INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of the Components of Income Taxes

The following table presents components of Busey’s income taxes included in the accompanying Consolidated Statements of Income:


	Years Ended December 31,
(dollars in thousands)	2025		2024		2023
Income taxes
Current expense:
Federal	$	33,596	$	26,696	$	20,139
State	9,708		11,533		14,120
Deferred expense:
Federal	(579)		1,561		(1,557)
State	8,653		(177)		(1,363)
Total income taxes	$	51,378	$	39,613	$	31,339

Schedule of the Reconciliation of Federal and State Income Taxes at Statutory rates to the Income Taxes Included in the Statements of Income

The following table provides a reconciliation of federal and state income taxes at statutory rates to the income taxes included in the accompanying Consolidated Statements of Income:


	Years Ended December 31,
(dollars in thousands)	2025				2024				2023
Income taxes at federal statutory rate	$	39,194	21.0	%	$	32,194	21.0	%	$	32,320	21.0	%
State and local income taxes (net of federal income tax effect)1	14,470		7.8	%	10,890		7.1	%	10,072		6.5	%
Tax credit investments:
Low income housing tax credits	(7,954)		(4.3)	%	(5,657)		(3.7)	%	(11,243)		(7.3)	%
New markets tax credits	(9,008)		(4.8)	%	(9,474)		(6.2)	%	(2,416)		(1.6)	%
Other credits	(1,589)		(0.9)	%	(883)		(0.6)	%	(1,306)		(0.8)	%
Nontaxable or nondeducitble items:
Tax-exempt interest, net	(2,148)		(1.2)	%	(1,141)		(0.7)	%	(1,493)		(1.0)	%
Compensation	3,079		1.7	%	407		0.3	%	(217)		(0.1)	%
Other nontaxable or nondeductible	546		0.2	%	(381)		(0.3)	%	(793)		(0.5)	%
Other items:
Investment in partnerships	14,692		7.9	%	13,244		8.6	%	5,714		3.7	%
Other	96		0.1	%	414		0.3	%	701		0.5	%
Income taxes and effective income tax rate	$	51,378	27.5	%	$	39,613	25.8	%	$	31,339	20.4	%

___________________________________________

1.State taxes in Illinois for 2025, 2024, and 2023 made up the majority (greater than 50%) of the tax effect in this category.

Schedule of the Deferred Tax Assets and Liabilities

Net deferred taxes, reported in other assets or other liabilities on Busey’s Consolidated Balance Sheets, include the deferred tax assets and liabilities presented in the following table:


	As of December 31,
(dollars in thousands)	2025		2024
Deferred taxes
Deferred tax assets:
ACL	$	70,282	$	23,685
Unrealized loss on cash flow hedge	2,744		7,256
Unrealized losses on securities available for sale, net	43,634		61,479
Unrealized losses on securities held to maturity	6,335		8,068
Stock-based compensation	8,089		6,431

Purchase accounting adjustments	3,695		2,076
Accrued vacation	713		493
Lease liabilities	8,016		2,951
Employee costs	12,359		5,725
Tax credits	2,873		—
State net operating loss carryovers	712		—

Other	1,931		—
Deferred tax assets before valuation allowances	161,383		118,164
Valuation allowances	(712)		—
Total deferred tax assets	160,671		118,164

Deferred tax liabilities:

Basis in premises and equipment	(6,716)		(2,419)
Affordable housing partnerships and other investments	(8,920)		(8,011)
Purchase accounting adjustments	(927)		(1,022)
Mortgage servicing assets	(872)		(745)
Basis in core deposit, customer intangible assets, and asset purchase goodwill	(20,427)		(3,325)
Deferred loan origination costs	(1,836)		(3,317)
Right of use assets	(7,427)		(2,835)
Unrealized gain on equity securities	(1,268)		(172)
Other	(900)		(856)
Total deferred tax liabilities	(49,293)		(22,702)

Net deferred tax asset	$	111,378	$	95,462

Schedule of Income Tax Payments

Income tax payments by jurisdiction, excluding payments for tax credit investments, are presented in the following table:


	Years Ended December 31,
(dollars in thousands)	2025		2024		2023
Income tax payments by jurisdiction
Federal	$	16,794	$	11,200	$	18,300
Illinois1	*		*		5,240
Other	4,115		1,707		1,868
Total income tax payments	$	20,909	$	12,907	$	25,408

___________________________________________

1.The amount of income taxes paid during the years ended December 31, 2025 and 2024, does not meet the five percent disaggregation threshold.