REGULATORY CAPITAL

3 Months Ended

Mar. 31, 2025

Banking and Thrift, Other Disclosure [Abstract]

REGULATORY CAPITAL

NOTE 8. REGULATORY CAPITAL

First Busey and its subsidiary banks are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on First Busey's consolidated financial statements. Capital amounts and classification also are subject to qualitative judgments by regulators about components, risk weightings, and other factors.

Banking regulations identify five capital categories for insured depository institutions: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized. As of March 31, 2025 and 2024, all capital ratios of First Busey and its subsidiary banks exceeded well capitalized levels under the applicable regulatory capital adequacy guidelines. Management believes that no events or changes have occurred subsequent to March 31, 2025, that would change this designation.

Current Expected Credit Loss Model

On August 26, 2020, the FDIC and other federal banking agencies adopted a final rule which provided banking organizations that adopted CECL during 2020 with the option to delay for two years the estimated impact of CECL on regulatory capital and to phase in the aggregate impact of the deferral on regulatory capital over a subsequent three-year period. Under this final rule, because Busey elected to use the deferral option, the regulatory capital impact of Busey’s transition adjustments recorded on January 1, 2020, arising from the adoption of CECL, was deferred for two years. In addition, 25 percent of the ongoing impact of CECL on Busey’s ACL, retained earnings, and average total consolidated assets from January 1, 2020, through the end of the two-year deferral period, each as reported for regulatory capital purposes, was added to the deferred transition amounts (“adjusted transition amounts”) and deferred for the two-year period. During the three-year period between January 1, 2022, and December 31, 2024, all of the adjusted transition amounts were phased-in for regulatory capital purposes.

Capital Amounts and Ratios

The following tables summarize regulatory capital requirements applicable to First Busey and its subsidiary banks:

	As of March 31, 2025
	Actual				Minimum Capital Requirement				Minimum To Be Well Capitalized
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common equity Tier 1 capital to risk weighted assets
First Busey	$	1,871,865	12.00	%	$	702,221	4.50	%	$	1,014,319	6.50	%
Busey Bank	$	1,420,244	16.21	%	$	394,316	4.50	%	$	569,568	6.50	%
CrossFirst Bank	$	652,977	9.60	%	$	306,018	4.50	%	$	442,027	6.50	%
Tier 1 capital to risk weighted assets
First Busey	$	1,879,615	12.05	%	$	936,295	6.00	%	$	1,248,393	8.00	%
Busey Bank	$	1,420,244	16.21	%	$	525,755	6.00	%	$	701,007	8.00	%
CrossFirst Bank	$	652,977	9.60	%	$	408,025	6.00	%	$	544,033	8.00	%
Total capital to risk weighted assets
First Busey	$	2,321,708	14.88	%	$	1,248,393	8.00	%	$	1,560,491	10.00	%
Busey Bank	$	1,508,341	17.21	%	$	701,007	8.00	%	$	876,259	10.00	%
CrossFirst Bank	$	698,395	10.27	%	$	544,033	8.00	%	$	680,041	10.00	%
Leverage ratio of Tier 1 capital to average assets
First Busey	$	1,879,615	12.95	%	$	580,626	4.00	%	N/A		N/A
Busey Bank	$	1,420,244	12.08	%	$	470,374	4.00	%	$	587,967	5.00	%
CrossFirst Bank	$	652,977	8.78	%	$	297,548	4.00	%	$	371,936	5.00	%

	As of December 31, 2024
	Actual				Minimum Capital Requirement				Minimum To Be Well Capitalized
(dollars in thousands)	Amount		Ratio		Amount		Ratio		Amount		Ratio
Common equity Tier 1 capital to risk weighted assets
First Busey	$	1,237,301	14.10	%	$	394,840	4.50	%	$	570,325	6.50	%
Busey Bank	$	1,438,296	16.46	%	$	393,277	4.50	%	$	568,067	6.50	%
Tier 1 capital to risk weighted assets
First Busey	$	1,314,301	14.98	%	$	526,453	6.00	%	$	701,938	8.00	%
Busey Bank	$	1,438,296	16.46	%	$	524,369	6.00	%	$	699,159	8.00	%
Total capital to risk weighted assets
First Busey	$	1,625,943	18.53	%	$	701,938	8.00	%	$	877,422	10.00	%
Busey Bank	$	1,520,938	17.40	%	$	699,159	8.00	%	$	873,949	10.00	%
Leverage ratio of Tier 1 capital to average assets
First Busey	$	1,314,301	11.06	%	$	475,348	4.00	%	N/A		N/A
Busey Bank	$	1,438,296	12.14	%	$	473,878	4.00	%	$	592,347	5.00	%

Capital Conservation Buffer

In July 2013, U.S. federal banking authorities approved the Basel III Rule for strengthening international capital standards. The Basel III Rule introduced a capital conservation buffer, composed entirely of common equity Tier 1 capital, which is added to the minimum risk-weighted asset ratios. The capital conservation buffer is not a minimum capital requirement; however, banking institutions with a ratio of common equity Tier 1 capital to risk-weighted assets below the capital conservation buffer will face constraints on dividends, equity repurchases, and discretionary bonus payments based on the amount of the shortfall. In order to refrain from restrictions on dividends, equity repurchases, and discretionary bonus payments, banking institutions must maintain minimum ratios of (1) common equity Tier 1 capital to risk-weighted assets of at least 7.0%, which First Busey exceeded by 500 bps as of March 31, 2025, (2) Tier 1 capital to risk-weighted assets of at least 8.5%, which First Busey exceeded by 355 bps as of March 31, 2025, and (3) total capital to risk-weighted assets of at least 10.5%, which First Busey exceeded by 438 bps as of March 31, 2025.