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PORTFOLIO LOANS
 6 Months Ended
Jun. 30, 2025
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
PORTFOLIO LOANS
NOTE 4. PORTFOLIO LOANS
Loan Categories
Busey’s lending can be summarized in two primary categories: commercial and retail. Loans within these categories are further classified by lending activity: C&I and other commercial, commercial real estate, real estate construction, retail real estate, and retail other. Distributions of the loan portfolio by loan category and lending activity is presented in the following table:
As of
(dollars in thousands)June 30,
2025		December 31,
2024
Commercial loans
C&I and other commercial$4,476,869 $1,904,515 
CRE5,569,759 3,269,564 
Real estate construction1,041,803 378,209 
Total commercial loans11,088,431 5,552,288 
Retail loans
Retail real estate2,228,959 1,696,457 
Retail other491,229 448,342 
Total retail loans2,720,188 2,144,799 
Total portfolio loans13,808,619 7,697,087 
ACL(183,334)(83,404)
Portfolio loans, net$13,625,285 $7,613,683 
Net deferred loan origination costs included in the balances above were $10.8 million as of June 30, 2025, compared to $12.5 million as of December 31, 2024. Net accretable purchase accounting adjustments included in the balances above reduced loans by $98.1 million as of June 30, 2025, and $8.8 million as of December 31, 2024.
Busey did not purchase any retail real estate loans during the three and six months ended June 30, 2025. Busey elected to purchase $6.9 million of retail real estate loans during the three and six months ended June 30, 2024.
Pledged Loans
Busey has executed a blanket lien with the FHLB. The principal balance of loans Busey has pledged as collateral with the FHLB and Federal Reserve Bank for liquidity, which Busey is able to borrow against, is set forth in the table below:
As of
(dollars in thousands)June 30,
2025		December 31,
2024
Pledged loans
FHLB$5,010,792 $4,813,600 
Federal Reserve Bank1,580,491 765,824 
Total pledged loans$6,591,283 $5,579,424 
Risk Grading
Busey utilizes a loan grading scale to assign a risk grade to all of its loans. A description of the general characteristics of each grade is as follows:
•Pass – This category includes loans that are all considered acceptable credits, ranging from investment or near investment grade, to loans made to borrowers who exhibit credit fundamentals that meet or exceed industry standards.
•Watch – This category includes loans that warrant a higher-than-average level of monitoring to ensure that weaknesses do not cause the inability of the credit to perform as expected. These loans are not necessarily a problem due to other inherent strengths of the credit, such as guarantor strength, but have above average concern and monitoring.
•Special mention – This category is for “Other Assets Specially Mentioned” loans that have potential weaknesses, which may, if not checked or corrected, weaken the asset or inadequately protect Busey’s credit position at some future date.
•Substandard – This category includes “Substandard” loans, determined in accordance with regulatory guidelines, for which the accrual of interest has not been stopped. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that Busey will sustain some loss if the deficiencies are not corrected.
•Substandard non-accrual – This category includes loans that have all the characteristics of a “Substandard” loan with additional factors that make collection in full highly questionable and improbable. Such loans are placed on non-accrual status and may be dependent on collateral with a value that is difficult to determine.
All loans are graded at their inception. Commercial lending relationships that are $2.0 million or less are usually processed through an expedited underwriting process. Most commercial loans greater than $2.0 million are included in a portfolio review at least annually. Commercial loans greater than $0.35 million that have a grading of special mention or worse are typically reviewed on a quarterly basis. Interim reviews may take place if circumstances of the borrower warrant a more frequent review.
The following table is a summary of Busey’s portfolio loans by risk grade, segregated by loan category:
As of June 30, 2025
(dollars in thousands)PassWatchSpecial
Mention		SubstandardSubstandard
Non-accrual		Total
Commercial loans
C&I and other commercial$3,790,854 $436,157 $127,315 $87,603 $34,940 $4,476,869 
CRE4,571,016 813,941 152,544 21,695 10,563 5,569,759 
Real estate construction964,183 45,940 25,981 5,677 22 1,041,803 
Total commercial loans9,326,053 1,296,038 305,840 114,975 45,525 11,088,431 
Retail loans
Retail real estate2,205,127 6,331 6,848 2,806 7,847 2,228,959 
Retail other490,979 — — 8 242 491,229 
Total retail loans2,696,106 6,331 6,848 2,814 8,089 2,720,188 
Total portfolio loans$12,022,159 $1,302,369 $312,688 $117,789 $53,614 $13,808,619 
As of December 31, 2024
(dollars in thousands)PassWatchSpecial
Mention		SubstandardSubstandard
Non-accrual		Total
Commercial loans
C&I and other commercial$1,545,338 $281,424 $36,152 $37,749 $3,852 $1,904,515 
CRE2,744,018 438,945 55,041 16,507 15,053 3,269,564 
Real estate construction345,908 26,833 221 5,224 23 378,209 
Total commercial loans4,635,264 747,202 91,414 59,480 18,928 5,552,288 
Retail loans
Retail real estate1,680,640 9,408 882 2,543 2,984 1,696,457 
Retail other448,166 — — — 176 448,342 
Total retail loans2,128,806 9,408 882 2,543 3,160 2,144,799 
Total portfolio loans$6,764,070 $756,610 $92,296 $62,023 $22,088 $7,697,087 
Risk grades of portfolio loans and gross charge-offs are presented in the tables below by lending activity, further sorted by origination year:
As of and For The Six Months Ended June 30, 2025
Risk Grade RatingsTerm Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
(dollars in thousands)20252024202320222021Prior
C&I and other commercial
Pass$515,264 $829,795 $517,205 $279,602 $192,483 $166,112 $1,290,393 $3,790,854 
Watch40,197 60,053 70,716 51,774 74,582 19,821 119,014 436,157 
Special Mention2,579 22,737 18,440 42,789 3,376 2,784 34,610 127,315 
Substandard16,642 4,314 17,675 4,587 10,163 3,907 30,315 87,603 
Substandard non-accrual86 3,774 3,159 7,309 1,046 5,051 14,515 34,940 
Total C&I and other commercial574,768 920,673 627,195 386,061 281,650 197,675 1,488,847 4,476,869 
Gross charge-offs$— $908 $3,222 $285 $13,591 $11,174 $4,121 $33,301 
CRE
Pass389,049 509,376 726,226 1,336,389 832,204 735,227 42,545 4,571,016 
Watch91,566 111,220 141,107 162,659 208,775 95,704 2,910 813,941 
Special Mention54,783 24,440 4,161 26,254 24,902 16,357 1,647 152,544 
Substandard1,447 1,959 916 8,611 — 8,717 45 21,695 
Substandard non-accrual10 2,769 4,551 73 2 3,158 — 10,563 
Total CRE536,855 649,764 876,961 1,533,986 1,065,883 859,163 47,147 5,569,759 
Gross charge-offs— 10,916 — — 253 — — 11,169 
Real estate construction
Pass174,939 324,172 153,653 211,480 24,401 2,625 72,913 964,183 
Watch14,429 28,866 2,458 — 187 — — 45,940 
Special Mention18,334 — — 610 7,037 — — 25,981 
Substandard5,187 428 — — 62 — — 5,677 
Substandard non-accrual— — — — 22 — — 22 
Total real estate construction212,889 353,466 156,111 212,090 31,709 2,625 72,913 1,041,803 
Gross charge-offs— — — — — — — — 
Retail real estate
Pass75,389 138,161 323,645 459,652 423,095 546,277 238,908 2,205,127 
Watch132 1,957 509 1,685 290 1,185 573 6,331 
Special Mention92 89 3,865 840 1,748 — 214 6,848 
Substandard— — 114 1,460 494 735 3 2,806 
Substandard non-accrual160 153 39 322 317 2,944 3,912 7,847 
Total retail real estate75,773 140,360 328,172 463,959 425,944 551,141 243,610 2,228,959 
Gross charge-offs35 — — — — 48 36 119 
Retail other
Pass6,059 7,347 43,453 43,952 8,071 1,173 380,924 490,979 
Watch— — — — — — — — 
Special Mention— — — — — — — — 
Substandard— — — — — 8 — 8 
Substandard non-accrual— — 93 138 — 11 — 242 
Total retail other6,059 7,347 43,546 44,090 8,071 1,192 380,924 491,229 
Gross charge-offs120 147 253 35 — 74 — 629 
Total portfolio loans$1,406,344 $2,071,610 $2,031,985 $2,640,186 $1,813,257 $1,611,796 $2,233,441 $13,808,619 
Total gross charge-offs$155 $11,971 $3,475 $320 $13,844 $11,296 $4,157 $45,218 
As of and For The Year Ended December 31, 2024
Risk Grade RatingsTerm Loans Amortized Cost Basis by Origination YearRevolving
Loans		Total
(dollars in thousands)20242023202220212020Prior
C&I and other commercial
Pass$320,831 $147,909 $163,870 $125,053 $74,146 $117,234 $596,295 $1,545,338 
Watch38,734 49,394 44,709 16,393 2,175 20,964 109,055 281,424 
Special Mention1,718 2,293 5,658 2,634 106 2,540 21,203 36,152 
Substandard15,186 6,545 788 591 320 2,424 11,895 37,749 
Substandard non-accrual65 141 464 — 42 852 2,288 3,852 
Total C&I and other commercial376,534 206,282 215,489 144,671 76,789 144,014 740,736 1,904,515 
Gross charge-offs$— $14,980 $148 $22 $— $303 $— $15,453 
 
CRE
Pass291,503 354,591 755,266 645,994 356,867 314,340 25,457 2,744,018 
Watch115,078 132,900 60,611 62,408 28,320 38,733 895 438,945 
Special Mention39,252 643 8,020 1,395 4,165 1,517 49 55,041 
Substandard6,983 355 4,628 50 95 4,346 50 16,507 
Substandard non-accrual15,000 39 — — 14 — — 15,053 
Total CRE467,816 488,528 828,525 709,847 389,461 358,936 26,451 3,269,564 
Gross charge-offs— — — 2,999 — 315 — 3,314 
 
Real estate construction
Pass159,825 134,450 12,205 24,781 2,213 1,124 11,310 345,908 
Watch20,170 6,455 — 208 — — — 26,833 
Special Mention— — — 221 — — — 221 
Substandard5,224 — — — — — — 5,224 
Substandard non-accrual— — — 23 — — — 23 
Total real estate construction185,219 140,905 12,205 25,233 2,213 1,124 11,310 378,209 
Gross charge-offs— — — — — — — — 
 
Retail real estate
Pass101,582 237,306 366,820 354,380 147,236 267,431 205,885 1,680,640 
Watch1,255 550 2,733 3,377 872 124 497 9,408 
Special Mention151 — 344 — — 372 15 882 
Substandard— 243 1,018 503 — 776 3 2,543 
Substandard non-accrual— — 344 91 152 1,526 871 2,984 
Total retail real estate102,988 238,099 371,259 358,351 148,260 270,229 207,271 1,696,457 
Gross charge-offs— — — — — 168 — 168 
 
Retail other
Pass4,996 55,665 57,944 12,207 2,304 589 314,461 448,166 
Substandard non-accrual— 94 67 4 — 11 — 176 
Total retail other4,996 55,759 58,011 12,211 2,304 600 314,461 448,342 
Gross charge-offs9 31 106 78 4 403 — 631 
 
Total portfolio loans$1,137,553 $1,129,573 $1,485,489 $1,250,313 $619,027 $774,903 $1,300,229 $7,697,087 
Total gross charge-offs$9 $15,011 $254 $3,099 $4 $1,189 $— $19,566 
Past Due and Non-accrual Loans
An analysis of portfolio loans that were past due and still accruing, or on a non-accrual status, is presented in the table below:
As of June 30, 2025
Loans past due, still accruingNon-accrual
Loans		Non-accrual Loans with No Allowance for Credit Losses
(dollars in thousands)30-59 Days60-89 Days90+Days
Commercial loans
C&I and other commercial$4,972 $1,490 $796 $34,940 $3,311 
CRE524 5,744 — 10,563 4,300 
Real estate construction18,670 6,794 — 22 — 
Past due and non-accrual commercial loans24,166 14,028 796 45,525 7,611 
Retail loans
Retail real estate1,894 331 145 7,847 194 
Retail other1,378 391 — 242 — 
Past due and non-accrual retail loans3,272 722 145 8,089 194 
Total past due and non-accrual loans$27,438 $14,750 $941 $53,614 $7,805 
As of December 31, 2024
Loans past due, still accruingNon-accrual
Loans		Non-accrual Loans with No Allowance for Credit Losses
(dollars in thousands)30-59 Days60-89 Days90+Days
Commercial loans
C&I and other commercial$95 $— $— $3,852 $1,224 
CRE42 2,759 — 15,053 15,000 
Real estate construction41 — — 23 — 
Past due and non-accrual commercial loans178 2,759 — 18,928 16,224 
Retail loans
Retail real estate3,280 683 1,115 2,984 194 
Retail other1,094 130 34 176 — 
Past due and non-accrual retail loans4,374 813 1,149 3,160 194 
Total past due and non-accrual loans$4,552 $3,572 $1,149 $22,088 $16,418 
Gross interest income recorded on 90+ days past due loans, and that would have been recorded on non-accrual loans if they had been accruing interest in accordance with their original terms, was $1.0 million and $1.2 million for the three and six months ended June 30, 2025, respectively, and was $0.2 million and $0.5 million for the three and six months ended June 30, 2024, respectively. The amount of interest collected on those loans and recognized on a cash basis that was included in interest income was immaterial for the three and six months ended June 30, 2025 and 2024.
Loan Modifications for Borrowers Experiencing Financial Difficulty
The following tables present the amortized cost basis of loans that were modified—specifically in the form of (1) principal forgiveness, (2) an interest rate reduction, (3) an other-than-insignificant payment deferral, and/or (4) a term extension—for borrowers experiencing financial difficulty during the periods indicated, disaggregated by lending activity and the type of modification:

Three Months Ended June 30, 2025
(dollars in thousands)
Payment Deferral
% of Total Class of Financing Receivable1
Term Extension
% of Total Class of Financing Receivable2
Combination—Term Extension and Payment Deferral
% of Total Class of Financing Receivable3
Modified Loans
C&I and other commercial
$490 — %$21,913 0.5 %$4,412 0.1 %
CRE
— — %1,297 — %— — %
Total of loans modified during the period4
$490 — %$23,210 0.2 %$4,412 — %
___________________________________________
1.Modified loans represent an insignificant portion of C&I and other commercial loans, and an insignificant portion of total loans, in both cases rounding to zero percent.
2.Modified loans represent an insignificant portion of CRE loans, rounding to zero percent.
3.Modified loans represent an insignificant portion of total loans, rounding to zero percent.
4.All modifications were for loans classified as substandard.
Three Months Ended June 30, 2024
(dollars in thousands)
Term Extension1
% of Total Class of Financing Receivable2
Modified Loans
C&I and other commercial
$8,545 0.4 %
CRE
466 — %
Total of loans modified during the period3
$9,011 0.1 %
___________________________________________
1.Modifications to extend loan terms also included, in some cases, interest rate increases during the extension period.
2.Modified loans represent an insignificant portion of commercial real estate loans, rounding to zero percent.
3.All modifications were for loans classified as substandard.
Six Months Ended June 30, 2025
(dollars in thousands)
Payment Deferral
% of Total Class of Financing Receivable
Term Extension
% of Total Class of Financing Receivable1
Combination—Term Extension and Payment Deferral
% of Total Class of Financing Receivable2
Modified Loans
C&I and other commercial
$11,639 0.3 %$26,985 0.6 %$4,412 0.1 %
CRE
— — %1,848 — %— — %
Real estate construction
— — %5,187 0.5 %— — %
Total of loans modified during the period3
$11,639 0.1 %$34,020 0.2 %$4,412 — %
___________________________________________
1.Modified loans represent an insignificant portion of CRE loans, rounding to zero percent.
2.Modified loans represent an insignificant portion of total loans, rounding to zero percent.
3.With the exception of one loan that was transferred to non-accrual status during the six months ended June 30, 2025, all modifications were for loans classified as substandard.
Six Months Ended June 30, 2024
(dollars in thousands)
Term Extension1
% of Total Class of Financing Receivable
Modified Loans
C&I and other commercial
$24,067 1.2 %
CRE
1,814 0.1 %
Total of loans modified during the period2
$25,881 0.3 %
___________________________________________
1.Modifications to extend loan terms also included, in some cases, interest rate increases during the extension period.
2.All modifications were for loans classified as substandard.
The following table provides the weighted average term extension for loan modifications made during the periods indicated for borrowers experiencing financial difficulty:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Weighted Average Loan Term Extensions
C&I and other commercial
19.9 months
4.3 months
19.3 months
14.7 months
CRE
7.0 months
4.0 months
11.0 months
1.8 months
Real estate construction
—
—
15.0 months
—
Weighted average term extensions
19.3 months
4.3 months
18.3 months
13.8 months
Performance of Modified Loans
Busey closely monitors the performance of the loans that are modified for borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table depicts the payment performance of loans modified during the last twelve months:
As of June 30, 2025
(dollars in thousands)Current30-89 Days90+ DaysNon-accrual
Modified Loans
C&I and other commercial$43,420 $— $— $467 
CRE3,239 — — — 
Real estate construction5,187 — — — 
Amortized cost of modified loans$51,846 $— $— $467 
A default occurs when a loan is 90 days or more past due or transferred to non-accrual status. During the three and six months ended June 30, 2025, one C&I and other commercial loan with a balance of $0.5 million experienced a default by being transferred to non-accrual status after having been modified (a payment deferral was provided to the borrower who was experiencing financial difficulty) during the 12 months before the default. No loans had a default during the three or six months ended June 30, 2024, after having been modified during the 12 months before that default for borrowers experiencing financial difficulty.
Collateral Dependent Loans
Management's evaluation as to the ultimate collectability of loans includes estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. Collateral dependent loans are loans in which repayment is expected to be provided solely by the operation or sale of the underlying collateral and there are no other available and reliable sources of repayment. Loans are written down to the lower of cost or fair value of the underlying collateral, less estimated costs to sell. Busey had $50.0 million and $19.3 million of collateral dependent loans secured by real estate or business assets as of June 30, 2025, and December 31, 2024, respectively.
Foreclosures
Busey’s recorded investment in residential real estate loans that were in the process of foreclosure was $5.7 million as of June 30, 2025. Busey follows Federal Housing Finance Agency guidelines on single-family foreclosures and real estate owned evictions on portfolio loans.
Allowance for Credit Losses
The ACL is a valuation account that is deducted from the portfolio loans’ amortized cost bases to present the net amount expected to be collected on the portfolio loans. The ACL is established through the provision for credit losses charged to income. Portfolio loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed. Recoveries are recognized up to the aggregate amount of previously charged-off balances.
Management estimates the ACL balance using relevant available information from internal and external sources relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. The ACL consists of three components: (i) specific allocations/individual reserves; (ii) quantitative reserves; and (iii) qualitative reserves.
•Specific allocations/individual reserves – When a loan no longer exhibits risk characteristics that are similar to other loans, that loan is individually evaluated. Individual reserves are calculated for loans that are on a non-accrual status that are greater than a defined dollar threshold or loans that have disparate risk characteristics. Reserves may be based on collateral, for collateral-dependent loans, or on quantitative and qualitative factors, including expected cash flow, market sentiment, and guarantor support.
•Quantitative reserves – Busey implemented a new non-discounted cash flow model in the second quarter of 2025 that used combined historical loan data from Busey Bank beginning in 2004 and CrossFirst Bank since its inception in 2007. The model incorporates various baseline forecast scenarios and national unemployment rates with either national gross domestic product, the national home price index, or the national commercial real estate price index. Further, prepayment and curtailment expectations are factored into the model. Due to the continued economic uncertainty in the markets in which the Company operates, Busey will continue to utilize a forecast period of 12 months with an immediate reversion to historical loss rates beyond this forecast period in its ACL estimate.
•Qualitative reserves – Busey uses qualitative factors to adjust the historical loss factors for current and forecasted conditions. Busey considers the ten qualitative factors identified in the Interagency Guidance and ASC Topic 326 at each reporting date.
The following tables summarize activity in the ACL attributable to each lending activity. Allocation of a portion of the ACL to one lending activity does not preclude its availability to absorb losses from other lending activities:
Three Months Ended June 30, 2025
(dollars in thousands)C&I and Other CommercialCREReal Estate
Construction		Retail
Real Estate		Retail OtherTotal
ACL balance, March 31, 2025$89,304 $68,478 $8,689 $26,399 $2,340 $195,210 
Provision for loan losses(18,863)13,370 4,300 2,597 (399)1,005 
Charged-off(2,080)(10,916)— (119)(268)(13,383)
Recoveries217 3 83 165 34 502 
ACL balance, June 30, 2025$68,578 $70,935 $13,072 $29,042 $1,707 $183,334 
Three Months Ended June 30, 2024
(dollars in thousands)C&I and Other CommercialCREReal Estate
Construction		Retail
Real Estate		Retail OtherTotal
ACL balance, March 31, 2024$26,207 $33,505 $4,713 $24,281 $2,856 $91,562 
Day 1 PCD1
824 322 — 96 1 1,243 
Provision for loan losses3,118 1,140 (997)(651)(333)2,277 
Charged-off(10,013)(4)— (75)(184)(10,276)
Recoveries150 141 6 78 45 420 
ACL balance, June 30, 2024$20,286 $35,104 $3,722 $23,729 $2,385 $85,226 
Six Months Ended June 30, 2025
(dollars in thousands)C&I and Other CommercialCREReal Estate
Construction		Retail
Real Estate		Retail OtherTotal
ACL balance, December 31, 2024$21,589 $32,301 $3,345 $23,711 $2,458 $83,404 
Day 1 PCD1
75,569 21,588 2,112 1,430 84 100,783 
Day 2 Provision for loan losses2
22,648 15,104 2,911 1,628 142 42,433 
Provision for loan losses(18,240)12,977 4,611 2,094 (418)1,024 
Charged-off(33,301)(11,169)— (119)(629)(45,218)
Recoveries313 134 93 298 70 908 
ACL balance, June 30, 2025$68,578 $70,935 $13,072 $29,042 $1,707 $183,334 
___________________________________________
1.The Day 1 PCD is attributable to the CrossFirst acquisition (see “Note 2. Mergers and Acquisitions”), and represents the initial adjustment to the fair value of the PCD loans.
2.The Day 2 provision for loan losses is attributable to the CrossFirst acquisition (see “Note 2. Mergers and Acquisitions”), and represents the initial provision for non-PCD loans.
Six Months Ended June 30, 2024
(dollars in thousands)C&I and Other CommercialCREReal Estate
Construction		Retail
Real Estate		Retail OtherTotal
ACL balance, December 31, 2023$21,256 $35,465 $5,163 $26,298 $3,558 $91,740 
Day 1 PCD1
824 322 — 96 1 1,243 
Provision for loan losses13,243 (724)(1,488)(2,744)(972)7,315 
Charged-off(15,231)(100)— (127)(278)(15,736)
Recoveries194 141 47 206 76 664 
ACL balance, June 30, 2024$20,286 $35,104 $3,722 $23,729 $2,385 $85,226 
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1.The Day 1 PCD is attributable to the M&M acquisition (see “Note 2. Mergers and Acquisitions.”)
Net charge-offs during the six months ended June 30, 2025, included $31.1 million related to PCD loans acquired from CrossFirst Bank, which were fully reserved at acquisition and did not require recording additional provision expense.