BORROWINGS

3 Months Ended

Mar. 31, 2025

Debt Disclosure [Abstract]

BORROWINGS

NOTE 7. BORROWINGS

Securities Sold Under Agreements to Repurchase

Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature daily. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The underlying securities are held by Busey’s safekeeping agent. Busey may be required to provide additional collateral based on fluctuations in the fair value of the underlying securities. Securities sold under agreements to repurchase were as follows:

	As of
(dollars in thousands)	March 31, 2025			December 31, 2024
Securities sold under agreements to repurchase	$	137,340		$	155,610
Weighted average rate for securities sold under agreements to repurchase	2.53		%	2.63		%

Revolving Line of Credit

On May 28, 2021, Busey entered into a Second Amended and Restated Credit Agreement, pursuant to which Busey has access to a $40.0 million revolving line of credit bearing an interest rate of 1.80% plus the one-month forward-looking term rate based on SOFR. After executing subsequent amendments, the current termination date for the revolving line of credit is April 30, 2026. As of March 31, 2025, there was no balance outstanding on the revolving line of credit. The revolving line of credit incurs an insignificant non-usage fee based on any undrawn amounts.

Short-term Borrowings

Busey’s short-term borrowings include loans maturing within one year of the loan origination date and, when applicable, the current portion of long-term debt that is due within 12 months. Short-term borrowings are summarized as follows:

	As of
(dollars in thousands)	March 31, 2025		December 31, 2024
Short-term borrowings
FHLB advances maturing in less than one year from date of origination, and the current portion of long-term FHLB advances due within 12 months	$	11,209	$	—
Total short-term debt	$	11,209	$	—

Funds borrowed from the FHLB, listed above, consisted of three notes with a weighted average interest rate of 1.33% and a weighted average maturity period of 13 days as of March 31, 2025.

Federal funds purchased are short-term borrowings that generally mature between one day and 90 days. Busey had no federal funds purchased as of March 31, 2025, or December 31, 2024.

Long-term Debt

Busey’s long-term debt consists of loans maturing more than one year from the loan origination date, excluding the current portion that is due within 12 months. Long-term debt is summarized as follows:

	As of
(dollars in thousands)	March 31, 2025		December 31, 2024
Long-term debt
Notes payable, FHLB, collateralized by FHLB deposits, residential and commercial real estate loans and FHLB stock	$	78,542	$	—
Total long-term debt	$	78,542	$	—

Funds borrowed from the FHLB, listed above, consisted of twelve notes with a weighted average interest rate of 2.22% and a weighted average maturity period of 2.80 years as of March 31, 2025. Maturity dates range from August 2027 through October 2028.

Subordinated Notes

On June 1, 2020, Busey issued $125.0 million of fixed-to-floating rate subordinated notes that mature on June 1, 2030. The subordinated notes, which qualify as Tier 2 capital for regulatory purposes, bear interest at an annual rate of 5.25% for the first five years after issuance and thereafter bear interest at a floating rate equal to a three-month benchmark rate plus a spread of 5.11%, as calculated on each applicable determination date. Interest on the subordinated notes is payable semi-annually on each June 1 and December 1 during the five-year fixed-term, and thereafter on March 1, June 1, September 1, and December 1 of each year, commencing on September 1, 2025. The subordinated notes have an optional redemption, in whole or in part, on any interest payment date on or after June 1, 2025. The subordinated notes are unsecured obligations of the Company. On April 30, 2025, Busey issued a conditional notice of full redemption, pursuant to which upon the satisfaction of certain conditions contained therein, Busey intends to redeem all $125.0 million of the subordinated notes on June 1, 2025 or such later interest payment date as determined by Busey in its discretion, but not later than September 1, 2025. The aggregate principal amount of the Subordinated Notes, plus accrued and unpaid interest thereon up to, but excluding, June 1, 2025, is $128.3 million.

On June 2, 2022, Busey issued $100.0 million aggregate principal amount of 5.000% fixed-to-floating rate subordinated notes maturing June 15, 2032, which qualify as Tier 2 capital for regulatory purposes. The price to the public for the subordinated notes was 100% of the principal amount of the subordinated notes. Interest on the subordinated notes accrues at a rate equal to (1) 5.000% per annum from the original issue date to, but excluding, June 15, 2027, payable semiannually in arrears, and (2) a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR (as defined in the subordinated notes), plus a spread of 252 bps from and including June 15, 2027, payable quarterly in arrears. The subordinated notes have an optional redemption, in whole or in part, on any interest payment date on or after June 15, 2027.

Associated with the M&M acquisition completed on April 1, 2024 (see “Note 2. Mergers and Acquisitions”), Busey acquired $4.0 million of 5.25% fixed-to-floating rate subordinated notes maturing December 4, 2030, which qualify as Tier 2 capital for regulatory purposes. Interest on the subordinated notes accrues at a rate equal to (1) 5.25% per annum from the original issue date to December 4, 2025, and (2) a floating rate per annum equal to a benchmark rate, which is expected to be the Three-Month Term SOFR (as defined in the subordinated notes), plus a spread of 497 bps from December 4, 2025. The subordinated notes have an optional redemption, in whole or in part, on or after December 4, 2025. At March 31, 2025, there was an immaterial amount of fair value discount outstanding, to be accreted through the earliest optional redemption date.

Unamortized debt issuance costs related to Busey’s subordinated notes are presented in the following table:

	As of
(dollars in thousands)	March 31, 2025		December 31, 2024
Unamortized debt issuance costs
Subordinated notes issued in 2020	$	90	$	222
Subordinated notes issued in 2022	907		1,004
Total unamortized debt issuance costs	$	997	$	1,226