gross unrealized or unrecognized losses, fair value | $ | 2,062,817 |  |  | $ | 730,397 |  |  | $ | 2,793,214 |
Gross unrealized or unrecognized losses on debt securities | 247,245 |  |  | 142,231 |  |  | 389,476 |
Ratio of gross unrealized or unrecognized losses to debt securities with gross unrealized or unrecognized losses | 12.0 | % |  | 19.5 | % |  | 13.9 | %
Count of debt securities | 835 |  |  | 55 |  |  | 890 |
Count of debt securities in an unrealized or unrecognized loss position | 779 |  |  | 55 |  |  | 834 |
Unrealized and unrecognized losses are related to changes in market interest rates and market conditions that do not represent credit-related impairments. Unless part of a corporate strategy or restructuring plan, Busey does not intend to sell securities that are in an unrealized or unrecognized loss position, and it is more likely than not that Busey will recover the amortized cost prior to being required to sell the debt securities. Full collection of the amounts due according to the contractual terms of the debt securities is expected; therefore, no ACL has been recorded in relation to debt securities, and the impairment related to noncredit factors on debt securities available for sale is recognized in AOCI, net of applicable taxes. As of September 30, 2024, Busey did not hold general obligation bonds of any single issuer, the aggregate of which exceeded 10% of Busey’s stockholders’ equity.

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